Human Resource Management (3.6) Flashcards
Human Resources are the…
The people of a business or organisation, regarded as a significant asset in terms of skills and abilities.
HR Management needs to make sure…
That the business has the right number of employees with the right skills, qualifications and qualities.
Human Resource tasks examples (4) :
- Employee safety.
- Recruitment and Training.
- Motivating employees.
- Managing employee relations.
Aim :
A specific goal a business has in mind. (Long term).
Objective :
Short-term step to help a business achieve its aim.
(Helps motivate people).
HR Management :
Department of a business or organisation that deals with the hiring, administration and training of staff.
7 HR Objectives :
- Labour Productivity.
- Employees engagement and involvement.
- Talent development.
- Training.
- Diversity.
- Alignment of values.
- Number, skills and location of employees.
(HR objectives) Labour Productivity :
- So they meet goals and objectives.
- Maximises efficiency.
- Lowers unit costs.
- Improves customer experience.
(HR objectives) Employee engagement and involvement :
- To ensure employees are motivated.
- More likely to stay with business (retention).
- Lower unit costs.
(HR objectives) Talent development :
- Improve skills.
- Lower unit costs since they’ll work harder.
- Staff retention rates.
- Makes employees feel valued.
(HR objectives) Training :
- So staff can work efficiently, increase customer satisfaction.
- Lower unit costs.
- Know what’s required of you.
(HR objectives) Diversity :
- So everyone feels comfortable.
- Gives new ideas and perspectives which will help the business grow.
(HR objectives) Alignment of values :
- Less conflict.
- So people understand the business and what it aims to do, all work towards it.
- e.g. ethics.
(HR objectives) Number, skills and location of employees :
- So everything runs smoothly, you’ll never be understaffed which could cause queues and upset customers.
- Don’t want too many staff.
(Internal influence on HR objectives) Corporate Culture :
- Alignment of values.
- Non-toxic environment.
- Employee relations reduced.
(Internal influences on HR objectives) Employee Relations :
- Diversity, everyone feels welcome and safe.
(Internal influences on HR objectives) Overall Performance of Business :
- If this is down, there will be less money to be spent on talent development.
(Internal influences on HR objectives) Financial Constraints :
- If they’re not much money, it might affect how many staff they can employee and what their wages are.
(Internal influences on HR objectives) Organisational Structure :
- Employee engagement and involvement will vary depending on whether it’s hierarchal/flat.
(External influences on HR objectives) Legislation/Political Factors :
- Will have to ensure they have a diverse workforce and don’t discriminate.
- Will have to ensure they’re treating staff and paying them fairly.
(External influences on HR objectives) Actions of Competitors :
- Increase training, will want highly trained staff as it’s a competitive advantage.
- Might have to lower product price to compete and therefore wages.
- Talent development.
(External influences on HR objectives) Structure of Population :
- If there’s lots of unemployment, won’t have to offer as many benefits to persuade people to work for them.
(External influences on HR objectives) Economic factors :
- If the economy’s struggling, they’ll have to lower prices and limit spending on things like talent development.
- Will affect how often/much they recruit.
(External influences on HR objectives) Social Factors :
- End of trends may mean decreasing the price of products.
- Some jobs may be less popular/wanted.
(External influences on HR objectives) Technological Factors :
- New machinery could reduce the need for staff but they would have to train them to use it.
Treating employees as an asset :
Treating them well so they work hard, see them as a competitive advantage.
~ Train them frequently.
Employee Engagement :
How motivated and involved employees are.
~ Physical act of doing something.
Employee Motivation :
Drive to complete something.
Hard HR Strategy :
Treat employees simply as just another resource of the business.
~ Autocratic leadership.
~ Financial methods of motivation.
~ Short term approach (don’t care about retention).
~ Taller structure (narrower span of control).
Soft HR Strategy :
Treats employees as the most important asset in the business and a source of competitive advantage.
~ Democratic leadership.
