Unit 6-decision making to improve HR performance Flashcards
what is the value of setting HR objectives?
-employment engagement and involvement: leads to motivation, higher productivity, higher quality output
-talent development: retention, development of skills
-training: development of skills
-diversity: acceptance and respect, understanding uniqueness and individual differences
-alignment of values: bringing together employee and business values
-number, skills and location of employees: making sure everything is in place
if a business fulfils all HR objectives, what might they benefit from?
-lower labour turnover
-higher labour retention rate
-higher productivity
-full compliance with any UK labour legislation
what are some external influences on HR objectives?
-economy: growing economy may be a greater requirement for HR
-political factors: variety of measures that affect HR planning. equality measures, minimum wage
-tech: reduced labour requirement, need for new skills
-competitive environment: changes in market and environment affect demand, will impact HR requirement
what are some internal influences on HR objectives?
-corporate objectives: need to have skilled workers available to prepare for corporate objectives
-type of product or service: skills of the workforce are appropriate for that particular product
what is labour turnover and what is the formula?
-refers to the proportion of a business’s staff leaving their employment over a period of time
no. leaving during the year/ avg. number of staff x100
what is labour retention and what is the formula?
-the number of employees with more than one year of service
no.of employees with 1 or more yrs of service/ overall workforce numbers x100
why might employees leave a business?
-low or inadequate wage levels, leading employees to defect to competitors
-poor morale and motivation
-buoyant local labour market offering more attractive opportunities
what is labour productivity and what is the formula?
-key measure of business efficiency and measures the output per employee over a specific time period
total output per time period/ no. of employees
labour costs as a percentage of turnover formula
labour costs/ turnover x100
labour costs formula
labour costs/ output
examples of internal data
-productivity
-unit labour costs
-retention rates
-labour turnover
-skills
-age profile of workers
-corporate objectives
examples of external data
-wage rates
-sales forecasts
-market trends
-competitor actions
-unemployment rates
-skills available
-operational capacity
what are organisational factors and how do they affect job design?
the nature of work and the culture of the business will determine the extent to which a business is able and willing to design jobs in such a way that enrichment and empowerment exist
what are environmental factors and how do they affect job design?
factors such as the employee availability and ability as well as social and cultural expectations
what are behavioural factors and how do they affect job design?
the extent to which job or task offers autonomy, diversity and the use of skills will determine the level of enrichment and empowerment possible and impact on job design
what is job design?
the process of deciding on the contents of a job in terms of its duties and responsibilities, on the methods that could exist between the job holder and superiors
what are the different methods used for job design?
-job rotation: switching the employees to other tasks with similar levels of complexity
-job enlargement: extends the employees’ range of duties, more tasks of similar nature
-job enrichment: include more challenging tasks, more responsibility
-empowerment: giving employees control over their working lives, team work, planning their own work, set targets, make own decisions
what does the Hackman and Oldham job characteristics model state?
That there are five core job characteristics: skill variety, task identity, task significance, autonomy, and feedback
what are the critical psychological states of Hackman and Oldham’s job characteristics model?
-skill variety, task identity and task significance: experienced meaningfulness of the work
-autonomy: experienced responsibility for outcomes of the work
-feedback: knowledge of the actual results of the work activities
what are the personal and work outcomes of Hackman and Oldham’s job characteristics model?
-high internal work motivation
-high quality work performance
-high satisfaction with work
-low absenteeism and turnover
what is organisational design?
the process of shaping the organisational structure so that the organisation can achieve its objectives effectively
what are the influences on the organisational design?
-span of control possible
-amount of delegation
-level of centralisation and decentralisation
-size of business
-life cycle of organisation
-corporate objectives
-technology
what is a hierarchy?
the way different levels of authority are ranked in an organisational structure
what is a chain command?
the order in which authority and power in an organisation are exercised and delegated from top management down
what is authority?
the power or right to give orders or make decisions
what is span of control?
the number of subordinates who can be controlled effectively by one manager
what does the span of control depend on?
