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CIMA E1 > 11 - Finance Function & HR > Flashcards

11 - Finance Function & HR Flashcards

1
Q

Devanna role of HR diagram: state 5 components & how it flows

A

Selection –> performance –> appraisal –> rewards & also –> training & dev. rewards feedback to perf & training&dev feedback to selection.

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2
Q

What is selection?

A

Process of ensuring org obtains people with qualities and skills it requires. Usually preceding by recruitment (attracting applicants).

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3
Q

Appraisal =

A

Identifies skills & perf gaps & provides info relevant to rewards levels. Enables setting of targets that contribute to achievement of org’s strategic objs.

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4
Q

Google definition of appraisal =

A

a formal assessment, typically in an interview, of the performance of an employee over a particular period. Can be used as basis for pay rises & IC.

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5
Q

Training & dev ensures…

A

employee skills remain UTD and relevant.

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6
Q

The reward system helps…

A

Motivate and retain valued staff.

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7
Q

Devanna HR diagram: what does performance depend on?

A

Each of the 4 components (selection, appraisal, rewards, training & dev) and how they’re coordinated.

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8
Q

HR planning is concerned with…

A

the acquisition, utilisation, improvement and return of an org’s human resources.

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9
Q

HR plans usually cover a period of…

A

3-5 years

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10
Q

HR plans identify gaps between…

A

demand for numbers/types of labour & supply currently employed.

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11
Q

HR plan stage 1 =

A

strategic analysis. Consider org’s strategic plan & bis environ to analyse manpower, strengths, weaknesses, use of employees, threats.

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12
Q

HR plan stage 2 =

A

internal analysis. Staff audit to identify numbers and skills. Consider issues such as turnover, absenteeism, overtime worked, staff potential.

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13
Q

HR plan stage 3 =

A

Gap analysis between labour demand and supply. Identify staff shortfalls or surpluses.

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14
Q

HR plan stage 4 =

A

Plan to close the labour gap.

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15
Q

5 ways org can deal with staff shortages.

A
  1. Internal transfers: promotion, training
  2. External recruitment
  3. Reducing turnover by reviewing causes
  4. Overtime
  5. New equip/training to improve productivity
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16
Q

4 ways org can deal with staff surpluses.

A
  1. Allow numbers to fall through natural wastage
  2. Restrict recruitment
  3. FTE –> part-time
  4. Redundancies - last resort & with careful planning.
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17
Q

HR plan stage 5 =

A

review effectiveness of human resources in helping org achieve strategic objs. Feeds back into next HR plan.

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18
Q

What does knowledge workers refer to?

A

Shift from manufacturing –> service provision.

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19
Q

Knowledge workers: 4 implications for appraisals/rewards/progression/training.

A
  • good prospects for career progression
  • appraisals & rewards aligned with goal of providing quality info
  • Training, dev & appraisals should seek attainment & development of knowledge - encourage employees to take ownership of their own t&d
  • perf related pay and profit sharing schemes
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20
Q

Knowledge workers: 3 implications for HR policies

A
  • Policies to encourage sharing of knowledge through team working and job rotation.
  • Retain knowledge within org: provide career paths & fill vacancies internally.
  • recruit for knowledge, not ability to physically do something
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21
Q

What are high-perf work arrangements? What are implications?

A

Practices to achieve high employee performance. - They’re dependent on skills, ideas, commitment and intelligence of employees for success. Open comms between people at all levels. employer should compromise and negotiate with emp. Job design/enrichment/rotation important.

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22
Q

Recruitment is defined as…

A

the process of finding applicants: going into labour market, comm opportunities and info & generate interest.

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23
Q

Summarise: the recruitment process begins with… and ends with…

A

begins with determining nature of vacancies

ends with shortlisting candidates for selection.

