HRM Flashcards
Human resource management involves….
Hiring and developing employees so that they become more valuable to the organisation
Example of formative appraisal
An employer meets with their supervisor weekly to review performance and make necessary adjustments
Formative appraisal
A continuous approach to appraisal that occurs during the contact period so that adjustments in performance and training can be made
Disadvantage of formative appraisal
Can focus too much on the process rather than the final outcome / product
Advantage of formative appraisal
Provides timely feedback so that the employee can make adjustments
Example of summative appraisal
An employee meets with their supervisor to review annual performance and find out whether their contract will be renewed
Summative appraisal
Appeasing the performance of an employee at the end of the contract period, usually according to set standards
Summative appraisal advantage
Employees are provided clear standards and time to achieve them prior to being evaluated
Summative appraisal disadvantage
Can focus too much on the final outcome rather than the process. Feedback is often provided too late
360 degree appraisal
Receiving appraisal from not only the line manager, but also colleagues, customers, and self
360 degree appraisal example
An employee gathers advice from their boss, colleagues, and clients regarding their performance
360 degree appraisal advantage
Multiple perspectives (including the customer) can provide a more complete appraisal
360 degree appraisal disadvantage
Complex and takes a lot of time to complete
Self-Appraisal
Employees reflecting on their own performance
Self-Appraisal example
An employee completes an online form reflecting on their performance
Self-appraisal advantage
Employees are usually more aware than managers of their own performance
Self-appraisal disadvantages
Employees may not always be honest
On the job training
Training (skills, knowledge, and competencies) that takes place within the usual workplace or environment
On the job training example
Training received while shadowing an experienced colleague at work
On the job training advantage
Usually costs less than off the job training
On the job training disadvantage
Can be disruptive to the regular work environment and employees face distractions from their regular work
Off the job training
Training that takes place outside of the usual workplace or work environment
Off the job training example
Training received by an expert in the field at a remote location
Off the job training advantage
Allows employees to get away from the everyday pleasures and distractions of work and focus on the training
Off the job training disadvantage
Can be more costly than on the job
Cognitive training
Training aimed at improving general knowledge, brain functioning, and thinking
Cognitive training example
Training to improve memory
Cognitive training advantage
Due to the dynamic nature of business, general cognitive training may be more appropriate, as it is difficult to know what specific knowledge will be required in the future
Cognitive training disadvantage
May not develop specific expertise within the workforce
Behavioural training
Training to help employees apply their knowledge and skills in various situations
Behavioural training example
Training on stress management
Behavioural training advantage
Can be quite effective for employees working in the service industry
Behavioural training disadvantage
Not always easy to identify which types of behaviours are required
Recruitment
Another word for ‘hiring’ A key function of HRM that describes attracting, selecting, and appointing candidates for jobs within an organisation (this can be permanent or temporary positioning) - they are the best qualified candidate within or outside the business for a job opening, in a timely and cost effective manner
The recruitment process step 1
Define the job opening: the organisation identifies and and analyses human resource needs of the organisation to achieve its objectives. This can result in identification of shortage in the current workforce and need for recruitment. A job description outlining roles or responsibilities as well as specifications required or preferred is written. This sets benchmarks and goals for the employees to use during the appraisal process
The recruitment process step 2
Attract potential employees but posting the job description and advertising. Technology plays a large role as organisations take advantage of their website, external job boards, and social media for advertising
The recruitment process step 3
Select the right candidate: initial screening of applicants takes place to narrow the search. As well as a face to face interview, organisations may choose to give aptitude test, preliminary phone or video interviews, candidate references or background check to determine the best candidate
The recruitment process step 4
Finalise recruitment: offer the position to the candidate and negotiate details of their employment contract. In most cases this process will lead to induction training to help the new employee adjust to their new job, environment, and co workers
Labour turnover
the proportion of a firm’s workforce that leave during the course of a year.
