3.6 Decision making to improve human resource performance Flashcards
What are ‘Human Resources’ in a business?
The term used to describe an organisation’s employees and the departmental function within an organisation that is focused on activities related to employees.
What is human resource management?
The management of people at work to assist the organisation in achieving its objectives.
Name some functions of the human resource department.
-Recruitment and selection;
Training and development;
Appraisal;
Consultation;
Collective bargaining;
Wage in salary systems;
Fringe benefits;
Disciplinary and grievance procedures;
Health and safety issues; and
Employment legislation.
What are 7 examples of human resource objective areas?
- employee engagement and involvement
- talent development
- training
- diversity
- alignment of values
- number, skills and location of employees.
Why would a business look to improve employee engagement and involvement?
To improve businesses productivity, reduce labour turnover and absenteeism
How could a business look to improve employee enagement and involvement?
-Increase employee feedback
-Show the employees work benefits the organisation
-Improve fringe benefits
-Increase employee responsibility
What is, and why would a business look to improve talent development?
Talent development refers to an organisation providing an envirmonent in which a worker can improve themselves and their skill set.
A business would look to do this in order to motivate employees, allow them to access their full potential, and improve productivity of the business.
What is a downside to improving talent development?
Costly, time spent away from work, talent getting poached
What is the difference between training and talent development?
Training is focusing on the job the indivdual already has.
Why would a human resources department look to improve training?
-To allow employees to progress in the company and access more complicated roles
-To improve labour productivity
What is a downside to improving training?
Costly, time spent away from work, talent getting poached
Why would a business look to improve their diversity?
To ensure their employees are aware of, and to meet, the basic legal requirements regarding equality and diversity on the benefits of having a diverse workforce.
Why is it important for employees values and organisational values to be aligned?
Employees will be motivated and engaged, leading to increased job satisfaction, higher productivity, and improved employee retention. It also ensures that everyone is working towards the same goals.
What are some benefits of setting human resource objectives?
- Focus for decision making and effort
Yardstick agaist which succes and failure can be measure
-Improves coordination giving departments a common purpose
-Improves efficiency by examing reasons for succes or failure
-Motivates staff with challenging but achievable objectives
-If SMART, good
What are some problems with setting HR objectives?
-Hard to predict external changes
-Conlfict between HR objectives and coorporate objetives
-If objectives are imposed rather than agreed then employees may feel de motivated and not heard
-May be reluctant to set realistic objectives in times of difficulty
What are some internal influences on HR objectives/departments?
-Overall business aims
-Available finance and resources
-Corporate culture
-Organisational structure
-Trade unions
-Relationship between employees and employers
What are some external influences on HR objectives/department?
-PESTLE
-Actions of competitors
What is the difference between a hard and soft human resource management approach?
Hard = employees are to be utilised as efficiently as possible by directing them. This approach sees HRM as essentially a control mechanism. The style of management in organisations using hard HRM is likely to be authoritarian or autocratic because the approach requires that authority is kept in the hands of a few, and it is likely to involve a centralised, rather than a decentralised, organisational structure.
Soft = This focuses on motivational issues, organisational culture, and leadership approaches in business. This is a strategy that encourages the personal development of all staff and is associated with a democratic management style. Managers will wish to pass authority throughout the organisation and are likely to favour delegation and decentralisation.
What would make a business adopt a soft or hard HRM style?
depends on the history, culture, approach, and attitudes of management and their management style.
Employees today react more favourably to a soft HRM approach. Employees are well educated and skilled and offer greater involvement in the workplace.
What are the benefits of having an EFFECTIVE HRM style?
The benefits of effective HRM strategies are lower labour turnover, high retention rates, less absenteeism, greater productivity, and lower unit labour costs
Why are labour turnover rates beneficial to a business?
Measures the effectiveness of its workforce and HR department aswell as working enviorment
How is labour turnover calculated?
(N^of employees leaving over a given period / avg n^of employees hired) x 100
How are retention rates calculated?
(Number of employees with one or more years’ service/overall workforce numbers) x 100
What are some problems with high labour turnover and low retention rates?
Increased costs:
-admin costs
-training costs
Jobs may need to be redisgned to make them as simple as possible and avoid long training periods
Reduced productivity due to disruptions
Low morale
What are some problems that can LEAD TO high labour turnover and low retention rates?
-Ineffecitive leadership
-Poor communication
-Low wages/salaries compared to comp
-Poor selection process
-Boring jobs that lack career development
-Poor working conditions
-Economy is in period of growth then possibly more attractive positions exist
How can a business improve labour turnover and retention rates?
-Be aware of how rates compare to industry standard and compare possible causes and differeces between firms
-Exit interviews to identify problems
-Imrpove recruitment and selection
-Improve training
-Improve working conditions
How is labour productivity calculated?
Output per period / number of employees per period
How are labour costs per unit calculated?
Total labour costs / total units of output
How is employee costs as a % of turnover calculated?
(Employee costs / sales turnover) X 100
What does employee costs include?
Wages, payroll taxes and benefits
How could a business increase labour productivity?
-Improve recruitment and selection process
-More training
-Appropriate non financial benefits
-Improved tech and capital equiptment
How could a business reduce labour costs per unit?
-Holding down wages
-Replace workers with machines and tech
-Outsource production to other firms and downsize workforce
What are some problems with reducing labour costs and increasing labour productivity?
-De motivating employees
-Increasing labour turnover rates
What is absenteeism?
The proportion of emplyees not at work on a given day
What are some strategies to reduce absenteeism?
-More flexible working practises; home working, part-time etc
-Ensure jobs are intersting and challenging
-Improve working conditions
-Attendance bonuses
What is organisational design?
-The process of shaping an organisational structure so that it meets the organisations purpose
