3.6 Decision making to improve human resource performance Flashcards
(179 cards)
1
Q
Name effective ways of measuring the workforce
A
Staff Turnover • Labour Productivity • Absenteeism • Retention Rate
2
Q
Operational ways of measuring the workforce effectively
A
Capacity utilisation • Quality reports • Waste levels • Environmental targets
3
Q
Marketing ways for measuring business performance
A
Market share • Customer satisfaction • Recognition levels • Customer loyalty
4
Q
Why may a member of staff leave their employment?
A
Lack of authority • Bad working conditions • Competitors offer better pay • Stress / Mental Health / Personal
5
Q
Define Retention Rate
A
Retention rate is the percentage of employees who remain with a business over a specific time period
6
Q
Define Labour Turnover
A
The percentage of the workforce (employees) that leave a business within a given period
7
Q
Equation for Labour Turnover
A
Number of employees during period / Average number employed during period × 100
8
Q
Why is high staff turnover a problem?
A
Higher costs for re-recruitment • Increases pressure on remaining staff • Disruption to production and productivity
9
Q
Factors that may cause high staff turnover
A
Pay • Working conditions • Lack of promotion • Competition poaching staff • Poor communication • Economic conditions (e.g. during recession)
10
Q
How to improve staff turnover
A
Effective recruitment and training • Competitive pay and benefits • Job enrichment • Reward staff loyalty / incentives
11
Q
Define labour productivity
A
How much employees produce in a given time period – the more productive, the better
12
Q
Why does labour productivity matter?
A
Labour costs are normally a very high % of total costs • The efficiency of a business relies on how productive the workforce is • Competitiveness depends on keeping unit costs down
13
Q
Factors affecting labour productivity
A
Extent and quality of fixed assets (e.g. equipment and IT) • Ability to motivate the workforce • Methods of production used • External factors (e.g. reliability of suppliers)
14
Q
How to improve productivity
A
MOTIVATE! • Measure performance and set targets • Invest in better equipment • Simplify products • Improve employee training
15
Q
Define Absenteeism
A
Measure of people who are absent
16
Q
Equation for Absenteeism
A
(Number of staff absent during period / Number employed during period) × 100 OR (Number of days off for unauthorized absence / Total days worked by workforce) × 100
17
Q
How to tackle absenteeism
A
More days off • Investigate the cause • Set targets • Have clear absence policies • REWARD GOOD ATTENDANCE
18
Q
Problems of bad absenteeism
A
Costly • Time-consuming investigations • Productivity down
19
Q
How is absenteeism predictable?
A
Often highly predictable because it occurs at certain points in the year
20
Q
Define ‘Human Resource Management’
A
Design, implementation and maintenance of strategies to manage people for optimum business performance
21
Q
Why is HRM important?
A
People are critical to quality and customer service • Competitiveness requires a motivated, skilled, and organised workforce • Flatter structures increase need for delegation and communication
22
Q
Suggest strategic methods of HRM
A
Workforce planning • Recruitment and training/development • MOTIVATING STAFF • Organisational structures (hierarchy etc)
23
Q
Ensure human resources are employed cost effectively (HR Actions)
A
Competitive pay rates • Achieve acceptable staff utilisation • Measure ROI on training
24
Q
Make effective use of workforce potential (HR Actions)
A
Ensure suitable workloads • Avoid under/over-utilising staff • Use employee skills efficiently
25
Match the workforce to the business needs (HR Actions)
Workforce planning • Effective recruitment • Consider outsourcing • Spread out staff effectively
26
What does workforce planning ensure?
Right number of staff in right place with right skills
27
Maintain good employer / employee relations (HR Actions)
Honest, constant communication • Comply with employment legislation • Offer incentives
28
Internal influences on Corporate objectives (HR objective)
Cost reduction objective may lead to redundancies and job relocations
29
Internal influences on operational strategies (HR objective)
New IT systems may require staff training or reduction in staff
30
Internal influences on marketing strategies (HR objective)
New product/market may require structural changes and recruitment
31
Internal influences on financial strategies (HR objective)
Outsourcing training to reduce costs changes the training programme
32
External influences on market changes (HR objective)
Loss of market share may lead to management change or job cuts
33
External influences on economic changes (HR objective)
Recession leads to reduced staff costs and improved productivity
34
External influences on tech changes (HR objective)
Growth of social media may change employee/customer communication
35
External influences on legal changes (HR objective)
EU legislation imposes working time and employment rights restrictions
36
Define 'hard' HRM
Autocratic • Tall structures • Employees treated as resources • Centralised decisions • Minimal pay
37
Define 'soft' HRM
Democratic • Flat structures • Employees treated as assets • Long-term focus • Strong communication • Competitive pay
38
What is 'competitive pay'?
