3.6 human resources Flashcards
1
Q
define human resources
A
the design, implementation and maintenance of strategies to manage people for optimum business performance to the customer
2
Q
state the key HR objectives
A
- diversity
- training
- talent development
- employee engagement
- number, skills + location of employees
- alignment of employee and employer values
3
Q
define soft HRM
A
employees are treated as individuals and their needs are planned accordingly
4
Q
define hard HRM
A
treats employees simply as a resource of the business
5
Q
define features of hard HRM
A
- short-term changes in employee numbers
- minimal communication, from the top down
- little empowerment or delegation
- tall organisation structures
- suits autocratic leadership style
6
Q
define features of soft HRM
A
- strategic focus on longer-term workforce planning
- regular two-way communication
- competitive pay structure, with suitable performance-related rewards
- employees are empowered + encouraged to seek delegation
- flatter organisational structures
- suits democratic leadership style
7
Q
define employee engagement
A
the extent to which employees feel that they can generally influence the day-to-day running of an organisation, and the outcomes achieve
8
Q
define talent development
A
helping the staff in a business, realise their full potential, so they maximise their productivity and are able to improve their contribution to achievement of an organisations objectives
9
Q
define training
A
ensuring that employees have the skills necessary to be successful in the job roles
- induction training
- on & off the job training
10
Q
define diversity
A
discrimination in terms of gender, race, age, sexual orientation or religion is illegal
many organisations are finding a more diverse workforce = them to be better meet the needs of customers
11
Q
define alignment of employee + employer values
A
helping employees to understand the values of business and the business to affect the value is held by employees
12
Q
define number, skills and location of employees
A
- labour turnover
- staff retention
- recruitment targets
- training budgets
13
Q
define the internal influences on HR
A
- corporate objectives
- operational strategies
- marketing strategies
- financial strategies
14
Q
define the external influences on HR
A
- market changes
- economic changes
- technological changes
- social changes
- political and legal changes
15
Q
define operational strategies
A
introduction of new IT or other systems and processes may require new staff training, fewer staff
16
Q
define financial strategies
A
a decision to reduce cost by outsourcing training would result in changes to training programme
17
Q
define market changes
A
a loss of market share to a competitor may require a change in management or job losses to improve competitiveness
18
Q
define technological changes
A
the rapid growth of social networking may require changes to the way the business communicates with employees and customers
19
Q
state two advantages of hard HRM
A
- enables quicker decision making
- useful when management have expertise
20
Q
state two disadvantages of HRM
A
- workers can be demotivated
- does not utilise employee potential
21
Q
state two advantages of soft HRM
A
- allows for creativity and innovation
- useful when employees are experienced
22
Q
state two disadvantages of soft HRM
A
- decision making can be time-consuming
- high cost to train and develop staff
23
Q
Define labour turnover
A
A measure of the rate at which employees are leaving an organisation
24
Q
Causes of high labour turnover ?
A
- types of business e.g seasonal staff turnover/flexible working practises
- pay and other rewards
- working conditions
- lack of opportunities for promotion
25
Consequences of high staff turnover?
- higher costs e.g recruitment + training costs
- increased pressure on remaining staff = may cause demotivation
- disruption to production/productivity
26
How to improve labour turnover ?
- effective recruitment + training
- provide competitive pay + other incentives
- job enrichment
- reward staff loyalty e.g extra holiday
27
Define labour productivity
Measure of output per worker in volume (units) or value (£)
28
What factors influence labour productivity?
- extent + quality of fixed assets i.e equipment, IT systems
- skills, ability and motivation of work force
- production methods
29
How can labour productivity be improved ?
- measure performance and set clear targets
- automation (invest in capital equipment)
- invest in employee training
- incentives/rewards
30
What are potential problems when trying to increase labour productivity ?
- potential “trade-off” with quality - higher output must still be of the right quality
- potential for employee resistance
- employees may demand higher pay for their improved productivity
31
Define labour cost per unit
Average cost of labour per unit of output produced
32
What is the formula for labour cost per unit ?
