Unit 2

Question 1

Human resource
planning

Answer 1

Definition: the business process for ensuring that
an organisation has suitable access to potential
candidates to ensure future business success

Question 2

Labour turnover

Answer 2

• 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

Question 3

Internal factors
affecting HR
planning

Answer 3

• Business organisation
• Business finance
• Labour reaction
• Business strategy.

Question 4

External factors
affecting HR
planning

Answer 4

• Technology
• Government regulation
• Education
• Demographic change
• Social trends
• Labour mobility
• Economy

Question 5

Four steps of HR
plan

Answer 5

• Recruitment, training, appraisal, termination/
  dismissal

Question 6

Recruitment

Answer 6

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

Question 7

Training

Answer 7

• 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

Question 8

Appraisal

Answer 8

• 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

Question 9

Termination,
dismissal and
redundancy

Answer 9

• 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)

Question 10

Changes in work
pattern

Answer 10

• Types of job wanted by people constantly
  change
• In every country, there are different most sought
  out jobs

Question 11

Changes in work
practices

Answer 11

• 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

Question 12

Changes in work
preferences

Answer 12

• 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

Question 13

Outsourcing,
offshoring and
resourcing

Answer 13

• Outsourcing/offshoring: May be used to cut
  down HR costs
• Reshoring: May be done to regain control/
  personalise HR plan

Question 14

Innovation, ethics
and culture on HR
strategies

Answer 14

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

Question 15

Delegation

Answer 15

• When a manager gives authority for a particular
  decision, but not for the outcome

Question 16

Span of control

Answer 16

• How many subordinates are directly under the
  authority of a manager

Question 17

Levels of hierarchy

Answer 17

• How many levels of responsibility are in a
  business

Question 18

Chain of command

Answer 18

• The formal route by which a decision must travel
  through the organisation

Question 19

Bureaucracy

Answer 19

• Any administrative system

Question 20

Centralisation

Answer 20

• The degree of individuals involved in making
  major decisions

Question 21

De-centralisation

Answer 21

• Opposite of centralisation

Question 22

De-layering

Answer 22

• Levels of hierarchy are reduced by removing
  layers of management

Question 23

Tall organisation

Answer 23

• Many levels of hierarchy
• Narrow span of control
• Centralised decision making
• Long chain of command
• Autocratic leadership
• Limited delegation

Question 24

Flat organisation

Answer 24

• Few levels of hierarchy
• Wider span of control
• Decentralised decision making
• Shorter chain of command
• Democratic leadership
• Increased delegation

Question 25

Organisational
charts

Answer 25

• Can be composed of: hierarchy, function,
  product, region

Question 26

Project based
organisation

Answer 26

• Designed to be flexible and responsive
• Teams in charge of specific tasks
• Only temporary

Question 27

Shamrock
organisation

Answer 27

Shamrock organisation a market structure in which a business trims its workforce to retain only multi-skilled core, which is concerned with the creation of a product. All other supporting, non-central functions are outsourced to the periphery.
- Core: core activities/core workforce
- Subcontractors: In charge of additional services/
peripheral activities
- Flexible workforce: part time, temporary,
seasonal workers

Question 28

Communication

Answer 28

• Verbal: interviews, meetings, lectures
• Visual: videos, signs, notice boards
• Written: reports, lectures, notices, bulletins

Question 29

Communication and
innovation

Answer 29

Innovation enhances ways of communication

Question 30

Communication and
culture

Answer 30

Culture affects choice of communication

Question 31

Key functions of
management

Answer 31

• Planning: set strategic/operational objectives
• Organising: business must have sufficient
  resources
• Commanding: All individuals must know what to do
• Coordinating: Managers must bring together
  resources to achieve objectives
• Controlling

Question 32

Managers

Answer 32

• Instruct and coordinate people
• Help subordinates resolve problems
• Technical
• Authority
• Make organisation function

Question 33

Leaders

Answer 33

• Motivate/inspire
  • Rely on instincts
• Have vision
• Can lead company through change

Question 34

Autocratic
leadership

Answer 34

Autocratic leadership is a leadership style in which the leader holds complete control over decision-making and authority within the organization. Here are some advantages and disadvantages of autocratic leadership, as well as its limitations:

