Unit 4 (HR) Flashcards
HR planning
identifying how many and what kind of employees are needed. Looks at how employees will be:
- Recruited / Used
- Developed / Trained
- Motivated, managed, led
Staff costs
Large proportion of business costs. Careful planning and objective monitoring of employee performance are key elements of effective financial and operational control.
Labour productivity
Measure of output per employee over period of time. Aim is to increase level of productivity to improve competitvness
Absenteesim
Measure of porportion of staff absent from work during period of time. High levels can cause sick pay and high costs of temporary staff, output decreases, staff may demotivated if cover for absent workers
What are internal factors that affect HR planning
Business objective / strategy, financial situation, organisational structure, labour relations, organisational culture
What are external factors that affect HR planning
Economic conditions, labour market, technological advancements, legal and regulary envionrment, social and cultural factors, political factors, industry specific factors, competitive landscape
Flexitime
allows employees to work a specific amount of hours of work at times of their own choosing
Gig economy
Freelance or contract work, digital platforms made it easier to identify opportunites, workers have flexibilty and autonomy in choosing projects / working hours.
Job sharing
2 or more employees working at different times to complete tasks for one job. Provides employees with flexibiity whilst employer benefits from completed tasks
Downshifting
Senior employee relinquishing their position to move to lower paid position with fewer responsibilites. Can occur in changes of career or worker approaches retirement
Teleworking
Working at home or other location from traditional workplace. Workers may attend workplace from time to time or other essential purposes
Reasons for resistance to change
Fear of the unknown, loss of control, disruption of routine, lack of trust, lack of communication / inclusion, percieved losses
Change management strategies
Approaches to successfuly navigate and implement chagne to a business
1) Identify change and communicate clearly
2) Plan / resource the change
3) Provide strong leadership
4) Engage stakeholders
5) Train / develop
6) Appoint change agents
7) Provide feedback
8) Celebrate success
Hierarchy
Levels of authority within organisation
- Rankings of positions top to bottom
- Higher postion -> Higher authority
- Top level, middle management, lower level employees
Bureaucracy
Organisation with many levels of authority, can make decision making confusing
Chain of command
Formal line of authority that flows from top to bottom, defines who reports to whom, establishes clear communicational channel to maintain accountability within organisation
Span of control
Number of employees that manager / supervisor can manage
- Narrow: more layers of managemetn
- Wider: fewere layers of managemnet
Centralised vs decentralised structure
Centralised: Decision making is concentrated at top of the organisation with senior management making most of the decisiosn
Decentralised: Distributed throughout the organisation with lower levels of employee having more delegated decision making power
Matrix structure
Grouped based on functional expertise, and specific projects or products worked on. Typically have functional manager, and project / product manager.
Tall vs flat organizational structure
Tall: Multiple layers of management, centralised decision making, long chain of command, narrow span of control
Flat: Fewer levels of management, decentralised decisoin making, short chain of command, wide span of control
Adv / dis of tall organisational structure
Adv:
- Clear hiearchy of authority
- Promotes specialisation and expertise wtihin each function
- Opportunites for career advancement
-
Dis:
- Communication barriers between upper / lower levels of management
- Decision making is slow as info passes through multiple layers
- Burearacy and excessive layers of management
adv / dis of flat organisational structure
Adv:
- culture of collaboration and open communication
- decision making faster
- creativity and innovation
Dis:
- Role ambguity and lack of hierarchy
- Doesn’t provide opportunies for career advancement
- requires employees to take on multiple roles leading to burnout
Hierarchal structure by product
Built around specific projects or products
Adv of structure by product
- Cross functional collaboration
- Specialisation and expertise within functional area
- Effecient allocaiton of resources and coordination of multiple projects
Dis of structure by product
- Conflict over priorites and resources
- confusion over roles and responsibilities
- high degree of communication and coordination which can be challenging
Hierarchal structure by function
Arranged into differnet function that complete specific function.
- Arranged according to expertise, appropriate skills, experience and qualification to area of business
- However may only focus on own area of responsibility and lose touch with business objectives as a whole
External factors that can affect organisational structure
When change in external factors, may need reassess current structure. Adaptive organisation will change structure in response to external factors or build on organisation with able to handle external changes
- Market uncertainty
- Rapid technological advancements
- Global expansion
- Competitive pressures
Leadership styles
different approaches to leading / managing a team, reflects behaviours / attitudes of a leader towards team members and influences organisational culture, productivity and performacne.
