3.6 human resources Flashcards
1
Q
human resources
A
the function of a business that is concerned with ensuring that the organisation has a workforce who are able to do their job effectively in order to meet the needs of the business and its customers
human resources are concerned with anything related to the people within the organisation
2
Q
effectively managing human resources allows a business to
A
control costs of production (through controlling labour costs)
add value through expertise and customer service
ensufre employees are driven and motivated
identify and develop leaders
adapt to the internal and external pressures on the business
3
Q
what are the two competing perspectives on HR
A
hard HRM
soft HRM
4
Q
hard HRM
A
this refers to managers who see employees as just another resource in the business that needs to be utilised efficiently and effectively
5
Q
soft HRM
A
this refers to managers who see people as the most valuable asset a business has
therefore they need to be nurtured and developed to achieve their potential
6
Q
human resource objectives
A
employee engagement and involvement
alignment of values
talent development
diversity
number skills and location of employees
training
labour productivity
7
Q
employee engagement and involvement
A
ensuring employees feel involved values and part of the organisation and maximising intellectual input and effort from the workforce
8
Q
alignment of values
A
ensuring the values of the organisation are embraced by all employees
9
Q
talent development
A
ensuring talent in the organisation is developed and promoted
10
Q
diversity
A
such as ethnicity gender disability religion or sexuality
11
Q
number skills and location of employees
A
ensuring the business has the right number of employees with the correct skills in the right places
12
Q
training
A
ensuring the workforce has the right training to do their jobs properly considering the changing nature of business
13
Q
labour productivity
A
maximising output from its workers
14
Q
influences on human resource objectives
A
legal/political factors
social factors
technological factors
make-up of the current workforce
economic factors
competitive environment
attitudes and beliefs of managers
the product
15
Q
how do legal/political factors influence human resource objectives
A
eg health and safety legislation and industry regulation may influence job design
16
Q
how do social factors influence human resource objectives
A
employee values must match that of the consumer (ethical consumers)
16
Q
how do technological factors influence human resource objectives
A
employees might require training to use new technologies or processes
17
Q
how does make up of the current workforce influence human resource objectives
A
an ageing workforce may necessitate the need for training of new employees and dissemination of expert knowledge
18
Q
how do economic factors influence human resource objectives
A
it may be difficult to employ the right people when there is a lack of skills in the labour market
19
Q
how does the competitive environment influence human resource objectives
A
a business may need to move fast and offer competitive remuneration packages in order to attract the best employees
20
Q
how do attitudes and beliefs of managers influence on human resource objectives
A
the extent to which the business adopts a ‘soft’ or ‘hard’ approach to HRM
21
Q
how does the product influence human resource objectives
A
labour intensive production will often require a highly skilled workforce
22
Q
what calculations can managers use to interpret and analyse the performance of human resources within their business
A
labour productivity
unit labour costs
employee costs as a % of revenue
labour turnover
labour retention
23
Q
what can understanding human resource performance help managers to do
A
make decisions about job design, employee numbers, rewards and remuneration and human resource policies
24
labour productivity
a key measure of employee performance
labour productivity interprets the output per worker over a given time period
labour productivity directly affects profit margins and decisions around pricing
25
labour productivity calculation
total output per time period divided by number of employees at work
26
disadvantages of labour productivity
doesnt take into account wage rates- a key factor in employees performance
doesnt take into account technology used in the production process
labour productivity may be affected by many other factors- such as internal disruptions to production or the nature of the task or product being produced which also influence this calculation
27
unit labour costs
this measures the labour costs per unit of output produced
the calculation takes into account non-wage costs such as national insurance and therefore considers the full cost of labour compared to output
28
unit labour costs formula
labour costs divided by units of output
29
interpreting labour productivity
generally the higher labour productivity the better the business is performimg
30
interpreting unit labour costs
lower the unit costs the bettter
unit labour costs have an inverse relationship with labour productivity they should go down as labour productivity increases
however
labour costs will rise if employees recieve training but this should ncrease labour productivity in the long term
lowering unit labour costs will be ineffective if other business costs rise
31
employee costs as a % of revenue
directly compares employee costs against the busiess's revenue or turnover
this is a particularly important measure for businesses where labour costs are a high % of total costs- eg in service sector businesses
32
employee costs as a % of revenue calculation
employee costs divided by sales turnover x 100
33
what factors can employee costs as a % of revenue be influenced by
higher labour productivity can lead to higher sales revenue thus lowering the % of labour costs compared to revenue
any increase in wages/salaries must have an impact on productivity otherwise the % labour costs will rise
human resources capacity must be maximised in order to lower the %
34
labour turnover and retention