Advantages:

Clear direction: Autocratic leaders provide clear direction to their followers, which can be beneficial in situations where quick decision-making is necessary. The leader’s control over the decision-making process can help ensure that decisions are made efficiently and with clarity.
Quick decision-making: Because autocratic leaders have complete control over decision-making, they can make decisions quickly and without the need for lengthy discussions or input from others. This can be beneficial in situations where time is of the essence.
Efficient management: Autocratic leaders are able to manage their resources and employees more efficiently due to their control over the decision-making process.
Disadvantages:

Lack of collaboration: Autocratic leaders do not seek input or opinions from their followers, which can lead to a lack of collaboration and teamwork. This can result in lower employee morale and engagement, as well as a lack of trust in the leader.
Decreased creativity: Autocratic leaders are often more focused on maintaining control and may not encourage creativity or innovation among their followers. This can limit the organization’s ability to adapt to change or develop new ideas.
High turnover: Autocratic leaders may be seen as controlling or oppressive, which can lead to high turnover rates and difficulty in recruiting and retaining talented employees.
Limitations:

Situational effectiveness: Autocratic leadership may be effective in certain situations, such as in a crisis or in a highly structured environment. However, it may not be effective in situations where collaboration and creativity are important.
Cultural considerations: Autocratic leadership may be more acceptable in some cultures than in others. In cultures that value individualism and democracy, autocratic leadership may not be viewed positively.
Ethics considerations: Autocratic leadership can raise ethical concerns if the leader uses their power to exploit or manipulate their followers.

Question 35

Paternalistic
leadership

Answer 35

Paternalistic leadership is a leadership style in which the leader takes on a parental role, providing guidance, support, and direction to their followers. Here are some advantages and disadvantages of paternalistic leadership, as well as its limitations:

Advantages:

Increased loyalty: Paternalistic leaders tend to create a sense of loyalty and commitment among their followers, as they are viewed as caring and supportive. This can lead to increased employee retention and satisfaction.
Positive work environment: Paternalistic leaders aim to create a positive work environment, promoting collaboration, trust, and respect. This can result in a more positive organizational culture, with higher employee morale and engagement.
Employee development: Paternalistic leaders often invest in the development of their employees, providing mentorship, training, and opportunities for growth. This can lead to increased employee skills and knowledge, as well as increased motivation and job satisfaction.
Disadvantages:

Limited autonomy: Paternalistic leaders tend to make decisions for their followers, which can limit autonomy and creativity. This can lead to a lack of innovation and adaptability, and may stifle employee growth and development.
Dependence on the leader: Paternalistic leaders may create a sense of dependence among their followers, which can limit their ability to work independently or think critically. This can result in a lack of initiative or ownership among employees.
Inflexibility: Paternalistic leaders may be resistant to change or new ideas, as they tend to value tradition and stability. This can limit the organization’s ability to adapt to changing circumstances or respond to new challenges.
Limitations:

Cultural considerations: Paternalistic leadership may be more acceptable in some cultures than in others. In cultures that value individualism and independence, paternalistic leadership may not be viewed positively.
Gender considerations: Paternalistic leadership is often associated with male leaders, which can create gender bias or stereotypes in the workplace.
Power imbalances: Paternalistic leadership can create power imbalances between the leader and their followers, which can lead to ethical concerns if the leader abuses their power or exploits their followers.

Question 36

Democratic
leadership

Answer 36

Democratic leadership is a leadership style in which the leader seeks input and participation from their followers in the decision-making process. Here are some advantages and disadvantages of democratic leadership, as well as its limitations:

Advantages:

Increased participation and engagement: Democratic leaders involve their followers in the decision-making process, which can increase participation and engagement. This can result in higher levels of employee satisfaction and motivation.
Enhanced creativity and innovation: Democratic leaders encourage creativity and innovation among their followers, which can result in new ideas and approaches. This can lead to improved problem-solving and decision-making within the organization.
Improved communication and teamwork: Democratic leaders promote communication and collaboration among their followers, which can result in a more positive organizational culture and better teamwork.
Disadvantages:

Time-consuming: Democratic leadership can be time-consuming, as it involves gathering input and opinions from multiple sources. This can result in slower decision-making processes, which may not be ideal in certain situations.
Lack of clarity and direction: Democratic leaders may struggle to provide clear direction and guidance, as they rely on input from their followers. This can result in confusion or uncertainty among employees, and may limit the leader’s ability to make difficult decisions.
Difficulty in consensus-building: Democratic leadership relies on consensus-building and collaboration, which can be difficult to achieve in situations where there are differing opinions or conflicting goals.
Limitations:

Cultural considerations: Democratic leadership may be more acceptable in some cultures than in others. In cultures that value hierarchy or deference to authority, democratic leadership may not be viewed positively.
Power imbalances: Democratic leadership can create power imbalances if the leader is perceived as favoring certain followers or if certain individuals dominate the decision-making process.
Lack of expertise: Democratic leadership may not be effective in situations where the leader lacks expertise or knowledge in a particular area, as input from followers may not provide the necessary information or guidance.

Question 37

Laissez-faire
leadership

Answer 37

Laissez-faire leadership is a leadership style in which the leader provides little guidance or direction to their followers, allowing them to make their own decisions and solve problems independently. Here are some advantages and disadvantages of laissez-faire leadership, as well as its limitations:

Advantages:

Increased autonomy: Laissez-faire leadership allows employees to have a greater degree of autonomy and control over their work, which can lead to increased motivation and job satisfaction.
Improved creativity and innovation: Laissez-faire leadership encourages employees to think independently and come up with their own ideas, which can result in improved creativity and innovation within the organization.
Flexibility: Laissez-faire leadership allows for greater flexibility in the workplace, as employees are able to make their own decisions and work on their own schedules.
Disadvantages:

Lack of guidance and support: Laissez-faire leadership can lead to a lack of guidance and support from the leader, which can result in confusion or uncertainty among employees. This can also limit their ability to develop their skills and knowledge.
Decreased productivity: Laissez-faire leadership may lead to decreased productivity, as employees may lack direction or support in achieving their goals. This can also result in a lack of accountability or responsibility among employees.
Potential for conflict: Laissez-faire leadership can lead to potential conflicts among employees, as they may have different ideas or approaches that are not aligned with each other or the organization’s goals.
Limitations:

Cultural considerations: Laissez-faire leadership may be more acceptable in some cultures than in others. In cultures that value hierarchy or structure, laissez-faire leadership may not be viewed positively.
Lack of control: Laissez-faire leadership may not be effective in situations where the leader needs to maintain control over the decision-making process or the outcomes.
Need for skilled employees: Laissez-faire leadership requires skilled and motivated employees who are able to work independently and make decisions on their own. This can be a limitation if the organization does not have the necessary talent or resources

Question 38

Situational
leadership

Answer 38

Situational leadership is a leadership style in which the leader adapts their approach to the needs and abilities of their followers, depending on the situation. Here are some advantages and disadvantages of situational leadership, as well as its limitations:

Advantages:

Flexibility: Situational leadership allows leaders to be flexible in their approach, adapting to the needs and abilities of their followers. This can result in more effective leadership and better outcomes for the organization.
Improved communication and collaboration: Situational leadership requires leaders to communicate effectively with their followers and involve them in the decision-making process. This can result in better teamwork and collaboration within the organization.
Increased motivation and satisfaction: Situational leadership can increase motivation and satisfaction among employees, as it allows them to have a greater degree of input and control over their work.
Disadvantages:

Time-consuming: Situational leadership can be time-consuming, as it requires leaders to assess the situation and determine the appropriate approach for each individual or group.
Complexity: Situational leadership can be complex, as it requires leaders to have a deep understanding of their followers’ needs and abilities, as well as the organizational goals and objectives.
Potential for inconsistency: Situational leadership can lead to inconsistency in leadership, as the approach may vary depending on the situation or the follower. This can result in confusion or uncertainty among employees.
Limitations:

