3.6 Human Resources

Question 1

What are the 4 internal influences on HR objectives?

Answer 1

Corporate objectives Operational strategies Marketing strategies Financial strategies

Question 2

What are the 5 external influences on HR objectives?

Answer 2

Market changes, Economic changes, Technological changes, Social changes, Political & legal changes

Question 3

Give an example of how operational strategy can influence HR objectives

Answer 3

A new IT system can lead to a reduction in staffing levels

Question 4

Give an example of how operational strategy can influence HR objectives

Answer 4

A social media marketing campaign can require new staffing skills

Question 5

Define Soft HR

Answer 5

Type of HR management that sees employees as the most important resource and competitive advantage.Their needs and individuals are taken in account

Question 6

Define Hard HR

Answer 6

Type of HR management that sees employees as just resources, like machinery

Question 7

Characteristics of Soft HR

Answer 7

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

Question 8

Characteristics of Hard HR

Answer 8

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

Question 9

Formula for Labour Turnover

Answer 9

Number of employees leaving or staying durind a period/ Average number employed during a period X 100

Question 10

Formula for Labour Productivity

Answer 10

Output per period/ Number of employees at work

Question 11

Formula for Employees costs as a % turnover

Answer 11

Total employee cost/total turnover X100

Question 12

Formula for labour costs per unit

Answer 12

Labour costs/Number of units produced

Question 13

Give examples of HR objectives

Answer 13

Training, Alignment of value, Location of employees, Employee Engagement, Number of employees, Talent development, Employee involvement, Diversity

Question 14

Main measures of employee effectiveness

Answer 14

Labour Productivity, Staff turnover, Absenteeism, Labour cost per unit, Employees costs as a % of turnover

Question 15

What factors effect labour productivity?

Answer 15

Extent and quality of fixed assets, Skills, ability and motivation of workforce, Methods of production organisation, External factors

Question 16

How can HR improve labour productivity?

Answer 16

Measure performance and set targets, Streamline production processes, Invest in capital equipment, Invest in employees training, Make the workplace conducive to productive effort

Question 17

Factors influencing staff turnover/retention

Answer 17

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

Question 18

Ways to improve staff turnover

Answer 18

Effective recruitment and training- best staff=best results, Provide competitive pay and other incentives, Job enrichment, Reward staff loyalty- service rewards, extra holiday

Question 19

Ways to improve absenteeism

Answer 19

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

Question 20

Definition of span of control

Answer 20

Number of employees for whom a manager is responsible

Question 21

Narrow span of control

Answer 21

Allows for closer supervision of employees, More layers of hierarchy may be required, Helps more effective communication

Question 22

Wide span of control

Answer 22

Gives subordinates the chance for more confidence, More appreciated if labour costs are significant , Reduce numbers of managers

Question 23

What is a hierarchical Structure?

Answer 23

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

Question 24

Characteristics of flat hierarchy

Answer 24

Sometimes called “organistic”, Flat hierarchy, Wide spans of control, Delegation encouraged

Question 25

Characteristics of tall hierachy

Answer 25

May be called traditional or mechanistic structure, Many layers if hierarchy and narrow spans of control

Question 26

Pros and Cons of tall structures

Answer 26

More layers= more staff= higher costs, Allows tighter control, More opportunities for promotion, Communication takes longer as it passes through a lot of layers

Question 27

Pros and cons of flat structures

Answer 27

Less direct control + more delegation, Fewer opportunities for promotion, but staff given greater responsibility, Vertical communication is improved, Fewer layers=less satff= Lower costs

Question 28

Benefits of delayering

Answer 28

Reducing number of layers in hierarchy, Lower labour costs, Faster decision making, Shorter communication paths, Greater emphasis on teamworking and empowerment

Question 29

What is delegation?

Answer 29

The assignment to others of the authority for particular functions, tasks and decisions

Question 30

3 Benefits of Delegation

Answer 30

Reduces management stress and workload, Allows senior management to focus on key tasks, Subordinates are empowered and motivated, eg delegate on the job traiining

Question 31

3 Drawbacks of Delegation

Answer 31

Depend on quality/ experience of subordinates, Harder in a smaller firm, May increase workload and stress of workers

Question 32

What is employee empowerment?

Answer 32

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

Question 33

Challenges of change the organisational structure

Answer 33

Manager and employee resistance, Disruption and demotivation=potential problems with staff retention, Costs, Negative impact on customer service or quality

Question 34

What is a centralised structure?

Answer 34

Keepinig decision-making firmly at the top of the hierarchy

Question 35

3 Benefits of a centralised structure

Answer 35

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.

Question 36

3 Drawbacks of a centralised structure

Answer 36

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

Question 37

What is a decentralised structure?

Answer 37

Decision making is spread out to include more junior managers as well as unit and trading locations

Question 38

3 Benefits of decentralised structure

Answer 38

Decisions are made closer to the customer, Better able to respond to local circumstances, Improved level of customer service

Question 39

3 Drawbacks of decentralised structure

Answer 39

Decision-making is not necessarily strategic, Harder to achieve tight financial control, harder to ensure consistent practices and policies at each location

Question 40

What is the HR flow?

Answer 40

Movement of people coming in and out of the organisation

Question 41

What comes under HR flow?

Answer 41

Human resource plan- anticipated demand, Recruitment- internal/external/agency/specialist training, Training, Redeployment, Redundancy

Question 42

What is job design?

Answer 42

Allocations of tasks and responsibilities to roles within the organisation

Question 43

What influences how a job is designed?

Answer 43

Customer needs, operational efficiency, availability of skills