Decision Making To Improve HR Performance

Question 1

HR objectives

Answer 1

• Employee engagement and involvement
• Talent development
• Training
• Diversity
• Alignment of values
• Number skill and location of employees

Question 2

Internal influences on HR objectives

Answer 2

Financial constraints 
Corporate culture
Organisational structure 
Trade unions and employee relations 
Overall performance of businesses

Question 3

External influences of HR objectives

Answer 3

Political.            PEST
Economic
Social 
Technological
Legislation 
Action of competitors 
Structure of population

Question 4

What is a hard HR approach - short term

Answer 4

Employees have limited control 
Pay is minimum 
Employees treated as a resource to be monitored and used efficiently 
Linked to authoritarian 
Theory x leadership

Question 5

What is a soft HR approach - long term

Answer 5

Treats employees as valuable assets
Objectives focus on motivational issues,culture
Develops workforce rather than recruiting
Linked to democratic style of management

Question 6

Organisational design

Answer 6

A process of reshaping an organisational structure and roles to fit in with the strategy of the business

Question 7

Organisational structure

Answer 7

Relationship between different people and functions in an organisation

Question 8

Influences on organisational design

Answer 8

• Size
• Nature of the business
• Culture and attitudes of senior management
• Skills And experience
• External environment

Question 9

Delegation

Answer 9

Assignment of responsibility/authority to another person to carry out specific activities

Person who delegates remains accountable for outcomes

Question 10

Authority

Answer 10

The power to give orders, make decisions and enforce obedience

Having power or control over subordinates

Ultimate responsibility remains with senior managers

Question 11

Accountability

Answer 11

The responsibility of an individual to account for their activities positively or negatively

Question 12

Span of control

Answer 12

Number of functions or people which an individual is responsible for

Question 13

Hierarchy

Answer 13

The pyramidal like ranking of individuals within an organisational structure

Question 14

Centralisation

Answer 14

Greater degree of central control over the business

Question 15

Decentralisation

Answer 15

Authority is delegated to regions or subordinates

Question 16

Influences of centralisation

Answer 16

• Can gain economies of scale
• Can utilise specialisation more easily
• Strong leadership
• Authoritarian style of leadership
• Organisation with many common policies and practices
• Bureaucratic organisation

Question 17

Influences of decentralisation

Answer 17

• Decisions are made with closer links to customers
• Links with local communities
• Organisation recognised for customer service
• Democratic leadership
• Used as a motivational tool

Question 18

Advantages of a narrow span of control ( tall structure)

Answer 18

• Allows for tight control and close supervision
• Communication with subordinates is easier
• Good for unskilled workers

Question 19

Disadvantages of a narrow span of control( tall structure)

Answer 19

• Subordinates may feel left out of decision making process and lack motivation
• Management and administration costs are high
• Coordinating decisions of numerous managers can be difficult
• Too much supervision can stifle initiative and motivation

Question 20

Advantages of a wide span of control( flat structure)

Answer 20

• Fewer levels of management and decision making
• Lower supervision costs
• Greater decision making authority for subordinates can increase job satisfaction

Question 21

Disadvantages of a wide span of control (Flat structure)

Answer 21

• Direct supervision of subordinates can become difficult and management can loose control
• Subordinates may have more than one boss
• Motivation and output may be impaired if orders become confused
• The structure may become unworkable as business expands

Question 22

What is human resources

Answer 22

The management of people in the workplace to assist the organisation to achieve its objectives

Question 23

Labour productivity

Answer 23

Output per period /number of employees

Question 24

Labour cost per unit

Answer 24

Labour costs /units of output

Question 25

Employee costs as % of turnover

Answer 25

Employee costs / sales turnover *100

Question 26

Labour turnover

Answer 26

Number of staff leaving/average number of staff employed *100

Question 27

Benefits of high staff turnover

Answer 27

- Constant stream of new ideas through new staff - They can recruit staff who have already being trained by competitors -saves money - Enthusiasm of new staff influences others

Question 28

Disadvantages of high staff turnover

Answer 28

- Lack of loyal and experienced staff who know the business - Firm looses staff it has trained, often to competitors - Training costs money and productivity drops while new staff get trained - Recruitment costs are high

Question 29

Labour retention - company's ability to keep hold of its employees

Answer 29

Number of employees employed for one year or more / average number of staff* 100

Question 30

Absenteeism

Answer 30

Number of days lost to unauthorised absence/total possible days worked by workers *100

Question 31

How to reduce staff turnover

Answer 31

- Training and Carter development - Appropriate motivation - Involving employees in making decisions - Setting realistic targets

Question 32

How to increase labour productivity

Answer 32

- Improve technology - Recruiting suitably skilled and trained employees - Training to improve skills and attitudes if existing employees - using appropriate remuneration - Improving working practices

Question 33

Labour costs per unit of production

Answer 33

Average wage rate per hour * average labour hours per unit

Question 34

What's employee engagement

Answer 34

Exists when an employee is fully absorbed by and enthusiastic about their work and take positive actions to meet the organisations goal

Question 35

What's employee involvement

Answer 35

People are able to have an impact on decisions and actions that affect their working lives. Enables employees to contribute to continuous improvement and performance

Question 36

Benefits of high levels of engagement and motivation

Answer 36

- Low absenteeism - Low labour turnover - Good relations between manager and other employees - High levels of productivity - better customer service , customer loyalty

Question 37

Motivation

Answer 37

Describes the factors that arouse,maintain and channel behaviour towards a goal

Question 38

Maslow's hierarchy of needs

Answer 38

Physiological , safety ,social, Esteem and self actualisation

Question 39

Herzbergs Hygiene factors They don't motivate but without them workers are dissatisfied

Answer 39

Good company policy,supervision,work conditions,pay and relations

Question 40

Herzbergs motivating factors

Answer 40

Interesting work, personal achievement, recognition of achievement, scope for more responsibility, personal development

Question 41

Herzbergs theory

Answer 41

Recognises motivation comes from individuals needs Provides clear solutions to businesses Although based on small sample, doesn't consider people ave different hygiene and motivation needs

Question 42

Non financial motivation.

Answer 42

``` Job enlargement Job enrichment Empowerment Team Working Good working environments and providing facilities eg free gym ```

Question 43

Financial methods of motivation

Answer 43

Piece rate - paid per unit produced Salary schemes Commission Performance related pay

Question 44

Taylor's motivation theory

Answer 44

Workers motivated by money and do minimum work if left Used scientific management - jobs done most efficient way, all workers do job like that, right workers Favours division of labour ( small repetitive tasks) Pay according to quantity produced - motivate workers, higher productivity so fewer workers needed

Question 45

Advantages of employee representation

Answer 45

- Often more effective to approach an organisation as a group as they have bigger influence and more forceful - Collective bargaining helps achieve long term aims - Helpful for management to have a small representative group - senior management get direct insight into concerns of workforce

Question 46

Disadvantages of employee representation

Answer 46

- It can lead to industrial action eg decreased productivity or strike - Strikes can turn violent - Leads to lost profits - Industrial action may undermine trust between employer and employee .breakdown. Communication will damage the relationship