important measure as the number of employees leaving a company can give an insight into a number of issues relating to happiness motivation and the impact of this on overall labour costs
35
labour turnover calculation
number of staff leaving in a year divided by average number of staff
36
labour retention calculation
average number of staff employed for one year divided by average number of staff
37
interpreting labour turnover and retention
with labour turnover comes increased costs of recruitment and training
a higher turnover or low retention figure could indicate that employees are not happy with their jobs
this might be used as a key performance indicator as businesses try to retain the most talented workers within their company- having the best employees can be a competitive advantage
some industries will expect high rates of labour turnover- eg holdiay companies due to contracts being seasonal
high rates of labour turnover ,ay be encouraged as a business goes through a period of change
38
what will the human resource measures inform for demand for labour
number of employees
skills required
new roles required
labour cost implication
39
what will human resource measures inform for supply of labour
review of existing workforce
forecast staff leaving in next year
changes required to current working practices
40
what will human resource measures inform for human plan
recruitment
training
reorganisation
redundancies
remuneration
41
job design
refers to the contents of a job in terms of its duties and responsibilities, the methods to be used in carrying out the job and the relationship between the job holder and their superior
42
influences on job design
opportunity for flexible working practices (contracts and location)
motivation of employees
legal requirements including health and safety
skills of the workforce- matching job design to utilise employees skill sets
technology- new technology will influence how people work
focus on customer needs- especially important in job design for service sector workers
43
the hackman and oldham job charachteristics model
model helps managers understand the different dimensions (core job dimensions) which contribute to theoverall job design and how these impact the psychological state of their employees
managers should design jobs so that they maximise these three psychological states in order to achieve the desired outcomes
44
key aspects of job design
job enlargement and rotation
job enrichment
empowerment
45
job enlargement and rotation
adds variety to the job
means employees understand more aspects of the organisation and how jobs fit together
means employees are able to cover for each other
46
job enrichment
adds more challenge and complexity to the job
promotes opportunities and skills for promotion
gives employees more responsibility
supports on the job training
47
empowerment
gives employees more control over their working lives
means employees are able to make their own decisions on how best to achieve the necessary outcomes
brings new ideas and innovation into the company
enables employees have autonomy to solve problems how they like
48
organisational design
a key factor when managing a business as it determines how a business responds to external factors, how people within the business relate to one another and how the company adapts to change
49
key factors in organisational design
authority
levels of hierarchy
span of control
decision making process (centralisation vs decentralisation)
delegation
50
delegation
the process of passing down authority through the organisation
delegation can be used to lighten the workload of key personnel as the organisation grows and can be a key aspect of job design as it leads to job enrichment for junior members of staff
delegation may not be suitable in certain situations where junior employees dont have the skills or in a crisis situation
51
what are the two things involved in organisation hierarchy
chain of command
span of control
52
chain of command
refers to the levels in the hierarchy
organisations with many levels are referred to as being 'tall' organisations
organisations naturally increase the levels of the hierarchy as they grow
53
span of control
refers to the number of employees that a manager is directly responsible for
an organisation with a wide span of control will encourage delegation and is referred to as having a 'flat' hierarchy
54
what are the two types of organisational structure
tall
flat
55
tall organisational structure
generally have many levels in the chain of command and there may be a narrow span of control
organisations tend to add levels to their hierarchy as they grow
more opportunities for promotion
more control of employees
communication takes longer
less delegation and empowerment
56
flat organisational structure
charachterised by few levels in the chain of command
there will be few middle managers but the span of control for managers at the top of the structure could be wide
faster decision making
more flexible
broader job roles
less control and fewer opportunities ffor promotion
57
centralisation
refers to a decision making process whereby the majority of decisions are led by senior managers
58
key points of centralisation
works well where standardisation is required
appropriate for situations where managers have knowledge and workers are low skilled
suited to authoritarian leadership styles
more suitable in times of crisis
effective at cost minimisation and achieving economies of scale
59
decentralisation
a decision making process whereby the majority of decisions are delegated to managers in charge of regions, functions and product categories
60
key points of decentralisation
effective where local teams are best placed to make decisions to meet the customer needs
appropriate where business is spread over a wide geographic area and local trends/needs are important
effective at reducing workload of senior managers and promoting autonomy and the skills of subordinates
allows for flexible working conditions and supports job enrichment
61
the value of changing job design
unit labour costs- such as making use of underutilised workers
boost motivation and morale- happier workers leads to greater productivity and retention
