1. Flashcards
What is human resource management
Is the process of aquirin, training, appraising and compensating employees as well as dealing with matters concerning employees relations and employees well-being
Human resources functions performed by managers
- Human resources planning
- Staffing
- Performance management
- Compensation and benefit management
- Training and development
- Maintaining a harmonious employee relationship
What is human resource planning
- deciding what positions the company has to fill and how it will be filled
- forecast quantity and quality employees a company needs in order to acheive goals
Importance of human resource planning
- help determine and predict futre manpower needs
- help adjust human resources requirements according to environment changes
- provide necessary basis for designing and implementing other HRM functions
- help company with government employment regulations
Steps of HR planning
- Identify company objectives and strategic plans
- Asses company’s current manpower situation
- Forecast future manpower needs or demand
- Forecast supply of needed manpower
- Develop action plan
How to forecast internal candidates
- Skills inventory
- consolidate all employee’s information relavent for promotion and transfer decisions
- consider promoting internal employee and transfer employee internally - Staff turnover rate
- % of staff that left the company with specified period
- if the company has a high turnover rate, internal supply will decrease
Factors affecting supply of external candidates
- government policies and regulations
- unemployment rate
- total no. of workers and the types of workers available in the market
- ageing workforce
- skill shortage
- area with large competitors
- located in remote areas
What is job analysis
Determine duties and skill requirements of a job and characteristic of a person that should be hired for
What is job description
Written document that lists a job’s duties, responsibilities, reporting relationships and working conditions
What is job specification
Writting statemeenet that lists the knowledge, abilities and skills required to perform the job satisfactorily
What is staffing
aquisitons of sufficient number of qualified employees to fill the openings
Stages of staffing
- Recruitment
- Selection
- Employement
+ and - of internal manpower recruitment
+ moral of existing employees enhanced
+ quick and less costly
+ easy for candidate to adapt to the environment
+ motivate existing employees
- adversely affect the morale
- create unhealthy competition
- cant bring in new insights, skills and ideas
+ and - of external recruitment
+ more insights and skills
+ save cost for training
- affect morale of existing employee
- may increase turnover rate if existing emp see no chance in promotion
- difficulty adapting
Internal job posting methods and it’s + & -
- Intranet
+ inexpensive
+ all employees can access
- can overlook - Email
+ inexpensive
+ convenient
- some may not have
External job posting methods
- Mass media and internet
- Government employment agencies
- Commercial employment agencies
- Employee referral
- Professional institutions/ trade unions
- Job fairs
- Non-profit employment
+ & - of mass media for job posting
+ wide coverage
+ convenient
- large no. of unsuitable applicants
- timely to shortlist
+ & - of government employment agency for job posting
+ wide coverage
+ usually free
- not common for hiring managerial positions
+ & - of non-profit employment agency for job posting
+ can target candidates
- expensive
- time consuming
+ & - of commercial employment agency for job posting
+ experienced in hiring white collar and managerial
- emplyers need to pay
- quality may depend
+ & - of employee referal for job posting
+ easier to adapt
+ may be most suitable
+ lower cost
- violate principle of equal employment opportunity
+ & - of professional institutions for job posting
+ can attract suitable candiadates
- recruitment information available for members only
+ & - of job fair for job posting
+ save cost and time placing advertisements
+ speed up recruitment process
+ quick way to attract many candidates
- not suitable for senior or managerial positions
Methods of selection and employment
- screening written applications
- Doing tests
—> mental abilities, physical and personality - work sampling technique
- reference check
- medical examination
- interviews
—> structured/ unstructured
+ and - of doing interviews
+ can have face-to-face observation
- managers and employer recruit people similar to them,
- jump into conclusions based on first impression
- over focus on particular strengths and weaknessness
