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
Define Application Form
A document produced by the business and sent to candidates asking to provide personal details, educational history, etc.
Advantages of Application Forms
- only provided with information the business wants/needs
- more likely to receive up to date information
- compare information more easily
- shows commitment from candidate
- electronic versions can rank the candidates for the business
Disadvantages of Application Froms
- takes up lots of time for business
- may get fewer applicants
Benefits of Interviews
- can see how candidate reacts under pressure
- find out answers to specific questions
- can see if the applicant matches their CV
- non verbal aspects can be considered
- there is a chance for candidates to ask questions
Disadvantages of Interviews
- interviewees will just say what employers want to hear
- person may just be good at interviews
Other ways of meeting candidates face-to-face?
- scenario testing
- presentations
- team tasks and activities
- work trials
Define Organisational Culture.
The values, attitudes and beliefs of a business.
Define Verbal Communication.
Using words and sounds to express something.
Define Non-Verbal Communication.
Using gestures and expressions to express something.
What is The Communication Process?
- information
- sender
- signal
- receiver
Define One-Way Communication.
Where the receiver does not have the right (or need) to reply.
Advantages of One-Way Communication.
- easy to use
- no pressure for sender justification
Disadvantages of One-Way Communication.
- no way to check message was understood
- may cause receiver frustration
Define Two-Way Communication.
Involves both a sender and receiver of the information.
Advantages of Two-Way Communication.
- receiver can gain clarification
- receiver feels more involved
Disadvantages of Two-Way Communication.
- takes more time
- sender is under pressure to justify information
Define Formal Communication.
The expected language that is used, to whom one speaks to and the communication media used: usually a specific standard made clear by the business.
Define Informal Communication.
Little or no established rules on how to communicate.
Define Open Communication.
Using language that most people would understand.
Define Closed Communication.
Using terms that not everyone will understand e.g. specialised language
Define Vertical Communication.
Communication between the layers of the hierarchy.
Define Horizontal Communication.
Communicating between the people on the same level.
Define Communication Media.
How the message is delivered to the receiver.
What are Shannon and Weaver’s Barriers to Effective Communication?
- technical
- semantic
- effectiveness
What is the ‘technical’ barrier to effective communication?
- the ability of the receiver to receive the information being communicated.
What is the ‘semantic’ barrier to effective communication?
- the receivers ability to understand what is being sent.
What is the ‘effectiveness’ barrier to effective communication?
- whether the information is acted upon appropriately.
Define Group Norms.
A set of ‘rules’ which may be written, unwritten, spoken or just implied explaining the expected behaviour within that group of people.
Define Implicit Norms.
There is an assumption that there is a set way to behave or interact with others in the group.
Define Explicit Norms.
There is a written set of rules on how to behave and interact as a part of the group.
Define Workforce Planning.
Deciding how many and what type of employees the business needs.
Define Human Resources Objectives.
Setting objectives that help to meet the ‘people’ element of the business.
What should a workforce have?
- a range of ages
- innovation
- skills
Why is Age an important factor when deciding upon workforce?
If your employee’s are too old, they may be looking to retire soon.
If your employees are too young, they may not have enough experience.
Define Flexi-Time.
Employees must be present during a core time but can alter their hours surrounding this to fit with their lifestyles.
Define Structured Time Off In Lieu.
Employees may be asked to work longer hours during busy periods, with the additional hours worked being noted to take off in compensation during less busy periods.
Define Job Sharing.
Employees share the same role on either a day-to-day basis or half-weekly basis, depending how much of a ‘handover period’ is required.
Define Remote Working.
Allowing employees to work away form the business premises, usually at home.
Define Zero Hours Contract.
Allows businesses to hire employees with no promise of work: staff only work when they are needed.
Define Compressed Hours.
Working hours are longer but the working week is shorter e.g. 10 hour days but only for 4 days of the week.
Define Annualised Hours.
