Human Resources Flashcards
Main steps of the recruitment and selection process
- Identify a vacancy
- Draw up job description
- Draw up person specification
- Advertise job
- Review applications
- Shortlist candidates
- Interview
- Appoint new employee
Why might a new job vacancy arise?
Current employee leaves for a new job
Current employee leaves to retire
Current employee is promoted within the business
Current employee is dismissed
Current employee becomes ill (creating temporary post)
Current employee goes on maternity leave (creating temporary post)
Current employee passes away
The business is growing and needs more employees (ie they are opening new shops)
The business needs employees with new skills (ie employees with cyber security skills)
Job description
A document that describes the duties that a worker is required to carry out
(Eg duties could include writing letters and answering the telephone)
Person specification
A document that lists the qualifications, skills and experience that a worker needs to be able to carry out a particular job
(Eg having good communication skills and an English Language GCSE)
Internal recruitment
When a vacancy is filled with someone who already works in the organisation
External recruitment
When the organisation fills a post with someone from outside of the organisation
Benefits of internal recruitment
It’s good for morale when someone within the organisation is promoted
The organisation already knows the employee and the employee already knows how things are done within the organisation
It frees up another vacancy for a different employee to be promoted into
It is often cheaper because expensive advertising methods aren’t needed
Disadvantages of internal recruitment
Existing staff may not add new ideas to help the business to improve
There may not be many people willing and able to apply, so the choice is limited
The job of the person appointed to the post will need to be filled so further recruitment is needed
If an employee is promoted within the business, other workers may be jealous and it can cause resentment
Benefits of external recruitment
It usually means that there is a larger pool of candidates to choose from
It can help to stop resentment amongst the existing team
It brings new ideas into a business
Disadvantages of external recruitment
It usually takes a longer time to recruit using this method
It usually costs more (eg because of having to advertise the job)
It can be riskier because managers don’t know the candidates as well
Recruitment
The process of searching for new employees and trying to get them to apply for jobs
(Ie through a job advert)
It involves finding a suitable pool of candidates for a vacancy
Selection
Involves screening of the candidates who have applied (ie through a face-to-face interview) so that the most suitable person for the job can be chosen
Ideally, the following information should be included in a job advertisement…
Duties (or link to the job description)
Qualifications, experience needed, skills needed (or link to the person specification)
Salary details
Days and hours of work
Place of work
Closing date and start date
Contact address
How to apply for the job
Methods of recruitment
Local newspapers
National newspapers
Shop window
Own websites
Recruitment agency websites
Word of mouth
Social media
Why is an effective recruitment strategy important to a business
To find the most appropriate pool of candidates
To gain enough candidates to choose from
To save time for the selection process
To ensure only right candidates apply
To ensure the HR department operates within budget
Businesses don’t want to sort through candidates that aren’t suitable
CV (Curriculum Vitae)
A document that applicants provide to a business, including details such as personal details and education.
It allows the firm to see if the applicant matches the person specification.
What information should ideally be included in a CV?
Personal details
Education history
Previous employment history
Suitablity and reasons for applying for a job
Names of referees
Advantages of CVs
Using a CV saves time for both the employer and the candidate
CVs can be sent in without any delay
CVs allow candidates to highlight their assets and businesses are able to get an insight into their personality
It can be easier to choose and examine people
Can encourage more people to apply - larger pool of candidates
Disadvantages of CVs
Formats for CVs are looser and more informal than application forms
There may be outside interference with CVs
May take a long time to read through
May be formatted on a different app or computer which may become rearranged
How does an application form differ to a CV?
A CV is a document created by the candidate whereas an application form is designed by the employer to send out to applicants to fill out.
An application form is specific to the vacancy.
Advantages of application forms
Application forms guarantee consistency
Application forms can enable the business to compare candidates evenly and quickly
The business can tailor the questions asked
Disadvantages of application forms
Candidates may see application forms in a negative way as it is not a document that they already have completed to forward on to the employer - smaller pool of candidates
Application forms are time consuming
Letter of application (cover letter)
A document sent with a CV or application form to provide additional information
Reasons that sending a letter of application with a CV or application form may help a candidate to proceed to the next stage of the selection process
It helps the candidate to stand out from other applicants
It helps create a good first impression
Helps to express your interest in the business
It may show that the candidate has good written skills
Makes the application more personal
Work trial
When a candidate comes into the workplace to meet their prospective team and complete an assigned challenge.
This usually occurs after a phone screening or interview and before they are offered a job contract.
Reasons that work trials can be useful for the employer
Verification of skill and cultural fit
Insights into the candidates’ decision-making skills
Gives the employer and candidate a genuine experience of working together
Helps identify whether they have been truthful about their skikls
Why can work trials be useful to the employee?
