Unit 6 (not on paper 3) Flashcards
types of HR objectives (not in exam)
- labour productivity
- employee engagement
- training
- diversity
soft HR (not in exam)
sees employees as more important than any other resource available to managers.
democratic in nature
motivation = delegation, empowerment
- managers consult with employees
- emphasis on training
- delayering gives control to employees over working life
hard HR (not in exam)
like any other resource in the business autocratic motivation = pay - paid as little as possible - employees only have limited control over working life - downward communication - judgemental appraisal
labour productivity not on paper 2
total output per time period / no. of employees at work
labour turnover + causes not on paper 2
no. staff leaving a year / avg no. of staff x 100
causes?
- regional unemployment levels
- poor motivation
- low wages
- lack of promotion opportunities
what will a human resource plan include?
ELLUW not on paper 2
- no. of employees currently
- labour productivity
- current forecast of labour costs
- expected rate of unemployment
- forecast wage rates for potential employees
Hackman + Oldman not on paper 2
key elements of a motivating - skill variety
- Task significance ie working on something with overall significance to the business
- Task identity ie sense of competition
- Autonomy ie independence to make own decisions on how they work
- Feedback ie employees receive info on their quality of work
key factors in organisational design:
HSDAC/D not on paper 2
- levels of hierarchy
- span of control
- delegation
- authority
- centralisation + decentralisation
delegation
adv + disadv of delegation: not on paper 2
giving responsibility for decision making -> needs trust
+ speed up + improve quality of decision making
+ can reduce workloads of senior + middle managers
+ improves skills of junior employees
- costs of training
- inappropriate where authoritarian styles are used as managers may be unwilling to pass control to employees
- not suitable in a crisis
advantages of decentralisation not on paper 2
- provides junior employees with opportunity fulfil needs such as achievement -> improve motivation
- reduces workload -> focus on LT issues
- customers may benefit as business meets their needs more fully as junior employees have better understanding
motivation
will to work due to enjoyment of work itself
Taylor
external factor achieved through money, employees should be closely supervised + paid piece rate. time + motion studies determine efficient means of production
scientific school
Mayo
sociological theory -> motivated by meeting social needs. more attention given to social dimension of work
Hawthorne effect -> employees responding to amount of attention they were receiving
Maslow
physiological needs -> food + water
security needs -> safe + secure working environment
social needs -> teamworking + contact w employees
esteem needs -> achievement, recognition
self actualisation -> fulfil ones potential
herzberg
motivators: personal achievement, recognition, responsibility, interest in work, growth + advancement
hygiene: company policy, supervisor, working conditions, salary, relationship w employees
Quality not on paper 2
Extent to which a product meets customers’ needs
Diversity not on paper 2
Refers to recognising the differences between individual employees + also the differences that may exist between different groups of employees
Why is there increased interest for talent? not on paper 2
- overcoming pressures of succeeding in increasingly competitive global markets
- Coping w shortages of certain skilled employees
- Growing need for highly specialist + creative employees
How do diversity objectives offer benefits to the business?
not on paper 2
- Can increase talent within business, enhancing performance.
- A more diverse workforce can have also understand needs of markets which may be compromised of diverse consumers.
- Can become attractive employer branding + can help to attract highly talented and skilled employees
Output per employee = not on paper 2
Total value of output/ total no. of employees
Unit labour cost = not on paper 2
Total labour costs / quantity of output
What may cause high labour turnover? not on paper 2
boring job Relative low pay Inadequate training Poor work place relations Demotivated workforce
What is a negative of very low labour turnover? not on paper 2
- Stagnation
- Staleness of ideas
Ways of reducing labour turnover: not on paper 2
better recruitment process Induction Training Exit interviews Job variety
What is empowerment? not on paper 2
Gives employees opportunity to decide how to carry out their duties + how to organise their work. Involves redesigning employees jobs to allow them greater control over working lives
Levels of hierarchy not on paper 2
Refers to the no. of layers of authority within an organisation.
Span of control not on paper 2
No. Subordinates directly responsible to a manager
too wide = managers struggle
too narrow = workers demotivated, feel micro managed
Delegation not on paper 2
Passing down of authority through the organisation
Advantages + disadvantages of delegation not on paper 2
+ speed up + improve quality of decision making
+ Reduce workloads of senior + middle managers, can focus on key tasks to improve their performance
- costs of training
- Inappropriate in some organisations where leadership styles are authoritarian
Centralisation not on paper 2
Most decisions are made by head office or senior staff. Local branches must work to strict guidelines issued by head office. Normally associated with a taller hierarchical structure.
