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Business > Unit 6: HR > Flashcards

Unit 6: HR Flashcards

1
Q

What is human resource management

A

The design, implementation and maintenance of strategies to manage ppl for optimum business performance

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2
Q

Give 5 functions of human resource management

A
  • training and development
  • fringe benefits
  • wage and salary systems
  • consultations
  • collective bargaining
  • appraisal
  • employee legislation
  • recruitment and selection
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3
Q

Give 4 HR objectives

A
  • employee engagement and involvement
  • talent development
  • training
  • diversity
  • number, skills and locations of employees
  • maintaining good employer-employee relations
  • alignment of values
  • maximising labour productivity and minimising labour costs
  • ensuring HR is employed cost effectively
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4
Q

Give 3 benefits of setting HR objectives

A

If obj are SMART, decisions by different staff will all be consistent

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5
Q

Give 2 values of effective HR objectives

A
  • HR is linked with customer service and quality (2 key components of competitiveness)
  • helps create an effective working environment
  • connects HR activities and decision making with overall business obj
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6
Q

What are 3 problems with setting HR objectives

A
  • external changes not always easy to predict so objectives may be based on incorrect assumptions
  • obj may conflict
  • if objectives are imposed rather than agreed, employees may not put in effort
  • if obj too ambitious then HR objectives will lose their value
  • business may not have sufficient resources / large enough budget
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7
Q

Name 4 internal influences on HR objectives

A
  • overall business aims
  • available finances/ resources
  • corporate culture
  • e-e relations
  • organisational structure
  • whether businesses use hard or soft HRM approach
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8
Q

Give 2 examples of external influences on HR objectives

A

P - EU legislation on areas such as max working time
E - recession 2009/10 placed pressure on HR department to reduce staffing costs
S - increased emphasis on work-life balance = more flexible working
T - must ensure relevant staff trained with IT
Market factors e.g. loss of market share to competitors

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9
Q

What is the aim of the hard HRM strategy

A

Utilise employees as efficiently as possible by directing them and simply treating them as a resource

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10
Q

What style of management are businesses that use hard HRM stataegy likely to use

A

Autocratic/authoritarian

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11
Q

There is a lot of communication from top down with the hard HRM strategy

TRUE or FALSE

A

FALSE

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12
Q

What is the pay likely to be like with the hard HRM strategy

A

Enough to recruit and retain workers e.g. minimum wage

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13
Q

Would a business that uses the hard HRM strategy have a centralised or decentralised organisational structure

A

Centralised

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14
Q

How do managers that use hard HRM strategy believe employees should be treated

A

They need to be monitored, used efficiently and have their costs controlled

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15
Q

What is an advantage of the hard HRM strategy

A

It might result in a more cost effective workforce where decision making is quicker

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16
Q

What is a disadvantage of the hard HRM strategy

A
  • may suffer from high absenteeism and staff turnover
  • may have less successful recruitment
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17
Q

What 4 things does the soft HRM focus on

A
  • motivational issues
  • organisational structure
  • leadership approaches
  • industrial relations
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18
Q

Businesses that use the soft HRM approach treat employees as the most important resource and a source of competitive advantage

TRUE or FALSE

A

TRUE

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19
Q

What style of management are businesses that use soft HRM stataegy likely to use

A

Democratic

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20
Q

Businesses that use the soft HRM approach are unlikely to be in favour of delegation and decentralisation

TRUE or FALSE

A

FALSE

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21
Q

Give 2 features of the soft HRM approach

A
  • strong 2 way communication
  • competitive pay structure
  • suitable performance related rewards
  • likely to encourage high levels of employee participation
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22
Q

What is a problem with the soft HRM approach

A

Being ‘too soft’ may lead to competitive disadvantage because workforce costs are too high due to employee benefits

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23
Q

What’s an advantage of the soft HRM strategy

A

Motivates staff

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24
Q

Whether a business chooses hard or soft HRM depends on what 3 things?

