3.6 DECISION MAKING TO IMPROVE HUMAN RESOURCE PERFORMANCE Flashcards
Name effective ways of measuring the workforce
- Staff Turnover
- Labour Productivity
- Absenteeism
- Retention Rate
Operational ways of measuring the workforce effectively
- Capacity utilisation
- Quality reports
- Waste levels
- Environmental targets
Marketing ways of measuring the workforce effectively
- Market share
- Customer satisfaction
- Recognition levels
- Customer loyalty
Why may a member of staff leave their employment?
- Lack of authority
- Bad working conditions
- Competitors offer better pay
- Stress / Mental Health / Personal
Define Retention Rate
Ability for a business to persuade its staff to stay with them
Define Labour Turnover
The percentage of the workforce (employees) that leave a business within a given period
Equation for Labour Turnover
Number of employees during period
/
Average number employed during period
(x100)
Why is high staff turnover a problem?
- Higher costs, for re-recruitment
- Increases pressure on remaining staff
- Disruption to production and productivity
Factors that may cause high staff turnover
- Pay
- Working conditions
- Lack of promotion
- Competition poaching staff
- Poor communication
- Economic conditions (e.g. during recession)
How to improve staff turnover
- Effective recruitment and training
- Competitive pay and benefits
- Job enrichment
- Reward staff loyalty / incentives
Define labour productivity
How much employees produce in a given time period, the more productive the better
Why does labour productivity matter?
- Labour costs are normally a very high % of total costs
- The efficiency of a business relies on how productive the workforce is
- Competitiveness depends on keeping unit costs down
Factors affecting labour productivity
- Extent and quality of fixed assets (e.g. equipment and IT)
- Ability to motivate the workforce
- Methods of production used
- External factors (e.g. reliability of suppliers)
How to improve productivity
MOTIVATE !
- Measure performance and set targets
- Invest in better equiptment
- Simplify products
- Improve employee training
Define Absenteeism
Measure people who are absent
Equation for Absenteeism
Number of staff absent during period
/
Number employed during period
(x100)
- or -
Number of days taken off for unauthorized absence (during period)
/
Total days worked by workforce over the period
(x100)
How to tackle absenteeism
- More days off
- Investigate the cause
- Set targets
- Have clear absence policies
- REWARD GOOD ATTENDANCE
Problems of bad absenteeism
- Costly
- Business will need to investigate which will be time consuming
- Productivity down
How is absenteeism predictable?
Often highly predictable because occurs at certain points in the year
Define ‘Human Resource Management’
Design, implementation and maintenance of strategies to manage people for optimum business performance
Why is HRM important?
- People are a critical resource in the quality and customer service level
- Competitiveness requires a business to be efficient and productive- workforce needs to be motivated; right skills and organised
- Flatter organisational structures place greater emphasis on delegation and communication
Suggest strategic methods of HRM
- Workforce planning
- Recruitment and training/development
- MOTIVATING STAFF
- Organisational structures (hierarchy etc)
How would a business…
Ensure human resources are employed cost effectively
(HR Actions)
- Pay rates should be competitive but not excessive, can cause loss
- Achieve acceptable staff utilisation
- Measure returns on investment in training, see if its worth it
How would a business…
Make effective use of workforce potential
(HR Actions)
- Ensure jobs have suitable, achievable workloads
- Avoid under-utilising or over-stretching staff potential
- Make best use of employee skills, don’t waste on unnecessary tasks
How would a business…
Match the workforce to the business needs
(HR Actions)
- Workplace planning: right number of staff in right place with right skills
- Effective recruitment
- Consider outsourcing
- Spread out staff effectively
What does workforce planning ensure?