~ Encourages promotion/talent development (non-financial motiv.)
~ Long term approach.
Hard HR approach is…
~ Cheaper.
~ Quick decision making.
~ Higher absenteeism (labour turnover).
~ Difficulties with retention.
~ Potential to damage business reputation.
Labour Turnover :
The proportion of employees leaving a business over a period of time (usually a year).
Labour Turnover Formula :
Number of employees leaving
over a given period
—————————————— x 100
Avg number employed over a
given period.
Retention Rates :
Proportion of employees with a specified length of service (normally one or more years) as a proportion of the total workforce.
Retention Rates Formula :
Number of employees with one
or more years’ service
—————————————— x 100
Overall workforce number
(High Labour Turnover and Low Retention) High induction costs :
~ Business will have to spend more money on training employees to replace those who have left.
(High Labour Turnover and Low Retention) Reduced Productivity:
~ Because more people will of left the business.
~ May struggle to replace jobs.
~ New staff will be less productive while they’re learning.
Internal + External causes of High Labour Turnover & Low Retention Rates :
Internal : May be a toxic work environment.
External : May be better, promotional opportunities elsewhere.
How can firms improve their Labour Turnover? (3)
~ Monitoring + Benchmarking (track trends, identity areas where it’s high).
~ Exit Interviews (identify problems).
~ Reducing turnover of long-term workers (e.g. career progression, examine remuneration).
Impacts an increase in Labour Turnover will have on UK businesses ;
~ Larger choice of potential employees, can be pickier.
Labour Productivity :
A measure of the output per worker in a given time period.
Labour Productivity Formula :
Output per period
————————————————
Number of employees per period
Labour Costs per unit :
Are a measure of the average labour costs involved in producing one unit of output in a given time period.
Labour Costs per unit Formula :
Total labour costs
____________________
Total units of output
Reducing wages will reduce…
Labour costs per unit because staff will be less motivated + businesses are paying less money.
Improving working practices will…
Increase labour productivity.
Employee Costs as a percentage of revenue :
Measures the percentage of sales revenue needed to cover labour costs.
Employee costs as a % of revenue Formula :
Employee costs
———————— x 100
Sales Revenue
Absenteeism :
Is the proportion of employees not at work on a given day.
Absenteeism Formula :
Number of staff absent
——————————— x 100
Number of staff in total
Low employee costs as a % of turnover industries :
Car industry (lots of machinery so limited staff and sell cars for lots of money).
An industry with High employee costs as a % of revenue :
Hospitality (restaurants) because they have to pay lots of employees the same regardless of how much revenue they’re making.
Benefits of low Retention (4) :
~ New ideas, enthusiastic (more diverse workforce).
~ Could loose lazy workers.
~ Spend less money in talent development/bonuses etc.
~ Pay lower wages (less promotional opportunities).
Drawbacks of low Retention (5) :
~ Bad reputation.
~ High costs when recruiting + training.
~ Won’t be skilled when first arriving, may decrease customer satisfaction.
~ Poor talent development.
~ May loose staff to competitors.
Employee Engagement :
Emotional commitment an employee has to an organisation and its aims.
Empowerment is a series of…
A series of actions designed to give employees greater control over their working lives.
Job Design is the process of deciding the…
The process of deciding the content of the job in terms of its duties and responsibilities.
(Influences on Job design) Maintaining Quality :
~ Don’t over-load the job roles.
- Employee people with correct skills.
- Meet required quality.
(Influences on Job Design) Operational Efficiency :
~ Employee a correct amount, include training, make sure they have the skills and resources required.
(Influences on Job Design) Labour Retention :
~ Offer good wages and lots of promotional opportunities, variety in job roles.
(Influences on Job Design) Skills of Workforce :
~ Employees can only undertake jobs effectively if they have the skills required.
Hackman & Oldham’s Job Characteristic Model :
Based on the belief that the task itself is key to employee motivation.
