Unit 6 Human Resources Flashcards
What is HR
Implementation of strategies to manage people for optimum business performance
Roles of HR
selection, hiring, firing
motivation, retention, training
redundancy and career planning
Employee engagement
The level of commitment an employee shows to their work and the business as a whole
Employee involvement
The amount of contributions an employee provides to their working practices and decision making
Benefits of high engagement and involvement
Higher productivity, lower turnover
Talent development
Business identifying those individuals who have potential to help improve the business in the future
Training
Process of equipping employees with the skills and knowledge to carry out their jobs effectively
diversity
recognising all employees are different however making sure these differences aren’t discriminated against
Alignment of values
Pulling values of employees together to focus on achieving one common aim
What is soft Human resource management
Where employees are treated as the most important part of the business, where they provide a competitive advantage
What is hard HRM
Treats employees simply as a resource - cost focused
features of soft HRM
strong communication, competitive pay structure, appraisal systems, empowered employees
features of hard HRM
high labour turnover, minimal pay, one way communication, little empowerment
Influences on HRM
Type of business, industry
Leadership style
Finances available
Skillset of staff
Labour productivity calc
Output/number of employees
Labour cost per unit
Total labour costs/output
Employee costs as a percentage of turnover
(Total labour costs/ revenue) x100
What is labour turnover
The percentage of employees who leave a business over a period of time
Labour turnover calc
(number of employees who leave the business/total staff employed) x100
Which type of businesses experience high turnover of labour
- Seasonal businesses
- Low paying jobs
What are the negative consequences of high labour turnover
- High costs of re-selecting staff and re-training
- Loss of experience
- Lower productivity
- Low motivation
How to reduce high turnover
Better pay, soft HRM, better motivation methods, more promotion and careers development opportunities
What does a business structure show
Individual job titles and roles, authority and responsibility
Chain of command
Describes the lines of authority within a business
Span of control
The number of employees a manager is responsible for
What is a functional organisational structure
Organisation is divided into specialist departments - marketing, operations, finance, HR
Positive of a functional structure
Promotes specialisation and expertise
Increases efficiency and productivity
Negative of a functional structure
Minimal collaberating between function
Less flexibility
What is a product based organisational structure
Organisations are divided according to the products it produces
Positives of a product based org. structure
Clear product focus - encouraging innovation
Negative of a product based org. structure
Duplication of efforts due to multiple teams - increasing costs
What is a regional org. structure
When an organisation is divided based on geographical locations