Unit 2 : Human Resource Management Flashcards
What is human resource management?
Management function of deploying and developing people within the organisation to meet the organisations objectives
What does human resource planning consist of?
- Recruitment and selection of new employees
- Training of employees
- Appraisals and performance reviews
- Pay and remuneration reviews
- Employee welfare checks
- Disciplinary procedures
What is human resource planning?
Human resource planning refers to anticipating and meeting the current and future human resource needs of the organisation
What is short term HRP ?
Deals with existing and upcoming human resource demands
What is long term HRP ?
Looks at the human resource needs of the company in the foreseable future
What does HRP use for effective planning?
Historical data and trends - what were the previous needs, how have needs changed now, what are some historical characteristics of the working populations
Sales and income levels - more sales, higher income means more jobs
Labour turnover rate - higher the rate more the employees will have to be constanlty recruited
Demographic characteristics - population of women, different ages and more
Flexibility of workforce
What problems will a business face in the absence of HRP
5 R’s
- Recruitment - more money will be spent on recrutiment, may not meet the staffing needs
- Resources - wasted on personnel problems
- Reservations - decreased motivations, more fear around job security
- Returns - reduced producitvity reduced profits
- Reputation - all impacts overall brand image
What is demography?
It is the stastical study of population characterisitcs and trends
What demographic factors are considered in HMP?
Birth rate
Death Rate
Immigration rate
Percentage of women in the working population
The age division in the working population
What effect does an aging population have on business operations
Changes in consumption patterns - businesses will have to cater to different patterns of consumption
Changes in employment patterns - lower turnover due to higher retainment due to increased age of retirement
Reduced labour mobility - they are resisitant to change
Increased depednets - more pressure on working population
what is labour mobility?
Labour mobility refers to the ability of employees to be flexible in terms of moving location ( geographic mobility) or switching jobs or positions ( occupational mobility)
What does occupational mobility depend on?
Level of skill of worker - super specialised ~ low mobility. Highly skilled ~ high mobility
Age - older people are less mobile
Employment laws and protection regulation
What is an immigrant?
A person who is engaged in a remunerated activity in a country not of their origin
Why do workers immigrate?
Better education and occupational oppurtunities
Better economic oppurtunites - better pay and remuneration
Better standards of living
Looking for political stability
What is flexitime?
Flexitime refers to employee working hours time management method in which employees work for a core period specificed by the org and then work for an additional period which’s time can be decided by them
Adv and disadv of homeworking for employee
Adv
- Less money and time spent on commute
- More job oppurutnities and contuity for employees with dependents
- More autonomy over working hours and more work life balance
Disadv
- More distractions
- social isolation
- heavily dependent on ICT
Adv and disadv of homeworking for employer
Adv
Continuity of work from workers with dependents
Less overhead costs in renting office space and office equipment
Increase flexibility leads to more motivation andincresed productivity
Disadv
Harder to monitor and control performance online
ICT in each employees house can be expensive
Recruitment is harder cause you have to get more responsible hardworking honest employees
What is a gig worker?
A gig worker refers to a freelance worker who works on short-term, flexible, project-based contracts.
Adv of gig economy
Various sources of income
more autonomy and work life balance
Can work for various different employers at times and schedules which work for them
Company doesnt need to spend money on training or remuneration when using gig workers
Disadv of gig economy
No real job security
No remuneration or benefits
Increased work load and more stress
Burn out possible
Company cant ensure good quality work which may or may not satisfy standards. tis risky in terms of corporate imageR
Reasons for resistance to change
Self interest - i only care about myself
Low tolerance of change - i dont want things to change
Misinformation - you said that we would all loose our jobs
Different interpretations - i dont think this will be good for our jobs
Kotters strategies to combat resistance
Education and communication - teaching
Participation and involvement - involving
Facilitation and support - helping
Negotiation and agreement - giving incentives
Manipulation and cooption - tricking
Implict and explicit coercion - threatening
What does the term organisational structure refer to?
The term organisational structure refers to the formal interelationships and arrangements of human resources in an organisation
What are the main facets of org structure
Accountability - who is responsible for what job or task. Managers give accountability to employees
Responsibility - who is in charge of whom and in what capacity
What is delegation?
Delegation refers to the passing on of authority and decision-making power to other.
