Human resources

Question 1

HR objectives

Answer 1

Employee engagement and involvement
Talent development
Alignment of Values
Training
Diversity
Workforce Planning

Question 2

Value of setting HR objectives for each objective

Answer 2

Employee engagement and involvement - employees are fully engaged and involved in business, more likely to be motivated leading to higher productivity and quality of output.
Talent development- relates to the development and guidance of future stars of a business so they can contribute to success and growth. Involves not just developing their talents but also retention of employees
Training - in order to improve performance.

Question 3

Continued on the objectives

Answer 3

Diversity - encompasses acceptance and respect in terms of gender, age , religion, etc. it means understanding that each individual is unique and recognizing individual diff
Alignment of values - means bringing together employee and business value
Number, skill, and location of employees - involves workforce planning in order to ensure a business always has the right employee in the right numbers in the right place with the correct skill.

Question 4

External influences

Answer 4

Economy - if the economy is growing, may be a greater requirement for human resources. Linked to this is the aspect of demographics and availability of labor with skills required
Political factors - UK govt passed a variety of measures that affect hr planning eg: equality measures and minimum wage

Question 5

Continued on External factors

Answer 5

Technology- intro of tech into manufacturing resulted in not only a reduced requirement for labour but also a need for new skills decline of manufacturing and the development of the service sector in terms of employment illustrates changing nature of work.
Competitive Environment - Changes in market and competitor actions likely to affect demand for product or service will then impact on a business HR requirement.

Question 6

Internal influences

Answer 6

Corporate objectives - HR objectives must be aligned with corporate objectives. if there is an overall growth objective, hr needs to prepare for this by ensuring the availability of sufficiently skilled workers.
Type of product/ service- make sure skills of workforce are appropriate for that particular product as well as image of business
Style of management - hard or soft approach to hr management is likely to influence decision-making

Question 7

Hard HR approach

Answer 7

Employees are no diff from any other resources used by business
pay is kept to minimum, no empowerment, top-down communication, short-term in recruiting and training employees
Pros - employees should be easily replaceable and managers retain control for decision making and reduce risk of major errors being made
Cons - failure to build on employee skills leads to dissatisfaction and low morale.

Question 8

Soft HR approach

Answer 8

Employees are the most valuable resources available to businesses and a competitive weapon
employees empowered and encouraged to make decisions, encouraged to extend skills, long long-term developed employees through ongoing training programs
Pros: keep and develop skilled employees leading to business being more creative and innovative, encouraged to contribute making the organisation more flexible and adaptable to changing market conditions
Cons: time taken and consultation rather than getting job done

Question 9

Labour turnover and labour retention

Answer 9

The number leaving during the year / average no of staff *100
Labour retention = staff not leaving in past yr /overall workforce num *100

Question 10

Factors causing labour turnover

Answer 10

poor recruitment and selection procedure
ineffective motivation/ leadership
wage levels that r lower than those being earned by similar workers in other local firms
more local vacancies arising

Question 11

Negative effects of high labour turnover

Answer 11

cost of recruitment, cost of training replacements, time taken for recruits to settle in business, and loss of productivity while new workers learn new ways of working.

Question 12

Positive effects of high labor turnover

Answer 12

new workers bring ideas into the firm and solve problems with a diff perspective
workers with specific skills can be employed

Question 13

Labour cost per unit

Answer 13

Labor cost/output
unit labour cost will fall as each employee produces more.

Question 14

Job design

Answer 14

Process of deciding on content of job in terms of its duties and responsibilities , on methods used to carry out the job and relationship that should exist between job holder and superior

Question 15

methods of job design

Answer 15

Job rotation - switching employees between task of similar degree of complexity.provides variety and relieves the monotony of doing one task
Job enlargement- extends employees range of duties .included more tasks of a similar nature. horizontal loading and can help lessen monotony and repetition on production lines
Job enrichment - job designed in a way to include more challenging tasks. attempts to give employees greater responsibility by increasing the range and complexity of task
Empowerment - giving employees control over their working lives and achieved by organizing employees into teams, setting them targets, and allowing them to plan their work, make their own decisions and solve their own problems.

Question 16

Factors Affecting Job Design

Answer 16

organizational factors -Task Characteristics, process or flow of work in organization,work practices
Environmental factors -Employee availability , social and cultural expectations
Behavioral factors-Feedback, Autonomy, Variety

Question 17

Factors

Answer 17

Organisational -nature of work and culture of the business will determine the extent to which a business is able and willing to design jobs in such way that enrichment and empowerment exists
Environmental factors - that influence job design include the availability of employees and abilities as well as social and cultural expectations.
Behavioral factors- the extent to which a job or task offers autonomy, diversity and use of skills will determine level of enrichment and empowerment possible and impact on job design.

Question 18

organisational design

Answer 18

process of shaping structure so that the organization can achieve its objectives effectively.

Question 19

Hierarchy,Chain of command, Authority

Answer 19

Hierarchy is the way
different levels of
authority are ranked in an
organisational structure.
Chain of command is the
order in which authority and
power in an organisation
are exercised and delegated
from top management
down.
Authority is the power or
right to give orders or make
decisions.

