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Business Studies > Human Resource Management > Flashcards

Human Resource Management Flashcards

1
Q

What is human resource management?

A

It is about how the workforce is managed by a business in orde to me the strategic objectives of that business

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2
Q

What are three activities that are undertaken by HRM?

A

Workforce planning
Recruitment
Communication

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3
Q

Why has HRM become more important?

A
  • Because businesses now have fewer layers of management hierarchy.
  • Most businesses provide services so need a quality customer service
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4
Q

What is an organisational chart?

A

A diagram that shows the hierarchy in a business usually from top to bottom in terms of seniority.

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5
Q

What is span of control?

A

The number of subordinates or employees from whom a manager is responsible.

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6
Q

What are the advantages and disadvantages of a narrow span of control?

A

Advantages - manager gets to spend lots of time giving staff clear/direct instructions.

Disadvantage - costly
Staff may feel that they are being watched

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7
Q

Advantages and disadvantages of wide span of control

A

Advantages - reduces costs
- independence my be motivating for staff

Disadvantages - staff may perform badly as manager loses control

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8
Q

What is chain of command?

A

The order of authority and delegation within a business.

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9
Q

What does the success of a span of control rely on?

A
  • personality of the manager
  • skills of the subordinates
  • the size of the business
  • the industry the business is operating in
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10
Q

What are levels of hierarchy/layers?

A

Refers to the number of levels or layers in a business.

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11
Q

What are line relationships?

A

The vertical relationships (in the organisational hierarchy) between managers and subordinates.

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12
Q

What are staff relationships?

A

The horizontal relationship between a manger and another organisational member to/from whom the manager gives or receives information or advice.

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13
Q

What is delayering?

A

A process of reducing the number of levels or layers in an organisational structure.

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14
Q

What are the advantages of delayering?

A
  • reduces costs
  • more employee responsibility
  • faster communication and therefore decisions will also be made more quickly.
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15
Q

What are the disadvantages of delayering?

A
  • spans of control will increase
  • redundancy payment
  • damages staff morale
  • share price drops puts investors off
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16
Q

What is delegation?

A

The passing on of responsibility, usually to someone at a lower level in the organisation

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17
Q

What is empowerment?

A

Giving employees the power to do their jobs

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18
Q

What is a centralised structure?

A

Where decisions are made from the top.

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19
Q

What are the benefits of centralisation?

A
  • 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
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20
Q

Disadvantages of centralisation?

A
  • 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.
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21
Q

What is decentralisation? And what type of business would it suit?

A

Decision making spread out, includes junior managers in the hierarchy.
It suits hotels as hotel managers and staff feel empowered.

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22
Q

What are the benefits of decentralisation?

A
  • 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
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23
Q

What are the characteristic of a flat structure?

A

Wide span of control, greater delegation and responsibility, quicker communication

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24
Q

What are the characteristics of a tall structure?

A

Narrow span of control so more direct supervision, communication will be more bureaucratic, less promotional opportunities

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25
Q

What the advantages for tall structures?

A
  • it knows the lines of communication and who they should report to
  • easier to delegate jobs
  • leadership and guidance
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26
Q

Advantages of flat structures

A
  • more empowering, more control in the work place
  • greater teamwork, shows that you trust your employees
  • easier to share ideas
  • easier communication
  • lower costs
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27
Q

What is organisation by function?

A

Where the business is arranged into specialist/functional areas. This means that each function has some input into the output of the business product or service.
E.g. HR,Finance,production

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28
Q

What is organisation by product?

A

The business is organised according to the different products made. Each product becomes a “mini company” with its own finance, marketing, HR departments etc.
E.g. the iPhone X will have various departments just for that product

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29
Q

What are the advantages of organisation by product?

A
  • easy to see which products are performing
  • communication barriers are broken down for specialists
  • each centre has a lot of autonomy (independence) - increasing motivation
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30
Q

What are the disadvantages of organisation by product?

