Unit 2: Human resource management Flashcards
Work force planning
is the method used by a business to forecast how many and what type of employees are needed now and then.
Internal source of labor
is when are available within the organization.
External source of labor
is when the employees have to be recruited from outside the organization.
Labor turnover definition and calculation
the proportion of employees leaving within a given period. The labor turnover of an organization is measured by the number of employees leaving the business divided by the entire workforce.
Labour turnover: (Number of employees leaving/ number of employees in the business) x 100
Avoidable causes of employees leaving
- Dissatisfaction with payment
- Poor working environment
- Job dissatisfaction
- Human resources policies
- Lack of facilities
- Dissatisfaction with working time
How can an organization predict its future employee needs?
- Past data
- Productivity of workers
- Management knowledge
- Calculating staff turnover
The costs for the business of a high labour turnover are:
- Recruitment:the business will need to find new employees and the recruitment process has associated costs.
- Loss of productivity:the organisation will lose some of its productive potential while it recruits new employees and brings their skills and efficiency up to the level of the employees who have left.
- Inefficiency, machine breakdown, waste, defective products:while new employees are settling in, it will take time for them to master the job to a high standard.
- Training:the newly recruited employees will need to be trained, which takes time and distracts the current experienced employees from their tasks.
- Reputation of the company:a high labour turnover tarnishes the company’s image and may make it difficult to attract talented employees.
External factors that affect work force planning
- Competition
- Payment
- Legislation
- Technology advancements
- Population and demographics
- Economic situation
- Availability of skills
- Government training and subsidies
Internal factors that affect work force planning
- Structure of the organization
- Budget
- Promotion
- Working practices
Recruitment process
- Job analysis
- Job description
- Person specification
- Job evaluation
- Job advertisement
- Selection
Job analysis
is the study of what the job entails. It provides details of the skills, training and tasks needed to carry out the job.
- Used to select employees and determine their payment, promotion and performance review.
- Company looks at the aspects with others associated with the job and includes: the current post-holder, the employees line manager, the employees subordinates and anyone else whose role interacts with the job in question.
- The information collected is analyzed tasks and skills needed to carry out the job are determined.
- Identifies the duties and appropriate standards and behaviors required.
Job description
Is the simple “word picture” of the job
- A way to communicate with potential candidates of what is expected by them.
- It helps HR decided the qualities and qualifications the successful candidate must have.
- Used to judge whether the appointed employee manages the job well
Some of the elements included are:
- Job title
- Context of the job within the business
- Main tasks, other duties (e.g. part of a team)
- Working environment (e.g. physical, social, length of working day)
- Performance information (e.g. criteria for measuring performance).
Person specification
Is derived from the job analysis and te job description and defines the quantities of the individual needed to fill the vacancy. E.g. qualification, experience, personality, skills.
- Used alongside the job description during the recruitment process.
- Sets out the quality’s, qualification, experience and skills need to do the job.
- Helpful to identify what skills are an essential
Job evaluation
is an assessment of the value of the job in relation in other jobs so that the rewards and remuneration can reflect its value.
- Allows managers to decide the value of the job compared to others. ( not about the performance of the employee in the job)
- Allows organization to differentiate the payments for jobs.
- Factors such as skills, experience, problem solving are given weights according to the importance for the job.
Job advertisement
A job can be advertised internally if company policy is to promote existing employees. If an internal candidate is promoted, a vacancy lower in the hierarchy will appear. If there are no candidates internally, the company may advertise the job externally.
External advertising may be in a variety of places. These include employment agencies, job centers and professional recruitment centers, newspapers and other media, including the internet.
Selection
The process of selecting the most suitable candidate for the job is important and can be broken into several steps.
Why is it so important to select the ‘right’ employee for the job? If the candidate is unsuitable, the organization will have to deal with the employee’s poor performance. There also will be extra costs for additional training and replacement when the employee leaves or is dismissed.
factors that influence the selection process are:
- Size of the business
- The resources available
- The location
- The situation in the labor market
- The organization’s style of management and its culture.
- Junior or senior position
Internal recruitment
means that a job vacancy is filled from within the business by promoting and retraining an existing employee rather than employing externally.
Advantages
• Shorter induction training will be needed as the employee is familiar with the company.
• Existing resources can be used, building on the expertise of existing staff.
• The employer/manager is familiar with the candidate’s abilities and experience.
• It is likely to be less expensive than external recruitment.
• It can be used to motivate other employees who will see possibilities for development.
It retains valuable employees and avoids recruitment costs.
Disadvantages
• The number of applicants is limited to employees in the company.
• There is no opportunity to select from external candidates who may be of better quality.
• Another vacancy is created and will have to be filled.