Where employees work a total number of hours for the whole year but have a degree of flexibility to how these can be worked: usually a set number is allocated per week but the residue can be worked when employee can.
Define On-the-Job Training.
Training is undertaken at the place of employment and is delivered by the employees.
Advantages of On-the-Job Training.
- likely to be much cheaper
- can be tailored to the specific requirements of their role
Disadvantages of On-the-Job Training.
- may pick up bad habits
- may be regarded as less important as it’s delivered by the business.
Define Off-the-Job Training.
Training is undertaken at a different location and is usually given by an outside specialist training personnel.
Advantages of Off-the-Job Training.
- take the training more seriously
- learn specialist skills
Disadvantages of Off-the-Job Training.
- more expensive
- may take a lot longer
Define Induction Training.
Training that introduces the new employee to the procedures and working environment at the business e.g. showing them where the toilets and staff room are.
Define Training Needs Analysis.
Identifying any gaps in the skills of their employees and setting up training to provide these skills.
What Factors should be considered as a part of TNA?
- what it wants the employees to be able to do
- who needs training and who will do the training.
- the cost of the training required
Define Appraisal.
A formal assessment of an employee’s performance.
What will make an Appraisal Ineffective?
- lack of commitment by senior staff
- inconsistent approach by line managers
- not allowing enough time
- failure to respond to employee concerns and aspiration
- unrealistic targets
- using ambiguous language
What will make an Appraisal Effective?
- senior managers enforce commitment to the process
- consultations with employees
- ensuring employees understand
- providing adequate training to line managers
What is a Self-Assessment?
Where employees reflect on their own performance.
Limitations of Self-Assessment?
- likely to be very subjective
- questions must be very specific and avoid ambiguity
What is a 360 Degree Appraisal?
Involves the appraisee receiving feedback from several people within the business.
Advantages of 360 Degree Appraisal?
- useful for employee development (see how others perceive them)
- can judge management skills of the managers
Limitations of 360 Degree Appraisal?
- employee’s may not be 100% truthful (“get their own back”)
- complicated and time consuming
- focus on behaviour, rather than specific job requirements.
What is a Peer Assessment?
Employees are assessed by colleagues.
Advantages of Peer Assessment?
- colleagues understand their roles so know what is required
- know how well they contribute to the team
Limitations of Peer Assessment?
- usually very biased
- may secretly agree to all give positive comments
How do you Calculate Labour Turnover?
(Number of employee’s leaving during the year/total employees present during year) x 100
How do you Calculate Absenteeism?
(Total absences in the month x 100)/total available working days in month
How do you Calculate Lateness?
(Total late arrivals x 100)/total scheduled attendances
How do you Calculate Workforce Productivity?
Output/average number of employees
Limitations to Quantitative Data?
- averages can be misleading
- not all departments employ same number of people
- doesn’t explain why
Benefits to employees of Improving Performance?
- job security
- higher pay
- bonuses
- financial assistance for career development
What are the Functions Of Management?
- planning
- organising
- leading
- controlling
What are the 4 Styles of Leadership?
Autocratic, Democratic, Laissez-faire and Paternalistic.
Characteristics of Autocratic?
- does not involve employee in decision-making
- very strict
- believes in close supervision
- thinks employees are solely motivated by money
Characteristics of Democratic?
- encourages employee input in decision-making
- encourages 2 way communication
- allows employees to use their initiative
- believes motivation is more than just money
Characteristics of Laissez-Faire?
- remote from employees
- provides little direction
- “let them get on with it Approach”
- often requires employees to set their own objectives
Characteristics of Paternalistic?
- wants workforce to be involved in decision-making
- consults employee’s
- persuades employee’s to accept his view, regardless of theirs.
Outline McGregors’s Theory X and Theory Y.
Theory of how managers view their employees.
Theory X thinks = inherently lazy, lack ability to be unsupervised, lack initiative, largely motivated by money.