Autocratic leadership
Leader with absolute control and power over businses
- Makes decisions without seeking input from others
- Expects strict obedience and compliance from subordinates
- Sets direction / goals of business
- Doesn’t consider opinions, ideas, expertise of team members
- Decisions not open to discussion or debate
Difference between leaders vs managers
- Vision vs execution
- Influence vs control
- People vs processes
- Long term vs short term
- Creativity vs effeciency
Adv / dis of autocratic leadership
Adv:
- Decision making less time consuming
- Suitable for unskilled worker / crisis situation
Dis:
- No feedback from employees
- Turnover, lowers the job
- Employees less motivated can lead to more absenteeism
Paternalistic management
Leader with fatherly role to subordiantes acting as protective / authoritarian manner
- makes decision for employees whilst showing concern for well being and development of subordinates
- Responsibilty for welfare of employees by providing guidance, support, and resources to ensure success
Adv / dis of paternalitic management
Adv:
- Sense of security, support among employees, and increase employee to reduce staff turnover
Dis:
- Percieved as controlling, limiting creativity and innovation
- Creates dependency on leader restricting personal growth and development along employees
Democratic leadership
- Actively involves employees to encourage discussion: consultation, collaboration, delegation and teamwork common features of democratic leadership.
- Most effective in organisation with skilled, experienced, and creative employees
Adv of democratic leadership
- Encourages participation / involvement of employees in decision making process. Can lead to higher employee engagement and job satisfcation
- Encourages innovation and creativity within business
- More comprehensive problem solving and decision making
Dis of democratic leadership
- Can be time consuming
- Conflicts / disagreements may arise with differnet viewpoints
- May result in compromise on quality of decisoins as popular opnions may overshadow expert knowledge
lassez faire leadership
- Minimal role in managing team, provides little guidance direction or supervsiion allowing autonomy and freedom in making decisoisn and completing tasks.
- Appropriate for skilled and self motivated team
Adv of lassiez faire leadership
- Encourage creativity and innovation by giving employees freedom to explore new ideas
- Empowered through own autonomy and onwership over work which can enhance job satisfaction, motivation, and sense of responsibity
- Greater flexibilty in adapting to changing circumstances
dis of lasseiz faire leadership
- Can lead to employees struggling with decision making which can lead to ineffeciency and lack of coordination
- Risk of inconsistency in quality of work leading to lack of cohesion and potential conflicts
- Difficult to monitor progress, identify issues, and ensure goals are met which can decrease productivity
Situational leadership
Adapting leadership style to specific situation and needs of employees. Leaders must asssess readiness of employees to perform particular tasks and achieve specific goal
Taylor’s scientific management
Breaking down of complex tasks into simpler ones which standarises work processes and provides worker with clear instructions and training to achieve maximum effeciency
adv of taylors scientific management
- Increase effeciency which lowers costs
- Standarises work procedure
- Specialisation of labour
- Clear hiearchy and line of authority
- Improved training and development, better performance / job satisfaction
dis of taylors scientific management
- Overemphasis on effeciency, can reduce worker satisfaction due to lack of creativity
- Workers may disengage
- Limited applicability as wont work with roles with high levels of creativity, problem skills
- Potential for exploitation
Maslow’s hierarchy of needs
Outline 5 tiers of human needs that must be met by individuals to reach their full potential: Physiological, safety, social, esteem, self actualization
adv of maslow
- Higher employee satisfaction to increase productivity and lower turnover rates
- increased motivation through alignment of wants in incentives
- Improved employee performance
dis of maslow
- One level of needs wont fit all workers, need to tailor approach to meet needs
- Expensive
- Time consuming
Herzberg theory of motivation
2 types of factors that affect employee motivation and job satisfaction
- hygiene factors: elements that dont lead to job satisfaction but absencse causes dissatisfaction which decreases motivation
- motivators: elements that lead to job satisfaction and motivation
ways to use hygiene factors
- Pay fair wages / salary
- offer good working conditions
- employment contract with job security
ways to use motivator factors
- build recognition and rewards culture
- offer opportunity for growth / development
- provide challenging work which requires problem solving
Mccelland acquired needs theory
Focuses on needs of individuals that develop over time, explains how needs influence motivation and behaviour
- achievement: Achieve challenging tasks / personal goals
- affiliation: form positive relationships, happy within workplace
- power: desire to influence / control, bring the best out in others/team
adv of mccleland?