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24
Q

State 5 stages of recruitment

A
  1. Job analysis
  2. Job design
  3. Job description
  4. Advertise job vacancies
  5. Initial screening
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25
Q

Job analysis =

A

the process of collecting, analysing and setting out info about the content of jobs to provide a basic job description and data for recruitment/training/evaluation/perf mgmt. It concentrates on what jobholders are expected to do.

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26
Q

6 aspects included in job analysis

A
  1. Purpose & content of job
  2. Who responsible for
  3. How perf judged
  4. How fit into org & who report to
  5. Promotion/career paths
  6. working conditions, health & safety
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27
Q

Job design =

A

the development and outlining of competences within a competency framework

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28
Q

Define competencies

A

Skills and behaviours that enable the worker to meet the requirements of the job.

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29
Q

Define competency framework

A

Formal methods of grouping, analysing and defining competencies that are expected of those employed by org.

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30
Q

What does job design really try to ensure for the org?

A

It identifies org’s strategic needs for diff types of workers to ensure employee pool reflects cultures and values as well as having appropriate mix of skills and behaviours to ensure diversity and talent.

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31
Q

Competence area: Intellectual (3 e.g)

A
  • Strategic perspective
  • Analytical judgement
  • planning and organising
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32
Q

Competence area: Interpersonal (5 e.g)

A
  1. Managing staff
  2. Interpersonal sensitivity
  3. Persuasiveness
  4. Oral comms
  5. Assertiveness and decisiveness
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33
Q

Competence area: Adaptability (2 e.g)

A

Flexibility

coping w change

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34
Q

Competence area: Results (3 e.g)

A
  1. Initiative
  2. Motivation to achievement
  3. Business sense
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35
Q

State the 4 competence areas again

A
  1. Intellectual
  2. Interpersonal
  3. Adaptability
  4. Results
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36
Q

Define job description

A

sets out the purpose of the job, where it fits into org structure, content of job, accountabilities and main tasks.

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37
Q

Job description vs job design

A

Job description essentially putting job design on paper & providing more specifics.

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38
Q

What is included in job description?

A

Job title; location; who responsible to/for; authority level; purpose; main tasks listed by importance; skills required (technical, physical, capabilities); working hours.

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39
Q

Job descriptions are often written ito…

A

outputs and perf levels expected. Some orgs moving towards accountability profiles where outputs and perf identified explicitly.

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40
Q

An alternative to job descriptions =

A

Role definitions. Role = part played in meeting objs by working competently and flexibly within context of org’s objs, structures & processes.

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41
Q

An alternative to job description & role definition

A

Person specification = focuses on skills and qualities required. May cover personal skills, motivation, aptitude, qualifications, personality, intelligence.

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42
Q

3 things the choice of job advert medium depends on…

A
  1. Cost
  2. Frequency want to advertise
  3. Suitability to target audience
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43
Q

Why might org delegate to employment agency?

A

Ease the effort involved in both recruitment and selection. Especially junior posts can be filled from agency’s pool of registered candidates.

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44
Q

Recruitment/selection of more senior staff can be outsourced to…

A

Executive search agencies (which manage entire process incl. initial interview.)

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45
Q

What does initial screening involve?

A

Reviewing CVs and selecting some candidates for interview.

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46
Q

Selection is defined as…

A

Procedures to choose the successful candidates from those made available by recruitment efforts. Filtering process by reviewing apps, interviewing and testing.

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47
Q

4 characteristics for effective selection process

A
  1. Reliable - generates consistent results
  2. Valid - accurately predict perf
  3. Fair - non-discriminating
  4. Cost effective - benefits > costs
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48
Q

2 consequences of ineffective selection process

A
  1. employ unsuitable applicants

2. reject suitable applicants

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49
Q

Job adverts usually ask or CV or application form to be completed. What type of roles is CV more usual for? What type of roles are application forms more usual for?

A

CV for executive posts.

App forms for below executive level & at all levels in public sector.

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50
Q

What’s an individual job interview?

A

1-1 discussion between candidate and interviewer face to face.

