Human resource management (HRM)

is the process of making the most efficient use of an organisation’s employees.

Delayering

is a reduction in the number of levels of hierarchy within an organisational structure.

Teamworking

is the process of breaking down production into large units and using groups of employees to complete these tasks.

A workforce (or human resource) plan

assesses the current workforce and actions necessary to meet the business’ future labour needs.

Labour turnover

is the percentage of a business’ workforce that leaves a business over a given period of time (usually one year).

Recruitment and selection

is the process of filling an organisation’s job vacancies by appointing new staff.

Job descriptions

list the duties and responsibilities associated with a particular job.

Person (or job) specifications

outline the skills, knowledge and experience necessary to fill a given position successfully.

An employment contract

is a legal agreement between an employer and an employee setting forth the terms and conditions of the employment arrangement.

A business culture

is the attitudes, values and beliefs that normally exist within an organisation.

A dismissal

occurs when an employer terminates the employee’s contract.

Redundancies

take place when an employee is dismissed because a job no longer exists.

Employee welfare

is a broad term covering a wide range of facilities that are essential for the well-being of a business’ employees.

Employee morale

is the satisfaction felt by employees within the workplace.

Work–life balance

refers to the obligations placed on employees by employers that determine the amount of time that employees spend on work-related activities.

Diversity, in an employment context

refers to recognising the differences between individual employees and also the differences that may exist between groups of employees.

Equality

is the circumstance in which all people are equal, particularly in relation to rights and opportunities in the workplace.

Training

is a process whereby an individual acquires jobrelated skills and knowledge.

Development

refers to activities designed to increase employees’ skills, education, knowledge and abilities in the workplace.

Delegation

means passing authority down the organisational hierarchy. This is only genuine if the manager relinquishes some control to the subordinate.

Intrapreneurship

occurs when individuals within organisations are being entrepreneurial – taking risks and generating new ideas.

Multi-skilling

exists when employees have the skills to carry out several roles within an organisation.

A trade union

is an organisation of workers established to protect and improve the economic position and working conditions of its members.

Collective bargaining

is negotiation between employers and representatives of employees, normally trade union officials.

Motivation

describes the factors that arouse, maintain and channel behaviour towards a goal.

Absenteeism

describes a situation in which an employee is absent from work without a good reason.

Human needs

can be defined as the elements required for survival and good mental and physical health.

Schools of thought

are individuals and groups who hold similar views on a particular matter – in this case on what motivates employees.

Piece-rate

is a system whereby employees are paid according to the quantity of a product they produce.

Division of labour

is the breaking down of production into a series of small tasks, carried out repetitively by relatively unskilled employees.

The hierarchy of needs

is a theory that employees have successive requirements that can be fulfilled through work.

Hygiene factors (also called maintenance factors)

are a group of influences that may result in employee dissatisfaction at work.

Motivators

are a series of factors, such as promotion, that may have positive influences on employee performance at work.

Performance-related pay (PRP)

exists where some part of an employee’s pay is linked to the achievement of targets at work. These targets might include sales figures or achieving certain grades in an annual appraisal.

Variable pay

is a reward for working that is based on employee performance or results judged against some targets.

Fringe benefits (or perks)

are those extras an employee receives as part of their reward package.

Job redesign

means changing the group of tasks or duties which make up a specific job.

Job enrichment

occurs when employees’ jobs are redesigned to provide them with more challenging and complex tasks. Also called vertical loading.

Job enlargement

is giving employees more duties of a similar level of complexity. Also called horizontal loading.

Job rotation

is the regular switching of employees between tasks of a similar degree of complexity.

Empowerment

is a series of actions designed to give employees greater control over their working lives.

Job design

is the process of grouping together individual tasks to form complete jobs.

Employee participation

is the involvement of employees in the process of decision-making within a business.

Leadership

includes the functions of ruling, guiding and inspiring other people within an organisation in pursuit of agreed objectives.

Management

is planning, organising, directing and controlling all or part of a business enterprise.

Autocratic management

exists when managers keep control of information and make major decisions alone. Sometimes known as authoritarian management.

Paternalistic management

is a style in which managers take decisions in what they believe are the best interests of their subordinates.

Democratic management

occurs when information is shared and team members participate in decision-making. Sometimes known as participative management.

Laissez-faire management

takes place when managers allow subordinates freedom to make their own decisions.