employer brand- developing the reputation of the company as a good place to work
customer needs- such as designing jobs that revolve around meeting customer expectations and excellent service
62
the value of changing organisation design
boost motivation and morale- happier workers leads to greater productivity and retention
competitiveness- eg responding faster than competitors
delayering- removing unessecary jobs to improve efficiency and communication
employer brand- developing the reputation of the company as a good place to work
63
what factors should be considered when making any decisions or analysing the organisation
financial position/strength
skill of the workforce
nature of the job/product
morale/motivation of staff
64
human resource flow
refers to the movement of employees through an organisation
there are three specific areas of the flow that must be managed effectively for the business to achieve its human resource objectives
65
what is the first HR flow
human resource inflow
HR plans
recruitment and selection and induction
66
what is involved in the first HR flow
human resource plan- an analysis and plan to match current skills with the future demand of the organisation
recruitment process- alternatively firms may headhunt the best employees
normally managers and people with specialist skills
recruitment process- is expensive but worth it if the organisation is able to attract, evaluate and appoint employees that add value to the organisation
67
what is the second HR flow
internal human flow
training
redeployment
job design
68
what is involved in the second HR flow
training- can improve employee skills adding value and competitiveness
it can also support employee recruitment and retention
training can also be expensive and its impact is not always quantifiable
a business has to decide if these funds would be better spent elsewhere
employees may leave once trained
redeployment- moving employees to new roles teams or functions within the organisation
this should maximise productivity efficiency and capacity and meet employee needs relating to promotion and new skills
69
what is the third HR flow
human resource outflow
redundancies
retirements
dismissals
70
what is involved in the third HR flow
redundancy- may occur when a role is no longer required by the organisation or in order to cut back on costs (downsize)
dismissal- must be conducted effectively and sensitively to ensure incompetent employees arent costing the business financially and damaging its reputation
71
steps of recruitment process
decision is made as to whether recruitment is necessary
job description and person specification are prepared
plans are made on how and when to advertise
applicants are short listed
references are requested
candidates are invited for interviews and selection tests
the successful candidate is offered the job and signs the contract of employment
72
motivation
refers to the willingness to work and achieve a given target or goal
73
employee engagement
involves the contrubution of an employee makes towards their work, including intellectual effort and posotive emotions
74
what shows the extent to which employees are motivated by financial incentives or social intercation
the scientific management tool ( employees driven by financial incentives)
the human relations school (employees driven by the need to meet social needs)
75
Frederick Taylors theory on motivation
focus on efficiency and improved competitiveness
people are motivated solely by money
incentivise work with financial rewards
improve efficiency through standardisation and the division of labour
employees are given elemnatry training and clear instructions on how to complete a task
the application of Taylor's principles reduces the need for as many workers as productivity is raised
76
what was Taylors theory based on
work study and improving productivity and efficiency of the workforce
77
elton mayos motivation theory
informal working groups are recognised as having a posotive influence on productivity
workers arent simply motivated by financial incentives
social interactionsoutside of working hours are important
efficiency can be achieved through teams and teamworking
focus on the needs of the employees rather than the needs of the organisation
78
what is elton mayos theory based on
the fact that employees have social needs and these must be fulfilled through their work
79
mazlows hierarchy of needs
people are driven to achieve personal needs
maslow identified five levels: people are motivated to achieve these in order starting with physiological needs
basic needs (physiological and security) refer to those linked to survivial
higher order needs (social, esteem, self actualisation) refer to the needs people have within a social environment)
a person cant move up the hierarchy without first fulfilling the needs below
businesses can motivate workers by giving them the opportunity to satisfy these needs at work
80
what are the 5 areas in maslows hierarchy of needs
self actualization
self esteem
love and belonging
safety and security
physiological needs
81
self actualization
morality
creativity
spontaneity
acceptance
experience
purpose
meaning
inner portal
82
self esteem
confidence
achievement
respect of others
the need to be a unique individual
83
love and belonging
friendship
family
intimacy
sense of connection
84
safety and security
healh
employment
property
family
social stability
85
physiological needs
breathing
food
water
shelter
clothing
sleep
86
what did Frederick Herzbersg theory identify
that hygeine factors are important in so far as the satisfactory presence of them will not lead to the dissatisfaction of employees
however hygeine factors do not motivate employees
only those identified as motivators
87
two areas in herzbergs theory
factors leading to disatisfaction
factors leading to satisfaction
88
factors leading to disatisfaction
poor pay
poor compensation
poor working conditions
lack of promotions
poor benefits offering
lack of job security
when these factors are optimal, job dissatisfacton will be eliminated
however these factors dont increase job satisfaction