Right number of staff in right place with right skills
How would a business…
Maintain good employer / employee relations
(HR Actions)
- Honest, constant communication with employees
- Comply with all correct ethical employment legislation
- Offering incentives (e.g. financially)
Internal influences on Corporate objectives (HR objective)
An objective of cost reduction is likely to require HR to implement redundancies, job relocations etc
Internal influences on operational strategies (HR objective)
Introduction of new IT systems and processes may require new staff training, fewer staff
Internal influences on marketing strategies (HR objective)
New product development into a new market may require changes to organisational structure and recruitment of a new sales team
Internal influences on financial strategies (HR objective)
A decision to reduce costs by outsourcing training would result in changes to training programmes
External influences on market changes (HR objective)
A loss of market share to a competitor may lead to a change in management. or job losses to improve competitiveness
External influences on economic changes (HR objective)
Recessions = reduce staff costs and improve productivity to combat it
External influences on tech changes (HR objective)
Rapid growth of social networking may require changes to the way the business communicates with employees and customers
External influences on legal changes (HR objective) - context
EU legislation on areas such as max working time and other employment rights which cannot be breached
Define ‘hard’ HRM
AUTOCRATIC - tall organisational structures
- Treats employees as a RESOURCE
- Strong links to corporate objective rather than functional objective
- HARSH: hiring, moving and firing - centralised decisions
- Pay absolute minimum as not worried about motivation
Define ‘soft’ HRM
DEMOCRATIC - flatter organisational structure
- Treats employees as an ASSET that can contribute and help the business achieve its objectives
- Treats employees as the most important resource in the business, and a source of competitive advantage
- Concentrates on their needs: roles, rewards and motivation
- Focuses more on long term
- Strong communication
- Competitive pay
What is ‘competitive pay’?
Stacks up well when compared with similar jobs from other employers
What is the typical organisational structure for ‘Soft HRM’
Flat
What is the typical organisational structure for ‘Hard HRM’
Tall
Advantages of Hard HRM
- More cost-effective
- Decision making quicker
- Employer gets max control
Disadvantages of Hard HRM
- May suffer from high absenteeism; staff turnover and unsuccessful recruitment as employee morale is low
- Lower staff engagement: staff may not enjoy going to work
Advantages of Soft HRM
- Motivates employees
- Rewards employee performance effectively
- Employees feel more valued and involved - part of the process
- Teamwork encouraged
Advantages of Soft HRM
- Motivates employees
- Rewards employee performance effectively
- Employees feel more valued and involved - part of the process
- Teamwork encouraged
Disadvantages of Soft HRM
- Costly: can be too ‘soft’, can cost the business a lot of money causes a loss of competitive advantage
- Lack of focus: large focus on employees rather than corporate goals/strategies
- Employees may disapprove of an employee-centred model
What are the key categories of human resource objectives?
- Employee engagement and involvement
- Training
- Diversity
- Alignment of values (what the business stands for)
- Number, skills and location of employees
What is the Hackman and Oldham job characteristics model based on?
The belief that the task itself is key to employee motivation
List all 5 characteristics of the ‘Hackman and Oldham job characteristics model’
JOB SATISFACTION IN MIDDLE
- Skill variety
- Task identify
- Task significance
- Autonomy
- Job Feedback
Define ‘task identity’ (Hackman and Oldham)
Whether there is a clearly defined task beginning, middle and end to a task
Does the employees know what they are doing
Define ‘task significance’ (Hackman and Oldham)
Does the task have a substantial impact on the business
Does it have meaning?
Define ‘autonomy’ (Hackman and Oldham)
How much freedom an individual has to accomplish tasks
e.g. free to schedule work?
Define ‘job feedback’ (Hackman and Oldham)
Employee kept in the loop about performance
Told what they have done well
Told what they have done bad (constructive in improvement)
Define ‘span of control’
Number of subordinates for whom a manager is directly responsible.
What does a suitable span of control depend on?
- Personality of the manager
- Nature of the business
- If close supervision needed, may need narrower span
- Skills and attitudes of the employees - INDEPENDENCE?
