unit 6 Flashcards
what is an HR objective
specific goal or target relating to the management and performance of human resource in business
what is HR management
the design and implementation of strategies to manage people for optimum business performance
why has HRM become more important
- firms provide services, people crucial
to ensure good customer service - competitiveness-motivated
employees - move towards less managers = more
delegation and communication
aspects of HRM
- workforce planning
- recruitment & selection
- training
- motivation
- developing corporate culture
value of effective HR objectives
- connect HR activities & decision-
making with business objectives - link HR with customers service and
quality - create effective working environment
for employees-improve performance
common HR objectives
- HR employed cost-effectively
- make effective use of workforce
employee - match workforce to the business
needs - maintain good employer/employee
relations
what is Hard HRM
- treats employees as a resource
- link with corporate business planning
- what resources do we need, how do
we get them and how much will they
cost
what is Soft HRM
- treats employees as most important
resource - employees treated as individuals and
needs planned accordingly
what is better hard or soft HRM
HARD
- results in more cost-effective workforce
- decisions are made quicker
-less successful recruitment
SOFT
- reward employees
- motivates
- may put business at competitive
disadvantages
reasons to recruit staff
- business expansion
- existing employees leave
- need new skills
- business relocating
advantages of part-time employees
- cheaper as they have less benefits
- flexible workforce
- wide range of potential recruits
disadvantages of part-time employees
- feel less loyal to business - less
motivated - harder for managers to control and
coordinate workforce
what is internal recruitment
- jobs given to staff already employed
- involves promotion and recognition
what is external recruitment
- job centres
- job advantages
- recruitment agencies
- headhunting
- personal recommendations
advantages of internal recruitment
- cheaper and quicker
- familiar with how business operates
- firm knows strengths and weaknesses
disadvantages of internal recruitment
- limits number of potential
applications - no new ideas
- creates another vacancy
advantages of external recruitment
- new ideas
- larger pool of workers to pick best one
- wider range of experience
disadvantages of external recruitment
- longer process
- more expensive - advertisement +
interviews - may not be affective enough to reveal
best candidate
benefits of training
- better productivity + quality
- more flexible
- less supervision
- improved motivation
- better recruitment + retention
- easier to implement
what does on-the-job training mean
employee receives training whilst remaining in the workplace
benefits of on-the-job training
- 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 might pass on
- learning environment may not be
conducive if busy - potential disruption to production
what does off-the-job training mean
- employee training that take place
away from the work place
methods of off-the-job training
- day or part time attendance at college
- development courses
- online training
benefits of off-the-job training
- wider range of skills can be obtained
- learn from outside specialists
- employees more confident when
starting
disadvantages off-the-job training
- more expensive (transport,
communication) - lost working time
- employees have new skills - may leave
for better jobs
why do businesses neglect training
- fear employees will be poached by
competitors - a desire to minimise short-term costs
- cannot make a justifiable investment
case - training takes time to have the disired effect
what does redundancy mean
where an employees is dismissed because the job/role no longer exists or required
HR options to avoid costly redundancies
- freeze on recruitment - Jos lost
through natural waste - short-time working or job-sharing
- pay cuts or overtime bans to reduce
wage costs - redeployment
- encouraging early retirement
what is redeployment mean
moving employees to different jobs, departments or locations within the same business
what is labour retention
number of people that leave in a period
what is labour productivity
output per employee
what is absenteeism
number of staff who are absent from work
labour turnover formula
number of employees leaving
——————————————- X100
average number employed
problems of high staff turnover
- higher costs
- more pressure on remaining staff
- disruption to production/productivity
- harder to maintain standards, quality
factors affecting staff turnover
- type of business
- pay and other rewards
- working conditions
- opportunities for promotion
- competitor actions
- standard of recruitment
ways to improve staff turnover
- effective recruitment and training
- provide competitive pay and. other
incentives - job enrichment
- reward staff loyalty
key factors influencing labour productivity
- extent + quality of fixed assets (IT)
- skills, ability, motivation
- methods of production
- external factors
ways to improve labour productivity
- measure performance
- streamline production
- invest in capital equipment
- invest in employee training
- improve working conditions
problems when trying to increase labour productivity
- potential trade off, higher output still
needs best quality - potential for employee resistance
- may demand higher pay for their
improve productivity
what is meant by absenteeism
an employees intentional or habitual absence from work
formula for absenteeism
no. of staff absent during period
———————————————— X100
no. employed during period
how to tackle absenteeism
- understand the causes
- set targets and monitor trends
- have a clear sickness policy
- provide rewards for good attendance
- wider issues of employee motivation
what does the organisational structure determine
- who’s responsible for who
- individuals jobs and titles
- formal routes that communication
flows
what does span of control mean
number of employees for whom a manager is responsible
what is wide span of control
larger group of people to control
what is narrow span control
smaller group of people to control
advantages of narrow span control
- allows closer supervision of employee
- more layers in hierarchy may be
required - helps more effective communication
advantages of wide span control
- gives subordinates chance for
independence - more appropriate if labour costs are
significant - reduce number of
managers
what does span of control depends on
- personality & skill/ experience of
manager - size and complexity of business
- if firm is centralised or decentralised
- effective use of clear objectives
what is tall hierarchy and what type of management does it fit with
- structure with many levels of
hierarchy - formal or bureaucratic
key features of tall structures
- narrow span of control
- tighter control
- higher chance of promotion
- longer for communication to pass
- more staff = more costs
key features of flat structures
- wide span of control
- less direct control
- less chance of promotion
- more responsibility
- vertical communication improved
- less staff = lower costs
factors influencing organisations structure
- size of business
- type of business
- management and leadership style
- the competitive environment
what is job design
- tasks and responsibility that are
grouped into a specific job - big influence on labour productivity
