HUMAN RESOURCE MANAGEMENT Flashcards
Define soft approach
When a business sees workers a integral, vital part of the business. Business wants to nurture and foster employees and their key skills, develop their potential
Characteristics of a soft approach
- Managers trust workers and value their input (McGregor theory Y).
- Democratic/Laissez- faire leadership.
- Training and staff development (appraisal)
- Employee participation, intrapreneurship, quality circles, teamwork…
- Permanent/full-time contracts
- Fringe benefits, good conditions.
Advantages of a soft approach
- More motivation and creativity = more productivity: main aim. If workers feel part of a
team, happy + satisfied = likely to be more motivated, so more productive. - Lower labour turnover + absenteeism: as conditions, fringe benefits, are likely good, so
workers less likely to leave. Recruitment + re-training costs avoided, risk of employees
going to the competition is reduced.
Define hard approach
Business sees no difference between workers and other factors of production
Characterisitcs of a hard approach
- Cost-cutting mentality
- Theory X
- No employee participation
- Autocratic leadership
- Minimal training
- Flexible contracts (0-hour, temporary, part-
time, ‘gig’ contracts):
Advantages of a hard approach
1) Operational flexibility: esp. for businesses w/
seasonal/variable/difficult to predict demand – new firms-.
2) Reduced fixed costs:
less/lower wages: NI contribution does not have to be paid (usually a very big sum)
3) Minimal HR issues/costs: for ‘gig’ contracts: these are not technically the business’s
employees! So: zero (OR reduced, for temps) redundancy costs, no/reduced NI costs…
Disadvantages of a hard approach
1) Low motivation + productivity: workers probably dissatisfied w/ job, always looking for other jobs = little motivation.
2) Likely high labour turnover: workers
always looking for something better, therefore, minimal worker loyalty.
3) Lack of continuity: can affect customer service: if teams/task units are constantly having people leave/enter, efficiency is reduced.
Soft approach to improve employee performance
These strategies must invlolve the workers. They aim to make workers feel valued to improve loyalty, quality and productivity.
- Improve hygiene factors + fringe benefits
- Introduce new financial incentives: PRP(performance-related-pay), share ownership schemes, profit sharing… (making workers feel part of the business)
- Job enrichment and enlargement: promotion, responsibility, job rotation…
- Management by objective
Hard approach to improve employee performance
Believe that underperforming workers only respond if faced with threats
- Threaten to/introduce ‘flexible’ (0-hour, temporary, part-time) to new employees
- Threaten to/dock pay
- Give verbal or written warning
- Dismissal
- Taylor’s theory: to increase falling productivity, implement financial rewards for increased rate of output per worker.
Define management by objective
A system designed to motivate + coordinate workforce. Business objectives are divided up into departmental targets, and individual employee targets. Managers pre- set targets with workers themselves, then manager meets workers during the year to see if they’re on course to meet targets; at the end of the year success is reviewed, + managers + workers discuss what needs to change to improve
Advantages of Management by Objective
- Clear idea of what managers + workers have to achieve: more likely to work hard and achieve objectives if you know your end goal.
- Foster worker-manager relations: minimizes conflict, reduces labour turnover (better
working environment = happier workers) - Allows monitoring progress and evaluating likelihood of business objectives being achieved.
Disadvantages of Management by Objective
- Costly + time-consuming: downtime is needed to perform appraisal, so this is time when
production is halted. - Leadership style must be democratic: 2-way communication is key. Autocratic MBO not
going to motivate workers or improve productivity. - Less likely to work w/ unskilled workers: managers’ + workers’ backgrounds v/
different.
Define Centralisation
Most decision-making is done at the top of the hierarchy. comunication is only one way, no feedback encouraged
Define Decentralisation
Decision-making passed down the hierarchy, delegating to middle/junior management. (Delayering means taking away levels of management from the hierachy)
Advantages of centralisation
- Decision-making is quick
- Management is more cohesive (instructions are the same for all, so managers’ ideas +
methods are clear and homogenous, so messages given to stakeholders/workers are
clear and consistent).
Disadvantages of centralisation
- Can alienate those further down the hierarchy. - Usually this goes hand in hand w/ autocratic management = can demotivate workers further.
