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

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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
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3
Q

define soft HRM

A

employees are treated as individuals and their needs are planned accordingly

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4
Q

define hard HRM

A

treats employees simply as a resource of the business

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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
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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
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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

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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

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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

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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

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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

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12
Q

define number, skills and location of employees

A
  • labour turnover
  • staff retention
  • recruitment targets
  • training budgets
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13
Q

define the internal influences on HR

A
  • corporate objectives
  • operational strategies
  • marketing strategies
  • financial strategies
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14
Q

define the external influences on HR

A
  • market changes
  • economic changes
  • technological changes
  • social changes
  • political and legal changes
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15
Q

define operational strategies

A

introduction of new IT or other systems and processes may require new staff training, fewer staff

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16
Q

define financial strategies

A

a decision to reduce cost by outsourcing training would result in changes to training programme

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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

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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

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19
Q

state two advantages of hard HRM

A
  • enables quicker decision making
  • useful when management have expertise
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20
Q

state two disadvantages of HRM

A
  • workers can be demotivated
  • does not utilise employee potential
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21
Q

state two advantages of soft HRM

A
  • allows for creativity and innovation
  • useful when employees are experienced
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22
Q

state two disadvantages of soft HRM

A
  • decision making can be time-consuming
  • high cost to train and develop staff
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23
Q

Define labour turnover

A

A measure of the rate at which employees are leaving an organisation

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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
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25
Q

Consequences of high staff turnover?

A
  • higher costs e.g recruitment + training costs
  • increased pressure on remaining staff = may cause demotivation
  • disruption to production/productivity
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26
Q

How to improve labour turnover ?

A
  • effective recruitment + training
  • provide competitive pay + other incentives
  • job enrichment
  • reward staff loyalty e.g extra holiday
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27
Q

Define labour productivity

A

Measure of output per worker in volume (units) or value (£)

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28
Q

What factors influence labour productivity?

A
  • extent + quality of fixed assets i.e equipment, IT systems
  • skills, ability and motivation of work force
  • production methods
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29
Q

How can labour productivity be improved ?

A
  • measure performance and set clear targets
  • automation (invest in capital equipment)
  • invest in employee training
  • incentives/rewards
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30
Q

What are potential problems when trying to increase labour productivity ?

A
  • 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
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31
Q

Define labour cost per unit

A

Average cost of labour per unit of output produced

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32
Q

What is the formula for labour cost per unit ?

A

Total labour costs / total output

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33
Q

What is employee costs as percentage of turnover ?

A

The % of an organisations sales venue that is spent on the remuneration of staff

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34
Q

Formula for employee costs as percentage of turnover ?

A

Employee cost / salves revenue x 100

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35
Q

Employee costs as percentage of turnover:
What does a high/rising figure indicate ?

A

That labour productivity is falling

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36
Q

Employee costs as percentage of turnover:
What does a low/falling figure may indicate ?

A

That staff levels are low and customer service may suffer

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37
Q

Define organisational structure

A

Illustrates how employees and management are organised within a business

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38
Q

Define functional organisational structure

A

Where organisations are divided into specialist departments

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39
Q

Advantage and disadvantage of functional organisational structure

A

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

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40
Q

Define regional organisational structure

A

Where firms operate in distinct areas of a country or internationally

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41
Q

Advantage and disadvantage of regional organisational structure?

A

Advantage = allowed for localised approach which meets customer needs

Disadvantage = decision making can be decentralised which will add to the overall cost

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42
Q

Define product based organisational structure

A

Where multi-product firms produce a wide range of different goods

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43
Q

Advantage and disadvantage of product based organisational structure?

A

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

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44
Q

Define matrix organisational structure

A

Product and functional based: dual reporting

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45
Q

Advantage and disadvantage of matrix organisational structure ?

A

Advantage = builds positive relationships and promotes team working

Disadvantage = conflict between project and functional managers

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46
Q

What are the 4 influences on organisational design ?