A
  • different products compete for resources (finance), causing conflict
  • duplication of departments (HR) can waste resources
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31
Q

What are the advantages of organisation by function?

A
  • specialists can concentrate on what they do best and share ideas with each other.
  • less duplication i.e multiple teams/employees are not recruiting staff.
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32
Q

What are the disadvantages of organisation by function?

A
  • conflicts may occur, budgets, goals etc.
  • segregation of functions means that communication about products’ different functions are working on is ineffective.
  • it can be difficult to accredit success and/or blame
  • departments are often doing a lot of work, but cant really identify outcome.
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33
Q

What is a matrix structure?

A

Individuals work across teams and projects as well as within their own departments or function.
- each team member can find himself/herself with two managers - their normal functional manager as well as the team leader of the project.

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34
Q

What are the advantages of a matrix structure?

A
  • can help break down traditional department barriers, improving communication across the entire organisation
  • can allow individuals to use particular skills within a variety of contexts
    Avoid the need for several departments to meet regularly - reducing costs
  • greater motivation for employees
  • more cost effective - sharing resources
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35
Q

What are the disadvantages of a matrix structure?

A
  • members of project teams may have divided localities as they report to two line managers
  • no clear line of accountability for project teams
  • difficult to co-ordinate/communication can be problematic
  • team members may neglect their functional responsibilities
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36
Q

What is an appraisal?

A

A formal assessment of an employees performance

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37
Q

What areas of an appraisal meeting help increase the likelihood of the employee meeting performance targets?

A
  • training needs
  • promotional opportunities
  • pay progression
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38
Q

Why would a business carry out an appraisal?

A
  • to motivate staff
  • to record any issues
  • to give staff a focus
  • to make staff feel valued
  • form of evidence
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39
Q

What is a manager appraisal?

A

A method of appraisal where a manager examines and evaluates an employees performance.

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40
Q

What are the advantages of appraisal coming from your manager?

A
  • motivating to have it from someone with authority
  • supports making subsequent actions such as deciding about productivity, rewards etc.
  • receive expert input
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41
Q

What are the disadvantages of manager appraisal?

A
  • manager may not work collectively with the employees to know their strengths and development areas.
  • input is limited to one point of view (the managers)
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42
Q

What is self assessment?

A

Employees assess their own performance, often using a tick sheet to grade aspects of their work. This can be used as a stand alone method or in advance of a managerial appraisal.

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43
Q

What are the benefits of self assessment?

A
  • prepares you for a manager appraisal
  • gives the appraisee time to self reflect
  • allows them to see what areas they can improve on
  • quicker
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44
Q

What are the disadvantages of a self assessment?

A
  • workers may lie - being too modest or too optimistic
  • workers may not value the form
  • standards may be different
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45
Q

What is a peer appraisal?

A

When the appraisal is carried out by a work colleague

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46
Q

What is a 360 degree appraisal?

A

It involves an employee receiving feed back from several people in the organisation this is more appropriate for staff who work in large businesses within multiple teams

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47
Q

What are the advantages and disadvantages of 360 degree appraisal?

A

Advantages
- gives a broader picture of performance

Disadvantage
- employee could end up with too many conflicting targets

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48
Q

What are the disadvantages and advantages of a peer assessment?

A

Advantages
- peers have very clear idea on how employees are contributing to the team

Disadvantages
- appraisal may end up being either overly positive or overly negative depending on employee relationships particularly if it is linked to pay.

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49
Q

Why might appraisals be ineffective?

A
  • most managers and employees hate doing appraisals, making them feel less effective when done annually.
  • focus of appraisals being on paperwork rather than a quality conversation about performance and career development
  • managers often don’t get appraisals
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50
Q

What is labour turnover and the formula?

A
  • measuring the number of employees who have left the business

(Number of employees left during the year/average number employed during the year) x 100

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51
Q

What is absenteeism and what is the formula?