The candidate is able to see whether they would be a good fit for the role
Why might a candidate not work well in a work trial?
The candidate may not feel prepared for the work trial as they do not know what to expect and do not know if they have been asked to do the trial because they performed well or not in the interview.
They may feel nervous about being under supervision.
Why might work trials not be useful to the employer?
They may not have an experience which truly reflects how the candidate works (unprepared or anxious that they did something bad in the interview)
Difficult to gain a complete understanding of whether the candidate is suitable in just one day
Candidates will be trying hard to impress the employer (may not reflect what they would be like when not under direct supervision)
Reference
A statement from a previous or current employer or other responsible person about the suitability of the applicant for the job.
What is included in a reference?
Basic facts such as employment dates, absence levels and details about the applicant’s skills and abilities.
Why can job references be useful to an employer?
They confirm whether the information that a candidate has given is true.
This can help them to decide whether make a job offer or not.
Which industries have to give a references?
Only certain industries such as those regulated by the Financial Service Authority have to legally give references.
This means that the use of references can be limited as previous or current employers may choose not to give a reference.
What is a character reference?
A reference provided by someone who is in a responsible position in society. These may provide details about the applicant’s character, strengths and weaknesses.
What is a problem with a character reference?
The applicant can choose who gives the reference, so is likely to choose someone who likes them.
Why might an interview be useful for an employer?
Can validate information from application form / CV
Can query information from application form / CV
Can see how candidates perform under pressure
Can find answers to specific questions
Can establish whether the candidate would fit in with the organisation / the team
Can see if the candidate matches up to their CV / application form (ie are they a good communicator?)
Non-verbal aspects can be considered (ie how they dress, punctuality, confidence)
How are interviews useful to candidates?
They can assess the culture of the business (eg company values)
They can meet the other team members and line manager
They can ask questions (eg the company’s growth strategy)
Limitations of interviews
They assess performance in an interview, rather than long term performance in the job
They are only a short period of time, so cannot gain a full overview of the candidate
Candidates can be affected by nerves so may not perform as well
It can be difficult to compare candidates if they are asked different questions
How can testing be useful when selecting the most suitable candidate for a job?
It is testing the candidate’s initiative
It allows the business to see how the candidate works under pressure
What are psychometric tests?
They are often used as part of the selection process to assess capabilities (intelligence), aptitude for the job (skills) and whether your personality fits in with the vision of the organisation you are hoping to join
Why are tests (ie scenario, psychometric, pen/paper) useful?
Can determine what candidates will do in real situations
Can establish if a candidates personality fits with the organisation
Responses are less likely to be impacted by nerves
Why might tests be limited in their usefulness?
Candidates may give the answers that they think the interviewer is looking for - not how they would really respond
Tests can only assess a handful of traits
Impacts of a business having an effective selection process
Helps to find a candidate with the right skills
Helps to find a candidate who is a good fit for the organisation in terms of personality
Saves time and money in the long run re-recruiting positions
Organisational chart
A diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority
What does an organisational chart show us?
Who each employee reports to
The hierarchy
The most senior and most junior roles
Promotion routes
How communication travels up and down
Horizontal lines of communication
Sown of control
Chain of command
Line relationships
Staff relationships
How are organisational charts useful to people within the organisation?
Employees can know who to report to and where they fit in in the business
Employees can identify those with authority
Span of control
The number of employees (or subordinates) for who a manager is responsible for
Advantage of a narrow span of control
Manager gets to spend more time giving staff clear/direct instructions
Disadvantage of a narrow span of control
Staff may feel ‘watched over’
Advantage of a wide span of control
Independence and less supervision may be more motivating for staff
Disadvantage of a wide span of control
Staff members may perform badly as manager loses control
Chain of command
The order of authority and delegation within a business
Levels of hierarchy
This refers to the number of layers in a business organisation
Line relationship
The vertical relationships (in the organisational hierarchy) between managers and subordinates
Tall / hierarchal structure
An organisation with many levels of hierarchy
Flat structure
An organisation with few levels of hierarchy
Features of a tall structure
Narrow span of control
Long chain of command
More promotion opportunities - more motivating for staff
Communication is more bureaucratic
Features of a flat structure
Wide span of control
Short chain of command
Communication will be quicker
Reasons for tall structures
Employees know who to report to
Managers know who they are responsible for -> clear lines of communication
Leadership and guidance for employees
Reasons for flat structures
More empowering - employees feel greater sense of control
Better sense of teamwork and trust
Ideas are more likely to be shared - quicker improvement
More accurate communication
Leaner - less staff - saving costs
Delayering
A process of reducing the number of levels in an organisational structure
Delegation
Where responsibility for carrying out a task or role is passed on to someone else in the business
Empowerment
Giving employees the power to do their job
(Eg the authority to make decisions, plan their own work, and solve their own problems)
Advantages of delayering
Reduces was costs (long term)
More employee responsibility because of increased delegation
Faster communication and therefore decisions will also be made more quickly
Disadvantages of delayering
Spans of control will widen -> this will mean an investment of time and training possibly to get employees used to working more independently)
Redundancy payments (short term cost)
Damage to staff morale (colleagues leaving and anxieties about further cuts)
Centralised structure
When businesses keep decision-making firmly at the top of the hierarchy (amongst the most senior management)
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 do-ordinate and control from the centre (eg with budgets)
Economies of scale and overhead savings easier to achieve
Quicker decision-making (usually) - easier to show strong leadership
Drawbacks of centralisation
More bureaucratic - often extra layer in the hierarchy (often tall structures)
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 (eg dealing with customer complaints and layout of the store)
Decentralised structure
Some (not all) decision-making is spread out to include more junior managers and lower levels of the hierarchy.