A
  • authority
  • span of control
  • hierarchy
  • delegation
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47
Q

Define authority

A

The power/right to give orders and make decisions

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48
Q

Define span of control

A

The number of employees (subordinates) managed directly by an individual line manager

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49
Q

Define hierarchy

A

The number of layers in an organisation

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50
Q

Define delegation

A

Passing down authority to junior employees

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51
Q

Define tall organisational structure

A
  • where there are many levels of hierarchy and many job roles
  • easier to delegate
  • narrower spans of control
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52
Q

Define flat organisational structure

A
  • where there are few or no levels of middle management between staff and executives
  • harder to delegate
  • usually wider spans of control
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53
Q

Advantages of tall organisational structure ?

A
  • excellent progression opportunities
  • mangers have tight control over employees
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54
Q

Disadvantages of tall organisational structures ?

A

slow communication + slow decision making due to a long chain of command

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55
Q

Advantages of flat organisational structures?

A
  • less layers = better communication
  • more responsibility for employees, leading to motivation
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56
Q

Disadvantages of flat organisational structure?

A
  • lack of progression opportunities
  • higher work load for managers
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57
Q

Define centralised

A

Where decision making is made at the top of the hierarchy

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58
Q

Define decentralised

A

Where decision making is spread throughout the hierarchy

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59
Q

Advantages of centralised?

A
  • easier to coordinate and control from the centre
  • economies of scales and overhead savings easier to achieve
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60
Q

Disadvantages of centralised ?

A
  • a standardised approach may not work in all business locations
  • lack of authority down the hierarchy may reduce manager motivation
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61
Q

Advantages of decentralised?

A
  • better able to respond to local circumstances
  • improved level of customer service
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62
Q

Disadvantages of decentralised ?

A
  • harder to ensure consistent practices and policies at each location
  • harder to achieve tight financial control - risk of cost overruns
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63
Q

define human resource flow

A

the process of staff joining, developing and then the way they leave the business

64
Q

what processes fall under “inflow”?

A

recruitment

65
Q

what processes fall under “internal”?

A
  • induction
  • training
  • promotions
  • appraisal
66
Q

what processes fall under “outflow”?

A
  • redundancy
  • retirement
  • dismissal
67
Q

what is a HR plan?

A

anticipating the future needs of the business and organising the supply of people and skills that meet future requirement

68
Q

factors that effect HR plan?

A
  • staff current skills
  • future labour needs
  • change in objectives
  • age of staff
  • Labour turnover data
69
Q

state the 6 recruitment processes?

A
  1. identify job vacancy
  2. prepare job description + person specification
  3. create job advert
  4. shortlist applicants
  5. interviews
  6. job offer
70
Q

define “identify job vacancy”

A

compare a business’s expected future needs for employees with the existing workforce

71
Q

define “prepare job description + person specification”

A

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
Q

define “create job advert”

A

communicate with potential applicants the details of the job and the type of person the business is looking to recruit

73
Q

define “shortlist applicants”

A

the process of selecting the most suitable applicants from those who have applied for the job

74
Q

recruitment process:
define job description

A

a document outlining the roles and responsibilities that will be undertaken when doing a job

75
Q

recruitment process:
define person specification

A

a document outlining the skills and qualifications needed to do a job

76
Q

recruitment process:
define application form

A

a form containing questions that the applicant must answer in writing and submit to the business in order to apply for a job

77
Q

recruitment process:
define cv

A

a short document sent by candidates to potential employers that describes a person’s qualifications and previous experience

78
Q

recruitment process:
define shortlisting

A

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
Q

recruitment process:
define interview

A

a meeting between the applicant and the potential employer in which the applicant answers questions to assess their suitability for a job

80
Q

recruitment process:
define aptitude test

A

an assessment that judges the ability of someone to carry out specific duties. e.g skills tests, numeracy tests + literacy tests

81
Q

recruitment process:
define group test

A

an assessment that requires applicants to work with other people to solve a problem

82
Q

recruitment process:
define reference

A

a document written by a former employer, or someone who knows the applicant well, that describes the applicants sustainability to do a job