Question 20

Span of control and what factors it depends on

Answer 20

The span of control is the
number of subordinates
who can be controlled
effectively by one manager.
factors: ✚ the ability of the manager
✚ the type of work
✚ the skills of the employees

Question 21

Pros of wide and flatter span of control

Answer 21

Flatter structures with wider spans have become more predominant
as this gives greater scope for worker empowerment, and therefore greater
engagement, lower down the hierarchy. They also result in cost savings
through having fewer middle management positions.

Question 22

Delegation

Answer 22

Passing of Authority to subordinates within the organization.it is the power to undertake a task that is delegated manager must choose delegates carefully have the skills and ability to perform the task and there has to be complete trust in the delegate. Successful delegation releives managers of routine decisions and concentrates them on more important decisions.

Question 23

Centralisation and decentralisation

Answer 23

centralized structure is where authority and decision-making lies with management at the top with little input from the lower down.Decentralized is where those lower down the hierarchy play a greater part in decision-making process

Question 24

Influences on level of centralisation or decentralisation

Answer 24

Decentralisation will involve a greater degree of delegation
✚ Uniformity of decisions. Where decisions are uniform, there is little room
for delegation and decentralisation. As a result, individual outlet managers
in a business such as Pizza Hut have little or no input into decision
making.
✚ Management style. An autocratic style is more likely to lead to a
centralised organisation, whereas a more democratic or laissez-faire style
gives greater scope for decentralisation.
✚ Skills and ability of workforce. A decentralised approach is only possible
where the workforce has the necessary skills to make decisions. A
business employing mainly professional skilled people is more likely to
delegate and adopt a decentralised approach than one employing mainly
unskilled workers.
✚ Economic influences. Changing economic circumstances can lead to
different approaches. In difficult times a more centralised approach may
be adopted, whereas if the economy is growing strongly there may be
greater freedom for delegation and decentralisation.
✚ Technology. Developments in technology have resulted in a great deal of
information being readily available to a business. This may provide greater
scope for delegation and decentralisation, e.g. to individual branch or store
managers.

Question 25

Value of changing job and organisational design

Answer 25

✚ If jobs are made more interesting, employees are likely to become more
engaged and motivated, resulting in higher productivity, higher quality
and less wastage, all of which may lead to a competitive advantage and the
potential for higher revenue and profit.
✚ Changing organisational design may lead to lower costs, particularly if it
involves creating a flatter structure with fewer managerial levels.

Question 26

Human resource planning and HR flow

Answer 26

Human resource planning is the process that identifies the current and future human resource needs of an organisation in order to achieve its objectives.
Human resource flow is the movement of employees through an organisation, including recruitment, promotion and employment termination.

Question 27

Process of recruitment and selection

Answer 27

Determine num and type of employees needed
cosntcut job decsription/person specification
advertise externally- new ideas from external candidates /advertise internally - could be cheaper
receive applications
draw up shortlist matching application against person specification
select candidates for interview

Question 28

Training

Answer 28

provision of job related skills and knowledge. All employees receive some training when first start a job “induction training “. familiarise employee with business procedures. on job training taken from experienced workers thru mentoring or off job at a college or some training agency.

Question 29

Appraisal and Promo

Answer 29

Performance appraisal - manager examines an employees work by comparing it to set standards , documenting and provide feedback to employees to show where improvement needs to be made. used to determine training needs and likely candidates for promo.

Question 30

Redundancy , Redemployment and termination

Answer 30

when job no longer exists due to introduction to tech , moving location then employees are redundant. takes place on voluntary basis , organisation consult with employees as well as worker representative . could be entitled to redundancy pay.
Redemployment - moving existing employees to a diff job or location
Employees may be dismissed in these scenarios :
✚ Gross misconduct, such as violence towards a customer or colleague, or
theft.
✚ Persistent minor misconduct, such as regularly arriving late for work, but
only after set procedures have been adhered to in terms of verbal and
written warnings.
✚ A substantial reason, such as not agreeing to new reasonable terms of
employment

Question 31

Benefits of motivated and Engaged Employees

Answer 31

✚ Productivity. A fully engaged and motivated workforce is not only likely to
work harder, so producing more, but will probably put in the extra work to
make sure deadlines are met and so on.
✚ Recruitment and retention. An organisation that has a fully engaged
workforce is more likely to be seen as the employer of choice and is more
likely to be able to retain its workers.
✚ Absenteeism. This is likely to be lower.
✚ Innovation. There is a close link between innovation and engagement.
✚ Profitability. This is likely to be higher.

Question 32

Motivation

Answer 32

range of factors influence people to behave in certain ways
✚ Some believe it is the will to work due to enjoyment of the work itself. This
suggests that motivation comes from within an employee.
✚ An alternative view is that it is the will or desire to achieve a given target
or goal due to some external stimulus.

