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Business A level > 3.6 Decision making to improve human resource performance > Flashcards

3.6 Decision making to improve human resource performance Flashcards

1
Q

Name effective ways of measuring the workforce

A
  • Staff Turnover
  • Labour Productivity
  • Absenteeism
  • Retention Rate
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2
Q

Operational ways of measuring the workforce effectively

A
  • Capacity utilisation
  • Quality reports
  • Waste levels
  • Environmental targets
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3
Q

Marketing ways of measuring the workforce effectively

A
  • Market share
  • Customer satisfaction
  • Recognition levels
  • Customer loyalty
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4
Q

Why may a member of staff leave their employment?

A
  • Lack of authority
  • Bad working conditions
  • Competitors offer better pay
  • Stress / Mental Health / Personal
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5
Q

Define Retention Rate

A

Ability for a business to persuade its staff to stay with them

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6
Q

Define Labour Turnover

A

The percentage of the workforce (employees) that leave a business within a given period

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7
Q

Equation for Labour Turnover

A

Number of employees during period

/

Average number employed during period

(x100)

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8
Q

Why is high staff turnover a problem?

A
  • Higher costs, for re-recruitment
  • Increases pressure on remaining staff
  • Disruption to production and productivity
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9
Q

Factors that may cause high staff turnover

A
  • Pay
  • Working conditions
  • Lack of promotion
  • Competition poaching staff
  • Poor communication
  • Economic conditions (e.g. during recession)
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10
Q

How to improve staff turnover

A
  • Effective recruitment and training
  • Competitive pay and benefits
  • Job enrichment
  • Reward staff loyalty / incentives
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11
Q

Define labour productivity

A

How much employees produce in a given time period, the more productive the better

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12
Q

Why does labour productivity matter?

A
  • 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
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13
Q

Factors affecting labour productivity

A
  • 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)
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14
Q

How to improve productivity

A

MOTIVATE !

  • Measure performance and set targets
  • Invest in better equiptment
  • Simplify products
  • Improve employee training
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15
Q

Define Absenteeism

A

Measure people who are absent

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16
Q

Equation for Absenteeism

A

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)

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17
Q

How to tackle absenteeism

A
  • More days off
  • Investigate the cause
  • Set targets
  • Have clear absence policies
  • REWARD GOOD ATTENDANCE
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18
Q

Problems of bad absenteeism

A
  • Costly
  • Business will need to investigate which will be time consuming
  • Productivity down
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19
Q

How is absenteeism predictable?

A

Often highly predictable because occurs at certain points in the year

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20
Q

Define ‘Human Resource Management’

A

Design, implementation and maintenance of strategies to manage people for optimum business performance

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21
Q

Why is HRM important?

A
  • 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
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22
Q

Suggest strategic methods of HRM

A
  • Workforce planning
  • Recruitment and training/development
  • MOTIVATING STAFF
  • Organisational structures (hierarchy etc)
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23
Q

How would a business…

Ensure human resources are employed cost effectively

(HR Actions)

A
  • 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
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24
Q

How would a business…

Make effective use of workforce potential

(HR Actions)

A
  • 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
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25
Q

How would a business…

Match the workforce to the business needs

(HR Actions)

A
  • Workplace planning: right number of staff in right place with right skills
  • Effective recruitment
  • Consider outsourcing
  • Spread out staff effectively
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26
Q

What does workforce planning ensure?

