2.1 Functions and evolution of human resource management Flashcards

1
Q

Human resource management

A

the management function of using and developing people within a business to meet its organisational objectives

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2
Q

Roles of HRM

A
workforce planning
recruitment, selection and induction
training and development of staff
reviewing pay and remuneration packages
disciplinary and grievance procedures
looking after the welfare of employees
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3
Q

How can HR add value to the output?

A

increase productivity
improve quality
come up with new ideas
provide better customer service

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4
Q

Human resource/workforce planning

A

the management process of anticipating and meeting an organisation’s current and future staffing needs

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5
Q

Short-term workforce planning

A

deals with the upcoming and existing demands of an organisation

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6
Q

Long-term workforce planning

A

looks at the human resources needs of the business in the foreseeable future

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7
Q

What does workforce planning look at?

A
historical data and trends
sales and income levels
labour turnover rates
flexibility and workload of staff
demographic changes
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8
Q

Labour turnover

A

measures the percentage of the workforce that leaves the organisation in a given time period, usually one year

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9
Q

Labour turnover formula

A

number of staff leaving / total number of staff

x 100

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10
Q

What are the main reasons some people leave their jobs? [CLAMPS]

A
Challenge
Location 
Advancement 
Money 
Pride (Prestige) 
(Job) Security
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11
Q

What are some internal and external factors that influence human resource planning?

A

demographic changes
changes in labour mobility
new communication technologies

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12
Q

Why do businesses need to recruit people?

A

labour is an essential factor of production needed for the provision of any good or service
–> hiring the right people helps to ensure that businesses can function effectively.

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13
Q

Differentiate between internal recruitment and external recruitment.

A

Internal recruitment involves hiring people who have already been in the organisation to fill out a position, whereas external recruitment hires new employees from outside of the organisation to fill out vacant posts.

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14
Q

Advantages of high labour turnover

A

Low skilled and productive staff leave and replaced with better workers
New ideas and practices are brought to the company
Business planning to reduce staff

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15
Q

Disadvantages of labour turnover

A

costs of recruiting, selecting and training
Poor output levels and customer service due to staff vacancies
Difficult to establish team spirit and stable work groups.

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16
Q

Examples of demographic changes that can affect the supply of labour.

A

Population growth
Net migration
Ageing population

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17
Q

Factors affecting workforce plan

A
Supply of labour
Government
Finances
Structure of business
Effectiveness of communication
Morale of workforce
Leadership style of managers
Need for change/reaction to change
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18
Q

Advantages of internal recruitment

A

Cost effective
Less time needed to acclimate to company culture
Less risk
Motivational

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19
Q

Disadvantages of internal recruitment

A

Fewer applicants
Time consuming
No new ideas
Internal politics

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20
Q

Advantages of external recruitment

A
New blood (wide range of experiences)
Larger pool of applicants
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21
Q

Disadvantages of external recruitment

A

Even more time consuming
Expensive
Uncertainty

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22
Q

Training

A

Process of providing opportunities for workers to acquire skills and knowledge

Training is the improvement of task-specific skills

Development involves enhancing personal skills that improve workforce flexibility

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23
Q

Advantages of training

A
Improve efficiency and effectivity
Less wastage
Higher morale
Adapt to change easily
Flexible workforce
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24
Q

