Unit 2: Human Resource Management Flashcards
Human Resource Management
Includes recruitment and retention, setting compensation and benefits, and specifying job responsibilities
Demographic Change
Shifts in demographic factors, such as birth rates, death rates, education levels, etc.
Labour Mobility
The ability of workers to move occupationally or geographically
How easily workers can change their place or type of work
Immigration
International movement of people into countries where they are not citizens
Specifically seek permanent residency in the new country
Flexi-Time
Flexible work schedule that allows workers to adjust the start and finishing times of their workday
Gives flexibility to meet other requirements, such as child care
Gig Economy
An economy where many positions are temporary
Organisations hire independent workers for short-term commitments
Hierarchy
A system organising or ranking people according to power or importance
Organisational Chart
Depicts the reporting relationships within an organisation
Shows who reports to whom down to the least senior level of employees in the organisation
Chain of Command
The official hierarchy in an organisation
Indicates who reports to which manager and which manager has authority over specific employees
Span of Control
The number of people reporting to a specific manager
Wide span of control mans many people reporting to the manager
Narrow span of control means a small number of people reporting to the manager
Delegation
Assigning authority or responsibility to someone lower on the organisational chart
Manager remains accountable for the successful completion of the delegated tasks
Bureaucracy
Refers to an organisation with multiple levels of authority
Bureaucracies often have complex approval processes, slowing down decision-making
Centralisation
When personnel at the main or central office of the business have the authority for decision-making
Entire business implements it
Centralisation can occur when senior management retains all key decision-making functions for themselves and delegate little or no decision-making authority to others
Decentralisation
Decision-making authority is delegated out to offices from the main or central office
Managers in regional offices have authority for making tactical and operational decisions
Delayering
The process of removing levels of hierarchy in an organisation
Aim is usually to improve a business’ efficiency by making it less bureaucratic
Matrix Structure
Typically exists in contexts where projects and project completion require involvement from people with different expertise from different areas of the organisation
People who work in teams and report to managers with different expertise
May need to report to more than one person when doing their job
Project-Based Organisation (HL)
Similarly to a matrix structure, organises work into projects
Create temporary systems for carrying out different projects
Shamrock Organisation (HL)
Based on the work of Charles Handy, modelled on a shamrock (3-leaf-clover)
Organisational structure with 3 types of employees:
Full-time professional core
Flexible labour force
Contractual group
Management
Ongoing process of planning, organising, commanding, coordinating and controlling the input resources of an organisation
Aim of efficiently and effectively reaching the business’ goals
Leadership
Process of motivating a group or team of people to work towards the goals of a business
“Art” instead of a science
Intangible ability to inspire, lead, coerce or charm through charisma or other intellectual qualities
Autocratic Leadership
When the leader concentrates all or most decision-making in their own hands
Autocratic leaders typically do not seek input from others
Paternalistic Leadership
When the head of an organisation treats employees like they are part of their family
Typically warm and protective of employees, but also expects loyalty and obedience
Democratic Leadership
When the leader regularly seeks input from employees and involves them in decision-making
Intrinsic Motivation
Motivation which comes from the satisfaction of carrying out a particular activity
No external reward is required
Laissez-Faire Leadership
When the leader of an organisation gives employees considerable freedom to make decisions on their own
Situational Leadership
When leaders adapt their leadership style to the nature of the situation, task or work; and the ability and expectations of the people in the organisation
Extrinsic Motivation
Motivation which is derived from external factors
In a business context, typically money
Internal Recruitment (HL)
When a position becomes available at an organisation and the organisation recruits someone who is already working there
Labour Turnover (HL)
The percentage of employees who leave a company during a fixed period of time
Calculated by the ration of the number of an organisation’s employees who leave to the tidal number of employees during that period
Induction
Training that focuses on making a new employee familiar with the way the business functions and the lines of authority
Process includes welcoming new employees and providing training about company procedures and expectations
External Recruitment (HL)
When an organisation recruits employees who are not presently employed at the business
Formative Appraisal (HL)
Occurs during training or work of employees
It is ongoing, continuous and intended to improve employee performance
On-the-Job Training
Involves training employees at tier place of employment during normal working hours
Usually proceeds through mentoring or shadowing
Off-the-Job Training
Involves employees receiving training offsite
The company typically pays for the tuition, which is usually provided by outside parties
Summative Appraisal (HL)
Occurs at the end of the training or a fixed time during a year
Formal, documented evaluation of employees; intended to measure their performance
360-Degree Feedback (HL)
Occurs when an employee receives input from peers, customers, their supervisor, and others with whom the employee interacts
Comprehensive and expensive, thus often only provided to senior management
Self-Appraisal (HL)
Occurs when an employee evaluates their own performance
Part of formative or summative evaluation
Financial Rewards