A
  • absence from work imposes an extra cost on the business in the form of a replacement employee or puts pressure and stress on existing staff - a key indicator of low morale and motivation

(Total days absent in month/total available working days in the month) x 100

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52
Q

What des authorised an unauthorised mean?

A

Authorised - the worker has asked and has been granted time off work
Unauthorised - where the worker hasn’t been granted time off work

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53
Q

How do you work out lateness?

A

(Total number of late arrivals/total number of scheduled attendances) x 100

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54
Q

What would you use to measure lateness?

A

ACAS

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55
Q

What is work force productivity?

A

Measure of output per employee in a particular period of time. Productivity is a key indicator of employee performance

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56
Q

How do you work out productivity?

A

Output/average number of employees

  • hard to measure in the tertiary sector because it is service based.
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57
Q

What are the benefits of improving performance to employee?

A
  • job security
  • higher pay
  • bonuses
  • improvements of conditions to work
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58
Q

What are the benefits to the business of increased employee performance?

A
  • higher output

- better customer service

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59
Q

How might you reduce absenteeism?

A
  • Disciplinary routes
  • offer mental support
  • reduce workload
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60
Q

How might you reduce lateness?

A
  • offer early morning rewards (free breakfast)

- discipline late workers

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61
Q

What are the limitations of using quantitative data?

A
  • averages can be misleading
  • not all the departments employ the same number of people
  • numbers do not explain the situation
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62
Q

What is holiday entitlement?

A

The uk statutory minimum is 28 days (including bank holidays). Businesses can offer above this (UK average is 33.5 days)

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63
Q

What is performance related pay?

A

A financial reward to employees who’s work is considered to have reached a required standard, and / or above average. Generally used when work cannot be measured in terms of output

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64
Q

What is selection?

A

Process of deciding which applicant for a job the business should accept.

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65
Q

What are three methods used before meeting the person face to face?

A
  • CV
  • Application form
  • Letter of application
66
Q

What is a CV?

A

A document that the applicant designs providing the details of: personal details, education, employment history and references

67
Q

What are the advantages of a CV?

A
  • good for making comparisons
  • easy to see information on candidates
  • you can send it and receive it quickly and easily
68
Q

What are the disadvantages of a CV?

A
  • Plagiarism
  • people sound better than they actually are
  • no limit on how much can be written
69
Q

What is recruitment?

A

The process of bringing new employees into the business

70
Q

Why might a vacancy arise?

A
  • the business is growing
  • the employee has died or become ill
  • employee retires
  • the business needs a specialist
71
Q

What is a job description?

A

A document that describes the duties of a worker. For example, write letters and answer the telephone

72
Q

What is a person specification?

A

A profile of the type of person needed for a job - their skills, experience and qualifications. For example, friendly persona and English language grade B

73
Q

What is internal recruitment?

A

When the business looks to fill the vacancy from within its existing workforce.

74
Q

What is external recruitment?

A

When the business looks to fill the vacancy from any suitable applicant outside the business

75
Q

What are the advantages of internal recruitment?

A
  • cheaper and quicker
  • people already familiar with the business
  • provides opportunities for promotion within the business- can be motivating
  • business already knows the strengths and weaknesses of candidates
76
Q

What are the disadvantages of internal recruitment?

A
  • limits the number of potential applicants
  • no new ideas are gained by the business
  • may cause resentment among employees
  • creates another vacancy which needs to be filled
77
Q

What are the advantages of external recruitment?

A
  • outside people bring in new ideas
  • larger pool of workers from which to find the best candidate
  • people have a wider range of experience
78
Q

What are the disadvantages of external recruitment?

A
  • longer process
  • expensive
  • may not be effective
79
Q

What are the advantages of an application form?

A
  • allows you to compare candidates
  • response is high
  • limits the amount of people who apply
80
Q

What are rage disadvantages of application forms?

A
  • may result in fewer applications

- cant personalise

81
Q

What is a letter of application?