Lack of clear guidance: Situational leadership may not provide clear guidance or direction to followers, as the approach may vary depending on the situation. This can result in confusion or uncertainty among employees.
Difficulty in implementation: Situational leadership can be difficult to implement effectively, as it requires leaders to have a deep understanding of their followers’ needs and abilities. It can also be difficult to assess the situation accurately and determine the appropriate approach.
Need for training and development: Situational leadership requires leaders to have strong communication and interpersonal skills, as well as the ability to adapt to different situations. This may require additional training or development for some leaders

Question 39

Ethics and
leadership styles

Answer 39

• Leaders should always act ethically

Question 40

Culture and
leadership styles

Answer 40

• Culture affects choice of leadership

Cultural values and beliefs can shape leadership style: Cultural values, beliefs, and practices can influence how leaders are viewed and what traits are seen as desirable in a leader. For example, cultures that emphasize collectivism may prefer leaders who are inclusive and collaborative, while cultures that value individualism may prefer leaders who are more independent and assertive.
Communication style can vary across cultures: Communication style can vary significantly across cultures, and this can impact how leaders interact with their followers. Leaders may need to adjust their communication style to fit the cultural expectations of their followers, particularly when working with diverse teams or operating in cross-cultural environments.
Attitudes towards authority can differ: Different cultures may have different attitudes towards authority, which can impact how leaders are viewed and how they should behave. In some cultures, leaders are expected to be decisive and assertive, while in others, leaders may be expected to be more democratic and participatory.
Cultural norms can shape leadership behavior: Cultural norms and practices can influence how leaders behave and what actions are considered appropriate. For example, in some cultures, leaders are expected to show humility and deference, while in others, leaders may be expected to display confidence and assertiveness.
Contextual factors can also influence leadership style: Cultural factors are not the only determinants of leadership style, and other contextual factors such as organizational structure, industry norms, and societal expectations may also play a role

Question 41

Intrinsic motivation

Answer 41

intrinsic motivation refers to the internal drive and desire of employees to perform well in their job, based on their own interests, values, and sense of purpose. This type of motivation is often associated with employees who are passionate about their work and feel a strong sense of satisfaction and fulfillment from their job responsibilities. They may be driven by a desire to learn, develop new skills, or achieve mastery in their field.

Question 42

Extrinsic motivation

Answer 42

Extrinsic motivation in business refers to the external factors that influence employee behavior, such as pay, bonuses, promotions, or other types of rewards and recognition. This type of motivation is often used to incentivize employees to achieve specific goals or outcomes, and it is typically tied to performance metrics or other measurable results. Extrinsic motivation can be effective in driving short-term performance and achieving specific objectives, but it may not necessarily lead to long-term engagement or job satisfaction if employees do not have an intrinsic interest in their work.

Question 43

Taylor

Answer 43

Frederick Winslow Taylor’s theory of motivation, also known as the scientific management theory, is based on the premise that workers are primarily motivated by financial rewards. He believed that workers would work harder and be more productive if they were paid more money, and that managers should focus on breaking down tasks into small, repetitive motions that can be easily measured and timed.

While Taylor’s theory of motivation did lead to some improvements in efficiency and productivity in manufacturing settings, it has several limitations and criticisms.

Advantages:

Increased Efficiency: Taylor’s approach of breaking down work into smaller, more manageable tasks can help increase efficiency by reducing wasted time and effort.
Standardization: By creating standardized procedures and methods, Taylor’s approach helps ensure consistency and reliability in the production process.
Financial Incentives: Offering financial incentives based on performance can motivate employees to work harder and increase productivity.
Disadvantages:

Oversimplification: Taylor’s approach oversimplifies work by breaking it down into small, repetitive tasks, which can lead to boredom and monotony for workers.
Lack of Autonomy: The scientific management approach can lead to workers feeling like they have no control over their work and are simply cogs in a machine.
Focus on Quantity Over Quality: Taylor’s approach emphasizes quantity over quality, which can lead to a decrease in the overall quality of the product or service being produced.
Overemphasis on Financial Incentives: While financial incentives can be motivating, they are not the only factor that influences employee behavior. Taylor’s approach ignores other factors such as social and psychological needs of workers.