Comparable with similar jobs from other employers
39
What is the typical organisational structure for 'Soft HRM'
Flat
40
What is the typical organisational structure for 'Hard HRM'
Tall
41
Advantages of Hard HRM
Cost-effective • Quicker decision-making • Maximum control
42
Disadvantages of Hard HRM
High absenteeism and turnover • Poor recruitment • Low morale
43
Advantages of Soft HRM
Motivates employees • Rewards performance • Staff feel valued • Encourages teamwork
44
Disadvantages of Soft HRM
Costly • Can distract from corporate goals • Not all employees like employee-centred model
45
Key categories of human resource objectives
Employee engagement • Training • Diversity • Alignment of values • Number, skills and location of employees
46
Hackman and Oldham job characteristics model is based on
Belief that the task itself is key to employee motivation
47
5 characteristics of Hackman and Oldham model
Skill variety • Task identity • Task significance • Autonomy • Job feedback
48
Define 'task identity' (Hackman and Oldham)
Whether there is a clearly defined beginning, middle, and end to a task
49
Define 'task significance' (Hackman and Oldham)
The task has substantial impact or meaning
50
Define 'autonomy' (Hackman and Oldham)
Level of freedom to schedule and carry out work
51
Define 'job feedback' (Hackman and Oldham)
Employees receive performance feedback – positive and constructive
52
Define 'span of control'
Number of subordinates a manager is directly responsible for
53
Suitable span of control depends on
Manager personality • Nature of business • Employee independence • Organisation culture
54
Advantages of Narrow Span of Control
Closer supervision • Effective communication • Team cohesion
55
Disadvantages of Wide Span of Control
Fewer promotion opportunities • Poor discipline
56
Advantages of Wide Span of Control
More independence • Lower labour costs • Fewer managers
57
Disadvantages of Narrow Span of Control
Expensive • Limits independence • Too much supervision • Higher turnover
58
Define 'delegation'
Shifting authority/responsibility to another person, usually an employee
59
Define 'centralisation'
Decisions made at the top or head office, distributed down – autocratic
60
Define 'decentralisation'
Spreading decision-making through the organisation – democratic
61
Contextual example of 'centralisation'
Fast food franchises centralise to ensure consistency
62
Benefits of Centralisation
Keeps subordinates on task • Easier control and coordination • Cost savings • Quicker decisions
63
Drawbacks to Centralisation
Autocratic • Expensive layers • Low manager motivation • Poor local responsiveness
64
Define 'delayering'
Removing one or more levels of hierarchy from the organisational structure
65
Contextual example of 'decentralisation'
Hotel staff given customer service decision authority
66
Benefits to Decentralisation
Local responsiveness • Better customer service • Motivation • Flatter hierarchy
67
Drawbacks to Decentralisation
Inconsistent decisions • Harder to coordinate • Cost overruns
68
Define 'internal recruitment'
Filling a vacancy from within the current workforce
69
Define 'external recruitment'
Filling a vacancy from outside the business
70
Advantages of 'internal recruitment'
Cheaper • Familiarity • Promotes motivation • Known strengths/weaknesses
71
Disadvantages of 'internal recruitment'
No new ideas • Resentment • Vacancy remains • Limited choice • Bias
72
Advantages of 'external recruitment'
New ideas • Larger talent pool • Wider experience • Fairer process
73
Disadvantages of 'external recruitment'
Longer • More expensive • May choose wrong candidate
74
Define 'training'
Process of increasing skills and knowledge to improve job performance
75
Why is training long term?
Despite high cost, it boosts productivity and skill level
76
Why may a business use training?
Support new staff • Improve productivity • Better customer service • Adapt to tech or legislation
77
Benefits of training employees
Better quality • More productivity • Motivation • Flexibility • Less supervision • Retention
78
Three stages of training
Identify skills • Create action plan • Implement and monitor
79
Why may a business avoid training?
