Human Resource Management Flashcards
What is human resource management?
It is about how the workforce is managed by a business in orde to me the strategic objectives of that business
What are three activities that are undertaken by HRM?
Workforce planning
Recruitment
Communication
Why has HRM become more important?
- Because businesses now have fewer layers of management hierarchy.
- Most businesses provide services so need a quality customer service
What is an organisational chart?
A diagram that shows the hierarchy in a business usually from top to bottom in terms of seniority.
What is span of control?
The number of subordinates or employees from whom a manager is responsible.
What are the advantages and disadvantages of a narrow span of control?
Advantages - manager gets to spend lots of time giving staff clear/direct instructions.
Disadvantage - costly
Staff may feel that they are being watched
Advantages and disadvantages of wide span of control
Advantages - reduces costs
- independence my be motivating for staff
Disadvantages - staff may perform badly as manager loses control
What is chain of command?
The order of authority and delegation within a business.
What does the success of a span of control rely on?
- personality of the manager
- skills of the subordinates
- the size of the business
- the industry the business is operating in
What are levels of hierarchy/layers?
Refers to the number of levels or layers in a business.
What are line relationships?
The vertical relationships (in the organisational hierarchy) between managers and subordinates.
What are staff relationships?
The horizontal relationship between a manger and another organisational member to/from whom the manager gives or receives information or advice.
What is delayering?
A process of reducing the number of levels or layers in an organisational structure.
What are the advantages of delayering?
- reduces costs
- more employee responsibility
- faster communication and therefore decisions will also be made more quickly.
What are the disadvantages of delayering?
- spans of control will increase
- redundancy payment
- damages staff morale
- share price drops puts investors off
What is delegation?
The passing on of responsibility, usually to someone at a lower level in the organisation
What is empowerment?
Giving employees the power to do their jobs
What is a centralised structure?
Where decisions are made from the top.
What are the benefits of centralisation?
- easier to implement common policies and practices for the whole business
- prevents other parts of the business from becoming too independent.
- easier to co-ordinate and control from the centre e.g. with budgets
- economies of scale and overhead saving easier to achieve
- quicker decision making
Disadvantages of centralisation?
- moire bureaucratic - often extra layers in the hierarchy
- local or junior managers are likely to be much closer to customer needs
- lack of authority down the hierarchy may reduce manager motivation
- customer service: lost flexibility and speed of local decision-making.
What is decentralisation? And what type of business would it suit?
Decision making spread out, includes junior managers in the hierarchy.
It suits hotels as hotel managers and staff feel empowered.
What are the benefits of decentralisation?
- decisions are made closer to the customer
- more able to respond to local circumstances
- improves level of customer service
- enables a flatter hierarchy
- good way of training and developing junior management
- facilitates empowerment - improving staff motivation
What are the characteristic of a flat structure?
Wide span of control, greater delegation and responsibility, quicker communication
What are the characteristics of a tall structure?
Narrow span of control so more direct supervision, communication will be more bureaucratic, less promotional opportunities