A
  • Their history and cultures
  • Attitudes of managers
  • Skills and attitudes of staff
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25
Q

Give 3 benefits of effective HRM

A
  • more motivated and committed staff
  • greater loyalty
  • lower labour turnover
  • higher retention rates
  • less absenteeism
  • greater productivity
  • lower labour costs per unit
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26
Q

What is labour turnover

A

The proportion of ppl who leave an other in a given time period

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27
Q

How do you calculate the rate of labour turnover

A

(Number of employees leaving ÷ average number employed) x 100

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28
Q

How do you calculate retention rates

A

(Number of employees with 1 or more yrs of service ÷ overall workforce number) x 100

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29
Q

Give 3 problems associated with high labour turnover and low retention rates

A
  • high recruitment and selection costs
  • increased pressure on remaining staff
  • increased induction and training costs
  • need to redesign jobs to keep them simple so it’s easier to replace staff
  • reduced productivity due to disruption caused by skilled staff leaving
  • low morale due to constant change of work colleagues
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30
Q

Give 3 internal causes of high labour turnover and low retention rates

A
  • ineffective leadership and management techniques
  • poor communications
  • wages and salaries lower than competing firms
  • boring/unchallenging jobs
  • poor working conditions
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31
Q

Give an external causes of high labour turnover and low retention rates

A
  • other jobs are more attractive
  • improving economy means more employment opportunities available so there’s more vacancies for attractive jobs
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32
Q

Give 2 ways of improving labour turnover and retention rates

A
  • exit interviews
  • monitoring and benchmarking
  • reducing turnover of long term workers by rewarding them
  • effective recruitment and selection
  • induction and training
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33
Q

Give 3 factors that affect staff turnover

A
  • type of business
  • pay/other rewards
  • competitors actions
  • employee loyalty
  • labour mobility
  • economic conditions
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34
Q

Give 2 factors that influence labour productivity

A
  • extent and quality of fixed assets
  • skills, ability and motivation of workforce
  • extent to which workforce is trained
  • methods of production organisation
  • external factors
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35
Q

How do you calculate labour costs per unit

A

Total labour costs ÷ total units of output

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36
Q

Give 3 strategies to increase labour productivity and reduce labour costs per unit

A
  • recruitment & selection of suitable skilled and trained employees
  • provision of training
  • appropriate remuneration and non-financial benefits to improve motivation
  • improved working practices e.g. include employees in decision making
  • improved tech and capital equipment
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37
Q

Give 2 specific ways of reducing labour costs per unit

A
  • holding down wages
  • outsource production
  • relaxed workers with machinery & tech
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38
Q

How do you calculate employee costs as a percentage of turnover

A

(Employee costs ÷ sales turnover) x 100

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39
Q

A business is likely to be more successful in increasing labour productivity if it ensures that…

A
  • employees recognised why it needs to be increased
  • jobs not lost/kept to minimum
  • employees gain reward as a result
  • employees involved in changes
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40
Q

Give 3 ways absenteeism influences labour productivity and labour costs

A
  • covering for employees adds to costs
  • have to pay employees who now need to work overtime = increased costs
  • can lead to important work not being completed = delayed production

-if new, less skilled staff have to be used, quality could be sacrificed = dissatisfied customers

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41
Q

Give 4 strategies to minimise rates of absences

A
  • introduce more flexible working practices
  • ensure jobs are interesting and challenging
  • improve working conditions
  • improve employer employee relations
  • understand causes, set targets and monitor trends
  • have clear sickness and absence policies
  • introduce attendance bonuses - can be bad long term if employees get used to it
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42
Q

How do you calculate absenteeism (2 formulas)

A

(No. of staff absent during period ÷ No. employed staff during period) x 100

(No. days taken off for unauthorised absence during period ÷ total days worked by workforce over the period) x 100

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43
Q

How do you calculate revenue per employee

A

Revenue ÷ current number of employees

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44
Q

What does revenue per employee show

A

How effectively a business is using its labour resources

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45
Q

What is the aim of job design

A

To improve motivation, job satisfaction and give a sense of personal achievement by reducing repetitive aspects of work and increasing responsibility in work

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46
Q

What is the final goal of job design

A

To reduce labour costs and improve labour productivity without offering monetary reward

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47
Q

Why does the external environment influence job design

A

Designs of jobs should be sustainable and ensure an org can respond flexibly and quickly to changes in external environment

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48
Q

Give 3 external influences on job design

A
  • the fast paced change
  • tech developments
  • levels of education that influence availability of certain skills
  • social changes
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49
Q