Advantages of Decentralisation
- May lead to: global localisation = decision-making brought closer to the customer, so managers can respond faster to changes in consumer tastes.
- Reduced fixed costs (delayering) as managers are removed = so have to pay less salaries.
Disadvantages of Decentralisation
- Middle/junior managers given more decision-making responsibilities may not have the
experience/skills, so get overwhelmed. - Leads to demotivation and ineffective decision-
making.
Name the felxible employment constracts
- Working from home
- Anualised hour contracts
- Compressed hour contracts
- Flextime hour contracts
- Shift work
Advantages of anualised hour contracts
Operational flexibility: choose how many hours workers work depending on demand; there is no legal limit on how many hours workers can work per week/month, only per year, so in periods of high demand workers on these contracts can work lots of hours.
- Less recruitment: less costs! Don’t have to hire more workers in peak periods, can use existing ones.
- Some employees may like this: they get periods of intense work, but then periods where they work very little/can go on holiday.
Define Anualised hour contracts
workers work a given number of hours in a year only.
Disadvantages of anualised hour contracts
- Burnout = lower productivity: in peak periods, workers on these contracts may work 50-60hour weeks for several consecutive weeks. Likely to get overworked, tired = less productive.
- Running out of hours: if management have miscalculated the hours needed, workers may work all their hours but there is still work to do, so production halts. Inefficiency.
Define Compressed hour contract
X amount of hours in one week; if those hours are finished in 4/3 days, the rest of the days are off. Same advantages and disadvantages anualised
Define flextime contracts
workers have a given number of hours they have to work per day, but those can be worked at the point of the day they choose (EG: 6am-1pm or 12pm-7pm). There might be a core time (EG 11-2pm) where everyone must be at work.
Advantages of flextime contracts
- Operational flexibility.
- If business has international operations, it’s more likely that there will be people working all day so everyone is available to talk w/ clients/colleagues in different time zones.
Disadvantages of flextime conracts
Meetings/teamwork activities must happen during the core time – may be difficult, inefficient.
Shift Work
Business runs 24/7, workers work different shifts (EG: security firms, hospitals…).
Workers may like this, as usually shift work is more highly paid, and you work less days.
HWVR; may lower productivity/motivation (EG: night shifts = v/ difficult).
Define Organisational structure
Internal formal framework of a business that shows the way in which management is linked together and how authority is transmitted
Define chain of command
Number of levels of management in a hierarchy OR how does communication pass through the organisation
Advantages of a wide span of control
- Faster communication – less chances of communication breakdown, senior managers receive information from the bottom faster and more accurately.
- More room for delegation for workers, can be
motivating.
Disadvantages of a wide span of control
- Managers overworked = overstressed = high
burnout = higher turnover, absents. - Managers have any subordinates, so access to speaking to management is more limited.
Advantages of a narrow span of control
- Better opportunities for promotion -> bigger career ladder.
- Managers have few subordinates, so relationship is close and communication is
easier. - Managers have more control over works, can better monitor each’s progress as they’re few.
Disadvantages of a narrow span of control
- Slower communication.
- Less delegation and empowerment, more
opportunities for manager’s to over supervise, may be demotivating.
Define matrix structure
An organizational structure that creates project teams that cut across traditional functional departments.
Define delayering
Removal of one or more of the levels of hierarchy from an organizational structure.
Advantages of delayering
- Shorter chain of command
- Improve communication
- Gives remaining workers more responsibility and authority
- Reduces management costs
Disadvantages of delayering
- Wider span of control (becomes flatter and wider)
- Experienced and skilled managers may be lost
- Can be expensive to carry out.
Define Divisional organizational structure
A structure that organises the activities of a business around geographical areas or product groups.
Advantages of Divisional organisational structure
- Focus on specific market segments
- Respond to consumer needs and market changes more quickly
- Measure the performance and profitability of each division separately.
Disadvantages of Divisional organisational structure
- Duplication of roles, each division has its own sales team.
- Rivalries between divisions might develop as they each focus on divisional objectives
- Loss of central control over each division.
Define Functional structure
Departments have clearly defined roles and responsibilities in a specialist area such as marketing, finance, human resources or operations.
Advantages of a Functional structure
- High level of departmental loyalty
- It encourages motivation as employees become specialists.
