Section 6 - Human Resources Flashcards
Define human resource objectives
targets that the functional area of a business that is responsible for all employee related issues want to achieve in a given period of time
State 5 human resource objectives
- diversity
- employee engagement and involvement
- talent development
- training
- number and location of staff
Define diversity as a human resource objectives
- recognising that all employees are unique and creating an inclusive environment
- more diversity = competitive advantage – more creativity
- more representative of customers
Define employee engagement and involvement as a human resource objective
- extent to which employees can have a say in decisions that impact their work
- more engaged employees = more motivated, higher labour productivity and retention
Define talent development as a human resource objective
- development of star employees who have potential to make major contribution to business’ success
- keeping highflyers = more competitive, profitable and efficient.
Define training as a human resource objective
- the process of increasing the knowledge and skills of an employee for doing a particular job.
- increases productivity, quality of work and production and increases health and safety
Define number and location of staff as a human resource objective
- having the right # of staff = maximised efficiency
Define CSR
where companies integrate social and environmental concerns in business operations and interactions with stakeholders
Define ethics
- responsibility to act morally and ethically
– competitive advantage: employees more likely to be motivated, stay with company, better reputation
Define philanthopic
giving back to society eg. Charitable donations, volunteer work
What external influences can affect human resources?
- PESTLE
- Market changes – link to differentiation
- Economic changes (eg. Recession)
- Technological change (eg. Social media, communication)
- Social change (eg. How people live (working from home)
Define hard management
- staff are resources (low skilled workers who require more management)
- minimal communication
- little employee empowerment
- taller organisational structure
- autocratic
- leads to faster decision making
Define soft management
- focused on the needs of employees
- better, two-way communication
- increased empowerment and responsibility
- flatter organisational structures
- democratic
- likely to be paid more
Define piece rate
where employees are paid per piece sold
What are the advantages of piece rate
- efficiency pays better
- easier to work from home
What are disadvantages of piece rate
- corner cutting likely
- quality can suffer
- slow work = potential to fall under MW (link to Maslow)
Define commission
being paid a % of sales on top of a regular salary/wage - may be dependent on base pay rate (link to type of job/skill level and Maslow)
What are advantages of commission
- higher skilled workers get paid better
- value of business is increased with skill rather than just output
What are disadvantages of commission
- sales may become a priority over customer needs
- may need to pressure/oversell to consumers
- less income security
Define salary schemes (bonus)
lump sum paid on top of a salary (usually around Xmas or when target tasks completed)
What are the advantages of bonuses?
- can be used as an incentive to meet goals
- makes employees feel valued
What are the disadvantages of bonuses?
- can be costly for an employer
- taxes have to be paid on bonus (becomes part of total income)
Define performance related pay
paid based on an employees ability to fulfill goals/criteria or for hard work
What are advantages of performance related pay
- direct link between performance and pay
- easy to rank staff
- good way to monitor staff
What are the disadvantages of performance related pay
- can cause jealousy between workers
- unachievable goal can demotivate
Define delegation
allocating tasks to employees
What are the advantages of delegation
- builds managers self confidence and motivation
- team potential is maximised
- trust building between workers and managers
What are the disadvantages of delegation
- not always used to motivate - can be used when managers overloaded
- can be abused
- suitable employees not always chosen
Define consultation
employees take part in decision-making (eg. how to improve productivity, cut costs or solve issues)
What are the advantages of consultation
- prevents minor issues growing into bigger ones
- avoids union action
- employees feel included and valued
What are the disadvantages for consultions
- employees may not know what is needed for success
- employees may have own personal agendas - not company interest at heart
Define empowerment
employees have more authority and responsibility in business
What are the advantages of empowerment
- staff feel recognised - increased prod. and motivation
- better problem solving
- increased loyalty (^ retention)
What are the disadvantages of empowerment
- could be considered delayering (cost cutting)
- more to do for the same pay
- lack of experience = mistakes
What are the advantages of team working
- talents are pooled together
- business can develop more ideas - more innovation
- group peer pressure - motivation
What are the disadvantages of team working
- individual approaches may be better
- tensions can occur - not everyone agrees
What are some examples of flexible working?
working from home, flexible hours, part time
What are the advantages of flexible working
- enables work-life balance
- increased cost-efficiency - less machinery down time, saving on overheads
- reduced sickness absence
What are disadvantages of flexible working
- schedules may clash
- people may take advantage of flexible system
- temptations working from home
Define job enrichment
creating a greater variety of tasks of greater responsibility making jobs less repetitive
What are advantages of job enrichment
- makes job more interesting
- increased loyalty (retention)
- prepares employees for promotion
What are disadvantages of job enrichment
- some employees may find job harder
- some jobs may require extra training
- not all jobs can be enriched
Define job rotation
moving employees from one task to another so they become trained in a variety of areas/skills (resource utilisation)
What are advantages of job rotation
- creates multi skilled employees
- makes job less boring - reduced turnover
- easy, cost effective
What are the disadvantages of job rotation
- some employees may prefer one job to another
- time consuming for employees to learn new skills
Define job enlargment
giving employees more tasks of the same responsibility to prevent boredom and expand scope
What are the advantages of job enlargement
- tasks more interesting and varied
- employee retention improves
What are the disadvantages of job enlargement
- more tasks to do in a day
- needs a clear career progression
What is the objective when improving organisational design
maximise efficiency
What are the key features of a hierarchy
- break organisation into divisions (eg. marketing, finance)
- every individual answers to one person
- span of control kept low.= pprevents overload of subordinates
How does organisational design change as a business grows?
- at first: only 1-2 employees = no formal organisation needed (communication is face-to-face)
- as business grows: more employees involved = more formal organisation needed
What happens in larger organisations with more staff?
slower communication
Define span of control
the number of people directly under managerial supervision
What does a larger span of control mean
more staff to manage and communicate to - may be a lack of guidance and communication
What does an ideal SoC depend on?
nature of the business, tasks, skills and attitudes of workforce
What are the advantages of a narrow SoC
- close management (high labour turnover, inexperienced staff, critical tasks)
- better communication (faster)
- better chance of promotion
What are the disadvantages of a narrow SoC
- staff may feel oversupervised (lack of trust and responsibility)
- more hierarchical levels
- restricted scope for initiative and experience (alienates enterprising staff)
Define chain of command
the route the info travel through an organisation
- more layers = longer chain of command = gap created between managers and workers
Define centralisation
decision-making power and control remains at top management levels
- eg. fast food chains to maintain control - enables consistent quality and customer experience + exploit economies of scale
Define decentralisation
decision-making power is given to staff
- eg. supermarket and hotel workers may need to make quick decisions
What is common with centralisation and decentralisation
to use a combination of both or jump between both depending on a situation