-the ability of the manager
-the type of work
-the skills of the employees
what is a flat hierarchy?
-not many layers of management
>wider span of control
what is a tall hierarchy?
-where there is a lot of layers of management
>narrower span of control
what is delegation?
the granting of authority by one person to another for agreed purposes
what is centralisation?
concentrating all management and decision making power at the top of the organisational hierarchy
what is decentralisation?
redistributing decision making power away from a central location or authority
what are some influences on the level of centralisation and decentralisation?
-uniformity of decisions
-management style
-skills and availability of workforce
-economic influences
-technology
what is HR planning?
it is the process that identifies the current and future HR needs of an organisation in order to achieve its objectives
what is HR flow?
the movement of employees through an organisation, including recruitment, promotion and employment termination
what is job description?
sets out the duties and and tasks associated with a particular post
what is job specification?
sets out the qualifications and qualities required of an employee
what is performance appraisal?
a systematic and periodic process that assesses an employee’s job performance in relation to established criteria
what is redundancy?
when an employee is dismissed due to their job no longer existing
what is redeployment?
the process of moving existing employees to a different job or location
what is natural wastage?
the loss of employees from a business due to retirement, resignation or death
why might an employee be dismissed?
-gross misconduct: violence towards a customer or colleague, or theft, etc
-persistent minor misconduct: such as constant lateness even after warnings
-a substantial reason: such as not agreeing to new reasonable terms of employment
what are some potential benefits of a motivated an engaged workforce?
-productivity: work harder, produce more, extra work
-recruitment and retention: employer of choice, retain its workers
-absenteeism: will be lower
-innovation: more ideas
-profitability: likely to be higher
what is motivation?
-the will to work due to enjoyment of the work
what were Taylor’s ideas of motivation?
-people are solely motivated by money
-efficiency improves productivity, competitiveness and profits
-workers should have no control over their work
-social aspect of work is irrelevant and should be ignored
what were Mayo’s ideas of motivation?
motivation depends on:
-the type of job and the type of supervision
-group relationships, morale and individual’s sense of worth
what are the parts of Maslow’s hierarchy of needs?
-physiological: the need for food, shelter, water and sex (basic need)
-security: the need to be free from threats and danger (basic need)
-social: the need to love and be loved, and to be part of a group (higher level need)
-esteem: the need to haver self-respect and respect for colleagues (higher level need)
-self-actualisation: the need to develop personal skills and fulfil one’s potential (higher level need)
what were Herzberg’s ideas of motivation?
-motivators: positive factors that give people satisfaction (eg: recognition, bonuses) and increase productivity as motivation increases
-hygiene factors: factors that may cause dissatisfaction. improving hygiene factors will reduce dissatisfaction. (eg: pay, fair treatment, good working conditions)
what financial methods can you use for motivation?
-wages and salaries
-piece-rate pay
-commission
-profit-related pay
-performance-related pay
what are non financial methods of motivation?
-meaningful work
-involvement (with decision making process)
-responsibility and recognition
what are some factors that might influence the choice and effectiveness of reward systems?
-finance
-nature of the work
-culture
-external factors
what might have an effect on how involved and appreciated employees feel in the business?
-management style
-nature of the work
-legislation
what is a trade union
an organised group of employees that aims to protect and enhance the economic position of its members
what do trade unions do?
-negotiate pay and conditions of work
-discuss major changes in the workplace, such as redundancy and help protect job security
-provide financial and legal advice, as well as other services
why have there been a decrease in the number of people who are part of a trade union?
-legislation: controls the activities of trade unions
-decline of traditional industries: coal mining, steel and ship building
-increasing number of small businesses: not strongly unionised
what are work councils?
a body composed of both employer and employee representatives convened to discuss and negotiate on matters of common interest including pay and conditions
what areas can the value of a good employee-employer relationships be seen in?
-productivity: employees are more likely to be motivated, less wastage and better quality
-employee loyalty: labour turnover rates likely to be lower and higher retention rates
-decision making: likely to be taken faster, introduction of change easier