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51
Q

What’s a problem solving job interview?

A

Similar to individual interview but candidate asked to solve a hypothetical problem.

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52
Q

What’s a tandem job interview?

A

2 interviewers per candidate.

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53
Q

What’s a panel job interview?

A

Group of interviewers interview the candidate together.

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54
Q

What’s a succession/sequential job interview?

A

Alternative to a panel, candidate faces number of diff interviews with different people in org, 1 at a time.

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55
Q

What’s a group job interview?

A

Similar to problem solving but this time with a number of candidates who must solve problem together.

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56
Q

What has research show about interviews?

A

That they often fail to accurately predict performance in a job.

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57
Q

What is a ‘Horns & Halo’ effect during interviewing?

A

Tendency to make initial general judgement about a person, either positive or negative, based on a single attribute then this colours later perspectives so the interviewer marks up or down on every other factor in their assessment. e.g. how someone is dressed.

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58
Q

What is contagious bias during interviewing?

A

Interviewers might change the behaviour of the applicant through wording of Qs / non-verbal cues.

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59
Q

2 other errors in judgement in interviews

A
  1. Stereotype based on insufficient evidence e.g. accent, dress.
  2. Incorrect assessment of qualitative factors such as motivation, integrity - hard to assess abstract qualities.
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60
Q

What are psychological/personality tests? One well-known example.

A

Answer series of Qs or score a variety of statements which indicate basic attitude profiles. E.g. Cattell P16 PF test - covers 16 aspects of personality.

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61
Q

What are cognitive tests?

A

Tests relating to thinking processes. Intelligence tests (general intellectual ability) & aptitude tests (maths, general knowledge etc).

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62
Q

What are proficiency tests?

A

Measure candidates ability to do the work involved.

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63
Q

What are psychometric tests?

A

Contain features of personality/cognitive/proficiency tests. They are selection tests that quantify psychological dimensions such as intelligence, motivation and personality.

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64
Q

What are medical tests?

A

Eliminate candidates with health problems which are deemed a barrier to the role e.g. pilots, army.

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65
Q

What are group selection methods and when are they used?

A

In final stage of selection for mgmt jobs, not lower roles as costly. Series of tests, interviews and group situations over 2 ish days involving 6-8 candidates.

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66
Q

What are assessment centres and when are they used?

A

Candidate’s behaviour is observed and judged by >1 assessor using specifically developed simulations. Senior positions as time consuming and costly.

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67
Q

State some egs of activities used during assessment centres.

A

presentations; games; speeches; role play; self-appraisal; written tests; peer rating etc.

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68
Q

What do references enable employers to do? What are they limited in?

A

Can check basic accuracy of CV but only factual info - previous employers reluctant to give opinions because could leave them open to complaints of providing false/unfair info.

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69
Q

What do job offers include?

A

Must be in writing and contain details such as title, pay, benefits, location, contractual hours, notice period & other conditions of employment.

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70
Q

What follows after a job offer is made?

A

Negotiation - parties seek to reach agreement over various aspects of contract.

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71
Q

What comes after a contract is agreed upon? (2 things)

A
  1. Pre-employment comms

2. Induction by supervisor/dept trainer/HR staff/combo

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72
Q

What is dialogic learning (in induction)?

A

Integrating recruits into how the org operates, including culture, beliefs and mission.

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73
Q

Human resource development =

A

the process of extending personal abilities and qualities by means of education, training & other learning experiences.

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74
Q

Development definition

A

the growth or realisation of a persons ability & potential thru learning and educational experiences.

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75
Q

Training definition

A

the planned and systematic modification of behaviour thru learning events, programs, instructions which enable ind to achieve the level of knowledge, skills and competence to carry out their job effectively.

