HUMAN RESOURCE MANAGEMENT

Question 1

Define soft approach

Answer 1

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

Question 2

Characteristics of a soft approach

Answer 2

• 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.

Question 3

Advantages of a soft approach

Answer 3

• 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.

Question 4

Define hard approach

Answer 4

Business sees no difference between workers and other factors of production

Question 5

Characterisitcs of a hard approach

Answer 5

• Cost-cutting mentality
• Theory X
• No employee participation
• Autocratic leadership
• Minimal training
• Flexible contracts (0-hour, temporary, part-
  time, ‘gig’ contracts):

Question 6

Advantages of a hard approach

Answer 6

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…

Question 7

Disadvantages of a hard approach

Answer 7

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.

Question 8

Soft approach to improve employee performance

Answer 8

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

Question 9

Hard approach to improve employee performance

Answer 9

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.

Question 10

Define management by objective

Answer 10

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

Question 11

Advantages of Management by Objective

Answer 11

• 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.

Question 12

Disadvantages of Management by Objective

Answer 12

• 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.

Question 13

Define Centralisation

Answer 13

Most decision-making is done at the top of the hierarchy. comunication is only one way, no feedback encouraged

Question 14

Define Decentralisation

Answer 14

Decision-making passed down the hierarchy, delegating to middle/junior management. (Delayering means taking away levels of management from the hierachy)

Question 15

Advantages of centralisation

Answer 15

• 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).

Question 16

Disadvantages of centralisation

Answer 16

• Can alienate those further down the hierarchy. - Usually this goes hand in hand w/ autocratic management = can demotivate workers further.

Question 17

Advantages of Decentralisation

Answer 17

• 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.

Question 18

Disadvantages of Decentralisation

Answer 18

• Middle/junior managers given more decision-making responsibilities may not have the
  experience/skills, so get overwhelmed.
• Leads to demotivation and ineffective decision-
  making.

Question 19

Name the felxible employment constracts

Answer 19

• Working from home
• Anualised hour contracts
• Compressed hour contracts
• Flextime hour contracts
• Shift work

Question 20

Advantages of anualised hour contracts

Answer 20

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.

Question 21

Define Anualised hour contracts

Answer 21

workers work a given number of hours in a year only.

Question 22

Disadvantages of anualised hour contracts

Answer 22

• 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.

Question 23

Define Compressed hour contract

Answer 23

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

Question 24

Define flextime contracts

Answer 24

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.

Question 25

Advantages of flextime contracts

Answer 25

• 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.

Question 26

Disadvantages of flextime conracts

Answer 26

Meetings/teamwork activities must happen during the core time – may be difficult, inefficient.

Question 27

Shift Work

Answer 27

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).

Question 28

Define Organisational structure

Answer 28

Internal formal framework of a business that shows the way in which management is linked together and how authority is transmitted

Question 29

Define chain of command

Answer 29

Number of levels of management in a hierarchy OR how does communication pass through the organisation

Question 30

Advantages of a wide span of control

Answer 30

• 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.

Question 31

Disadvantages of a wide span of control

Answer 31

• Managers overworked = overstressed = high
  burnout = higher turnover, absents.
• Managers have any subordinates, so access to speaking to management is more limited.

Question 32

Advantages of a narrow span of control

Answer 32

• 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.

Question 33

Disadvantages of a narrow span of control

Answer 33

• Slower communication.
• Less delegation and empowerment, more
  opportunities for manager’s to over supervise, may be demotivating.

Question 34

Define matrix structure

Answer 34

An organizational structure that creates project teams that cut across traditional functional departments.

Question 35

Define delayering

Answer 35

Removal of one or more of the levels of hierarchy from an organizational structure.

Question 36

Advantages of delayering

Answer 36

• Shorter chain of command
• Improve communication
• Gives remaining workers more responsibility and authority
• Reduces management costs

Question 37

Disadvantages of delayering

Answer 37

• Wider span of control (becomes flatter and wider)
• Experienced and skilled managers may be lost
• Can be expensive to carry out.

Question 38

Define Divisional organizational structure

Answer 38

A structure that organises the activities of a business around geographical areas or product groups.

