6 - Human resource performance 👩💻 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 shouldn’t 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
Define delayering
the removal of one or more levels of hierachy from a business’ organisational structure
Advantages of delayering for staff
- offers opportunity for delegation, empowerment & motivation
- encourages innovation
Advantages of delayering for business
- reduces remuneration costs
- removes department rivalry
- improves communication as fewer levels
Disadvantages of delayering
- don’t always suit a flatter structure
- demotivates due to job losses
- disruption in staff
- wider span of control can damage communication
Define job analysis
the process of grouping tasks and responsibilities into job roles based on the needs of a business/skills of a workforce
Define person specification
list of skills/characteristics an employer seeks in an employee
Define job description
outlines a list of tasks/responsibilities involved in day-to-day jobs
Define an application form
document tailored to the needs of the business to assess suitability of candidates
Define a CV
documents created by employee outlining qualifications and experiences
Define inteviews
candidate is slected after a one-on-one conversation
Define psychomeric tests
a questionnaire designed to assess personality traits and responses to situations
Define assessment centres
candidate is assessed in a group scenario
Define selection
choosing the right employees from among those who have applied
Define recruitment
the process of deciding who will fulfil a specific job role, which is essential to ensure that a business has enough employees with the right skills/experience
Why recruit employees?
- diversification
- decreases staff stress = improves motivation
- expansion
-new departments - new ideas/innovation
Advantages of internal recruitment
- candidates familiar with business
- promotion opportunities are motivating
- cheaper as ssaves advertising new job role
Disadvantages of internal recruitment
- no fresh ideas
- limited number of people who can do the job
Advantages of external recruitment
- managers have wider choice of candidates with different skills
Disadvantages of external recruitment
- expensive due to adverts
- candidate won’t know business culture/ how its run
- needs lots of training
Define a contract of employment
legal document stating the hours of work, rates of pay, duties and other conditions
Benefits to employer of full time staff
- more reliable
- staff more skilled
- increased output
- better quality service
- more committed
Benefits to employee of full time
- permanent = stable
- guarantee pay
- holiday pay/sick pay
- more promotion opportunities
Benefits to employer of part time staff
- less pay
- only have to pay when they work
- more flexible with needs of business = work when needed
- more staff = more idea
Benefits to employee of part time
- flexible
- more holiday
- work-life balance
- more shifts = overtime
Benefits of an effective selection process
- values align
- finds highly skilled workers
-recruitment is expensive - choose the right candidate
- higher productivity
Define redeployment
use of employees in any aspect to achieve a particular effect
Define redundancy
business dismisses an employee because the business no longer needs anyone to do the job
Why do businesses try to avoid redundancy?
- costtly
- bad media
- time-consuming
- competition may steal staff
- morale may lower
Define training
the process of instructing an individual about how to carry out tasks directly related to his/her job
Define induction training
first day training
Advantages of induction training
- reduces chance of error
- provides understanding of expectations
Disadvantages of induction training
- time consuming
- not as in depth
- less personal
- removes staff from normal job role
Define on-the-job training
instructing employees at their workplace / being placed within another staff member for 1 day
Advantages of on-the-job training
- work realistic
- cheaper
- more practical
- first hand + specific
- easier to assess progress
Disadvantages of on-the-job training
- interrupting flow
- irritate staff member
- reduces productivity
- bad habits may be taught
- outdated
Define off-the-job training
training at a centre or going on a course
Advantages of off-the-job training
- delivered by experts
- up to date + relevant
- employee may be motivated by employer investing in them
Disadvantages of off-the-job training
- expensive
- time-consuming
- not tailored to needs of business
- impacts productivity
What is the importance of training?
- improves productivity
- motivating
- improves employee retention rates
- staff are efficient
Define motivation
the desire to complete a task and to do a good job
What is remuneration?
payment by wages and salaries
What are bonuses?
paid depending on the performance of the business as a whole
What is commission?
Getting paid based on how much you sell
What are promotions?
Moving up the organisation’s hierarchy
What are fringe benefits?
Extra incentives such as a company car or health care benefits
Taylorism
What are the key points?
- motivated by pay
- science can be used to increase efficiency
- workers given 1 task to master
- system is most important
Taylorism
What is time and motion study?
- analysing the fastest method so workers didn’t have to be skilled, just efficient
Taylorism
Pros to scientific management
- standardised approach
- increase productivity
- fewer employees needed
- consistent products and quality
- cheap pay
- easy to implement
Taylorism
Cons to scientific management
- unfulfilled employees
- creates unemployment
- potential for strike action
- loss of individual initiative
- survival of the fittest environment
- dehumanising
- higher absenteeism
- decreases product quality
Define piece rate pay
Paid per product
Maslow
What is at the bottom of the hierarchy of needs?
Physiological needs - basic needs eg. air, water, food, shelter, showers, clothing
Maslow
What is above physiological needs in the hierarchy?
Safety needs - personal security, employment, health, property, resoruces
Maslow
What is in the middle of the hierarchy of needs?
Love and belonging - friendship, intimacy, family, connections
Maslow
What is above love and belonging?
Esteem - respect, status recognition, strength, freedom
Maslow
What is at the top of the hierarchy of needs?
Self-actualisation - desire to become the most that one can be
Herzberg
What two factor theory of motivation did he create?
Job satisfaction and dissatisfaction
Herzberg
What do motivators mean?
Factors that can act to motivate enployees
Herzberg
What are hygiene factors?
Can reduce job dissatisfaction, but can’t motivate by themselves
Herzberg
Examples of hygiene factors
Fair pay
Relationships
Policies
Job security
Herzberg
Examples of motivators
Growth
Career advancement
Meaningful work
Recognition
Mayo
What style of leadership was he?
Democratic
Mayo
What did he believe would motivate employees other than money?
Having social needs met at work, better communication between managers and more involvement, working in groups
Mayo
What did he create?
The Human Relations School of Thought - focused on managers taking an interest
McGregor
What is Theory X management?
- employees need close supervision
- staff must be pushed to perform
- staff will avoid responsibility
- employees only desire money
- employees will avoid work where possible
McGregor
Theory Y management
- employees seek responsibility
- naturally want to work
- employees want independence
- staff will drive themselves
- motivated by self-fulfilment
McGregor
What leadership style is Theory X?
Autocratic
McGregor
What leadership style is Theory Y?
Democratic
Define a trade Union
An organisation with members who are usually workers or employees that looks after their interests at work
What does a Trade Union do?
- negotiating agreements with employers on pay and conditions
- discussing big changes like large scale redundancy
- discussing members’ concerns with employers
- going with members to disciplinary and grievance meetings
Define a work council
A forum within a business where workers and management meet to discuss working conditions, pay and training
Who is in a works council?
Employee representatives to the works council are elected by the workforce
When are work councils common?
When no trade Union exists and are more common in Europe
What is an industrial dispute?
They occur when there is a disagreement between the management and the trade union representatives
What is work-to-rule?
When employees do exactly what their job entails and nothing more
What is go slow industrial action?
Workers take their time, which slows down production
What is an overtime ban?
Workers decide not to work over their regular paid hours
What is a sit-in industrial action?
Workers occupy the workplace and refuse to carry out their work (usually when the factory or office is in danger of closing)
What are strikes?
When employees withdraw their labour