Total labour costs / total output
33
What is employee costs as percentage of turnover ?
The % of an organisations sales venue that is spent on the remuneration of staff
34
Formula for employee costs as percentage of turnover ?
Employee cost / salves revenue x 100
35
Employee costs as percentage of turnover:
What does a high/rising figure indicate ?
That labour productivity is falling
36
Employee costs as percentage of turnover:
What does a low/falling figure may indicate ?
That staff levels are low and customer service may suffer
37
Define organisational structure
Illustrates how employees and management are organised within a business
38
Define functional organisational structure
Where organisations are divided into specialist departments
39
Advantage and disadvantage of functional organisational structure
Advantage = all of the experts are gathered together in one place, helping implement a strategy
Disadvantage = poor communication between the functions, then there is unlikely to be shared best practice
40
Define regional organisational structure
Where firms operate in distinct areas of a country or internationally
41
Advantage and disadvantage of regional organisational structure?
Advantage = allowed for localised approach which meets customer needs
Disadvantage = decision making can be decentralised which will add to the overall cost
42
Define product based organisational structure
Where multi-product firms produce a wide range of different goods
43
Advantage and disadvantage of product based organisational structure?
Advantage = specialise upon one specific product range which encourages innovation
Disadvantage = inefficient with duplication of certain key roles e.g a marketing department for each division
44
Define matrix organisational structure
Product and functional based: dual reporting
45
Advantage and disadvantage of matrix organisational structure ?
Advantage = builds positive relationships and promotes team working
Disadvantage = conflict between project and functional managers
46
What are the 4 influences on organisational design ?
- authority
- span of control
- hierarchy
- delegation
47
Define authority
The power/right to give orders and make decisions
48
Define span of control
The number of employees (subordinates) managed directly by an individual line manager
49
Define hierarchy
The number of layers in an organisation
50
Define delegation
Passing down authority to junior employees
51
Define tall organisational structure
- where there are many levels of hierarchy and many job roles
- easier to delegate
- narrower spans of control
52
Define flat organisational structure
- where there are few or no levels of middle management between staff and executives
- harder to delegate
- usually wider spans of control
53
Advantages of tall organisational structure ?
- excellent progression opportunities
- mangers have tight control over employees
54
Disadvantages of tall organisational structures ?
slow communication + slow decision making due to a long chain of command
55
Advantages of flat organisational structures?
- less layers = better communication
- more responsibility for employees, leading to motivation
56
Disadvantages of flat organisational structure?
- lack of progression opportunities
- higher work load for managers
57
Define centralised
Where decision making is made at the top of the hierarchy
58
Define decentralised
Where decision making is spread throughout the hierarchy
59
Advantages of centralised?
- easier to coordinate and control from the centre
- economies of scales and overhead savings easier to achieve
60
Disadvantages of centralised ?
- a standardised approach may not work in all business locations
- lack of authority down the hierarchy may reduce manager motivation
61
Advantages of decentralised?
- better able to respond to local circumstances
- improved level of customer service
62
Disadvantages of decentralised ?
- harder to ensure consistent practices and policies at each location
- harder to achieve tight financial control - risk of cost overruns
63
define human resource flow
the process of staff joining, developing and then the way they leave the business
64
what processes fall under "inflow"?
recruitment
65
what processes fall under "internal"?
- induction
- training
- promotions
- appraisal
66
what processes fall under "outflow"?
- redundancy
- retirement
- dismissal
67
what is a HR plan?
anticipating the future needs of the business and organising the supply of people and skills that meet future requirement
68
factors that effect HR plan?
- staff current skills
- future labour needs
- change in objectives
- age of staff
- Labour turnover data
69
state the 6 recruitment processes?
