Students should consider the following throughout this section of the specification:
how developments in technology are affecting decision making and activities in relation to human resources (eg changing the nature of work, the skills that are required and ways of working such as remote working)
ethical and environmental influences on human resources decisions
market conditions (including the labour market) and competition
how human resource decisions help improve the competitiveness of a business
the interrelationship between human resource decisions and other functions.
3.6.1 Setting human resource objectives
Content
Additional information
The value of setting human resource objectives
Human resource objectives include:
employee engagement
talent development
training
diversity
alignment of employee and employer values
number, skills and location of employees.
Methods of achieving human resource objectives
Methods should include soft and hard human resource management (HRM) approaches.
3.6.2 Analysing human resource performance
Content
Additional information
Calculating and interpreting human resource data
Students should be able to calculate and interpret:
labour turnover
labour productivity
employee costs as percentage of turnover
labour cost per unit.
The use of data for human resource decision making and planning
3.6.3 Making human resource decisions: improving organisational design and managing the human resource flow
Content
Additional information
Models of organisational structure
Organisational structures to include:
functional
product-based
regional
matrix structure.
Influences on organisational design
Decisions relating to organisational design include:
authority
span
hierarchy
delegation
centralisation and decentralisation.
The value of changing organisational design
How managing the human resource flow helps meet human resource objectives
Human resource flow to include:
human resource plan
recruitment
training
redeployment
redundancy.
3.6.4 Making human resource decisions: improving motivation and engagement
Content
Additional information
The benefits of motivated and engaged employees
Theories of motivation should include Taylor, Maslow and Herzberg.
How to improve employee engagement and motivation
Financial methods of motivation should include:
piece rate
commission
salary schemes
performance-related pay.
Non-financial methods of motivation should include:
empowerment
team working
flexible working
job enrichment
job rotation.
Influences on the choice and assessment of the effectiveness of financial and non-financial methods of motivating employees
3.6.5 Making human resource decisions: improving employer-employee relations
Content
Additional information
Influences on the extent and methods of employee involvement in decision making
Employee representation methods to include trade unions and works councils.
How to manage and improve employer-employee communications and relations