Human Resource Management (Unit 4) Flashcards
1
Q
What is a salary?
A
- fixed regular payment
- expressed in the form of an annual sum
2
Q
What is a wage?
A
- regular payment
- based on the hours worked
- normally paid on a weekly basis
3
Q
What is an Equal Opportunities Manager?
A
- employer who does not discriminate employees because of gender, race, religion etc.
- employees are selected, promoted and treated fairly based on suitability for the position
4
Q
HRM
A
- concerned with the management of people
- process of evaluating personnel needs
- finding suitable people to fill those needs
- makes sure good working relationships are maintained
5
Q
Functions of HRM
A
- Manpower planning
- Recruitment and Selection
- Training and Development
- Industrial Relations
- Performance Appraisal
- Rewarding Employees
6
Q
- Manpower Planning
A
- identifying the type and number of human resources needed in company
7
Q
3 steps in Manpower Planning
A
- Forecast future demand:
- estimates how many employees are needed - Calculate existing supply:
- HRM must conduct an audit of existing employees
- see how many workers business has - Recruit or Redundancy:
- demand exceeds supply
= recruit
- supply exceeds demand
= staff made redundant
8
Q
Benefits of Manpower Planning
A
- Sufficient workers:
- ensures business always has enough workers to carry out jobs needed
= makes job a success - Saves money:
- ensures business does not employ too much workers
= reduces business’ wage bill - Understaffed:
- avoids understaffed problems
- too few workers
= products not made on time
–> dissatisfied customers
9
Q
- Recruitment and Selection
A
Recruitment: process of attracting a group of potential candidates with appropriate skills and abilities to apply for a specific vacancy
Selection: choosing the most suitable candidates from applicants attracted
10
Q
Stages in Rec. and Sel.
A
- Prepare a job description:
- sets out purpose of job, where job fits into the organisation structure, main accountabilities and responsibilities and key tasks
- defines who reports to whom - Prepare a person specification:
- sets out the kind of qualifications, skills, experience and personal attributes
- refers to the person rather than the post
- useful in comparing and assessing the suitability of applicants
3(a). Job advertisement:
- HR manager creates advertisement based on job description and person specification
- firms website, newspapers etc.
3(b). Decide how to recruit:
- 2 main sources
-> Internal
-> External - Screen and Interview:
- screening carried out by making a short list of interviewees by examining CV’s and dismissing unsuitable candidates
- selection: assessing short list to find most suitable for job
- selection tests
–> IQ tests, aptitude tests etc.
11
Q
Internal Recruitment
A
- employee is familiar with culture, policies and work practice
- training and advertising costs reduced
- motivation improves
–> employee recognizes that opportunities will occur as vacancies higher up the chain of command become available - no “new blood”
= no new thinking - promotion within can have a negative effect on levels of cooperation between employees
12
Q
External Recruitment
A
- fresh new perspective brought to business
- new employee may have skills and experience required that is not present among existing staff
- training costs may be avoided as employee may have skills required
13
Q
Curriculum Vitae
A
- document prepared by an applicant for a job which summarizes qualifications and work experience
- used to obtain an interview when seeking a job
Contains: - name
- address
- education
- work experience
- references
14
Q
Application Form
A
- document printed by employer asking a series of personal questions regarding education, experience etc.
15
Q
Letter of Application/Covering Letter
A
- applicant introduces themselves, qualities they can bring , states the job applying for and outlines a brief summary of why they want it
16
Q
Screen and Interview
A
Job Interview:
- used to determine if a candidate and job compliment each other
- process in which potential employee is evaluated by an employer for prospective employment
Panel Interview:
- selection technique used to choose the candidate who most closely matches criteria set out in person specification
- candidate interviewed by a group of interviewers to reduce bias
- ensures questions ae distributed across the panel
17
Q
Reference Check and Job Offer
A
Reference check:
- HR manager conducts a reference check on candidates who performed best at interview
- reference is provided by someone that can confirm work experience and education details given by the candidate
Job Offer:
- HR manager makes a job offer to the successful candidate usually by phone
18
Q
Benefits of Recruitment and Selection
A
- Saves time and money:
-drawing up a job description and person specification in advance helps business to find right person and not have to process lots of unsuitable candidates - Choosing the right person:
- choosing a candidate who shares the business’ beliefs will lead to less industrial action
- saves money if good relationships exist
–> no strikes - Productivity:
- choosing right person to make sure job is done well
= greater productivity within business - Low labour turnover:
- employees happy in job and will not leave in immediate future
19
Q
- Training and Development
A
- training provides workers with the skills, knowledge and attitudes required to improve their abilities to perform jobs
- development attempts to improve the person as a human being
–> long-term concept to help people reach their full potential
20
Q
Types of Training
A
- Induction
- On-the-Job
- Off-the-Job
21
Q
- Induction Training
A
- new initial training of new employees
- new employees introduced to the people they will work with and report to
- informs them about the firms code of ethnics
- gives info. about salary, payment etc
22
Q
- On-the-Job Training
A
- worker trained at work
- learn job through practice
E.g. HRM in a hospital trains a nurse in the emergency dept. operating theatre and hospital wards
23
Q
- Off-the-Job Training
A
- worker is taught how to do the job by attending courses
24
Q
Importance/Benfits of Training and Development
A
- Skills:
- good training and development gives workers skills needed to do a good job and make good quality products
–> better quality
= higher sales and profits - Flexibility:
- variety of skills and makes workers more flexible
- better able to cope with changes in the business - Time Management:
