Unit 2: Human Resources Flashcards
human resource planning
management process of anticipating and meeting an organization´s current and future staffing needs
labour turnover
measures the rate of change in human resources within an organization, per period of time
number of staff leaving per year / average number of staff x 100
causes of high labour turnover
better pay and working conditions in rival companies
unhappy and discontented workforce
staff being inadequately trained - feeling incompetent and demotivated
internal and external factors that influence HR planning
demographic changes
changes in labour mobility
new communication technologies
demographic changes
development and trends in the population that influence workforce planning
ageing population - increase in the average age of the population
- reduced labour mobility - lower labour productivity levels - changing consumption patterns
changes in labour mobility
occupational mobility - flexibility and ability of workers to moving from one job to another (willingness to switch)
geographical mobility - the extent to which workers are able and willing to move to another area for employment purposes
new communication technologies
easier to communicate
online training courses
can work at home
reduce the costs of business meetings - video calls
steps in recruitment
identify the vacancy that needs filling
create a job description and person specification
advertise the post to attract candidates
review applications and draw up a shortlist
make the selection using appropriate methods
satisfy any conditions and sign contracts; inform those unsuccessful
internal recruitment
hiring of people from within the organization to fill a vacancy
Advantages:
- lower risks
- lower costs of recruitment
- faster
- strengthens the worker´s loyalty
- no need for induction
Disadvantages:
- “dead wood” - no new ideas
- can create internal competition and conflict
- another vacancy is created - have to hire another 1
- less candidates to choose from
- external candidates may be more skilled
external recruitment
hiring of people from outside the organization
requires job advertising, interviews, specialists, training, induction…
types of training
training is important as it improves the productivity, boosts motivation and reduces labour turnover
on the job
off the job
cognitive training
behavioural training
on the job training
conducted in the workplace whilst the employee is working
induction - help new staff get acquainted with the firm
mentoring - adviser providing support to less experienced colleagues
Advantages:
- cheap
- relevant
- fewer disruptions and can help build better relationships (team work)
Disadvantages:
- might pick up bad working habits from trainer
- internal staff may lack the necessary skills
- reduces productivity (trainer is taking time off work)
off the job training
training conducted by specialists, away from the workplace
day release - employees take time off work to attend training
distance learning - employees undertake self-study to improve their skills
seminars - staff attend a lecture or meeting as part of their training
Advantages:
- wider range of skills can be obtained
- staff learn from outside specialists
- employees are not distracted in workplace
Disadvantages:
- more expensive
- lost productivity
- employees can take these new skills and leave to a better company
cognitive training
exercising and developing the mental skills of employees to improve performance and productivity
behavioural training
seeks to change or improve the patterns of behaviour at work
eg. anger or stress management, conflict resolution…
appraisals
formal assessment of an employee´s performance with reference to the roles and responsibilities set out in the job description
formative appraisal
summative appraisal
360 degree feedback
self appraisal
formative appraisal
takes place on an on-going basis
identifies an employee´s strengths and weaknesses or progress made
summative appraisal
takes place periodically, conducted by the line manager, summarizes the personal performance and achievements of the apraisee
360 degree feedback
system that involves getting comments and feedback from various different people
self-appraisal
employees evaluate themselves against a predetermined set of criteria
reflect on: strengths, weaknesses and improvements necessary
dismissal
termination of a worker´s employment due to their incompetence or breach of the employment contract
redundancy
when a business can no longer afford to hire a certain number of workers OR because the job ceases to exist (their services are no longer needed)
teleworking
employees working away from the office by using electronic forms of communication
flexitime
work schedule that requires employees to work a certain number of hours, but they can choose when they want to work
migration for work
employees move to other countries in search of employment opportunities
this has increased due to globalization + technologies
part time
employees work fewer hours, they have shifts
outsourcing
use of external providers for certain non-core business activities
eg. cleaning, catering and security
offshoring
relocating business functions or activities abroad
lower production costs by using cheaper labour in less economically developed countries (India, Vietnam..)