- Tradition and culture of the organisation: democratic tradition
Advantages of Narrow Span of Control (Tall Organizational Structure)
- Closer supervision of employees
- Effective communication
- Closer/adapted teams: teamwork
Disadvantages of Wide Span of Control (Flat Organizational Structure)
- Fewer Opportunities for Employees: with fewer layers within the organization there is less opportunity for employees to be promoted.
- Poor Discipline: with so much autonomy given to employees these organizations can suffer from poor discipline.
Advantages of Wide Span of Control (Flat Organisational Structure)
- Gives subordinates the chance for more independence
- More appropriate if labor costs are significant – reduce number of managers
- Less spending on managers, reduces costs
Disadvantages of Narrow Span of Control (Tall Organizational Structure)
- Expensive: differing job roles
- Limit the ability of team members to exercise independence in decision-making and problem-solving processes
- Higher Number of Managers - employees may feel controlled
- Too much supervision of employees - affecting their performance, increase in labour turnover
Define ‘delegation’
Shifting of authority and responsibility for particular functions, tasks or decisions from one person to another
Usually to employees
Define ‘centralisation’
Business decisions are made at the top of the business or in a head office and distributed down the chain of command
Autocratic approach
Define ‘decentralisation’
SPREADING decision making down the organisational structure
Decision-making powers delegated by top management to further down the hierarchy
Democratic approach
Contextual example of ‘centralisation’
Fast food use centralised structure to ensure that control is maintained over their thousands of outlets
Need to ensure consistency of customer experience (franchise)
Benefits to Centralisation
- Keeps subordinates on task
- Prevents other parts of the business from becoming too independent
- Easier to coordinate and control from centre
- Economies of scale and fixed costs savings easier to achieve
- Quicker decision making - stronger leadership
Drawbacks to Centralisation
- Autocratic
- Higher costs: extra layers to hierarchy
- Lack of authority down the hierarchy, reduce manager motivation
- Customer service: lack flexibility and speed of local decision making
Define ‘delayering’
Involves removing one or more levels of hierarchy from the organisational structure.
Contextual example of ‘decentralisation’
Hotel staff given authority to make customer service decisions
Benefits to Decentralisation
- Decisions made closer to the customer
- Better able to respond to local circumstances
- Improved customer service
- Cost less: flatter hierarchy
- Improves motivation of staff: empowerment
Drawbacks to Decentralisation
- Decision making can be unreliable
- Harder to ensure consistency at each location
- May be some diseconomies of scale: e.g. duplication of roles
- Who provides strong leadership when needed? (e.g. in a crisis)
- Could be badly organised, lead to cost overruns - staff inexperienced in finance
Define ‘internal recruitment’
When the business looks to fill the vacancy from within its existing workforce
Define ‘external recruitment’
When the business looks to fill the vacancy from any suitable applicant outside the business
Advantages of ‘internal recruitment’
- Cheaper and quicker to recruit
- Already familiar with the business and how it operates
- Provides opportunities for promotion: motivating
- Business already knows the strengths and weaknesses of candidates
Disadvantages of ‘internal recruitment’
- No new ideas can be introduced from outside
- May cause resentment amongst candidates not appointed
- Creates another vacancy which needs to be filled, in their place
- Limited choice
- Failed applicants become less motivated
- Bias / favouritism
Advantages of ‘external recruitment’
- Bring in new ideas
- Larger pool of workers from which to find the best candidate
- Wider range of experience / choice
- Fairness: not familiar with applicants
Disadvantages of ‘external recruitment’
- Longer process
- More expensive process (advertising and interviews)
- Selection process may not be effective enough to reveal the best candidate
- Possibility of wrong selection
Define ‘training’
Process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively
Acquires job-related skills and knowledge.
Explain why ‘training’ is long term?
Despite training costs being high, a business may see it as worth it as as the workforce becomes more skilled, productivity will increase
Why may a business use training?
