Topic 6: Human Resource Management

Question 1

XWhat is HRM?

Answer 1

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

Question 2

What is the overall aim of Human Resource Management?

Answer 2

Maximize the contribution of employees to the organization’s overall objectives.

Question 3

Examples of HR objectives

Answer 3

• employee engagement
• talent development
• training
• diversity
• alignment of employer and employee values
• the number, skills and location of employees

Question 4

What is hard HRM?

Answer 4

• treats employees simply as a resource of the business

Question 5

What is soft HRM?

Answer 5

• treats employees as the most important resource in the business and a source of competitive advantage
• employees are treated as individuals

Question 6

Advantage of hard HRM?

Answer 6

Might result in a more cost-effective workforce where decision-making is quicker and focused on senior managers

Question 7

Disadvantage of hard HRM?

Answer 7

Might expect to suffer from higher absenteeism and staff turnover and less successful recruitment

Question 8

Advantage of soft HRM?

Answer 8

an approach which rewards employee performance and motivates staff more effectively

Question 9

Disadvantage of soft HRM?

Answer 9

When all the employee benefits are added the cost of the workforce may leave a business at a competitive disadvantage

Question 10

What the managers need to consider when measuring performance

Answer 10

• Is the workforce motivated?
• Is the workforce as productive as it could be
• are hr policies helping meet business goals

Question 11

Four ways to measure employee performance

Answer 11

• Labour productivity
• Employee costs as a percentage of turnover
• Labour cost per unit
• Labour turnover

Question 12

How to calculate labour productivity

Answer 12

Output/number of employees

Question 13

Ways to improve labour productivity

Answer 13

• Improve technology
• Specialisation of staff
• Motivation and training

Question 14

Why would labour productivity need to be improved?

Answer 14

• To increase competitiveness and profits

Question 15

What is increased productivity a result of?

Answer 15

• Improvements of efficiency

Question 16

What can high employee costs as a percentage of turnover indicate?

Answer 16

• impact of inefficiency e.g less productive staff
• Could also indicate better service in a service sector organisation

Question 17

What do high labour costs per unit indicate?

Answer 17

• Lower profit margins will be made

Question 18

What does lower cost per unit indicate?

Answer 18

• That a firm can be more competitive

Question 19

Internal causes of high labour turnover

Answer 19

• Poor recruitment process
• ineffective motivation
• wage levels lower than other firms

Question 20

External causes of high labour turnover

Answer 20

• More local vacancies
• Better transport

Question 21

Why is zero labour turnover bad?

Answer 21

• Lack of new ideas and skills into the business

Question 22

Negative consequences of high labour turnover

Answer 22

• Cost of recruitment and training
• Loss of productivity while new workers learn

Question 23

Positive consequences of high labour turnover

Answer 23

• New workers bringing a new idea ideas
• New ways to overcome problems

Question 24

What is employee retention?

Answer 24

• The proportion of staff to stay in a year

Question 25

What do managers analyse to assess good performance

Answer 25

- changes over time - comparisons with smaller firms - performance against targets

Question 26

Why is there a need for organisational design

Answer 26

- organisations grow and become more complex - Taylor considered how to structure an organisation

Question 27

What are the functions of organisations

Answer 27

- converting inputs into outputs in order to make profit

Question 28

What is an organisation structure

Answer 28

- shows the roles, responsibilities and relationships of each member of the business

Question 29

What are the 4 types of organisational structure

Answer 29

- functional - product based - regional - matrix

Question 30

Functional structure, advantage and disadvantage

Answer 30

- Organise staff by department Adv: employees with the same skills work together Dis: can lead to rivalry between departments

Question 31

Product based structure, advantage and disadvantage

Answer 31

- organise staff by product Ad: strategies can be focused on individual products when trying to increase market share Dis: unnecessary duplication of roles

Question 32

Regional structures, advantage and disadvantage

Answer 32

Organised staff by geographic location Ad: tend to suit market development strategy - ansoff’s matrix Dis: unnecessary duplication of roles

Question 33

The matrix structures, advantage and disadvantage

Answer 33

Organise stuff by combination of factors Ad. Encourages relationships between departments Dis: possible conflicts

Question 34

What can more levels in an organisational structure indicate

Answer 34

- slower and less reliable communication - People at the top can’t see work faced by those of the bottom

Question 35

What is a span of control?

Answer 35

- Number of people directly under the supervision of one manager

Question 36

Advantages of a narrow span of control

Answer 36

- Allows close management supervision - Communication is good

Question 37

Disadvantages of a narrow span of control

Answer 37

- workers may feel over supervised - Now spawn means more layers and communication may suffer

Question 38

What is the chain of command

Answer 38

- The reporting system from the top to the bottom of the hierarchy - The longer the chain the more chance of information being distorted

Question 39

What is delegation?

Answer 39

- passing authority down hierarchy - Giving responsibility to junior managers

Question 40

What is centralisation?

Answer 40

- Decision making power remains in the hands of the top management

Question 41

What is decentralisation?

Answer 41

Decision making power is delegated to those lower down the hierarchy

Question 42

Internal influences on delegation, centralisation and decentralisation

Answer 42

- leadership and management styles - corporate objectives - skills of the workforce

Question 43

external influences on delegation, centralisation and decentralisation

Answer 43

- technological : - competitive: flexible structure to better respond to customer needs - economic environment: rising economic performance, rising incomes, rising demand - encourages decentralisation

Question 44

benefits of centralisation

Answer 44

- greater consistency and coordination across different departments - easier management control

Question 45

drawbacks of centralisation

Answer 45

- slower decision making - employees may feel less empowered - less job satisfaction - higher labour turnover

Question 46

benefits of decentralisation

Answer 46

- increased employee empowerment - greater flexibility to respond to local needs - promotes creativity and innovation

Question 47

drawbacks of decentralisation

Answer 47

- less consistency across different regions - duplication of oeffort or resources

Question 48

what is delayering

Answer 48

removal of one or more levels of hierarchy from the organisational structure

Question 49

advantages of delayering

Answer 49

- better communication as the chain of command is smaller - reduced employee costs as a % of turnover - wage cuts

Question 50

disadvantages of delayering

Answer 50

- staff redundancy costs - loss of corporate memory - losing staff with customer relationships

Question 51

two variables that influence the motivation of staff

Answer 51

- financial reward systems - non financial systems