11: The Finance Function and Human Resources

Question 1

HR activities

Answer 1

selection, performance, appraisal, rewards, training and development

Question 2

stages of HR planning

Answer 2

1. strategic analysis
2. internal analysis
3. gap analysis (between demand and supply)
4. plan to close the labour gap
5. review

Question 3

recruitment

Answer 3

finding applicants, going out into the labour market, communicating opportunities and information and generating interest

Question 4

selection

Answer 4

going through the interview prices, offering jobs, signing/drawing up contacts

Question 5

recruitment process

Answer 5

1. job analysis
   - collecting, analysing and setting out information about the context of jobs to provide the basis for a job description and data for recruitment, training, job evaluation and performance management
2. job design
   - development and outline of competencies within a competency framework
   - intellectual, interpersonal, adaptability and results competencies
3. job description
   - set out the purpose of the job, where it fits into the organisation structure, the context of the job, the accountabilities of the job holder and the main tasks the holder carries out
4. advertising job vacancies
5. initial screening

Question 6

filtering/selection processes must be …

Answer 6

reliable, valid, fair and cost-effective

Question 7

horns and halo effect

Answer 7

initial view of someone can be prejudicial later on

Question 8

contagious bias

Answer 8

interviews might change the behaviour of the applicant through wording of questions or non-verbal cues

Question 9

training

Answer 9

planned and systematic modification of behaviour through learning events, programmes and instruction which enable individuals to achieve the level of knowledge, skills and competence to carry out work effectively

Question 10

HR development strategy

Answer 10

identifying skills/competencies needed by the business plan

considering how the strategy will assist in making sure we have the people necessary with the skills required to meet the business plan

implementing the strategy

Question 11

planned approach to training

Answer 11

identifying skills required and skills you have to see training gap

defining learning required

defining training objectives

planning appropriate training programmes

implementing training

evaluating training

Question 12

personal development plans (PDP)

Answer 12

clear developmental action plans for an individual incorporating a wide set of developmental opportunities including formal training

Question 13

steps for creating a personal development plan

Answer 13

analyse current position

set goals to achieve to make you better at your current job and to prepare you for future jobs

coming up with the personal development plan and thinking about activities you need to undertake to upskill

Question 14

evaluating training (Kirkpatrick)

Answer 14

1. reaction
2. learning
3. behaviour
4. results

Question 15

career management

Answer 15

technique where progress of individuals within an organisation from job to job is planned with organisational needs and individual capacity in mind

Question 16

succession planning

Answer 16

suitable replacements (in terms of experience and ability) are able to take over positions above them as they become available

Question 17

performance management

Answer 17

getting the best out of employees and ensuring they perform their role in an effective and satisfactory manner so organisational goals are achieved

Question 18

2 aspects to performance management

Answer 18

1. creating a work environment/setting conducive for people to work as close to potential as possible
2. analyse performance levels and feed back into the training/development process so people have skills they need to be effective at their jobs now and in the future to perform plans the business has for them

Question 19

4 stages of performance management

Answer 19

1. target setting - SMART
2. monitor performance
3. review performance
4. action plans

Question 20

appraisals

Answer 20

systematic review and assessment of an employee’s performance, potential and training needs

Question 21

maximising prosperity (Taylor)

Answer 21

known as scientific management

idea that the way in which we achieve maximum prosperity for employers and employees is to make the system of work as efficient and measurable as possible

setting targets for people to work harder/faster and paying more doesn’t result in higher levels of output
- people are complicated and not always rational

Question 22

human relations (Mayo)

Answer 22

Hawthorne experiment - looking at how social enrichment and nourishment in the workplace are vital in terms of generating motivation and outputs

idea that social or belonging needs are important - contrasts with Taylor’s school of thought on scientific management

Question 23

hierarchy of needs (Maslow)

Answer 23

physiological needs (food and shelter)

safety needs

love/social needs - social enrichment

esteem needs

self-actualisation needs (aspirational)

employer should be aware of the bottom 3 levels

Question 24

two-factor content theory (Herzberg)

Answer 24

difference between satisfaction and motivation
- dissatisfaction is worse than demotivation

hygiene factors cause dissatisfaction (pay, work itself, feeling like you are treated fairly, way you are managed, interpersonal relationships, working conditions, job security, status, etc.)
- easy to address

motivational factors (aspirations, gaining recognition, responsibility, challenge, growth, autonomy, etc.)

hygiene factors are preventative whilst motivating factors are things that give people cause to give superior performance/effort in a job

Question 25

theory X and theory Y (mcgregor)

Answer 25

theory X - people who dislike work/responsibility so they avoid both theory Y - want to advance their careers, improve learning, know more and be better

Question 26

expectancy theory (Vroom)

Answer 26

measure an individual's motivation by looking at valence and expectation - valence: how badly you want something to happen - expectation: whether what you want to occur will occur need to have desire and belief for something

Question 27

classifications of motivation (Mullins)

Answer 27

economic reward intrinsic satisfation social relationships

Question 28

psychological contracts

Answer 28

understanding existing between employee and employer away from the written contract 1. coercive contract - people doing the bare minimum will not be motivated in any way 2. calculative contract - people are calculated and prepared to work harder in certain circumstances if they see an individual benefit for them 3. cooperative contract - if you work hard you are rewarded

Question 29

job redesign

Answer 29

making the job better and more fulfilling/enjoyable

Question 30

job rotation

Answer 30

moving alongside the business so improvement of inter-departmental relationships

Question 31

job enlargement

Answer 31

giving people extra related tasks to do

Question 32

job enrichment

Answer 32

increasing the depth of responsibility same job but more planning/control to increase meaning/challenge so more autonomy/growth

Question 33

2 basic concerns around pay and rewards

Answer 33

1. people want to feel that they are paid fairly for the job they do 2. people want to be relatively/differentially paid well

Question 34

job family structure

Answer 34

grades/bands within the family

Question 35

pay or profession/maturity curves

Answer 35

as you move up, you mature and get paid more

Question 36

spot rates

Answer 36

going rate for particular jobs

Question 37

rate for age

Answer 37

depends on how long you have worked in the business

Question 38

pay spines

Answer 38

common with government organisations recognition of different parts of the business with differential pay scales

Question 39

manual work pay structures

Answer 39

difference in manual roles being performed within an organisation

Question 40

incentive schemes

Answer 40

anything lined up to encourage people to give their best in the work place performance-related pay (PRP), bonus schemes and profit-sharing

Question 41

KPIs for HR (Marr)

Answer 41

revenue per employee - revenue / number of FTE employee satisfaction index - asking employees to score satisfaction with various parts of employment/organisation employee engagement level employee churn rate - total number of leavers over the period / average total number employed over the period performance review completion factor - total number of performance reviews completed in a period / total number of employees that should have received a performance review in that period - should be 100% salary competitiveness ratio - salary offered by the organisation / average salary offered in the industry or sector time to hire - total time between posting a vacancy and the employee starting work