3.6 Flashcards

1
Q

Human resources performance

A
  • An evaluation of the effectiveness of the policies that relate labour productivity, labour turnover and employee engagement to the corporate business
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2
Q

What is human resource management

A

“The design, implementation and maintenance of strategies to manage people for optimum business performance”

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3
Q

HR key points

A
  • Staff are often seen as a cost not an asset
  • Human resources rarely at the heart of a business success story
  • HR is most often a collaborative partner to other functions
  • HR decisions are a key enabler:
    > Recruitment
    > Job and organisational
    > Training and development
    > Retraining and redeployment
    > Redundancy and dismissal
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4
Q

Market conditions

A

What times are tough
- Hard HRM - FW Taylor
- Flexibility - Zero hours contracts that promise nothings

When times are good
- Soft HRM - Maslow
- Competition - salary and benefits to recruit and keep the best

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5
Q

Hard vs Soft HRM

A

Hard
- Treats employees simply as a resource of the business
- Strong link with corporate business planning - what resources do we need, how to we get them and how much will they cost

Soft
- Treats employees as the most important resource in the business and a source of competitive advantage
- Employees are treated as individuals and their needs are planned accordingly

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6
Q

Other influences on HR decisions

A

Ethical
- The fate of whistle blowers
- Changing culture through leadership and training

Environment
- Synergy with motivation factors
- Championed by HR

Technological
- E-learning - use and effectiveness
- E-recruitment
- Online selling
- Working from home

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7
Q

Why has HRM become more importnat

A
  • Most business now provide services
  • People are the critical resource to deliver the required quality and customer service level
  • Competitiveness requires a business to be efficient and productive - this is difficult unless the workforce is well motivated, has the right skills and if effectively organised
  • The move towards fewer layers of management hierarchy has placed greater emphasis on delegation and communication
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8
Q

Many aspects of HRM

A
  • Workforce planning
  • Recruitment and selection
  • Training
  • Talent development
  • Employee engagement & involvement
  • Managing diversity
  • Alignment of values
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9
Q

What is an HR objective

A

A specific goal or target of relating to the management and performance of people in a business

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10
Q

The value of effective HR objectives

A
  • Connect HR decision-making with overall business objectives
  • Link HR with customer service and quality
  • Help create effective working environment for a key stakeholder group
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11
Q

HR objectives

A

Ensure human resource are employed cost effectively:
- Pay rates should be competitive but not excessive
- Minimise staff turnover
- Ensure jobs have suitable, achievable workloads
- Avoid under-utilised or over stretched staff
- Make best use of employees skills

Match the workforce to the business needs:
- Effective recruitment
- Training programmes to cover skill gaps or changes in technology and processes

Maintain good employee relationships
- Avoid unnecessary and costly industrial disputes
- Sensitive handling of potential problems with employees
- honest communication with employees
- Comply with all relevant employment legislation

Manage diversity well
- Effective equality management and processes
- Full compliance with diversity legislation

High employee engagement and involvement
- Involving employees in work related improvements
- Provide an effective outlet for the employee - Communication

Operate effective talent development
- Implement effective internal recruitment processes
- Lin talent development programmes with strategies for recruitment and retention

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12
Q

Internal influences on HR objectives

A
  • Recent history
  • The CEO
  • financial pressures
  • Changing objectives
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13
Q

External influences on HR objectives

A
  • Market changes
  • Economic changes
  • Technological changes
  • Social changes
  • Political and legal changes
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14
Q

Hard HRM summary

A

Focus:
- Identify workforce needs of the business
- Hiring, moving and firing accordingly

Key features
- Short term changes in employee numbers
- Minimal communication from top down
- Pay - enough to recruit and retain staff
- Little empowerment or delegation
- Appraisal systems focused on making judgement about staff
- Taller organisational structure
- Suits autocratic leadership style

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15
Q

Soft HRM summary

A

Focus:
- Concentrate on the needs of employees
- Their roles, rewards and motivation

Key features
- Strategic focus on long-term workforce planning
- Strong and regular two-way communication
- Competitive pay structure
- Employees are empowered and encouraged to seek delegation and take responsibility
- Appraisal systems focused on identifying and addressing training and other employee development needs
- Flatter organisational structures
- Suits democratic leadership style

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16
Q

Which is better - Hard of Soft HRM

A

Hard
- Might result in a more predictable cost effective workforce as decision making is quicker and focused on senior managers
- But a genuinely hard approach might expect to suffer from higher absenteeism and staff turnover and less successful recruitment

Soft
- Seen as an approach which rewards employee performance and motivates staff more effectively
- Business are more innovative and hold onto skilled employees
- However be too soft and when all the employee benefits are added up, the cost of the workforce may leave a business at a competitive disadvantage

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17
Q

Labour turnover

A

The percentage of workforce that leave a business within a given period

Number of employees leaving
——————————————- x100
Average number employed

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18
Q

Problems of high staff turnover

A
  • Higher costs
    > Increased recruitment & training costs
  • Increased pressure on remaining staff
  • Distribution to production and productivity
  • Harder to maintain required standard of quality and customer service
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19
Q