- Easy to understand / apply
- recognises varying needs / motivations
- based on extensive researchd
dis of mccleland?
- doesn’t account for complexity of human behaviour
- oversimply workers’ motivations
- limited evidence that support specific needs
Deci and ryans self determination theory
Describes why people do what they do and understands human motivation and factors that drive individuals to engage in activites:
- autonomy: have control and make choices
- competence: feel capable and effective in what they do
- relatdness: connect with others and feel sense of belonging
adv of deci and ryan
- Adaptability: recognise not all individuals motivated in same way
- applied to differnet situations: used widely in different industries
- backed by research
- can lead to greater wellbeing and sustained engagement of employees
- crucial for intinsic motivation allows people to feel valued
dis of deci and ryan
- potential western culture bias
- overemphasis on intrinsic motivation
- lack of clear measurment tools
adam equity theory
How people percieve and react to fairness in personal and working relationships. Individuals strive to maintain sense of fairness and balance by comparing inputs to outputs as employees want this ratio to be fair
- under rewarded: individuals feel they are giving more than they are recieving which can lead to frustration / dissatisfaction
- equity: balance between inputs / outputs as they satisfied / content
- over rewarded; feel they are recieving more than they are giving which can lead to discomfort and indebtness / guilt
adv of adam
- easy to understand
- recognise individual differences
- highlights importance of social comparisons
dis of adam
- subjective
- ignores other influences on behaviour
- over simplificationwa
ways to restore equity in workplace
Employees can:
- renegotiate terms and conditiosn of employment
- adjust contriubtions
- seek new opportunites that are more balanced in inputs / outputs
businesses can:
- communicate better in recruitment and promotion policies
- clarify pay / reward system
- provide training opportunities
vroom expectancy theory
Explains why people make choices and behave in specific ways
- expectancy: belief that effort leads to performance
- instrumentatlity: believe that performance leads to outcomes
- valence: value or desirability of outcomes
adv of vroom
- takes into account personal differences
- clear / logical framework by breaking down into 3 key components
- emphaiss on importance of involvign employees
dis of vroom
- subjective beliefs so may not always accurately predit
- perceptions and values can vary
- Framework rather than precise predictions
Labour turnover
Measure of porportion of employees leaving business during period of time
Labour turnover formula
Number of staff leaving / total number of staff x 100
Internal factors that affect labour turnover
- Poor management
- poor recruitment and selection
- Lower wage levels compared to competitors
external factors that affect labour turnover
- attracted to other employment opportunites
- improved transport links that offer workers access to wide geographical spread
problems / opportunities of high labour turnover
problems
- increased recruitment costs
- increased training costs
- lower productivity for new workoers
opportunities
- workers with existing skills recruited to reduce training
- new ideas and creativity introduced
- new perspective can improve business performance
labour retention
porportion of employees remaining with business during specific time period
labour retetnion formula
number of staff remaining / total number of staff x 100
Employee appraisal
- process where manager or supervisor assess employee’s job performance
- measured against tasks / responsibilities in job description
- constructive feedback given with goals and development opportunities
adv of employee appraisal
- constructive feedback on employee performance
- performance improvement for employees that need training, development, support which helps self improvement
- recognition and motivation to reward employees and acknolwedge hard work
- decision making in promotion, salary and bonus and identified high potential employees
dis of employee appraisal
- subjectivity as influenced by personal biases and different evaluation methods
- anxiety and stress as employees may fear feedback, can lead to demotivation and performance anxiety
- time consuming
- inaccuracies as may lack objectivity and fails to capture full range of employees contributions
Formative appraisal
Gathers ongoing information and feedback on employee performance as manager and employee will have regular performance for prompt adjustments
- ongoing feedback
- improvement orientated
- no or low stakes
- timely feedback
- employee involvement
Summative appraisal
typically yearly or end of work assignment to assess overall performance and achievements and used to make decisions on pay or promotion
- endpoint asessement
- evaluation of achievement
- high stakes
-
360 degree feedback
feedback from within and outside of business from multiple stakeholders with contact with employee gathered through internal / external sources (surveys, questionnaires) and data anonymised. comprehensive assesseement of employee strengths and weakness
- Performance appraisal
- personal development
- leadership / management development
- career development
Self appraisal
Evaluates own performance and achievements used in part of performance management process and alongside evaluations from managers to provide comprehensive view
- achievements
- strengths
- areas for improvement
- goals / development plans
- self reflection
Recruitment
- process of attracting and identifying job candidates suitable for particular role.