It is up to the business how far decisions are spread out
Benefits of decentralised structures
Decisions are made closer to the customer
Better able to respond to local circumstances
Improved level of customer service
Can enable a flatter hierarchy
Good way of training and developing junior ,management
Facilitates empowerment: should improve staff motivation
Drawbacks of decentralised structures
Decision-making not necessarily ‘strategic’
Harder to ensure consistent practices and policies at each location
May be some diseconomies of scale (eg duplication of roles)
Who provides strong leadership when needed? (Eg in a crisis)
Harder to achieve tight financial control - risk of cost-overruns
Organisation by function
The business is arranged into specialist/functional areas.
This means that each function has some input into the output of the business’ product(s)/service(s)
Advantages of organisation by function
Specialists can concentrate on what they do best and share ideas with each other
Less duplication (ie multiple teams/employees are not recruiting staff)
Disadvantages of organisation by function
Conflict may occur over goals, budgets etc
Segregation of functions means that communication about products different different functions are working on is ineffective
It can be difficult to accredit succes and/or blame about product performance
Departments are often doing a lot of work, but can’t really identify the outcome of their work
Organisation by product
The business is organised according to the different products made
Each product becomes a ‘mini company’ with its own finance, marketing, HR departments etc
Advantages of organisation by product
Easy to see which products and ‘profit centres’ are performing well
Each centre has a lot of autonomy (independence), which increases motivation
Teams can see the direct result of their work
Communication barriers are broken down for specialists
Disadvantages of organisation by product
Different products compete for resources (ie finance), which can cause conflict
Duplication of departments (ie HR) can waste resources
Teams may lose sight of overall direction of the business
Matrix structure
Where individuals work across teams and projects as well as within their own department or function.
Each team member can find themselves with two managers - their normal functional manager as well as the team leader of the project
These teams can be temporary or permanent depending on the tasks they are asked to complete.
Advantages of matrix structures
Can help to 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 functional departments to meet regularly, so reducing costs and improving coordination
Likely to result in greater motivation.amongst the team members
Encourages cross-fertilisation of ideas across departments (eg helping to share good practice and ideas)
A good way of sharing resources across departments - which can make a project more cost-effective
Disadvantages of matrix structure
Members of project teams may have divided loyalties as they report to two line managers
Can put project team members under a heavy pressure of work
Difficult to co-ordinate/communication can be problematic
It takes time for matrix team members to get used to working in this kind of structure and to build relationships with the colleagues that they are working with
Team members may neglect their functional responsibilities
Organisation by division
A large or multinational organisation where there are divisions which can be geographically separated or by the product/service the company produces
Advantages of organisation by division
Each region has a lot of autonomy, which increases motivation
Easy to see which regions are performing well
Have a better understanding of customers in that region
Disadvantages of organisation by division
Regions may lose sight of overall direction of the business
Might be difficult to adapt to different cultures in each region
Conflict for resources
Losing consistency with your brand
Duplication of roles
What can organisation by function also be called?
Organisation by system
Appraisal
A formal assessment of an employee’s performance
What is often included in an appraisal?