83
Q

define internal recruitment

A

when the business looks to fill the vacancy from within its existing workforce i.e via company noticeboards

84
Q

define external recruitment

A

when the business looks to fill the vacancy from any suitable applicant outside the business i.e via newspaper, job centre

85
Q

Define benefits of recruiting the right people

A
  • 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
Q

Advantages of internal recruitment

A

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
Q

Disadvantages of internal recruitment

A

Limits the number of potential applicants

no new ideas can be introduced from outside may

cause resentment amongst candidates, not appointed

88
Q

Advantages of external recruitment

A

Outside people bringing new ideas

larger pool of workers from which to find the best candidate

people have a wider range of experience

89
Q

Disadvantages of external recruitment

A

Longer process

more expensive process due to advertising and interviews required

selection process may not be effective enough to reveal the best candidate

90
Q

Define training

A

Training provides workers with knowledge and skills which enable them to perform their jobs more effectively

91
Q

Benefits of training ?

A
  • increased productivity
  • increase worker retention
  • higher customer satisfaction
92
Q

Define induction training

A

Training to introduce a new worker to the business, place of work and their fellow workers as well as their job

93
Q

What could be included in induction programme ?

A
  • meeting other employees
  • health and safety
  • company rules
  • pension schemes
94
Q

Define on the job training

A

Where an employee receives training whilst remaining in the workplace

95
Q

Define off the job training

A

Training that takes place outside of the workforce at an external organisation

96
Q

Advantages of off the job training
(To the business)

A

Experts may provide the training, improving the quality

If mistakes are made it usually won’t impact the workplace

97
Q

Disadvantages of off the job training
(To the business)

A

Lost production and disruption to workplace

Usually more expensive because of fees, travel and accommodation costs

98
Q

Advantages of off the job training
(To the worker)

A

Employees gain transferable qualifications

Workers enjoy change in environment

99
Q

Disadvantages of off the job training
(To the worker)

A

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
Q

Advantages of on the job training
(To the business)

A

Cheaper

No disruption to the workplace through worker absence

101
Q

Disadvantages of on the job training
(To the business)

A

Management time is spent planning/doing the training

Potential reduction of output as trainees complete work

102
Q

Advantages of on the job training
(To the worker)

A

The trainee is given individual training

Trainee doesn’t have to travel long distances to be trained

103
Q

Disadvantages of on the job training
(To the worker)

A

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
Q

Define redundancy

A

Where an employee is dismissed because the job/roll no longer exists or is required

105
Q

Define reasons for redundancy

A

A firm ceases trading
a business replaces staff with machinery
a firm relocates overseas

106
Q

Define redeployment

A

Involves moving employees to different jobs departments or locations within the same business

107
Q

State two advantages of redeployment

A

Business retain skills and experience

maintains job security for employee

108
Q

State two disadvantages of redeployment

A

Employees may not like the new role causing conflict

retraining costs

109
Q

State two advantages of redundancy

A

Worried employee improve productivity

reduced salary and wage cost

110
Q

State two disadvantages of redundancy

A

Negative publicity

impacts morale on remaining staff

111
Q

Define motivation

A

The desire to achieve an outcome that dictates the way in which people behave

112
Q

Benefits of motivated workforce ?

A
  • increased productivity
  • improve customer service
  • reduce labour turnover + absenteeism
113
Q

