Unit 6

Question 1

Human resource objectives

Answer 1

Employee engagement and involvement- engaged employees are more likely to be motivated

Talent development- development and guidance of future stars of a business

Training- development of skills

Diversity- respect and acceptance in terms of race, gender, age, sexual orientation, physical abilities religion etc

Alignment of values- bringing together employee and business values

Number, skills and location of employees- planning to have right employees in right places

Question 2

A business able to achieve human resource objectives will benefit from

Answer 2

-lower labour turnover
-higher labour retention rates
-higher productivity
-full compliance with any UK labour legislation

Question 3

External influences on HR objectives

Answer 3

-economy
-political factors
-technology
-competitive environment

Question 4

Internal influences on HR

Answer 4

-corporate objectives
-type of product or service

Question 5

What is Hard HR?

Answer 5

Employees are no different from any resource used by the business. HR management operates in short term only: employees are hired and fired as necessary

Question 6

What is Soft HR?

Answer 6

Employees are the most valuable resource available to the business and a vital competitive weapon. Employees are developed over a long period of time to help the firm fulfil its corporate objectives.

Question 7

Key features of Hard HR

Answer 7

-pay is kept to a minimum
-little to no empowerment
-communication is mainly downwards
-emphasis is on short term recruiting of employees
-more likely from leaders using autocratic style of leadership
-generally uses financial techniques to motivate

Question 8

Key features of soft HR

Answer 8

-employees are empowered and encouraged to take decisions
-employees are consulted regularly by managers
-a long term relationship is developed with employees through use of internal recruitment and ongoing training programs
-more likely to be used by leaders who use a democratic style of leadership
-motivated by giving employees more control over their working lives

Question 9

Labour turnover formula

Answer 9

Labour turnover = number leaving during year / average number of staff

Question 10

Labour retention formula

Answer 10

Labour retention = number of employees with one or more years of services / overall workforce number x 100

Question 11

Why do employees leave a business

Answer 11

-low or inadequate wage levels
-poor morale
-a buoyant local labour market offering more attractive opportunities

Question 12

Labour productivity formula

Answer 12

Labour productivity = total output per time period / number of employees

Question 13

Labour costs as a percentage of turnover formula

Answer 13

Labour costs as a percentage of turnover formula = labour costs / turnover x 100

Question 14

Labour cost per unit

Answer 14

Labour cost per unit = labour costs / output

Question 15

Unit labour cost

Answer 15

A measure of the average labour cost of producing one unit of an output

Question 16

Organisational factors affecting job design

Answer 16

-task characteristics
-process or flow of work in organisation
-ergonomics
-work practices

Question 17

Environmental factors affecting job design

Answer 17

-employee availability and ability
-social and cultural expectations

Question 18

Behavioural factors affecting job design

Answer 18

-feedback
-autonomy
-variety

Question 19

Job design

Answer 19

The process of deciding on the contents of a job in terms of its duties and responsibilities

Question 20

Job rotation

Answer 20

The regular switching of employees between tasks of a similar degree of complexity. This provides variety and may relieve the monotony of just doing one task

Question 21

Job enlargement

Answer 21

This extends the employees’ range of duties. Instead of rotating around different tasks the job itself is extended to include more tasks of a similar nature.

Question 22

Job enrichment

Answer 22

The job is designed to include more challenging tasks which gives employees greater responsibility by increasing the range of complexity of tasks they undertake with the aim of improving motivation and engagement.

Question 23

Empowerment

Answer 23

Giving employees control over their working lives and can be achieved by organising employees into teams, setting them targets and allowing them to plan their own work, take their own decisions and solve their own problems.

Question 24

Organisational design

Answer 24

The process of shaping an organisation’s structure in order to meet its objectives effectively.

Question 25

Hierarchy

Answer 25

Is the way different levels of authority are ranked in an organisational structure

Question 26

Chain of command

Answer 26

The order in which authority and power in an organisation are exercised and delegated from top management down.

Question 27

Authority

Answer 27

The power or right to give orders or make decisions

Question 28

Span of control

Answer 28

The number of subordinates who can be controlled effectively by one manager

Question 29

What affects span of control

Answer 29

-the ability of the manager -the type of work -skills of employees

Question 30

Delegation

Answer 30

The granting of authority by one person to another person for agreed purposes.

