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Business > Unit 6 - Human Resources > Flashcards

Unit 6 - Human Resources Flashcards

1
Q

What is human resource management?

A

The management of people at work

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2
Q

What is job analysis

A

Analysing the responsibilities, activities, duties, skills/ equipment of the job

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3
Q

What does managing employee relations involve?

A
  • disciplinary procedures and relations
  • dispute settlement
  • managing employee grievances
  • trade union negotiations and consultation
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4
Q

What does the alignment of values involve?

A
  • promote the company’s values
  • reward employee engagement with company’s values
  • create a sense of employee pride within the organisation
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5
Q

What does developing talent involve in the business?

A
  • delegating responsibility to employees
  • investing into skills and knowledge training
  • allowing employees to pursue their own goals
  • providing opportunities for promotion and advancement
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6
Q

How do we improve employee engagement?

A
  • consult employees
  • making them feel valued and equal
  • give them a voice in the business
  • appraisal and target setting
  • give them a sense of ownership and stake in the business
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7
Q

How do we increase productivity and reduce costs in the business via HR?

A
  • ensure employees are highly trained
  • devise the best systems and arrangements of work
  • reduce absenteeism (staff time off work)
  • reduce labour turnover (number of people leaving the business)
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8
Q

How does HR deal with training?

A
  • give inductions to new employees
  • external and internal training
  • management and team training
  • look into employees apprenticeships and qualifications
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9
Q

What does HR ensure in terms of diversity?

A
  • create a feeling of equality
  • makes employees feel valued
  • proportionate mix of genders, race, sexuality etc
  • promote respect and tolerance
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10
Q

What are the internal influences of a business? (6)

A
  • overall business aims (HR ensures objectives meet corporate objectives)
  • available finance resources (HR must compete with other departments for finance)
  • corporate culture ( strong ethical culture must be reflected in employees)
  • organisational structure ( flat/tall/delayering etc)
  • trade unions and relations between employer and employee
  • overall business performance ( business expanding/ developing can influence objectives)
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11
Q

What are the external factors of the business?

A
  • political factors (change in gov = change in attitude toward trade union= can affect employer and employee relations)
  • economic factors (change in economy = change in demand= change in labour market = affects wage costs)
  • social factors (increased emphasis of work-life balance= more flexible hours = impacts hours of work)
  • technological factors (staff must be trained to use IT)
  • legalisation ( HR objectives are influenced by employee related legalisation = influences recruitment, training, promotion, environment = affects number/skill/location of employees)
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12
Q

Hard HR

A
  • treats employees as a resource
  • employees are monitored and controlled
  • maximise output
  • use of data to track and monitor
  • fear drives productivity
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13
Q

Soft HR

A
  • values employees and relationships
  • empowers employees to make decisions
  • maximise motivation
  • employees drive their own performance and achievement
  • happiness drives productivity
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14
Q

What is labour turnover rate?

A

Measure the proportion of employees leaving the business in one year
LABOUR TURNOVER RATE= NO. EMPLOYEES LEAVING/ NO. EMPLOYED X100

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15
Q

What is retention rate?

A

EMPLOYEES WITH MORE THAN ONE YEAR SERVICE/ AVERAGE NO. EMPLOYED IN A YEAR X100

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16
Q

What causes a business to have a high labour turnover rate?

A

-poor pay
- low opportunities for promotion and reward
- better opportunities elsewhere
- family reasons
- retirement
- redundancy
- relocating
- toxic culture
- fired
- change in career

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17
Q

Cause of high labour turnover and low retention?

A
  • no confidence in management
  • low wage
  • lack of investment in training
  • stress / ill health
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18
Q

Implications of high labour turnover and low retention

A
  • high recruitment costs
  • more investment in training
  • lost skills
  • poor morale
  • low productivity due to low motivation
  • bad reputation
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19
Q

Labour productivity

A

OUTPUT / NO. OF EMPLOYEES

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20
Q

Labour cost per unit

A

TOTAL LABOUR COSTS / TOTAL UNITS OF OUTPUT

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21
Q

What happens when we get people worker harder in terms of labour costs?

A

Inverse relationship - increase in productivity reduces labour costs therefore we can sell for cheaper, becoming more price competitive to keep/get higher profit margins

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22
Q

Ways to increase productivity using soft HR

A
  • recruiting skilled employees
  • investing in training and technology
  • increase financial rewards and fringe benefits
  • improve working conditions
  • restructure to allow more promotion opportunities
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23
Q

Examples of fringe benefits

A
  • free meals
  • company car
  • pension
  • gym
  • discounts
  • flexible work
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24
Q

Ways increase productivity using hard HR

A
  • performance related pay
  • set staff targets
  • stricter disciplinary procedures
  • create a competitive work culture
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25
Q

Way to lower labour cost per unit

A
  • reduce number of staff (redundancy)
  • lower staff wages
  • utilise more capital intensive production methods
  • outsourcing
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26
Q

What is employee cost as a % of turnover

A

The % of sales turnover needed to cover labour costs
EMPLOYEE COSTS/% OF TURNOVER X100

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27
Q

What is absenteeism?

