3.6 Human Resources Flashcards
AQA A level Business HR
What are the 4 internal influences on HR objectives?
Corporate objectives Operational strategies Marketing strategies Financial strategies
What are the 5 external influences on HR objectives?
Market changes, Economic changes, Technological changes, Social changes, Political & legal changes
Give an example of how operational strategy can influence HR objectives
A new IT system can lead to a reduction in staffing levels
Give an example of how operational strategy can influence HR objectives
A social media marketing campaign can require new staffing skills
Define Soft HR
Type of HR management that sees employees as the most important resource and competitive advantage.Their needs and individuals are taken in account
Define Hard HR
Type of HR management that sees employees as just resources, like machinery
Characteristics of Soft HR
Flatter organisational structures, Strategic focus on long term work force planning, Strong and regular two-way communication, Competitive pay with suitable performance, Employees are empowered and encouraged to seek delegation and take responsibility, Appraisal systems focused on identifying and training employees to meet development needs, Suits democratic leadership style
Characteristics of Hard HR
Short-term changes in employee numbers, Minimal communication from the top down, Pay enough in order to recruit and retain, Little empowerment or delegation, Appraisal systems focused on making judgements about staff, Taller organisational structures, Suits autocratic leadership style
Formula for Labour Turnover
Number of employees leaving or staying durind a period/ Average number employed during a period X 100
Formula for Labour Productivity
Output per period/ Number of employees at work
Formula for Employees costs as a % turnover
Total employee cost/total turnover X100
Formula for labour costs per unit
Labour costs/Number of units produced
Give examples of HR objectives
Training, Alignment of value, Location of employees, Employee Engagement, Number of employees, Talent development, Employee involvement, Diversity
Main measures of employee effectiveness
Labour Productivity, Staff turnover, Absenteeism, Labour cost per unit, Employees costs as a % of turnover
What factors effect labour productivity?
Extent and quality of fixed assets, Skills, ability and motivation of workforce, Methods of production organisation, External factors
How can HR improve labour productivity?
Measure performance and set targets, Streamline production processes, Invest in capital equipment, Invest in employees training, Make the workplace conducive to productive effort
Factors influencing staff turnover/retention
Type of business: Seasonal, temp. staff, Pay and other rewards, Working conditions, Opportunities for promotion, Competitors actions, Standard of recruitment, Quality of communication in business, Employee loyalty, Labour mobility
Ways to improve staff turnover
Effective recruitment and training- best staff=best results, Provide competitive pay and other incentives, Job enrichment, Reward staff loyalty- service rewards, extra holiday
Ways to improve absenteeism
Understand the causes, Set targets and monitor trends, Have a clear absence and sickness policy, Provide rewards for good attendance, Consider the wider issues of employee motivation
Definition of span of control
Number of employees for whom a manager is responsible
Narrow span of control
Allows for closer supervision of employees, More layers of hierarchy may be required, Helps more effective communication
Wide span of control
Gives subordinates the chance for more confidence, More appreciated if labour costs are significant , Reduce numbers of managers
What is a hierarchical Structure?
Traditional form of organisational structure in business, Layers of hierarchy reflects levels of seniority, Tall or flat? Depends on number of layers, Associated with formal or bureaucratic management
Characteristics of flat hierarchy
Sometimes called “organistic”, Flat hierarchy, Wide spans of control, Delegation encouraged
Characteristics of tall hierachy
May be called traditional or mechanistic structure, Many layers if hierarchy and narrow spans of control
Pros and Cons of tall structures
More layers= more staff= higher costs, Allows tighter control, More opportunities for promotion, Communication takes longer as it passes through a lot of layers
Pros and cons of flat structures
Less direct control + more delegation, Fewer opportunities for promotion, but staff given greater responsibility, Vertical communication is improved, Fewer layers=less satff= Lower costs
Benefits of delayering
Reducing number of layers in hierarchy, Lower labour costs, Faster decision making, Shorter communication paths, Greater emphasis on teamworking and empowerment
What is delegation?
The assignment to others of the authority for particular functions, tasks and decisions
3 Benefits of Delegation
Reduces management stress and workload, Allows senior management to focus on key tasks, Subordinates are empowered and motivated, eg delegate on the job traiining
3 Drawbacks of Delegation
Depend on quality/ experience of subordinates, Harder in a smaller firm, May increase workload and stress of workers
What is employee empowerment?
Closely linked to motivation and customer service, Employees need to feel that their actions count, Giving authority to make decisions to staff, Encouraging employee feedback, Showing more trust in employees
Challenges of change the organisational structure
Manager and employee resistance, Disruption and demotivation=potential problems with staff retention, Costs, Negative impact on customer service or quality
What is a centralised structure?
Keepinig decision-making firmly at the top of the hierarchy
3 Benefits of a centralised structure
Easier to implement common policies and practices for the whole business, prevents other parts of the busines becoming too self independent, Easier to control and co-ordinate from the centre, EOS easier to achieve.
3 Drawbacks of a centralised structure
More bureaucratic= more extra layers in the hierarchy, Lack of authority down in the hierarchy may reduce manager motivation, Customer services doesn’t have the flexibility and speed of local decision making
What is a decentralised structure?
Decision making is spread out to include more junior managers as well as unit and trading locations
3 Benefits of decentralised structure
Decisions are made closer to the customer, Better able to respond to local circumstances, Improved level of customer service
3 Drawbacks of decentralised structure
Decision-making is not necessarily strategic, Harder to achieve tight financial control, harder to ensure consistent practices and policies at each location
What is the HR flow?
Movement of people coming in and out of the organisation
What comes under HR flow?
Human resource plan- anticipated demand, Recruitment- internal/external/agency/specialist training, Training, Redeployment, Redundancy
What is job design?
Allocations of tasks and responsibilities to roles within the organisation
What influences how a job is designed?
Customer needs, operational efficiency, availability of skills