- includes advertising, job fairs, outreach and referrals and goal is to create pool of qualified candidates
Selection
process of choosing best candidate through reviewing CVs and interviews and to hire most suitable candidate for a job
Recruitment / selection process
1) Define the role - job specification, job description
2) Determine best source of candidates - internal, external or both
3) advertise - social media, specialists recruitment portals but cost more
4) recieve application - collect information from candidates and shortlist for interview
5) Selection process - use appropriate method to identify best candidate
Internal recruitment
Promotion or redeployment of staff to fill positions
advertised through staff boards, newsletters, and communications
adv of internal recruitment
- Familar with business culture / process
- Good understanding of candidate’s strengths, weaknesses, and skills which is less risky
- opportunities to progress which can be motivating for employees
- Cheaper and quicker
dis of internal recruitment
- conflict or resentment - may affect motivation / working relationships
- further vacancy created - more recruitment necessary
- limited number of suitable applicants
- missed opportunity for new ideas, experience or skills
External recruitment
Looks outside of busines to find suitable candidate
new ideas, experience and ideas introduced
expensive and can be difficult to target desired audience
methods of external recruitment
- referral / personal recommendation
- online / newspaper advertising
- specialists trade publications
- employment agencies
- headhunting
- job centres
- career fairs
Financial rewards
payments to employees in return for labour or improved performance
Piecework
paid according to no. of units and used in manufacturing or assembly lines which encourages workers to increase output.
Commission
Pecentage of sales revenue paid to workers who sell units of product and used to motivate staff to increase sales revenue.
Bonus
additional payment to employees for exceeding performance or expections, motivates staff to work harder.
Profit share
portion of profits distributed to staff which encourages thinking like owners and working collaboratively to focus on company goals.
Performance related pay
Paid based on performance which motivates staff to work harder but critised as open to abuse by managers.
fringe benefits
financial rewards other than salaries / wages. EG: company vehicle, medical insurance
wages / salaries
wages: paid hourly or items produced
salary: annual basis and paid on periodic basis
Non financial rewards
Motivators not related to money and are intangible with methods for recognition, praise, job satisfaction and better work life balance
Empowerment
Gives staff authority to make decisions without approval which increases ownership and responsibility and improved productivity
team working
Opportunities to work collaboratively through sharing of ideas and expertise leading to improved productivity / innovation
job enrichment
adding challenging or meaningful tasks leading to improved productivty through motivation and engagement
job rotation
moving staff between roles to expose new challenges / experiences which can increase motivation and skillsets
job enlargement
expanding job duties to include additional tasks to engage with variety of tasks, can increase motivation / job satisfaction and improve productivity
Why business’s need trianing
make sure new and existing staff trained and developed
- well trained staff more productive
- staff feel more valued
- staff more flexible and resilient when change
Induction training
type of training new employees receive when they start working at a country. Introduces to company and its culture, policies, procedures, job roles and responsibilities
adv of induction trianing
- help employees understand job roles / responsibilites
- introduce employee to culture, policies, procedures
- improve confident and motivation
- reduce time for employee to be productive
dis of induction training
- expensive and time consuming
- may not cover all aspects of job role
- not effective in all cases, can lead to employee dissatisfaction
what is on the job training
training while the employees are working which allows them to learn new skills and knowledge from colleagues while performing job duties
adv of on the job
- learn new skills whlie performing job duties
- training tailored to employee specific needs
- more practical and relevant to job duties
- cost effective as during work hours
dis of on the job
- can make mistakes, can impact productivity and quality
- disruptive as requires trainer to devote time to training
- not effective in all cases, can lead to dissatisfaction
off the job training
takes place outside the workplace in the form of workshops, seminars, conferences and online courses
adv of off the job
- can bring fresh ideas / perspectives to workplace
- training tailored to specific needs of employees
- training used as reward or incentive for high performing employees
- cost effective if through webinar / online course
dis of off the job
- expensive to organise
- may miss work whilst attending, impacts productivity
- may not be directly applicable to job roles or needs of firm
What is corporate culture?
- Personality of the business through values, beliefs, attitudes and practices that shape the way people work.
- Strong culture exists when these factors easily recognised and embedded into way organisation operates and likely to possess range of visual and operational features
What are visual features?