A

Right number of staff in right place with right skills

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27
Q

How would a business…

Maintain good employer / employee relations

(HR Actions)

A
  • Honest, constant communication with employees
  • Comply with all correct ethical employment legislation
  • Offering incentives (e.g. financially)
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28
Q

Internal influences on Corporate objectives (HR objective)

A

An objective of cost reduction is likely to require HR to implement redundancies, job relocations etc

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29
Q

Internal influences on operational strategies (HR objective)

A

Introduction of new IT systems and processes may require new staff training, fewer staff

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30
Q

N/A

A

N/A

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31
Q

N/A

A

N/A

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32
Q

Internal influences on marketing strategies (HR objective)

A

New product development into a new market may require changes to organisational structure and recruitment of a new sales team

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33
Q

Internal influences on financial strategies (HR objective)

A

A decision to reduce costs by outsourcing training would result in changes to training programmes

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34
Q

External influences on market changes (HR objective)

A

A loss of market share to a competitor may lead to a change in management. or job losses to improve competitiveness

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35
Q

External influences on economic changes (HR objective)

A

Recessions = reduce staff costs and improve productivity to combat it

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36
Q

External influences on tech changes (HR objective)

A

Rapid growth of social networking may require changes to the way the business communicates with employees and customers

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37
Q

External influences on legal changes (HR objective) - context

A

EU legislation on areas such as max working time and other employment rights which cannot be breached

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38
Q

Define ‘hard’ HRM

A

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
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39
Q

Define ‘soft’ HRM

A

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
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40
Q

What is ‘competitive pay’?

A

Stacks up well when compared with similar jobs from other employers

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41
Q

What is the typical organisational structure for ‘Soft HRM’

A

Flat

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42
Q

What is the typical organisational structure for ‘Hard HRM’

A

Tall

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43
Q

Advantages of Hard HRM

A
  • More cost-effective
  • Decision making quicker
  • Employer gets max control
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44
Q

Disadvantages of Hard HRM

A
  • 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
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45
Q

Advantages of Soft HRM

A
  • Motivates employees
  • Rewards employee performance effectively
  • Employees feel more valued and involved - part of the process
  • Teamwork encouraged
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46
Q

Advantages of Soft HRM

A
  • Motivates employees
  • Rewards employee performance effectively
  • Employees feel more valued and involved - part of the process
  • Teamwork encouraged
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47
Q

Disadvantages of Soft HRM

A
  • 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
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48
Q

What are the key categories of human resource objectives?

A
  • Employee engagement and involvement
  • Training
  • Diversity
  • Alignment of values (what the business stands for)
  • Number, skills and location of employees
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49
Q

What is the Hackman and Oldham job characteristics model based on?

A

The belief that the task itself is key to employee motivation

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50
Q

List all 5 characteristics of the ‘Hackman and Oldham job characteristics model’

A

JOB SATISFACTION IN MIDDLE

  1. Skill variety
  2. Task identify
  3. Task significance
  4. Autonomy
  5. Job Feedback
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51
Q

Define ‘task identity’ (Hackman and Oldham)

A

Whether there is a clearly defined task beginning, middle and end to a task

Does the employees know what they are doing

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52
Q

Define ‘task significance’ (Hackman and Oldham)

A

Does the task have a substantial impact on the business

Does it have meaning?

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53
Q

Define ‘autonomy’ (Hackman and Oldham)

A

How much freedom an individual has to accomplish tasks

e.g. free to schedule work?

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54
Q

Define ‘job feedback’ (Hackman and Oldham)

A

Employee kept in the loop about performance

Told what they have done well

Told what they have done bad (constructive in improvement)

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55
Q

Define ‘span of control’

A

Number of subordinates for whom a manager is directly responsible.

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56
Q

What does a suitable span of control depend on?

A
  • 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
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57
Q

Advantages of Narrow Span of Control (Tall Organizational Structure)

A
  • Closer supervision of employees
  • Effective communication
  • Closer/adapted teams: teamwork
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58
Q

Disadvantages of Wide Span of Control (Flat Organizational Structure)

A
  • 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.
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59
Q

Advantages of Wide Span of Control (Flat Organisational Structure)

A
  • Gives subordinates the chance for more independence
  • More appropriate if labor costs are significant – reduce number of managers
  • Less spending on managers, reduces costs
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60
Q

Disadvantages of Narrow Span of Control (Tall Organizational Structure)

A
  • 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
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61
Q

Define ‘delegation’

A

Shifting of authority and responsibility for particular functions, tasks or decisions from one person to another