~ Suggests 5 job characteristics that can be studied to help predict job satisfaction.
Hackman & Oldham 5 job characteristics? :
- Skill variety.
- Task identity.
- Task significance.
- Autonomy.
- Job feedback.
(Hackman & Oldham) Skill Variety :
~ How many different skills/talents does the job require?
~ Is it a monotonous job?
~ A job with a range of activities may develop their skills.
(Hackman & Oldham) Task Identity :
~ Is there a clear ‘beginning, middle and end’?
~ Do the workers know when they have completed a task or what to do?
~ Completing a task can be motivating, if they don’t know they’ve completed it motivation may be down.
(Hackman & Oldham) Task Significance :
~ Does the job have a substantial impact?
~ Is it meaningful?
~ It can be de-motivating if you feel your work has no ‘meaning’ or significance.
(Hackman & Oldham) Autonomy :
~ How much freedom does an individual have to accomplish his or her tasks?
~ Freedom with schedule and how to get tasks done.
(Hackman & Oldham) Job Feedback :
~ Is an employee kept in the loop about their performance?
~ Are they being told what/when they are doing well and what/when they are not?
(Hackman&Oldham) How could HRM achieve Skill Variety?
~ Job enrichment + rotation to switch up the job and make it more interesting.
~ Talent development/training.
(Hackman&Oldham) How could HRM achieve Task Identity :
~ Set deadlines/amount needed to be complete.
~ Communicate clearly.
~ Well-structured job.
(Hackman&Oldham) How could HRM achieve Task Significance :
~ Show employees impact of job.
~ Be encouraging and praising.
~ Alignment of values.
~ Communicate, explain importance of role.
(Hackman&Oldham) How could HRM achieve Autonomy :
~ Give employees freedom when making decisions, (depends on nature of the business).
(Hackman&Oldham) How could HRM achieve Job Feedback :
~ Lots of communication, regularly.
~ Offer benefits for good work to increase motivation.
~ Financial/non-financial benefits.
~ Regular appraisals.
+ and - of Skill variety (job enrichment/rotation) :
+ more motivated as job isn’t monotonous, develop skills and knowledge, increase in talent development (will also inc retention), more flexible if employees are absent.
- will likely be unskilled at job so will reduce efficiency/productivity, may not enjoy jobs so may demotivate them, high costs and lots of training.
Organisational Charts :
Are diagrams that show the internal structure of the business.
- They make it easy to identify the specific roles and responsibilities of staff.
Levels of Hierarchy :
Are the layers of authority within a business.
Span of Control :
How many subordinates you are directly responsible for.
Chain of Command :
How many levels of hierarchy there are under you!
Tall organisational Structure, Narrow span and long chain, ADVANTAGES (3) :
+ Smaller workload (can focus on strategic ideas in LT).
+ Staff may be more productive because their more tightly controlled (closer relationship).
+ More promotional opportunities (higher motivation & retention rates).
Tall Organisational Structure, Narrow span and Long chain, DISADVANTAGES (3) :
- Communication takes a long time + can be messed up.
- Employees may feel demotivated because of how tightly controlled they are (lack of freedom).
- Higher staff costs due to (more management salaries).
Flat Organisational Strucure, Wide span and Short chain, ADVANTAGES (3) :
+ Quicker communication & less likely to get it messed up.
+ Lower costs due to employing less managers/higher roles.
+ Employees more likely to have more autonomy (since there’s more delegation), increases motivation and allows for fresh, innovative ideas.
Flat Organisational Strucure, Wide span and Short chain, DISADVANTAGES (3) :
- Less opportunities for promotion (less motivation/retention).
- Larger workload, may become demotivated.
- Wide span could lead to less communication between staff + managers (demotivated).
Delegation is the passing down of…
The passing down of authority to more junior employees.
Delegation, ADVANTAGES (4) :
+ Managers will have a smaller workload, can communicate more with staff and focus on LT strategic work.