Question 33

Taylors beleifs

Answer 33

✚ He believed that people were solely motivated by money.
✚ He argued that efficiency would improve productivity, competitiveness
and profits. This required employees to be organised, closely supervised
and paid according to how much they produced.
✚ In his view, workers should have no control over their work.
✚ The social aspect of employment was considered irrelevant and ignored.

Question 34

Mayo concluded that motivation depends on

Answer 34

✚ the type of job being carried out and the type of supervision given to the
employee
✚ group relationships, group morale and individuals’ sense of worth
Mayo’s work took forward the debate on management in general and
motivation in particular. He moved the focus to the needs of employees,
rather than just the needs of the organisation.

Question 35

Maslows hierachy of needs

Answer 35

Physical needs - Pay levels and working conditions - eg: food
shelter and warmth

Safety needs - Job security , clear job role , e.g. security, a
safe structured environment,
stability, freedom from anxiety

Social need - Team working , communications and social facilities , e.g. belonging,
friendship, contact]

Esteem needs - status , recognition for achievement , power , e.g. strength,
self-respect, confidence,
status and recognition

Self-actualisation - scope to build new skills and meet new challenges , develop ones full potential, e.g.
self-fulfilment; ‘to become
everything that one is capable
of becoming,’ wrote Maslow
Pay levels and working
conditions
Job security, a clear job role/
description, clear lines of
accountability (only one boss)
Team working,
communications, social
facilities
Status, recognition for
achievement, power, trust
Scope to develop new skills
and meet new challenges, and
to develop one’s full potential

Question 36

Criticism of Maslows

Answer 36

Some writers doubt the existence of a hierarchy of needs. They argue that
social needs and esteem needs may coexist and that people do not move
smoothly up a hierarchy, as Maslow’s model suggests. However, his work
brings psychology into motivational theory and highlights the range of
individual needs that may be met through employment.

Question 37

Herzbergs two factor theory

Answer 37

✚ Motivators. These are positive factors that give people job satisfaction (e.g.
receiving recognition for effort) and therefore increase productivity as
motivation rises.
✚ Hygiene (or maintenance) factors. These are factors that may cause
dissatisfaction among employees. Herzberg argued that motivators should
be built into the hygiene factors. Improving hygiene factors will not
positively motivate but will reduce employee dissatisfaction. Examples of
hygiene factors are pay, fair treatment and reasonable working conditions.

Question 38

Use of financial methods of motivation

Answer 38

Wages and salaries - paid weekly at hrly rate and salaries at an annual rate
Piece rate pay - gives payment for each item produced , encourages effort at expense of quality.
Commision - payment made to employees based on value of sales achieved . form all or part of salary package.
Profit related pay: gives employees share of profit earned .encourages employees to work hard to generate max profit for business
performance related pay
Share ownership - employees offered shares in the company they work .

Question 39

Non financial methods of motivation

Answer 39

✚ Meaningful work, providing jobs that are both interesting and challenging.
✚ Involvement with the decision-making process.
✚ Responsibility and recognition for the job.
For this to be achieved it is necessary for the following to be in place:
✚ The leadership and management style is more likely to be soft and
democratic.
✚ Opportunity needs to be provided for involvement and responsibility.
✚ The culture of the business needs to be one of involvement and
communication.

Question 40

Influence choice of financial and non-financial reward systems

Answer 40

✚ Finance. In some ways this relates to the success of an organisation, as
a business must operate within its means. It will also want to keep a
careful check on both unit labour costs and labour costs as a percentage of
turnover.
✚ Nature of the work. It is not just the type of work that will have an
influence but also the skills of the workforce involved. Reward and
conditions of work need to be appropriate to attract and retain employees.
If a business gets this right, it may well be able to establish a reputation as
a good employer to work for.
✚ Culture. The culture of the business and the management style adopted
will have an influence — a hard approach may favour financial incentives,
whereas a soft approach may favour non-financial ones.
✚ External factors. These might include the economic cycle, e.g. it may be
difficult to have performance-related pay systems in times of economic
recession.

Question 41

Trade unions

Answer 41

organised group of employees that aim to protect and enhance the economic position of its members.
Benefits:
✚ They negotiate on pay and conditions of work.
✚ They discuss major changes in the workplace, such as redundancy, and
help protect job security.
✚ They provide a range of services including financial and legal advice.
Collective bargaining - trade union negotiates with employer on behalf of its members on matters such as pay and working conditions. less time consuming and easier for emplyer.

Question 42

Work councils

Answer 42

bodies composed of employee and employer representatives who negotiate with management about working conditions .provide better communication and increased involvement of employees .

Question 43

ACAS

Answer 43

Advice - offers advice to employers, trade unions and employee association on topics such as payment .
Concillation - encourages continuation of negotiation rather than industrial action
Arrbitration - act to resolve a dispute by making recommendations that may be either binding or non - binding .

Question 44

Value of good employer - employee relations

Answer 44

✚ Productivity. Where relations are good, employees are more likely to be
committed and motivated, leading to higher productivity, less wastage and
better quality.
✚ Employee loyalty. Labour turnover rates are likely to be lower and
retention rates higher.
✚ Decision making. Decisions are likely to be taken faster, and the
introduction of change is likely to be easier.