Employment - number of people who show a professional activity. Expressed in commitment and capability of manpower in the labor process (for proper monetary compensation), in produced goods or services which meet consumers demand.
Nominal and real employment
- nominal employment - number of workers regardless of the time of work,
- real employment number of employed persons derived from actual employee working hours.
Every company strives to achieve the so-called sustainable, rational, employment. Rational employment manifests itself when all employees are essential for company (there is no excessive employment). In addition, the rational allocation of both employees and the division of labor are in line with the needs of the enterprise. Tasks are assigned to individual employees according to their competencies.
While building the structure of employment, it must be remembered that the requirements placed on the workers on workplace, should be adjusted to their capabilities (knowledge, experience, psychological predispositions). This is the basis for carry out on-the-job training, teaching courses or instructional workshops.
Number of employees
Decisions about the number of employed workers depends on the business needs and forecast supply and demand for personnel.
Optimization of employment and the quality of human resources
In economy there is strong emphasis on optimization of employment in enterprises. At the same time, it is important to keep labour costs at a competitive level. However, managers should not forget that too large and rapid savings on staff costs, undeniably lead to a reduction in the quality of human resources in company. This is contrary to modern management concepts that relate human resource development as important investment in future growth of the company.
- Hill, C. (2000). Human resources management.