Give 3 employee related influences on job design

A
  • ensuring the safety and well-being of staff
  • job satisfaction
  • employee skills and capabilities
  • ensuring stress is minimised and job security assured to maintain motivation
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50
Q

Give 3 organisational influences on job design

A
  • the need to maintain quality
  • the nature, range and volume of tasks
  • ergonomics
  • purpose of the org
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51
Q

What are the four models of organisational structure

A
  • functional
  • matrix
  • geographical/regional
  • product-line based
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52
Q

What is the functional organisational structure

A

The traditional organisational structure which is organised according to the diff functions present in a business e.g. HR, finance etc

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53
Q

Give 2 features of the functional organisational structure

A
  • based on hierarchy (each department operates separately under the leadership of those above it)
  • relatively inflexible structure
  • employees w/ specialist skills are employed in relevant departments
  • size of department varies according to business needs
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54
Q

What is the matrix organisational structure

A

Business organised so that hierarchal and functional approaches are combined and often used in orgs that are highly project based

(tends to be used alongside functional organisational structure not instead of it)

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55
Q

Give 2 features of the matrix organisational structures

A
  • more flexible
  • gives ppl in diff departments the
    opportunity to use their ability and share their knowledge
  • each team member can end up with 2 bosses (department boss and project leader)
  • enables individual projects to be better coordinated and allows possibility of teamwork and collaboration (synergy)
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56
Q

What is the geographical organisational structure

A

This is usually a variant of the functional organisational structure where a business is organised according to location of operations

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57
Q

What type of organisation is likely to use the geographical organisational approach

A

Businesses that operate across national boundaries

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58
Q

What is the product-line based organisational structure

A

Where a business is organised according to the different products made by the business

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59
Q

What did early approaches of organisational design focus on

A

Structures and tight managerial control

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60
Q

What is span of control

A

The number of subordinates a manager is required to supervise directly

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61
Q

Do managers with many subordinates have a wide or narrow span of control

A

Wide

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62
Q

How can span of control he enlarged

A

By making workers more autonomous and more capable of managing themselves

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63
Q

What does a narrow span of control mean

A

There’s close supervision of employees

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64
Q

What does a wide span of control mean

A

Subordinates have more freedom

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65
Q

Is a wide or narrow span of control more appropriate if labour costs are high

A

Wide

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66
Q

Does a wide or narrow span of control lead to better communication

A

Narrow

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67
Q

What does hierarchy refer to

A

The number of layers of management/supervision in an organisation’s structure

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68
Q

Name 3 features of a tall structure/hierarchy

A
  • many layers
  • narrow spans of control
  • tighter control/ less delegation
  • longer chain of command
  • usually more staff due to the higher amount of layers (higher costs)
  • important details may be lost through layers
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69
Q

Name 3 features of a flat structure/hierarchy

A
  • few layers
  • wide spans of control
  • less direct control/ more delegation
  • staff given greater responsibility
  • vertical communication improved
  • shorter chain of command
  • lower costs due to less staff
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70
Q

What is delayering

A

Reducing the number of layers in a hierarchy

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71
Q

Give 3 benefits of delayering

A
  • lower labour costs
  • faster decision making
  • shorter communication paths
  • stimulating employee innovation
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72
Q

What is delegation

A

The process of passing authority down the hierarchy from a manager to a subordinate

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73
Q

Give 3 advantages of delegation

A
  • reduces managements stress and workload
  • allows senior management to focus on key tasks
  • subordinate empowered and motivated
  • subordinates might have better knowledge = better, informed decisions
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74
Q

Give 3 disadvantages of delegation

A
  • depends on quality/ experience of subordinates
  • harder in small firms
  • less effective in emergency situation
  • may increase workload and stress of subordinates
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75
Q

Give a way businesses can improve the effectiveness of delegation

A
  • should be based on mutual trust between manager and subordinate
  • selecting the right person to delegate to
  • the tasks & responsibilities to be delegated need to be explained clearly
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76
Q

What is centralisation

A

The degree to which authority is delegated within the organisation

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77
Q

Give 2 features of centralised structures

A
  • greater degree of central control
  • decision making firmly at top of hierarchy
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78
Q