What is performance management
- help managers better realize if employees are performing up to a desired standard and develop quality employee
Whate are the activities that managers perform in order to measure, evaluate and reward employee performance
- Designing specific goals
- Developing employee’s capability
- Evaluating performance ( performance appraisal )
- Rewarding employee’s performance
What is performance appraisal
- Evaluating employee’s performance by pre-set performance standards
- And identify and discuss job-related strengths and weaknesses with employee
Objectives of performance management
- Utilize human resources effectively
- Allow employees to understand company objectives
- Developing employee’s capabilities
Performance management process
- Identify & formulate clear and measurable performance standards and goals
- Measure performance appraisal and monitor goal achievements
- Provide feedback and coaching on performance appraisal results
- Making HRM decisions based on performance appraisal
What can managers do when making HRM decisions based on performance appraisal
- can identify if performance exceeded, met or fell below standards
- can recognize their strengths and weaknesses and figure out the training and development needs
- recognize goals formed and achieved
What is compensation and benefit management
Management of rewards system which can attract, retain and motivate employees
What are the types of monatary rewards
- Time-based pay
- Perforamance based pay
+ and - of time based pay
+ mojor source of income, provide stable financial support
+ important for attracting and retaining employees
- lack motivational power
- once determined, will remain unchanged
What are some of the performance based pay rewards
- Piece rate
- Commision
- Bonus
- Merit pay
- Profit sharing
- Stock option
What is piece rate and it’s + and -
- Pay given for every unit of product produced or task completed
+ easy to understand
+ directly links to performance so it is a fair way of rewarding - focus on output but not the quality
- refuse to switch job
- resist to new technology
What is commison and it’s + and -
- % of sales revenues earned or fixed rate for every product sold
+ easy to understand and apply
+ greatest incentives to work hard because effort and reward is directly linked
- promp employees in selling products with higher commission
- highly unstable income
What is bonus and it’s + and -
- Yearly payment to employee who performed well
+not guaranteed, gives company flexibility
+ motivator
- Bonus system may not be transparent enough, so some may think the result is unfair
What is merit pay and it’s + and -
- Salary increase
+ strong motivator
- this depends on the performance appraisal result, so if emp think P.A result is unfair, they will think merit pay is also unfair
- if appraisals have a similar rating, there is no purpose because it means all emp will have similar pay
What is profit sharing and it’s + and -
- An incentive pay, based on percentage of company’s profit
+ links to the interest in the company
+ if company performance is bad, the company can pay less or nothing to emp
- they will think the individual’s performance has a little impact
- motivational power is weak
- time lag between good performance and reward given
What is stock option and it’s + and -
- right to buy some of the companny’s shares at specified price and time
+ used as a long term incentive
+ develop loyalty and commitment to the company
- if share price decrease, their motivation will also decrease
- managers will stock option may want to boost the company share unethically
Ad and disad of time based pay when compared to performance based pay
+ not related to the performance, so there isn’t comp and it can develop harmonious working environment
+ avoid difficulties and administrative cost in evaluating emp performances
- low motivator
- less attractive for high callibre workers
Ad and disad of performance based pay
+ Higher motivational
+ can attract high callibre workers
- can create keen competition
- emp may only focus on areas that affects their pay
What are some of the non-monetary rewards
- Pay time off
- holiday and paid leave, maternity leave, faternity leave, severance pay, sick leave - Protection programme
- insurance benefit
- retirement benefit - Servies
- given to suit employee’s personal needs
e.g discounts
Benefits of monetary reward
- can attract talents
- can motivate
- can help maintain employee standard of living
- give flexibility to buy whatever they want and avoid benefits that employees may not enjoy as monetary is cash reward.