Strengths
Development areas
Performance targets
What might the purpose of appraisals be
Helps make the business more efficient and productive
Could make employees feel valued
Could prevent the need to employ more staff
Motivates staff to work towards a reward
Improved relationships with employer and employees
To give staff a focus
To set the standard/expectations
To make pay/training decisions
To record any issues (collect evidence)
Managerial appraisal
A method of appraisal where a manager examines and evaluates an employee’s performance
Advantages of managerial appraisals
Employees receive expert input from manager
Makes subsequent actions such as deciding about promotion, rewards and disciplinary procedures seem fairer
Disadvantages of managerial appraisals
Manager may not work closely with employees to know their strengths and development areas
Input is limited to one point of view (the manager’s)
Self assessment
Employees assess their own performance, often 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
Benefit of using self appraisal as a stand alone method
Individuals often feel in the best position to identify their strengths and development areas because a manager may not work closely enough with them
Drawback of using self assessment as a stand alone method
The employee may be biased when completing their assessment due to having a lack of objectivity
Why is a self assessment often used before a managerial appraisal?
The manager can prepare what to say to the employee
The employee can feel less anxious as they know what to expect
360 degree appraisal
Involves an employee receiving feedback from several people in the organisation
This is more appropriate for staff who work in large businesses with multiple teams
Peer assessment
This is when the appraisal is carried out by a work colleague
Advantage of 360° appraisals
A broader picture of performance will be obtained
Disadvantage of 360° appraisals
Could end up with too much conflicting information to base targets upon
Advantage of peer appraisals
Peers have very clear idea on how an employee is contributing to the team
Disadvantage of peer appraisals
Appraisal may end up being either overly positive or negative depending on relationships (an issue if appraisal is linked to pay)
What are the ways if measuring workforce performance?
Labour turnover
Absenteeism
Lateness
Productivity
Labour turnover
A measure of the number of employees who have left the business (usually over the last year) relative to the number of employees employed in that period
Labour turnover equation
(Number of employees leaving during the year ÷ average number employed during the year) x 100
Absenteeism
When employees are absent from work
Absenteeism equation
(Total days absent in the month ÷ total available working days in the month) x 100
Short term absence
Where an employee is absent from work for a day or a few days
Long term absence
Where an employee is off work for a lengthy period, often due to illness
Lateness equation
(Total number of late arrivals ÷ total number of scheduled arrivals) x 100
Productivity
A measure of output per employee in a particular period of time
Productivity equation
(Output [per week/month/year] ÷ average number of employees)
Benefits of improving employee performance
Increased output
Increased speed
Increased efficiency
Reduced waste
Reduced training costs
Reduced recruitment and selection costs
Less resentment amongst the team
Limitations of using quantitative data
Averages can be misleading
Not all departments employ the same number of people
A single figure in isolation is of limited use
Numbers do not explain the situation
Ways performance can be related to pay
Piece rate
Bonuses
Commission
Pay scale
Employee contribution
What an employee gives to the business (eg their expertise and efforts)
Their contributions might be discussed during their appraisal
The 4 main styles of leadership
Autocratic (more control)
Paternalistic
Democratic
Liaises-fair (less control)
Features of autocratic leadership
Full control of decision making
Uses power from position to get others to carry out work
Employees have little or no input
Motivation through rewards (ie piece rate payment)
Can be demoralising
Can be effective in emergency situations or a crisis
Benefits of autocratic leadership
Clear line of control
Good for inexperienced or demotivated workers
Quicker decision making
Increased productivity
Limitations of autocratic leadership
Increased work burden
Bad for highly skilled and motivated workers
Leader dependence
Quality of decisions might be poorer as workers might know the working conditions better
Features of paternalistic leadership
A softer form of autocratic leadership - leader decides what is best for employees and addresses their needs
Still little delegation
Typical paternalistic leader explains the specific reason as to why he/she has taken certain actions
Leaders balance employee well-being and meeting goals
High levels of loyalty and trust
Managers listen to employees but make final decision
‘Tough love’
Advantages of paternalistic leadership
Manager involves employees in decision making
Manager provides feedback and answers questions
These elements can keep employees satisfied and motivated
Disadvantages of paternalistic leadership
If the wrong decision is made then employees might be dissatisfied with the leader
Employees rely on leader
Team might become competitive
Features of democratic leadership
Focus of power is more with the group as a whole
Leadership functions are shared within the group
Employees have greater involvement in decision-making
Emphasis on delegation and consultation, although leader has final say
Seeks input to make decisions
Advantages of democratic leadership
Empowering and promotes creativity
Employees work hard when leader isn’t present
Employees can see their input in decisions
Employees know the business well so are better able to make informed decisions
Can help to motivate employees, leading to more productivity and higher retention
Better quality decisions
Disadvantages of democratic leadership
Slows down decision making, which is not useful in emergencies
May be conflict in decision making
Staff lacking experience and confidence may not feel that they are in a position to make decisions and may want to be told what to do
Features of laissez-faire leadership
Gives employees little direction
Responsibility for decision making lies with individuals and the group
Leaders get employees to choose how to complete objectives, make decisions and resolve problems on their own
Examples of jobs that may adopt a laissez-faire style of leadership
Surgeons
Creative jobs (eg interior designers)
Advantages of laissez-faire leadership
Works best with highly educated and motivated employees
Autonomy means high job satisfaction
Employees can feel more motivated
Decisions can be made quickly
Disadvantages of laissez-faire leadership
May be damaging if employees do not manage their time well, are less educated, or less motivated
Employees might not be motivated to work, leading to lower productivity and more waste
Poor decisions could be made
What is the trait theory (theory x and theory y)?