Give 2 advantages of centralised structures

A
  • easier to implement common policies and practices for whole org
  • decisions can be made quickly
  • useful in times of crisis
  • easier to coordinate and control form from centre
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79
Q

Give 2 disadvantages of centralised structures

A
  • manager of a local branch may auger better knowledge
  • lack of authority down hierarchy may reduce manager motivation
  • may lengthen decision making process
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80
Q

Give 2 features of decentralised structures

A
  • greater degree of delegated authority
  • less uniformity in how things are done as decisions likely to be made in relation to local circumstances and opportunities
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81
Q

Give 2 advantages of decentralised structures

A
  • better able to respond to local circumstances
  • their local knowledge may have beneficial effect on sales
  • can empower local managers = more innovation and motivation
  • consistent with aiming for a flatter hierarchy
82
Q

Give 2 disadvantaged of decentralised structures

A
  • customers may not like reduction in uniformity
  • focusing on local issues = may not see the bigger picture
  • harder to ensure consistent practices and policies at each location
  • harder or achieve tight financial control
  • may be some diseconomies of scale
83
Q

Give 5 influences on organisational design and structure

A
  • business objectives
  • size of organisation
  • nature of organisation
  • external environment
  • HR processes and systems
  • culture & attitude of senior management
  • skills and experience of workforce
84
Q

Why is organisational design valuable

A

In order to meet corporate objectives effectively, an org might need to adjust the roles of the workforce and how the workforce is organised. This can improve efficiency and maximise performance

85
Q

What does managing inflow involve

A

Decisions about recruitment, selection and induction of new employees

86
Q

What does managing internal flow involve

A

Decisions about transfers, redeployment, promotions/demotions and about training, evaluating employee performance and rewarding them

87
Q

Why is it important internal flow is managed

A

To ensure employees skills are developed to meet orgs needs whilst satisfying employees own career aspirations

88
Q

What does managing outflow involve

A

Decisions about when and how employees leave an org (retirement, redundancy, dismissal)

89
Q

Give the 3 influences on the HR flow

A
  • organisational requirements
  • individual needs
  • external environment
90
Q

What are the 3 key elements of HR planning

A
  • forecasting labour demand
  • analysing present labour supply
  • balancing projected labour demand and supply
91
Q

What are the stages in HR planning

A
  1. Setting objectives
  2. Forecasting future demand for labour
  3. Assessing current workforce
  4. Identifying a shortfall/oversupply between current workforce and the one needed in the future
  5. Reviewing internal/external supply of labour in relation to future requirements
  6. Developing strategies to fill gaps or reduce oversupply of labour
92
Q

Give 3 internal influences on HR plans

A
  • orgs corporate or strategic plan
  • an orgs marketing & production plans
  • financial position of the org
  • the internal labour supply
  • issues that result in changes to labour turnover
  • the organisation of work
93
Q

Give 3 external influences on HR plan

A
  • market conditions
  • labour market and demographic trends
  • economy and gov policy
  • legislation
  • local factors e.g. travel to work patterns
94
Q

What could happen if a HR plan is imposed and not accepted by employees

A

It could cause industrial unrest and result in a negative image of the business

95
Q

What 4 things must be happen for a successful HR plan

A
  • good e-e relations
  • widely accepted plan
  • have sufficient financial resources
  • extensive training
96
Q

Give 2 reasons why HR plans are valuable

A
  • it ensures an org has a sufficient and appropriately skilled workforce to meet objectives
  • enables an org to avoid labour shortages
  • effective HR planning ensures problems don’t occur
  • it ensures managers are prepared for events when they occur instead of reacting to events as they happen
97
Q

Give 2 advantages of part time staff

A
  • cheap to employ
  • more flexible workforce
  • wide range of potential recruits
98
Q

Give a disadvantage of part time staff

A
  • employees feel less loyal to the business = less motivated
  • harder for managers to coordinate and control workforce
99
Q

Give two advantages of internal recruitment

A
  • employees ability already known
  • internal promotion opp = motivated workforce
  • recruitment and selection process quicker
  • shorter induction period
  • less expensive
100
Q

Give 2 disadvantages of internal recruitment

A
  • creates another vacancy elsewhere in org that needs to be filled
  • no new ideas introduced from outside
  • limits number of potential applicants
101
Q