1. identify job vacancy
2. prepare job description + person specification
3. create job advert
4. shortlist applicants
5. interviews
6. job offer
70
define "identify job vacancy"
compare a business's expected future needs for employees with the existing workforce
71
define "prepare job description + person specification"
a job description explains the duties and responsibilities for a specific job
a person specification describes the skills, knowledge and experience needed by an individual to complete the job
72
define "create job advert"
communicate with potential applicants the details of the job and the type of person the business is looking to recruit
73
define "shortlist applicants"
the process of selecting the most suitable applicants from those who have applied for the job
74
recruitment process:
define job description
a document outlining the roles and responsibilities that will be undertaken when doing a job
75
recruitment process:
define person specification
a document outlining the skills and qualifications needed to do a job
76
recruitment process:
define application form
a form containing questions that the applicant must answer in writing and submit to the business in order to apply for a job
77
recruitment process:
define cv
a short document sent by candidates to potential employers that describes a person's qualifications and previous experience
78
recruitment process:
define shortlisting
the process of reviewing all the written applications received and deciding which of the applicants will be invited to the next step of the recruitment process
79
recruitment process:
define interview
a meeting between the applicant and the potential employer in which the applicant answers questions to assess their suitability for a job
80
recruitment process:
define aptitude test
an assessment that judges the ability of someone to carry out specific duties. e.g skills tests, numeracy tests + literacy tests
81
recruitment process:
define group test
an assessment that requires applicants to work with other people to solve a problem
82
recruitment process:
define reference
a document written by a former employer, or someone who knows the applicant well, that describes the applicants sustainability to do a job
83
define internal recruitment
when the business looks to fill the vacancy from within its existing workforce i.e via company noticeboards
84
define external recruitment
when the business looks to fill the vacancy from any suitable applicant outside the business i.e via newspaper, job centre
85
Define benefits of recruiting the right people
- Maintain business reputation through higher quality; customer loyalty; attracting new customers
- increase labour retention, keep workers so that they become skilled and experienced employees
- maintain and improve productivity
86
Advantages of internal recruitment
Cheaper and quicker to recruit
Provides opportunities for promotion within the business - can be motivating
Business already knows the strengths and weaknesses of candidates
87
Disadvantages of internal recruitment
Limits the number of potential applicants
no new ideas can be introduced from outside may
cause resentment amongst candidates, not appointed
88
Advantages of external recruitment
Outside people bringing new ideas
larger pool of workers from which to find the best candidate
people have a wider range of experience
89
Disadvantages of external recruitment
Longer process
more expensive process due to advertising and interviews required
selection process may not be effective enough to reveal the best candidate
90
Define training
Training provides workers with knowledge and skills which enable them to perform their jobs more effectively
91
Benefits of training ?
- increased productivity
- increase worker retention
- higher customer satisfaction
92
Define induction training
Training to introduce a new worker to the business, place of work and their fellow workers as well as their job
93
What could be included in induction programme ?
- meeting other employees
- health and safety
- company rules
- pension schemes
94
Define on the job training
Where an employee receives training whilst remaining in the workplace
95
Define off the job training
Training that takes place outside of the workforce at an external organisation
96
Advantages of off the job training
(To the business)
Experts may provide the training, improving the quality
If mistakes are made it usually won’t impact the workplace
97
Disadvantages of off the job training
(To the business)
Lost production and disruption to workplace
Usually more expensive because of fees, travel and accommodation costs
98
Advantages of off the job training
(To the worker)
Employees gain transferable qualifications
Workers enjoy change in environment
99
Disadvantages of off the job training
(To the worker)
If the worker works on commission they may lose out on money while away from work + training
Workers may have to travel long distances to training centre
100
Advantages of on the job training
(To the business)
Cheaper
No disruption to the workplace through worker absence
101
Disadvantages of on the job training
(To the business)
Management time is spent planning/doing the training
Potential reduction of output as trainees complete work
102
Advantages of on the job training
(To the worker)
The trainee is given individual training
Trainee doesn’t have to travel long distances to be trained
103
Disadvantages of on the job training
(To the worker)
Training too specific and may make it difficult for the trained worker to find work in another firm
Trainee picks up bad habits may be passed on
104
Define redundancy
Where an employee is dismissed because the job/roll no longer exists or is required
105
Define reasons for redundancy
A firm ceases trading
a business replaces staff with machinery
a firm relocates overseas
106
Define redeployment
Involves moving employees to different jobs departments or locations within the same business
107
State two advantages of redeployment
Business retain skills and experience
maintains job security for employee
108
State two disadvantages of redeployment
Employees may not like the new role causing conflict
retraining costs
109
State two advantages of redundancy
Worried employee improve productivity
reduced salary and wage cost
110
State two disadvantages of redundancy
Negative publicity
impacts morale on remaining staff
111
Define motivation
The desire to achieve an outcome that dictates the way in which people behave
112
Benefits of motivated workforce ?
