What internal factors affect HR objectives
Business culture
Funding
Other departments
What external factors affect HR objectives
The economy
UK employment laws
Ethical nd environmental issues
Technology
What is hard HRM
Employees hired on a short term basis
Managers believe employees are mainly motivated by money and will do as little work as possible
What is soft HRM?
Employees are the most important resource
Managers motivate employees through empowerment and development
Training is done to develop employees
What are the benefits and drawbacks of Haard HRM?
+ Managers keep control of the workforce
+ People are less likely to make mistakes
- can be demotivating leading to high staff turnover
- doesn’t use employees to full potential
What are the benefits and drawbacks to soft HRM?
+ likely to increase staff morale, increasing staff retention
+ Encourages good performance and gains from employees unique skills
- involves more costs
- employees may not be interested in development or empowerment
What are HR objectives?
employee engagement
talent development
training
diversity
alignment of employee and employer values
Number, skills and location of employees
What is the purpose of HRM?
to ensure that the business achieves the maximum benefit from its employees at the minimum cost
How do you calculate Labour productivity?
LP = output per period / number of employees
How do you calculate Labout cost per unit?
labour costs / unirts of output
How do you calculate employee costs as a percentage of turnover?
Employee cost as a % of turnover = (employee costs / sales turnover) x100
How do you calculate labour turnover?
(number of staff leaving / average number of staff employed) x100
What are the benefits of high staff turnover?
constant stream of new ideas
firms can recruit employees who have already been trained by competitors
What are the drawbacks of high staff turnover?
Lack of loyal and experienced staff
firms lose employees that have trained to competitors
Productivity dropped whilst new staff are trained
recruitment costs are high
How to calculate labour retention?
(number of staff employed at end of period - number of leavers / number of staff employed at end of period) x100
What are the benefits of flat hierarchical structures?
more responsibility and freedom for employees can be motivating
What are the drawbacks to flat hierarchical structures?
Managers can be overwhelmed which means they cannot manage effectively
What are the benefits to a tall hierarchical structure?
Employees can be managed more closely
What are the drawbacks of tall hierarchical structures?
Communication is slower and more complicated
Workers can feel micromanaged
What is delayering?
Removing parts of the businesses hierarchy
Helps to reduce costs and can improve communication
What is delegation?
Giving responsibility for decision making to people below the delagator in the hierarchy
What are the benefits of centralised decision making?
Business leaders have more experience
Senior managers aren’t biased towards one department
Decisions are made quickly
What are the drawbacks to centralised decision making?
Can be demotivating for employees
Not enough experience on the shop floor to notice consumer trend changes
What are the benefits of decentralised decision making?
Involvement motivates employees
Employees can use expert knowledge of their sector
Day to day decisions can be made quickly without having to ask a manager