Usually to employees

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62
Q

Define ‘centralisation’

A

Business decisions are made at the top of the business or in a head office and distributed down the chain of command

Autocratic approach

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63
Q

Define ‘decentralisation’

A

SPREADING decision making down the organisational structure

Decision-making powers delegated by top management to further down the hierarchy

Democratic approach

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64
Q

Contextual example of ‘centralisation’

A

Fast food use centralised structure to ensure that control is maintained over their thousands of outlets

Need to ensure consistency of customer experience (franchise)

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65
Q

Benefits to Centralisation

A
  • 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
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66
Q

Drawbacks to Centralisation

A
  • 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
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67
Q

Define ‘delayering’

A

Involves removing one or more levels of hierarchy from the organisational structure.

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68
Q

Contextual example of ‘decentralisation’

A

Hotel staff given authority to make customer service decisions

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69
Q

Benefits to Decentralisation

A
  • 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
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70
Q

Drawbacks to Decentralisation

A
  • 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
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71
Q

Define ‘internal recruitment’

A

When the business looks to fill the vacancy from within its existing workforce

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72
Q

N/A

A

N/A

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73
Q

Define ‘external recruitment’

A

When the business looks to fill the vacancy from any suitable applicant outside the business

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74
Q

Advantages of ‘internal recruitment’

A
  • 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
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75
Q

Disadvantages of ‘internal recruitment’

A
  • 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
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76
Q

Advantages of ‘external recruitment’

A
  • 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
77
Q

Disadvantages of ‘external recruitment’

A
  • Longer process
  • More expensive process (advertising and interviews)
  • Selection process may not be effective enough to reveal the best candidate
  • Possibility of wrong selection
78
Q

Define ‘training’

A

Process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively

Acquires job-related skills and knowledge.

79
Q

Explain why ‘training’ is long term?

A

Despite training costs being high, a business may see it as worth it as as the workforce becomes more skilled, productivity will increase

80
Q

Why may a business use training?

A
  • Support new employees
  • Improve productivity
  • Increase marketing effectiveness
  • Support higher standards of customer service / change in demand
  • Introduction of new technology
  • Changes in legislation
81
Q

Benefits of ‘training’ employees

A
  • 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
82
Q

What are the three stages of training?

A
  • Identify the skills
  • Action plan of investment
  • Implement the plan, monitoring progress
83
Q

Why may a business not train employees?

A
  • 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
84
Q

Outline Fredrich Winslow TAYLOR’s motivational theory

A
  • Motivated by £££
  • Piece rate pay etc
  • ‘Economic man’
  • Scientific management
85
Q

Outline Abraham Harold MASLOW motivational theory

A
  • Hierarchy of needs - human needs placed in order

- Neo-human relations

86
Q

Name all tiers of MASLOW’s hierarchy of needs

A
  1. Physiological (Food/Shelter)
  2. Safety and security (Job security)
  3. Love and belonging (Feeling wanted)
  4. Self-esteem (confidence, respect from others)
  5. Self-actualisation (Fulfilling potential and achieving targets)
87
Q

Drawbacks of Maslow’s hierarchy of needs

A
  • Not everyone has the same needs

- Not many employees will reach the top of the hierarchy

88
Q

Outline Elton MAYO’s motivational theory

A
  • Hawthorne experiments

- Being paid attention to improves motivation: pressure

89
Q

What did the Hawthorne Experiments find out? (Elton Mayo)

A

Workers were highly responsive to additional attention from their managers and the feeling that their managers actually cared about

90
Q

Outline Fredrick Herzberg motivational theory

A

Employee satisfaction has two dimensions:

Hygiene and motivation

Argued that job enrichment (through motivators) should be a central element in any policy of motivation.

91
Q

Define ‘hygiene factors’ (Herzberg)

A

If they aren’t present, they will lead to staff being unhappy

Improving these won’t motivate

92
Q

Define ‘hygiene factors’ (Herzberg)

A

If they aren’t present, they will lead to staff being unhappy

Improving these won’t motivate

Essential

93
Q

Define ‘job rotation’

A

Movement of employees through a range of jobs in order to increase interest and motivation.