Give 3 advantages of external recruitment

A
  • larger choice of well qualified applicants
  • overcome jealousies that may occur due to colleagues promotion
  • brings in new ways of thinking
  • can help from better understand how other firms operate
102
Q

Give a disadvantage of the external recruitment

A
  • longer process
  • more expensive due to ads and interviews required
103
Q

Give 3 things training is usually a response to

A
  • high labour turnover
  • changes in legislation
  • development and introduction of new products/services
  • development and introduction of new tech
  • restructuring of a firm
104
Q

Give 2 reasons why businesses need training

A
  • to support new employees
  • improves productivity
  • support employee progression and promotion
  • support high standards of customer service and production quality
  • increase marketing effectiveness
105
Q

Give 3 benefits of training

A
  • helps new employees reach level of performance expected of experienced workers
  • ensures employees have necessary skills and knowledge
  • increases efficiency and productivity
  • encourages employees to deal with/ change more effectively
  • improves image (customers have more confidence in trained staff)
106
Q

Name 2 business issues that training can’t solve

A
  • poor management
  • ineffective/ inefficient equipment
  • poor job design
  • poor production organisation
107
Q

What is the aim of induction training

A

To help new employees settle in quickly

108
Q

What are the 3 benefits of induction training

A
  • reduced labour turnover
  • increased motivation
  • employees can contribute to org more quickly
109
Q

Name a method of on the job training

A
  • demonstration/instruction
  • coaching
  • job rotation
  • projects
110
Q

Give an advantage of on the job training

A
  • cheaper/ more cost effective
  • no loss of output
  • realistic environment
111
Q

Give a disadvantage of on the job training

A
  • quality of training depends on ability of training and time available
  • bad habits/shortcuts may be passed on
  • learning environment may be noisy and stressful
112
Q

Name a method of off the job training

A
  • part time attendance at college
  • professional development courses
  • online training
113
Q

Give an advantage of off the job training

A
  • less immediate pressure from work
  • often uses specially trained experts
  • employees can be more confident when starting job
  • easier to monitor progress
114
Q

Give a disadvantage of off the job training

A
  • more expensive
  • lost working time and potential output
  • employees have new skills and may leave for better jobs
115
Q

Give 2 reasons why business neglect training

A
  • takes time
  • sometimes benefits are more intangible (morale) than tangible
  • desire to minimise short term costs
  • fear employees will be poached by competitors
116
Q

Give an advantage of redeployment

A
  • maintains job security for employees
  • business retains skill and experience
  • labour resources allocated more efficiently
  • reduced costs of recruitment and selection
117
Q

Give 2 ways of avoiding redundancy in the short term

A
  • natural wastage and recruitment freezes (employees that leave aren’t replaced)
  • encouraging early retirement
  • short time working (staff have lower weekly hours)
  • redeployment
  • ATR schemes
118
Q

Give 2 things selection for redundancy should be based on

A
  • length of service
  • attendance records
  • work experience
  • performance records
  • skills, competencies and qualifications
119
Q

What is an outplacement service and what is the aim

A

A service that provides the opportunity for employees likely to be made redundant to refresh their interview skills, redraft CVs etc

It aims to maintain morale

120
Q

Give a cost of redundancy

A
  • redundant pay

Costs due to loss of morale:
- high labour turnover
- loss of output

121
Q

What 3 things does CIPD suggest about people’s engagement

A
  • women tend to be more engaged than men
  • younger workers less engaged than older workers
  • those on flexible contracts more engaged than those not
122
Q

What are the 3 types of engagement

A
  • intellectual (thinking about job and how to do it better)
  • affective (feeling positive about doing a job)
  • social (takes opportunities to share work)
123
Q

Give 3 benefits from having motivated and engaged employees

A
  • improved productivity
  • reduced costs
  • improved reputation for org
  • improved likelihood of meeting orgs objectives
  • competitive advantage
  • improved work ethic
124
Q

What does Taylor believe is the main motivator for workers

A

Money

125
Q

What does Taylor believe the most beneficial method of financial motivation is

A

Piecework

126
Q

What are the 3 main ways of improving productivity and efficiency according to Taylor

A
  • extreme division of labour
  • payment by piecework
  • tight management control
127
Q

What’s the problem with extreme division of labour

A

It makes jobs boring and repetitive which can cause low morale and poor industrial relations