Question 44

Maslow

Answer 44

Abraham Maslow’s theory of motivation, also known as the hierarchy of needs theory, suggests that individuals are motivated by a hierarchy of needs, with basic physiological and safety needs serving as the foundation for higher-level needs such as social belonging, self-esteem, and self-actualization.

Advantages:

Holistic Approach: Maslow’s theory takes a holistic approach to understanding motivation, recognizing that individuals are driven by a variety of needs and desires beyond just financial rewards.
Individual Differences: The hierarchy of needs is flexible enough to allow for individual differences in motivation, recognizing that different people may prioritize different needs.
Self-Actualization: The theory promotes the idea of self-actualization, which can lead to increased creativity, productivity, and personal fulfillment.
Disadvantages:

Overemphasis on Self-Actualization: Maslow’s theory can be criticized for overemphasizing the importance of self-actualization and neglecting more basic needs such as financial security and safety.
Limited Empirical Support: While Maslow’s theory is widely cited, it has been criticized for a lack of empirical evidence to support its claims.
Cultural Variations: Maslow’s theory is based on a Western, individualistic perspective and may not fully account for cultural variations in motivation and needs.
Limited Practical Application: While Maslow’s theory provides a useful framework for understanding motivation, it can be difficult to apply in practice, particularly in the workplace where many different needs and motivations may be at play.

Question 45

Herzberg

Answer 45

Frederick Herzberg’s two-factor theory of motivation suggests that there are two types of factors that impact motivation and job satisfaction: hygiene factors and motivators. Hygiene factors are basic job conditions that must be met in order for employees to be satisfied with their job, while motivators are factors that lead to greater job satisfaction and motivation.

Advantages:

Focus on Job Satisfaction: Herzberg’s theory places a strong emphasis on job satisfaction and the factors that lead to greater job satisfaction, which can lead to increased motivation and productivity.
Two-Factor Approach: The two-factor approach recognizes that there are different types of factors that impact motivation and job satisfaction, allowing for a more nuanced understanding of employee motivation.
Practical Application: Herzberg’s theory can be applied in a practical way by identifying and addressing specific hygiene factors and motivators in the workplace.
Disadvantages:

Limited Empirical Support: While Herzberg’s theory has been widely cited, there is limited empirical evidence to support its claims.
Overemphasis on Job Satisfaction: Herzberg’s theory can be criticized for overemphasizing the importance of job satisfaction and neglecting other factors that impact motivation and behavior, such as financial rewards.
Cultural Variations: Herzberg’s theory is based on a Western, individualistic perspective and may not fully account for cultural variations in motivation and needs.
Difficult to Measure: It can be difficult to objectively measure hygiene factors and motivators, making it challenging to apply the theory in a practical way.

Question 46

Addams

Answer 46

Advantages:

Focus on Fairness: Equity theory places a strong emphasis on fairness in the workplace, which can lead to increased motivation and job satisfaction.
Relatable: Equity theory is a relatable concept, as it is based on the idea that people compare their inputs and outputs to those of others in similar situations. This can make the theory easier to understand and apply in the workplace.
Practical Application: Equity theory can be applied in a practical way by ensuring that employees perceive their pay and benefits as fair and consistent with the contributions they make to the organization.
Disadvantages:

Subjectivity: Equity theory is subjective, as it is based on individual perceptions of fairness. This can make it difficult to apply consistently across a diverse workforce.
Limited Scope: Equity theory has a limited scope, focusing primarily on the relationship between inputs and outputs and may not fully account for other factors that impact motivation and behavior.
Incomplete Picture: Equity theory may not fully capture the complexity of workplace dynamics and may overlook the influence of external factors such as market conditions.
Limited Empirical Support: While equity theory has been widely cited, there is limited empirical evidence to support its claims.

Question 47

Pink

Answer 47

Daniel Pink’s theory of motivation, known as the self-determination theory, is based on the idea that intrinsic motivation, rather than extrinsic rewards, is the primary driver of behavior.

