Human Resource Management Strategy

Question 1

HRM strategy

Answer 1

A long-term plan for the management of an organization’s human resources

Question 2

hard HRM

Answer 2

an approach to managing employees that focuses on cutting costs

additional info:
- view employees as resources just like any other business resource (managed similarly to equipment and raw materials)
-workforce must be obtained as cheaply as possible and used sparingly and exploited in order to keep labor costs per unit as low as possible.
-used towards peripheral workers (less important workers)

Question 3

soft HRM

Answer 3

an approach to managing employees that focuses on their development so that they reach self-fulfillment, are motivated to work hard and stay with the business

additional info:
-seen as a valuable asset to the company that must be cared for and developed
-used towards core workers (important and play key roles in the business’s success)

Question 4

full-time employment contract

Answer 4

an employment contract that is for a complete working week

(soft HRM)

Question 5

permanent employment contract

Answer 5

a contract that employs a worker unless they are dismissed, made redundant or decide to leave the organization

(soft HRM)

Question 6

advantages of full-time & permanent employment contracts

Answer 6

• help satisfy employees’ safety or security needs, as defined by Maslow
• they can result in high loyalty to the business and low labour turnover

-employers usually prepared to finance training programs to these employees as the workers are more likely to stay with the business

Question 7

disadvantages to full-time and permanent employment contracts

Answer 7

• labour costs become fixed costs as they cannot be easily be varied with output or demand for the products of the business

-the contracts are inflexible, they do not allow employers to quickly vary the number of workers or the number of hours they work

Question 8

temporary contract

Answer 8

a contract that is only offered for a fixed period of time, such as six months.

• e.g. employing a temporary employee to cover the absence of a worker on maternity leave
• The contract can be renewed but the employer does not have to do this

(hard HRM)

Question 9

part-time contract

Answer 9

workers are only contracted to work for a certain number of hours each week (less than the full-time working week)

(hard HRM)

Question 10

zero-hours contract

Answer 10

an employee not contract that does not guarantee a minimum number of hours per week, but the worker is expected to be available when needed by the employer
(hard HRM)

Question 11

gig economy

Answer 11

an employment mix in which temporary, flexible jobs are common and workers are hired as independent contractors or freelance employees

Question 12

advantages of hard HRM employment contracts to the business (temp., part-time, zero hours, gig contracts)

Answer 12

• fixed labour costs reduced

-efficiency of the employees can be observed and assessed before offering full time contracts

• competitive advantage as customer service can improve by hiring more employees on busy hours without substantial costs increases e.g. businesses during weekdays may need workers mainly in the evening (when ppl get off of work/school)

-more availability of workers should there be absenteeism

• zero-hours contract means there is no fixed cost element in the workers’ salaries

Question 13

disadvantages of hard HRM employment contracts to the business (temp., part-time, zero hours, gig contracts)

Answer 13

• more number of employees to manage
• difficulty in effective communication, hard to do team meetings and business will have to rely on good IT communication methods
• low motivation as temporary/part-time workers would feel less involved and committed to the organization compared to full-time workers
• workers may have more than one “zero hour contract” so they may not be available immediately

Question 14

advantages of hard HRM employment contracts to employees (temp., part-time, zero hours, gig contracts)

Answer 14

• some workers may prefer flexibility and greater control over their work. Can lead to better work-life balance (e.g. parents w/ young children)
• workers may be able to provide themselves with greater variety and experiences in work. (more opportunities, less risk of being completely unemployed)
• two or more part-time jobs may provide similar pay to a full-time one

Question 15

disadvantages of hard HRM employment contracts to employees (temp., part-time, zero hours, gig contracts)

Answer 15

• pay will be less than on a full-time contract
• job security is low
• fewer training opportunities
• working conditions are inferior to full-time employees (e.g. holiday entitlement, pension rights)

Question 16

flexible employment contracts

Answer 16

a contract that allows employees more control over their work-life balance. Includes work from home, flexible start and finish times, to work part-time or to job share

Question 17

flexitime arrangements

Answer 17

a flexible way of working that allows employees to fit their working hours around individual needs and to accommodate other commitments outside work

Question 18

home working

Answer 18

when an employee works from home, often for a specific number days per week, but keeps contact with the office by means of modern IT communications e.g zoom meetings

Question 19

annualized hours contract

Answer 19

a contract offering a specific number of hours of work over the whole year, with some flexibility about when those hours are worked

Question 20

job sharing

Answer 20

a work schedule where two employees voluntarily share the responsibilities and workload of one full-time job

Question 21

compressed working hours

Answer 21

the number of hours per week of a full-time job, but worked in fewer days (e.g. 4/10, working 4 days for 10 hours per day)

Question 22

benefits of flexitime

Answer 22

to employees: more choice over working hours; the ability to plan for other activities

to employers: able to attract well qualified recruits; having a longer working day; better customer service; improved workforce motivation

Question 23

limitations to flexitime

Answer 23

• there may not be enough employees in attendance at a given time, careful employee scheduling will be needed
• team working becomes difficult
• holding team meetings and communication becomes more difficult

Question 24

benefits to home working

Answer 24

• suits employees who have a long commute
• reduces time wasted in travel
• reduces business costs of accommodating all employees at one time
• employees can share desks/workstations
• easier to recruit good quality employees

Question 25

limitations of home working

Answer 25

• difficulty in assessing employee performance when working from home
• no face-to-face contact possible during home working days
• the employee has less social contact and team working becomes more difficult