Two contrasting theories, developed by social psychologist Douglas McGregor, that explain how managers’ beleiefs about what motivates their people can affect their management style
Theory X assumes that workers:
Dislike their work
Avoid responsibility and need constant direction
Have to be controlled, forced and threatened to deliver work
Need to be supervised at every step
Have no incentive to work or ambition, and therefore need to be enticed by rewards to achieve goals
Theory Y assumes that workers are:
Happy to work on their own initiative
More involved in decision making
Self-motivated to complete their tasks
Enjoy taking ownership of their work
Seek and accept responsibility and need little direction
View work as fulfilling and challenging
Solve problems creatively and imaginatively
Which style of leadership is a theory X leader likely to adopt?
An autocratic style
Are there any situations when it would be effective to adopt a theory X approach?
Larger organisations with more staff
Low-skilled jobs, with little opportunity for self-development and labour turnover is high
Where staff lack experience and confidence
How do you prove that theory X and theory Y are self-fulfilling prophecies? (In exam questions)
Belief
Action
Conformation of belief
Blake and Mouton’s managerial grid
A grid that represents the degree to which managers have a concern for people and the tasks
What are the sections of Blake and Mouton’s managerial grid?
Impoverished (low tasks, low people)
Authoritarian (high tasks, low people)
Country club (low tasks, high people)
Team leader (high tasks, high people)
Middle of the road
Features of an authoritarian leader
Task orientated and hard on their workers (autocratic)
Strong schedules
Lack of employee attention can lead to resentment, lack of commitment, and other human resource problems
Features of an impoverished leader
‘Delegate and disappear’ management style
Allows the team to do whatever it wishes
Low morality and productivity
Unable to ensure work is completed to the desired standard on time
Features of a country club leader
Morale is high, but employees may take advantage
Fear that using power could jeopardise relationships with other team members
Features of a team leader
Leads by positive example
Encourages meeting deadlines but also strengthening bonds with team members
High levels of motivation and high productivity
Features of a middle of the road leader?
Compromises between the two sets of needs
Neither set of needs is truly met
May be indecisive and timid
What is the type of leader from Blake and Mouton’s managerial grid that gives the best results?
A team leader because they are able to balance the people and the team.
Carlyle and Galton’s trait theory
The five characteristics exhibited by successful leaders.
They believed that leaders are born not made
What are the five characteristics of Carlyle and Galton’s trait theory?
Motivational - the ability to motivate others
Integrity - the quality having strong moral principles
Self-confidence - being assured
Creativity - new ideas
Intelligence - able to reason, and solve problems
Benefit of Carlyle and Galton’s trait theory
It is a simple theory to understand and it is fairly straightforward to identify the characteristics which a leader does/does not possess
Limitation of Carlyle and Galton’s trait theory
There is no single set of traits that have been proven to be the most effective and other research suggests that these characteristics cannot be taught
Tannenbaum and Schmidt’s continuum
A continuum that depicts four different styles of leadership starting at boss-centred leadership to subordinate-centred leadership.
What are the four leadership styles on Tannenbaum and Schmidt’s continuum?