re-shoring
transfer and relocation of a firm´s overseas operations back to its country of origin due to cost or competitive advantages
delegation
process of passing down of control and authority to subordinates
span of control
number of subordinates who are directly accountable to a manager
levels of hierarchy
refers to the management structure of an organization in terms of layers of formal authority
chain of command
formal line of authority through which orders or decisions are passed down from top to bottom of hierarchy
instructions and commands flow downwards
accountability flows upwards
bureaucracy
authority and decision making are centralized
culture focused on rules and standards
discourages workers + reduces flexibility – inefficiencies and slower decision making
centralization
when decision making is in the hands of a very small number of people at the top of the hierarchical structure
decentralization
structure with shared decision-making authority and responsibility
de-layering
process of removing one or more layers in the organizational hierarchy to make the structure flatter
types of organizational charts
flat tall hierarchical organization by product organization by function organization by region
flat structure
few layers of management
- wide span of control - pressure + difficult to manage
- suitable when workers can organize their own work effectively
- shorter chain of command - improves communication
- culture of relationships is usually open and informal
tall structure
many layers of management - roles and responsibilities are more specialized
- narrow span of control
- clear chains of command
- long chains of command - miscommunication
- motivational for workers at the bottom (promotions)
hierarchical
many levels of responsibility
rigid and bureaucratic
organization by product
suitable for large businesses that have a broad product line
each product has its won internal structure
organization by function
arranges individuals by specific functions performed
most common structure
eg. marketing, production and finance
organization by region
establishing a organizational structure according to different geographical locations
support logistical demands and differences in different locations
project based organization
human resources are organized around particular projects
shamrock organization
non-essential work should be contracted out to specialists
- professional core
- contingent workforce
- outsourced vendors
key functions of management
according to Henri Fayol
planning organizing commanding coordinating controlling
task-oriented rather than people-oriented
manager vs leader
leaders have a long term vision
managers have a short term vision
leaders deal with what and why questions
managers deal with how and when questions
leaders inspire and motivate
managers are listened to because of authority
leadership styles
autocratic paternalistic democratic laissez-faire situational
motivation theorists are
Taylor Maslow Herzberg Adams Pink
Taylor
scientific management
- measurement of what can be done and how
- monitoring to ensure targets are met
- control by using rigorous analysis of the firm’s inputs, outputs and costs
piece rate - payment system which rewards workers based on their productivity
Maslow
hierarchy of needs
- self-actualization
- esteem
- love/belonging
- safety
- physiological
Herzberg
two factor theory - hygiene and motivators
salary isn’t a motivator – expectation
- lower level needs - hygiene factors (physical needs)
- prevent dissatisfaction - higher level needs - motivators (psychological needs)
- motivate workers
Adams
equity theory
the effort they put into a job should be reflected in what they get out of it
if inputs are fairly rewarded by outputs - motivation is high
Pink
drive
argues that extrinsic factors no longer work
autonomy - control their work + accountable
mastery - improve on something they love
purpose - gives context to autonomy and mastery
types of financial rewards
salary wages (time or piece rate) commission profit-related pay performance-related pay employee share ownership schemes fringe payments
types of non-financial rewards
job enrichment job rotation job enlargement empowerment purpose teamwork
corporate culture
refers to the sets of values, norms and beliefs in an organization
cultural norm
dominant culture in an organization
cultural quotient
the ability of workers to understand other cultures to avoid misunderstandings
culture gap
when the actual culture of the organization doesn’t correspond with the desired culture
types of organizational culture
power culture role culture task culture person culture entrepreneurial culture inert culture adaptive culture
employee representatives
individuals or organizations who act as a voice of the workforce
eg. trade unions
employer representatives
individuals or organizations that represent the senior management team in the collective bargaining process
methods used by employees
collective bargaining slow-downs / go-slows work-to-rule overtime bans strike action
methods used by employers
collective bargaining
threat of redundancies
changes of contract
closure and lock-outs
approaches to conflict resolution
conciliation and arbitration
employee participation and industrial democracy
no-strike agreement
single-union agreement
reasons for resistance to change in the workplace
self-interest
low tolerance
misinformation
different interpretation of circumstances
HR strategies for reducing the impact of change and the resistance to change
getting agreement / ownership
planning and timing the change
communicating the change