unit 6 Flashcards
what is an HR objective
a specific goal or target or relating to the management and performance of human resources in a business
what is resource management
the design and implementation of strategies to manage people for optimum business performance
why has HRM become more important
more businesses now provide services therefor people are crucial to ensure good customer service
competitiveness forces efficiency in the workplace
movement towards flatter organisational structures.
what is the value of effective HR objectives
can connect HR activities and decision making with overall business objectives.
link HR with customers service and quality
Help create an effective working environment
aspects of HRM
workforce planning
recruitment
training
motivation
developing corporate culture
what would the HR actions be to make effective use of workforce potential
Ensure jobs have suitable, achievable workloads
avoid too many under-utilised or over stretched staff
make best use of employees skills
what would the HR actions be to ensure Human Resources are employed cost effectively
pay rates should be competitive but not excessive
minimise staff turnover
measure returns on investment in training
what is hard HRM
treats employees simply as a resource of the business. Strong link with corporate business planning- what resources do we need, how dow er get them and how much will they cost
reasons to recruit staff
business expansion
existing employees leave
business need employees with new skills
business is relocating
advantages of part-time employees
cheaper to employ as entitles to less benefits
more flexible workforce
wide range of potential recruits
disadvantages of part-time employees
employees feel less loyal to businesss and therefore less motivated.
may be harder for managers to control and coordinate workforce
internal recruitment
jobs given to straff already employees by business
involves promotion and reorganisation
external recruitment
job centres
job advertisements
recruitment agencies
headhunting
personal recommendations
advantages of internal recruitment
cheaper and quicker to recruit
people already familiar with business and how it operates
provides opportunities for promotion with in business
business already knows strengths and weaknesses of candidates
disadvantages of internal recruitment
limits no. of potential applicants
no new ideas
may cause resentment amongst candidates
creates another vacancy.
what is training
involves the development of work related sills to improve performance. This can be on or off the job and may lead to qualification.
advantages of external recruitment
outside people bring new ideas
larger pool of workers from which to find best candidate
people have a Wider range of experience
disadvantages of external recruitment
longer process
more expensive
may not be effective enough to reveal candidate
benefits of training
better productivity and quality
more flexibility through better skills
less supervision requires
improved motivation through greater empowerment
better recruitment and employee retention
what does on-the-job training mean
an employee recieves training whilst remaining in the workplace
methods of on-the-job training
demonstration/ instruction
coaching
job rotation
projects
advantages of on-the-job straining
generally most cost-effective
employees are still productive
opportunity to learn whilst doing
training alongside real colleagues
disadvantages of on-the-job training
quality depends on ability of trainer
bad habits pass on
what is off-the-job training
employee training that takes place away from the work place
methods of off-the-job training
day or part time attendance at college
professional development courses or conferences
online training
advantages of off-the-job training
a wider range of skills or qualifications can be obtained
can learn from outside specialists or experts
employees can be more confident when starting job
disadvantages of off the job training
more expensive- transport and accomodation
lost working time and potential output from employees
employees now have new skills/qualifications and may leave for better jobs.
why do businesses neglect training
they fear employees will be poached by competitors
a desire to minimise short term costs
they cannot make a justifiable investment case
training takes time to have the desires effect
redeployment
redeployment involves moving employees to different jobs, departments or locations within the same business
benefits of redeployment v redundancy
maintains job security for employee
Business retains skills and experience
labour resources are allocated more effectively
reduced costs of recruitment and selection
what is redundancy
where an employee is dismissed because the job / role no longer exists or is required
HR options to avoid costly redundancies
freeze on recruitment- jobs lost through natural wastage
short-time working or job sharing
pay cuts or overtime bans to reduce wage costs
redeployment
encouraging early retirement
what is a case study for business expansion through training and development
Aldi
notes on case study ALDI intro
-leading retailer with over 8,000 stores
-brand associated with value for money
-emphasis on providing g a range of high value products for an excellent price
-places great importance on how it trains and develops their staff
-training is beneficial because it helps to increase efficiency and makes the staff more motivated.
-development is about building the long term capabilities of the workforce
how has ALDI’s training and development programme help to ensure its employees have the skills that the business requires for now and the future
-need to predict future staffing needs accurately
-needs to plan for the number of workforce they will require and the skills too.
-the business monitors the availability of their products to the customers. if the availability drops below a specific margin, then a programme of training on order accuracy will be undertaken
-the company will need to recruit 4,000 new staff in the next 12 months to keep up with the rapid expansion of their business.
-to attract the best candidates it offers industry-leading salaries at all levels, and produces clear and detailed job descriptions for each post. After there is an interview and assessment stage.
-Although ALDI expects these new employees to make an immediate impact, they organise high-level training for recruits at all levels.
-new recruits learn about the philosophy of ALDI.
what are the different methods of on-the -job -training
coaching- an experienced member of staff will help trainees to learn new skills through demonstrations.
mentoring-each trainee is allocated to a member of staff who will act as a guide or a helper
job-rotation- this is where members of staff rotate roles so that the trainee experiences a full range of jobs.