- Support new employees
- Improve productivity
- Increase marketing effectiveness
- Support higher standards of customer service / change in demand
- Introduction of new technology
- Changes in legislation
Benefits of ‘training’ employees
- Higher quality of products
- Better productivity
- Improved motivation - through greater empowerment
- More flexibility through better skills
- Less supervision required (cost saving in supervision)
- Better recruitment and employee retention
What are the three stages of training?
- Identify the skills
- Action plan of investment
- Implement the plan, monitoring progress
Why may a business not train employees?
- Fear employees will be poached by competitors
- Desire to minimise short-term costs
- Don’t have enough £££
- Doesn’t have the time
- Sometimes the benefits of training are more intangible (e.g. morale) than tangible – so they are harder to measure
Outline Fredrich Winslow TAYLOR’s motivational theory
- Motivated by £££ (Money Motivated Workers)
- Piece rate pay etc
- ‘Economic man’
- Scientific management (monitor workers)
Outline Abraham Harold MASLOW motivational theory
- Hierarchy of needs - human needs placed in order
- Neo-human relations
Name all tiers of MASLOW’s hierarchy of needs
- Physiological (Food/Shelter)
- Safety and security (Job security)
- Love and belonging (Feeling wanted)
- Self-esteem (confidence, respect from others)
- Self-actualisation (Fulfilling potential and achieving targets)
Drawbacks of Maslow’s hierarchy of needs
- Not everyone has the same needs
- Not many employees will reach the top of the hierarchy
Outline Elton MAYO’s motivational theory
- Hawthorne experiments
- Being paid attention to improves motivation: pressure
What did the Hawthorne Experiments find out? (Elton Mayo)
Workers were highly responsive to additional attention from their managers and the feeling that their managers actually cared about
Outline Fredrick Herzberg motivational theory
Employee satisfaction has two dimensions:
Hygiene and motivation
Argued that job enrichment (through motivators) should be a central element in any policy of motivation.
Define ‘hygiene factors’ (Herzberg)
If they aren’t present, they will lead to staff being unhappy
Improving these won’t motivate
Define ‘job rotation’
Movement of employees through a range of jobs in order to increase interest and motivation.
Define ‘job enrichment’
Vertical expansion of a job
Gives employees greater responsibility by increasing the range and complexity of tasks they are called upon to complete and giving them the necessary authority.
Advantage of ‘job rotation’
- Easier to cover for absent colleagues
- Increase motivation: eliminates boredom
- Helps to identify where employees work best
Disadvantage of ‘job rotation’
- Reduces productivity / time-consuming (workers unfamiliar with new task)
- Employees may resist
Advantage of ‘job enrichment’
- Workload spread out, less stress for individuals
- Increased productivity, keeps employees busy
- Positive morale
- Increased job satisfaction: lower staff turnover
Disadvantage of ‘job enrichment’
- Employees may demand higher pay
- Increase stress of employees: higher workload- decrease motivation
- Increased monitoring
Define ‘human resources’
Everything to do with managing people/staff
How does technology affect decision making and activities in relation to human resources?
- Could replace staff
- Improve communication between staff
- Offers training
Define ‘employee engagement’
Degree of commitment shown by employees to their individual work as well as towards the business objective as a whole
Define ‘employee involvement’
Amount of contribution an employee can make to their working practices and decision making
Quantities of involved workers
- Positive
- Active
- Seeks opportunities
- Gets involves
Describe the ‘Development Cycle’
- Talent planning
- Recruitment
- Orientation
- Develop skills
- Evaluate performance
- Plan ahead / future targets
BACK TO BEGINNING
Internal influences on HR objectives
- Cost minimalization: staff get paid less
- Market growth: more staff?
- Maximise shareholder’s return: staff get paid less
- Increased competitiveness: more staff?