A

Also known as a covering letter is a document sent with a CV that provides additional information

82
Q

How might a business recruit internally?

A
  • emails
  • word of mouth
  • posters
83
Q

Why is it important to have an effective recruitment strategy?

A
  • allows you to employ the best possible candidate
  • saves money and time
  • reduces labour turnover
84
Q

What is a work trail?

A

Where a candidate comes into the office to meet their prospective team and are assigned a task

85
Q

Why is it useful to the employer for work trials?

A
  • Cultural fit
  • gives an insight into the candidates genuine working experience
  • verification of skill and what they are like working
86
Q

Reasons that work trials are useful to the employee?

A
  • allows the employee to gain an understanding of the business culture and business environment
  • allows them to make a rational decision on whether they would like to work there
87
Q

Why might work trials not be useful?

A
  • some candidates may still be working excluding them from the process
  • it takes up valuable time and resources, if it badly organised then then candidate may be put off
88
Q

Why is an effective recruitment strategy important?

A
  • Allows you to employ the best possible candidate
  • saves money and time
  • reduces labour turnover
89
Q

What are the advantages of interviews?

A
  • can see how the candidate copes with pressure
  • can find out answers to specific questions
  • can see if the candidate matches their CV
90
Q

What are the disadvantages of interviews?

A
  • small amount of time to show long term performance

- can give off false impressions

91
Q

Advantages of On the Job training?

A
  • cost effective
  • employees are productive
  • learn whilst doing
  • training with real colleagues.
92
Q

Disadvantages of on the job training?

A
  • quality depends on the ability of the trainer
  • bad habits might be passed on
  • disruption to production
93
Q

What is off the job training?

A

Occurs when employees are taken away from their place of work to be trained

94
Q

Advantages of off the job training?

A
  • wider range of skills or qualifications can be obtained
  • can learn from outside specialists
  • employees can be more confident when starting the job
95
Q

What are the disadvantages of off the job training?

A
  • more expensive
  • loss of working time and output
  • new employees may still need induction training
  • employees are better qualified so may leave
96
Q

What is an apprenticeship?

A
  • long term development programme for workers to learn job skills whole they work through a mixture of on and off the job training and study . They lead to some form of vocational training.
97
Q

What are the advantages of apprenticeships?

A
  • earn whilst you learn
  • learning is both theoretical and practical, and many people will like the variety of activities that this will involve.
98
Q

What are the disadvantages of apprenticeships?

A
  • pay is quite low
  • limits job opportunities
  • people with degrees earn more
99
Q

What is academic training?

A

Involves theoretical knowledge and skills. For example businesses ,at pay people to go to an open university.

100
Q

What is vocational training?

A

Teaches hands on, applied skills such as carpentry and hairdressing. For example, businesses may pay employees to undertake additional courses

101
Q

What is training needs analysis (TNA)?

A

Process of identifying the gap between current training and training needs so that employees can be given the skills that they need to bridge the gap and do their job effectively.

102
Q

What are the factors used in TNA?

A
  • on or off the job training?
  • main training priority?
  • cost of the training ?
  • how many people need training?
103
Q

Why is TNA important?

A
  • highlights issues so that they can be resolved
  • prioritises training needs
  • improves the experience of the customer
  • ensures that employees receive training which enables them to do their job
  • helps retain staff
104
Q

What is a democratic leadership style?

A
  • focus of power is with the group as a whole
  • leadership functions are shared within the group
  • employees have greater involvement in decision-making
  • leaders get final say.
105
Q

Benefits and limitations of democratic leadership style?

A

Benefits - lets everyone feel involved, meaning more motivated staff.

Limitations- may give employees too much power

  • slower decisions
  • ineffective
106
Q

What is laissez-faire leadership style?

A
  • employees are left to do the work
  • gives employees little direction
  • responsibility lies within the group
  • freedom for employees
107
Q

Benefits and limitations of Laissez-faire leadership style?