Advantages:

Emphasis on Intrinsic Motivation: Pink’s theory emphasizes the importance of intrinsic motivation, which can lead to increased creativity, productivity, and satisfaction.
Inclusive Perspective: Pink’s theory recognizes the importance of autonomy, mastery, and purpose for all individuals, regardless of their background or position within the organization.
Practical Application: Pink’s theory can be applied in a practical way by promoting autonomy, providing opportunities for mastery, and fostering a sense of purpose in the workplace.
Disadvantages:

Limited Empirical Support: While Pink’s theory has gained popularity in recent years, there is limited empirical evidence to support its claims.
Overlooks the Importance of Extrinsic Motivation: Pink’s theory may overlook the importance of extrinsic motivation, which can be important in certain situations, such as when tasks are repetitive or mundane.
Limited Scope: Pink’s theory has a limited scope, focusing primarily on the importance of intrinsic motivation and may not fully account for other factors that impact motivation and behavior

Question 48

Salary

Answer 48

• Employee are paid a sum of money per month
  Disadvantage: Employer relies on professionalism
  of the staff

Question 49

Wages (piece rate)

Answer 49

• Employees are paid per unit/batch produced
  Disadvantage: Emphasis on quantity, not quality

Question 50

Wages (time rate)

Answer 50

• Employees are paid on hourly rate
  Disadvantage: Workers may work slow

Question 51

Commission

Answer 51

• Employees are paid according to their end
  product
  Disadvantage: Employees may not be able to
  control end product

Question 52

Profit related pay

Answer 52

• Profit of business and profit of worker are
  intertwined
  Disadvantage: If a business loses profit, the
  workers may get low morale

Question 53

Performance
related pay

Answer 53

• Additional bonus to employee’s ordinary
  compensation determined by performance
  Disadvantage: May reduce productivity when
  cognitive tasks are involved

Question 54

Employee share
ownership

Answer 54

• Employee given bonus in form of company
  shares
  Disadvantage: Tied to the company

Question 55

Fringe benefits

Answer 55

• Extras which businesses offer to their employees
  Disadvantage: May cause division if not given
  equally

Question 56

Job enrichment

Answer 56

• Supervising less and making responsibilities
  more challenging
  Disadvantage: Cannot be applied to all work
  situations

Question 57

Job rotation

Answer 57

• Having employee rotate through different
  divisions in a business
  Disadvantage: May need training

Question 58

Job enlargement

Answer 58

• May include job enrichment/rotation
  Disadvantage: May be demotivating if work is
  simply being dumped over one

Question 59

Empowerment

Answer 59

• Giving individuals the power to make decisions
  or give them access to resources
  Disadvantage: Costly if decisions made fail

Question 60

Purpose/
opportunity to
make a difference

Answer 60

• Connecting employees to aims of organisation
  rather than the profit
  Disadvantage: Employee may lose focus of profit
  making objectives

Question 61

Teamwork

Answer 61

Disadvantage: Distracting

Question 62

Organisational
culture

Answer 62

• The attitudes, beliefs, experiences, norms and
  values which determine working relationships
  between internal stakeholders and their ways of
  interacting with external stakeholders

Question 63

Elements of
organisational
culture

Answer 63

• Attitudes, beliefs, experiences, norms and values

Question 64

Power culture
(Charles Handy)

Answer 64

-When few individuals retain the essential power
- People are usually judged by results rather than
how they achieve them

Question 65

Role culture
(Charles Handy)

Answer 65

-When each employee has a clear defined role
- Operates in a highly controlled and precise
organisational structure
- Little risk taken
- Use of rule book

Question 66

Task culture
(Charles Handy)

Answer 66

-When short term teams address specific
problems
- Power shifts between people

Question 67

Person culture
(Charles Handy)

Answer 67

• When individuals feel superior to the
  organisation and just want to do their own thing

Question 68

Organisational
attributes (Edgar
Schein)

Answer 68

• You sense attributes when you walk into an
  organisation
• What is felt, seen and heard reflects culture

Question 69

Professed culture
(Edgar Schein)

Answer 69

• Some organisations profess their culture with
  slogans, statements, etc, which give clues on how
  an organisation operates

Question 70

Organisational
assumptions (Edgar
Schein)

Answer 70

• People who have worked with a company for a
  long time talk about how ‘things are done’
• Explains why new employees get lost and why
  new managers have a hard time making new
  changes

Question 71

Reasons for culture
clashes

Answer 71

• Different comfort levels with diversity
• Different degrees of formality
• Different languages
• Different leadership styles
• Different orientations to tasks and people
• Different practices
• Different senses of time

Question 72

Consequences of
culture clashes

Answer 72

• Lack of focus
• Preoccupation with merger
• Sense of division
• Unresponsive management
• Lower productivity
• Higher labour turnover
• Conflicts
• Decreased profitability

Question 73

Individuals and
culture

Answer 73

• Individuals influence culture and culture
  influences individuals

Question 74

Role of employee
representative

Answer 74

• Fair pay, safe conditions, worker rights, etc.