Theory Y thinks = enjoy their work, willing to accept responsibility, self-disciplined, not just motivated by money.
Outline Blake and Mouton’s Leadership Grid.
High People Needs, Low Task Needs = Country Club
Low People Needs, Low Task Needs = Impoverished
High People Needs, High Task Needs = Team Leader
Low People Needs, High Task Needs = Authoritarian
Middle of the Road
Outline Carlyle and Galton’s Trait Theory.
Concentrates on the traits exhibited by successful leaders. Motivational Integrity Self-Confidence Creative Intelligent
Outline Tannenbaum and Schmidt’s Contingency Theory.
Style of leaderships highlight the managers degree of trade-off between them control they exert and their focus on their team.
4 Styles = Tell, Sell, Consult and Participate.
Outline Adair’s Action-Centred Leadership.
Highlights the 3 elements required of all leadership situations.
Achievement of task, team involved and the individual group members.
Managers must try to balance these to be successful.
Characteristics of a Manager?
- obeyed by subordinates
- minimises risk
- sets an example
- tells employees to follow procedure
Characteristics of a Leader?
- followed by subordinates
- risk taker
- embraces change
- encourages new ways of thinking
- charismatic
Define Motivation.
A strong desire to act in a particular way and to achieve a certain result.
Define Morale.
‘Spirit.’
Why is Motivation Important to a Business?
- reduces absenteeism
- reduces labour turnover
- productivity increases
- make change easier to implement
- better image to customers
Define and give examples of Monetary Motivation.
Assumes motivation will result from linking pay to productivity/performance.
E.g. piecework, commission, bonuses.
Define and give examples of Non-Monetary Motivation.
Assume motivation results from factors other than financial incentives.
E.g. providing interesting work, working in a team, receiving praise.
Outline Taylor’s Scientific Management.
Jobs would be broken down into simpler tasks to ensure high division of labour.
Employees would be allocated to jobs they were best at.
They were paid on a piece rate.
Pay was key motivator.
This would increase motivation and thus productivity.
Limitations of Taylor’s Theory.
- product of its time
- not applicable any businesses in the tertiary sector
Outline Mayo’s Human Relations Management.
He discovered that employees respond to change sin the working environment, a sense of recognition is important to employees, workplace is a social system and communication can affect productivity.
Limitations of Mayo’s Theory?
- his experiment changed multiple variables at the same time so identifying the exact cause of a change in productivity is difficult
- cannot be applicable to modern day
Outline McClelland’s Three Needs Theory.
He proposed that people have 3 needs.
Achievement = prefers challenging goals, likes individual work, wants regular feedback.
Affiliation = enjoys working in a group, people Orientated.
Power = likes to influence or dominate, enjoys recognition and likes to win.
Limitations of McClelland’s Theory?
- their needs may not always benefit the business
- needs may change over time
- if they meet every employee’s needs, it may be expensive
Outline Herzberg’s Two-Factor Theory.
Hygiene factors are not motivational but their absence will cause demotivating. E.g. cold conditions, no toilets.
Motivating Factors relate to the job itself and cause motivation. E.g. responsibility, recognition.
Limitations of Herzberg’s Theory?
- may not be representative of modern employees as sample was gender and culturally biased.
- different personality traits may cause people to value pay over motivating factors.
- Job enlargement, job enrichment and job rotation can be very time consuming to implement.
Define Job Enlargement.
Redesigning and broadening the nature of a job so that employees can take on new and more challenging tasks.
Define Job Enrichment.
Making sure a job is interesting and enriching to an employee.
Outline Maslow’s Hierarchy Of Needs.
Employees start at the bottom of the pyramid and make their way up it, moving to the next level of needs after meeting the previous.
What is the order of Maslow’s Hierarchy?
Physiological, safety, social, esteem and self-actualisation.
Limitations of Maslow’s Hierarchy?
- Theory was not designed for business world
- needs may not be hierarchical.