‘sitting next to Nellie’- the process of working alongside a colleague that observes them and helps them to learn the skills needed for the appropriate jobs.
what are the off-the job training methods that is offered to Aldi
recruitment, interviewing and selection
-employment law
-influencing skills
-performance reviews
-Aldi management system (how to develop and performance manage people).
why might off-the job training be bad for ALDI
extra costs (payments to training organisations)
-staff taking training courses ar not at work, so their jobs have to be covered by others- increase in payroll costs.
Benefits of off-the job trading for ALDI
-more motivated staff
-greater staff productivity
-employees with a larger range of skills and ability to provide improved customer service
what does ALDI provide for young people
for 16-18 year olds, apprenticeships are open
combines both on and off-the job training.
how does development impact employees
through development schemes employees can obtain transferrable qualifications that can benefit the business and the employees
how would a business lose staff
retirement
maternity
death
what is employee retention
the ability of a business to convince its employees to remain with business
what is the labour turnover formula
number of employees leaving during period/average number employed during period x 100
problems of high staff turnover
higher costs
increased pressure on remaining staff
disruption to production/productivity
harder to maintain required standards of quality
what are the factors that affect staff turnover
type of business
pay and other rewards
working conditions
opportunities for promotion
competitor actions
standard of recruitment
context on staff turnover
Tesla- 25% staff turnover
ways to improve staff turnover
effective recruitment and training
provide competitive pay and other incentives
job enrichment
reward staff loyalty
why is labour productivity important
closely linked to productive use of labour
remain competitive
factors influencing labour productivity
extent and quality of fixed assets
skills, ability and motivations of the workforce
methods of production organisation
extent to which the workforce is trained and supported
external factors
equation for labour productivity
output per period/number of employees at work
what is absenteeism
an employee’s intentional or habitual absence from work
formula for Absenteeism
number of staff absent during period/ number employed during period x 100
what does the organisational structure determine
authority and responsibility
individual roles and titles
the people to whom others are accountable
the formal routes through which communication flows in business
what is span of control
the number of control is the number of employees (subordinates) for whom a manager is responsible for
what are subordinates
the people who you are responsible for
what is a large span of control called
wide
what os a small span of control called
narrow
what does a narrow span of control allow for
-allows for closer supervision of employees
-more layers in the hierarchy may be required
-helps more effective communication
what does a wide span of control allow for
-gives subordinates the chance for interdependence
-more appropriate if labour costs are significant- reduce number of managers
what does centralised mean
all major decisions happen in one place
what does span of control depend on
-personality and skill/experience of the manager
-size and complexity of the business
-whether the business is centralised or decentralised
-the effective use of clear objectives throughout a business
what does a chain of command
describes the formal lines of authority within a business
what are the common types of organisational structure
-tall structure- traditional;- many layers inhierachy, narrow spans of control
-flat, less direct control, wider span
what are the factors that influence organisational structure
size of business
type of business
management and leadership style
the competitive environment
how does the size of a business influence the organisational style
small businesses will tend to have informal or flat hierarchical structures
how does the type of business influence organisations; structure
does the business operate from just one or several locations
how does the management and leadership style influence organisational structure
autocratic traller- fewer spans more controlling
democratic- likely to be flatter
how does the competitive environment influence organisational structure
may need to be flatter or decentralised to respond quicker.
what is delayering
Removing layers of management from the hierarchy of the organisation
drawbacks of delayering
loss of key staff
lower morale
increasing workloads for remaining staff
often argued
what is delegation
giving authority to others to make decisions
advantages of delegation
-reduced management stress and workload
-allows senior management to focus on key tasks
-subordinates are empowered and motivated
-good methods of on-the-job training
disadvantages of delegation
cannot/should not delegate responsibility
-depends on quality/experience of subordinates
-harder ina smaller firm
-may increase workload and stress of subordinates
what is empowerment
giving the power to do their job
what is centralised decision making
decision-making firmly at the top of the hierarchy ( amongst the most senior management)
context on centralisation
fast food businesses muse centralised structrure to ensure that control is maintained over their thousands of outlets- because to ensure consistency of customer experience and quality at every location, together with desire to exploit economies of scale, are the main reasons for this decision
advantages of centralisation
-easier to implement policies and practices for the whole business
-easier to coordinate and control from the centre
-economies od sale and overhead savings easier to achieve
-quicker decision making- easier to strong leadership
disadvantages of centralisation
more bureaucratic- often extra layers in te hierarchy
-local or junior manager are likely to be more aware of customer needs
-lack of authority down the hierarchy may reduce manager motivation
-customer service may suffer due to lack of felxibility and speed of local decision-making.
decentralised decision making
decision making is spread out to include more junior managers in the hierarchy
example of decentralised decision making
hotel chains- empowered to make the-spot decisions to handle customer problems
advantages of
what is job design
the tasks and responsibilities that are grouped into a specific job
how would maintaining quality be influenced by job design
jobs should be designed so they support the required level of quality- particularly for customer service
how would operational efficiency be influenced by job design
job design should be closely integrated with operational requirements- ensure workers have the resources required.