Question 75

Role of employer
representative

Answer 75

Employment relations advice, skills, training and
education courses, etc.

Question 76

Collective
bargaining
(Employee method)

Answer 76

• Negotiation of condition of employment by an
  organised body of employees

Question 77

Negotiation
(Employee method)

Answer 77

• Employee representative begins a period of
  negotiations or bargaining with the employee

Question 78

Go slow (Employee
method)

Answer 78

• Workers instructed to work at reduced speeds
  without jeopardising the production process

Question 79

Work to rule
(Employee method)

Answer 79

• Employees instructed to only do their work in
  contract and not all additional things they do
  (take out trash, clean, etc.)

Question 80

Overtime ban
(Employee method)

Answer 80

• When workers don’t work overtime

Question 81

Strike (Employee
method)

Answer 81

• Production process stops

Question 82

Threat of
redundancies
(Employer method)

Answer 82

• If trade union exerts pressure, people will be
  fired

Question 83

Changes of
contract (Employer
method)

Answer 83

• I.e: Longer working hours if they want more pay

Question 84

Lockout (Employer
method)

Answer 84

• Employees are locked out of their workplace

Question 85

Closure of
workplace
(Employer method)

Answer 85

• Organisation ceases to exist

Question 86

Sources of conflict
in workplace

Answer 86

• Change, different interests, different values,
  external factors, insufficient resources, poor
  communication, poor performance

Question 87

Conciliation and
arbitration
(Approach to
conflict resolution)

Answer 87

• Use of third party to resolve dispute

Question 88

Employee
participation and
industrial
democracy
(Approach to
conflict resolution)

Answer 88

• Worker participation in decisions

Question 89

No-strike
agreement
(Approach to
conflict resolution)

Answer 89

• Trade union agrees not to strike if certain steps
  have been undertaken

Question 90

Single union
agreement
(Approach to
conflict resolution)

Answer 90

When only one union is recognised rather than
many

Question 91

Reasons for
resistance to
change

Answer 91

• Discomfort, fear, insufficient reward, lack of
  skills, loss of control, mistrust, poor
  communication, poor timing, prior experience,
  social support

Question 92

HR strategies for
reducing impact of
change

Answer 92

• Develop vision for change
• Forecast and allocate necessary resources to
  implement change
• Involve employees
• Communicate to stakeholders how process is
  unfolding
• Train employees
• Communicate benefits of the change
• Support employees

Question 93

Explain two advantages and one disadvantage of moving from an existing tall hierarchy to a matrix structure.

Answer 93

Possible advantages: Experts can be brought together from
different departments increasing the knowledge pool available
to find a solution to the task. If the intention is to find causes to
a particular problem in the manner of a fishbone analysis then
a matrix structure will allow for a wider range of views than
functional departments would put forward.
Increased motivational possibilities can be created by job
enrichment and enlargement opportunities and through
teamwork. In addition, there will be greater cooperation between
departments with longer-term intangible benefits for the
organization.
Possible disadvantages: This change will be costly to implement
in terms of time and resourcing. There will be disruption to
departments with key workers removed in order to take part in
the matrix project.
A new leader will need to be appointed to run the project or
matrix team. There could be loyalty issues and tensions if the
whole team does not value an appointed “temporary” leader.
There could be potential “cultural” clashes between workers from
different departments.

Question 94

Evaluate the financial rewards and methods of payment
that will enable firms to recruit and retain skilled workers.