Labour turnover formula
Number of employees leaving during period / average number employees during period X 100
Teleworking/homeworking
A work flexibility arrangement under which an employee performs the duties and responsibilities of such employee’s position and other authorised activities from an approved worksite other than the location from which the employee would otherwise work
Flexitime
A work schedule other than 8 hrs per day with a 30-60min break, 5 days per week. An employee is unable to make weekly or daily adjustments to their approved Flextime schedule, but an adjustment may be permitted on occasion with prior approval of the supervisor - employees set their own work schedule within certain constraints
Teleworking Positives for employees
Relaxed home environment, no commutes saving time and money, feeling more job satisfaction, no distraction or office politics, less viruses so less sick days, people will still work on sick days
Teleworking negatives for employees
People will miss the interactive aspect of the workplace, colleagues can’t bounce ideas off each other, people might be less motivated, inability to provide themselves with resources required that offices supply eg: high speed internet, more easily distracted, low stakes so work not as high of a standard, harder to keep track of important assignments, easier to miss important information
Teleworking Positives for employers
Reduces office costs (space, equipment, electricity etc), still technological ways to communicate with staff, staff can be hired for any country - more candidates fitting the ideal brief, less excuses not to work if they can also deal with personal issues, employees might work longer hours and do more tasks, employees less likely to leave
Teleworking negatives for employers
Employees have less control over employees, struggle to monitor their employees, unable to prevent their employees from being distracted, never know what employees are doing, will not get to know the employees finding it harder to offer feedback, promotions, certain assignments, according to strengths, weaknesses, and dedication, employees beneficial to the company may not enjoy teleworking
Human resource planning
A process that identifies both current and future HR needs for an organisation to achieve goals. It is a link between HRM and the company’s strategic plan
Dismissal
The act of terminating the employment of an employee by the employer in an organisation - also known as firing and sacking
Redundancy
A situation where the position or employment or an employee is or will become surplus to the requirements of the employer’s business (termination of employees for business reasons) (one of the reasons for dismissal of a person’s employment under fixed-term contract is when the work does not exist anymore or has for diminished. Non-existence may be lack of projects or finds for research etc
Outsourcing
Having certain job functions done outside the company is read of having an in-house department or employee handle them. Functions can be outsourced to either a company or an individual
Offshoring
The relocation of a business process from one company to another - typically an operational process such as manufacturing or supporting processes such as accounting (typically this refers to a company business, although state governments may also employ offshoring)
The key functions of management:
Planning, organising, leading, controlling
The key functions of management: Planning
Defining the goals of the organisation and determining the activities and resources required to achieve them
The key functions of management: Organising
Creating an organisational structure that is suitable for the achievement of the agreed goals and objectives of the organisation
The key functions of management: Leading
Guiding and motivating others to work effectively to achieve the organisation’s goals and objectives
The key functions of management: Controlling
Checking to determine whether an organisation is progressing towards its goals and objectives and then taking corrective action if it’s not
Management involves:
Planning resources and tasks to achieve goals set, budgeting how funds will be spent, staffing - which is the process of recruiting, training and compensating employees, organising activities to particular people to carry them out, controlling activities done such that they are not different from pre-planned ones
Management is about:
Making sure that resources such as time, money, HR, and equipment are used efficiently and effectively to achieve goals/tasks. The primary focus is work or tasks
Leadership is about:
Knowing what is best for an organisation and leading them in the right direction - thinking through the right action, being able change
Leadership involves:
Having a long term vision, motivating and empowering people, inspiring others, encouraging teamwork, listening to people and getting to the root causes quickly and effectively, mentoring by imparting knowledge and wisdom to the team and its members
Styles of leadership
Autocratic, democratic, paternalistic, laissez-faire, situational
Autocratic leadership
Leaders who take full authority and assume full responsibility over their employees. They centralise power and decision making in themselves and expect employees to do what they are told. It is typically negative based on threats and punishment, it can be positive if they choose to reward employees
Democratic leaders
Leaders who decentralise authority with decisions arising from consultation with subordinates and participation by them. Employees are informed about conditions affecting their jobs, which encourages them to express their ideas and suggestions
Paternalistic leadership
A paternal leader adopts a fatherly style, exercising the organisational power to control and protect subordinate staff who are expected to be loyal and obedient. It is suitable for businesses with a formal hierarchical structure and where creative thinking is not solicited from staff
Laissez-fairs or free reign leaders
Avoid power and responsibility, depend upon the group to establish its own goals. Useful in situations where a leader can leave a choice entirely to the group
Situational leader
Involves adjusting leadership styles depending on the abilities of subordinates. Under such leadership style, it is important for the leader to find the right balance between giving directions and providing support and respond with a style that is appropriate to the situation
Advantage of autocratic leadership
Effective in emergencies when absolute followership is needed
If business leaders do not change accordingly to respond to change in the global world, this may result in costs in terms of:
Reduced creativity, missed opportunities, cultural blundering
Some cultures value:
Individualism, others value group cohesion
Self-management techniques
Perseverance, time management, goal setting
Motivation is….