What is SMARTER delegation
Specific
Measurable
Agreed
Realisitc
Time-bound
Ethical
Recorded
What is the impact of SMARTER delegation?
Managers can focus on more important and organisationally focused tasks while still developing the skills of their employees
Employees will feel involved and like they have some authority and competence, which could boost their motivation and productivity.
What does the term span of control refer to?
The term span of control refers to the number of people who are directly accountable to a managers or senior employee
What is wide SOC?
more people answer to one managers
bigger teams
lesser levels
- less costly
- less effective communication, slow decision making
- faster top-down communication
What is a narrow SOC?
smaller teams
less people answering to one managers
more layers of hierarchy
- more costly ~ more managerial positions
- better cohesiveness and team work
- tighter control and monitoring possible
Factors deciding degree of control?
M - manager ~experienced or new, skilled or not
Monitoring Organisational culture - more tight control and monitoring ~ narrow SOC
looser control more demoractic involvement ~ wide SOC
Subordinates
Task - urgent or not, creative or not
What are levels of hierarcy?
Organisation structure ccording of ranking system where each level has a different position with its associated level of power and authority.
Advantages of levels of hierarcy?
Shows clear lines of authority - who reports to who
Makes departments and teams - creates sense of belonging
Disadvantages of levels of hierarcy?
Departmentalisation may lead to isolation
can be inflexible and resistant to external change
What is the chain of command?
The formal line of authority from which instructions and commands are passed from top to down
What is bureaucracy?
The execution of business operations acording to proper administrative and the formal rules and regulations of the organisations
What is centralisation?
An organisational strucutre where the decision making power and authority is concentrated in the hands of few people
Adv and Disadv of centralisation
Adv
Better control of work
Better sense of direction
Quicker decision making
Disadv
Increased work load on few senior employees
Reduced employee motivation
More time taken due to number of decisions that need to be made
What is decentralisation?
An organisational strucutre where the authority and decision making power is distributed across different levels of hierarchy.
Adv and Disadv of decentralisation
Adv
More creative input from employees - involvement can lead to creative and new ideas
Increase motivation due to involvement
Effective and quick decision making possible due to delegation
Disadv
Dilution of power and authority of managers
Possibility of mistakes by employees and mangers
Costly - delegation can be costly - managerial positions can be costly
Factors deciding organisational structure?
Corporate culture - more creative emphasis, more teamwork ~ decentralised. mass production - centralised
Organisation size - larger the org more the need of decentralisation
Managerial attitudes - control freaks - centralised. Looser reins - decentralisation
Importance of decision - very important and risky - centralized. Very creative base and not as time sensitive - decentralised
What is delayering?
The removal of a layer of hierarchy from the organisation strucutre to flatter the OS and widen the span of control
Adv and Disadv of delayering
Adv
- money saved by cutting a managerial position
- more oppurtunities for delegation
- quicker decision making
Disadv
- anxiety around redundancies
- increased work load for employees
- Slower decision making
What is a matrix strucutre?
A type of OS where employees of different departments work together on a project basis
Adv and Disadv of Matrix Structure
Adv
- Breaking traditional communication barriers, promoting teamwork between dept
- Sharing of ideas and skills across departments
- Effective use of skill sets in different contexts
Disadv
- increased work load - both dept work and project work
- confusing - report to 2 managers
- Time consuming
What is an organisation chart?
A diagrammatic representations of the hierarchal organisation structure of a firm showing its levels of hierarchy, span of control and more
What is management ?
It is the process of problem solving and working towards achieving organisational objectives with the effective use of human and non human resources of the organisatin
Stages of leadership
Planning - tactical and strategic objectives
Organising - delegation
Commnanding - providing instructions
Controlling - monitoring and keeping them in check
Cohesiveness - harmony between departments
What is leadership?
Leadership refers to the process of influencing, invigorating, and inspiring workers. Leaders focus on long term ogoals, are more radical and risk taking, and set a corporate culture of hope and change
What is a leadership style>
the ways in which decision makers reveal the behaviour
What is autocratic leadership
- Authority and control lies in the hands of the leader
- No delegation
- Clear chain of command
Makes sense when : leader is very experienced and suboardinates are not
task is important and time sensitive
Drawbacks : resentments
lack of involvment can lead to lack of motivation
overdependence on leader
What is paternalisitic leadership ?