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76
Q

Difference between development vs training

A 
Development = more LR - realising potential
Training = something specific which makes you better almost immediately.
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77
Q

3 purposes of HR dev

A
  1. Ensure org meets current and future perf objs
  2. Continuous improvement of perf
  3. Max people’s potential for growth & promotion
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78
Q

3 elements of HR dev strategy

A
  1. Identify skills & competencies needed by bis plan
  2. Draw up strategy to show how t&d will assist in meeting targets of corporate plan
  3. Implement t&d strategy
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79
Q

Why to orgs adopt a planned approach to training?

A

To ensure training meets the real needs of the org.

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80
Q

Planned approach to training: describe ‘identifying training gap & defining org’s training needs’ stage

A

Current training state (knowledge & skills have) vs desired. Training programs designed to eliminate gap = improved perf.

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81
Q

Planned approach to training: describe ‘define learning required’ stage

A

Specify knowledge, skills, competencies that have to be acquired e.g. for technical training, all emp have to learn how to use a new system.

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82
Q

Planned approach to training: describe ‘define training objectives’ stage

A

Specify what must be learned and what trainees must be able to do after the training exercise.

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83
Q

Planned approach to training: describe ‘plan training programs’ stage

A
  • who provides training?
  • where takes place
  • divisions of responsibilities between trainers, mgrs or team leaders and ind.
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84
Q

2 final stages of planned approach to training

A
  • implement the training

- evaluate: repeat process of learning objs not achieved.

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85
Q

Define personal development plans (PDP)

A

Clear developmental action plans for an individual that incorporates a wide set of developmental opportunities including formal training.

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86
Q

2 purposes of PDPs for the individual

A
  1. Improve perf in existing job

2. Develop skills for future career moves within and outside org.

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87
Q

3 stages of preparing a PDP

A
  1. Analyse current position: SWOT analysis
  2. Set SMART objs for existing job, future changes in current role, moving elsewhere.
  3. Action plan to achieve goals.
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88
Q

7 examples of formal training methods

A
  1. Internal courses
  2. day release courses
  3. distance learning, evening classes
  4. revision courses for exams of prof bodies
  5. block release courses (e.g. 4 wks)
  6. sandwich courses (6 months)
  7. sponsored full-time course
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89
Q

2 cons of formal training

A
  1. Only benefit if ind wants to learn

2. Quickly forget if not used in role

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90
Q

3 characteristics for effective on job training

A
  1. Assigns should have specific purposes from which trainee can learn and gain experience
  2. Org must tolerate mistakes - they’re inevitable
  3. Work not too complex
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91
Q

2 methods of on the job training

A
  1. Demonstration/instruction: trainee told/shown how to do something then left to do it.
  2. Coaching: under guidance of experienced emp who shows how to do it.
92
Q

2 pros of on the job training

A
  1. Training relevant to job

2. Training JIT - specific queries are identified

93
Q

2 cons of on the job training

A
  1. Real customers may not like being used for training

2. Manager might not be a good coach

94
Q

Kirkpatrick: 4 levels that training can be evaluated at =

A
  1. Reaction - engagement, enjoyment
  2. Learning - knowledge absorbed?
  3. Behaviour - required behaviour change occurred?
  4. Results - what benefits (quality, costs)
95
Q

What does evaluating training require and is it easy to do?

A

Measure before and after training. But hard to tell with certainty what changes directly attributable to the training.

96
Q

Benefits of T&D to org: 3 benefits ito costs

A
  1. Cheaper to train own staff than recruit to obtain required skills
  2. Increased productivity = lower costs
  3. Less supervision needed = can delayed
97
Q

Benefits of T&D to org: ito health & safety

A

fewer accidents. Certain level of health and safety training is required. Less likely to be taken to court.

98
Q

Benefits of T&D to org: recruitment & succession planning

A

T&D attracts new recruits and ensures org has suitable supply of managerial and technical staff to take over when people retire.

99
Q

Benefits of T&D to org: ito change (2)

A
  • Multi-skilling = more flexibility

- Change mgmt easier as workers have skills to cope

100
Q

Benefits of T&D to org: ito corporate culture

A

T&D can help build corporate culture by showing certain values are needed. Can also building relationships between emp in diff areas of bis.

