Unit 4 - Operations Management Flashcards
A2 - Location and scale, quality management & operations strategy
What is a Hard HRM approach?
An approach to managing staff which focuses on cutting costs such as temporary and part time staff & contracts, offering maximum flexibility with minimum training costs
Advantages of a Hard HRM approach ?
+ Reduces the risk of errors being made
+ Employees are easily replaceable
+ Outcomes are predictable
Disadvantages of a Hard HRM approach ?
- Low employee moral
- High staff turnover
- Reliant on management
What is a Soft HRM approach?
The approach to managing staff which focuses on developing staff so they reach self-fulfilment and are motivated to work hard and stay within the business
What are key thing which will happen with soft HRM
- A manger will ensure that an employees welfare and motivation are prioritised, employee relations will be strong
- View that employees can add value to an organisation and that a business should develop, enhance and build on their interests
- Managers are the facilitators, are there to help and support the employees
What are advantages of soft HRM ?
- More creativity and innovation
- Competitive advantage
- Employee loyalty
What are disadvantages of soft HRM ?
- Time
- Costs
- May not be suitable for the staff or business
What are some issues of HRM for anylasis ?
Political
Economic
Social
Technological
Environmental
Legal
Pandemic
Ethical
Competition
(PESTAL & PEC)
Why do managers need to measure employee performance ?
Managers need an unbiased and objective way to measure employee performance. They will need to look at data not the persons themselves.
It will indicate :
- Is the workforce motivated ?
- Is the workforce as productive as it should be ?
- Are the personnel polices of the business helping the business meet its goal ?
What are the four KPI
KPI - Key performance indicators
- Labour productivity
- Absenteeism
- Labour turnover
- Waste level
How to caluclate labour productivity ?
Labour productivity = Total output in a time period / Total staff employed
(X per worker per time period)
What is labour productivity ?
It is seen as the most important KPI, comparing the number of workers to output. Increase in productivity suggests an improvement in efficiency and lean productivity systems look for greater output (production) from the least input (labour).
What is absenteeism ?
The measure of the total number workers of who are absent as a %
How to calculate absenteeism?
Absenteeism = (Number of staff absent / Total number of staff) x 100
Think Herzberg’s hygiene factors
Why would people be absent?
- Poor working conditions
- No respect
- No teamwork
- Over (or under) supervision
- Inappropriate tasks
- Low pay
What are the costs of absenteeism ?
Lost production – work lost forever no matter the business
Extra overtime – needed to meet the deadlines to cover for absent colleagues
Increased level of absenteeism – culture spreads through the firm
How would you reduce absenteeism ?
Flexitime – relieves pressure of childcare or transport
Job enrichment – satisfying challenging job that will make workers want to come to work
Improved working conditions
Improved human relations – make workers feel valued
What is labour turnover ?
The rate of change of a firm’s workforce
How to calculate labour turnover ?
Labour turnover = (Number of staff leaving over a given period of time / Average number of staff ) x100
What is labour turnover caused by internally?
Internal factors :
* Ineffective motivation or leadership,
* Poor recruitment
* Appointed the wrong person in the beginning
* Lower wages than a similar firm.
What are positive consequences of labour turnover ?
New workers will bring new ideas to a firm
Workers with specific skills can be employed rather than having to train up existing employees
Cuts cost by reducing number of staff
What are negative consequences of labour turnover ?
Negative look / bad reputation for the business
Cost of recruitment
Cost of training employees
Loss of productivity while new workers adjust
What is waste level ?
The level of waste produced by a firm is an indicator of its efficiency.
How to caluclate waste level ?
Waste level = (Quantity of waste materials / total production) x 100
What are the costs of waste levels ?
Having waste materials is a cost to the business
What would reducing waste levels lead to ?
Reducing waste would lead to more profit
Actual cost of unused or scrapped materials
Cost of reworking damaged goods
Loss of reputation
What are reasons for producing waste ?
Poor training
Poor layout of the factory
Lack of commitment from workers
Lack of motivation for workers
What solution can be given for waste levels ?
Personal mangers recruit the correct people and operations managers get the correct layout of factory
How could employee performance be improved within a business ?
- Regular appraisals
- Training
- Encouragement
- Motivation
- Using a ‘Soft’ HRM approach
- Financial incentives
- Investing in technology
What anylasis can be given to KPIs ?
Numbers on its own say very little and comparisons must be made either over time or with others in the business industry (can set targets).
What have been past uses of IT in HRM ?
- Keeping records of employee records on databases
- Recording flexible working schedules on planning software, all workers have access to information on where they are expected to work
- Holiday planning on similar software, workers can enter preferred holiday dates
What are some current uses of IT in HRM for recruitment ?
- Use of web portals allows employers to post details of job vacancies and qualifications & experience needed by applicants
- Many workers will be recruited through social networks like linked-in
- A business posts a job position on sites such as indeed, people are able to apply if qualified
What are some current uses of IT in HRM for Training and development ?
- Training programs can be uploaded on IT such as essential induction materials
- They can be viewed by employees as often as needed
- Illustrations and demonstrations can be included to aid
- Assessment tools can be incorporated so trainees can check understanding and progress through the training course
What are some current uses of IT in HRM for Employee performance managment ?
- Computerised performance management software allows regular recording and updating employee performance
- Managers can easily see how much work is being done/accomplished by each employee in a given period
- Softerware will help the flow of information about employee performance across the business and can help employees take the initiative to improve their own performance
What would be some future uses of IT and AI in recritument ?
- AI may be used in interviews
- Reading through hundreds of applications rapidly and evaluate them with no human bias
- Record and amylase the answers from candidates to common questions and respond with appropriate follow-up questions
What would be some future uses of IT and AI in Training ?
The use of VR, more realistic and interactive courses e.g. an Air emergency to train cabin crew
What would be some future uses of IT and AI in HRM ?
Answering employee questions, FAQs are answered through chatbots such as pay, holiday. Allows HR to focus on more complex issues and questions
What evaluation can be given to the increased use of IT
- Frees up time for more important strategic issues
- It can reduce the personal contact between HRM and employees makes the HR manager seem more remote
- Increased dependence on IT can reduce two-way conversations/group discussions
- Risk of creating a sense of being wated and monitored at all times amongst the employees
