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business > 3.6 human resources > Flashcards

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

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64
Q

what processes fall under “inflow”?

A

recruitment

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65
Q

what processes fall under “internal”?

A
  • induction
  • training
  • promotions
  • appraisal
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66
Q

what processes fall under “outflow”?

A
  • redundancy
  • retirement
  • dismissal
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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

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68
Q

factors that effect HR plan?

A
  • staff current skills
  • future labour needs
  • change in objectives
  • age of staff
  • Labour turnover data
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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
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70
Q

define “identify job vacancy”

A

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

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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

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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

156
Q

What are employer-employee relations ?

A

Relationships between employees and employers to seek an optimum working relationship
E.g working life, including wages and conditions

157
Q

Benefits of good industrial relations?

A
  • lower labour turnover
  • improve productivity
  • higher worker morale
158
Q

Define trade unions

A

Organisations whose role is to represent the interest of employees

159
Q

Roles of trade unions ?

A
  • collective pay bargaining
  • promote good working conditions
  • support equal rights
160
Q

Types of industrial action:
Strikes ?

A
  • withdrawal of labour
  • often a last resort
  • employees lose wages
161
Q

Types of industrial action:
Go-slow ?

A

employees work at the slowest or least-productive pace that is allowable

162
Q

Types of industrial action:
Work to rule ?

A
  • employees work to the exact terms of their employment contacts
  • employees still get paid
163
Q

Types of industrial action:
Overtime ban

A
  • employees refuse to work overtime
  • can have a significant effect on production capacity
164
Q

Internal forms of communication?

A
  • word of mouth
  • intranet
  • social media
  • email
165
Q

External forms of communication?

A
  • financial accounts
  • marketing
  • press release
  • government reports
166
Q

Benefits of effective communication?

A

– Increased employee involvement
– Improved motivation
– working towards same aims and objectives
– helps decision-making
– employee feedback

167
Q

Benefits of effective communication:
increased employee involvement

A

Informed employees are more likely to get involved with the business and accept decisions

168
Q

Benefits of effective communication:
improved motivation

A

Employees feel part of the business I.e. through feedback from managers to subordinates during an appraisal

169
Q

Benefits of effective communication:
Working towards the same aims and objectives

A

Employees are aware of what is required to achieve objectives and potential rewards

170
Q

Benefits of effective communication:
Helps decision-making

A

Employees, need accurate and up-to-date information to perform effectively

171
Q

Benefits of effective communication:
employee feedback

A

Employees will be more engaged in the business if they have the opportunity at meetings to give feedback to managers

172
Q

barriers to communication?

A
  • too many layers of the hierarchy
  • use of technical jargon
  • time zones
  • language barriers
173
Q

what are work councils?

A

group of employees elected/ chosen to represent all of the employees in a company

174
Q

what do work councils do?

A
  • review corporate objectives
  • recruitment options
  • health & safety concerns
  • training programmes
175
Q

what are ACAS?

A

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
Q

advantages of work councils?
(To the business)

A

positive relationship can be maintained within the workforce

keeps the whole workforce focused on the same objectives

177
Q

disadvantages of work councils?
(To the business)

A

takes up management time

a legal requirement

178
Q

advantages of work councils?
(to the employee)

A

can be involved in the recruitment process

can improve training programmes

179
Q

disadvantages of work councils?
(to the employee)

A

does not help with pay increases

members can be chosen by management and not employees

business (5 decks)

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