Human Resources Flashcards
examples of HR objectives
- recruitment objectives = decide the skill level needed for employees, full or part time employment contracts, decide where to deploy employees on which department, need diversity of employees
- helping employees reach their full potential= training, right equipment and resources to help do job properly, career progression, matching the workforce skill levels
- support employee= good communication with employees, giving responsibility to employees who feel valued, improving employee relations with the business to reduce absenteeism,
Internal influences on HR objectives
- business culture
- finances
- other department needs
external influences on HR objectives
- state of the economy
- UK employment laws
- ethical and environmental issues (bad opinions around zero hour contracts)
- improvement in tech may lead to HR need to recruit specific people
Hard HR management
- employees seen as a resource
- employees hired on short term basis
- managers believe employees are mainly motivated by money and think they will do as little work as possible
- appraisals are judgemental
- training is only done to meet production needs
Soft HR management
- employees are the most important resource
- employees are managed on a long term basis
- management motivate employees through empowerment and deveopemt.
-Appraisals are developmental - trainman is done to meet development needs
increase staff morale, easier to retain staff, benefit from skills and experience of staff, encourages commitment and good performance
HOWEVER where employees aren’t interested in development or self empowerment this isn’t useful
also involves higher costs, time consuming
Labour productivity formula
output per period/ number of employees
labour costs per unit formula
labour costs/ output
employee costs as a percentage of turnover
employee costs/ sales turnover x100
HR impact on labour productivity
- diverse workforce making sure everyone feel engaged and motivated can lead to high productivity
- making sure the right people are in the right roles, reduce levels of absenteeism - increasing productivity
- rewards with bonuses and increased salaries can keep motivation high and workers know theyre valued
- ## staff retraining can increase productivity, incentives or redundancies and replacements can lead to higher productivity levels
How to reduce labour costs per unit
- increasing productivity (increase motivation through delegation/responsibility, making employees feel valued, investing in them through training programmes, offering monetary incentives etc)
- employee costs can be decrease through reducing wages and benefits= however could lead to demotivated staff
- MUST consider the ethics of the business = may be more important to ensure employees are respected
Labour turnover formula
(number of staff leaving/ average number of staff employed) x 100
Benefits of high staff turnover
- new ideas and innovation
- firms can recruit staff who have already been trained by competitors
- firms can reduce workforce through natural wastage rather than redundancies
- enthusiasm of new staff influences other workers
Drawbacks of high staff turnover
- lack of loyal experienced staff who know the business
- firm loses staff it has trained
- training costs and productivity drops
- high recruitment costs
Labour retention formula
(number of staff employed at end period - number of leavers/ number of staff employed at end period ) x 100
CHANGE OVER ORIGINAL X100
Tall organisational structure
- long chain of command
- can lead to poor communication
- decisions may take longer to make
- more opportunities for promotion
- staff gain better support from line managers
- smaller span of control = however too small may lead to demotivated staff as they feel like theyre being micromanaged
- piece related pay