Fear of poaching • Cost • Time • Hard to measure benefits
80
Outline Taylor’s motivational theory
Motivated by money • Piece rate pay • Scientific management
81
Outline Maslow's motivational theory
Hierarchy of needs • Neo-human relations
82
Tiers of Maslow’s hierarchy
Physiological • Safety • Belonging • Self-esteem • Self-actualisation
83
Drawbacks of Maslow’s theory
Not all share same needs • Few reach top
84
Outline Elton Mayo's theory
Hawthorne experiments • Attention increases motivation
85
Hawthorne Experiments found
Manager attention improves worker motivation
86
Outline Herzberg’s theory
Motivation from hygiene and motivators • Job enrichment boosts motivation
87
Define 'hygiene factors' (Herzberg)
Their absence causes dissatisfaction • Don’t motivate if improved
88
Define 'job rotation'
Employees change jobs to increase interest and motivation
89
Define 'job enrichment'
Vertical job expansion • More responsibility and complexity
90
Advantages of job rotation
Covers absences • Reduces boredom • Identifies strengths
91
Disadvantages of job rotation
Time-consuming • Unfamiliarity • Resistance
92
Advantages of job enrichment
Lower stress • Higher productivity • Better morale • Job satisfaction
93
Disadvantages of job enrichment
Demand higher pay • Increase stress • Requires more monitoring
94
Define 'human resources'
Everything to do with managing people/staff
95
How does tech affect HR decision-making?
Replaces staff • Improves communication • Enables training
96
Define 'employee engagement'
• Degree of commitment shown by employees to their work and overall business objectives
97
Define 'employee involvement'
• Amount of contribution an employee can make to working practices and decision making
98
Quantities of involved workers
• Positive • Active • Seeks opportunities • Gets involved
99
Describe the 'Development Cycle'
• Talent planning • Recruitment • Orientation • Develop skills • Evaluate performance • Plan ahead/future targets • BACK TO BEGINNING
100
Internal influences on HR objectives
• Cost minimisation • Market growth • Maximise shareholder return • Increased competitiveness • Cutting budgets
101
External influences on HR objectives
• Workforce skills/availability • Tech changes • Market conditions • Politics
102
Define 'alignment of values'
• Ensuring everyone works towards business objectives
103
What category is 'alignment of values' part of?
• a. HR ✅
104
What category is 'brand loyalty' part of?
• b. Marketing ✅
105
What category is 'quality' part of?
• c. Operations ✅
106
What category is 'return on investment' part of?
• d. Financial ✅
107
Financial incentives businesses may use
• Time-based pay • Piece-rate • Commission • Bonuses • Employee share schemes
108
Non-financial incentives businesses may use
• Job enrichment • Job enlargement • Job rotation
109
Difference between 'job enlargement' and 'job enrichment'
• Enlargement = horizontal expansion (more tasks) • Enrichment = vertical expansion (more responsibility)
110
Define 'job enlargement'
• Horizontal expansion with extra duties/tasks
111
Define 'job design'
• Number and variety of tasks for an employee
112
Three psychological states of HR
• Meaningfulness • Responsibility • Knowledge of results
113
Outline 'personal and work outcomes'
• Higher motivation • High-quality work • Job satisfaction • Lower absenteeism/staff turnover
114
Order to analyse HR performance
• Job Characteristics • Psychological States • Personal & Work Outcomes
115
Define 'centralised authority'
• Maintained by a few at the top
116
Define 'decentralised authority'
• Spread across organisation
117
Define 'organisational structure/design'
• System outlining how tasks/authority are directed to meet goals
118
Define 'organisational chart'
• Diagram showing roles, responsibilities, and relationships in a company
119
Define 'accountability'
• Condition of being responsible
120
Define 'responsibility'
• Having control over tasks/people
121
Difference: 'span of control' vs 'chain of command'
• Span = how many people managed • Chain = level of hierarchy
122
Define 'chain of command'
• Levels of hierarchy
123
Advantages of 'delayering'
• Better communication • More delegation • Cost saving • Better customer service • Less rivalry
124
Disadvantages of 'delayering'
• Job losses • Motivation drop • Ethical concerns • Disruption • Overworked managers • Skill shortages
125
Define 'recruitment'
• Finding people to work for a company
126
Define 'selection'
• Choosing the most suitable candidate
127
Why may a business recruit?