• Fewer new ideas and innovative solutions are brought into the organization.
• There may be support by internal groups in the organization that causes conflict.
It may cause discontent among employees who have been overlooked for promotion.
External recruitment
Is when the company fills a job vacancy by recruiting an employee from outside the organization, usually because the company needs certain skills that it lacks current employees.
Advantages
• It avoids the risk of creating internal conflicts by promoting existing employees.
• New people will bring new ideas, skills and knowledge.
• It encourages existing staff to complete and update their skills and education.
• It promotes change as part of the organizational culture.
• It offers greater choice and a range of experience in candidates
Disadvantages
• The new employee may not fit well in the organizational culture.
• Existing staff may become demotivated because they feel overlooked.
• It is time consuming and costly.
• Longer periods of induction and training will be required.
• The risk of employing someone unsuitable is greater.
Training
The action of teaching someone
Types of training
On-the-job training
Off the job training
Cognitive methods
Behavioral methods
On-the-job training
is conducted while the employee is preforming work activities, without leaving the work place.
Types of on the job training
Types of on the job training:
1) Induction training:
They start their work in the organization introducing the business and the job role.
The new employee is presented with information about the company, its personnel policies, facilities, the nature of the work, health and safety regulations, and so on. Employees also meet their fellow workers.
- Easier for new employees to adapt to their new environment and mangers can answer their questions.
- Helps employee become familiar with a company’s mission, vision and goals
- Employee becomes more efficient in their work more quickly
Advantages:
⎫ Employee feels valued and respected from the start.
⎫ Know their surroundings and people
⎫ Understand expectations of the organization
Disadvantages:
- Information overload
- Time consuming
- Use of management line
- Bad habits picked up
- Mistakes made
- Unqualified trainers
2) Coaching:
A supervisor guides the employee through the use of equipment or a process.
Often the trainee will perform the process and receive feedback from the supervisor.
Weakness: it does not give the employee a chance to express their own ideas.
3) Mentoring:
Employee is paired with a more experienced worker.
The trainee carries out the job, but discusses problems and how to solve them with the mentor
4) Job rotation:
Employee works at different positions in the company for short periods.
Aim: To give the employee a range of experiences in different departments.
Advantages:
⎫ Job rotation also allows employees to replace each other if an employee falls sick.
⎫ It prevents boredom and improves motivation.
Weakness:
o Can disrupt workflow if the employee is new to the job.
5) Apprenticeship:
Trainees work under the supervision of an expert for a long period, and may also attend college or university regularly
Common in industry’s where it takes a long time to acquire the skills to perform the work.
There will also be classroom training that covers the principles and theory involved.
6) In-house courses or professional development opportunities:
The company may organize its own training courses staffed by its own workers.
For example, in a school that implements a programme for integrating technology into teaching and learning, the school may use some of its own teachers to train others in classroom practice.
7) E-learning:
The company may use multimedia resources to help employees learn new skills.
Employees learn from online materials at their own pace and from any place where there is internet access.
Types of off the job training
1) Lectures and conferences
Involve verbal presentations for a large audience.
It must be interesting enough to motivate the audience and the speaker must be expert in the subject.
2) Vestibule training:
Employees are trained in a prototype environment near the work place.
This might be a specific part of a factory dedicated to training, which replicates working conditions as closely as possible. This method was commonly used in the past when large numbers of workers had to be trained in the skills needed for factory work.
3) Simulations:
Involves specialized equipment that simulates the working environment as closely as possible. The trainee is asked to make decisions after which feedback is provided. It is widely used to train pilots in the aviation industry.
4) Case studies:
Trainees are presented with a case study and related questions that they have to think about. The follow-up is a discussion with the group and the instructor. This type of training is good for promoting decision-making abilities and motivating trainees to participate fully in training.
5) Role playing
Some of the trainees in a group are given roles to play. There are no lines to remember and no rehearsals, but trainees have to react to different situations as they would in real life. Role-playing usually focuses on topics such as employer-employee relations, hiring and firing, appraisal and customer service.
Cognitive training methods
These methods involve theoretical learning.
They include:
- lectures
- demonstrations
- describing how to do the task
- discussions around a specific context provided by the trainer
- computer-based training.
Behavioral training methods
The behavioral methods of training are more about giving employees practical experience.
They include:
- simulations
- business games
- computer-based simulations
- case studies
- role plays.
Appraisal / performance review
An act of assessing something or someone.The performance review may be completed quarterly or annually.
Performance review or performance appraisal is carried out in order to:
♣ help improve the employee’s performance
♣ provide feedback on performance
♣ identify training needs
♣ improve motivation and job satisfaction
♣ identify potential for promotion
♣ decide on any salary increase.
