6 - Human resource performance π©βπ» Flashcards
Define HR
the design, implementation and maintenance of strategies to manage people for optimum business performance
How is HR managed?
- workforce planning
- recruitment & selection
- training & development
- rewarding & motivating staff
- communication
- roles and responsibilities
Why is HR important for businesses that provide services?
people are critical in quality and customer service
Why is HR important for businesses in full markets?
High competitiveness means staff must be motivated to keep business efficient and productive
Why is HR important for businesses with flatter organisational structures?
fewer layers has placed a greater emphasis on management, delegation and communication
What are some human resource objectives?
- employee engagement/involvement
- talent development
- training
- diversity
- alignment of values
- number/skills/location of employees
What are internal influences on HR objectives?
- employee relations
- organisational structure
- financial constraints
- corporate culture
- overall performance of the business
What are external influences on HR objectives?
- legislation
- actions of competitors
- economic factors
- political factors
- technological factors
- social factors
- structure of population - demographics
Define Hard HRM
treats employees as a resource to be monitored and used efficiently in order to achieve strategic objectives
Define Soft HRM
treats employees as valuable assets, a major source of competitive advantage which is vital in achieving its strategic objectives
Hard HRM can be seen as what leadership style?
Autocratic
Soft HRM can be seen as what leadership style?
Democratic
Key features of Hard HRM
- minimal communication
- fast & efficient
- Theory X
- high levels of labour turnover
- little empowerment for staff
- demotivated
Key features of Soft HRM
- focus on job design/satisfaction
- motivating
- strong and two-way communication
- Theory Y
- low levels of labour turnover
Summarise Hard HRM
employees hired and fired as necessary
Summarise Soft HRM
employees trained and retained
Formula for labour turnover
No of employees leaving over given time / avg. no of employed over time X 100
Formula for retention rates
No of employees with 1+yrs service / overall workforce numbers X 100
Formula for labour productivity
Output per period / no of employees per period
Formula for labour costs per unit
Total labour costs / total units of output
Formula for absenteeism
Number of staff absent / no of staff in total X 100
Formula for employee costs as a % of revenue
Employee costs / revenue X 100
Benefits of low retention rates
- pay staff low wages = unskilled
- new ideas and enthusiasm
- may already be trained (from competitors)
Drawbacks of low retention rates
- recruitment is expensive
- training is costly
- loss of trained staff to competitors
- impacts customer service