how would labour retention influenced by job design
poor design is a common cause of high staff turnover and low employee retention.
how would skills of the workforce be influenced by job design
employees can only undertake jobs effectively if they have the skills required
what is motivation
the will to work
comes from enjoyment of work itself and from the desire to achieve certain goals.
what are the classic theories of motivation
Taylor-scientific management
Maslow- human relations, hierarchy of needs
Herzberg
what was Taylor’s Theory of motivation
Managers should maintain close control and supervision
-autocratic style of management- managers make all decisions
-theory x approach- workers are only motivated by money
-motivate workers using piece-rate payments.
what did Elton mayo do
hawthorne effect
showed benefits of team building and management interest on employees
-led to development of hR sector of business
what would a well motivated workforce help with
productivity
product quality
what did Abraham Maslow do
an American physiologist the structure is each person has the hierarchy of human needs that must be satisfied, ranging from basic physiological needs, safety needs (security) , love and
belonging, esteem and at the top is self actualisation (the realisation of fulfilment of ones talent). His work predated the modern positive physiology movement
what is Herzbergs two factor theory
there are motivators and hygiene factors
what are the motivators
-responsibility of work
-meaningful, fulfilling work
-achievement and recognition
-promotion prospects
what are hygiene factors
pay and other rewards
working conditions
appropriate supervision and clear policies.
what are intrinsic motivators
motivators that come from within
what are extrinsic motivators
motivators that come from someone else
what are other financial methods of motivation
wages
salaries
bonus system
commissions
profit sharing
what is piece rate payment
pay per item produced in a certain period of time
advantages of piece rate payments
requires low levels of management supervision
encourages speed production
provides good incentives for workers who are mainly motivated by pay.
disadvantages of piece rate payments
workers should be focused on quality
repetitive and de motivating
only set to one method.
what is overtime
additional hours worked over and above normal working hours
what is bonus pay
given out when certain performance targets have been met applicable at management level.
what is commission
a financial incentive to achievement of sales
% of commission for the value of sale achievement
basis commission rate set at low rate
higher rate offered one sales targets are achieved
what is the main advantage of commission
clear link between sales and remuneration
main disadvantage of commission
sales may be influenced by factors outside of employee control
what is profit sharing
a system whereby employees receive a proportion of business profits
advantages of profit sharing
creates a direct link between pay and performance
creates a sens bof team spirit
may improve employees loyalty
what are share save schemes
employees are entitled to save money to buy share at below market value- perhaps 20%
they can only purchase this after a set period of time
encourages them to want to perform well
what is performance related pay
higher wages for the employees that meet certain targets.
advantages ensure staff are closely monitored
disadvantages- discourages a team approach- promotes rivalry
what are bring benefits
items an employee receives in addition too their normal wage or salary e.g company car
increases loyalty to the company.
examples of non- financial incentives
empowerment
praise
promotion
job enrichment
job enlargement
what are employee representation
arises when employees are part of a formal structure for involving them in the decision making process of a business.
when is it a legal requirement to consult with employees
redundancy programmes
on changes to pension arrangements
proposed changes to working arrangements
employee representation
an arrangement whereby employee’s interests are negotiated by an appointed body- usually a trade union
main benefits of employee representation
make employees views known to management
help strengthen both management and employees understanding of workplace issues
-help create an atmosphere of mutual trust between employees and management
advantages for an employer of a good relationship with trade union
negotiation with trade unions saves time and cost rather than dealing with all employees individually
-employees morale and motivation may be improved
-trade union can be a supportive partner in helping a business undergo significant change.
the two main functions of a trade union
-protect interest of employees
-on behalf of employees with employer.
reason for general decline in union membership
decline in employment and manufacturing
-growth in the number of small firms which tend to recognise trade unions
-significant growth in flexible working
-improved employee involvement in the workplace
what is industrial action
when members of a trade union organise into a group that either refuses to work, or refuses to work in the way employers want.
main methods if industrial action
work-to-rule: employees follow the strict conditions of their contract.
overtime ban: employees refuse to work overtime
go-slow: employees work at the slowest or least productive pace
how might employers and employees suffer from industrial action
damage for business- less profit/efficiency
damage reputation
damage for the employee- lost ay
-potential losses of jobs
-loss of customer and public support.
avoiding industrial disputes
regular consultations with a trade union
-set ups staff forum or joint working group
-an employee consultative body to discuss major issues
works councils
Discussion of issues pertaining to economic and employment conditions
EU legislation makes these mandatory, and has more than 1,000 employees
typical agenda for a works council
business objectives and performance
workforce planning issues
employee welfare issues
settling disputes usicg ACA’s
conciliation
Arbitration
mediation
conciliation
when a employee is making or could make a specific legal complaint against their employer.
discusses the issues with both parties in order to help them reach a better understanding.
mediation
involves an independent, impartial person helping two or more individuals or groups to reach a solution.
general dispute
arbitration
an alternative to a court of law
an impartial outsider being asked to make a decision
