Human Resources Flashcards
What is Human Resource Management?
How people (employees) are managed by a business in order to meet strategic objectives
What is an organisational chart?
A diagram that shows the hierarchy in a business. Usually from top to bottom in terms or seniority
What is the purpose of an organisational chart?
- Shows responsibility and authority
- Shows communication lines
- Shows progression and promotion opportunities
What is meant by span of control?
The number of employees (subordinates) who a manager is responsible for
What is an advantage of narrow span of control?
Managers can focus on staff more, giving clear/direct instructions and feedback
What is a disadvantage of narrow span of control?
Staff may feel ‘watched over’
What is an advantage of a wide span control?
Independence may be motivating for staff
What is a disadvantage of a wide span of control?
- Staff may perform badly as manager loses control
- Communication issues
What will the significance of span of control depend upon?
- Personality of the manager
- Skills of the subordinates
- Size of the business
- Industry the business is operating in
What is chain of command?
The way in which responsibility for employees is organised within a business. Shows who is responsible/accountable to who
What would it mean for a long chain of command?
Several layers of responsibility
What would it mean for a short chain of command?
Less layers of responsibility
What are line relationships?
The VERTICAL relationships in the organisational hierarchy between managers and subordinates
What are staff relationships?
The HORIZONTAL relationships in the organisational hierarchy
What is meant by delayering?
A process of reducing the number of levels or layers in an organisational structure
What is the main reason for delayering?
Cost cutting
What are the benefits of delayering?
- Faster and more accurate communication
- More employee responsibility with flatter structure
- Reduced costs
What are the costs of delayering?
- Redundancy payments
- Differences in span of control, changes in the amount of delegation
- Decreased morale and job retention due to loss of staff friendships and fear etc
What will happen to span of control when a business delayers?
Span of control will increase with delayering which means the business might have to invest time and training to help employees adopt to the increased independence
What will a wider span of control increase the need for?
- Delegation
2. Empowerment
What is meant by delegation?
The assignment to others of the authority for particular functions, tasks and decisions
What is empowerment?
Giving employees power within their job. For example, giving them the authority to make decisions, plan their own work and problem solve
What is a centralised structure?
Keeping decision making firmly at the top of the hierarchy
What businesses are examples of having a centralised structure?
Fast food businesses. The board/franchise make a decision and the subordinates/franchisees implement this decision
What are the advantages of centralised structures?
- Easier to implement common policies/practices
- Quicker decision making generally
- Easier to co ordinate and control
What are the disadvantages of centralised structures?
- Lead to taller hierachy
- Junior managers are closer to customer needs
- Lack of authority from junior managers reducing motivation
- Customer service issues: lost flexibility and speed of junior decision making
What is a decentralised structure?
Decision making is more spread out to include more junior managers in the hierarchy
What is an example of a business with a decentralised structure?
Hotel chains. Hotel managers and staff are empowered to make on-the-spot decisions to handle customer problems and complaints
What are the advantages of decentralised structures?
- Decisions can be made closer to the customer
- Better able to respond to local circumstances
- Improved customer service
- Enable a flatter hierarchy (cuts costs)
- Facilitates empowerment and motivation
What are the disadvantages of decentralised structures?
- Harder to ensure common practices
- May be diseconomies of scale (duplication of roles)
- No one to implement strong leadership and control when needed
What is the difference between a tall and flat structure?
A tall structure is characterised by having many layers whereas a flat structure has few
What is communication like in tall and flat structures?
Communication will be quicker and more accurate in flatter structures. It will be more formal and bureaucratic in taller structures
What are spans of control like in tall and flat structures?
Flat structures are associated with wide spans of control therefore there is more delegation and responsibility for employees. Tall structures have narrow spans of control so there is more direct supervision
Why might business want a tall structure?
- Clear communication lines and delegation
- Shows strong leadership and provides the guidance needed
- Employees may be more motivated by the promotional opportunities
Why might business want a flat structure?
- More empowering, more independence and responsibility
- More trusting, increased teamwork
- Messages are less likely to get lost
- More cost effective
What is organisation by function?
The business is arranged and organised into departments/specialist areas. Each area has a specific input that contributes to the output of the business’ goods and services
What is organisation by product?
The business is arranged and organised according to the different products made. Each product becomes a ‘mini company’ with its own finance, marketing and HR departments
What is division organisation?
Organising and arranging the business by geographical location
What are the strengths of organisation by product/division?
- Teams can see the direct results of their work which is more motivating
- Each centre has a lot of autonomy (independence)
What are the weaknesses of organisation by product/division?
- Duplication of roles/departments which increases costs
- Different products compete for resources (finance) which could cause conflict
What are the strengths of organisation by function/system?