Disadvantages of training

A

Cost

Employees may leave since they are qualified for better jobs

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25
Induction
Introduction to company policies, general info May involve meeting other personnel, touring the premises, etc.
26
Advantages of induction
Establishes expectations Understand company culture Morale booster
27
Disadvantages of induction
Time consuming Personnel have to be freed to work on the induction Info overload
28
On the job
Learn from coworkers by experience | May involve being mentored by or shadowing senior managers
29
Advantages of on the job
Relatively cheap Relevant job-specific skills are learned Fewer disruptions to work Establish team relationships
30
Disadvantages of on the job
Possibility of learning bad working habits Trainers may lack the best training skills Trainers may not be able to work properly
31
Off the job
Learn from specialists from third party (e.g. university, speakers)
32
Advantages of off the job
Expert expertise Wide range of training No distractions Networking
33
Disadvantages
Expensive Loss of output Skills may be irrelevant
34
Cognitive
Theoretical training in the hopes of improving overall intelligence
35
Advantages of cognitive
Improves brain function (memory, reasoning, etc.) | Knowledge may apply to a wide variety of situations
36
Disadvantages of cognitive
Costly | May not be immediately practical/applicable
37
Behavioural
Practical training in order to improve employee attitudes/behaviours
38
Advantages of behavioural
May make for more competent and assertive employees | Improves customer and intra-company relations
39
Disadvantages of behavioural
Costly | Difficult to track progress
40
Poor morale is a reason for labour turnover, which is seen in:
Militant workforce Frequent union representation to management Low suggestion rates Widespread rumours
41
Recruitment process
Establishing the exact nature of the job vacancy and draw up a job description Draw up a person specification Prepare a job advertisement reflecting the requirement of the job and the personal qualities looked for Draw up a shortlist of applicants Conduct interviews
42
Employee appraisal
The process of assessing the effectiveness of an employee judged against preset objectives
43
Reasons for appraisals
Assess performance in line with job description and targets Identify hindrances Identify training needed Reflect on performance (areas for improvement) Praise good performance Set new goals/targets
44
Why are appraisals not done often?
May be costly and time consuming (thus isn’t done often), subjective, offensive, and biased (especially when appraising someone higher up)
45
Appraisal methods
Formative Summative 360 degree feedback Self appraisal
46
Formative
Qualitative feedback Gather feedback that can be used by the supervisors to guide improvements in the ongoing work being undertaken
47
Summative
Goal is to measure the level of an employee's success or proficiency in meeting predetermined benchmarks. Used to influence an employee's pay grade, annual bonus or promotion
48
360 degree feedback
Collected from 'all around ' an employee/ Does not use supervisor as the sole mean Assess training and development needs
49
Self appraisal
Employee to self evaluate his performance Need for employees to set targets for improvement
50
Dismissal
Being removed from a job due to incompetence or breach of discipline
51
Unfair dismissal
Ending a works employment contract for a reason that the law regards as being unfair
52
What does HR have to do before dismissal?
Must be seen to have done all that it can to help the employee reach the required standard
53
Redundancy
When a job is not longer required so the employee doing this job becomes redundant through no fault of his or her own
54
Changing employment patterns and practices factors
Employment sector (primary, secondary, tertiary) Aging population Labor supply
55
Flexible work structures
teleworking/home working Portfolio/Project based/Contractual working Part time employment Flexitime
56
Advantages of Flexible work structures
Increased flexibility for both Company needs only to train core employees Employees exercise more autonomy Less office overhead expense
57
Disadvantages of Flexible work structures
Requires investment in ICT, which may be unreliable Employees are harder to control Less job security for employees
58
Outsourcing/subcontracting
Transferring the internal business activities to an external firm e.g. business outsources bookkeeping duties to accounting firms
59
Reasons for outsourcing
Activities are not the core function of the business Business lacks the specific skills Cost reduction
60
Advantages of outsourcing
Better focus on core activities Helps reduce production and labor costs Ensures high quality standards
61
Disadvantages of outsourcing
Requires effective two-way communication, coordination and mutual trust Subcontractors need to be monitored and managed properly Quality inconsistency Possibility of unethical practices
62
Offshoring
Transferring of internal business activities overseas | Usually done in countries with low minimum wage
63
Reasons for offshoring
Cut down labor costs Enter new markets in growing countries Overcome political limitations and regulations
64
Advantages of offshoring
Reduce labor cost Help the business expand and gain exposure Business has access to large talent pool Stimulate host country’s economy (job opportunities, trade, etc.)
65
Disadvantages of offshoring
Language and cultural barrier Time difference Communication
66
Reshoring
Bringing back offshore/outsourced personnel and services back to the original location
67
Reasons for reshoring
Foreign labor costs are increasing | Problems with delivery/logistics
68
Advantages of reshoring
Greater control Increased proximity to customers/shorter supply chain Product quality may increase
69
Disadvantages of reshoring
May still be more costly | Local country may lack the labor supply
70
Hard HRM
An approach to managing staff that focuses on cutting cost
71
Examples of Hard HRM
Using temporary and part-time employment contracts Offering maximum flexibility but with minimum training costs
72
Soft HRM
An approach to managing staff that focuses on developing staff so that they reach self fulfilment and are motivated to work hard and stay with the business
73
Limitations of soft HRM
Global competition leads to low prices being the most important