UNIT 6 Flashcards
why is it beneficial to analyse human resources
good to analyse to aid decisions for employees
why might people leave a business?
travelling, redundancy, pay
how do i calculate staff retention
number of staff leaving in 1y
average no. of staff
what does a high labour turnover do to a business
increases cost of recruitment
how to calculate labour productivity
output/ no. of workers
how to calculate unit labour costs
labour costs/ units of output
what happens to labour cost if employees have training
increases
what happens to labour costs if employees are ineffective
decreases
how to calculate employee costs in relation to revenue?
employee costs/ revenue X100
define job design
contents of a job, in terms of responsibility and duties
name 3 influences on job design
new technology
need to focus from corporate objectives
customer satisfaction focus
health and safety requiremnts
define job rotation
mixing tasks within a job to decrease boredom
define job enrichment
adding challenge onto the job, adding things the employees enjoy to do as an extra challenge
define empowerment
employees make decisions without consulting
whats an organisational structure
shows how employees are organised in a business
whats a span of control
number of subordinates a line manager is supervising
whats a chain of command
the route through messages are passed
whats a tall organisational structure
- Many leaders and layers of management.
- ‘Top-down’ approach with a long chain of command.
-Managers will have a narrow span of control.
3 advantages of a tall structure
- opportunities for promotion
- responsible for fewer
- can spot which sections needs developing
3 disadvantages of a tall structure
- “ them and us “ feeling
- chain of command increase
- messages can be disorted due to the chain of command increase
whats a flat organisational structure
-few or no levels of middle management between executives and employees
- Its goal is to have as little hierarchy as possible.
3 advantages of flat organisational structure
- feels like a team
- few managers needed
- quicker communication
3 disadvantages of flat structure
- large span of control
- less promotion oppourtunity
- if unorganised,the mistakes are more work for the business
whats a centralised structure
head office makes all decisions for branches, therefore branches get little power for decision making
3 advantages of centralised structure
- senior managers have experience
- decisions are beneficial, easier to meet overall objective
- economies of scale
3 disadvantages of a centralised structure
- stops new ideas
- less delegation means less motivation
- job satisfaction loss
whats a decentralised structure
managers of local branches make decisions
2 advantages of decentralised
- motivation
- an increase in new ideas may spark profit for the branch eg: environmental ideas
2 disadvantages of decentralised
- slow decision making as managers are less experienced
- less economies of scale as purchase orders are local
values of changing organisational design
- layering and delayering improves efficiency and communication
- competitiveness, responds faster than competitors
name the 3 types of human resource flow
- human inflow
- human outflow
- internal human flow
3 examples of human inflow
recruitment, selection, induction
2 examples of human outflow
dismissed, retirement
3 examples of internal human flow
promotions, redeployment, performance management
what 4 things should be included in a ‘job title’
- reporting to…
- purpose of job
- salary
- main duties
what should be included in a person specification
what qualities and skills are needed for the business
essential vs desirable
4 benefits of an internal human flow
- cheaper to employ
- quicker advertising
- candidates pre aware of business
- motivation for current employees
2 advantages of externally advertising job
reaches more candidates
new ideas brought in
define motivation
the art of getting people to do what you want, with them wanting to
what did Frederick Taylor say improves motivation
- motivated by money only
- incentives with financial rewards eg: piece rate pay
what did Elton Mayo suggest improves motivation
motivated by the people, a friendly team
- conducted productivity and social experiments
what did Maslow suggest improved motivation
following the hierarchy of needs
- each stage must be met before moving onto the next
what did Herzbag state improved motivation
- provided with motivating and hygenic factors
- unhygienic factors can cause a lack of motivation eg: lots of rules within the business
name 5 financial incentives
salary
commision
profit share
piece rate pay
performance pay
name 5 non financial incentives
job design
team working
flexibility
recognition
job enrichment
PIECE RATE PAY ADV AND DISADVANTAGES
- motivation increase
- overwhelming and draining
SALARY
ADV AND DISADV
guaranteed and promotion adjustments
no overtime pay
COMMISION
ADV AND DISADV
motivation to upsell
lies and bias?
PERFORMANCE RATED PAY
ADV AND DISADV
motivated
overexhausted
job design
ADV AND DISADV
clear and defined
boring?
employee recognition
ADV AND DISADV
motivates others
maybe recognising wrong ppl
FLEXIBILITY
ADV AND DISADV
comfortable, could lead to laziness
JOB ENRICHMENT
adv and disadv
a break for employees
more work
TEAM WORKING
adv and disadv
friendships, following Mayos theory
clashes and conflict
whats a trade union
an organisation established to protect and improve working conditions as well as pay of employees
benefits of trade union
- ## gives employees advice eg: maternity leave, legal help
whats a work council
workers and managers meet to discuss issues eg: pay and conditions
what does a work council do
allows workers to voice concerns without trade unions
what does EWC stand for
European Work Council
whats an employee commitee
group of employees, meeting and discussing issues.
work done can be discussed
name 4 influences on employee representation
nature of work i.e. low skill workers will have less input
leadership style eg: autocratic may oppose to much union
time, a business in crisis may want to speed up things
history and values of business
3 benefits if effective communications
- develops a strong employer brand
- improves motivation, job security?
- increases competitiveness
3 disadvantages of effective communication
- no opportunity for feedback, undervalued?
- no time to discuss with employees
- clash when 2 business’ merge
3 internal influences on setting HR objectives
culture ie. fast food vs turnover
other departments
funding available
4 external influences on HR setting objectives
- technology- recruitment skill
- economy- recruitment cost
- ethical and environment ie. 0 hour contract dissaproval
- law- employment laws
what objectives would HR install if labour productivity was low
replace employees or give them bigger incentives in hopes to motivate
what objectives would HR install if labour productivity was high
bonuses and rewards ( financial and non )
3 influences on organisational design
size of business
culture of business
objectives of business
whats working capital
amount of cash a business has available to pay day to day debts
how to find working capital
current assets- current liabilities
whats fixed capital
money used to buy non current assets
what does non realisable value mean
money a business could get by selling the stock in its current state
whats realisable value
amount paid for the stock
why do business calculate depreciation
because they need to ensure the asset value is a reflection of what they would get by selling it
what are suppliers interested in
working capital and how liquid your assets are
5 hard approach characteristics
employees seen as resources
hired on short term basis
managers believe employees are money motivated
appraisers are judged
training done to meet production
4 soft approach characteristics
employees most important resources
hired on long term basis
believes working is natural
training for development need
one adv two disadv of hard approach
increase in control means less mistakes
dont use employees to full potential, profit missed?
demotivation means high staff turnover
two adv two disadv of soft approach
increase staff morale- retention
loyalty
costs eg: investments like training
time consuming
whats venture capital
money invested in a project
adv of venture capital
offer opportunity for expansion
no need to repay
disadv of venture capital
company expected to grow rapidly
may loose ownership
whats current assets
any resource a company can turn to cash in a year
whats current liabilities
debts a business must pay back in a year
whats current liabilities
debts a business must pay back in a year