- increased productivity
- improve customer service
- reduce labour turnover + absenteeism
113
Define remuneration
The monetary value received in exchange for work
114
Define wages & salary
Wages = normally paid per hour worked paid weekly/monthly
Salary = an annual salary paid at the end of each month
115
Advantages & disadvantages of wages/salary
Advantage = creates job security
Disadvantage = workers aren’t rewarded for additional work
116
Define piece rate
Paying workers for each unit they produce
117
Advantages & disadvantages of piece rate
Advantage = increases labour productivity
Disadvantages = may reduce quality
118
Define commission
Paying workers a share of any sales they make
119
Advantages and disadvantages of commission
Advantage = employee cost match the revenues of the business
Disadvantage = lack of job security
120
Define performance related pay
Paid when pre-agreed targets have been achieved
121
Advantage + disadvantage of performance related pay
Advantage = employee targets are link to company objectives
Disadvantages = targets may be subjective and difficult to quantify
122
Define fringe benefits
In addition to basic pay - e.g. company car, private health care, free meals
123
Define profit sharing
Where a cut of the business profits is shared amongst some/ all employees
124
Define share options
Where some/ all the employees have the option to buy shares in a business
125
Define non-financial methods of motivation
Involves any other incentives that do not involve money
126
Define job enrichment
Making an employees job more interesting and challenging
127
Advantages and disadvantages of job enrichment ?
Advantage:
Increases promotional opportunities
Disadvantage:
Extra pressure on staff
128
Define job rotation
Involves the movement of employees through a range of jobs
129
Advantages and disadvantages of job rotation
Advantage:
Multi-skilled workers
Disadvantage:
Training costs
130
Define job enlargement
Involves the addition of extra, similar, tasks to a job
131
Advantages and disadvantages of job enlargement?
Advantages:
Reduces boredom and increase productivity
Disadvantage:
Reduce quality due to excessive workload
132
Define flexible working
Increase employee control over their working hours
133
Advantages + disadvantages of flexible working ?
Advantage:
Improves work life balance
Disadvantage:
Harder to monitor performance
134
Define team working
Groups of employees to work together in order to meet shared objectives
135
Advantages + disadvantages of team working ?
Advantage:
Share the workload
Disadvantage:
Conflict between team members
136
Define empowerment
Providing employees more autonomy and freedom in their job
137
Advantages and disadvantages of empowerment?
Advantage:
Quicker decision making
Disadvantage:
Not affective for new or unskilled workers
138
What is Herzberg’s two factor theory broken into?
Motivators and hygiene
139
Herzberg’s two factor theory:
Define motivators
Factors that directly motivate people to work harder
140
Herzberg’s two factor theory:
Define hygiene
Factors that can de-motivate if not present, but do not actually motivate employees to work harder
141
Herzberg’s two factor theory:
Examples of motivators?
- promotion
- recognition of achievement
- varied work
- responsibility
142
Herzberg’s two factor theory:
Examples of hygiene ?
- salary or wage
- job security
- working conditions
- company policies
143
Herzberg’s two factor theory:
Evaluation ?
Theory only test 200 accountants + engineers = small sample size
Controversy about categorising pay as hygiene factor - contracts Taylor’s theory
Doesn’t take teamwork into account
144
Define Maslow’s hierarchy of needs
A theory of motivation which states that five categories of human needs dictate an individuals behaviour
Motivated by being presented with the opportunity to achieve the next level of
145
Maslows hierarchy of needs:
What is the bottom layer called and what does it include ?