94
Q

Define ‘job enrichment’

A

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.

95
Q

Advantage of ‘job rotation’

A
  • Easier to cover for absent colleagues
  • Increase motivation: eliminates boredom
  • Helps to identify where employees work best
96
Q

Disadvantage of ‘job rotation’

A
  • Reduces productivity / time-consuming (workers unfamiliar with new task)
  • Employees may resist
97
Q

Advantage of ‘job enrichment’

A
  • Workload spread out, less stress for individuals
  • Increased productivity, keeps employees busy
  • Positive morale
  • Increased job satisfaction: lower staff turnover
98
Q

Disadvantage of ‘job enrichment’

A
  • Employees may demand higher pay
  • Increase stress of employees: higher workload- decrease motivation
  • Increased monitoring
99
Q

Define ‘human resources’

A

Everything to do with managing people/staff

100
Q

How does technology affect decision making and activities in relation to human resources?

A
  • Could replace staff
  • Improve communication between staff
  • Offers training
101
Q

Define ‘employee engagement’

A

Degree of commitment shown by employees to their individual work as well as towards the business objective as a whole

102
Q

Define ‘employee involvement’

A

Amount of contribution an employee can make to their working practices and decision making

103
Q

Quantities of involved workers

A
  • Positive
  • Active
  • Seeks opportunities
  • Gets involves
104
Q

Describe the ‘Development Cycle’

A
  1. Talent planning
  2. Recruitment
  3. Orientation
  4. Develop skills
  5. Evaluate performance
  6. Plan ahead / future targets
    * BACK TO BEGINNING*
105
Q

Internal influences on HR objectives

A
  • 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
106
Q

External influences on HR objectives

A
  • Workforce skills and availability
  • Tech changes
  • Market conditions: trends/habits etc
  • Politics
107
Q

Define ‘alignment of values’

A

Keeping everyone in the business works towards objectives

108
Q

What category of objective is ‘alignment of values’ apart of?

a. HR
b. Marketing
c. Operations
d. Financial

A

HR

109
Q

What category of objective is ‘brand loyalty’ apart of?

a. HR
b. Marketing
c. Operations
d. Financial

A

Marketing

110
Q

What category of objective is ‘quality’ apart of?

a. HR
b. Marketing
c. Operations
d. Financial

A

Operations

111
Q

What category of objective is ‘return on investment’ apart of?

a. HR
b. Marketing
c. Operations
d. Financial

A

Financial

112
Q

‘Financial incentives’ that a business may adopt

A
  • Time-based pay
  • Piece-rate pay
  • Commission
  • BONUSES (based on profit made)
  • Employee share ownership program (Waitrose)
113
Q

‘Non-financial incentives’ that a business may adopt

A
  • Job enrichment
  • Job enlargement
  • Job rotation
114
Q

What is the difference between ‘job enlargement’ and ‘job enrichment’?

A

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.

115
Q

Define ‘job enlargement’

A

Horizontal expansion of a job, which means the addition of extra duties and tasks to the same job.

116
Q

N/A

A

N/A

117
Q

Define ‘job design’

A

Number and variety of tasks to be undertaken by an employee

118
Q

What are the three critical psychological states of HR (for employees)

A
  • Meaningfulness of work
  • Responsibility
  • Knowledge (of actual results)
119
Q

Outline ‘personal and work outcomes’

A
  • Higher work motivation
  • High quality work
  • Satisfied at work
  • Lower absenteeism / staff turnover / higher retention rates
120
Q

What is the order of stages a business should look at when analysing how they could improve their HR performance?

A
  1. Five Job Characteristics (H+O)
  2. Three Critical Psychological States
  3. Personal and Work Outcomes
121
Q

Define ‘centralised authority’

A

Maintained by a few at the centre of an organisation

122
Q

Define ‘decentralised authority’

A

Spread across an organisation

123
Q

Define ‘organisational structure/design’

A

System that outlines how certain activities are directed in order to achieve the goals of an organisation.

