HRM Strategy Flashcards
Define HRM Strategy
A long term plan for the management of an organisations human resources
What are some problems that can arise without good HRM strategy?
- Wrong number of employees/inappropriate skills
- Insufficient pay
- Inappropriate employment contracts
- Poor employee performance
What is Hard HRM?
An approach to management of employees that focuses on cutting costs
What is Soft HRM?
An approach to management of employees that focuses on their development, so they reach self fulfillment and are motiviated to stay and work hard in the business
What are the advantages of a Hard HRM Approach?
- Cost efficiency
- Flexibility
[Through part-time contracts]
What are the disadvantages of a Hard HRM Approach?
- Employee demotivation
- Increased recruitment and training costs in the LR [as temporary employees are frequently required]
- Bad publicity regarding insecure employement contracts
- Ignores research findings of Maslow, Herzberg and Mayo as workers do not have job enrichment, security or esteem
What are the advantages of a Soft HRM Approach?
- Higher employee morale and motivation
- Alignment with CSR
- Staff retention [Employee loyalty]
- Lower long run costs through increased productivity and lesser recruitment needs
What are the disadvantages of a Soft HRM Approach?
- Higher costs through training and development
- Labour costs become fixed through permanent contracts
Define Permanent Employment Contract
A contract that employs a worker unless they are dismissed, made redundant or decide to leave the organisation
What are the benefits of offering Permanent Employment contracts?
- Job security needs are satisfied [Maslows]
- Employee loyalty to the business may be high as they can feel more involved and connected
- Employers may be prepared to finance training schemes through planning for these employment contracts
What are the limitations of offering Permanent Employment Contracts?
- Labour costs become fixed and cannot vary with output - irrespective of demand
- Inflexible contracts as hours of work or number of workers cannot be varied
Define Temporary Employment Contract
An employment contract that is offered for a fixed period of time, usually 6 months. It can be renewed, but the employer does not have to do it.
What is the difference between a part-time contract and a zero-hours contract?
Part time: Workers are only contracted to work a certain number of hours a week, but it is less than full-time contracts.
Zero Hours: A contract that does not gurantee a minimum number of working hours a week, but employees are expected to be available for work whenever called
What is the gig economy?
An employment mix where temporary and part time contracts are common and workers are hired as freelancers or independent contractors
What are some advantages of Temporary Contracts to a Business?
- Labour is not a fixed cost, especially through zero-hours contracts
- Flexibility of contracts can bring in cost-advantages and improve competitiveness
- More workers can be available, which reduces low productivity through absenteeism
- Efficiency of employees can be assessed before offering full-time contracts
What are some disadvantages of Temporary Contracts to a Business?
- Communication can be difficult - investment in IT methods may be required as holding meetings with all employees is inefficienct
- More employees to manage - stress on HRMs
- Workers may feel less involved in the business - low motivation
- Difficult to establish a team-work culture through different working hours
- One-off gig contracts are becoming illegal in countries where workers must be offered a work status
Define Flexible Employment Contracts
A contract that allows employees more control over their work-life balance. It includes contracts such as flexi-time, job sharing, work from home etc.
What is a Flexitime Arrangement?
A flexible way of working that allows employees to fit their working hours around their individual needs and accomdate commitments outside of work
What are the benefits of Flexi-time Arrangements?
- More choice over working hours for employees
- Employers can attract well qualified recruits
- Improved motiviation
What are the limitations of Flexi-time arrangements
- Teamworking culture is difficult
- Communication is difficult
- Employee scheduling must be done carefully to avoid attendance problems
What is Home-Working?
When an employee works from home for a specific number of days per week, but keeps contact with the office by means of IT
What are the benefits of Home-Working?
- Increased productivity as it suits those with long travel times
- Reduces business costs of accomodating many employees
What are the limitations of Home-Working?
- Difficult to assess employee performance
- Reduces social contact
- Employees may require training to utilise IT
What are annualised working hours?
A contract offering a specific number of working hours for a year, but with flexibility for when those hours are worked
