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Summary Chapter 9

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Chapter 9 of introduction to business, required course for first year IBA

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Recruitment and retaining
the best employees

9.1: Human resources management
 Consists of all the actiites iniolied in acquiring, maintaining and deieloping an
organisatonns human resourcest
 HRM begins with acquisiton – getng people to work for the organisatont
 This process can be compettie for certain types of qualifed employeest
 Steps must be taken to keep these ialuable resourcest

9.1.1: HRM activities
 3 phases: acquiring, maintaining, deieloping human resourcest
 HRM includes 5 separate actiites:
o Human resources planning: determining the needs
o Job analysis: determining the exact nature of positons
o Recruitng: atractng people to apply for positons
o Selecton: choosing and hiring the most qualifed applicants
o Orientaton: acquaintng new employees with the frm
 HRM programmes:
o Employee relatons: increasing employee job satsfacton
o Compensaton: rewarding employee effort through monetary payments
o Benefts: proiiding rewards to ensure employee wellbbeing
 Two important actiites of the deielopment phase:
o Training and deielopment: new jobs, skills and effectie ways of present jobs
o Performance appraisal: assessing employeesn current and potental performance

9.1.2: Responsibility for HRM
 HRM is a shared responsibility of line managers and staff HRM specialistst Large frms
haie a HRM managert
 Large organisatons, actiites are specialisedt Separate groups dealing with
compensaton, benefts, training, etct
 Compensaton systems are deieloped by the HRM staff, howeier, line managers
recommend pay increases and promotonst


9.2: Human resources planning
 HRP is the deielopment of strategies to meet a frmns future human resources needst
The startng point is the organisatonns oierall strategic plan, then planners can forecast
future demand for human resourcest

9.2.1: Forecasting human resource demand
 Planners should base forecasts on releiant informatont

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