Unit 6 Flashcards
Decision making to improve human resource performance
Human resource objectives
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
A business able to achieve human resource objectives will benefit from
-lower labour turnover
-higher labour retention rates
-higher productivity
-full compliance with any UK labour legislation
External influences on HR objectives
-economy
-political factors
-technology
-competitive environment
Internal influences on HR
-corporate objectives
-type of product or service
What is Hard HR?
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
What is Soft HR?
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.
Key features of Hard HR
-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
Key features of soft HR
-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
Labour turnover formula
Labour turnover = number leaving during year / average number of staff
Labour retention formula
Labour retention = number of employees with one or more years of services / overall workforce number x 100
Why do employees leave a business
-low or inadequate wage levels
-poor morale
-a buoyant local labour market offering more attractive opportunities
Labour productivity formula
Labour productivity = total output per time period / number of employees
Labour costs as a percentage of turnover formula
Labour costs as a percentage of turnover formula = labour costs / turnover x 100
Labour cost per unit
Labour cost per unit = labour costs / output
Unit labour cost
A measure of the average labour cost of producing one unit of an output
Organisational factors affecting job design
-task characteristics
-process or flow of work in organisation
-ergonomics
-work practices
Environmental factors affecting job design
-employee availability and ability
-social and cultural expectations
Behavioural factors affecting job design
-feedback
-autonomy
-variety
Job design
The process of deciding on the contents of a job in terms of its duties and responsibilities
Job rotation
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
Job enlargement
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.
Job enrichment
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.
Empowerment
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.
Organisational design
The process of shaping an organisation’s structure in order to meet its objectives effectively.
Hierarchy
Is the way different levels of authority are ranked in an organisational structure
Chain of command
The order in which authority and power in an organisation are exercised and delegated from top management down.
Authority
The power or right to give orders or make decisions
Span of control
The number of subordinates who can be controlled effectively by one manager
What affects span of control
-the ability of the manager
-the type of work
-skills of employees
Delegation
The granting of authority by one person to another person for agreed purposes.
Centralisation
The process of concentrating management and decision-making power at the top of an organisational hierarchy.
Decentralisation
The process of redistributing decision making power away from a central location or authority.
Influences on the level of centralisation or decentralisation
-uniformity of decisions
-management style
-skills and ability of workforce
-economic influences
-technology
Why change organisational design to meet HR objectives?
-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
Performance appraisal
A systematic periodic process that assesses an employee’s job performance in relation to established criteria.
Redundancy
When an employee is dismissed due their job no longer existing.
Redeployment
The process of moving existing employees to a different job or location
Natural wastage
The loss of employees from a business due to retirement, resignation or death.
Why may an employee be dismissed?
-gross misconduct
-persistent minor misconduct
-a substantial reason e.g not agreeing with new reasonable terms of employment
Benefits of motivated employees
-productivity
-recruitment and retention is more likely
-absenteeism likely to be lower
-innovation
-profitability likely to be higher
What is motivation?
A range of factors that influence people to behave in certain ways.
Maslow’s hierarchy
- Physiological: need for food, shelter, water and sex
- Security: the need to be free from threats and danger
- Social needs: the need to love and be loved, and to be part of a group
- Esteem needs: the need to have respect and the respect of colleagues
- Self actualisation: the need to develop personal skills and fulfil one’s potential
Herzberg’s theory
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
Taylor’s theory about motivation
-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
Financial methods of motivation
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
Factors that influence the choice of reward systems
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
Trade unions
-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
Why has there been a decline in union membership
-legislation which controlled trade unions
-decline of traditional industries
-increasing number of small businesses
Work council
A body composed of both employer and employee representatives convened to discuss and negotiate on matter of common interest including pay and conditions.
ACAD
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
The value of good employer-employee relations
-productivity
-employee loyalty
-decision making