101
Q

Benefits of T&D to org: ito motivation

A

Increased commitment to org goals.

102
Q

Benefits of T&D to ind: skills

A

Enhanced portfolio of skills - even if not specific to current job. Become more attractive to emp and promotable.

103
Q

Benefits of T&D to ind: psychological benefits

A

reassurance you are of continuing value to org.

104
Q

Benefits of T&D to ind: social benefits

A

Meet social needs on training courses - develop new network of contacts,

105
Q

Benefits of T&D to ind: the job

A

Help people do their current job better = increased job satisfaction.

106
Q

Career mgmt =

A

a technique whereby the progress of inds within an org from job to job is planned with org needs and ind capacity in mind.

107
Q

Succession planning =

A

ensures suitable replacements (ito experience & ability) are available to take over positions above them as they become available. Used in larger orgs to plan logical progression of ind through hierarchy over time.

108
Q

2 ways career mgmt is an org issue (not just ind)

A
  1. Ensures org has reserve of mgrs in waiting - important for flat/delayed orgs where larger jump in responsibility.
  2. Ensures people get right training to develop right abilities.
109
Q

5 pros of career mgmt/succession planning

A
  1. Cheaper than advertising or using agencies
  2. develops career structures
  3. Motivation as rewards visible
  4. Maintains culture as long serving emps promoted
  5. Logical & rational to plan for future
110
Q

5 cons of career mgmt/succession planning

A
  1. Large talent pools mean hard to choose who to promote & reduces fresh blood @ higher lvls
  2. Vacancies b4 replacements are ready
  3. Better candidates outside ignored
  4. Resources for planning
  5. Job for life outdated concept: best staff might leave b4 vacancies available.
111
Q

Performance mgmt is defined as…

A

the process of getting the best out of employees and ensuring their perform their roles in effective and satisfactory manner so org objs acheived.

112
Q

2 areas perf mgmt is concerned with

A
  1. Creating work environ conducive to allowing emp to work as close to potential as possible.
  2. Analysis perf levels & feeding back into T&D
113
Q

Perf mgmt stage 1

A

Target setting: emp and manager agree SMART objs.

114
Q

Perf mgmt stage 2

A

Monitor perf: mgr provides feedback during period. Rewards and support provided if targets might be missed,

115
Q

Perf mgmt stage 3

A

Review perf: formal appraisal @ end of period.

116
Q

Perf mgmt stage 4

A

Action plan: new targets for next period.

117
Q

Appraisals =

A

systematic review and assessment of emp performance, potential and training needs.

118
Q

The general purpose of appraisal system is to….

A

improve emp effectiveness. Ensure perf to best of ability and developing potential, and org best utilising their abilities.

119
Q

6 objs of appraisals

A
  1. Establish key deliverables
  2. Quality control: perf vs standard
  3. Identify T&D needs in light of actual perf
  4. Identify areas for improvement
  5. Monitor initial selection procedures vs perf
  6. Improve comms between diff levels in hierarchy
120
Q

Appraisal technique: overall assessment

A

managers write in narrative form their judgements about the emp. Bit subjective.

121
Q

Appraisal technique: guided assessment

A

Comment on specific characteristics and perf elements with guidelines as to how they are interpreted in the work context.

122
Q

Appraisal technique: grading

A

Grading adds a comparative frame of reference to general guidelines. Manager selects a level or degree for a given characteristic.

123
Q

Appraisal technique: behavioural incident methods

A

Emp behaviour measures against typical behaviour in each job as defined by common critical incidents of successful and unsuccessful job behaviour reported.

124
Q

Appraisal technique: objectives and results-orientated schemes.

A

Review perf vs specific targets i.e. SMART targets that you’d agreed in advance.