Question 26

benefits of annualized hours contracts

Answer 26

• a period of regular hours forms the core of the arrangement with the remaining time left unallocated and used and when needed
• offers employees more flexibility for planning other activities

Question 27

limitations of annualized hour contracts

Answer 27

• less freedom for workers then intended if they can be called to work at a very short notice
• if annual hours are used up before the end of the year, high-cost overtime rates might have to be offered

Question 28

benefits of job sharing

Answer 28

• employees can cover for each other in case of any illness
• workers may be more productive when doing the work (less tired or stressed)
• the business is able to keep two experienced employees per job role
• workers have greater freedom to achieve a work life balance

Question 29

limitations to job sharing

Answer 29

• HR administration has to provide for two weeks rather than one
• confusion may arise over who is responsible and accountable for what
• if there is a lack of trust between the workers sharing the job, the scheme is unlikely to be successful

Question 30

benefits of compressed hours contract

Answer 30

• offers employees more opportunities for 3 day weekends
• employees with long commutes to work may appreciate having another day off

Question 31

limitations of compressed hours contract

Answer 31

• working parents may not be able to accommodate longer working days
• some people prefer working in shorter bursts rather than for longer stretches
• must ensure sufficient workers are in attendance each day, which may be a problem as some days are popularly taken off as holidays

Question 32

shift work

Answer 32

work that takes place on a schedule outside the traditional 9-5. It can involve evening or night shifts, early morning shifts and rotating shifts

Question 33

benefits of shift work

Answer 33

• it increases the output of the business
• ensures expensive capital equipment is fully used
• provides more flexibility to the business according to demand. If demand falls, one shift can be eliminated

Question 34

limitations of shift work

Answer 34

• machine maintenance and repair schedules have to be built into the shift system
• about 20% of night and rotating shift workers are though to have a sleeping disorder known as “shift work disorder”, this can reduce productivity and cause long term stress related issues

Question 35

measure of employee performance - reasons why labour productivity may increase over time

Answer 35

• improved employee motivation and higher levels of output
• more efficient and reliable capital equipment
• better employee training
• increase worker involvement in problem-solving and decision-making esp. to speed up methods of production
• improved operations efficiency (e.g. no waiting time for supplies to arrive)

Question 36

absenteeism

Answer 36

a measure of the rate of workforce absence as a proportion of the employee total

absenteeism (%) = (no. of days of employee absence/ total no. of workdays) x 100

e.g. a business recorded 225 days of employee absence. it employs 1000 orders on 5-day a week full-time contracts.
total number of workdays therefore = 5000

225/5000 x 100 = 4.5%

Question 37

how does absenteeism affect a business?

Answer 37

• poor customer service when staff is absent
• overburden on present staff members
• can reflect low level of motivation contributing to high absenteeism (e.g. poor. working conditions can lead to illness or over-supervision can lead to worker stress)
• delays in orders
• expensive to employ extra staff to cover for absences

Question 38

other measures of workforce performance (other than labour productivity and absenteeism rates)

Answer 38

• wastage rates: the proportion of materials wasted and the proportion of total output that is damaged
• quality level and reject rates: proportion of output that is of unacceptable quality
• consumer complaints as a proportion of total customers served
• comparing an individual’s performance against pre-set objectives

Question 39

hard and soft strategies to improve employee performance

Answer 39

HARD:
focuses on warnings, disciplinary actions if targets aren’t achieved and flexible contracts so that “frequent poor performance” can easily lead to dismissal

SOFT:
- regular appraisal of performance against pre set targets
- training to increase efficiency and to challenge employees
- quality circles
- autonomous work groups (teams of workers given training and the responsibility of decision making over a complete section of work)
-financial incentives e.g. share in profits
-investing in technology
-management by objective

Question 40

management by objectives (MBO)

Answer 40

establishing a management information system to compare actual performance and achievements against pre-set objectives for each department or employee

Question 41

MBO - benefits

Answer 41

1. each manager and subordinate will know exactly what they have to, as well as make them know the importance of what they do to the entire organization, can lead to increased productivity
2. everyone will be working towards the common overall aim. Avoiding conflict and allow for consistency and coordination
3. objectives act as a control device to monitor employee performance by setting goals agreed with the employees themselves, can measure success or failure

Question 42

MBO - limitations

Answer 42

• the division of aims to individual targets can be very time consuming
• objectives can become outdated due to external factors such as changes in the economy or competitor behavior
• setting targets does not guarantee success (e.g issues concerning adequate resources and employee training must be also addressed)

Question 43

recent IT applications in HRM

Answer 43

1. recruitment = web portals allow employers to post details about job vacancies and the qualifications and experience required from applicants
2. training and development = training programs can be uploaded on IT, e.g. essential induction training programs.
3. employee performance management = computerized performance management software allows regular recording and updating of employee performance

Question 44

evaluation of increased use of IT in HRM

Answer 44

-the use of IT frees up HRM time for more important strategic issues (e.g. using a chat bot to answer common questions from employees’ related to pay, holiday entitlements an employees’ rights can allow the HR department to focus on answering more urgent and complex employee issues)

• it can reduce social and personal contact between HRM and employees. Can make the HRM managers seem remote
• increased dependence on IT based communication methods reduce the opportunity for two-way group discussions, unless conferencing software is used
• there is a risk of creating a sense of being watched and monitored at all times amongst employees