2.1 Human Resource Management (HRM)

Cambridge International AS Level Business — 9609


2026 Syllabus Objectives

By the end of this subtopic, you should be able to explain and apply:

  1. The role of HRM in meeting organisational objectives
  2. The reasons for and role of a workforce plan
  3. Measurement of labour turnover
  4. The implications of high and low labour turnover for a business
  5. Recruitment of employees: the process, job descriptions, person specifications, and recruitment methods
  6. Internal and external recruitment
  7. Selection methods: CVs, résumés, application forms, interviews, references, testing, assessment centres
  8. Employment contracts
  9. The difference between redundancy (voluntary and involuntary) and dismissal (fair and unfair)
  10. The relationship between HRM, employee morale and welfare, including work-life balance
  11. The impact of diversity and equality in the workplace on a business
  12. Different types of training: induction, on-the-job, off-the-job
  13. The impact of training and development on a business
  14. Employee development to encourage intrapreneurship
  15. Employee development to encourage multi-skilling and flexibility
  16. How cooperation between management and the workforce can benefit both
  17. The impact of trade union involvement on employers and employees, including collective bargaining

1. The Role of HRM in Meeting Organisational Objectives

Human Resource Management (HRM) is the department in a business that is responsible for managing its people — the employees. Think of it as the "people department." Its job is to make sure the business has the right workers, in the right roles, doing the right things, so the business can achieve its goals.

HRM does not just hire and fire people. It covers the entire journey of an employee — from the moment they apply for a job, to their training, their daily working conditions, and eventually their departure from the company.

Here is how each HRM activity helps a business meet its goals:

  • Recruitment and selection — HRM finds and chooses the best people for each job. Without the right staff, a business cannot operate efficiently or serve its customers well.
  • Training programmes — HRM organises learning activities so workers improve their skills and become more productive.
  • Motivation techniques — HRM introduces rewards such as bonuses (financial) or promotion opportunities (non-financial) to keep workers happy and hard-working.
  • Performance management — HRM monitors how well employees are doing through appraisals (regular reviews) and gives them feedback so they can improve.
  • Health and safety — HRM makes sure the workplace is safe and follows the law. This reduces accidents and the number of days workers are absent due to injury or illness.
  • Employee relations — HRM works with staff and trade unions (worker representative groups) to solve problems and maintain a positive atmosphere at work.
  • Legal compliance — HRM ensures the business follows employment law — for example, laws on fair pay, equal treatment, and proper dismissal procedures. This reduces the risk of expensive legal disputes.
  • Supporting change — When a business changes (for example, introducing new technology or merging with another company), HRM helps retrain staff and communicate changes clearly so employees accept and adapt to them rather than resist.

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