A

The number to days employees take off work
NUMBER OF WOKRING DAYS LOST/ TOTAL WORKING DAYS IN A HEAR X100

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28
Q

Organisational structure

A

A formal way of ordering the way that authority, responsibility and information will flow in a business

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29
Q

What is the functional approach for organisational structure?

A

Separates a business into departments
- director of each department will overlook subordinates in that department and then report to managing director

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30
Q

+ and - of functional approach

A

+ departments will employ specialists
+ it’s clear who is responsible
+ everyone knows their role
-departments may have their own agendas
-more people are involved
-decisions take longer

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31
Q

What is span of control?

A

The number of employees for whom a manager is responsible

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32
Q

Narrow span of control

A
  • allows for closer supervision
  • more layers in hierarchy may be required
  • helps for more effective communication
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33
Q

Wide span of control

A
  • gives subordinates more independence
  • more appropriate if labour costs are significantly high
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34
Q

What does the choice of type of span of control depend of?

A
  • personality/ skill/ experience of the manager
  • size and complexity of business
  • whether the business is centralised or decentralised
  • the extent of use of clear objectives throughout a business
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35
Q

Level of hierarchy

A

The numbers of layers of management or supervision in the organisation structure

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36
Q

Chain of command

A

Describes the lines of authority within business

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37
Q

Tall organisational structure

A
  • traditional, mechanistic structure
  • many layers in hierarchy
  • narrow span of control
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38
Q

Flat organisational structure

A
  • “organic”
  • small hierarchy
  • wide spans of control
  • delegation encouraged
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39
Q

+ and - of tall structure

A

+ tighter control
+ opportunities for promotion
-takes longer for communication
-more layers= more staff= higher costs

40
Q

+ and - of flat structure

A

+ more delegation
+ staff given greater responsibility
+ vertical communication
+ fear layers= less staff= lower costs
- less direct control
- fewer opportunity of promotion

41
Q

What is the product approach of organisational structure

A

Separates a business according to the types of products it manufactures

42
Q

+ and - of product approach

A

+ allows business to focus on its products
+ creates competitiveness
+ each product can be a separate profit centre
-wasteful duplication in some areas
-lack of focus on external competitors
-lack of central control

43
Q

What is the geographical approach of organisational structure

A

Separates a business according to their geographical area it operates in
E.g. New York, London, Sydney etc

44
Q

+ and - of geographical approach

A

+ allows products to be adapted to meet the needs of different geographical markets
+ encourages competitiveness within business
-can cause conflict between head and area offices
-creates wasteful duplication in some areas

45
Q

What is the matrix structure of organisational structure

A

Used when business works on projects which involves creating teams of staff who have different expertise

46
Q

+ and - of matrix structure

A

+ staff can be allocated role based on expertise
+ very flexible, allowing business to react quickly to changes
-teams can be difficult to manage
-can cause conflict between departments

47
Q

What is organisational structure important?

A
  • promotes flexibility
  • retain order and authority
  • maximise efficiency
  • encourages creativity
  • all of the above must be balanced
48
Q

When and where was Taylorism proposed

A

1909- Bethlehem steel company

49
Q

Rules of Taylorism

A

1) Division of labour - workers should have specialised tasks. The thinking is done by management and the doing is done by workers
2) Design the most efficient way - this will improve productivity and reduce costs to become more competitive

50
Q

Critiques of Taylorism

A
  • can lead to boredom and demotivation
  • ignores benefits of team working
  • pushing workers to maximum efficiency can lead to demotivation, errors, reduced quality and high staff turnover
  • Taylor was ignorant to the fact that things other than money can motivate people
51
Q

Who proposed the Two Factory Theory

A

Herzberg

52
Q

What are Hygiene Factors of the Two Factor theory

A

These don’t motivate workers but their a sense will lead to dissatisfaction
E.g
- quality of supervision
- pay
- company policies
- physical working conditions
- relations with others
- job security

53
Q

What are Motivators of the Two Factor theory

A

These factors will lead to motivation amongst workers
E.g.
- promotion opportunities
- opportunities for personal growth
- recognition
- responsibility
- achievement

54
Q

When we get to used to motivators…

A

… they become hygiene factors

55
Q

Who proposed Theory X and Theory Y

A

McGregor

56
Q

What is Theory X

A

(HOMER SIMPSON)
- work avoiding
- need to control
- avoids responsibility
- workers seek security

57
Q

What is Theory Y?

A

(LISA SIMPSON)
- work is natural
- capable of self direction
- seek responsibility
- can make good decisions

58
Q

When and who proposed the Hierarchy of Needs?

A

1943 - Maslow

59
Q

List the hierarchy of needs (top to bottom)

A
  • self transcendence (sense of meaning)
  • self actualisation (achieving one’s full potential)
  • esteem (feeling of accomplishment)
  • love/ belonging (intimate relationships and friends)
  • safety (security)
  • physiological (food, water, rest)
60
Q

What did Maslow say motivates people?