A

Benefits - motivating for staff as they have independence.

Limitations - staff may not know what they are doing

  • cause ineffective time usage
  • cause laziness
108
Q

What is an autocratic leadership?

A
  • manager has full control of decision making
  • uses power to get others to carry out as much work as a result of this decision making
  • employees have little or no input
  • motivation through rewards
109
Q

Benefits and limitations of autocratic leadership style?

A

Benefits - quick decision making
- good for unmotivated/inexperienced workers

Limitations - bad for highly skilled workers

  • leader dependence
  • cause further de motivation
110
Q

What is paternalistic leadership style?

A
  • a softer form of authoritarian leadership - leader decides what is best for employees and addresses their needs
  • “father-figure”
  • little delegation
  • “tough love”
  • explains why they have made that decision.
111
Q

What is management?

A

The process of co-ordinating the activities of a business in order to achieve objectives

112
Q

What are functions of management?

A
  • set of care activities which define the role of managers in a business environment.
113
Q

What are the four functions if management ?

A

Planning
Organising
Directing
Controlling

114
Q

What do managers do?

A
  • allocate work
  • maintain the status quo
  • minimises risk
  • monitors performance
  • obeyed by subordinates
115
Q

What do leaders do?

A
  • charismatic
  • clear about what needs to be done
  • sets a vision
  • leads by example
  • inspirational
  • brings new ideas
116
Q

How might a managers success be measured?

A
  • ability to meet task deadlines
  • quality of the tasks that are completed
  • achievement of individual targets
  • level of labour turnover
  • customer feedback.
117
Q

What constraints prevent a manager from being successful??

A
  • ability
  • resources
  • lack of coordination
  • structure of the organisation
  • budget of the business
  • strength of competition
118
Q

What is Morale?

A

Refers to the “spirit” of someone or group of people. If morale is high than there exists a spirit of confidence and purpose

119
Q

What are some of the impacts of motivation being high?

A
  • increased productivity
  • lower absenteeism
  • ## reduced lateness
120
Q

What are monetary methods of motivation?

A

They refer to financial incentives such as commission, profit sharing, bonus payment and piece rates

121
Q

What are Non-monetary methods of motivation?

A

Refer to non-financial strategies such as enrichment, teamwork, praise and the workforce environment

122
Q

What does ACAS stand for?

A

Advisory, conciliation and arbitration service

123
Q

What is a bonus payment?

A

Additional payment that workers receive for achieving a target

124
Q

What is profit sharing?

A

Where workers receive a proportion of the profits made by a business

125
Q

What is commission?

A

A percentage of the value of sales achieved

126
Q

What is piece rate?

A

Gives a payment for each item produced

127
Q

What is praise?

A

How much recognition a worker gets for completing a task

128
Q

What is teamwork?

A

How well employees work together

129
Q

What is job enrichment?

A

Being given extra responsibility

130
Q

Advantages and disadvantages of job enrichment?

A

Advantages - work becomes more interesting and/or challenging

Disadvantages - may feel too much pressure or be perceived as more work for the same money.

131
Q

Examples of motivation theories?

A
  • Fredrick Taylor - scientific management
  • Elton Mayo - HR management
  • Mccellands - 3 needs theory
  • Herzberg - 2 factor theory
  • Maslow - hierarchy of needs
  • vroom - expectancy theory
  • Drucker - goal setting theory
  • Locke - goal setting theory
  • peters - in search of excellence
132
Q

What are examples of leadership theories?

A
  • Mcgregors - theory X theory Y
  • Blake and Moutons - leadership grid
  • Carlyle and Galtons - trait theory
  • Tannenbaum and Schmidt - style of leadership
  • Adair’s three circles
133
Q

What is a trade Union?

A

An organisation of employees that seeks to protect and improve the interests of its members. It does this by negotiating with employers on pay and conditions of work.