Rewards that an employer gives to employees, typically as part of an extrinsic motivation scheme, that have a specific monetary value
Salary
Fixed, regular compensation paid to employees on a periodic basis (bi-weekly/monthly)
Typically paid to white-collar workers
Wage
Monetary compensation paid by employees to workers either on a time basis or piece basis
Typically paid to blue-collar workers
Commission
Payment to an employee when they complete a sale
Usually a percentage of the sales value
Performance-Based Pay
Compensation based upon performance of an individual or the entire company
When company goals are exceeded, employees receive compensation in addition to their regular wages or salary
Employee Share Ownership Scheme
Award employees shares in the company
Permit employees to purchase shares of the company below market value
Matches employees’ purchase of shares
Fringe Benefits
Forms of compensation that an employee receives other than their salary
Insurance, company car
Non-Financial Rewards
Rewards that an employer gives to employees, typically as part of an extrinsic motivation scheme, which do not have precise monetary value
Nonetheless valued by employees
Job Rotation
Occurs when employees rotate positions in an organisation, from one division to another
Job Enrichment
When an employee is given additional tasks that are challenging and usually done by managers
Extra tasks lead to professional growth and improve motivation
Job Enlargmenet
Occurs when additional tasks associated with a job are added to the job description
Additional tasks do not necessary require additional skill or are more difficult
Empowerment
Involves giving individuals access to resources and information to do their jobs and give them power to make decisions
Sense of Purpose
Refers to the ability of businesses to connect employees to the aims of the organisation other than profit
Teamwork
Involves working cooperatively within a group of people to achieve a common goal
Culture (HL)
Achievements, arts, attitudes, customs, norms, social institutions and values of a social group
Organisational Culture (HL)
Similar to corporate culture
An organisation’s culture will often reflect some of the cultural practices of its host country
Two organisations operating within the same country could also have different cultures
Power Culture (HL)
Exists when a few individuals retain the essential power in an organisation
Have few roles and procedures
Decision-making tends to be swift
Role Culture (HL)
Exists when employees have clearly defined roles and operate in a highly controlled and precise organisational structure
Usually hierarchical bureaucracies
Task Culture (HL)
Exists when organisational culture focuses on specific problems
Power shifts from person to person as different people are better suited for certain tasks or issues
Person Culture (HL)
Exists when individuals believe themselves to be superior to the organisation
Some professional partnerships such as architecture can be predominantly person cultures
Culture Clash (HL)
When two different cultures come into conflict
Occurs in a business setting when one organisation has to work with another organisation due to inorganic growth and the two organisations have very different cultures
Formal Communication
Refers to the official and formally recognized methods of communication in an organisation
Often documented
Verbal:
Interviews
Meetings
Presentations
Recorded phone calls
Visual:
Presentations
Maps
Notice boards
Videos
Sign language
Written:
Formal E-mails
Reports
Memos
Letters
Press releases
Informal Communication
Refers to the various ways in which information is casually disseminated
Verbal:
Face-to-face communication
Gossiping
Unrecorded phone calls
Visual:
Body language
Gestures
Written:
Informal E-mails
Texts
Blogs
Barriers to Communication
Various impediments that prevent communication form happening when and how it should
Linguistic
Psychological
Structural
Communication styles
Conflict
Cultural differences and language
DIssatisfaction or disinterest
Inability to listen to others
Lack of transparency/trust
Conflict in the Workplace (HL)
Conflict between management and organised groups of workers
Typically over pay, benefits and control of the work
Collective Bargaining (HL)
When employees of an organisation work together when bargaining with management about wages and work conditions
Typically occurs at businesses where employees are unionised and union representatives assist with the bargaining process
Work-to-Rule (HL)
When employees precisely follow the rules of their existing contract
Do the minimum required
Deliberately slows down work or decreases productivity
Strike Action (HL)
When workers stop working because they are dissatisfied with the conditions or compensation
Work stoppage provides leverage against the employer to discuss pay
Threats of Redundancies (HL)
When management threatens to eliminate employment positions if workers do not accept terms in an industrial dispute
When positions are made redundant, the workers filling them would lose their jobs
Changes of Contract (HL)
When an employer threatens to make certain changes to an employment contract, giving them some bargaining power over employees
Only possible in less developed countries
Lockups (HL)
When management locks up the company or factories, preventing workers from entering them
Workers no longer receive any pay, escalating the dispute
Closure (HL)
Permanent or temporary shutting down of a factory, plant or office.
Only effective in countries without stipulating legal conditions and consequences of closure
Conciliation (HL)
Occurs when a third party conciliator mediates between management and labour
Offers ideas that may help both sides reach an agreement
Arbitration (HL)
Occurs when a third-party arbitrator mediates between management and labour
Has the authority to decide how the conflict will be resolved
No-Strike Agreement (HL)
Stipulation in the collective bargaining agreement that, during the lifetime of the contract, workers will not go on strike
Agreed upon in exchange for some concessions from management
Single-Union Agreement (HL)
Workers agree that one union will represent the worker’s interests
Allows for a greater degree of coordination in collective bargaining procedures