128
Q

Where is Taylor’s view implemented in the modern world

A

Amazon (piecework approach in warehouses)

129
Q

How many levels of human needs are there according to Maslow

A

5

130
Q

How does Maslow’s hierarchy of needs work

A

Only once lower level of need has been fully net would a worker be motivated by the next opportunity of having best need up in hierarchy satisfied

131
Q

What are the 5 levels of needs in Maslow’s hierarchy of needs in order of what needs to be met first to last

A
  • self-actualisation
  • esteem
  • social
  • safety
  • physiological

(Needs to be fulfilled bottom to top)

132
Q

What is physiological in terms of Maslow’s hierarchy of needs

A

Basic needs such as good, shelter, clothes - an income in needed to acquire these

133
Q

What is safety in terms of Maslow’s hierarchy of needs

A

Safe working environment; job security

134
Q

What is social in terms of Maslow’s hierarchy of needs

A

Feeling wanted, sense of belonging, part of team

135
Q

What is esteem in terms of Maslow’s hierarchy of needs

A

Self respect; need to receive feedback, gain recognition, status for achievement and opportunities

136
Q

What is self-actualisation in terms of Maslow’s hierarchy of needs

A

Intellectual needs, fulfilling potential, achieving targets

137
Q

What’s an issue with Maslow’s hierarchy of needs

A

The theory makes broad assumptions
(It’s questionable whether social needs come before esteem needs for everyone)

No empirical evidence for theory - didn’t test his theory out on large group of workers

138
Q

What is Herzberg’s two factor theory

A

Some factors can have potential to provide positive job satisfaction (motivators) while others can only reduce dissatisfaction (hygiene/maitenance)

139
Q

Name 3 motivators according Herzberg’s two factor theory

A
  • sense of achievement
  • recognition for effort & achievement
  • nature of work
  • responsibility
  • promotion & improvement opportunities
140
Q

Name 3 hygiene/maintenance factors according Herzberg’s two factor theory

A
  • pay
  • working conditions
  • interpersonal relations
  • supervision (especially if staff feel over supervised)
  • company policy and administration (paperwork, rules, red tape etc)
141
Q

What’s the difference between movement and motivation

(Herzberg)

A

movement is a short-term motivation e.g. reward based systems like bonuses

Motivation = long term

142
Q

What’s a criticism of Herzberg’s two factor theory

A

His sample was only of 200 accountants and engineers

143
Q

What was right about Herzberg’s two factor theory

A

Inadequate wages can create immense dissatisfaction

144
Q

What’s the link between Maslow’s and Herzberg’s theories

A

Self-actualisation and esteem = motivators

Social, safety and physiological = hygiene factors

145
Q

What is piecerate and what’s good about it

A

Paying per item produced in a certain period of time

Provides incentive to work hard and encourages high speed production

146
Q

Give two disadvantages of piecework as a financial method of motivation

A

-may encourage staff to focus on quantity at expense of quality = greater
levels of scrap & low quality = increased costs

-firms output heavily influenced by workers needs rather than customer demand

-Herzberg = this type of reward system reinforces repetitive tasks linked to
pay = likely to increase resistance to change bc change slows production in
short term

-ineffective bc it doesn’t change employees commitment / attitude to work

147
Q

What is commission

A

financial incentive linked to achievement of sales. A reward for quantity or value of work achieved

148
Q

What are the two types of commission and explain them

A

Flat rate commission which is where a percentage that’s likely to depend on amount of effort involved in making a sale

ramped commission which is where the percentage of commission rises as certain targets are met

149
Q

Give an advantage of commission as a financial method of motivation

A
  • clear link between sales & remuneration
  • enables high performing sales ppl to earn large amounts in accordance w/ their efforts
  • encourages employees to work hard = increased productivity = more sales =
    more revenue
150
Q

Give a disadvantage of commission as a financial method of motivation

A
  • employees w/ no base pay = no reliable, regular income to depend on
  • Being paid on commission invites dishonesty to makes more sales = earn more
  • sales may be infuenced by factors outside employees control
151
Q

What is a salary scheme

A

workers paid according to given time period - hourly rate, weekly wage or annual salary (paid monthly)

