1.4 - Managing People Flashcards
What is the hard HRM approach to staffing?
Staff as a cost - staff are treated as a resource that must be managed in order for the business to control its costs and output
What is the soft HRM approach to staffing?
Staff as an asset - staff are treated as an asset to the business that can contribute and help the business achieve its objectives.
Why is it important to have a flexible workforce?
A flexible workforce is necessary for a business to run smoothly and match supply to demand:
- enabling all aspects of the business to function
- meet new challenges to the business
- meet seasonal fluctuations
- respond to changes in the workforce e.g. people leaving, maternity/ paternity leave
What is multi-skilling?
- Having a workforce that can be moved around from one job to another, increasing motivation
- This can increase efficiency, quality and productivity while reducing costs
- However, it does require more staff training
Part-time workers
- a part-time worker is a worker that works less than 35 hours a week
- they have no specific set amount of hours
- hours can be increased if demand increases
- offer more flexibility, can work when needed
- firms can retain valued workers who no longer wish to work full-time by offering part-time work.
Temporary workers
- can be full-time or part-time and help meet short-term needs of a business.
- can be employed on a contract basis which has a time limit = do not have the security as a permanent worker
- can be employed on a seasonal basis
What are the advantages and disadvantages of temporary workers?
- offers a flexible workforce
- help to match supply to demand
BUT - recruitment and training costs may be high and not seen as value for money
- may lack commitment
What is home working?
The ability to work from home rather than travelling into the workplace.
What are the benefits of home working for the employer?
- reduced overheads and office running costs, may reduce the need for office space
- reduced travel related issues
- may tempt better staff to work for the business
What are the benefits of home working for the employee?
- working from the comfort of your own home increases flexibility
- no time wasted travelling/ no travel costs
- employees can work around the needs of their family = more convenient
What are the drawbacks of home working?
- less opportunity to meet people, making teamwork harder
- more temptation to work on non-work related activities
- people often work longer hours than they should
- employer have to trust staff and they have less direct control over them.
What is outsourcing?
- delegating a business process to an external provider who manages the selected process to an agreed standard. E.g. marketing/research/ product development
What is dismissal?
When an employees contract is terminated due to a breach of the terms of that contract by the employee. This can be due to:
- abstanteeism
- gross misconduct
- theft
What is redundancy?
When an employee loses their job because it is no longer required by the business. It can sometimes be voluntary and can be caused by a change in business needs such as:
- closure
- restructuring
- relocation
- new technology
What is the individual approach to staffing?
- When the worker and the manager sit face to face to discuss terms and conditions of their own contract/ interest.
- advantages: no compromise as it is just the views of one worker, decisions made on a one-on-one basis
- disadvantages: managers may not take action following the discussion as it is only one worker
What is collective bargaining?
- involves a representative (often called a union rep) of all the workers meeting with the manager to discuss terms and conditions of employment.
- this person will negotiate/protects on behalf of their members
What is the difference between internal and external recruitment?
Internal - hiring employees from within the business
External - hiring employees from outside the business
What are the advantages of internal recruitment?
- internal candidates are already familiar with the business so may not need as much training and may be more productive
- internal candidates are already loyal to the business
- internal candidates already fit in with the business so it less likely that they will leave, making it cost effective
What are the disadvantages of internal recruitment?
- can limit the number of potential applicants
- no new ideas can be introduced from outside
- may cause resentment amongst candidates not appointed
- creates another vacancy that needs to be filled
- internal candidates may not have the skills set required for a new position - might not be trained in
What are the advantages of external recruitment?
- vacancy will be advertised therefore could attract a large field of candidates to chose from
- fresh candidates bring their experiences, new ideas and enthusiasm to the business
What are the disadvantages of external recruitment?
- external candidates may need a longer induction period which could lower productivity
- external candidates may need training which can be expensive
- time consuming to find the appropriate candidate for the job
What is on-the-job training?
Coaching or mentoring while doing the job. E.g. demonstration/ coaching
What are the advantages and disadvantages of on-the-job training?
- less expensive
- learning can be put into practice immediately
- specific training needed for the job
BUT - takes time away from employees job to be trained
- reduces efficiency of both teaching worker and employee
- workers may pass on bad habits
- new workers may not pick up the skills straight away
What is off-the-job training?
Training new employees by work home or courses at company training centres/ colleges. E.g. day release, sandwich courses, self study
What are the advantages and disadvantages of off-the-job training?
- more focused environment with less distractions
- increases workers motivation as they feel valued
- employees are trained by experts
BUT - more expensive
- not tailored to the business so employees may fail to see the link between training and workplace
- may not be the right course for that member of staff
What is meant by chain of command?
- the way authority and power is passed down the hierarchy, will be from the top of the organisation structure downwards
What is meant by span of control?
The number of subordinates of whom a line manager is in charge of
What is a centralised structure?
Authority is maintained by a few at the centre of the organisation.
What is a decentralised structure?
Authority is spread across the organisation.
What is meant by hierarchy?
The number of layers of management or supervision in the organisation structure.
What is a tall/ hierarchical organisational structure?
An organisational structure with many layers of management.
What are the advantages and disadvantages of a tall organisational structure?
- motivation via promotion
- clear accountability/ responsibility
- clear target setting
BUT - slower communication dueto long chain of command
- higher cost due ti different salaries
What is a flat organisational structure?
An organisational structure with few layers of management.
What are the advantages and disadvantages of a flat organisational structure?
- faster communication due to short chain of command
- engagement, employees are more involved in day-to-day decisions
- increase in staff motivation
- lower costs due to less salaries
BUT - no opportunity for promotion = lower motivation
- no clear accountability
- hard to implement
What is a matrix organisational structure?