through motivation
key influences on job design
- maintaining quality
- operational efficiency
- labour retention
- skills of workforce
what is delayering
removing layers of management from the hierarchy of the organisation
drawbacks of delayering
- loss of key staff
- lower Morales
- increased workloads for remaining
staff - often argued
what is delegation
giving authority to others to make decisions
advantages of delegation
- reduces management stress + work
- allows senior management to focus
on key tasks - workers empowered and motivated
- good method of on-the-job training
disorganisational structures
- can’t delegate responsibility
- depends on quality of workers
- harder in smaller firm
- may increase work and stress
what is empowerment
giving the power to do their job
what is centralised decision making
decision making firmly at the top of the hierarchy
what is decentralised decision making
spread out to include more junior managers in the hierarchy
advantages of decentralised decision making
- decisions are made closer to the
customer - better able to respond to local
circumstances - improved level of customers service
- good way of training and developing
junior management - should improve staff motivation
disadvantages of decentralised decision making
- decision making isn’t necessarily
strategic - harder to ensure consistent practices
and policies at each location - harder to achieve tight financial
control risk of cost-overruns
what are the three classic theories of motivation
- Taylor
- Maslow
- Herzberg
what is Taylors theory of motivation
- managers should maintain close
control and supervision over workers - autocratic - make all decisions
- workers motivated by money (theory
X) - pay workers on how much they
produce
what is Taylors overview of management
- scientific approach
- concern for productivity gains, employees seen as a resource
- criticised for not considering
individuals needs - outdated in modern business but
elements still exist
what’s maslows theory of motivation
his approach to motivation is the result of a persons attempt at fulfilling five basic needs : physiological, safety, social, esteem and self-actualisation
what is Hezbergs theory of motivation
suggest that satisfaction and dissatisfaction at work are influenced by two sets of factors, hygiene and motivation
what are other financial methods pop 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 payment
- requires low levels of manger supervision
- encourages high speed production
- provides good incentive for workers who
are mainly motivated by pay
disadvantages of piece rate payment
- workers are focused on quantity not
quality - its repetitive and demotivating
- only set to one method
what is overtime pay
additional hours worker over and above normal working hours (weekend, holidays)
pay rate is higher
what is bonus pay
given out when certain performance targets have been met
what is commission
a financial incentive linked to achievement of sales
what is profit sharing
a system whereby employees receive a proportion of business profits
advantages of profit sharing
- creates a direct link between ay and
performance - create team spirit, remove barrier between
manager - workers likely to accept changes
- improve loyalty
advantages of share save schemes
clear link between sales and remuneration
disadvantages of share save schemes
sales may be influenced by factors outside of employee control
what is share save schemes
employees are entitled to save money to buy share at below market value
what is performance related pay
increasingly popular method of paying higher wages to employees that meet certain targets
advantages of performance related pay
- senior managers can easily monitor and -
assess individuals employee performance
during appraisal process - ensure staff are all closely focused to
company objectives
disadvantages of performance related pay
- discourage team based approach
- can be difficult to accurately measure
performance of some workers - incentives may not be lager enough to
managers employees
fringe (perk) benefits
- items an employee receives n addition to
their normal wage or salary - often increases loyalty to company as
these benefits aren’t always taxed or are
taxed at a reduced rate - more likely to recruit best people to
company
main noon-financial incentives
- empowerment
- praise
- promotion
- job enrichment
- job enlargement
- job rotation
- working environment
- team working
what is employee representation
arises when employee are part of a formal structure for involving them In the decision making process of a business
legal requirements to consult with employees consist of…
- proposed redundancy
- employees transferred from one
employer to another - changes to pension arrangements
- changes to woking time
good reasons for a formal system of employee representation
- make employees views known to
management - help strengthen both management
and employees understanding
workplace issues - help create an atmosphere pf mutual
trust between employees and
management
benefits of employee representation
- increased empowerment and
motivation of the workforce - more commitment to the objectives
and strategy - employee insights may lead to better
decision making - lower risk of industrial disputes
disadvantages of employee representation
- time consuming, slow decision making
- conflicts between employer and
employee intreats may be a block to
essential change - managers may feel their authority is
being undermined
what is a trade union
group of employees who join together to maintain and improve their conditions of employment
what are trade unions main roles
- protect and improve the real incomes
of their members - provide or improve job security
- protect workers against unfair
dismissal and other issues relating to
employment legalisation - lobby for better working conditions
two main functions of a trade union
- represent and protect interest of
employees - negotiate on behalf of employees with
employer
advantages for an employer of a good relationship with trade union
- negotiating with trade unions saves
time and cost rather than dealing with
all employees individually - employee morale and motivation may
be improved if they know that their
interests are being protected by a
union - the trade union can be a supportive
partner in helping a business undergo
significant change
what is industrial action
when ,embers of a trade union organisation group that either refuses to work, or refuses to work in the way employers want
reasons for general decline in union membership in the UK
- decline in employment in
manufacturing. Rise in service sector
which is less unionised - growth in the number of small firms
which tend not to recognise trade
unions - significant growth in flexible working -
where employees see less need for
union protection - improved employee involvement in
the workplace - so less perceived need
for collective bargaining
main methods of ‘industrial action’
- work to rule
- overtime ban
- go slow
- strike
how do businesses suffer from industrial action
- lost sales and profits from the lost
output - damage to customer satisfaction
- damaged relationship with staff may
adversely affect motivation,
productivity etc
how do employees suffer from industrial action
- lost pay
- potential loss of jobs if the action
results in action to cut costs - possible loss of customer and public
support - risk that illegal action will result in
legal proceedings