Tell, sell, consult, participate
(Boss centred leadership ————> subordinate centred leadership)
Features of ‘tell’ leadership
The leader of manager just informs the employees of his or her decision and can be seen as an autocratic approach, as focus is on the leader
The employees will be expected to comply
This approach does not give the employees an opportunity to be involved in the decision making process
Features of ‘sell’ leadership
When a leader or manager makes a decision, but attempts to ‘sell’ the decision to the employees
This style suggests that there is some consideration of the employees rather than just ‘telling’ them
A degree of persuasion is taking place
There is also the opportunity for feedback
Features of ‘consult’ leadership
The leader will present his or her ideas to the employees and invite discussion and therefore offers a more collaborative approach
The leader will listen to the ideas of the employees and ‘two-way’ communication will be the norm, unlike ‘tell’
Features of ‘participate’ leadership
Focus is now on the employees and not the leader
The leader or manager will ask the employees to make a decision, although usually within defined limited or boundaries
The emphasis is on the employees and is similar to a more democratic style of leadership
Adair’s three circle theory
Adair’s ‘action-centred leadership’ highlights the three concerns of manager’s for the task, the team, and individuals
Managerial responsibilities: the task
Identify aims and vision for the group, purpose, and direction - define the activity (the task)
Identify resources, people, processes, systems, and tools (inc. financials, communications, IT)
Create the plan to achieve the task - deliverables, measures, timescales, strategy and tactics
Establish responsibilities, objectives, accountabilities and measures, by agreement and delegation
Set standards, quality, time, and reporting parameters
Managerial responsibilities: the team
Establish style, culture, approach of the group - soft skill elements
Anticipate and resolve group conflict, struggles or disagreements
Assess and change as necessary the balance and composition of the group
Develop team-working, cooperation, morale and team-spirit
Identify and meet group training needs
Managerial responsibilities: the individual
Understand the team members as individuals- personality, skills, strengths, needs, aims, and fears
Assist and support individuals - plans, problems, challenges, highs and lows
Identify and agree appropriate individual responsibilities and objectives
Give recognition and praise to individuals - acknowledge effort and good work
Where appropriate reward individuals with extra responsibility, advancement and status
Why do the three circles in Adair’s model overlap?
Each of the functions are interdependent
The task needs a team because one person alone cannot accomplish it
If the team needs are not met the task will suffer and the individuals will not be satisfied
If the individual needs are not met the team will suffer and performance of the task will be impaired
How is Adair’s three circle theory different to Carlyle and Galton’s?
Carlyle and Galton believed that a leader is born and cannot be taught, whereas Adair’s theory showed that leadership could be taught and didn’t just depend on the traits a person had.
Benefits of Adair’s three circle theory
Provides a great blueprint for leadership and the management of any team, group or organisation
It is a simple leadership and management model, which makes it easy to remember and apply, and to adapt for your own situation
It is motivational to believe that you can be taught to become a better leader
Limitations of Adair’s three circle theory
It was first formulated in the 1970s, so can be seen as out-of-date and too simplistic
Conflict may occur between the elements. It is difficult in practice to focus equally on all concerns as they naturally clash
Trait leadership type
Defined as habitual patterns of behaviour and thought
Carlyle and Galton, McGregor
Behavioural leadership type
Focuses heavily on the actions of the leader
Blake and Mouton
Contingency leadership type
Supposes a leader’s effectiveness is dependent on whether their leadership style suits a particular situation
Lewin, Tannenbaum and Schmidt
Functional leadership type
A leadership style that leads with the belief that a team working together will achieve better results than people working individually
Adair
Characteristics of a manager
Obeyed by subordinates
Minimises risk
Prefers the status quo
‘Steady state’
Sets an example
Tells employees to follow procedure
Not very outgoing
Task focused
Characteristics of a leader
Followed by subordinates
Risk-taker
Embraces change
Creative
Inspires others to behave in a certain way
Encourages new ways of thinking
Charismatic
People focused on- soft skills, persuasive
Management
The process of co-ordinating the activities of a business in order to achieve defined objectives
Functions of management (definition)
The set of core activities which define the role of managers in a business environment
What are the four functions of management?
Planning, organising, directing, and controlling
What is the difference between planning and organising?
Planning involves an individual going through a process to decide what they want to achieve (making decisions)
Organising involves arrangement (ie taking action)
These functions are complimentary
What is the difference between directing and controlling?
Directing involves giving duties to employees, whereas controlling is the way that a manager ensures that work is done.
How might a manager’s success be measured?
Customer service reviews / feedback
Employee retention
Sales levels
Absenteeism levels of employees
Ability to meet deadlines
Staff/line relationships
Reputation
Quality of tasks completed
Meeting objectives
Individual targets (from appraisals)
Increasing output
What constraints could prevent a manager from being successful?
Poor communication
Insufficient market research
Lack of experience / planning / trust
Unreliable suppliers
Time of year
External issues (eg the economy, the pandemic etc)
Ability and confidence to make decisions
Amount of resources
Structure of the organisation
Budget of the business
Strength of competition
Skills or ability to manage
Redundancy
Redundancy is a form of dismissal.
It happens when employees need to reduce their workforce and so a position no longer exists.
Dismissal
Termination of the contract of employment of an employee, often as the result of a disciplinary procedure.
Unfair dismissal
Where an employee is dismissed without a valid reason or the employer fails to follow the proper procedures.
Fair dismissal
Where an employee is dismissed with a valid reason and the employer follows the proper procedures
Fair reasons for dismissal
Gross misconduct
Gross negligence
Repeatedly poor conduct (eg lateness or failing to comply with reasonable requests from a manager)
Incapability (eg being too ill to work)
Capability (eg repeated inability to do the work required)
Redundancy (if the job no longer exists)
‘Some other substantial reason’
Unfair reasons for dismissal
Pregnancy
Whistle blowing
Trade union membership
Discrimination
Whistle blowing
If an employee has evidence or ‘reasonably believes’ that malpractice in an organisation is occurring, he or she can bring it to the attention of someone in authority without fear of retribution.