Skills audit

A

A skills audit is a process of assessing the skills and competencies of an organisations employees

Benefits of conducting a skills audit
- Identify skills gaps and determining training needs
- Help organisations plan for future skills needs
- Enhancing employee retentions and reducing turnover

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20
Q

Workforce plan

A
  • Recruitment
    > Induction
    > Training
    > Internal vs external
  • Redeployment
    > Training
  • Redundancy
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21
Q

Reasons to recruit staff

A
  • Business expansion due to
    > Increasing sales
    > Developing new markets
    > Entering new markets
  • Existing employees leave
    > Due to factors such as retirement, sick leave, maternity leave
    > To work with competitors or other employers
  • Business needs employees with new skills
  • Business is relocating
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22
Q

Recruitment methods

A

Internal recruitment
- Jobs given to staff already employed by the business
- Involve promotion and reorganisation

External recruitment
- Job centres
- Job advertisements
- Headhunting
- Personnel recommendation
- Recruitment agencies

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23
Q

Internal recruitment

A

Advantages
- Cheaper and quicker to recruit
- People are already familiar with the business and how it operates
- Provide opportunities for promotion in the business

Disadvantages
- Business already knows strengths and weaknesses of candidates
- Limits number of applicants
- No new ideas can be introduced from outside
- May cause resentment amongst candidates not appointed
- Creates another vacant job gap which needs to be filled

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23
Q

Induction taining

A

What it involves
- Introducing new employees to job, their new colleagues, premises and to value and aim of the business

Length and type depends on:
- Size and type of business
- Complexity of job
- Level or position of job within business