Question 39

Advantages of Divisional organisational structure

Answer 39

• Focus on specific market segments
• Respond to consumer needs and market changes more quickly
• Measure the performance and profitability of each division separately.

Question 40

Disadvantages of Divisional organisational structure

Answer 40

• 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.

Question 41

Define Functional structure

Answer 41

Departments have clearly defined roles and responsibilities in a specialist area such as marketing, finance, human resources or operations.

Question 42

Advantages of a Functional structure

Answer 42

• High level of departmental loyalty
• It encourages motivation as employees become specialists.
• More effective communication

Question 43

Disadvantages of a Functional structure

Answer 43

• 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

Question 44

Advantages of a Matrix structure

Answer 44

• Better quality decision-making (teamwork + employee participation)
• Empowerment + delegation to employees = incr. motivation
• Project focus rather than department focus

Question 45

Disadvantages of a Matrix structure

Answer 45

• 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

Question 46

Characteristics of a Matrix structure

Answer 46

• 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.

Question 47

Characteristics of a Flat organizational structure

Answer 47

• 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.

Question 48

Define line function

Answer 48

Line managers have authority over others in a hierarchical structure

Question 49

Define staff function

Answer 49

Staff managers are ADVISORY BODIES, do not have authority over others, but support and advise line managers via specialised analysis.

Question 50

Shamrock organisation

Answer 50

• 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.

Question 51

Define effective communication

Answer 51

The exchange of communication between groups of individuals with feedback.

Question 52

Why is effective communication important for businesses

Answer 52

• 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

Question 53

Define Formal communication

Answer 53

Using established, official lines of communication within the business
(meetings, email)

Question 54

Define Informal communication

Answer 54

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.

Question 55

Define Horizontal communication

Answer 55

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.

Question 56

Define Vertical communication

Answer 56

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

Question 57

What are the methods of communication

Answer 57

• Verbal
• Digital
• Visual
• Written

Question 58

Advantages of verbal communication

Answer 58

1. 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).
2. Can use gesticulation and intonation to emphasise certain things.
3. Receiver can ask questions
4. In crisis situations, verbal is most vital.

Question 59

Disadvantages of verbal communication

Answer 59

1. No record/proof that that communication happened (accountability issues?).
2. If what is being discussed is v/ technical/complicated, may be difficult to retain if it is just transmitted verbally.
3. If workers aren’t allowed questions/feedback = method is worthless.

Question 60

Advantages of written communication

Answer 60

1. Permanent record
2. Easier to retain: don’t have to read it/digest it all in one go, can take more time
3. Can be distributed to more people

Question 61

Disadvantages of written communication

Answer 61

1. Non-instant feedback, slow, sometimes non-existent (some may be discouraged from asking questions if they have to write an email/letter).
2. Information overload (i.e. very long report, v/ difficult to read and retain key points)
3. Open to misinterpretation (no body language to rely on, also language tends to be

Question 62

Advantages of visual communication

Answer 62

1. 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.
2. Can be downloaded and stored

Question 63

Disadvantages of visual communication

Answer 63

1. Can be misleading: some diagrams/charts may give misleading impressions of the
   information trying to be transmitted. EG: PIE charts

Question 64

Advantages of digital communication

Answer 64

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.

Question 65

Disadvantages of digital communication

Answer 65

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.

Question 66

Barriers to effective communication

Answer 66

• 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

Question 67

How can communication be improved

Answer 67

• 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

Question 68

Define leadership

Answer 68

The ability to organise and motivate a group of people to want to reach an objective.

Question 69

Types of leaders in a business

Answer 69

1. Directors: usually elected by shareholders, direct a particular functional area.
2. Managers: authority to instruct subordinates and make decisions.
3. 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.
4. Worker representatives: trade union rep.
5. Informal leaders: identified by Mayo, informal power and respect over colleagues. Working
   against the informal leader is counter productive.

Question 70

Leadership theories

Answer 70

 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.

Question 71

Define emotional inteligence

Answer 71

Understanding and managing your own emotions and influencing the
emotions of others.

Question 72

Golemans four competencies of emotional inteligence

Answer 72

-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.