- More effective communication
Disadvantages of a Functional structure
- The structure is vertical, may not allow for good connections.
- Coordination between departments is therefore difficult when trying to develop a new product.
- Communication flows through departmental heads, may make employees feel remote.
- Could lead to a competitive environment between departments which may not benefit the whole organization
Advantages of a Matrix structure
- Better quality decision-making (teamwork + employee participation)
- Empowerment + delegation to employees = incr. motivation
- Project focus rather than department focus
Disadvantages of a Matrix structure
- Some departments may overspend
- Some managers may feel undermined as
workers can make many decisions by themselves - If a business is changing from hierarchical to
matrix, may encounter management resistance
Characteristics of a Matrix structure
- Two-way communication, feedback encouraged.
- Short chain of command
- Wide span of control
- Decentralised
- Task culture: employees not defined by their job description, they team up together to work on a task/solving an issue.
- Teamwork encouraged.
Characteristics of a Flat organizational structure
- Each worker is delegated more authority as there is less direct control from a manager.
- Employee empowerment can be an important motivational force
- A short chain of command results in better communication.
- There are fewer level of hierarchy so fewer middle managers are needed, reducing business costs.
Define line function
Line managers have authority over others in a hierarchical structure
Define staff function
Staff managers are ADVISORY BODIES, do not have authority over others, but support and advise line managers via specialised analysis.
Shamrock organisation
- Flexible and adaptable organizational structure that consists of 3 distinct workforce groups: core staff, flexible workers, and outsourced contractors.
- Tries to reduce the number of workers hired under full-time, permanent contracts, reducing costs.
Define effective communication
The exchange of communication between groups of individuals with feedback.
Why is effective communication important for businesses
- Workers will now what/when/how/why they have to do, and can now be productive
- Managers making most effective decisions, more likely to happen if there is discussion and
input from more people (workers often know best) = best quality decisions. - Workers feel more on board - as part of the business not alienated - more motivated
- Good for various different stakeholders
- Got to be careful about what information is given
- Increase efficiency, reduce errors - duplication
Define Formal communication
Using established, official lines of communication within the business
(meetings, email)
Define Informal communication
Unofficial lines of communication, from within the workforce (rumours).
- Too many rumours can destabilize business, worsen relations.
- Sometimes managers use this to test the waters on something, there is no record of it so it can’t be pinned down.
Define Horizontal communication
Communication between workers on the same level of management in the hierarchy. More likely to be more common in a matrix structure, and also within informal communication.
Define Vertical communication
members in different levels of management in the hierarchy communicate; can be one-way or two-way communication.
- One-way vertical is communication only downwards (orders), feedback discouraged –no participation in decision making
- Feedback is encouraged with two-way vertical communication
What are the methods of communication
- Verbal
- Digital
- Visual
- Written
Advantages of verbal communication
- As it is face to face, feedback is instant (eg: you can tell by someone’s facial expression if they don’t understand anything, you cannot tell if the message is given via email).
- Can use gesticulation and intonation to emphasise certain things.
- Receiver can ask questions
- In crisis situations, verbal is most vital.
Disadvantages of verbal communication
- No record/proof that that communication happened (accountability issues?).
- If what is being discussed is v/ technical/complicated, may be difficult to retain if it is just transmitted verbally.
- If workers aren’t allowed questions/feedback = method is worthless.
Advantages of written communication
- Permanent record
- Easier to retain: don’t have to read it/digest it all in one go, can take more time
- Can be distributed to more people
Disadvantages of written communication
- Non-instant feedback, slow, sometimes non-existent (some may be discouraged from asking questions if they have to write an email/letter).
- Information overload (i.e. very long report, v/ difficult to read and retain key points)
- Open to misinterpretation (no body language to rely on, also language tends to be
Advantages of visual communication
- Can support other forms of communication: adding a chart/diagram to a speech (verbal) or
an email (written) may make the content easier to understand. - Can be downloaded and stored
Disadvantages of visual communication
- Can be misleading: some diagrams/charts may give misleading impressions of the
information trying to be transmitted. EG: PIE charts
Advantages of digital communication
quick + efficient; videoconferencing gets rid of global barriers, can have an international
meeting for free; advanced IT supports JIT, which can make business more efficient;
computers communicate in real time, so updates can be instant (EG: number of X products left); can take of advantage of viral marketing and social media.