Dismissal process
First verbal warning
First written warning
Final written warning
Dismissal
Grievance
Exists when an employee has a concern, complaint, or problem.
Employment tribunal
A special sort of court dealing only with employment law; for example an employee’s claim for unfair dismissal.
Do all cases go to an employment tribunal?
Some people think they will find court too stressful
There is a lot of paperwork to do
They could get a negotiating settlement instead
Some people may struggle to find witnesses or evidence
How would you describe the process of employment tribunal in terms of time and cost for both the claimant (employee) and the business (employer)?
It is free to start a case, but both the employee and the employer will have legal fees
A tribunal can take 18 months
Why might a claimant (employee) choose to take a case to tribunal?
To feel like they have got justice in he situation and can gain closure
You can get compensation if you win the case
What is the purpose of employee tribunals?
To resolve disputes that can’t be settled out of court
To clear businesses of wrongdoing or compensate employees for wrongdoing that has occurred
Impacts to a business of employee tribunals
Time to prepare
HR staff costs
Legal costs
Compensation costs (if applicable)
Possible reputation damage
Possible changes to practices
Employee / employer relations
The relationship between workers and managers
Benefits of positive employee / employer relations
Better communication leads to efficiency in production
Low absenteeism as workers want to come to work
High staff retention
Negative impacts of poor employee / employer relations
Difficulty dealing with change
More difficult for worker to come to managers about grievances
Damaging reputation of the business due to tribunal cases (sometimes)
What is a ‘written statement of employment particulars’?
An employer has to provide a ‘written statement of employment particulars’ to an employee by law.
This document contains a summary of the main terms of employment, such as pay and working hours
Examples of things included in a ‘written statement of employment particulars’
Description of work
Name of the employee / employer
Date employment started
Previous employment
Notice of contract termination
Holiday entitlement
Hours of work
Place of work
Pay
Why do contracts of employment reduce disputes?
Both the employee and the employer are aware of the terms of employment as they have both signed it to agree them.
This can be proof in any disagreements.
Why can leaving terms unchanged on a contract of employment be beneficial for the employer / employee relations
Workers feel secure in their job and do not feel forced into changing their contract.
It helps avoid problems or disruptions amongst staff.
The Equality Act 2010
The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society.
It is illegal in the UK to discriminate on the basis of any of the following;
Sex
Gender reassignment
Pregnancy and maternity
Marital / civil partnership
Disability
Race / ethnicity
Age
Sexual orientation
Religion / belief
Employee participation
Employees have the ability to participate in the decision making process at work.
It is also known as ‘industrial democracy’
Benefits of employee participation
Increased levels of motivation
Better communication
Improved quality of decision making
Complying with the law
Reduced labour turnover
Fewer days lost through work-related injuries and illnesses
The ability to manage change more effectively
Works council
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.
Which type of business has to have a work council by law?
Any company with 1,000 or more employees, including at least 150 employees in two or more EU member states.
Trade union
An organised association of workers often in a particular industry.
What is the role of a trade union?
To represent union members with the problems they may face at work
To provide support and advice to union members
Collective bargaining
The official process by which trade unions negotiate with employers, on behalf of their members.
Ways that trade union membership might benefit workers
Free legal service
Support and assistance
Safe working conditions
Negotiate better pay
Benefits of trade unionism to an employer
Negotiating with trade unions (ideally a single union) saves time and costs rather than dealing with all employees individually
Employee morale and motivation may be improved if they know that their interests are being protected by a union
The trade union can be a supportive partner in helping a business undergo significant change
Disadvantages to businesses with employees as union members
Change may take longer to implement
Wage costs may rise if pay rises are successfully negotiated
Competitiveness may decrease if prices have to rise as a result of improving terms and conditions of employment
Industrial action
The 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.
Examples of industrial action
Strikes
Work to rule
Overtime ban
Go slow
Strike
Where employees refuse to work the employer
Work to rule
Employees do exactly what is stated in their contract and no more; there is no ‘goodwill’ towards the employer
Overtime ban
Where employees refuse to work overtime
Go slow
Where employees perform their duties but aim to reduce the productivity and efficiency of them.