125
Q

Appraisal technique: common appraisal standards

A

Assessments made relative to a common standard (e.g. define competency framework) to make inter-person comparisons.

126
Q

Self appraisals =

A

Ind carries out own self-eval as a major input.

127
Q

Upwards appraisals =

A

emp rated by subordinates.

128
Q

Customer appraisals =

A

Feedback from customers (internal or external) - customers best judge of customer service which mgr might not see.

129
Q

180 degree appraisal = + 1 pro

A

Manager obtains feedback from colleagues and peers of person being rated. May prevent supervisor from giving unfair assessment as know mgr gets feedback from elsewhere.

130
Q

360 degree appraisal =

A

Downwards (feedback from superiors) + upwards (feedback from subordinates) + customer appraisals together.

131
Q

Appraisal system is typically linked to what system? Why?

A

Rewards system. Employees generally believe extra effort and excellent perf should be rewarded.

132
Q

5 drawbacks to linking appraisals and rewards systems

A
  1. Funds available for pay rises don’t depend on ind perf, org as a whole.
  2. Continuous improv should be expected, not rewarded as extra.
  3. Low inflation environ, cash pay rises fairly small.
  4. Hard to compare between ind (esp small orgs cannot afford rigorous eval scheme)
  5. Perf mgmt about more than pay for past perf, often fwd looking.
133
Q

What does ‘many business have to run to stand still’ mean?

A

Continuous improvement always necessary.

134
Q

Lockett barriers to effective appraisals: appraisal as confrontation

A

Lack of agreement on perf; subjective feedback; bad delivery; based on yday perf, not whole year; disagree on LR prospects.

135
Q

Lockett barriers to effective appraisals: appraisal as judgement

A

1 sided process which mgr acts as judge, jury & prosecution. Needs to be jointly operated to retain commitment and develop self awareness of ind.

136
Q

Lockett barriers to effective appraisals: appraisal as chat

A

Friendly chat which nothing meaningful comes out of. Lots of unresolved issues if mgrs feel awkward.

137
Q

Lockett barriers to effective appraisals: appraisal as bureaucracy

A

Form-filling exercise to satisfy personnel dept. Its underlying purpose in improving perf forgotten.

138
Q

Lockett barriers to effective appraisals: appraisal as unfinished bis

A

Should be part of continuing process of perf mgmt.

139
Q

Lockett barriers to effective appraisals: appraisal as annual event

A

Targets become irrelevant or out of date over a year.

140
Q

Motivation is defined as…

A

an employee’s desire to perform their role. Often linked to the outcome and any rewards.

141
Q

Why is it of org interest to know what motivates emp?

A

because it influences productivity & quality. Understanding motivates –> provide better environ to maximise perf.

142
Q

Taylor’s 4 principles of maximising prosperity (motivation theory)

A
  1. Science used to determine fair pay
  2. Scientific methods in recruitment & selection
  3. Mental rev: staff encourage to fulfil potential
  4. Constant & intimate coop between mgmt & staff
143
Q

Outline Taylor’s overall theory on motivation

A

Workers rational & motivated by highest remuneration. Break down jobs into scientific functions to work out how long a task should take, then base payment/recruitment off of this.

144
Q

Mayo’s human relations motivation theory

A

People motivated by social or belonging needs satisfied by social relationships formed at work.

145
Q

What is Maslow’s hierarchy of needs?

A

A ranked structure of behavioural stimuli within the ind which explain motivation. Assumes one best way to motivate all.

146
Q

Maslow’s hierarchy of needs is an example of what type of theory of motivation?

A

Content theory of motivation

147
Q

Maslow: what are the 2 higher order needs?

A
  1. Need for freedom of inquiry & expression: free speech, justice, fairness and honesty.
  2. Need for knowledge and understanding: explore, learn, experiment - essential pre-reqs for satisfaction of remainder.
148
Q

Maslow: the other 5 needs can be arranged into what?