152
Q

Give an advantage of salary schemes

A
  • relatively simple & cheap to administer & allows labour costs to be forecasted w/ accuracy
  • the security provided by salary schemes may motivate workers
  • may be fewer disputes than under systems linking pay to performance
153
Q

Give a disadvantage of salary schemes

A
  • doesn’t provide direct incentive to improve productivity
  • payment by time is payment for input rather than output.
154
Q

What is performance related pay

A

A payment to those employees who meet certain targets

(usually employed in situations cnere piece-rate a commission not appropriate be work carit be mearured in a precise way)

155
Q

Give an advantage of performance related pay

A
  • useful for getting staff to work towards orgs obj by establishing individual targets at appraisal that are linked to corporate objectives
  • senior managers can easily monitor & assess individual performance during appraisal process
156
Q

Give a disadvantage of performance related pay

A
  • may become source of conflict between staff who are recieving diff pay for what they percieve to be the same effort
  • discourages team based approach
  • PRP = small proportion of salary - effect on motivation = debatable
157
Q

What is profit sharing

A

When a proportion of a firm’s profit is divided among employees in form of a bonus

158
Q

What’s an advantage of profit sharing

A
  • creates sense of team effort - helps remove barriers betreen employees & managers
  • employees likely to accept changes if they can see profits will increase
159
Q

What’s a disadvantage of profit sharing

A
  • unless the profit share amounts to a reasonable proportion of salary, employees unlikely to consider it a significant incentive
  • not linked to performance = workers put in less effort knowing all employees receive the same reward
160
Q

Give 2 reasons why financial incentives are used

A
  • firms want to overcome/ reduce resistance
  • managers see money as means of control
  • firms looking to meet short term goals & financial reward = best way
  • firms want to recognise & reward individual effort
161
Q

What is job enlargement

A

increasing the scope of a job by job rotation or job enrichment

162
Q

What is job rotation

A

When a job is expanded horizontally by giving the workers more tasks but the same level of responsibility

163
Q

What is job enrichment

A

When the job is expanded vertically by giving the worker more responsibility & offering them challenges that allows them to utilise their skills fully

164
Q

Give an advantage of job rotation

A
  • Relieves boredom = improved motivation
  • more motivated bc of wide range of skills & they become more flexible
  • greater sense of participation
165
Q

Give a disadvantage of job rotation

A
  • retraining costs
  • could be seen as involving a greater number of boring tasks
166
Q

Give an advantage of job enrichment

A
  • develops workers unused skills & presents them with challenges
  • allows staff to make greater contribution to decision making process
  • enhances workers promotional prospects
167
Q

Give a disadvantage of job enrichment

A
  • some might find whole process intimidating & feel unwanted pressure
  • could be viewed as attempt to get more out of workers while paying the same rate
168
Q

Is empowering employees a financial or non-financial method of motivation

A

Non-financial

169
Q

Give 2 things empowerment of employees involves

A
  • recognising workers are able to do more
  • making workers feel trusted & confident to carry out jobs a make decisions
  • creating an environment where workers wish to contribute & be involved
170
Q

Name 2 things empowering employees can lead to

A
  • improved motivation
  • reduced labour turnover
  • reduced absenteeism

(overall increased productivity)

171
Q

What’s good about teamworking

A

You have a more motivated , flexible workforce that can cover absences more
easily

172
Q

Name 4 factors that influence choice & assessment of financial and non-financial methods

A
  • organisational design
  • nature of job and nature of employees
  • quality of communication
  • timescale involved
  • organisational culture
  • size of organisation
  • State of economy & success of an organisation
  • research findings
173
Q

Give 3 influences on employee involvement in decision making

A
  • organisation size
  • external environment
  • style of leadership
  • quality of communication
  • organisational culture
174
Q

Define employee representation

A

when employees are part of a formal structure for involving them in decision-making process

175
Q

What is it a legal requirement to consult employees on

A
  • proposed redundancy programmes
  • changes to pension arrangements
  • proposed changes to worktime arrangements
176
Q

Give a reason for a formal system of employee representation

A
  • Makes employees views known to management
  • strengthens management’s & employees’ understanding of workplace issues & other matters affecting the business
  • helps create atmosphere of mutual trust & therefore improve workplace relations
177
Q

