Human Resource Management Flashcards
Define Human Resource Management (HRM)
How people are managed in a business in order to meet the strategic objectives of the business.
Define Organisational Chart
A diagram that shows the hierarchy within a business, usually from top to bottom in terms of seniority.
Define Span Of Control
Number of subordinates for whom a manager is responsible.
Benefits of a Narrow Span Of Control
- more one on one time
- easier to get help from manager
- more support from manager
- help with development of skills
Benefits of Wide Span Of Control
- more responsibility
- more motivating
- delegated more interesting tasks
- avoids over powering manager
Factors that influence the span of control
- skill of subordinates = may prefer narrow span of control if they are unskilled as it gives them more direct supervision
- experience and personality of manager
- nature of the business e.g. factory needs narrow span of control
What does the effectiveness of organisational charts depend on?
- personality of manager
- skills of subordinates
- size of the business
Define Chain of Command
The way in which responsibility for employees is organised within a business.
Define Delayering
A process of reducing the number of levels within a businesses organisational structure.
Advantages of Delayering
- more employee responsibility
- reduces labour costs
- quicker decision making
Disadvantages of Delayering
- damage staff morale
- redundancy payments
Define Delegation
Assignment to others particular tasks and decisions.
Define Empowerment
Giving employees the power to do their job e.g. authority to make decisions or solve their own problems.
What does successful delegation and empowerment rely on?
- type of employee (their skills and attitudes)
- the type of task (can it actually be done by someone else?)
- how busy the manager is (do they have time to train?)
- how willing the manager is to trust their staff
Define Tall Structure
A structure with many layers.
Define Flat Structures
A structure with few layers.
Features of a Flat Structure
- wide spans of control
- quicker communication
- more delegation and empowerment
Features of a Tall Structure
- narrow spans of control
- more direct supervision
- likelihood for more promotion opportunities
Define Organisation By System
The business is split into specialist/functional areas.
Advantages of Organisation By Structure
- specialists can concentrate on what they do best
Disadvantages of Organisation By System
- each part may act as a separate entity, concerned with their own agenda
- difficult to accredit success or blame
- departments are often putting in a lot of work but struggle to identify an outcome
Define Organisation By Product
Where a business organises it’s structure around their different products; each product has its own “mini company” made up of specialists from the functional departments such as finance and operations.
Advantages of Organisation By Product
- easier to credit success and blame
- employees can see the outcome of their work
- motivation may be improved as a result of the above
Define Centralised Structure
Authority to make decisions I’d kept at the top of the hierarchy.
Advantages of a Centralised Structure
- easier to implement common policies and practices
- prevents independence in departments
- easier to control and coordinate from centre of business
- EOS and overhead savings are easier to achieve
- quicker decision making
Disadvantages of a Centralised Structure
- slower communication and higher labour costs
- local and junior managers are likely to understand customer needs better
- lack of authority down hierarchy may reduce manager motivation
- could have worse customer service = lost flexibility and slower local decision making
Define Decentralised Structure
Authority to make decisions is spread out to include more junior managers as well as individual business units or trading locations.
Advantages of a Decentralised Structure
- decisions made closer to customer needs
- better able to respond to local circumstances
- improved level of customer service
- enable a flatter hierarchy so could reduce costs
- good way of training/developing junior management
- facilitates empowerment which could improve motivation
Disadvantages of Decentralised Structure
- decision making may not necessarily be strategic
- harder to ensure consistent practices/policies at every location
- may be some DOS due to duplication of roles
- strong leadership isn’t clear
- harder to achieve tight financial control
Disadvantages of Organisation By Product
- different products end up competing for resources
- duplication of departments can waste resources
Define Matrix Structure
Where employees work across departments and projects, each reporting to a team leader as well as a manager.
Advantages of a Matrix Structure
- help improve communication across organisation as it breaks down traditional department barriers
- allow individuals to use skills within a variety of contexts
- avoid need for several departments to meet regularly so reduces costs and improves coordination
- greater motivation amongst team members
- encourages the sharing for ideas amongst departments
- good way of sharing resources, more cost effective
Disadvantages of a Matrix Structure
- members may have divided loyalties
- may not be a clear line of accountability for team members
- communication could become problematic
- takes time for workers to get used to the structure
- team members may neglect their functional responsibilities
Stages of the Recruitment Process
- Identifying the vacancy
- Draw up a job description
- Draw up person specification
- Advertise job
- Revise applications
- Shortlist candidates
- Offer interviews
- Appointment of employee
Why might a new vacancy arise?
- someone may leave
- someone has retired
- someone has been promoted
- someone has been dismissed
- need new skills
- business may be expanding
Define Job Description
A document that describes the duties of a worker.
Define Person Specification
A profile of the type of person needed for the job; their skills and qualities.
Define Internal Recruitment
Vacancy is filled with someone who already works for the business.
Advantages of Internal Recruitment
- eliminates need for induction training
- reduces costs as less advertisement is needed
- saves the business time (theoretically less applicants)
Disadvantages of Internal Recruitment
- could limit your selection
- may cause competition amongst current employees
Define External Recruitment
When organisation fills position with someone outside of the business.
Advantages of External Recruitment
- reduce resentment felt by your current employees they may feel if you were to recruit internally
- widen your choice
- provide business with new insights and ideas
Disadvantages of External Recruitment
- cost of advertising and interviewing may outweigh benefits
- likelihood business will have to provide training which takes up time and money
- external candidate may struggle to integrate with current employees
Advantages of using Local Newspapers
- quite cheap to advertise in
- attracts local people who can easily reach business
Disadvantages of using Local Newspapers
- not many people read the newspaper
- could target wrong age population
Advantages of using National Newspapers
- target the wider population
- likely to get responses faster as you’re targeting more people
Disadvantages of using National Newspapers
- very expensive to post advert
- could get overwhelming response, lots to shortlist
Advantages of Using Specialist Magazine
- people reading are clearly interested
- people reading are likely to have skills in the field of business
Disadvantages of Using Specialist Magazine
- very expensive to post
- limiting your ‘type’ of applicant
Advantages of using Own Website
- people interested in the business will see the advert
- relatively cheap to post
Disadvantages of using Own Website
- not many people are likely to see advert as not many people will look at the business’ website
Advantages of using Word of Mouth
- free
- people would only recommend the job if they think the person would fit
Disadvantages of using Word of Mouth
- relies on people spreading the word
- if people don’t spread word than business has wasted time
Advantages of using Shop Window
- attracts people who are interested in the business
- cheap to do
Disadvantages of using Shop Window
- may take time to get an applicant
Define Recruitment Agency
A company which attempts to match the employment needs of an employer with a worker.
Advantages of using Recruitment Agencies
- saves business time as applicants are already screened before interview
- quickly fill a vacancy as they have alarms pool of candidates
- specialists so will come up with new ways of attracting candidates
Disadvantages of using a Recruitment Agency
- business must pay a fee to advertise with the agency
- agency may provide an unsuitable candidate in order to get their fee
Define Job Centre
Paid for by the government and provide a service for businesses needing to advertise a vacancy and are generally free to use.
Advantages of using Job Centres
- usually free
- save business time
Disadvantages of using Job Centres
- usually for low skilled work
- smaller pool of candidates to choose from
Define CV
A document the applicant designs providing their personal details, educational and employment history, suitability for Job and names of referees.
Advantages of CVs
- saves business time as they don’t have to produce an application form
- may encourage applicants as they don’t have to fill out form
- gives business more time to find perfect applicant
- candidates can reflect personalities in the CV
Disadvantages of CVs
- may have lots of help to write their CV
- may lie