- workers are good at their job so less supervision is needed
- frees managers up to concentrate on more important issues - Reduces Conflict:
- less conflict between managers and employees over unsatisfactory work
- improves industrial relations
25
4. Industrial Relations
- refers to how employers and employees communicate with each other, work together and generally get on with each other
Good industrial relations can be achieved by:
1. communication
2. consultation with workers in decision-making
3. fair treatment of workers = trusting relationship
26
Importance/Benfits of Good Employer/Employee Relationships
1. Improves morale
2. Productivity increases
3. Low labour turnover
4. Delegation
5. No industrial action
27
1. Improved Morale
- employees are happier in their work
= employee morale increases
- increases employee motivation
28
2. Productivity Increase
- good relationship with employer
= more effort put into job
- work harder and do more
29
3. Low Labour Turnover
- employees will stay in job as they are happy
= labour turnover decreases
30
4. Delegation
- employer will delegate work to employee as they trust them
- give employees power to make good decisions for the business
31
5. No Industrial Action
- less chance of industrial action and strikes
- strikes have a negative effect on business
= lose sales and profits
32
Ways to Improve Industrial Relations
1. Regular open communication
2. Grievance procedure
3. Train managers
4. Careful selection
5. Train employees
33
1. Regular Open Communication
- HRM should hold regular face-to-face meetings with employees to keep them informed about the business
- honest and open with employees
34
2. Grievance Procedure
- employees should agree in advance with HRM on procedures for dealing with conflict
- when conflict arises there is an agreed way on solving it e.g. Last In First Out (LIFO)
35
3. Train Managers
- managers should be given training on how to deal with employee problems
- should be taught how to handle conflict so issues do not turn into serious industrial relations problems
36
4. Careful Selection
- HRM should select employees who will fit in and share the business' beliefs
- minimise the likelihood of conflict
37
5. Train Employees
- employees should be given adequate training so they can perform duties expected
of them
- helps reduce conflict
38
5. Performance Appraisal
- involves setting performance targets for each employee and assessing each person's performance in comparison to the standard set
1. Rewards/Training:
- workers who score highly may be rewarded with bonuses, promotions etc.
- workers who score badly will be given more training
39
Importance/Benefits of Performance Appraisal
1. Training
2. Promotion
3. Future pay rises and bonuses
4. Improves communication
40
1. Training
- identifies employees who need more training
- after training, performance should be evaluated again to see improvement
41
2. Promotion
- identifies employees who are suitable for a promotion
- they have proved their ability at their current job and show potential for more responsibility
42
3. Future Pay Rises and Bonuses
- result of performance appraisal can be used to determine pay rise or bonus
- employees who score highly get higher pay rise and bonuses than those who score badly
43
4. Improves Communication
- performance appraisal involves regular meetings between manager and the employee
= relationship should improve
- improved industrial relations
44
6. Rewarding Employees
- pay and rewards consist of the incentives offered to employees for work done
- significant source of motivation
45
Methods of Rewards
(financial)
1. Time Rate
2. Piece Rate
3. BIK
4. Profit Sharing
5. Share Ownership
6. Bonus
7. Commission
46
1. Time Rate
- payments are made for a fixed amount per hour
e.g. €10 per 37 hours
- system is cheap and easy to operate
- used a lot where the amount of work performed is outside the control of the employee e.g. office work
47
2. Piece Rate
- payment of the number of units produced or job completed
(more units, more money)
- productivity incentive is offered to employees who produce above an agreed amount (quota) while time rate applies up to the quota
48
3. BIK
- non-cash payment
- employees receive items worth money e.g. company car, phone
49
4. Profit Sharing
- form of a bonus
- employees paid a percentage of the profit made by the business
- motivates employees to increase profits by reducing costs and or increasing outputs (sales) and thus their own earnings
50
5. Share Ownership
- employees are given cheap or free shares as a form of a bonus
- motivates employees, maintains interest and improves organisational communication
51
6. Bonus
- sum of money paid to employees for an agreed task e.g. producing units above agreed limit
- encourages employees to work towards a target
52
7. Commission
-employee receives a percentage of the sale they make e.g. payments to a salesperson (10%) in proportion to the level of sales achieved
53
Non-Financial Rewards
1. Job Enlargement
2. Job Enrichment
3. Promotion
4. Flexitime
5. Job Sharing
54
1. Job Enlargement
- employees are given extra duties to do in order to relieve the boredom of work
- extra duties do not carry extra responsibilities
55
2. Job Enrichment
- employees are given greater responsibility in the business
- they're given tasks intended to develop them and to get them to use their full abilities and skills
56
3. Promotion
- the movement to a more responsible senior level in the business
- carries a higher wage
- often the job title, bigger office or availability of a personal assistant that is the real reward (Maslow's self-esteem needs)
57
4. Flexitime
- employees have the freedom to choose own working hours within an agreed time frame
- allows employees to work from home
58
5. Job Sharing
- involves an employee sharing a position e.g. 2 employees have a job split between them
- flexible approach to employment and recognises employees may wish to prioritise leisure over work
59
Importance of Pay and Rewards
1. Increases Sales and Profit
2. Attracts Suitable Candidates
3. Increases Job Satisfaction
60
1. Increases Sales and Profit
- good pay and rewards motivate employees to work harder and produce better quality products
- leads to greater sales and profits
61
2. Attracts Suitable Candidates
- good pay and rewards help business to attract the very best employees
- can be done at the recruitment and selection stage
62
3. Increased Job Satisfaction
- rewarding employees for high quality work increases their job satisfaction
- increases their loyalty to the business