134
Q

What is a trade union congress?

A

An organisation that brings Britains unions together to draw up common policies and lobby the government to implement policies that will benefit employees

135
Q

What is union recognition?

A

Employers who recognise a union agree to negotiate with it over members’ pay and conditions

136
Q

What is work to rule?

A

Employees do exactly what is stated in their contract and no more, there is no “goodwill” towards the employer

137
Q

What is employee participation?

A

Employees have the ability to participate in the decision making process at work

138
Q

What are the benefits to a business of employee participation?

A
  • increased levels of motivation
  • better communication
  • improves quality of decision making
  • complying with the law
  • reduced labour turnover
  • reduced absenteeism
139
Q

What are quality circles?

A

Regular short meetings to discuss and resolve work related problems

140
Q

What are work councils?

A

Formal meeting of managers and employee representatives to discuss pay and working conditions and to negotiate on issues such as changes in working practices. There is a legal requirement for large multinational companies operating in the EU to set up a European works council

141
Q

What are the costs to a business of recognising a union?

A
  • unions will press for higher wages
  • they will press for better conditions
  • decision making process may be slower
  • increase costs
  • ## rise in prices
142
Q

What are examples of industrial action?

A
  • strike action
  • work to rule
  • refusal to work overtime
143
Q

What is industrial action?

A

Measures that a union can take to put pressure on management in a dispute in order to make them change their mind about a decision.

144
Q

What is work to rule?

A

Where employees work to the jobs and roles specified in their contract only.

145
Q

What are the three sections of employment law?

A
  • laws relating to the recruitment process
  • laws relating to the employees in the workplace
  • laws relating to the termination of employment
146
Q

What does the equality act do?

A

Makes it illegal to discriminate against anyone because of;

  • age
  • sexuality
  • gender
  • religion
  • being pregnant
147
Q

What must a business implement to comply with the health and safety at work act 1974

A
  • ensure the building is safe to exit and enter
  • ensure the temperature is within certain limits
  • provide training in any hazards associated with the work
  • have written safety policy
148
Q

What is equality policy?

A

A policy to ensure fair and consistent treatment of all employees so that they are not discriminated against, bullied or harassed on the grounds of sex, race and so on. Managers should ensure that all employees are aware of this policy and its implications

149
Q

What should managers do regarding equality policy?

A

Managers should ensure that all employees are aware of this policy and its implications

150
Q

What does ACAS say is required regarding equality policies?

A

That the policy needs to be reviewed and monitored constantly.

151
Q

What is the minimum wage act?

A

Lays down the minimum level of pay to which employees aged 18 years and over in the UK are entitled.

152
Q

What did the equal pay establish?

A

That women and men are entitled to the same pay for work of equal value

153
Q

What does the work and families act establish?

A

Establishes the right for paternity leave, also introduced the rights to paid leave for parents adopting children.

154
Q

What did the data protection act do?

A

Businesses are not allowed to disclose personal information to other individuals within the business or another organisation

155
Q

What are grievances?

A

When an employee has a concern complaint or problem.

156
Q

What are the two types of EU law?

A
  • regulations

- directives

157
Q

What are EU regulations and directives?

A

Legislation emanating from the European parliament . Regulations have to be adopted and applied in a certain way, whereas it is up to the individual member country to decide how to implement a directive

158
Q

What is an unfair dismissal?

A

Where an employee is dismissed without valid reason or the employer fails to follow the proper procedures

159
Q

What are the 2 types of “fair” dismissal?

A
  • Gross Misconduct

- Gross negligence - reckless disregard for the safety of others

160
Q

What is the process taken for a grievance?

A
  • contact manager or person in charge of grievances

- if matter cannot be solved informally then a formal meeting will be held

161
Q

What is an employment tribunal?

A

A special sort if court dealing only with employment law, for example an employees claim for an unfair dismissal, discrimination or victimisation by their employer

Business Studies (10 decks)

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