Mock December Flashcards
Hard hrm
Focuses on maximum productivity and efficiency in production
- delegate tasks and prioritise tasks getting done
Advantages of hard hrm is
Cost effectiveness and efficiency
Disadvantages of hard hrm
Low employe morale and turnover as well as less staff engagement
Soft hrm
Strategic approach that focuses on grating employees as valuable assets and prioritising their needs and well being
Soft hrm adv
Employee satisfaction
Employee retention- more likely to stay as feel valued
Reducing turnover
Productivity
Word of mouth marketing
Soft hrm disadv
Cost
Accountability- for poor performance if focus is on how treated
Lack of focus on corporate goals
Capacity utilization
Actual output/potential output ×100
Advantages of capacity utilisation
Improves efficiency
Increases competitiveness
Better resource allocation
Improved forecasting
Disadvantages of capacity utilization
Lack of flexibility
Quality issues
Staff issues
Machine issues
Black of time for maintenance
Investment appraisal
Trying to minimise the risk and to help inform decision making
Gearing
Investment that is related with loans
Sensitivity anaylsis
Process of systematically changing variables. To calculate a range of possible outcomes
Examples of sensitivity anaylsis
Discount factors
Expected inflows and cash outflow
Number of years of profit
Core competencee
Combination of skills, knowledge and abilities thay distinguish a person or business from its competitors
Core competences
Combination of skills, knowledge and abilities that distinguish a persin/business from its competitors
Example of strategic decision making
Swot anaylsis
What us swot anaylsis influenced by
Corporate objectives
Core competence
Competitive environment
Leaders attituded to risk
Igor Ansoff matrix
A strategic planning tool that provides a framework ti help executives, senior manager and marketers devise strategies for future business growth
The four strategies of ansoff matrix
Market penetrative
Product development
Market development
Diversification
Market penetration
The successful selling of a product or service in a specific market
Potential approaches for market penetration
Gain share from competitors
Encourage customers to buy/ consume more
Changes to marketing mix
Extension strategies e.g dicsounts
Market development potential approaches
Attract new customers by existing products
Possible approaches
Enter a new international market
Change promotional tactics
New distribution channels
Market penetration potential dangers
Competitors reactions
Relatively short term only
Market may already be saturated
Potential dangers marker development
Product may not be accepted, desired or understood in a new marker
Business may not understand new market
Alienation of current customers
Product development
Selling new and better products to existing customers
Possible approaches product development
Launch substantially improved version of existing products
Introduce complementary products
New product innovations
Potential dangers product development
Risk of cannibalistic
May shorten product life cycle of existing products
Damage to brand
Diversification
Selling mew products to new markets
High risk but also greatest potential for reward
Possible approaches diversification
Research and development into new products and marker research into new markets
Acquisition of other businesses
Potential dangers diversification
Relies on heavy statement
Cultural differences may exist
Example of market penetration
A busines already operating internationally has wider potential
Existence in a segment of a market may help market penetration
Example ot product development
May tap into expertise for research and development
Identify countries leading in product development
Market development example
Identify rising star countries
Easier if new areas have similiar expectations and cultures
Diversification example
Continues to be highest risk strategy especially in an international context
Example of soft hrm
Offering competitive salary and bonus packages for attract and retain talented individuals
Example of hard hrm
Employee appraisal systems that examine negative and positive performance
Factors that capacity depends on
Lebel of demand for a product
Flexibility of production lines
Seasonality of product
Benefits of decision trees
Choices set out in logical way
Easy to understand
Likely costs are considered as well as potential benefits
Benefits of decision trees
Choices set out in logical way
Easy to understand
Likely costs are considered as well as potential benefits
Drawbacks of decision trees
Probabilities are just mistakes
Quantitve data only
Assignment of probabilities
Hrm leadership style
Likely to be have more authority and be more autocratic as approach requires more authority and likely to involve more centralised structure than decentralised
SRM leadership style
Focuses on motivational issues and organisational culture as well as industrial relations. Likely o be a democratic leadership style and to delegate authority as well as be more decentralised