Decentralisation not on paper 2
Gives greater authority to employees lower down the organisational structure.
What are the benefits of decentralisation? not on paper 2
- junior employees opportunity to fulfil needs such as achievement + recognition through working
- Reduces work load on senior managers, allowing them to focus on long term issues
- Customers may benefit by having more decisions made locally which encourage business to meet needs fully
Why might some businesses retain centralised organisations? not on paper 2
- senior mangers like to remain control of business
- May reflect the preferred management of business
- The skill of the workers eg low skilled
how does training help firms?
- Raises firms productivity, lowering average costs + improving quality + customer service
- Boosts employees motivation, reducing absenteeism + labour turnover
- Core component of HRM + assist organisation in achieving strategic objectives
- A reputation for training will assist organisations in attracting + retaining high quality employees
Redundancy + reasons not on paper 2
Takes place when an employee is dismissed because a job no longer exists
- a business closes down
- Jobs are replaced by new technology
- Business moves some of its operations overseas + some jobs lost as consequence
What does motivated workers lead to?
- increased staff retention rates + reduce labour turnover + absentee rates -> reduce Acs as lower costs of recruitment + training
- increased productivity -> lower AC -> lower price if demand = elastic, or increased PM if demand = inelastic
- Deliver high quality goods + services -> higher level of customer service -> boost brand image
Theorist opinions of pay on motivation
Taylor - primary factor
Maslow - a reward permitting employees to meet lower needs on their hierarchy
Herzberg - a hygiene factor
Appraisal
Process of considering + evaluating the performance of an individual employee
High levels of engagement can results in…
low absenteeism
Low labour turnover
Good relations between managers + employee
Flatter organisation not on paper 2
= wider span of control -> empowerment + enrichment but harder to motivate by promotion
Taller hierarchies not on paper 2
= use financial methods of motivation. Vertical communication essential as recognises importance of individuals
adv of high labour turnover not on paper 2
- new ideas
- natural wastage can help reduce costs
disadvantage of high labour turnover not on paper 2
- lack of loyal staff
- loses trained staff
labour retention rate % = not on paper 2
no of staff employed at end - no of leavers / no of staff at the start x 100
employee costs as a % of turnover = not on paper 2
employee costs / sakes turnover x 100
can be reduced by reducing wages + benefits but could leave to demotivated workforce + bad ethics as need to be treated well
disadvantage of decentralisation not on paper 2
- junior employees less experienced
- inconsistent between functions
- junior employees can’t see overall situation
adv + disadv of centralisation not on paper 2
+ business leaders have lots of experience
+ quick decisions
+ aren’t biased to departments
- demotivating for junior employees
- react slowly to consumer trends, lose tack of market orientation
tall structures not on paper 2
lots of levels in hierarchy, long chains of command, top down -> can affect communication (longer time)
flat structures not on paper 2
few levels, more responsibility + freedom, wide span of control -> managers overwhelmed
HR planning not on paper 2
right no. of staff + skills to meet needs
-> predict workers needed eg LT or ST, whether there’s new tech, increase in demand or decrease, current staff details
recruitment not on paper 2
can help to achieve diverts objectives
internal
+ already know the business, short + cheap process
+ may feel motivated to progress in career
- vacancy in other departments, resentment among those not chosen
external
+ new ideas, experience from other organisations
- long + expensive, longer induction process
training
help to feel engaged + involved, feel value
on the job
+ easier to organise, low cost, job specific
- bad practices passed on, no new ideas
off the job
+ trainers = specialist, new ideas, no job distraction
- expensive, no benefit to business while training
redeployment not on paper 2
may occur if some departments have too much labour due to decreased demand
+ can keep up staff morale as filling vacancies with w staff they know
flexible working not on paper 2
hours + patterns adapted to suit employees eg Flexi time, job sharing, home working
+ improves motivation, employee productivity
+ helps with lives
- impractical if need to serve public during normal hours
- easily distracted at home
human resource flow not on paper 2
the movement of employees through an organisation starting with recruitment