- Father like guidance and advisory leadership style
- exceptional organisational skills
- acts in their best interests
- close supervision
- builds trust within team
Negatvie - treats them like children and controls them
Positive - thinks of them as highly skilled and guides and develops them
WORKS IN COUNTRIES WITH HIGH RESPECT FOR LEADERS AND IN A TALLER OS
What is democractic leadership?
- Involves employees in the decision making process
- Delegates task and involves them
- Trusts them with work
- Gives them autonomy
- Decentralised
- Boost morale and satisfaction
Works when - employees are skilled
Work is creative and not time sensitive
Drawbacks - not appropriate for a large workforce, delays decision making
What is laissez faire/delegative leadership
leaders have minimal input
give clear instructions and expectations to workers and allow workers to have autonomy over their own process
Appropriate when : employees are skilled
Work is creative and not time sensitive
leader cannot be around all the time
Drawbacks - there could be miscommunication
might encourage slack and complacency
absence of support and guidance
Situational Leadership?
Depends.
CLOT
culture
Leader
Organisation strucutre
Task
Factors affecting choice of style
Leader
Subordinates
Culture
Org size
Task
What is motivation?
Motivation refers to the desire, effort and passion to achieve something. willingness to complete a task or jon wth intent or purpose
Benefits of increased motivation
boosts morale
reduced interoffice conflict
reduced turnover
reduves absenteeism rates
corporate image is improved
What does Taylors theory of scientific management say?
Money is the number one and best motivator
- All that matters to employees in financial remuneration
- Producitivty can be be improved by setting precise specific goals related to pay
- Managers responsibility to set the expectations
- division of labour
- differentiated piecework - work till standard and then get a bonus
Maslows theory
Physiological - good working conditions, healthy air water food, money pay
Security - job security , paid leave predictability
Social - teamwork, departments
Esteem - promotion recognition
Self actualisation - working because they enjoyed the work
Criticism
- levels are hard to measure
- not applicable to everyone
Herzberg
two factor
hygiene - need to be there
motivators- intellectual growth
- enlargement ~ more work, more interesting work
- enrichment ~ more complex work to develop skills
empowerment
Salary
Financial reward fixed at an annual rate but paid on a regular basis
Doesnt encourage hard work
cannot reward creativity
Piece rate
Payment according to output
incentivises hard work but may lead to quant over quality
Commission
Pays workers a fixed percentage of sales or output
might lead to aggressive sales
not always constant or steady
PRP
Rewards employees who meet output related goal with
pay rise
bonus
gratuity
creates a culture of hard work
but can encourage unhealthy competition
doesnt encourage teamwork
non financial motivators are not there
Profit related pay
Payed according to profit made by firm
Surplus
but usually goes to senior employees
used to strengthen firm loyalty
helps promote team work
Employee share schemes
Giving shares in the manner of remuneration
deosnt work for everyone
Fringe benefits
financial perks
insurance, memberships, retirement, education
Job enrichment
Making a job more interesting or challenging
more responsibilites
greater autonomy and authority
psychological skill growth
increased workload
more money spent on training
jobs shouldnt be too challenging
Job rotation
Multiple jobs with multiskilling
makes it interesting
prevents boredom
labour mobility
reduced losses due to absenteeism
Job enlargement
broadening the number of tasks an employee performs
reduces montony
extra work demoralising
Empowerment
Delegation
Worker Involvement
Training and Development
What is operations management?
Operations management is concerned with providing the right goods and right services with the right quality in the right quantity in a cost-effective and timely manner
What is the role of production?
To add value to the factors of production and turn them into goods and services in a cost effective and efficient way
Define operation methods
Refers to the specific methods by which production, the process of turning input into output by adding value, takes place
What is job production?
Refers to an operation method in which each product is created in a personalised, individual manner catering to the clients needs and wants - from start to finish
Adv and Disadv of job production?
