1. Human Resource Management (HRM) HRM is the process of making the most effective use of the employees within an organisation, which in turn helps the firm reach its corporate objectives.

2. HRM HRM includes: Human Resource Planning Recruitment and selection Training and development Performance appraisal Remuneration Disciplinary procedures Grievance procedures Health and safety Employee welfare Termination of contracts of employment Legislation

3. Workforce planning Workforce planning is the process of forecasting the workforce requirements of the business for future years. It is one of the central activities of HRM

4. Workforce planning Planning the number of workers needed: 1.Examining the overall objectives of the firm 2.Using past data to analyse expected levels of customer demand and sales 3.Estimating level of labour turnover 4.Management views 5.Expected changes in working practices

5. Workforce planning : Effectiveness of the workforce Four main measures of assessing the performance of the workforce: 1.Labour turnover (%) 2.Absenteeism (%) 3.Labour productivity 4.Health and safety (%)

6. Workforce planning External factors that may affect availability of external labour: 1.Rate of unemployment in the area 2.Extent of the infrastructure in the area 3.Government incentives and subsidies 4.Availability of workers with the necessary skills and qualifications 5.Number of competitors in the area 6.Level of benefits / minimum wage

7. Workforce planning Possible problems associated with workforce planning: Will the new employee mix with the existing workforce? Changes in the external environment

8. Methods of remuneration Make sure you familiarise yourself with the following methods (covered in U2 of the AS course): Piecework Time rates (salary and wages) Performance-related pay Profit share Share ownership Fringe benefits Financial incentives can be used to meet HRM objectives. For example, they can improve productivity and reduce absenteeism.