The entire class of drives, desires, needs, wishes, and similar forces that satisfy a want or goal
Frederick Taylor - scientific management
Reduce inefficiency of workers and managers through objective laws, encouraged specialisation and repetitive work, clear division of work between managers and workers, reducing inefficiencies allowed for higher wages
John Stacey Adams - equity theory
if the comparison is equal, the employee feels treated fairly, if their inputs feel greater than the outputs, they may respond by reducing effort, becoming disgruntled, absenteeism, and in extreme cases, resignation
Equity
A radio (balance) between an individual’s job inputs and outputs in comparison with those of other people
Input examples:
Effort, loyalty, skill, ability, commitment, enthusiasm, hard work, adaptability, determination
Outputs
Salary, promotion, status, recognition, praise, reputation
Frederick Herzberg - two factor theory
Motivators and hygiene factors
Herzberg - two factor theory motivators
Sense of achievement, nature of job, recognition of achievement, responsibility, chance of promotion, possibility of improvement
Herzberg - two factor theory hygiene factors
Pay, inability to develop oneself, conditions of work, treatment at work, relationship with management, company policy, feelings of inadequacy
Intrinsic motivation aspects
Autonomy (control over work), mastery (get better at what they do), purpose (part of something bigger than they are)
Maslow - hierarchy of needs
Psychological needs of employees- The 5 levels in a hierarchy of human needs that employees need to have fulfilled at work: self-actualisation, esteem, social, safety, and psychological
Needs in Maslow’s hierarchy
Self-actualisation (intellectual needs, fulfilling potential, achieving targets), esteem (self-respect, level of status), social (felling wanted, sense of belonging, part of team), safety (safe working environment, job security), psychological (basic needs - eg: food, shelter)
Critical to the success of any business….
Social objectives, satisfying the needs and wants of all stakeholders, ethics
Financial rewards
Commission (salespeople), stock options, bonuses (managers), piece-rate (production employees)
Financial rewards
Performance-related pay (PRP), profit-related pay, commission, fringe payments (perks), employee share-ownership schemes, salary, wages (time and piece rates)
Non-financial rewards
Teamwork, empowerment, job enlargement, job enrichment, job rotation, purpose / the opportunity to make a difference
Job enrichment
A motivational strategy that emphasises motivating the workers through the job itself by giving them opportunities to make use of the different skills they have
Job rotation
Involves moving employees from one job to another to give employees more variety in their work day. Although one can see the problem of having to train employees to do several different operations, the resulting morale building and motivation more than offsets the additional costs
Job enlargement
Increase in job tasks and responsibilities to make a position more challenging - tasks added at the same level as those in the current position - Modifying the job design of multiple workers into one position
Teamwork
When employees work cooperatively in small groups with a common aim, the teams decide between themselves how their work would be distributed and how to solve the problems that arise
Empowerment
Involves giving more powers to employees to make decisions, have more say in what they’re doing, while increasing feelings of accountability among employees, some decisions may turn out to be quite costly for the business or not fully productive
Organisational culture
A set of values and beliefs that are shared by people and groups in an organisation
3 levels of business culture
Artifacts, basic assumptions, espoused values
Artifacts
Things that one sees, hears, and feels when you walk into an organisation
Espoused values
The reasons that we give for doing what we do
Basic assumptions
The beliefs that organisational members take for granted
Schein’s theory attributes/artifacts
How the business culture is presented and illustrated to the audience - like the dust cover of a book
Schein’s theory professor or espoused
Slogans, statements, and projects of the business - text inside a book
Schein’s theory organisational assumptions
How things really work in the business could be the hidden message or purpose (purpose behind the book)
4 types of corporate culture (gods of management - Charles Handy)
Power culture, role culture, task culture, person culture
Business culture depends on….