Takes into account: authority and responsibility

124
Q

Define ‘organisational chart’

A

Diagram that visually conveys a company’s internal structure by detailing the roles, responsibilities and relationships between individuals within a business.

125
Q

Define ‘accountability’

A

The fact or condition of being responsible

126
Q

N/A

A

N/A

127
Q

Define ‘responsibility’

A

Having to deal with something or having control of people

128
Q

What is the difference between ‘span of control’ and ‘chain of command’

A

Span of control concerns the number of people someone in an organisation is responsible for

Chain of command is the level of hierarchy

129
Q

Define ‘chain of command’

A

Levels of hierarchy

130
Q

Advantages of ‘delayering’

A
  • 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
131
Q

Disadvantages of ‘delayering’

A
  • 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
132
Q

Define ‘recruitment’

A

Process of finding people to work for a company

133
Q

Define ‘selection’

A

Methods used to choose the most suitable candidate for a vacancy

134
Q

Why may a business recruit?

A
  • Replace staff that leave (get period of high staff turnover back on track)
  • Acquire new skills
  • Increase demand at a product launch, expansion
135
Q

What is the job process?

A
  1. Vacancy
  2. Job description
  3. Person specification
  4. Advertise
  5. Application process (CV)
  6. Short-listing
  7. Interviews
  8. Selection and appointment
136
Q

Define ‘flexible workforce’

A

A workforce that can perform a variety of different functions

Group of multi-skilled workers

137
Q

Define ‘full-time’ employment

A

Works a minimum number of hours defined by employer

138
Q

Define ‘temporary’ employment

A

Works under a fixed-term contract

139
Q

Define ‘permanent’ employment

A
  • Full-time
  • Salary
  • No end date
140
Q

Define ‘fixed terms’ employment

A

Employment contract that ends on a specified date or on completion of a particular task/project.

141
Q

Define ‘seasonal’ employment

A

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.

142
Q

Define and outline the shamrock organisational model

A

Leaf shape which is symbolic of an organisation with three types of workforce

Start from left:

  1. Contract
  2. Core
  3. Peripheral
143
Q

Define ‘downsizing’

A

Permanent reduction of a company’s labour force through the elimination of unproductive workers or divisions.

Usually used for failing businesses

144
Q

Advantages of a ‘flexible workforce’

A
  • Reduce costs (can go remote)
  • Increase efficiency (can do anything)
  • Seasonal: only needed when a business needs them
145
Q

Disadvantages of a ‘flexible workforce’

A
  • 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
146
Q

Define ‘trade union’

A

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.

147
Q

What are the three main types of trade union?

A
  • Craft
  • Industrial
  • General
148
Q

Define a ‘craft’ trade union

A

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

149
Q

Define a ‘industrial’ trade union

A

Combines all workers, both skilled and unskilled, who are employed in a particular industry or employer

e.g. THE TECHNOLOGY INDUSTRY

150
Q

Difference between ‘craft’ and ‘industrial’ unions

A

Craft concerns a particular skill

Industrial concerns both skill and unskilled workers in an industry

151
Q

Define a ‘industry’ trade union

A

Combines all workers, both skilled and unskilled, who are employed in a particular industry

e.g. TECHNOLOGY INDUSTRY

152
Q

Define a ‘general’ trade union

A

NOT SPECIFIC

Represents workers from all industries and companies

153
Q

What do trade unions do to help workers?

A
  • Offer advice to members that have problems at work
  • Represent members in discussions with employers
  • Helps improve wages and working conditions
154
Q

What does it mean if an employer ‘recognises’ a Trade Union?

A

Once an employer has agreed to negotiate with it on pay and working conditions on behalf of a particular group of workers.

