3.6 Flashcards
Human resources performance
- An evaluation of the effectiveness of the policies that relate labour productivity, labour turnover and employee engagement to the corporate business
What is human resource management
“The design, implementation and maintenance of strategies to manage people for optimum business performance”
HR key points
- 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
Market conditions
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
Hard vs Soft HRM
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
Other influences on HR decisions
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
Why has HRM become more importnat
- 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
Many aspects of HRM
- Workforce planning
- Recruitment and selection
- Training
- Talent development
- Employee engagement & involvement
- Managing diversity
- Alignment of values
What is an HR objective
A specific goal or target of relating to the management and performance of people in a business
The value of effective HR objectives
- 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
HR objectives
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
Internal influences on HR objectives
- Recent history
- The CEO
- financial pressures
- Changing objectives
External influences on HR objectives
- Market changes
- Economic changes
- Technological changes
- Social changes
- Political and legal changes
Hard HRM summary
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
Soft HRM summary
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
Which is better - Hard of Soft HRM
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
Labour turnover
The percentage of workforce that leave a business within a given period
Number of employees leaving
——————————————- x100
Average number employed
Problems of high staff turnover
- 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
Skills audit
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
Workforce plan
- Recruitment
> Induction
> Training
> Internal vs external - Redeployment
> Training - Redundancy
Reasons to recruit staff
- 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
Recruitment methods
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
Internal recruitment
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
Induction taining
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