A

A hierarchy of relative pre-potency. Each level of need is dominant until satisfied. A need which is satisfied no longer motivates.

149
Q

Maslow: state the 5 needs in the hierarchy from bottom up (+ some egs)

A
  1. Physiological needs (food, shelter)
  2. Safety (security, order)
  3. Love/social
  4. Esteem (independence, recog, status, respect)
  5. Self-actualisation (fulfilment of potential)
150
Q

Can Maslow’s self-actualisation need be met?

A

NO - never satisfied.

151
Q

How can Maslow’s esteem & self-actualisation needs be meet by rewards?

A

esteem: promotion and pay rises

Self ac: challenge and achievement

152
Q

What are Herzberg’s 2 factors?

A

Hygiene factors

Motivator factors

153
Q

Herzberg: what are hygiene factors?

A

Preventative. They prevent or min dissatisfaction but do not give satisfaction.

154
Q

What are Herzberg’s hygiene factors AKA + why?

A

AKA Maintenance factors - have to be continually renewed to avoid dissastisfaction.

155
Q

Herzberg: what are motivator factors?

A

Create job satisfaction and motivate to superior perf and effort. Sense of fulfilment and personal growth.

156
Q

Is dissatisfaction or demotivation worse for org?

A

Dissatisfaction as disruptive to other workers. Demotivated but satisfied = won’t work hard but also wont disrupt others.

157
Q

6 egs of Herzberg hygiene factors

A
  1. Company policy & admin
  2. Salary
  3. Quality of supervision
  4. Interpersonal relationships
  5. working conditions
  6. job security
158
Q

6 egs of Herzberg motivator factors

A
  1. Advancement
  2. Recognition
  3. Responsibility
  4. Challenge
  5. growth in role
  6. autonomy
159
Q

Is Status a hygiene or motivator factor?

A

Could be both.

160
Q

McGregor theory X people

A

Dislike work and responsibility - avoid both if possible. Must be coerced, controlled and threatened with punishment to get them to make adequate effort.

161
Q

McGregor theory Y people

A

Ind who want to satisfy their needs thru work and wish to make a contribution. Allow these ind to follow their own path and satisfy their own needs.

162
Q

4 issues with taking McGregor’s theory X approach

A
  1. Strict controls & close supervision may be source of conflict
  2. Self-motivation may be more effective & less confrontational
  3. Treating theory X may prevent use of initiative & encourage doing min
  4. Theory X inefficient if ind not $ motivated or not afraid of punishment
163
Q

Vroom’s expectancy theory is what type of motivation theory? Describe what this means.

A

Process theory - asks how people are motivated & based on cognitive psychological assumptions that humans rational and aware of their goals and behaviour.

164
Q

Outline Vroom’s expectancy theory

A

Formula by which motivation can be assessed and measured based on expectancy theory of work motivation.

165
Q

Vroom expectancy theory formula

A

Force/strength of motivation = Valence x Expectation

166
Q

Vroom: what is valence?

A

valence = strength or preference for a certain outcome. +VE (desired), -VE (avoided) or 0 (indifference).

167
Q

Vroom: what is expectation?

A

Subjective probability (0-1) that behaviour will result in desired outcome.

168
Q

What is goal setting theory + 3 aspects

A

Goals can motivate.

  1. Challenge goals, if accepted, lead to better perf than easy goals.
  2. Best goals are specific as focus attention
  3. Knowledge of results essential
169
Q

How does Mullins define motivation?

A

as the driving force within individuals by which they attempt to achieve some goal in order to fulfil some need or expectation.

170
Q

Mullins: 3 classifications for understanding motivation

A
  1. Econ rewards
  2. Intrinsic satisfaction (enjoyment, personal dev)
  3. Social relationships
171
Q

What are psychological contracts?

A

Understanding between org and ind based on what each party wants and what prepared to give for it, aside from written formal contract.

172
Q

Psychological contracts: what does ind expect & prepared to give in return?