Types of performance appraisal
1) Formative appraisal:the employee receives this type of appraisal on an ongoing basis, even while undergoing training. It is a type of feedback from the line manager on the skills the employee is mastering and the progress being made on a project, especially if modifications are needed.
2) Summative appraisal:when the employee finishes a project or period of training, a summative appraisal may be conducted. It consists ofevaluating the attitudes and information learned from the training programme and determining how the information learned is to be used back on the job.
3) 360-degree appraisal:this method of appraisal uses surveys to gather information about an employee’s performance from different people involved in their work. The employee is rated by supervisors, subordinates and peers. Customer ratings and self-ratings can also be used. The 360-degree appraisal gathers the feedback of many different stakeholders and is usually used when a decision needs to be made about promotion.
4) Self-appraisal:the employee uses the preset criteria to assess their own performance. This helps the employee prepare for the discussion and identify their own needs for professional training. However, the self-appraisal method does not usually replace appraisal by the immediate manager.
Dismissal
Reasons for dismissal
when the employer decides to terminate an employee’s contract.
- Misconduct
- Capability
Common steps in the dismissal process
STEP 1 - Full investigation:
after the misconduct has been established, the situation needs to be investigated and witnesses’ statements gathered. Witness statements relating to a specific incident should provide details of the date and time and a description of the employee’s behaviour.
STEP 2 - Complete check:
the manager should check the company policies and the employment agreement to determine what is considered misconduct that warrants dismissal.
STEP 3 - Provide written evidence:a letter is sent to the employee with details of the allegations, details of any previous misconduct and warnings issued, and the relevant clauses in the employment agreement or company policies that have been breached. The letter should also include the date when there will be a meeting with the employee to discuss the matter and what the consequences might be.
STEP 4 - Meeting with the employee:the meeting gives the employee the chance to present their side of the story. The allegations are discussed as well as the possible consequences if they are upheld.
STEP 5 - Written notice:after a decision has been made, a written notice is sent to the employee. The decision might be that the employee receives a final warning, a first warning (if this is the first incident) or dismissal (if there has been a final warning about an incident in the past). The written notice should contain details about the policies and clauses that have been breached, the decision made and the last day of employment with the organisation in the case of dismissal.
Redundancy
is a lawful reason to dismiss employees when there is insufficient work in the company.
The company simply needs to lose some roles as a result of a recession or reduced demand
Common steps in Redundancy
STEP 1 – Planning the redundancy
The HR department should plan the redundancy carefully and consider whether it is necessary. The reasons should be clearly identified
There are three main types of redundancy:
1. Job redundancy
when the employer’s business, or the part of the business where the employee works, cease to exist.
- Work place redundancy
When the business has moved to a different location. - Employee redundancy:
• because of a reduction in the volume of a particular type of work;
• as a result of reduced demand for the employee, e.g. the work has been outsourced to an independent contractor or other employees can absorb the work duties;
• because of a reorganisation and the installation of new equipment so that fewer employees are needed.
STEP 2 – Identifying alternatives to redundancy
It is important for the employer to identify whether such alternatives exist to avoid future employment discrimination claims in front of the employment tribunal.
Alternatives might include:
- Exploring the availability of volunteers for redundancy
- Looking at employees who meet the retirement requirements
- A recruitment freeze
- A ban on overtime work
- The possibility of job shares and the termination of work for part-time employees
STEP 3 – Prepare a schedule
Once it has been decided that redundancies are necessary, the HR department prepares a redundancy schedule…
- Covers the timescales
- Advance notice that must be given to employees, which ranges from 30 to 90 days depending on the relevant country’s labor law
- It also has to say when employees will first be informed about the need for redundancies.
STEP 4 – inform employees
The employee representative or trade union representative must be informed about the redundancy plan, usually in an informal discussion. The employer must give the reasons for the redundancy
The informal consultation above only applies if a big group of employees is to be made redundant. If only a few employees are affected, the employer should inform the employees directly about the reasons and the payment they will receive. News such as this can have a huge impact on employee morale for those remaining as well as those being made redundant. The employer should communicate the news sensitively.
STEP 5 – redundancy’s
The employer should select those who are to be made redundant using criteria that are transparent and fair.
Things to consider:
- Experience and qualifications
- Performance
- Disciplinary record and available skills for future business tasks.
The employer should ensure that the selection will not result in unlawful discrimination leading to a possible employment discrimination suit. Consideration of absences cannot relate to pregnancy, maternity or other contractual leave.
The employer should also consider the possibility of offering alternative similar employment. If such an offer is made to the employee and is refused, the employee usually loses the right to redundancy payment.
