Unit 2 Flashcards
Human resource
planning
Definition: the business process for ensuring that
an organisation has suitable access to potential
candidates to ensure future business success
Labour turnover
- The movement of employees in and out of a
business in a given time period as an indicator for
stability of a business
(number of staff leaving per year) / (average
number of staff employed per year) x 100
High labour turnover: unstable
Low labour turnover: unstable, but may lead to
lack of progress
HR plan: Must keep a healthy labour turnover
Internal factors
affecting HR
planning
- Business organisation
- Business finance
- Labour reaction
- Business strategy.
External factors
affecting HR
planning
- Technology
- Government regulation
- Education
- Demographic change
- Social trends
- Labour mobility
- Economy
Four steps of HR
plan
- Recruitment, training, appraisal, termination/
dismissal
Recruitment
Identification: business realises it needs a new
employee because of a change in internal factors
Application: business has to deduce how to find
the best applicant for the job
Selection process: The final part is selection of the
best applicant for the job
Training
- Induction: Training that focuses on making a new
employee familiar with the way the business
functions and the lines of authority - On the job: When employees are trained while
they are doing their job (mentoring/shadowing) - Off the job: When employee is given time off
work to attend training away from the job - Cognitive training: Helps develops the worker’s
thinking/processing skills - Behavioral training: Helps develop the worker’s
interpersonal and intrapersonal skills
Appraisal
- Formative: Give praise when employee has done
well - Summative: Measures an employees
performance according to standards - 360 degree: Employee receives appraisal from
co-workers/managers/customers/etc - Self appraisal: Use of self-appraisal forms which
may have performance indicators
Termination,
dismissal and
redundancy
- Termination: Employee terminates or leaves the
business at the end of their contract - Dismissal: When an employee breaks terms of
the contract and is dismissed as a result - Redundancy: When a business no longer has any
work for an employee (can be either voluntary/
involuntary)
Changes in work
pattern
- Types of job wanted by people constantly
change - In every country, there are different most sought
out jobs
Changes in work
practices
- Full time
- Part time work: Employee works less than the
full time weekly maximum hours - Temporary: Fixed term contract (i.e: maternity
leave) - Freelance: Self-employed working for several
different employers at the same time - Teleworking: Working from home or
telecommunication centre - Homeworking: Employee works from home
- Flexitime: Worker decides amount of hours
- Three-day weekend: Worker works more during
week so that he/she has a longer weekend
Changes in work
preferences
- Career breaks: Employee decides to stop
working for a time, but returns after some time
(sabbatical) - Job share: Two or more employees decide to
share a job in order to free up more time for
other activities - Downshifting: An employee gives up senior
position to work at a lower-paid position - Study leave: Employee is granted time off to
acquire a new qualification
Outsourcing,
offshoring and
resourcing
- Outsourcing/offshoring: May be used to cut
down HR costs - Reshoring: May be done to regain control/
personalise HR plan
Innovation, ethics
and culture on HR
strategies
Innovation: If company is innovative, it needs a
healthy HR plan in order to keep workers
motivated
Ethics: HR plan reflects how business treats its
employees
Culture: MNC’s must have diverse HR plan to suit
varied workforce
Delegation
- When a manager gives authority for a particular
decision, but not for the outcome
Span of control
- How many subordinates are directly under the
authority of a manager
Levels of hierarchy
- How many levels of responsibility are in a
business
Chain of command
- The formal route by which a decision must travel
through the organisation
Bureaucracy
- Any administrative system
Centralisation
- The degree of individuals involved in making
major decisions
De-centralisation
- Opposite of centralisation
De-layering
- Levels of hierarchy are reduced by removing
layers of management
Tall organisation
- Many levels of hierarchy
- Narrow span of control
- Centralised decision making
- Long chain of command
- Autocratic leadership
- Limited delegation
Flat organisation
- Few levels of hierarchy
- Wider span of control
- Decentralised decision making
- Shorter chain of command
- Democratic leadership
- Increased delegation