6 - Human resource performance π©βπ» Flashcards
Define HR
the design, implementation and maintenance of strategies to manage people for optimum business performance
How is HR managed?
- workforce planning
- recruitment & selection
- training & development
- rewarding & motivating staff
- communication
- roles and responsibilities
Why is HR important for businesses that provide services?
people are critical in quality and customer service
Why is HR important for businesses in full markets?
High competitiveness means staff must be motivated to keep business efficient and productive
Why is HR important for businesses with flatter organisational structures?
fewer layers has placed a greater emphasis on management, delegation and communication
What are some human resource objectives?
- employee engagement/involvement
- talent development
- training
- diversity
- alignment of values
- number/skills/location of employees
What are internal influences on HR objectives?
- employee relations
- organisational structure
- financial constraints
- corporate culture
- overall performance of the business
What are external influences on HR objectives?
- legislation
- actions of competitors
- economic factors
- political factors
- technological factors
- social factors
- structure of population - demographics
Define Hard HRM
treats employees as a resource to be monitored and used efficiently in order to achieve strategic objectives
Define Soft HRM
treats employees as valuable assets, a major source of competitive advantage which is vital in achieving its strategic objectives
Hard HRM can be seen as what leadership style?
Autocratic
Soft HRM can be seen as what leadership style?
Democratic
Key features of Hard HRM
- minimal communication
- fast & efficient
- Theory X
- high levels of labour turnover
- little empowerment for staff
- demotivated
Key features of Soft HRM
- focus on job design/satisfaction
- motivating
- strong and two-way communication
- Theory Y
- low levels of labour turnover
Summarise Hard HRM
employees hired and fired as necessary
Summarise Soft HRM
employees trained and retained
Formula for labour turnover
No of employees leaving over given time / avg. no of employed over time X 100
Formula for retention rates
No of employees with 1+yrs service / overall workforce numbers X 100
Formula for labour productivity
Output per period / no of employees per period
Formula for labour costs per unit
Total labour costs / total units of output
Formula for absenteeism
Number of staff absent / no of staff in total X 100
Formula for employee costs as a % of revenue
Employee costs / revenue X 100
Benefits of low retention rates
- pay staff low wages = unskilled
- new ideas and enthusiasm
- may already be trained (from competitors)
Drawbacks of low retention rates
- recruitment is expensive
- training is costly
- loss of trained staff to competitors
- impacts customer service
Define job design
the process of deciding on the content of the job in terms of its duties and responsibilities
How is maintaining quality an important influence on job design?
Jobs should be designed so they support the required level of quality
How is operational efficiency an important influence on job design?
ensures employees have equipment available to be productive
How is labour retention an important influence on job design?
poor job design often causes high labour turnover
How is the skills of the workforce an important influence on job design?
employees can only undertake jobs effectively with the right skills
Hackman and Oldham Model
Name 3 ways of adding challenge to a job
variety, autonomy and decision authority
Hackman and Oldham Model
Name 2 ways of adding variety to a job
job enrichment and job rotation
Hackman and Oldham Model
What are the 5 job characteristics?
Skill variety
Task identity
Task significance
Autonomy
Job feedback
What are organisational charts?
diagrams showing the internal structure of the business, making it easy to identify the specific roles/responsibilities
Define span of control
how many people you DIRECTLY look after
Define chain of command
how many layers there are underneath you of which communication passes along
Why shouldnβt directors/managers/team leaders have too wide a span of control?
find it difficult to properly manage and supervise employees
Advantages of tall organisational structures
- close supervisory control
- defined roles
- obvious chain of command
- more mentoring
- clear promotion ladder
- decision making at top
Disadvantages of tall organisational structures
- high management costs
- slow decision making
- employees less motivated
- subordinates have less freedom
Advantages of flat organisational structures
- flexible and adaptable
- more direct communication
- faster decision making
- more democratic
- greater freedom for staff
- less hoarding of info at top
Disadvantages of flat organisational structures
- less clear specific job functions
- less opportunity for promotion
- higher managerial workload
- difficult to coordinate between staff
- produces more generalists, less specialists
Define delegation
the passing down of authority to more junior employees
Advantages of delegation
- more autonomy
- motivating as staff feel more valued
Disadvantages of delegation
- may cause stress if workload is too high
- quality my decrease as time is more divided
Define a matrix structure
a type of structure that combines traditional departments seen in function structures, with project teams (everyone connects)
Pros of matrix structures
- easier, more efficient communication
- motivating
- encourages collaboration and teamwork
Define a centralized structure
authority rests with the senior management at centre of the business
Define a decentralized structure
should be delegated down the hierarchy, away from the center, and spread out decision making
Advantages of a centralised structure
- ensures consistency
- more organized
- more experienced decision making
- easier to implement common practices
- only 1 head management to be paid
Disadvantages of centralised structure
- less motivating
- worse customer service
- not tailored to individual needs
Advantages of a decentralised structure
- motivating and empowering for staff
- better customer service
- tailored to individuals
- training/development of junior staff = improves retention
Disadvantages of decentralised structure
- less experienced
- duplication of roles in departments
- not strategic (long term) decisions
- lack of consistency