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23
Benefits for training of training
- Better productivity - Higher quality - More flexibility through better skills - Less supervision is required - Improved motivation - Better recruitment and employee retention - Easier to implement
23
Problems with interviews
- Fist impression bias - Confirmation bias - Deciding based on the candidates likeability vs their competency and qualifications for the role
23
Recruitment evaluation methods
- Interviews - Job knowledge tests - Cognitive ability tests - Personality test
23
Business issues training cant solve
- Poor management - Poor job design - Poor recruitment - Poor production organisation - Ineffective or inefficient equipment
23
Importance of induction training
- It enables a new recruit to become productive as quickly as possible - It can avoid costly mistakes by recruits not knowing the procedures or techniques of their new job - The length of induction will vary job to job and will depend in the complexity of the job, the size of the business and the level or position of he job within the business The areas included in induction training: - Learning about the duties of job - Meeting new colleagues - Seeing the layout of the premises - Learning about the internal workings and policies of the business - Learning about the values and aims of the business
23
Reasons why businesses neglect training
- They fear employees will be poached by competitors - A desire to minimize short term costs - The cannot make a justifiable investment case - Training takes time to have the desired effect - Sometimes the benefits of training are more intangible than tangible
23
Off the job training
- Occurs when employees are taken away from their place of work to be trained Common methods: - Day release - Distance learning/ evening classes - Block release course - Sandwich courses - Sponsored courses in higher education - self study, computer based training
23
Disadvantages of Off the job training
- More expensive - Lost working time and potential output from employee - New employees may still need some induction training - Employees now have new skills/ qualifications and may leave for better jobs
23
Benefits of Off the job training
- A wider range of skills or qualifications can be obtained - Can learn from outside specialists or experts - Employees can be more confident when starting job
23
On the job training
- With on the job training employees receive training whist remaining in the workplace Methods of on the job training - Demonstration/ instruction - Coaching - Job rotation - Projects
23
Disadvantages of On the job training
- Quality depends on ability of trainer and time available - Bad habits might be passed on - Learning environment may not be conducive - Potential disruption to production
23
Advantages of On the job training
- More cost effective - Employees are actually productive - Opportunity to learn whilst doing - Training alongside real colleagues
23
Benefits of staff motivation
- Quality of goods - Productivity - Reduction in labour turnover - Easier to recruit workers - Motivation in workplace is measured by a survey
24
Herzberg - 2 factor theory
- His theory is that employees have motivating factors; interest in work, recognition and personal achievement, responsibility and scope to develop - He also found that were were hygiene factors which if not met would dissatisfy the employees, but if they were met did not motivate them any more than they were already. There were good working conditions, pay and relationships with other employees
24
What is motivation
- The will to work - Comes from enjoyment of work itself - A desire to achieve a certain goal Methods of motivation - Financial - Non-financial
24
Maslow in the workplace
- Firms should attempt to meet the needs of workers to enable the workers "self actualisation" - Safety needs > Contracts for employees meaning firms cant just fire them. They are safely employed - Social needs > Firm providing social time for employees e.g. lunch breaks - Esteem needs > Giving staff responsibilities so they feel like they have more status
24
Taylors theory of motivation
- Managers should maintain close control and supervision of their employees - Autocratic style of management - Theory X approach to workers - believe workers are lazy ad only motivated by money - Motivate workers using piece-rate payment
24
Taylors approach to management
Observation - Time and motion study Identify - spot the most efficient workers and why they are so good Specialisation - High division of labour Machinery - Devise equipment to speed up tasks - Automation and labour enhancing Train - Train the remaining workers to work like the best - Clear instructions Reward - Pay workers based on productivity
24
Maslow's theory of motivation
- Five levels of human needs which employees need to have fulfilled at work - Only once a lower level of need has been fully met, would a worker be motivated by the nest need up - A business should therefore offer different incentives to workers in order to progress up the hierarchy The tiers: TOP 5. Self actualisation 4. Esteem 3. Love/ belonging 2. Safety 1. Biological & Physiological BOTTOM
24
Evaluation of Maslow
- It can be very difficult on an individual to assess the needs of workers and if these needs are met - Not all workers seem to have the same needs
24
Herzberg summary
- Money causes movement but not motivation - In some jobs it is likely that staff will never be motivated because the hygiene factors - Motivators recognition and responsivity (2r's) Herzberg is a huge fan of training and appraisal as it meets the 2r's. Herzberg believes that workers should always be training
24
Piecework
- Employees are paid per finished item - Employees choose to pay either the NMW or a fir piece rate based on average time
24
Commission
- Salespeople may be paid commission only or low basic salary and commission - OTE (on target earnings) in a job advertisement lets the candidate know the potential top earnings that can be maid from this job - May be paid % of unit price per unit sold
24
Piecework Advantages and disadvantages
Advantages - Experienced and efficient workers can earn more - Incentive to complete the work - Employees may work more hours to get the job done - Home workers can start and finish when they want which means the work fits around family Disadvantages - As workers speed up they may cut corners - Quality may suffer - Slower workers may fall under the NMW
24
Commission Advantages and Disadvantages
Advantages - Skilled sales people can make very good money - Employer is noy paying for down time when the employee is not selling - Motivates employees to sell more Disadvantages - Could earn no money at all - Not a steady income - Risky in a recession - Employees are selling rather than meeting needs of customers - Temptation to pressure or oversell
25
Bonus
- Bonus is a lump paid on top of salary or wages - This can be for: > Sales: meeting targets > Performance: for meeting output or quality targets > Christmas: as a yearly bonus
26
Performance related pay (PRP)
- A financial reward to staff whose work is considered above average - Used for employees whose work achieves cannot be assessed simply through numerical measures - PRP awards are usually made after an appraisal process has evaluated the performance of staff during the year
26
Herzberg and PRP
- Herzberg was a keen advocate for appraisal - When goals and objectives are being set at the beginning of the year staff will feel valued - To achieve their goals staff will usually have to have some form of training - At the end of the year staff will meet to discuss if targets have been achieved - If targets have been met pay will rise
27
Delegation
- It is a non-financial motivation involves allocating tasks to employees - The manager or supervisor delegating needs to gave authority to delegate Advantages - Gives managers self confidence - Empowers managers to make decisions and allocate tasks to the most appropriate member of staff Disadvantages - Managers sometimes allocate tass when overloaded with work - Managers may not always choose the most suitable employee to delegate to
28
Consultation
- Non-financial motivation involves giving employees as chance to be part of the decision making process - Involve employees in discussions with management on topis such as how to improve productivity, cut costs or problem solve
29
Empowerment
- Non-financial motivation involves allowing employees more authority to delegate tasks - The person most suitable to make decisions gets the responsibility of taking it and can be held accountable for it Advantages - Staff are recognised for there accountability - Trusted and given control over decisions - Therefore less frustrated with the business and increased productivity Disadvantages - Seen as cost cutting - A way of delayering - Making management redundancies and making them more insecure and has an associated cost of training - Seen as giving employees more to do for the same pay
30
Team working
- Non-financial motivation involves grouping employees to work in teams
31
Flexible working
- Non-financial motivation involves offering a variety of working patterns so that employees can achieve a work life balance These include - Part time - Homeworking - Term time only - Job share - Compressed hours Advantages - Less stress - Equal opportunities as it can fit around child care - Attracts talented people who might not otherwise be able to work Disadvantages - It is hard to fits in shifts and schedules that suit everyone
32
Job rotation
- Non-financial motivation involves moving employees from one task to another - Most common on a production line or in a factory Advantages - You have multi skilled employees who can carry out more than one tasks - It is less boring, easy and cost effective way motivate employees Disadvantages - May be moving an employee from one boring job to another so it will not motivate them - Uncertainty over job changes may be demotivating and there may be a loss of output as a worker
33
Job enrichment
- Non-financial motivation involves giving the employee a greater variety of tasks of a higher responsibility - E.g. Planning a task or ordering materials Advantages - Motivate employees by giving them a challenge Disadvantages - May be beyond the skill or the individual - May be seen as more work
34
Job enlargement
- Non-financial motivation involves giving an employee a variety of tasks of the same level of responsibility Advantages - Less boring and repetitive - More efficient, maximum out of an employee Disadvantages - Seen as more of the same, - Seen as more to do