+ Staff could be more motivated because they have more freedom.
+ Employees will gain more skills (good when employees are absent, reduce costs).
+ Tasks may be completed at a higher standard because they’ll have more time.
Delegation, DISADVANTAGES (3) :
- Staff could make the wrong decisions (might not have correct skills, could decrease efficiency and damage reputation).
- Could have a poor work-ethic, tasks may not be done to the correct standard.
- Ethical issues, they’re not being paid a managers salary.
Matrix Structure is a type of organisational structure that combines…
Combines the traditional departments seen in functional structures with project teams.
~ individuals work across teams and projects as well as within their own department or function.
Centralisation :
Authority should rest with senior management at the centre of a business
~ Kept firmly at the top of the hierarchy.
Decentralisation, authority should be…
Authority should be delegated further down the hierarchy, away from the centre
~ Include more junior managers, as well as individual business units.
Centralisation, ADVANTAGES (4) :
+ Easier to implement common policies, (consistent).
+ Prevents other parts of the business becoming too independent.
+ Easier to co-ordinate from the centre (e.g. with budgets).
+ Quicker decision -making (usually, by people who know what they’re doing) - easier to show strong leadership.
Centralisation, DISADVANTAGES (4) :
- More bureaucratic - often extra layers in the hierarchy.
- Local/junior managers are likely closer to customer needs.
- Lack of responsibility down the hierarchy may reduce manager motivation.
- Customer service : lost flexibility and speed of local decision making.
Delayering is the removal of…
The removal of one or more levels of hierarchy from a business from a business’s organisational structure.
Delayering, ADVANTAGES (6) :
~ Reduce staff costs (manager salaries are high).
~ Quicker & more accurate communication.
~ Staff will have more responsibility, motivating.
~ Offers opportunities for delegation, and empowerment due to number of managers being reduced.
~ Can remove department rivalry.
~ Brings managers closer to customers, should in theory mean better customer service.
Delayering, DISADVANTAGES (6) :
- Not all businesses are suited to this e.g. mass production.
- Could loose skilled workers.
- Could have a negative impact on motivation due to job losses.
- Period of disruption may occur as people take on new responsibilities and fulfil new roles.
- Will increase workload of others.
- Less promotional opportunities.
(Selection Process) Psychometric Test :
Series of questions asked as part of the recruitment process, to assess personality traits.
Part of interview.
Full Time hours :
37 1/2 hours.
Part Time hours :
Anything below 37 1/2 hours.
Zero Hours contract :
Employer does not guarantee a minimum number of hours of work to an employee.
Assessment Centre :
Candidates undergo a variety of tests, role-plays and simulations for a number of days.
Selection :
Is choosing the right employees from among those who have applied for a job.
Benefits of effective selection (4) :
+ Increased retention, lower absenteeism.
+ Increased efficiency and productivity.
+ Improved customer service.
+ Potentially less recruitment + training costs and time spent in the future.
Redeployment is the use of employees…
Use of employees in any aspect to achieve a particular effect.
- Employees may be ‘redeployed’ in other sections of the business to meet short term needs.
Redundancy :
Business dismisses an employee because they no longer need anyone to do the job.
- It is the POSITION which is no longer needed, not the PERSON who is no longer needed.
Training is the process of increasing…
The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively.
(Effects of Training) Improves Productivity :
Because employees will know what to do so will be more efficient.
(Effects of Training) Leads to more motivated employees :
Because they know what they’re doing and feel valued + invested in.
(Effects of Training) Improves rates of employee retention :
Because they’ll feel valued and invested in by the business and will therefore want to keep working there.
(Effects of Training) Improves quality of goods and customer service :
Because employees will be more skilled and know what they’re doing.
(Training) Induction Training :
Training aimed at introducing new employees to a business and its procedures.
(Training) Induction Training, ADVANTAGES & DISADVANTAGES :
+ Staff know what they’re doing, increases productivity. Make staff feel welcomed. Understand company ethos.