Workforce planning
About deciding how many and what types of workers are required
Factors to consider when deciding on the type of worker
Age (ideally should be a balance)
Skills
Experience
Qualifications
Reasons to employ younger workers
Bring new ideas
Will want to strive to reach the top roles (more ambitious)
Have just come from school/university
Reasons to employ older workers
More experience
Life skills
Can be a role model to younger workers
Factors to consider when creating / amending a workforce plan
Financial / budget constraints
Business objectives
Technology
Changing needs of the business
Overall increased / decreased sales
Labour turnover (including retirement)
Age of the workforce
Change in methods of production
Unforeseen circumstances (ie natural disasters)
The state of the economy
Changes in legislation
Uses of workforce planning
To aid recruitment
To consider training courses / development programmes
Succession planning (ie promotions)
When banning overtime
1-2-1 mentoring
Why is it important to get the right number and the right type of workers?
Meet customer needs
Achieve business aims and objectives
Be financially efficient
Avoid high levels of staff turnover
To support progression planning (ie when older workers retire)
The three types of training
Induction training
On-the-job training
Off-the-job training
Induction training
Training aimed at introducing new employees to a business and its procedures
Induction training checklist
How to get around the building
Meet and greet (managers and colleagues)
How to answer the phone
Location of fire exits
Issuing of badge
Disciplinary procedures
What is the purpose of induction training?
To reduce employee anxiety
Allow employees to become productive more quickly
On-the-job training
Employees receive training whilst remaining in the workplace.
It can involve demonstration and coaching.
Advantages of on-the-job training
Generally more cost-effective
Employees are actually productive
Opportunity to learn whilst doing
Training alongside real colleagues
Disadvantages
Quality depends on ability of trainer and time available
Bad habits might be passed on
Learning environment may not be conducive
Potential disruption to production
Off-the-job training
Occurs when employees are taken away from their place of work to be trained
Advantages of off-the-job training
A wider range of skills or qualifications can be obtained
Can learn from outside specialists or experts
Employees can be more confident when starting a job
Disadvantages of off-the-job training
More expensive (eg transport and accommodation)
Lost working time and potential output from employee
New employees may still need some induction training
Employees now have new skills / qualifications and may leave for better jobs
Academic training
Generally involves theoretical knowledge and skills.
Eg - businesses may pay for employees to undertake an open university qualification
Vocational training
Teaches hands-on, applied skills such as carpentry and hairdressing.
Eg - businesses may pay for employees to undertake additional courses at beauty school
Benefits to employees of gaining academic or vocational qualifications
Makes their job more interesting and varied because they do more tasks
Can gain more bargaining power to negotiate pay rises
Could leave to get a better job
More promotion opportunities
The qualification is funded by the business
Advantages of apprenticeships for the business
Cheaper than employing a fully qualified worker
They may get subsidies from the government to fund them
May be higher employee retention if the apprentice fits in well with the business
Disadvantages of apprenticeships for the business
More mistakes
Cost of having the apprentice and waiting for them to become qualified
Some apprentices may drop out
Apprenticeship
This is a long term development programme for workers to learn job skills while they work through a mixture of on-the-job training and study.
Apprenticeships lead to some kind of qualification.
Advantages of apprenticeships for the apprentice
Apprentices can earn an income whilst learning
The learning involved is often both practical and theoretical, and many people will like the variation of activities that this will involve.
Disadvantages of apprenticeships for the apprentice
The pay is quite low whilst an apprentice is learning
The qualifications can be quite specific, which can limit job opportunities
In the long term, the evidence shows that those with a degree can earn more on average than workers who followed apprenticeships
Training needs analysis (TNA)
TNA is the process of identifying the gap between current knowledge/skills and required knowledge/skills so that a training plan can be created to help staff do their job effectively
What are the factors that need to be taken into account in a TNA
The training priorities
Whether the training will be delivered on-the-job or off-the-job
Which training provider will be used
How many people need training
How much the training will cost
Why is TNA important?
It highlights issues so that they can be resolved
It prioritises training needs
It prevents the inefficiencies caused by untrained/poorly trained staff
It avoids staff mistakes
It improves the experience of the customer
It ensures that employees receive training which enables them to do their jobs
It helps to retain staff
Zero hours contract
A contract between an employer and a worker where:
-the employer is not obliged to provide any minimum working hours
-the worker is not obliged to accept any work offered
Benefits of zero hours contracts
It creates leaner, more profitable businesses as there is not obligation to offer hours
It increases the number of jobs available
Flexibility suits some workers (ie students)
It helps to react to fluctuations in demand
Disadvantages of zero hours contracts
It creates exploitation of workers - denied some employment rights and may be worried about complaining due to fear of losing hours
Keeps wages low due to lack of upward pay pressure/lack of bargaining power
Business reputation may be harmed
Creates anxiety for some workers (ie they do not know if they can pay their bills from month to month and will be unable to obtain mortgagees)
