Unit 2 - HR Flashcards
A2 - Communication, leadership & strategy
What is an organizational structure?
How the business is arranged to carry out activities
It helps clarify which part of the business does what.
Define hierarchy in an organization.
The number of layers of levels within an organization
What is delegation in a management context?
Where managers give a portion of their work to subordinates, who are held accountable for it
What is span of control?
The number of subordinates a manager has direct control over
What does a wide span of control imply?
More delegation and greater trust in subordinates
What is the chain of command?
The line of communication and authority from top to bottom
What is delayering?
The removal of one or more levels of hierarchy from an organizational structure
Describe a hierarchical structure that is tall/narrow.
Defined layers with specific roles and responsibilities
List advantages of a tall/narrow hierarchical structure.
- Authority and responsibilities are clearly defined
- Specialist managers can be used effectively
- Clear route for promotion
- Easy to manage smaller numbers of people
What are disadvantages of a tall/narrow hierarchical structure?
- Slow to respond to customer needs
- Difficult horizontal communication
- Potential for inter-departmental rivalry
- Workers may feel micromanaged
Describe a flat/wide hierarchical structure.
Has few layers in the hierarchy with a wide span of control
List advantages of a flat/wide hierarchical structure.
- Quicker communication
- Wider span of control
- Less micromanagement
- Cost-effective
What are disadvantages of a flat/wide hierarchical structure?
- Unclear route of promotion
- Undefined authority and responsibilities
- Managers could lose control
What is a Hard HRM approach?
An approach to managing staff which focuses on cutting costs such as temporary and part time staff & contracts, offering maximum flexibility with minimum training costs
Advantages of a Hard HRM approach ?
- Reduces the risk of errors being made
- Employees are easily replaceable
- Outcomes are predictable
Disadvantages of a Hard HRM approach ?
- Low employee moral
- High staff turnover
- Reliant on management
What is a Soft HRM approach?
The approach to managing staff which focuses on developing staff so they reach self-fulfilment and are motivated to work hard and stay within the business
What are key thing which will happen with soft HRM
- A manger will ensure that an employees welfare and motivation are prioritised, employee relations will be strong
- View that employees can add value to an organisation and that a business should develop, enhance and build on their interests
- Managers are the facilitators, are there to help and support the employees
What are advantages of soft HRM ?
- More creativity and innovation
- Competitive advantage
- Employee loyalty”
What are disadvantages of soft HRM ?
- Time
- Costs
- May not be suitable for the staff or business
What are some issues of HRM for anylasis ?
Political
Economic
Social
Technological
Environmental
Legal
Pandemic
Ethical
Competition
(PESTAL & PEC)
Why do managers need to measure employee performance ?
Managers need an unbiased and objective way to measure employee performance. They will need to look at data not the persons themselves.
It will indicate :
- Is the workforce motivated ?
- Is the workforce as productive as it should be ?
- Are the personnel polices of the business helping the business meet its goal ?
What are the four KPI ?
KPI - Key performance indicators
- Labour productivity
- Absenteeism
- Labour turnover
- Waste level
How to caluclate labour productivity ?
Labour productivity = Total output in a time period / Total staff employed
(X per worker per time period)
What is labour productivity ?
It is seen as the most important KPI, comparing the number of workers to output. Increase in productivity suggests an improvement in efficiency and lean productivity systems look for greater output (production) from the least input (labour).
What is absenteeism ?
The measure of the total number workers of who are absent as a %
How to calculate absenteeism?
Absenteeism = (Number of staff absent / Total number of staff) x 100
Think Herzberg’s hygiene factors
Why would people be absent?
- Poor working conditions
- No respect
- No teamwork
- Over (or under) supervision
- Inappropriate tasks
- Low pay
What are the costs of absenteeism ?
- Lost production, work is lost forever no matter the business
- Extra overtime needed to meet the deadlines to cover for absent colleagues
- Increased level of absenteeism culture spreads through the firm
How would you reduce absenteeism ?
- Flexitime - relieves pressure of childcare or transport
- Job enrichment - satisfying challenging job that will make workers want to come to work
- Improved working conditions
- Improved human relations - make workers feel valued
What is labour turnover ?
The rate of change of a firms workforce
How to calculate labour turnover ?
Labour turnover = (Number of staff leaving over a given period of time / Average number of staff ) x100
What is labour turnover caused by internally?
Internal factors :
* Ineffective motivation or leadership,
* Poor recruitment
* Appointed the wrong person in the beginning
* Lower wages than a similar firm.
What are positive consequences of labour turnover ?
New workers will bring new ideas to a firm
Workers with specific skills can be employed rather than having to train up existing employees
Cuts cost by reducing number of staff
What are negative consequences of labour turnover ?
Negative look / bad reputation for the business
Cost of recruitment
Cost of training employees
Loss of productivity while new workers adjust
What is waste level ?
The level of waste produced by a firm is an indicator of its efficiency.