- Member of staff will have to be taken away from their usual role, could damage productivity of the business.
(Training) On-the-Job :
Employees receive training whilst remaining in the workplace. Usually done by another member of staff for a day/week.
(Training) On-the-Job, ADVANTAGES & DISADVANTAGES :
+ Cheaper & easier. Tailored to the needs of the business. First-hand experience from potentially highly skilled staff.
- Member of staff will have to be taken away from their job. Could develop bad habits from other staff (outdated?). Time consuming. Lower productivity.
(Training) Off-the-Job :
Occurs when employees are taken away from their place of work to be trained.
e.g. Training centre, course, first aid training etc.
(Training) Off-the-Job ADVANTAGES & DISADVANTAGES :
+ Can gain qualifications. Usually to a high standard. Trained by experts (high quality). Feel valued and invested in. Transferable.
- More costly. Not as specific to the business. Lower productivity when they go out of the business.
Employee Motivation :
Motivation at work is the desire to complete a task and do a good job.
High employee motivation is important because it (3)…
- Attracts employees.
- Retains employees.
- Increases productivity.
Financial Motivation :
Involves motivating employees with money and things associated with money.
Taylorism, ADVANTAGES & DISADVANTAGES :
+ Consistency, increased productivity, fewer employees, don’t need to pay premium wages.
- May feel unfulfilled, potential unemployment + strike action, loss of individual initiative, dehumanising, ‘survival of the fittest’ environment.
(Financial Motivation) Remuneration :
Getting paid for working.
- Wage/salary.
(Financial Motivation) Bonuses :
A sum of money added to wages/salary as a reward to employees.
- Performance of the business as a whole so encourages a harmonious environment, encourages team-work.
(Financial Motivation) Commission :
Commission is a payment made to employees based on the value of sales achieved. Individual.
- Could create a competitive environment, sell more.
(Financial Motivation) Promotion :
Getting a higher position/job role within a business.
- Motivates them to work hard and show they’re capable of more.
(Financial Motivation) Fringe Benefits :
Financial perks. Ways of rewarding employees without increasing their wage/ salary.
- e.g. company car, mobile phone and private healthcare.
Taylorism, key points of Scientific Management (4) :
- People are motivated by pay.
- Workers given one task to master.
- Find ‘one best way’ of doing things.
- Piece-rate-pay.
Taylorism, Time and Motion study :
Analyse employees jobs by breaking down tasks and finding how long it would take and the quickest way of completing tasks.
(Taylorism) Piece-Rate-Pay :
Being paid per piece produced.
Non-Financial Motivation :
Involve motivating employees in ways that don’t involve money.
Maslow’s Hierarchy of Needs (5) :
1) Physiological needs.
2) Safety needs.
3) Social.
4) Esteem.
5) Self-actualisation.
(Maslow’s Hierarchy of Needs) Physiological :
- Basic needs of humans.
- e.g. Food, water, shelter.
(Maslow’s Hierarchy of Needs) Safety :
- How safe and secure an individual feels.
- e.g. Job security, fair pay, pension scheme, holiday & sick pay, flexible scheduling.
(Maslow’s Hierarchy of Needs) Social :
- Natural desire to feel loved, accepted and wanted.
- e.g. Team-work, professional relationships, learning and development strategy.
(Maslow’s Hierarchy of Needs) Esteem :
- Being appreciated and valued.
- e.g. Regular performance reviews ltapr, employee of the month, service awards.
(Maslow’s Hierarchy of Needs) Self-Actualisation :
- Where a person achieves their full potential as a human being. Rare to stay in this permanently.
- e.g. opportunities for promotion and job enrichment, achieving a challenging goal or leading a project.
Herzberg developed the idea of…
The Two-Factor theory, job satisfaction and dissatisfaction.
- Motivator factors & Hygiene factors.