Benefits of non-monetary rewards
- not taxed
- employers can provide benefits to employees that will be less costly than when buying themselves
- good benefit package gives an advantage when competing for capable workers
Purpose of non-monetary reward
- attract emp who seeks recognition
- enhance emp well being
- enhance emp sense of belonging
- enhance corperate image
- fulfill legal requirements
What is training and development
Training is the process which aims employees improvements and of their ability to perform jobs
Development is the focus of preparing emp to meet changes in responsibilities and requirements in present jobs and to assume positions of greater responsibility in the future
What are the objectives of training and development
- improve employees and ultimately the company’s productivity
- improve company’s product and service quality
- faciliatinng employees personal growth
- satisfying employee’s current and future needs
- improving emmployee’s morale
- promoting harmonious working relationships
Two types of training modes and it’s types
- On the job training
- job rotation
- apprenticeship training
- coaching - Off the job training
- stimulated training
- programmed training
- classroom training
What is apprenticeship training and it’s + and -
- structured process where emp is trained by combination of classroom and practical training
+ can learn theories and hand on practices
+ can earn income during apprenticeship
- administrative cost is high for both classroom and practical
What is coaching and it’s + and -
- coach helps emp develop skills and give instructions and demonstrations
+ can learn skills quickly
+ can receive feedback and support
- trainers need to spend time providing feedback to trainees
What is job rotation and it’s + and -
- emp move from one job to another at planned intervals
+ understand diff company functions and develop work related skills
+ trainees can build network
+ give managers greater flexibility assinging jobs
- only have short insight and perspective on problems and solutions
- may not develop in-depth skills because of the limited time to work in each area
- more workload when trainee leaves which may affect the productivity
What is classroom training and it’s + and -
- trainees attend classroom lectures
+ economical ways to teach factual info, concepts and theories
+ quick, easy and simple way to teach knowledge to a large groups of trainees
- cannot be applied in actual work because it’s diff
- difficult to ask questions because there are a large amount of trainees
What is programmed learning and it’s + and -
- a step by step learning method guided by IT
+ convenient, can attend anywhere
+ useful when learning requires little interpersonal interaction and when dispersed geographically
- similar to textbook
- expensive to develop into computer programme
What is stimulated training & two types of it as well as it’s + and -
- stimulation of environment similar to the actual one
- Equipment simulation
- Computer simulation
+ economical way to train decision making of managers
+ less expensive when it is too costly to train on the job
- costly to develop and maintain equipment
- effectiveness depends on the deswign of stimulated environment
Ad and disad of on the job training
+ get immediate feedback
+ can directly apply skills and knowledge learnt
+ inexpensive
- less systematic than off the job training
- effectiveness depends on the commitment of trainers
- effectiveness depends on the skills and knowledge of trainers
ad and disad of off the job training
+ less stressful trainig environment
+ less distubtion to the actual workplace
+ opportunity to learn latest knowledge and technologies
- cost is higher when experts are hired
- different from actual work environment
- trainee vary in learning ability and prior work related knowledge
What is motivation
Process by which individuals are activated into putting effort into achieving goals
Importance of motivation of employees for businesses
- more motivation means more effort
- company may benefit if the motivation is towards achieving company’s goals
- allows managers to understand what employee needs in order to be motivated
What are the levels of Maslow’s Hierachy of Needs Theory
- Phychological factor
- food, water, air … to sustain life - Safety and security needs
- emp benefits e.g insurance and retirement - Social needs
- a sense of belonging e.g social gathering, friends - Ego needs
- achievements, reputation and status e.g show appreciation or recognize contribution - Self actualization needs
- challenging yet achievable tasks or trainings for further development
What are the Herzberg’s Two Factor Theory
- Satisfied
*motivators ( intrinsic )
- achievement
- recognition
- work itself
- responsibility
- Preventing from dissatisfaction
*hygiene factors ( extrinsic )
- supervision
- salary
- relationships with peer
- security
- work environment
What is McGregor’s Two Factor Theory
- Theory X
- dont like working
- managers need to use cohersive needs/ punish to make them work hard
- avoid responsibilities, seek guidance
- little ambition
* only motivated by monetary rewards and lower order needs - Theory Y
- like working
- like to take on responsibilities
- perceive work as part of life
- self motivated
- like to make decisions
* only motivated by higher order needs, dont just work for money
What is internal communications and it’s immportance
- exchange between parties within a company
importance:
- enhance employee relations, help promote understanding between managers and employees
- can provide work relation guidance and directions to improve and motivate
What are the different direction of communication
- Vertical communication
- downward
- upward
- Lateral communications
2 types of channel of communication
- Formal communication - email
- Informal communication - chat
What are the modes of channels
- Electronic media
- computer, phone, blog, video - Print media
- magazine, newspaper - Face to face communication
- conference, meetings - Workspace
- notice board, screen, poster
Types of internal communication programme that can be designed and how those programmes help with emp
- Orientation programme
- help adapt, develop network, allow them to understand the company policy and procedure - Mentorship programme
- gain knowledge of unspoken culture or rules, share frustration and satisfaction in a friendly way - Social gathering
- sense of belonging, fulfill social needs - Staff meeting
- develop sense of trust in leadership, encourage to take part in decision making - Employee attitude survey
- understand employees attitude, motivation etc, can express feelings and take actions before worsened
