Topic 6 - HR

Question 1

What is a HR objective?

Answer 1

a specific goal or target of relating to the management and performance of human resources in a business

Question 2

Why is HR important?

Answer 2

• most businesses now provide services rather than produce goods, people are the critical resource to deliver the required quality and customer service level
• competitiveness requires a business to be efficient and productive, this is difficult unless the workforces if well motivated
• the move towards fewer layers of management has placed greater emphasis on delegation and communication

Question 3

Aspects of HR include…

Answer 3

recruitment and selection
training
employee engagement and involvement
managing diversity
developing corporate culture

Question 4

What is Human Resource Management (HRM)?

Answer 4

the design, implementation and maintenance of strategies to manage people for optimum business performance

Question 5

Common HRM Objectives

Answer 5

• ensure Human Resources are employed cost-effectively
• make effective use of workforce potential
• match the workforce to the business needs
• maintain good employer/ employee relations
• manage diversity well
• high employee engagement and involvement

Question 6

Hard HRM

Answer 6

treats employees simply as a resource of the business. strong link with corporate business planning - what resources do we need, how do we get them and how much will they cost

Question 6

Soft HRM

Answer 6

treats employees as the most important resource in the business and a source of competitive advantage. Employees are treated as individuals and their needs are planned accordingly

Question 7

Key Measures of HR Performance

Answer 7

labour turnover and staff retention - percentage of staff who leave during a period
labour productivity - output per employee
absenteeism - percentage of staff who are absent form work

Question 8

Labour Turnover Formula

Answer 8

number of employees leaving during period/ average number employed during period x 100

Question 9

Problems of High Staff Turnover

Answer 9

• higher costs
• increased pressure on remaining staff
• disruption to production/ productivity
• harder to maintain required standards of quality and customer service

Question 10

Factors that Affect Staff Turnover

Answer 10

• type of business
• pay and other rewards
• working conditions
• opportunities for promotion
• competitor actions
• standard of recruitment

Question 10

Ways to Improve Staff Turnover

Answer 10

• effective recruitment and training
• provide competitive pay and other incentives
• job enrichment
• reward staff loyalty

Question 11

Factors that Influence Organisational Structure

Answer 11

Size of the business
Type of business
Management and Leadership Style
The Competitive environment

Question 12

Span of Control

Answer 12

the span of control is the number of employees for whom a manager is responsible
wide span of control
narrow span of control

Question 13

Chain of Command

Answer 13

describes the lines of authority within a business