89
factors leading to satisfaction
good leadership practices
good manager relationship
clear direction and support
feedback and support
personal growth
advancement
recognition
when these factors are optimal, job satisfaction will be increased
90
who created motivation theories
taylor
mayo
maslow
herzberg
91
value of taylors motivation theory
altho criticised as being against the well being of the workforce, taylors focus on productivity and efficiency is still extremly important today
92
the value of mayos motivation theory
any job design and rewards package should consider the social dimension of work and ensure human interaction is designed to create the greatest benefit for the workers and the business
93
the value of maslows motivation theory
brings together other theories and encourages managers ti provide the workforce with opportunities to fulfill their needs
it considers both financial and non financial incentives of work
94
the value of herzbergs motivation theory
considers the dissatisfaction of the workforce and what employers must do to prevent this
employers must secure the hygeine factors before they will be able to develop means of motivaing employees
95
motivational theory
motivational theory doesnt provide managers with the answers as to how they can motivate their employees
however together they do provide a useful framework that managers can use to review and evaluate organisational policies, job design, pay, organisational structure and the way they communicate with employees
96
financial methods of motivation
salary schemes
commision
piece rate
performance related pay (PRP)
profit sharing/bonus schemes
97
salary schemes
a set income based on the job role and calculated as an annual fee
98
commision
a bonus paid based on achieving a sales target
99
piece rate
payment based on the number of units of output produced
100
performance related pay (PRP)
a salary or bonus scheme linked to job related targets
targets and performance may be reviewed every 6 months or annually
101
profit sharing/bonus schemes
distributing a % of net profit across the workforce
102
benefits of salary schemes
easily comparible- appropriate where nature of work is not time specific or hard to quantify
103
benefits of commision
appropriate for sales jobs
incentive to increase sales revenue for the business
104
benefits of piece rate
appropriate for production jobs
incentive to increase output (units)
105
benefits of performance related pay
links pay to measurable targets specific to the nature of the job
encourages review of employee performance
106
benefits of profit sharing/bonus schemes
reward linked to the overall success of the company
107
limitations of salary schemes
not linked to performance
little incentive to increase productivity
108
limitations of commission
focus taken away from other areas of the job such as customer service
little attention to aspects of job that do not directly impact commission earned
109
limitations of piece rate
employees may ignore factors such as quality
110
limitations of performance related pay
can be expensive if large proportion of workforce achieve their targets- some areas of performance can also be very subjective
difficult to ensure PRP is fair across the organisation
111
limitations of profit sharing/bonus schemes
depends on the profitability of the business
112
what did maslow say about financial methods of motivation
financial reward will satisfy the basic needs and may boost self esteem
it will not satisf the higher order needs
113
what did herzberg say about financial methods of motivation
financial incentives are a hygiene factor and if satisfactory will only prevent dissatisfaction
114
what did taylor say about financial methods of motivation
the rational man is driven by financial reward
115
what did mayo say about financial methods of motivation
financial incentives are irrelevant if an employees social needs are not met
116
non financial ways for managers to motivate their employees
job design
appraisal system
teamworking
employee recognition
117
job design
designing the role, tasks and responsibilities in a way that maximise employee motivation
118
appraisal system
a system designed to review employee performance and recognise achievement- may be linked to PRP
119
teamworking
organising the workforce into teams in order to benefit from the social aspects of motivation
120
employee recognition
eg employee of the month
121
benefis of job design
improving job design can create new challenges and give employees autonomy over their workforce
122
benefitsof an appraisal system
allows a business to recognise the achievements of employees and provides posotive feedback when employees meet their targets
appraisal may create opportunities for promotion and meeting the needs of employees
123
benefits of teamworking
meets employees social needs and encourages a sense of belonging
helps employees develop a connection to the organisation through their colleagues
124
benefits of employee recognition
recognises achievement, encourages posotive competition and bosts self esteem
125
limitations of job design
remedial/monotonous tasks are still required in most jobs
there will always be aspects that employees dont like
126
limitations of appraisal system
time devoted to appraisal takes employees away from doing the actual job
127
limitations of teamworking
individual performance is harder to identify in a team situation
ineffective workers may not be identified
128
limitations of employee recognition
only the best employees usually benefit
129
what did maslow say about non financial methods of motivation
non financial incentives are linked to achieving the higher order needs of love and belonging, self esteem and self actualisation
130
what did herzberg say about non financial methods of motivation
non financial incentives are the key to motivating the workforce
131
what did taylor say about non financial methods of motivation
non financial incentive reduce productivity and create inefficiencies within the workforce
132
what did mayo say about non financial methods of motivation
non financial incentives help amployees achieve their social needs