Disadvantages of digital communication
Disadvantages: information overload (emails sent TO ALL, most will be irrelevant); vulnerable to hackers (unless you get a firewall); can be expensive to acquire the hardware and software to set up an intranet, computers for everyone…; may have to train workers on how to use unfamiliar technology.
Barriers to effective communication
- Language: if either sender/receiver is not using their first language, could lead to misinterpretation so flawed decisions. Perhaps misunderstandings can lead to workers getting upset.
- Physical: noise
- Attitudes/relations between senders and receivers: especially if senders are managers
and workers are receivers and relations are bad (“us and them”), may lead to hindered/slowed down communication and actions. - Long chain of command: message gets distorted.
- Information overload
How can communication be improved
- Delayering: to shorten chain of command, quicker + better communication.
- Change corporate culture: style of leadership to more democratic.
- Training: perhaps workers not knowing how to respond/what to do when they receive certain messages is what is causing communication to be less effective.
- Invest in AI
Define leadership
The ability to organise and motivate a group of people to want to reach an objective.
Types of leaders in a business
- Directors: usually elected by shareholders, direct a particular functional area.
- Managers: authority to instruct subordinates and make decisions.
- Supervisors: in charge of a group of employees, have delegated powers from the manager. Don’t really have authority that is not delegated, don’t make tactical decisions.
- Worker representatives: trade union rep.
- Informal leaders: identified by Mayo, informal power and respect over colleagues. Working
against the informal leader is counter productive.
Leadership theories
The Great “Man” theory: a good leader is born with these leadership skills, they are inherent leaders, destines to be great leaders.
Trait theory: born with some traits that make them good leaders, others aren’t. If someone lacks many of the traits, it is unlikely that they’ll be a good leader.
Behavioural theory: one does not have to be born a leader; they can develop those traits over time. They can learn from experience, from watching others exhibit leadership skills. The best leaders have this skillset: technical skill, human skill (ability to interact and motivate), conceptual skill (creativity).
Contingency theory: one style of leadership does not fit everyone/all situation: the situation (EG: crisis situation = autrocratic), type of employees (creative? Skilled? High status or low-status?), and level of power (reputation? Level of management? Perception the employees have of manager, of how much authority they have…) will dictate the best/most suitable leadership skills.
Power & Influence theory: most workers will only want to be led by leaders if they have
one or both of these traits: expert knowledge AND/OR big personality/charm. (does he
actually know what he’s doing, or does he seem like he knows what he’s doing?)
Transactional theory: suggests employees will only do something if there’s a reward on offer. If leaders accept this, they must guide + support the employee, making it clear that there will be a sanction if the target is not reached. Adopted by many in times of emergency.
Transformational leader theory: related to change management: leader must be very
dynamic. This leader may have to change corporate culture, organisational structure,
communication systems…KEY: employee is v/ important, pivotal to strategic implementation. Leader inspires worker to follow their vision.
Define emotional inteligence
Understanding and managing your own emotions and influencing the
emotions of others.
Golemans four competencies of emotional inteligence
-Self-awareness: realistic view of their own abilities; self-confidence in their own
thoughts and abilities. And realistic view of the abilities of others! (Important so managers delegate the correct tasks to each worker – don’t give a very capable worker things that are beneath him, or a not so able worker too difficult tasks). Understand and comfortable with their own emotions. Self-aware managers tend to have a strong gut- feeling which is very useful for decision making.
- Social Awareness: empathy! For managers, being able to understand how decisions will impact on different workers and other stakeholders.
- Self-management: controlling and managing impulses/emotions/language to avoid acting w/out caution. Strong self-control. (To: not show/convey stress and panic in crisis situations; workers should feel protected and inspired by a ‘brave manager’ even if
inside they are feeling very stressed) (To avoid lashing out at workers, getting irritable…). Also able to recover from stress much quicker.
- Social skills: ability to manage individuals and groups effectively. Knowing how each person reacts to different things; what makes each worker angry, stressed, happy, calm…this helps you treat each worker individually, based on their personal
idiosyncrasies, which will lead to better, more trustful relationships. Also being able to converse with people on different levels of the hierarchy.