- Cutting budgets: staff get paid less
External influences on HR objectives
- Workforce skills and availability
- Tech changes
- Market conditions: trends/habits etc
- Politics
Define ‘alignment of values’
Keeping everyone in the business works towards objectives
What category of objective is ‘alignment of values’ apart of?
a. HR
b. Marketing
c. Operations
d. Financial
HR
What category of objective is ‘brand loyalty’ apart of?
a. HR
b. Marketing
c. Operations
d. Financial
Marketing
What category of objective is ‘quality’ apart of?
a. HR
b. Marketing
c. Operations
d. Financial
Operations
What category of objective is ‘return on investment’ apart of?
a. HR
b. Marketing
c. Operations
d. Financial
Financial
‘Financial incentives’ that a business may adopt
- Time-based pay
- Piece-rate pay
- Commission
- BONUSES (based on profit made)
- Employee share ownership program (Waitrose)
‘Non-financial incentives’ that a business may adopt
- Job enrichment
- Job enlargement
- Job rotation
What is the difference between ‘job enlargement’ and ‘job enrichment’?
Job Enlargement is a horizontal expansion of a job, which means the addition of extra duties and tasks to the same job.
Job Enrichment is a vertical expansion of a job, which means it involves an expansion of functions and responsibilities of the employee.
Define ‘job enlargement’
Horizontal expansion of a job, which means the addition of extra duties and tasks to the same job.
Define ‘job design’
Number and variety of tasks to be undertaken by an employee
What are the three critical psychological states of HR (for employees)
- Meaningfulness of work
- Responsibility
- Knowledge (of actual results)
Outline ‘personal and work outcomes’
- Higher work motivation
- High quality work
- Satisfied at work
- Lower absenteeism / staff turnover / higher retention rates
What is the order of stages a business should look at when analysing how they could improve their HR performance?
- Five Job Characteristics (H+O)
- Three Critical Psychological States
- Personal and Work Outcomes
Define ‘centralised authority’
Maintained by a few at the centre of an organisation
Define ‘decentralised authority’
Spread across an organisation
Define ‘organisational structure/design’
System that outlines how certain activities are directed in order to achieve the goals of an organisation.
Takes into account: authority and responsibility
Define ‘organisational chart’
Diagram that visually conveys a company’s internal structure by detailing the roles, responsibilities and relationships between individuals within a business.
Define ‘accountability’
The fact or condition of being responsible
Define ‘responsibility’
Having to deal with something or having control of people
What is the difference between ‘span of control’ and ‘chain of command’
Span of control concerns the number of people someone in an organisation is responsible for
Chain of command is the level of hierarchy
Define ‘chain of command’
Levels of hierarchy
Advantages of ‘delayering’
- Can improve communication: messages have pass through fewer levels of hierarchy
- Offers opportunities for better delegation, empowerment and motivation: number of managers reduced, so more authority passed down hierarchy
- Reduces costs: fewer managers required
- Managers closer to customers = better customer service
- Remove departmental rivalry = MORE TEAMWORK
Disadvantages of ‘delayering’
- Not all organisations are suited to flatter organisational structures - mass production industries with low-skilled employees may not adapt easily (may be dangerous to give unskilled subordinates power)
- Can have a negative impact on motivation due to job losses
- Ethical impact: excuse for redundancy
- Period of disruption: as people take on new responsibilities and fulfil new roles
- Managers remaining will have a wider span of control which, if it is too wide, can damage communication within the business
- Danger of increasing the workload
- May create skills shortages within the business – a danger is that delayering means that the business loses managers and staff with valuable experience
Define ‘recruitment’
Process of finding people to work for a company
Define ‘selection’
Methods used to choose the most suitable candidate for a vacancy
Why may a business recruit?
- Replace staff that leave (get period of high staff turnover back on track)
- Acquire new skills
- Increase demand at a product launch, expansion
What is the job process?