Formal agreement

155
Q

Benefits of Trade Unions for employers

A
  • 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
156
Q

Benefits of Trade Unions for employees

A
  • Better working conditions
  • Training for new skills
  • Sense of community/belonging
  • Advice on your legal employment rights
  • Advice on problems at work
157
Q

Define an ‘industrial dispute’

A

Conflict or a difference in opinion between management and workers regarding issues in the workplace

158
Q

Define ‘industrial action’

A

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

159
Q

What are the four forms of industrial action?

A
  • Strike
  • Overtime ban
  • Work-to-rule
  • Go-slow
160
Q

Why is industrial action effective?

A

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

161
Q

Define a ‘strike’

A

Work stoppage

Caused by mass refusal of employees to work

Often used to pressure governments to change policies

162
Q

N/A

A

N/A

163
Q

Define a ‘overtime-ban’ (industrial action)

A
  • Workers refuse to engage in overtime work (any work that falls outside of contracted hours)
164
Q

Define ‘work-to-rule’ (industrial action)

A
  • 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
165
Q

Define ‘go-slow’ (industrial action)

A
  • 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
166
Q

Advantages of ‘strikes’ (industrial action)

A
  • Employee empowerment

-

167
Q

Disadvantages of ‘strikes’ (industrial action)

A

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
168
Q

Advantages of ‘work-to-rule’ (industrial action)

A
  • Less disruptive than a strike, less risk of replacement and unpaid work
169
Q

Disadvantages of ‘work-to-rule’ (industrial action)

A
  • May be ineffective if business doesn’t require anymore than the minimum anyway
170
Q

Advantages of ‘go-slow’ (industrial action)

A
  • Less disruptive than a strike, less risk of replacement and unpaid work
171
Q

Disadvantages of ‘overtime ban’ (industrial action)

A
  • Business may not require overtime anyway, ineffective
172
Q

What are the problems of industrial action for the employer and the employee?

A

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

173
Q

Define a ‘Single Union Agreement’

A

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

174
Q

Define ‘no-strike agreement’ (trade unions)

A

An agreement that states that employees will not strike

175
Q

N/A

A

N/A

176
Q

Define ‘ACAS’ and its role (trade unions)

A

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
177
Q

Define ‘conciliation’ (ACAS - trade unions)

A

Action of mediating between two disputing people or groups

178
Q

Define ‘arbitration’ (ACAS - trade unions)

A

Procedure of a dispute being submitted to an arbitrator who makes a binding decision on dispute

Think… a judge

179
Q

Define ‘mediation’ (ACAS - trade unions)

A

Process where parties meet with a mutually selected neutral person who assits them in the negotiation of differences

180
Q

Define ‘union density’ / ‘trade union density’

A

Ratio of wage and salary earners that are trade union members to the total number of wage and salary earners in the economy

181
Q

Contextual examples of strikes (industrial actions of trade unions)

A
  • 1972: Miners strike
  • 2019: Heathrow strike
  • 1982: British rails strike - threats of privatisation
182
Q

Define ‘employee representation’

A

Systems put in place to aid communication between employers and employees

Gives a voice to employees

One-to-one discussion

183
Q

Examples of ‘employee representation’

A
  • Trade Unions

- Work councils

184
Q

Key objectives of trade unions

A
  • Securing jobs
  • Maximising pay
  • Ensuring safe and acceptable conditions
  • Fair treatment of members by employers
185
Q

Unions can work with employees and employers to…

A
  • Enhance business performance
  • Improve international competitiveness
  • Implement change
  • Lower labour turnover
  • Increase motivation
186
Q

Define a ‘work council’

A

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

187
Q

What is the criteria to acquiring a work council?

A
  • Business must have over 50 employees
  • Representatives must be elected
  • The council should have one representative per 50 employees
188
Q

What is ‘human resources’ ?

A

Anything to do with staff / people

189
Q

Examples of human resource analysis

A
  • Labour productivity
  • Labour turnover
  • Labour retention
  • Assessment of staff skills and qualifications
  • Staff morale
  • HR training and recruitment

Business A level (13 decks)

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