- Reduces duplication of roles
- Increased specialisation
What are the weaknesses of organisation by function/system?
- Decreased speed of communication
- Difficult to accredit succes or blame
- Conflict over goals/budget
What is a matrix structure?
Individuals work across teams/projects as well ass within their own dept./function. Each team member can find themselves with 2 managers. These teams can be temporary or permanent depending on the tasks they are asked to complete
What are the advantages of matrix structures?
- Help break down departmental barriers, improving communication across the organisation
- Likely to result in greater motivation amongst team members
- Resources can be shared across departments which can make projects more cost effective
What are the disadvantages of matrix structures?
- Divided loyalties, more pressure on employees
- Team members may neglect functional responsibilities
- Takes time to adapt to this kind of structure
What is an appraisal?
A formal assessment of an employees performance
What are the sections of an appraisal?
- Strengths
- Development areas
- Performance areas
- Training needs
- Promotion opportunities
- Pay progression
What is the nature of an appraisal?
The opening of an appraisal meeting is important. The mood needs to be light and the appraisee needs to be encouraged towards candour rather than gamesmanship
What is the purpose of an appraisal?
- To motivate staff
- To give staff a focus
- To make staff feel valued
- To set the standard/expectation
- To record/collect evidence for any issue
What is a managerial appraisal?
A method of appraisal where a manager examines and evaluates an employees performance
What are the advantages of a managerial appraisal?
- Employees receives expert input from manager
- Makes subsequent actions such as deciding about promotion/pays, rewards and disciplinaries seem fairer
What are the disadvantages of a managerial appraisal?
- Manager may not work closely with employees to know their strengths and areas for development
- Input is limited to one viewpoint of employee’s performance
What is self assessment appraisal?
Employees assess their own performance, often using a tick sheet to grades aspects of their work. This can be used as a stand alone method or in advance of a managerial appraisal
Identify 3 ways that appraisals can be ineffective
- Lack of commitment from senior staff
- Inadequate time allocated for the appraisal process
- The use of ambiguous language
Identify 3 ways that appraisals can be made more effective
- Ensure all managers are committed and have sufficient resources available
- Ensuring employees understand the system and how it will affect and benefit them
- Ensuring that line managers are adequately trained in the skills necessary to perform an effective appraisal
What is labour turnover?
Measuring the number of employees who have left the business, calculated as an annual percentage
How is labour turnover calculated?
Labour Turnover = No of employees left during the year/Average no employed during the year .. x100
What does it mean for a high labour turnover percentage?
The more likely it is that motivation for employees is low
What is absenteeism?
Employees are absent from work with minor medical ailments such as a headache. Absenteeism can be a key indicator of low morale and motivation
How is absenteeism calculated?
Total available days in the working month
What is meant by a long term absence?
Where an employee is off work for a lengthy period, usually due to illness or injury where it would unsafe/unhealthy in the working environment
What are the benefits of a self assessment appraisal?
- Less intimidating
- Quicker
- Better for larger firms where managers don’t work closely with employees
- Closer to your own strengths/weaknesses than anyone else
What are the drawbacks of self assessment appraisal?
- Might under/over rate performance
- Not an expert opinion
- No tangible way to answer questions
What is 360 degree appraisal?
An employee receives feedback. from several people in the organisation. This is most common in larger firms where people are part of multiple teams
What is peer assessment?
Appraisals are carried out colleagues
What is a benefit of 360 degree appraisal?
Broader picture of performance
What is a drawback of 360 degree appraisal?
Conflicting targets or too many targets
What is a benefit of peer assessment?
Know employees well, good idea of performance
What is a drawback of peer assessment?
Personal relationships may affect appraisal
What is meant by short term absence?
Where an employee is absent from work for a day or two due to a minor ailment such as a headache. This is often referred to as absenteeism and can be used as an indicator of the level of morale and motivation
What is the difference between unauthorised and authorised absences?
Unauthorised absences refer to the minor reasons people have short term absence whereas authorised is having time off for a legitimate and approved reasons
How can you calculate lateness?
Total number of scheduled of attendances
What does persistent lateness show?
Persistent lateness shows a disregard for the rules of the workplace, and a lack of motivation
What is meant by productivity?
A measure of output per employee over a particular time period. It is a key indicator of employee performance
How is productivity calculated?
Output / Av no. of employees
Why is it harder to measure productivity in the tertiary sector?
Because there is no physical output or product that is made
What is meant by selection?
The process of deciding which applicant for a job a business should accept
What is a CV?
Cirrculum Vitae.. it is a document that the applicant designs including information about personal details, educational history, previous employment history, suitability and reasons for applying for the job & referees
What is an application form?
- Designed by the employer
- Questions are tailored to the employers exact needs and ask specific questions
When analyzing applicants, what 3 categories will businesses split applicants into?