Answer 94

Salaries: A competitive salary is one of the most important factors in attracting and retaining skilled workers. Companies need to offer salaries that are at least comparable to the industry standards or better. This may include a base salary as well as performance-based incentives such as bonuses or profit-sharing.
Benefits: In addition to salary, companies should also offer a comprehensive benefits package that includes health insurance, retirement plans, and other perks such as paid time off, flexible work arrangements, and employee discounts. These benefits can make a significant difference in attracting and retaining talented workers.
Stock options and equity: Companies can offer stock options or equity to employees as a way of incentivizing them to stay with the organization. This can be a powerful motivator, as employees can benefit from the growth and success of the company.
Performance-based pay: Companies can use performance-based pay to motivate employees to achieve specific goals or targets. This may include bonuses or commissions based on sales, customer satisfaction ratings, or other metrics that are directly tied to the employee’s performance.
Sign-on bonuses: Offering a sign-on bonus can be an effective way to attract skilled workers to the company. This is typically a one-time payment that is offered to employees when they first join the organization.
Training and development opportunities: Companies can also offer training and development opportunities to employees to help them grow their skills and advance their careers. This can be a powerful motivator for employees who are looking to develop new skills and advance their careers.

Question 95

Explain two disadvantages and one advantage of introducing
a piece-rate system at Fish Packaging Limited.

Answer 95

A piece-rate system is a way of rewarding labour by paying
workers for each unit produced. In the example of Fish Packaging
Limited, it would be appropriate that workers are paid for each
kilogram of fish “landed” or caught.

Disadvantages and advantages will depend on whose point of
view we are considering. For the workers a key advantage is that
the weekly or monthly wage will be directly influenced by the
amount they produce. The harder somebody works and catches
more fish, the higher the wage. This type of advantage would
suit employees who are influenced by Taylor’s “economic man”
approach.
Two disadvantages for the workers could be that, in the fishing
industry, it would be assumed that external factors such as weather are crucial. Wages being directly linked to output will
be lower if the boat cannot sail. If a negative situation due to
external factors is prolonged, workers may have to move to other
occupations. This would then lead to labour shortages for Fish
Packaging Limited when the external factors turn in its favour.
For Fish Packaging Limited, increased productivity is possible
if wages are tied to production. However, the firm will need to
monitor the use of a piece-rate system especially if workers are
driven to work harder but neglect quality control in a race to
satisfy higher production targets.
Second, making the firm’s output level a function of the workers’
motivation instead of customer demand runs the risk that waste
may occur. Losses may be incurred if Fish Packaging Limited can
only sell additional fish at deeply discounted prices.

Question 96

External factors vs recruitment

Answer 96

They impact the size and availability of the pool of potential employees for the business.
These include:
Technological
Demographic
State of economy

Question 97

Internal business vs recruitment

Answer 97

Changes from within the organization
These can include:
Changes in business organization
Changes in Labour relations
Changes in business finance

Question 98

Jobs description

Answer 98

Details the basic roles and responsibilities of a job

Question 99

Person specification

Answer 99

Used to communicate what skills, qualifications, and expertise candidates needfor the jobs.

Question 100

Shamrock organization advantages

Answer 100

Advantages
Allows for complete specialisation of
the core: they will concentrate on
innovations and gathering new ideas.
• The flexible workforce will be easier to
hire and fire.

Question 101

Shamrock organization disadvantages

Answer 101

Disadvantages
• The insourced workers will suffer from
lack of job security which might lead to
decreased motivation and lower
productivity.
Not all members of the workforce will
be able to fit into this organisation
structure.

Question 102

Functions of management

Answer 102

• Planning: Managers need to set strategic, tactical and operational objectives that affect
  different parts of the organisation.
• Organising: Managers need ro make sure the business has sufficient resources to achieve
  objectives, which requires good organisation.
• Commanding: Managers need to make sure all individuals know which duties they are
  to perform and to provide instructions if needed.
• Coordinating: Managers must bring together the various resources to achieve
  objectives. Since many different tasks happen at the same time, managers need to
  make sure that all these are done at the specific time and place they are supposed to
  be done.
• Controlling: Managers have power to control for quality of different processes and
  change them if necessary. They also have the power to increase or decrease the
  scale of operations depending on the circumstances in the market.