Company history, ownership, organisation structure, technology, environment
The power culture - cooperate culture
Commonly found in small entrepreneurial organisations, the power culture is described as a web. Centralisation of power is the key feature of this culture, there is a central power source, and rays of influence are spread out from the centre
Advantages Power culture - cooperate culture
Decisions can be made quickly as there is little communication
Disadvantages Power culture - cooperate culture
Results in a D motivated workforce due to lack of consultation and size can be a problem – the web can break if it has to support too many activities
The person culture - corporate culture
Individuals are central, the organisation exists only to serve the interests of those within it. Can be found in communities such as Kibbutzim - Israel’s cooperative communities. Other examples included barristers and architects partnerships, where there is a cluster of individuals all operating at the same level
Advantage The person culture - corporate culture
Many people opt for this culture since hierarchies are impossible except by mutual consent
The role culture - corporate culture
Based on rules to abide by, and a hierarchy, role culture is based on an employee’s position in an organisation - so a manager has more power than an employee. Role culture organisations are organised by business functions such as HR, marketing etc. so each staff remember works to a specific role. For example, government departments in the public sector
Advantages - The role culture - corporate culture
Best suited for organisations which are stable and not subject to constant change
Disadvantages - The role culture - corporate culture
There is little scope for individual initiative and individual development, and people avoid taking risks
Task or team culture - corporate culture
With emphasis placed on completing a specific task, task cultures are job or project orientated. Instead of individuals determining the way in which the work is organised or even the rules that govern how work should be organised in a task culture the task determines the way in which work is organised. Examples of task culture are found at management consultancy firms like PWC. It is best suited when projects require specific skill sets and problem solving
Advantages Task or team culture - corporate culture
Provide rewarding environments to work in, employees have considerable freedom
Disadvantages Task or team culture - corporate culture
There is a lack of formal authority, making management and control very difficult
Organisational value is comprised of:
Values, attitudes, beliefs, practices, and the norms of an organisation
Influencing cooperate culture
A long term process which is dependant on factors such as the size of the business, the way it is managed, the process mergers etc. what often changes is not culture, but is the way individuals think, value, and do
Culture clashes can occur
When an individual enters an organisation, or two or more organisations merge (or entering into a new country)
Conflict can be….
Formal or informal
Cause of conflict include….
Different languages, different leadership styles, task or relationship orientated, cultural tension / different cultures, different times (whether this is a priority)
Salary
Usually associated with ‘white collar’ workers such as managers, professionals, and office employees. Usually paid on a monthly basis
Wages
Often associated with ‘blue collar’ workers. Usually paid either on an hourly basis (time-rate) or on The quantity of output produced (piece-rate)
Profit-related pay
A financial rewards that an employee receives out of the profits of the business. It is also referred to as a ‘bonus’
Employee share-ownership scheme
Under this reward system, employees are allowed to purchase shares in the company
Fringe benefits
Rewards offered to employees in addition to their wages or salaries and includes benefits such as company cars, medical insurance, discounts on company products, cheap loans, subsidised meals etc. The benefits are usually exempt from taxation
Commission
Most common among sales staff. This type of financial reward links a sales employee to what sales he or she can deliver. Can be paid in addition to or instead of their base pay
Performance-related pay
A reward system where payments are made based on the performance of the employee. It is paid in addition to the basic salary
Delegation
The assignment of any responsibility or authority to another person (normally from a manager to a subordinate) to carry our specific activities. It is one of the core concepts of management leadership
Span of control
The number of subordinates a supervisor has
Levels of hirearchy
The arrangement of individuals within a corporation according to power, status, and job function
Chain of command
The hierarchy of authority within an organisation. Those at the top direct and control activities of the members below them. (It permits coordination of the different individuals in groups engaging in task specialisation to acomplish organisational goals) Sometimes efforts must be coordinated to the overall goal is acheived
Bureaucracy
A system of administration distinguished by a clear hirearchial structure, rigid division of labour, rational and inflexible rules, and impersonal relationships. Once placesd, they are hard to dislodge or change
Centralisation
Process by which the activities of an organisation, particularly those regarding planning and decision making become concentrated within a particular location or group, keeping important decision making powers with the head of the organisation
Decentralisation
Transfer of decision making power from the top management to middle or lower level management (the delegation of authority at all levels of management)
Delayering
The process of removing layers of hierarchy between the highest and lowest levels to boost operational efficiency, creating less layers of an organisational structure
Organisational chart
A diagram that outlines the internal structure of a company. It visually outlines the roles, responsibilities, and relationships between different individuals within the company. It can depict the organisation as a whole, or be broken down by department
Flat/Horizontal organisation
An organisation with a structure that has few or no levels of middle management between staff and executives, promoting increased involvement in decision making processes
Tall/Vertical Organisation
An organisation with many levels of hierarchy. At the top is the CEO, followed by a large amount of middle management before the “front line” employees. The larger the organisation, the taller the hierarchy grows
Hierarchical Organisation
Follows the layout of a pyramid. Every employee except one, (CEO), is subordinate to someone else within the organisation. The layout is multiple independent factors that defend into the base of staff level employees at the bottom
Motivation
Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.