- Those to reject (don’t meet the job requirements)
- Those to place on a short list (top 10 candidates)
- Those to place on a long list (back up from short list)
What are advantages of applicant forms?
- Guarantees consistency and allows you to get the answers you want, obtaining more specific information that is included in a CV
- More serious candidates rather than submitting a generic CV
- More easily comparable
What are the disadvantages of applicant forms?
- Time consuming and challenging to design
- Lengthy application processes may deter potential candidates
What are the advantages of a CV?
- Less structured, inject personality into the document
- Gives detail about the candidate and their work experience
- Highlights whether a person matches the skill and person specification described by a business
What are the disadvantages of a CV?
- Harder to judge and compare objectively
- May not cover specific information
- Time consuming to read each CV in detail
- Candidates may have help writing their CV and it may not be truly representative of the individual
What is a letter of application?
A letter of application, also known as cover letter, is a document sent with a CV or application form to provide additional information
What is meant by recruitment?
The process of bringing new employees into the business
Identify 5 reasons that a vacancy might arise in a business
- The business is growing
- An employee leaves/retires
- An employee is promoted
- The business introduces new technology and so requires new skills/staff
What is a job description?
Document that describes the duties of a worker. For example, write letters and answer the telephone
What is a person specification?
A profile of the type of person needed for a job. This includes their skills, experience and qualifications. For example, friendly persona and English language Grade B
What is internal recruitment?
When the business looks to fill the vacancy from within its existing workforce
What is external recruitment?
When the business looks to fill the vacancy from any suitable applicant outside of the business and its existing workforce
What are the advantages of internal recruitment?
- Cheaper and quicker
- People already familiar with the business and how it operates
- Motivational for staff, provides promotional opportunities
- Business already knows the strengths and weaknesses of candidates
What are the disadvantages of internal recruitment?
- Limits the number of potential applicants
- No new ideas can be introduced
- May cause resentment amongst candidates not appointed
- Creates another vacancy that needs to be filled from promotion
What are the advantages of external recruitment?
- Outside people bring in new ideas
- Larger pool of workers from which businesses can find the best candidate
- People have a wider range of skills and experience
What are the disadvantages of external recruitment?
- Longer, more expensive process
- Advertising and interviews required, increases costs
- Selection process may not be effective enough to reveal the best candidate
What is the nature and purpose of a job description?
States the duties of the worker and their job requirements to let the applicant know what the role entails
What is the nature and purpose of a job advertisement?
Marketing the role containing enough information to attract suitable applicants and deter unsuitable ones
What is psychometric testing?
They assess capabilities and intelligence, aptitude/skills for the job and whether your personality fits in with the vision of the organisation
Why might business choose to use testing as part of the selection process?
- Showcases responses in real situations
- Shows if candidates skills and personality match the job and fit with the organisation
- Responses are less likely to be impacted by nerves, it is less pressure for the candidate
What are some limitations of testing as a means for selection?
- Candidates may give the answer they think is desired rather than how they would actually respond
What are the 3 types of testing businesses might use for selection?
- Psychometric
- Scenario
- Written
Why is it important to carry out a training needs analysis?
- Helps to identify areas that need improving
- Improves skills of staff which benefits business
- Helps a business to achieve their aims
- Prioritises training, could help to reduce costs
- Employees receive useful training
What is meant by a training needs analysis? (TNA)
TNA is a process that a business goes through in order to determine all the training requirements to allow employees to progress and grow to the best of their ability
What are the 4 main leadership styles?
- Autocratic
- Paternalistic
- Democratic
- Laissez-faire
What does autocratic leadership entail?
- Full control of decision making
- Use of power to get others to complete tasks
- Employees have little or no input
- Motivation through rewards
What are 2 benefits of having an autocratic leadership style?
- Useful for low skilled employees
- Faster decision making and communication
What are 2 limitations of having an autocratic leadership style?
- May demotivate the employee
- Increases work burden and pressure for manager which may impact performance
What does paternalistic leadership entail?
- Softer form of authoritarian leadership, leader decides what is best for employees and addresses their needs
- Relationships are built and the leader will explain why decisions are made
- Little delegation
What does democratic leadership entail?
- 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
- Strong emphasis on delegation and consultation, although the leader still has the final say
What are 2 benefits of having a democratic leadership style?
- Useful if staff are doing different jobs than the manager and need to give feedback
- Keeps morale high due to feeling valued
What are 2 limitations of having a democratic leadership style?
- More time consuming
- Not helpful for new employees who may need strict direction
What does laissez-faire leadership entail?
- Gives employees little direction
- Responsibility lies within the team
- Leaders get employees to choose how to complete objectives, make decisions and resolve problems on their own
- Increased freedom and independence