Unit 6: Decision-making to Improve Human Resource Performance Flashcards
What is Human resource management?
Managing people
What HR objectives might a business set?
Training
Diveristy
Why do businesses set HR objectives?
Effective working environment
Good performance
Allocate resources
Soft HRM
Concentrate on the needs of employees- their roles, rewards, motivation
Hard HRM
Identify workforce needs of the business and recruit and manage accordingly (hiring, moving and firing)
Key features of Soft HRM
Long term workforce planning
Strong communication
Competitive pay structure
Employers are empowered
Feedback
Key features of Hard HRM
Short term changes
Minimal communications
Little empowerment
Minimum wage
Employee retention
The ability of an organisation to retain its employees
Labour turnover
Employees leaving in a given period
What factors can influence labour turnover?
Competitors
Working conditions
Pay
Type of business
What problems does high labour turnover cause?
High recruitment
Pressure on staff
Hard to maintain standards
Distribution
How could a business minimise labour turnover?
Effective recruitment
Staff loyalty
Rewards
Recruit right staff
Job empowerment
Labour Productivity
Amount of output that is obtained from each employee
Labour costs per unit
Average labour costs involved in producing one unit of output in a given time
Tall Organisational Structures
Many levels of hierarchy
Less people to manage
Longer to communicate
Lighter control
Flat Organisational Structure
Few layers of hierarchy
More promotion
Fewer opportunities
Delegation
Giving authority to others
Advantages of Delegation
Reduces management stress
Better decisions
Subordinates are motivated
Disadvantages of Delegation
Hard in small firms
Increase workload
Depends on quality
Job Empowerment
Giving employees the power to do their job
Job Empowerment Benefits
More motivated
Boosted reputation
Increase customer service
Better labour productivity
Job Empowerment Drawbacks
Difficult with low skilled workers
Blame
What is Job Design?
The task and responsibilities that are grouped into a specific job
Can have a significant influence on labour productivity
Hackman and Oldham
Believes that the task itself is key to employee motivation
Design jobs that add to employee motivation
Skill Variety
How many different skills and talents does the job require of a person
Task Identity
Is there a clear defined beginning, middle and end to a given task? Does a worker know what they need to do?
Task Significance
Will the job matter to people? is the job meaningful?
Autonomy
How much freedom does an individual have to accomplish the task?
Job Feedback
Is the employee kept in the loop about their performance?
Why might a business decide to change organisational structure?
Growth of the business
Reduce costs
Employee motivation
Customer service
What difficulties might a business face?
Manager and employee resistance
Disruption and less motivation
Costs
Negative impact on customer
Advantages of Delayering
Lower management costs
Faster decision making
shorter communication paths
Stimulating employee innovation
Delayering
Involves removing layers of management from the hierarchy
Disadvantages of Delayering
Wider spans of control
Potential loss of management expertise
Disadvantages of Centralisation
More bureaucratic
Lack of authority
Managers making decision’s without knowledge
Centralisation
Keep decision making firmly at the top of the hierarchy
Advantages of Centralisation
Easy to be implemented
Prevents other parts of business to be independent
Easier to coordinate
Economies of scale
Quicker decision
Decentralisation
Decision making is spread out to include more junior managers in the hierarchy
Advantages of Decentralisation
Decisions are made closer to the customer
Able to respond to local circumstances
better customer service
Improve staff motivation
Good way of training
Disadvantages of Decentralisation
Hard to get financial control
Diseconomies of scale
Hard to practice policies
How is the workplace changing?
Increase in part time working
More women seeking work
Ageing population
More flexible work hours
People move jobs
Technology changes
increase single parents
Advantages of part-time and flexible working
Cheaper to employ
More flexible
Range of potential recruit
Disadvantages of part-time and flexible working