- Specific appearance
- Well known figurehead role
- Award evenings
- Layout of business premise
- Training culture
What are Operational features?
- Core organizational values
- Workplace procedures
- Specific business language
- Stories on business values / history
How do employees react to strong / weak business cultures?
Strong:
- United / support the missions
- Can do attitude and enjoys work
- Strong belief that business is force for good
Weak:
- Them and us attitude
- Doubt sincerity of mission
- High turnover / low commitment
What is Charles Handy God of management
Argues that different cultures needed for different businesses and situations
Charles handy Zeus power culture?
Decision making by small no. of individuals at the top of business hierarchy
- Few rules exist to determine decision making
- competitive atmosphere
- Communication through personal contact
Charles handy Apollo role culture?
Decisions made by those with specific job roles
- Power lies with job titles
- Very clear hiearchal structure
- Expected to adhere to rules and place in hiearchy
- Difficult to adapt to changing market conditions
Charles handy athena task culture?
Decisions made by teams made up with employees of specific skills
- Power lies with task related skills
- Teams created / dissolved as projects start / complete
- Emphasis on adaptability and team work
-
Charles handy Dionysus person culture?
Extensive experience and skills loosely brought together
- Individuals have power to determine own decision making process and work autonomously
Why do culture clashes occur?
People from differnet backgrounds come together in workplace
- Diverse values, communciation styles, work habits
- misunderstandings due to different expectations, communication breakdowns, varying appraoches to problem solving
Why do culture gaps occur?
When business culture not aligned with management desired culture due to range of change in business organization:
- Organic growth: Strict hierarchal structure with strong bureararcy distancing leaders and workforce
- Mergers: Combining culture of 2 business difficult with dominant firm culture prevailing
- Overseas: Difference in regional culture not understood with language creating additional barriers
- Leadership: New leaders different ideas can lead to conflict if communicated poorly.
Consequences of culture gaps?
Communication breakdown: Misunderstandings with quality / quantity reducing
Demotivation: Low morale and lower productivity
Resistance: Clashes in new and existing culture can lead to resistance with increased labor turnover
Lower team spirit: Formation of subgroups resulting in lack of cohesion and collaboration
Formal / informal communication?
Formal: Through business formal organizational structure and likely to be capable of being recorded
Informal: Communication outside of official channels and unlikely to be recorded
What are barriers to communication?
- Language / Jargon: Technical terminology or industry specific jargon misunderstood or use of different languages
- Noise / distraction: Loud machinery or crowded workspace impact communication or distractions from phones or email alerts can divert attention
- Lack of feedback: Affect understandings -> misunderstanding
- Cultural differences: Culture norms affect communication style
- Lack of time: Work schedule / competing priorities limit time for communication
- Technological: Poor connection, malfunctioning equipment or unfamiliarity with platforms can lead to slow communication.
Consequences of conflict?
- Inadequate leadership / communication
- Power struggles
- Relationships
- Workplace inequality
- Stress / role ambiguity
- Differences in values / goals
What happens to unresolved workplace conflict?
- Lower productivity with workers distracted
- Reduce employee morale from stress / anxiety
- Limit opportunity for collaboration
- Negative workplace politics undermining business effeciency
Trade union
Organisation with members coming together to achieve common goal. They negotiate with employers for better terms and conditions for employment like:
- Pay
- Paid holidays
- Hours of work
- Rest breaks
- Training and development
- Facilities
Can provide advice when employees have problem at work
What are approaches to resolve conflict in workplace from trade unions?
Collective bargaining: Negotiate with employers to reach mutually accepted agreement on terms of employment with trade unions having greater negotiation power over range of issues
Work-to-rule: Adhere strictly to terms of employment with tasks explicitly in contract with goodwill withdrawn. Reduces productivity and delays production
Strike: Workers refuse to go work and not paid taking place continuously and is extreme approach forcing agreement with management
What is conflict resolution?
Steps taken by leaders / employees to solve disagreement requiring both business / employees needs to be met.A
Approaches for conflict resolution?
Conciliation / Arbitration: Independent mediator supporting negotiation between groups. Non binding means decisions can be accepted or ignored but binding means must be accepted
Employee participation: Authority to workers to take on responsibilities with level of authority
Industrial democracy: Workers involved in decision making process
No strike agreement: Agreement to not take strike action which can improve reputation of trade union and build trust for negotiations
Single union agreement: Business negotiate with only one trade union rather than multiple to resolve conflict.