Advantages
- Motivation - employees are motivated as they are involed and get to work and use their skills on each product
- Quality is high due to highly skilled labour
- Flexibility of product is a marketing bonus. can cater to needs of client
- Uniqueness of production of skill can be a USP
- A variety of choices offered to the client
Disdvantages
- Labour intensive - expensive have to give attractive remuneration pakages and training is expensive
- Too much time between order and payment
- Not regular orders
- Few economies of scale oppurtunities
Batch production
Operation method which simultaenously produces a number of identical products
Advantages of batch production
Adv
Economies of scale - technical and purchasing
Variety of products can be made in batches still at a low cost
Reduces the risk of creating only one product a time
Disadv
Storage space. money lost in inventroy
Labour can get boring and repetitive
Capital intensive and expensive
Inflexible
Mass production
operation method of producing homogenous standardised products in large amounts
Flow production
A type of mass production that has continuous and progressive processes in sequence to assemble a standardised product
Adv and Disadv of mass/flow production
Adv
Large volumes of output are possible
Cost effect - technical EOS
Standardised products (quality maintained) specialised mechines ( increased productitivty)
Low labour costs
Diadv
- No customisation cause of standardisation
- Work is montonous or boring for workers
- Flaws in system or products can lead to large scale losses. inflexible
- Capital intensive high set up costs
Mass customisation
combination of different methods
flexible manufacturing of mass produce products to meet individual customer demands and needs
What does the term location refer to?
The term location refers to the geographical position of an organisation, i.e where it is sited
How does the availability, suitability and cost of land affect decision making for location?
Avai : City centres - more demand less supply thereofre vey expensive
Outside of city, more space readily available and at lower costs
Suitability - city centres close to foot traffic, helps raise brand awareness, clustering
- dangerous products outside city
- agricultural products out of city
- products where manufacturing and selling happens seperately
Cost - city more expensive
rural - less expensive
How does the availability, suitability and cost of labour affect decision making for location?
city centre is close to accesible labour, specialist schools universities housing
More expensive, higher cost of living
Mass production - take rural lesser skilled workers
if using highly educated skilled workers be ready to pay them more
How does Proximity to the market matter?
Weight increasing industries , i.e product who gain weight through their prodcution process should be located close to the market to reduce transportation costs of the heavier finished product.
When is proxomity to raw materials more appropriate?
Weight decreasing industries
If raw materials weight > finished product weight
then save on transportation costs in transporting raw materials
Name the qualitative reasons to consider when choosing location
Management preferences
- personal reasons
- familiarity
- caring for welfare of employees
- insinct
Local knowledge
- local knowledge lends a competitive edge
Political stability
Looking for political harmony, no corruption, a good law and order system, a steady exchange rate, good taxation rate
How do infrastrucutre networks impact a location decision ?
The quality of infrastucture matters because it affects quality of manufacturing
- Transportation networks ~ decide how efficient transport of raw materials and of finished products are. decide how easily employees can access the office
- Communication networks - telephone networks, internet networks ease of communication
- Support networks - essential services , fuel, water, electricity
What is clustering ?
Clustering refers to a location strategy in which businesses locate themselves around other businesses of the same type, either manufacturing or retail, to take advantage of common customers or raw materials.
What is outsourcing?
refers to a way of reoganising prodution by transfering non core internal activities to an external organisation to reduce costs AND INCREASE PRODUCTIVITY
What is a subcontracter?
A subcontracter refers to an external organisation that takes the non-core activites of another organisation
Advantages of outsourcing?
- Use of specialists ensures high quality work
- Subcontracter contracts are usually bid on so the price gets very competitive - convenient for organisation
- They can focus on core activites that actually matter
- Reduces labour costs because you dont have to pay subcontracters remuneration
Disadvantages of outsourcing?
Subcontracters may cut corners and perform the taks unethically - which could have an immense negative effect on the organisation
- Trusting someone external with a task can be risky and it may not meet the quality standards
- Monitoring outsourced work can be time consuming and expensive
- Can cause redundancies and anxiety about job security
What is offshoring?
Refers to a type of ooutsorcing where business functions are relocated overseas
Adv and Disadv of offshoring?
Adv
- Can avoid protectionist trade policies
- Can avoid steep taxation
- Creates job oppurtunitys in host country
Disadv
- Subject to changes in external environment
- Might have to compete with domestic companies
What is insourcing?
Insourcing refers to a way of reorganising production in which a non-core activity that would otherwise have outsourced is handled or executed internally using the companies own resources
What could have led them to insource?
- Bad outsourcing experience
- Outsourcing is not cost effective
What is reshoring and why may it be done?
Reshoring refers to relocating a orgs operations back to its home country
Why?
Avoid political unstability
Product recalls and customer feedback
To reduce transportation costs
Create jobs in host country
To prevent disruptions due to other events ( COVID)