A

To achieve certain needs and when one is fulfilled they seek to fulfill another

61
Q

Problem with Maslows theory

A

People don’t progress up the hierarchy neatly, they deal with these problems all at once

62
Q

Business Examples of Maslows Hierarchy of Needs

A
  • self transcendence ( volunteering, sabbatical, training others)
  • self actualisation (target setting, delegation, development)
  • esteem (bonuses, promotion, recognition, job title)
  • love/ belonging (team building activities, work socials, staff room)
  • safety ( personal protection equipment, legalisation, safety policies)
  • physiological (food, water, gym, “rest rooms”)
63
Q

What is delegation

A

Pass responsibilities down to someone subordinate

64
Q

What is delayering

A

Remove a layer of management from the hierarchy

65
Q

Advantages of delayering

A
  • saves costs (labour costs)
  • flatter and dynamic structure
  • faster decision making
  • improved communication
66
Q

What is centralised?

A

Keep major responsibility at the centre of the organisation

67
Q

What is dencentralised ?

A

Giving decision making power to an organisation

68
Q

Advantages of centralised

A
  • efficiency in time and resources
  • clear chain of command
  • gives employees an understanding
69
Q

Advantages of decentralisation

A
  • provides trusted environment
  • reduces points of weakness
  • optimises resource distribution
70
Q

What is HR flow

A

The flow of employees through an organisation

71
Q

What involves the inflow of employees in terms of HR?

A
  • induction
  • selection
  • recruitment
72
Q

What involves the internal flow of employees in terms of HR?

A
  • training
  • appraisal
  • promotion
  • transfer
  • development
73
Q

What involves the outflow of employees in terms of HR?

A
  • retirement
  • dismissal
  • voluntary leaving
  • redundancy
74
Q

Influences on the HR flow

A
  • operational requirements (strategy of the business)
  • individual needs
  • external environment
75
Q

Workforce planning

A

Getting the right people with the right skills at the right place at the right time

76
Q

Workplace capability and planning cycle

A

1) workforce profiling/ analysis
2) forecast needs
3) analyse gaps
4) develop strategies
5) implement strategies
6)monitor and evaluate

77
Q

How would a business solve the problem of competition offering higher wages and promotion opportunities?

A
  • increase wages
  • improve culture and work satisfaction
  • create role of responsibility
78
Q

Why do businesses need good employer- employee relations?

A
  • lowers labour turnover
  • employees feel trusted and valued which increases motivation
  • save costs from increased productivity from an increase in motivation
  • achieve business objectives
  • reduce absenteeism (saves costs)
  • increase in employee innovations which could solve problems and lead to better business decisions which can increase profitability
79
Q

How can firms manage good employee relations?

A
  • less authoritarian approach
  • more democratic
  • praise to motivate
  • pay fair wage
  • provide good facilities
  • training
  • equality
  • embrace union involvement
  • fair work life balance
80
Q

What is employee representation?

A

Arises when employees are part of a formal structure for involving them in the decision making process of a business

81
Q

What should business consult employees about?

A
  • proposed redundancies programmes
  • when employees are transferred from one employer to another
  • changes to be made to pension arrangement
  • changes to working time arrangements
82
Q

Advantages of consulting employees?

A
  • makes employees views known
  • helps strengthen understanding to workplace issues
  • creates an atmosphere of mutual trust which improves relations
83
Q

Piece rate

A

Payment based on number of items each worker produces

84
Q

+ and - of piece rate

A

+increases productivity
-expense of quality
-output may be based off workers needs (around Xmas and holidays) rather than customer demand

85
Q

Commission

A

A sum of money paid to an employee upon completion of a task. May be paid as a % of sales or on a flat rate based on sales volume

86
Q

+ and - of commission

A

+incentive increases productivity
+high performance can earn people large amounts in accordance of effort and ability
-no reliable income
-resentment may arise
-encourages dishonesty

87
Q

Salary schemes

A

A basic payment system where employees are paid on an annual salary

88
Q

+ and - of salary schemes

A

+simple and cheap to administer
+security may produce motivation
-payment for input rather than output

89
Q

Performance related pay

A

System that rewards individual employees based on an assessment of their individual performance and usually measured against pre agreed objectives

90
Q

+ and - of performance related pay

A

+higher motivation
+more efficient use of company resources
+clearer goals
-creates competitive atmosphere
-focuses on the short term goals of individual rather than teamwork
-goals may be unachievable

91
Q

What is job rotation?

A

The job is expanded horizontally by giving the worker more task, but at the same level of responsibility

92
Q

+ and - of job rotation

A

+increases motivation
+encourages wider range of skills so workers become more flexible
-retraining costs
-employees may view it as more of the same work which can demotivate

93
Q

What is job enrichment?

A

Giving employees more responsibility and offering them challenges that allow them to utilise their skills fully

94
Q

+ and - of job enrichment

A

+challenges employees
+encourages contributions
-some employees may not want to be challenged
-could be viewed as a way to delegate jobs
-training costs

95
Q

What is empowering employees?

A

Giving employees the means by which they can exercise power over their working lives

96
Q

Advantages of empowering employees

A
  • trust
  • recognition of achievement
  • creates an atmosphere by which employees want to be involved in

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