Psychological
Food, shelter, water, sleep and air
146
Maslows hierarchy of needs:
What is the second layer called and what does it include ?
Safety
Security, law + order, good health, employment
147
Maslows hierarchy of needs:
What is the third layer called and what does it include ?
Social
Romantic relationships, friends and family
148
Maslows hierarchy of needs:
What is the fourth layer called and what does it include ?
Esteem
Respect and confidence
149
What is the top layer called and what does it include ?
Self actualisation
Promotion
150
Maslows hierarchy of needs:
A03?
Not everyone has the same needs
Our perception of what is important at work will vary
Not all employees will reach the top of the model
151
Applying Maslow to McDonalds:
Psychological?
- free meals
- staff uniform free of charge
- paying at least minimum wage
152
Applying Maslow to McDonalds:
Safety?
- pension scheme, holiday pay
- flexible scheduling
- sick pay
153
Applying Maslow to McDonalds:
Social ?
- team working is essential
- organise family and sports events
154
Applying Maslow to McDonalds:
Esteem ?
- employee of the month award
- performance reviews linked to pay increases
155
Applying Maslow to McDonalds:
Self actualisation?
Many management schemes available
156
What are employer-employee relations ?
Relationships between employees and employers to seek an optimum working relationship
E.g working life, including wages and conditions
157
Benefits of good industrial relations?
- lower labour turnover
- improve productivity
- higher worker morale
158
Define trade unions
Organisations whose role is to represent the interest of employees
159
Roles of trade unions ?
- collective pay bargaining
- promote good working conditions
- support equal rights
160
Types of industrial action:
Strikes ?
- withdrawal of labour
- often a last resort
- employees lose wages
161
Types of industrial action:
Go-slow ?
employees work at the slowest or least-productive pace that is allowable
162
Types of industrial action:
Work to rule ?
- employees work to the exact terms of their employment contacts
- employees still get paid
163
Types of industrial action:
Overtime ban
- employees refuse to work overtime
- can have a significant effect on production capacity
164
Internal forms of communication?
- word of mouth
- intranet
- social media
- email
165
External forms of communication?
- financial accounts
- marketing
- press release
- government reports
166
Benefits of effective communication?
– Increased employee involvement
– Improved motivation
– working towards same aims and objectives
– helps decision-making
– employee feedback
167
Benefits of effective communication:
increased employee involvement
Informed employees are more likely to get involved with the business and accept decisions
168
Benefits of effective communication:
improved motivation
Employees feel part of the business I.e. through feedback from managers to subordinates during an appraisal
169
Benefits of effective communication:
Working towards the same aims and objectives
Employees are aware of what is required to achieve objectives and potential rewards
170
Benefits of effective communication:
Helps decision-making
Employees, need accurate and up-to-date information to perform effectively
171
Benefits of effective communication:
employee feedback
Employees will be more engaged in the business if they have the opportunity at meetings to give feedback to managers
172
barriers to communication?
- too many layers of the hierarchy
- use of technical jargon
- time zones
- language barriers
173
what are work councils?
group of employees elected/ chosen to represent all of the employees in a company
174
what do work councils do?
- review corporate objectives
- recruitment options
- health & safety concerns
- training programmes
175
what are ACAS?
Offer a wide variety of services to help avoid industrial disputes.
Becomes involved when invited by both sides to conciliate (offer and suggest solutions) or arbitrate (when ACAS's solution will be accepted by both sides).
176
advantages of work councils?
(To the business)
positive relationship can be maintained within the workforce
keeps the whole workforce focused on the same objectives
177
disadvantages of work councils?
(To the business)
takes up management time
a legal requirement
178
advantages of work councils?
(to the employee)
can be involved in the recruitment process
can improve training programmes
179
disadvantages of work councils?
(to the employee)
does not help with pay increases
members can be chosen by management and not employees