Social skills
The ability to participate and collaborate with others whilst showing awareness and respect for other cultures, varying points of view, and individual differences
Employers’ main interests
Low employee turnover, productive workforce, meeting sales targets, maximum profits
Employees’ main interests
Job security, professional development, satisfactory working conditions, steady income and benefits
How do employee representatives achieve the main interests of employees?
Collective bargaining, slowdowns / go slows, work-to-rule, overtime bans, strike action
In similar fashion, what methods are used by employers representatives to achieve the main interests of employers?
Collective bargaining, threats of redundancies, changes of contract, closure and lock-outs
Approaches to conflict resolution
Conciliation and arbitration, employee participation and industrial democracy, no-strike agreement, single-Union agreement
Conciliation and arbitration
Conciliation- The practice of bringing together the parties in dispute with an independent third party, so that the dispute can be settled through a series of negotiations. Arbitration is similar, involving an independent third party
Employee participation and industrial democracy
Involving employees in the decision-making process relating to leadership styles and motivation. - “Regular participation of employees in deciding how their work is done, making suggestions for improvement, goal setting, planning, and monitoring of their performance. Encouragement is based on the thinking that people involved in a process know it best, and that involved employees are more motivated to improve their performance.”
No-strike agreement
An agreement made between employees and employers stating that the employees will not strike as long as the employers keep their side of the agreement. This can be included within the Collective Bargaining Agreement.
Single-union agreement
Having a single Union (voice) to represent the employees and employers avoid having to negotiate with multiple Unions.
Union
A group of workers joined together to achieve common interests
Closure and Lock-outs
A lock out is an “Industrial action during which an employer withholds work, and denies employees access to the place of work. A strike by the management to compel a settlement to a labor dispute on terms favorable to the employer. When lock out action is taken by several employers, it’s a joint lockout.
Threats of redundancies
Redundancy is “Elimination of jobs or job categories caused by downsizing, rightsizing, or outsourcing.” When businesses are facing financial problems, Managers use threat of Redundancy to negotiate lower wages for employees
Changes of contract
Employers can try and change an employee’s contract upon renewal so terms and conditions favor the employer. For example, to save money and earn the business more profit the employer could reduce the amount of pay or benefits. In most countries, laws protect both the employee and employer to avoid any unfair changes to an existing contract.
Collective bargaining
A process between an organization’s management and a trade union representing its employees, for negotiating wages, working hours, working conditions, and other matters of mutual interest. It is the fundamental principle on which the trade union system is based.” - From the Employees’ perspective, it allows workers to join forces and put more pressure on Management to achieve their interests, from the Employers perspective, it allows Managers to negotiate with 1 group of people rather than having to negotiate individually. Collective Bargaining could also be seen as a way to prevent conflict
Slowdowns / Go-slows
Slowdowns are an Industrial action when employees deliberately reduce the rate of output, without completely withdrawing their labor as in a full fledged strike
Work-to-rule
Where, in contrast to a strike, workers do not withdraw their labor. Instead, they stay on their jobs but drastically slow down the operations by punctilious adherence to a narrow interpretation of work rules included in the collective bargaining agreement.
Overtime Ban
When employees refuse to work longer than is required of them. For example, if office hours are from 8 to 5 employees will not work outside that time. Overtime bans may be used as labor action or another form of employee protest. It is considered less disruptive than a strike.
Strike action
When negotiations between employee representatives and employers fail to come up with a solution to conflict resolution.
Employees collectively walk out of their job, refusing to continue until a new offer in the negotiation process has been made. In many countries, employees have to vote for strike action.
Daniel Pink’s three intrinsic elements to motivation at work
Autonomy, mastery, and purpose
Autonomy - Pink’s intrinsic elements to motivation at work
The desire to direct our own lives4 main aspects include time, technique, team and task. Eg: some people allow workers to peruse individual projects. If managers want employee engagements they should encourage self direction and autonomy of employees
Mastery - Pink’s intrinsic elements to motivation at work
The desire to improve at something that matters, and enjoy satisfaction from progress. Lack of opportunity for self-improvement makes employees more demotivated. Managers should set tasks not too easy or too challenging, but allow them to stretch and develop skills and experience
Purpose - Pink’s intrinsic elements to motivation at work
The desire to do things in service of something larger than ourselves, people intrinsically want to do things that matter. EG: entrepreneurs are motivated to make a difference rather than just a profit. People want their time at work to matter. To do this, company mission and goals should be well communicated, employees need to understand these and appreciate how their work fits into what the organisation is about