- Vacancy
- Job description
- Person specification
- Advertise
- Application process (CV)
- Short-listing
- Interviews
- Selection and appointment
Define ‘flexible workforce’
A workforce that can perform a variety of different functions
Group of multi-skilled workers
Define ‘full-time’ employment
Works a minimum number of hours defined by employer
Define ‘temporary’ employment
Works under a fixed-term contract
Define ‘permanent’ employment
- Full-time
- Salary
- No end date
Define ‘fixed terms’ employment
Employment contract that ends on a specified date or on completion of a particular task/project.
Define ‘seasonal’ employment
Hired into a position for a short-term
Mostly part-time or temporary workers that help out with increased work demands or seasonal work that arise in different industries.
Define and outline the shamrock organisational model
Leaf shape which is symbolic of an organisation with three types of workforce
Start from left:
- Contract
- Core
- Peripheral
Define ‘downsizing’
Permanent reduction of a company’s labour force through the elimination of unproductive workers or divisions.
Usually used for failing businesses
Advantages of a ‘flexible workforce’
- Reduce costs (can go remote)
- Increase efficiency (can do anything)
- Seasonal: only needed when a business needs them
Disadvantages of a ‘flexible workforce’
- Communication difficulties: employees may become too flexible
- Procrastination of employees
- Remote working = home / work balance
- Employees feel side-lined
- All depends on preferences of employees
Define ‘trade union’
Organised association of workers in a trade, group of trades, or professions formed to protect and further their right and interests in a specific field.
Independent, membership-based organisations of workers that represent and negotiate on behalf of working people.
What are the three main types of trade union?
- Craft
- Industrial
- General
Define a ‘craft’ trade union
Combines workers who engaged in a particular craft or skill, whom may work for various employers
Formed to improve wage levels and working conditions
e.g. BRICK-LAYERS
Define a ‘industrial’ trade union
Combines all workers, both skilled and unskilled, who are employed in a particular industry or employer
e.g. THE TECHNOLOGY INDUSTRY
Difference between ‘craft’ and ‘industrial’ unions
Craft concerns a particular skill
Industrial concerns both skill and unskilled workers in an industry
Define a ‘industry’ trade union
Combines all workers, both skilled and unskilled, who are employed in a particular industry
e.g. TECHNOLOGY INDUSTRY
Define a ‘general’ trade union
NOT SPECIFIC
Represents workers from all industries and companies
What do trade unions do to help workers?
- Offer advice to members that have problems at work
- Represent members in discussions with employers
- Helps improve wages and working conditions
What does it mean if an employer ‘recognises’ a Trade Union?
Once an employer has agreed to negotiate with it on pay and working conditions on behalf of a particular group of workers.
Formal agreement
Benefits of Trade Unions for employers
- Enable simpler and effective negotiation process - less complex (1-body)
- Enables early identification and resolution of labour-related problems before they escalate
- Reduction in labour turnover, initiates change to improve employee morale
Benefits of Trade Unions for employees
- Better working conditions
- Training for new skills
- Sense of community/belonging
- Advice on your legal employment rights
- Advice on problems at work
Define an ‘industrial dispute’
Conflict or a difference in opinion between management and workers regarding issues in the workplace
Define ‘industrial action’
Temporary show of dissatisfaction made by employees
e.g. strike/slowdown/working-to-rule etc…
Attempt to protest against issues such as working conditions / low pay - increases bargaining power
What are the four forms of industrial action?
- Strike
- Overtime ban
- Work-to-rule
- Go-slow
Why is industrial action effective?