133
what factors does the method of motivation used depend on
costs
skill level of employees
nature of the organsation or work
skill level of managers
atttudes
134
how do costs affect the method of motivation used
if profits are low a business will be unable to offer bonuses
training and investment in job design may also have to be cut
135
how does skill level of employees affect the method of motivation used
a more skilled workforce may require delegation and job enrichment
136
how does nature of the organisation or work affect the method of motivation used
creative industries may lean towards empowerment and enrichment in order to motivate their workforce
a competitive sales environment may only reqire an effective commision scheme
137
how does the skill level of managers affect the method of motivation used
the skill and training of managers will determine the variety and effectiveness of motivation methods
managers trained in motivational theory may apply these concepts more effectively
138
how do attitudes affect methods of motivation used
whether managers have a 'soft' or 'hard' approach to HRM will determine the methods used
139
benefits of a motivated workforce
customer service
labour productivity
employee engagement
product quality
good relationships with managers
140
effects of a unmotivated workforce
absenteeism
labour turnover
labour cost per unit
recruitment costs
141
effect of developing and improving good employer-employee relations
can be done through effective communication and can lead to improved performance of an organisation and an enhanced reputation as an employer
142
employee representation
involves collective representation of employees
143
what are the three ways employees can find representation and have their voice heard
trade unions
work councils
employee committees
144
trade unions
an organisation established to protect and improve the economic and working conditions of workers, eg the national union of teachers
145
work councils
a forum within a business where workers and managers meet to discuss issues relating to conditions, pay and training
146
employee committees
a group of employees meeting together to focus on specific issues within the workforce
unlike a works council, this may not be recognised or attended by managers
147
advantages of trade unions
focus on negotiations with employers through collective bargaining
focus on pay and working conditions
represent members at industrial tribunals and give workers advice on employment issues
prominent in public sector
substantial decline of trade union membership over the past 20 years
148
advantages of works councils
members elected from the workforce by the workforce
builds cooperation with managers
allows the voice of the workforce to be heard on a regular basis without trade union representation
involves employees in key business decisions such as restructuring or expansion
149
benefits of employee committees
informal grouos set up by workers to focus on a certain aspect of work
typically focus on issues such as employee social events, safety and working conditions
employee committees may influence decisions made at works councils
150
influences on employee representation
the nature of the work carried out by employees
the leadership and management style
the corporate objectives of the business and mission satement
employment legilsation
the history of the business
151
how does the nature of the work carried out be employees influence employee representation
low skilled workers are less likely to have a significant input into decision making
152
how does the leadership and management style of the boss influence employee representation
autocratic managers may want tp limit the input of employees
153
how does the corporate objectives of the business and mission statement influence employee representationm
a business in crisis may want to make quick decisions and avoid consultation with employees
154
how does employment legislation influence employee representation
eg the eurpoean union information aand consultation of employees (ICE) dictates that employees within EU countries must be consulted on certain aspects of work and employment
155
how does the history of the business influence employee representation
what has happened in the past
156
disseminating information
electronic mail can speed up communication and allow the whole workforce to be communicated with easily
social media has become very effective at sharing information on events, successes and building team spirit if used appropriately
intranets are effective at storing and organising important company information and helping employees acess it
157
barriers to efective communication
no opportunity for feedback (two way communication)
conflicting systems-when two businesses merge
no time given to consult/inform employees
misinterpretation- top down approach to communication
ineffective meeting time- meetings are not purposeful or productive
158
avoiding conflict as a way of managing employer-employee relations
no strike and single union agreements
advisory concilation and arbitration service (ACAS)
effective employee communication
developing a highly motivated workforce
159
resolving conflict as a way of managing employer-employee relations
arbitration- disputes resolution bound by the arbitrators decision
concilation- negotiations facilitated by a third party
employment tribals
160
benefits of good employer employee relations
develops a strong employer brand- TGI friday was reviewed in 2015 as the 'best big company to work for the uk' through the best companies survey
promotes employee engagement
improves motivation and therefore labour productivity
reduces costs such as legal fees
improves competitiveness- employees are a key asset for the business
161
how are employee emploer relations closely linked to theories of employee motivation
if an organisation takes effective measures to motivate its employees then this will go a long way to reducing the chance of sidputes
disputes are also less likely to occur in businesses where employees are involved in decision makig and this relates to management styles and job design
162