STEP 6 – Individual consultations
The employee must be told about the situation and that they have been selected to be made redundant.
The final decision is confirmed by letter with details of the meetings and discussions. The employee must be told how the redundancy payment has been calculated.
Reasons for changing work patterns and practices
• Globalization-
Emerging economies in Asia (with their cheap and abundant labour force) have made businesses in developed countries less competitive. In order to stay competitive, they have had to cut their costs and this has been done by introducing more flexible work practices, down sizing and outsourcing business functions.
• Flexible work-
Allow the organisation to ensure more flexible labour is available at all times (often 24 hours a day and 7 days a week), which may also increase employee commitment and loyalty to the organisation.
• Improve loyalty and increase productivity
Flexible work patterns allow business organisations to improve customer service, retain their valuable employees, reduce absenteeism and increase productivity
• Attractiveness increases
With flexible work practices, businesses are able to attract more part-time and temporary employees.
• Decreased absenteeism
Various groups of people may be unable to work at certain times. These include: employees with young children, or taking care of the sick or elderly; people with disabilities; people with special interests such as religious observances; students at university; and people who have retired but are available for work on a part-time or temporary basis.
Part time work
Is when employees are contracted to work fewer hours than are required of full-time employees
Temporary employment
is an employment situation where an employee is expected to remain in a position only for a certain period of time.
Flexititme employment
is when employees can choose their hours within the core time that the business is open.
There are several types of flexitime employment:
• Flexible working hours:employees can choose their working hours within the times that the business is open. For example, if the business is open from 7 a.m. to 7 p.m. the employee may choose to work from 7 a.m. to 3 p.m. This arrangement tends to suit people with young children, and students who attend lectures at university.
- Job sharing:two or more employees divide a full-time role between them, for example in a bar or at an office. This can be done daily, weekly or monthly and the job sharers share the payment and the benefits of the job.
- Annual working hours:the employee’s working hours are calculated on an annual basis. This system is usually used for shift workers to reduce and control workload and overtime
Teleworking
is when the employee spends all or part of their work time at a location other than the work place.
There are several types of teleworking:
• Mobile workers such as drivers of delivery trucks and sales representatives: they receive instructions by phone or computer at home or in their vehicles.
• Professionals or managers: they spend working days out of the office on building sites or machine installation sites. They use the phone or computer to communicate with their workplace.
• Specialists or office support staff: they work from home or other remote locations and communicate by phone and computer, e.g. advertising firms in India or teachers of online courses.
Portfolio work
is a type of employment where the employee is not dependent on a company or a client and can offer high professional skills to several companies at the same time.
Migrant workers
A person who is engaged or has been engaged in a remunerated in a State of which he or she is not a national.
Outsourcing
Advantages and Disadvantages
when a company transfers or contracts part of its work to outside suppliers or companies instead of completing it internally.
Advantages
• It saves overhead costs and HR costs.
• It allows the business to focus on its core activities and competences, which are important for its future growth and success.
• It allows for specialisation and economies of scale.
• It reduces the requirement for training of new employees.
The business can hire the best experts for a project.
Disadvantages
• It may take time and effort to find and sign a contract with a suitable company to which to outsource a task or a business function.
• If the outside company has access to confidential information, this can pose a security threat.
There might be difficulties in communication between the business and the outsourced provider, which can delay the completion of projects.
Offshoring
Advantages and Disadvantages
Occurs when a company relocates a manufacturing operation to a foreign country without giving up control or ownership of the operation.
Advantages
• attract professional talent that is rare in the home country;
• make an entry into emerging markets in order to maintain global presence;
• offer consumers a lower price for products and services;
• gain understanding of the local market and be able to see to the local consumers in the foreign country;
• focus on core business functions and competitors;
• benefit from lower corporate taxes in the country where the company chose to offshore.
Disadvantages • Communication and language issues • Cultural and social differences • Displacement of US jobs • Time zone differences Security issues
In-housing
The reverse of outsourcing. Operations moved internally to gain more control.
Reshoring
is the process of bringing back manufacturing facilities that were offered to another country.
Nearshoring
This means relocating manufacturing to locations abroad that are closer to the home country
⎫ Here wages are still lower, creating a cost advantage for the business and helping it to be competitive.
Influence of innovation on the work force practices
Recruitment:Technology has made recruiting more efficient and effective.
Training:. Employees now can be trained more efficiently.
Storage of files: HR staff process considerable amounts of paperwork and the use of electronic imaging has made it possible to store files in an electronic format
Performance review or appraisal:performance reviews of employees have become easier with computer technology. A variety of software programs can be used for examining employees’ performance.
Administrative tasks:information technology has reduced administrative costs by automating routine administrative and compliance functions