• Replace leavers • Gain new skills • Support expansion/product launches
128
Steps in job process
• Vacancy • Job description • Person spec • Advertise • Apply • Shortlist • Interview • Appointment
129
Define 'flexible workforce'
• Multi-skilled workers able to do a variety of functions
130
Define 'full-time' employment
• Works minimum hours set by employer
131
Define 'temporary' employment
• Fixed-term contract employment
132
Define 'permanent' employment
• Full-time, salaried with no end date
133
Define 'fixed term' employment
• Contract ends on a specific date/task completion
134
Define 'seasonal' employment
• Short-term jobs for seasonal/peak demand
135
Define the 'shamrock model'
• 3 workforce types: Contract • Core • Peripheral
136
Define 'downsizing'
• Permanent reduction of workforce due to low productivity
137
Advantages of flexible workforce
• Cost savings • Efficiency • Seasonal flexibility
138
Disadvantages of flexible workforce
• Communication issues • Lower productivity • Work-life imbalance • Isolation
139
Define 'trade union'
• Worker group protecting rights/interests through representation
140
Three main types of trade unions
• Craft • Industrial • General
141
Define 'craft' union
• Represents skilled workers in a specific craft (e.g. bricklayers)
142
Define 'industrial' union
• Represents all workers in a particular industry
143
Difference: 'craft' vs 'industrial' union
• Craft = specific skills • Industrial = all skill levels in industry
144
Define 'general' union
• Represents workers from any industry
145
How do trade unions help workers?
• Advice • Representation • Improve wages and conditions
146
What does 'recognising' a union mean?
• Employer agrees to negotiate formally with the union
147
Benefits of trade unions for employers
• Easier negotiation • Early conflict resolution • Morale boost
148
Benefits of trade unions for employees
• Better conditions • Skills training • Legal advice • Sense of belonging
149
Define 'industrial dispute'
• Conflict between management and employees
150
Define 'industrial action'
• Employee protests like strikes/slowdowns to gain bargaining power
151
Four forms of industrial action
• Strike • Overtime ban • Work-to-rule • Go-slow
152
Why is industrial action effective?
• Employees are essential
153
Define a 'strike'
• Refusal to work as protest
154
Define 'overtime ban'
• Refusal to work beyond contracted hours
155
Define 'work-to-rule'
• Doing the bare minimum required
156
Define 'go-slow'
• Working at reduced efficiency
157
Advantages of strikes
• Employee empowerment
158
Disadvantages of strikes
• Lost productivity • Risk of replacement • No pay
159
Advantages of work-to-rule
• Less disruptive • Lower risk
160
Disadvantages of work-to-rule
• May be ineffective if minimum is already enough
161
Advantages of go-slow
• Less disruptive than strikes • Still earning
162
Disadvantages of overtime ban
• May not affect business if no overtime needed
163
Problems of industrial action for both parties
• Employer: productivity loss • Employee: job insecurity, no pay
164
Define 'single union agreement'
• Employer recognises one union in return for no strikes
165
Define 'no-strike agreement'
• Employees agree not to strike
166
Define 'ACAS'
• Advisory body helping employers/employees resolve disputes
167
Define 'conciliation'
• Mediator helps resolve disputes
168
Define 'arbitration'
• Arbitrator makes binding decision like a judge
169
Define 'mediation'
• Neutral party helps both sides negotiate
170
Define 'union density'
• % of workforce in a union
171
Examples of UK strikes
• 1972: Miners • 1982: British Rail • 2019: Heathrow
172
Define 'employee representation'
• Systems allowing employees to express views
173
Examples of employee representation
• Trade unions • Work councils
174
Objectives of trade unions
• Secure jobs • Maximise pay • Safe conditions • Fair treatment
175
Unions help improve businesses by…
• Enhancing performance • Competitiveness • Reducing turnover • Boosting motivation
176
Define a 'work council'
• Elected group of managers and employees discussing workforce issues
177
Criteria for a work council
• Over 50 employees • One rep per 50 workers
178
Define 'human resources'
• All things staff-related
179
Examples of HR analysis
• Labour productivity • Turnover • Retention • Staff skills • Morale • Training