Individuals work across teams and projects, as well as within their own department or function.
What are the advantages and disadvantages of a matrix organisational structure?
- helps to break down traditional department barriers, improving communication
- individuals get to use their skills within a variety of contexts
- likely to result in greater motivation amongst team members
BUT - members of project teams may have divided loyalty as they report to two line managers
- may not be a clear line of accountability for project teams
- difficult to coordinate
What are the impacts of structure on a business motivation and efficiency?
- speed of decision making
- flow of communication
- degree of supervision
- opportunities for promotion
- employee motivation
What is Taylor’s Scientific Management theory of motivation?
It states…
- motivated by pay
- science could increase efficiency
- workers given one task to master
Advantages: increased productivity, fewer employees needed
Disadvantages: created unemployment & strike action, robotic structure is dehumanising
What is Mayo’s Human Relations theory of motivation?
- motivated by Taylorism but felt employees were motivated by factors other than money
- carried out the Hawthorne Experiment and came to conclusion that physical factors, such as lighting, did not affect employee motivation
- found that it was rather social factors helped increase productivity, as well as making employees feel valued and appreciated.
What are the advantages and disadvantages of Mayo’s theory?
- encourages positive workplace relations
- considers the individuals needs and well being of employees
- social factors help to increase employees morale, motivation and productivity
BUT - unscientific approach, lack of supportive evidence
- ignores potential impact of conflict
What is Maslow’s hierarchy of needs?
1st = self actualisation - intellectual needs, fulfilling potential
2nd = esteem - self respect, level of status
3rd = social - feeling wanted, part of a team
4th = safety - safe working environment
5th = psychological - basic needs e.g. food, shelter
What is Herzberg’s 2 factor theory?
- concluded that employees have motivating factors, such as interesting work, recognition and personal achievement
- ensuring hygiene factors are met
- use job enrichment and empowerment (delegating more power to employees to make their own decisions)
What is piecework?
- when employees are paid per finished item or per unit
- advantages: experienced workers earn more, incentive to complete work.
- disadvantages: workers may cut orders when they speed up leading to lower quality
What is commission?
- when employees are paid a basic rate PLUS a % of a unit price or per unit
- advantages: motivates employees to sell more, employer is not paying for downtime
- disadvantages: sales people on commission only may not make anything, not a steady income
What is a bonus?
- a lump sum paid on top of a salary or wages.
- this can be for:
- sales: for meeting targets
- performance: for meeting output or quality targets
- Christmas: as a yearly bonus
What is profit share?
- employees may be paid an annual dividend based on the level of profits made by the firm
- advantages: encourages teamwork, employees keep costs down to keep profits high, loyal employees
- disadvantages: may make staff too competitive
What is performance related pay?
- a line manager site with a worker in appraisal and decides a set of criteria or objectives that the employee must fulfil. From this, personal targets are set.
- a further appraisal will then determine how well the employee has done. E.g. excellent = 10%, satisfactory = no bonus
- advantages: directly links an employees performance with how much they are paid
- disadvantages: may cause jealousy and unrest
What is delegation?
- involves a authoritative manager allocating tasks to employees
- advantages: gives managers self confidence, empowers managers to make decisions and allocate tasks to appropriate staff, motivates staff
- disadvantages: managers sometimes delegate tasks a when overloaded with work or may not chose the most suitable employee for the task.
What is consultation?
- involves employees in discussions with management on topics such as how to improve productivity, cut costs or problem solve
What is empowerment?
- involves allowing employees more authority to delegate tasks to others
- advantages: staff are recognised for their ability, trusted and given control over decisions = less frustrated with the business and increased productivity
- disadvantages: see as cost cutting, a way of delayering, making management redundancies, makes managers insecure
What is team working?
- involves grouping employees to work in teams
- advantages: pooled talents, individuals can specialise, shared responsibility
- disadvantages: tensions can occur, a team may not be a solution to every problem - sometimes an individual approach is better
What is job rotation?
- involves moving employees from one task to another
- advantages: multi-skilled work force, less boring so may motivate staff more
- disadvantages: uncertainty over job changes may demotivate employees, worker may have to be trained in a new skill
What is job enrichment?
- involves giving the employee a greater variety of tasks of a higher responsibility
- advantages: can motivate employees by giving them a challenge
- disadvantages: may be beyond the skills of the employee, may be seen as more work = demotivating
What is job enlargement?
- involves giving an employee a variety of tasks on the same level of responsibility
- advantages: less boring, less repetitive, more efficient
- disadvantages: seen as ‘more of the same’, may be seen as more work
What is the difference between a leader and a manager?
- To lead - to be in charge of, show direction or be a superior to others
- To manage - to supervise, to be in charge of, to maintain control over resources
What is an autocratic leader?
- leaders tell their employees what they want done and how they want it accomplished, without getting the advice of they followers.
- advantages: quick decision making
- disadvantages: may demotivate employees as they may not feel valued
What is a paternalistic leader?
- this is when a leader decide what is better for their employees, based on a parent and child relationship.
- employees are consulted but leader makes the final decision
What is a democratic leader?
- This is a leader that offers guidance to group members but they also participate in the group and allow input from other group members
- democratic persuasive - leader has made decisions and then persuades subordinates into the best option
- democratic consultive - the leader consults with subordinates then makes a decision.
What is the laissez faire leadership style?
- this is where employees can carry out activities and make decision freely. The leader has little input into day-to-day decision making
- advantages: works well in creative environments
- disadvantages: lack of supervision may lead to poor productivity