Define remuneration

A

The monetary value received in exchange for work

114
Q

Define wages & salary

A

Wages = normally paid per hour worked paid weekly/monthly

Salary = an annual salary paid at the end of each month

115
Q

Advantages & disadvantages of wages/salary

A

Advantage = creates job security

Disadvantage = workers aren’t rewarded for additional work

116
Q

Define piece rate

A

Paying workers for each unit they produce

117
Q

Advantages & disadvantages of piece rate

A

Advantage = increases labour productivity

Disadvantages = may reduce quality

118
Q

Define commission

A

Paying workers a share of any sales they make

119
Q

Advantages and disadvantages of commission

A

Advantage = employee cost match the revenues of the business

Disadvantage = lack of job security

120
Q

Define performance related pay

A

Paid when pre-agreed targets have been achieved

121
Q

Advantage + disadvantage of performance related pay

A

Advantage = employee targets are link to company objectives

Disadvantages = targets may be subjective and difficult to quantify

122
Q

Define fringe benefits

A

In addition to basic pay - e.g. company car, private health care, free meals

123
Q

Define profit sharing

A

Where a cut of the business profits is shared amongst some/ all employees

124
Q

Define share options

A

Where some/ all the employees have the option to buy shares in a business

125
Q

Define non-financial methods of motivation

A

Involves any other incentives that do not involve money

126
Q

Define job enrichment

A

Making an employees job more interesting and challenging

127
Q

Advantages and disadvantages of job enrichment ?

A

Advantage:
Increases promotional opportunities

Disadvantage:
Extra pressure on staff

128
Q

Define job rotation

A

Involves the movement of employees through a range of jobs

129
Q

Advantages and disadvantages of job rotation

A

Advantage:
Multi-skilled workers

Disadvantage:
Training costs

130
Q

Define job enlargement

A

Involves the addition of extra, similar, tasks to a job

131
Q

Advantages and disadvantages of job enlargement?

A

Advantages:
Reduces boredom and increase productivity

Disadvantage:
Reduce quality due to excessive workload

132
Q

Define flexible working

A

Increase employee control over their working hours

133
Q

Advantages + disadvantages of flexible working ?

A

Advantage:
Improves work life balance

Disadvantage:
Harder to monitor performance

134
Q

Define team working

A

Groups of employees to work together in order to meet shared objectives

135
Q

Advantages + disadvantages of team working ?

A

Advantage:
Share the workload

Disadvantage:
Conflict between team members

136
Q

Define empowerment

A

Providing employees more autonomy and freedom in their job

137
Q

Advantages and disadvantages of empowerment?

A

Advantage:
Quicker decision making

Disadvantage:
Not affective for new or unskilled workers

138
Q

What is Herzberg’s two factor theory broken into?

A

Motivators and hygiene

139
Q

Herzberg’s two factor theory:
Define motivators

A

Factors that directly motivate people to work harder

140
Q

Herzberg’s two factor theory:
Define hygiene

A

Factors that can de-motivate if not present, but do not actually motivate employees to work harder

141
Q

Herzberg’s two factor theory:
Examples of motivators?

A
  • promotion
  • recognition of achievement
  • varied work
  • responsibility
142
Q

Herzberg’s two factor theory:
Examples of hygiene ?

A
  • salary or wage
  • job security
  • working conditions
  • company policies
143
Q

Herzberg’s two factor theory:
Evaluation ?

A

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
Q

Define Maslow’s hierarchy of needs

A

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
Q

Maslows hierarchy of needs:
What is the bottom layer called and what does it include ?

A

Psychological

Food, shelter, water, sleep and air

146
Q

Maslows hierarchy of needs:
What is the second layer called and what does it include ?

A

Safety

Security, law + order, good health, employment

147
Q

Maslows hierarchy of needs:
What is the third layer called and what does it include ?

A

Social

Romantic relationships, friends and family

148
Q

Maslows hierarchy of needs:
What is the fourth layer called and what does it include ?

A

Esteem

Respect and confidence

149
Q

What is the top layer called and what does it include ?

A

Self actualisation

Promotion

150
Q

Maslows hierarchy of needs:
A03?

A

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
Q

Applying Maslow to McDonalds:
Psychological?

A
  • free meals
  • staff uniform free of charge
  • paying at least minimum wage
152
Q

Applying Maslow to McDonalds:
Safety?

A
  • pension scheme, holiday pay
  • flexible scheduling
  • sick pay
153
Q

Applying Maslow to McDonalds:
Social ?

A
  • team working is essential
  • organise family and sports events
154
Q

Applying Maslow to McDonalds:
Esteem ?

A
  • employee of the month award
  • performance reviews linked to pay increases
155
Q

Applying Maslow to McDonalds:
Self actualisation?

A

Many management schemes available