HR Flashcards
What does the HR department deal with?
-training job applicants
-administering employee benefit schemes
-personel
-inclusion/diversity
What does HR mean?
people of a business regarded as a significant asset in terms of skills and abilities
What is the HR department?
department of a business that deals with the hiring, administration and training of staff
What is an aim?
a long term goal a business sets
What is an objective?
a short term step the business wants to achieve to get towards the long term aim
What are the seven HR objectives?
-labour productivity
-employee engagement and involvement
-talent development
-training
-diversity
-alignment of values
-number, skills and location of employees
What are some internal influences on HR objectives?
-employee relations
-overall performance of business
-organisational structure
-corporate culture
-financial constraints
What are some external influences on HR influences?
-legislation
-actions of competitors
-political factors
-economic factors
-structure of the population
-technological factors
-social factors
What is the Hard HR strategy?
-treats employees as a resource to be monitored and used efficiently in order to achieve strategic objectives
What is the Soft HR strategies?
-treats employees as valuable assets, major source of competitive advantage which is vital in its importance to achieve strategic objectives
What are some key features of the Hard HR approach?
-minimal communication
-little empowerment
-autocratic
-tall organisational structure
-theory X
What are some key features of a Soft HR approach?
-competitive pay
-regular 2 way communication
-democratic
-theory Y
-flat organisational structure
What does labour turnover mean?
proportion of employees leaving a business over a period of time - usually a year
What is the formula for labour turnover?
number of employees leaving over a given period/AVERAGE number employed over the given period
x100
What does retention rates mean?
proportion of employees with a specific length of service (normally one or more years) as a proportion of the total workforce
What is the formula for retention rates?
number of employees with one or more years service/overall workforce numbers x100
What is labour productivity?
measure of the output per worker in a given time period
What is the formula for labour productivity?
output per period / number of employees per period
(measured in output not percentage)
What does labour costs per unit mean?
Measure of the average labour costs involved in producing one unit of output in a given time period
What is the formula for labour costs per unit?
total labour costs / total units of output
(measured in costs not percentage)
What does employee costs as a percentage of revenue (turnover) mean?
measures the percentage of sales revenue to cover labour costs
what is the formula for employee costs as a percentage of revenue?
employee costs / sales revenue x100
What does absenteeism mean?
proportion of employees not at work on a given day
What is the formula for absenteeism?
number of staff absent / number of staff in total x100
What are the benefits of high labour turnover?
-range of skills/ideas
-increased motivation in new staff
-pay less for unskilled workers
What are the drawbacks of high labour turnover?
-expensive
-lack of loyal staff
-loss of trained staff often to competitors
What are the key influences on job design?
-maintaining quality
-operational efficiency
-labour retention
-skills of the workforce
What is the hackman and oldham theory?
Task itself is key to employee motivation
-five key characteristics
What are the 5 characteristics of hackman and oldham model?
-skill variety
-task identity
-task significance
-autonomy
-job feedback
What is an organisational chart?
- diagrams that show the internal structure of a business
- making it easy to identify specific roles/ responsibilities of staff
What does ‘levels of hierarchy’ mean?
- layers of authority in a business
What are the two types of hierarchal structures in a business?
- tall structure
- flat structure
How many levels of hierarchy are there in a tall structure?
- 6+ levels of hierarchy
How many levels of hierarchy are there in a flat structure?
- 4 or less levels of hierarchy
What does ‘span of control’ mean?
- how many people you directly look after
What does ‘chain of command’ mean?
- how many layers are underneath you
What does delegation mean?
- passing down of authority to more junior employees
What is the type of leadership when having a narrow span of control and a tall chain of command?
- autocratic
What is the type of leadership when having a wide span of control and a flat chain of command?
- democratic
What are the advantages of having a tall organisational structure?
- more control over employees
- wide range of opinions
- more promotion opportunities
What are the disadvantages of having a tall organisational structure?
- higher staff costs
- decision making would take longer
- communicating would be harder
- can be demotivating as employees have less autonomy (autocratic)
What are the advantages of having a flat organisational structure?
- decision making would be quicker
- staff costs are lower
- more freedom for employees (less tightly controlled - democratic)
What are the disadvantages of having a flat organisational structure?
- few opportunities for promotion
- managers have less control
- productivity may decrease due to more freedom
What are the advantages of delegation?
- wide variety of opinions
- easier decision making
- motivates employees as they gain experience and responsibilities
What are the disadvantages of delegation?
- less control for managers
- less experienced (quality of work could decrease)
- stressful as lots of work
What is a matrix structure?
- combines the traditional departments seen with functional structures with project teams
What is are advantages of matrix structures?
- motivating
- easier, more efficient communication
- encourages collaboration and teamwork
What is a disadvantage of matrix structures?
- nobody has overriding control/ authority
What is centralisation and give an example?
- decision making is made firmly at the top of the hierarchy
- i.e. fast food franchises such as McDonalds
What is decentralisation and give an example?
- decision making is delegated down the hierarchy, away from the centre
- e.g. hotel chains such as Premier Inns
What are the advantages of centralisation?
- ensures consistency
- only one department (no duplication of roles)
- quicker to make decisions
- easier to implement common practice