IT’S WEAK POINT
A business depends entirely on their employees. Without employees, the business cannot operate, so the employees use this action against the business
Define a ‘strike’
Work stoppage
Caused by mass refusal of employees to work
Often used to pressure governments to change policies
Define a ‘overtime-ban’ (industrial action)
- Workers refuse to engage in overtime work (any work that falls outside of contracted hours)
Define ‘work-to-rule’ (industrial action)
- Employees do no more than the minimum required (by rules of contract)
- Causes a slowdown / decrease in productivity
- No longer working during breaks or during unpaid extended hours and weekends
Define ‘go-slow’ (industrial action)
- Employees perform their duties but seek to reduce productivity or efficiency in their performance
- Seen as less disruptive / less risky
- Avoids negative outcomes such as unpaid days and replacement
Advantages of ‘strikes’ (industrial action)
- Employee empowerment
Disadvantages of ‘strikes’ (industrial action)
ECONOMIC EFFECTS OF A STRIKE FOR BOTH PARTIES
- Risk of employees being replaced - loss of skilled workforce / wasted
- Employees unpaid days
- Business likely to lose money due to delayed service to clients and decreased productivity
Advantages of ‘work-to-rule’ (industrial action)
- Less disruptive than a strike, less risk of replacement and unpaid work
Disadvantages of ‘work-to-rule’ (industrial action)
- May be ineffective if business doesn’t require anymore than the minimum anyway
Advantages of ‘go-slow’ (industrial action)
- Less disruptive than a strike, less risk of replacement and unpaid work
Disadvantages of ‘overtime ban’ (industrial action)
- Business may not require overtime anyway, ineffective
What are the problems of industrial action for the employer and the employee?
Employer: lowers productivity and may show a decrease in performance/sales
Employee: lack of job security as could be replaced; risk of not being paid
Define a ‘Single Union Agreement’
AKA… ‘strike-free agreements’
Granting recognition to a single trade union in return for guarantees on the avoidance of conflict and the continual cooperation between management and employees within the workplace
Way of avoiding industrial action
Define ‘no-strike agreement’ (trade unions)
An agreement that states that employees will not strike
Define ‘ACAS’ and its role (trade unions)
The Advisory Conciliation and Arbitration Service
- Helps employees and employers solve problems by working together
- Helps avoid actions of trade unions by MEETING IN THE MIDDLE
Define ‘conciliation’ (ACAS - trade unions)
Action of mediating between two disputing people or groups
Define ‘arbitration’ (ACAS - trade unions)
Procedure of a dispute being submitted to an arbitrator who makes a binding decision on dispute
Think… a judge
Define ‘mediation’ (ACAS - trade unions)
Process where parties meet with a mutually selected neutral person who assits them in the negotiation of differences
Define ‘union density’ / ‘trade union density’Define ‘union density’ / ‘trade union density’
Ratio of wage and salary earners that are trade union members to the total number of wage and salary earners in the economy
Contextual examples of strikes (industrial actions of trade unions)
- 1972: Miners strike
- 2019: Heathrow strike
- 1982: British rails strike - threats of privatisation
Define ‘employee representation’
Systems put in place to aid communication between employers and employees
Gives a voice to employees
One-to-one discussion
Examples of ‘employee representation’
- Trade Unions
- Work councils
Key objectives of trade unions
- Securing jobs
- Maximising pay
- Ensuring safe and acceptable conditions
- Fair treatment of members by employers
Unions can work with employees and employers to…
- Enhance business performance
- Improve international competitiveness
- Implement change
- Lower labour turnover
- Increase motivation
Define a ‘work council’
A group made up of managers and representative employees who meet regularly to discuss issues relating to the business and specifically issues affecting the work force
What is the criteria to acquiring a work council?
- Business must have over 50 employees
- Representatives must be elected
- The council should have one representative per 50 employees
What is ‘human resources’ ?
Anything to do with staff / people
Examples of human resource analysis
- Labour productivity
- Labour turnover
- Labour retention
- Assessment of staff skills and qualifications
- Staff morale
- HR training and recruitment
What is meant by piece-rate pay?
Paid per unit produced.
What’s an advantage of piece-rate pay?
If worker produces more than the target output they get bonus pay.
Drawbacks of the Taylor Motivation Theory
Too crude, just based on finance, and with today’s economic knowledge we know that invocation and creativity is incredibly important and they’re not accounted for