(Herzberg) The Motivators were… examples (4) :
Factors that can act to motivate employees.
- Growth.
- Career advancement.
- Meaningful work.
- Recognition.
(Herzberg) The Hygiene factors can… examples :
Reduce job dissatisfaction but cannot motivate on their own.
- Fair pay.
- Relationships.
- Policies.
Appraisals are an…
An evaluation of an employee’s performance that considers feedback and opinions from manager.
Mayo believed that… he introduced the…
Workers aren’t just concerned with money but could be better motivated by having their social needs met whilst at work.
- Introduced the Human Relations School of Thought, focused on managers taking interest in their workers and valuing their opinions.
Mayo concluded that workers are best motivated by (3) :
- Better communication between managers and workers.
- Greater manager involvement in employees working lives.
- Working in groups or teams.
McGregor realised that there were…
2 types of managers, he was a theory Y manager.
- He believed if he empowered his employees, ultimately this would allow them to be happier at work and more productive.
(McGregor) Theory X Managers (5) :
- Employees need close supervision.
- Employees must be pushed to perform.
- Employees will avoid responsibility.
- Employees only desire money.
- Employees will avoid work where possible.
(McGregor) Theory Y Managers :
- Employees seek responsibility.
- Employees naturally want to work.
- Employees want independence in work.
- Employees are motivated by self-fulfilment.
- Employees will drive themselves to perform.
Industrial disputes occur when…
There is a disagreement between the management and trade union representatives.
- Sometimes this is serious enough to result in INDUSTRIAL ACTION.
Industrial Action is when…
Employees take measures to halt or slow production.
3 types of Industrial Action :
- ‘Work to Rule’ (do bare minimum).
- Strike (stop working).
- Overtime ban (don’t work overtime, affects productivity).
A Trade Union is an organisation with… looks after…
An organisation with members who are usually workers/employees. Looks after their interests at work by doing things like :
- Negotiating agreements with employers on pay & conditions.
- Discussing big changes like large scale redundancies.
Difference between Works Council and Trade Union?
Works Council is internal, Trade Union is external.
Recruitment is the process of deciding who…
The process of deciding who will fulfil a specific role which is essential to ensure that a business has enough employees with the right skills and experience.
Internal Recruitment, ADVANTAGES (5) :
+ Already know the person/trust them.
+ Cheaper.
+ Less time-consuming.
+ Alignment of values.
+ Promotional opportunities.
Internal Recruitment, DISADVANTAGES (3) :
- Could de-motivate staff/cause conflict due to them leaving.
- Have to fill other job role.
- Lack of fresh/innovative ideas.
External Recruitment, ADVANTAGES (4) :
+ New ideas/skills.
+ Competitor insight.
+ Encourage innovation.
+ Wider choice of candidates.
External Recruitment, DISADVANTAGES (6) :
- Costs more.
- More time-consuming.
- Training costs.
- Productivity issues.
- Less aligned with corporate culture.
- Demotivating due to lack of relations.
Contract of Employment :
A legal document stating the hours of work, rates of pay, duties and other conditions under which a person is employed.
Part-Time & Full-Time :
- Part-Time : less than 37 1/2 hours.
- Full-Time : More than 37 1/2 hours.
Part-Time ADVANTAGES (3) & DISADVANTAGES (3) :
+ More flexible.
+ Less expensive.
+ Wider range of ideas.
- Less skilled/experienced.
- Lower productivity.
- Harder to plan rota.
Full-Time ADVANTAGES (3) & DISADVANTAGES (3) :
+ Become trained/skilled quicker.
+ More reliable/consistent staff.
+ Easier to plan rota.
- More expensive
- Less flexible.
- Not tailored to needs of the business.
Zero Hours Contract :
No set number of hours required to work each week.
The Gig Economy :
Zero-hour contracts or short-term freelance contracts, rather than permanent jobs with a set number of hours.
+ Cheaper, tailored to business demands.
- Unreliable.