Give an advantage of employee representation

A
  • increased empowerment & motivation of workforce
  • better decision making bc employee experience & insight taken into account
  • lower risk of industrial disputes
178
Q

Give a disadvantage of employee representation

A
  • time-consuming (potentially slows decision making)
  • conflicts between employer & employee interests may be a block to essential change
  • managers may feel their authority is being undermined
179
Q

Name 3 methods of employee representation

A
  • employee groups
  • trade unions
  • democratic style of management
  • suggestion schemes
  • works councils
  • worker directors
180
Q

Give the 3 main roles of trade unions

A
  • Protect & improve incomes of their members
  • Provide / improve job security
  • protect workers against unfair dismissal & other issues relating to employment legislation
  • offer range of other work related services including support for ppl claiming compensation for injuries sustained in a job
  • provide info, advice & member services
181
Q

What are the 2 main functions of trade unions

A

Negotiations (negonate on benalf of emplouces w/ employer/management)

representations (represent & protect interest of employees)

182
Q

Give 2 ways trade unions benefit employers

A
  • provides a valuable communication link between senior management & workforce
  • negotiating w/ TU saves time & cost rather than dealing w/ all employees individually
  • may encourage management to take workers’ needs seriously = improved morale = improve productivity
  • presence of TU may ease significant changes eg relocation, redundancy
183
Q

Give a reasons why trade unions are in decline

A
  • decline in employment in manufactering (where union membership traditonally high)
  • increased employment in service sector where unions less well established
  • significant growth in flexible working = employees see less need for union protection
184
Q

In what circumstances does industrial action usually take place

A

When an industrial dispute doesn’t work in resolving the issue

185
Q

What is industrial action

A

measures taken by employees to halt/slow production or disrupt services in order to put pressure on management during an industrial dispute

186
Q

Give 2 methods of industrial action

A
  • strike
  • work-to-rule
  • go-slow
  • overtime ban
187
Q

Give one way a business may be damaged by industrial action

A
  • lost sales & profits from loss of output
  • damaged relationship with staff: poor motivation, communication a productivity
  • damage to customer satisfaction
188
Q

Give one way employees may be damaged by industrial action

A
  • lost/reduced earnings
  • closure of business/redundancies
  • Support from public may decline if action affect them
189
Q

Give 2 ways a business can avoid industrial disputes

A
  • Regular consultations w/ trade unions = pick up problems before they escalate
  • an employee consultant body to discuss major issues as they arise
  • team/ group meeting & feedback sessions
190
Q

What are the 3 ways to setting disputes and describe them

A

mediation - independent, impartial person helping ppl reach a solution

conciliation - concilator helps both parties reach better undersanding of others position

arbitration - alternative to court of law & held in private rather than in public

191
Q

What is the role of a works council

A

To review a company’s plans, provide opp to consult & gain views of workforce
training & development programmes, compliance with/ legislations, employee welfare issues etc.

(compliments role of trade unions)

192
Q

What are intermediaries

A

individuals/groups within communication channels through
whom messages must be passed in order to reach the intended recievers

193
Q

The greater the number of intermediaries, the longer the chain of command

TRUE or FALSE

A

TRUE

194
Q

Does a greater number of intermediaries lead to more effective communication

A

No - it slows it down and may lead to communication being distorted

195
Q

Delayering and flatter hierarchies are features of unsuccessful orgs

TRUE or FALSE

A

FALSE

196
Q

Name 2 things that make communication more difficult

A
  • different languages
  • too many intermediaries
  • inadequate understanding of corp obj
197
Q

What’s a problem with too much communication

A

can lead to communication/info overload & adversely affect decision- making & e-e relations

198
Q

What’s an advantage of worker participation

A
  • enhances business performance
  • orgs w/ strong employee involvement growing quicker than those w/out
199
Q

Give a link between motivation and e-e relations

A
  • well-motivated employees likely to communicate w/ management by suggesting ideas, listening to advice & contbuting their opinions
  • theories of motivation suggest employees happier if they feel involved & their views are valued by management
  • effective communications & e-e relations encourages more motivated workfore & helps employees develop commitment
200
Q

Give a link between competitiveness and e-e relations

A

good communications & effective e-e relations = more competitive by improving efficiency & identifying oppurtunities

Business (9 decks)

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