Question 31

Centralisation

Answer 31

The process of concentrating management and decision-making power at the top of an organisational hierarchy.

Question 32

Decentralisation

Answer 32

The process of redistributing decision making power away from a central location or authority.

Question 33

Influences on the level of centralisation or decentralisation

Answer 33

-uniformity of decisions -management style -skills and ability of workforce -economic influences -technology

Question 34

Why change organisational design to meet HR objectives?

Answer 34

-if jobs are more interesting employees are more likely to become more engaged and motivated resulting in higher productivity, higher quality and less wastage -may lead to lower costs

Question 35

Performance appraisal

Answer 35

A systematic periodic process that assesses an employee’s job performance in relation to established criteria.

Question 36

Redundancy

Answer 36

When an employee is dismissed due their job no longer existing.

Question 37

Redeployment

Answer 37

The process of moving existing employees to a different job or location

Question 38

Natural wastage

Answer 38

The loss of employees from a business due to retirement, resignation or death.

Question 39

Why may an employee be dismissed?

Answer 39

-gross misconduct -persistent minor misconduct -a substantial reason e.g not agreeing with new reasonable terms of employment

Question 40

Benefits of motivated employees

Answer 40

-productivity -recruitment and retention is more likely -absenteeism likely to be lower -innovation -profitability likely to be higher

Question 41

What is motivation?

Answer 41

A range of factors that influence people to behave in certain ways.

Question 42

Maslow’s hierarchy

Answer 42

1. Physiological: need for food, shelter, water and sex 2. Security: the need to be free from threats and danger 3. Social needs: the need to love and be loved, and to be part of a group 4. Esteem needs: the need to have respect and the respect of colleagues 5. Self actualisation: the need to develop personal skills and fulfil one’s potential

Question 43

Herzberg’s theory

Answer 43

Two factor theory: -motivators: positive factors that give people job satisfaction -hygiene: factors that may cause dissatisfaction among employees. Improving hygiene factors will not motivate employees

Question 44

Taylor’s theory about motivation

Answer 44

-people were solely motivated by money -efficiency would improve productivity, competitiveness and profits -workers should have no control over heir work -the social aspect of employment was considered irrelevant and ignored

Question 45

Financial methods of motivation

Answer 45

Wages and salaries- employees are normally paid a wage or salary with any extra hours (overtime) set at a higher rate Piece-rate pay- gives a payment for each item produced. This encourages effort but often at the expense of quality Commission- payment made to employees based on value of sales achieved Profit-related pay- gives employees a share of profits earned by the business. It encourages employees to work hard to generate maximum profits for the business. Performance-related pay- needs to be tied to some form of assessment or appraisal of employee performance Share ownership- employees offered shares in the company in which they work

Question 46

Factors that influence the choice of reward systems

Answer 46

Finance- will want to keep a careful check on unit labour costs and costs as a percentage of turnover Nature of work- skills of workforce involved. Reward needs to be appropriate to attract and retain employees Culture- culture of business and management style adopted External factors- economic cycle

Question 47

Trade unions

Answer 47

-an organised group of employees that aims to protect and enhance the economic position of its members -they negotiate on pay and conditions of work -they discuss major changes in the workplace, such as redundancy and help protect job security -they provide a range of services including financial and legal advice

Question 48

Why has there been a decline in union membership

Answer 48

-legislation which controlled trade unions -decline of traditional industries -increasing number of small businesses

Question 49

Work council

Answer 49

A body composed of both employer and employee representatives convened to discuss and negotiate on matter of common interest including pay and conditions.

Question 50

ACAD

Answer 50

Advisory, Conciliation and Arbitration Service Advice- offers advice to employers, trad unions and employee associations on topics such as payment, absenteeism and sickness Conciliation- encourages continuation of negotiation rather than industrial action Arbitration- can act to resolve a dispute by making recommendations that may be either binding or non-binding

Question 51

The value of good employer-employee relations

Answer 51

-productivity -employee loyalty -decision making