A

expect benefits from employment, offer labour and effort in return.

173
Q

Psychological contracts: what does org expect & prepared to give in return?

A

org expects ind to fulfil certain requirements, offers rewards in return.

174
Q

State the 3 types of psychological contracts

A
  1. Coercive
  2. Calculative
  3. Cooperative
175
Q

What are coercive psychological contracts?

A

Ind feels forced to contribute efforts and energies involuntarily and rewards are inadequate compensation.

176
Q

What are calculative psychological contracts?

A

Ind voluntarily accepts and expect to do job in return for readily identifiable set of rewards. Motivation only increased if rewards are.

177
Q

What are cooperative psychological contracts?

A

Ind identifies with org and its goals, actively seek to contribute further. Motivation from success, sense of achievement and self-fulfilment

178
Q

Other factors improving motivation: job design =

A

Improve perf through increasing the understanding and motivation of employees. Ensure job suits ind in terms of what motivates them and need for personal growth and dev.

179
Q

Other factors improving motivation: job rotation =

A

allows ind some variety by moving from one task to another. Done spontaneously. Permits dev of extra skills but not depth of skill.

180
Q

Other factors improving motivation: job enlargement =

A

Increase width of job by adding extra, usually related tasks. Not that popular.

181
Q

Other factors improving motivation: job enrichment =

A

Increase depth of responsibility by adding elements of planning and control = increased meaning and challenge. Greater autonomy and growth.

182
Q

How can flexible workforce arrangements be useful?

A

In attracting, retaining and motivating workforce.

183
Q

6 ways to achieve flexible working

A
  1. remote working
  2. flexitime (hourly targets to achieve pattern to suit)
  3. Shift system
  4. Compressed week - fewer, longer days
  5. Job sharing (2 ind full-time role between them)
  6. Part time
184
Q

Task/functional flexibility =

A

give emp the ability to move freely between tasks.

185
Q

Financial flexibility =

A

use compound remuneration systems such as salary plus bonus to link perf to reward.

186
Q

2 factors affecting how much of a motivator pay is

A
  1. Value ind ascribe to pay

2. Way incentive schemes implemented

187
Q

2 basic pay concerns ind have

A
  1. Equity - fair rate for job

2. Relativity/fair differentials - justified diff between pay of diff ind.

188
Q

3 goals for pay @ org level

A
  1. aid recruitment
  2. retain emp
  3. reward emp for perf
189
Q

6 goals for pay @ managerial level

A
  1. Attract & retain suitable quality
  2. reward & motivate fairly & consistently
  3. further org objs
  4. encourage perf & prog thru dev
  5. recog non-perf factors like skill & competence
  6. ensure salary costs controlled
190
Q

Graded pay structure

A

pay range attached to particular levels of job graded

191
Q

Broad-banded pay structure

A

encompass whole workforce from clerk to senior mgr

192
Q

Individual pay structure

A

Pay alloc to ind rather than bands. Used for senior mgmt positions and avoids over/under payment resulting from grading.

193
Q

Job family pay structure

A

Jobs in specific functions such as HR, finance grouped. Jobs differ by skill and responsibility so pay determined accordingly.

194
Q

Pay for progression/maturity curves structure

A

Pay must be progressive where knowledge or experience key to role. E.g. qualified vs unqual accountant.

195
Q

Spot rates for pay structure

A

Allocate rate of pay for specific job, often going market rate.

196
Q

Rate for age structure

A

Rate of pay or pay bracket based on age.

197
Q

Pay spines structure

A

Use by gov org where important for pay to be relative across range of roles. Series of incremental points from lowest to highest paid jobs. pay scales for specific jobs superimposed onto the spine to ensure pay is relative.

198
Q

Manual worker pay structures

A

Diff in status between manual and other roles. Real differentials incorporated to reflect diff in skill and responsibility but otherwise similar to other pay structures.

199
Q

Knowledge contingent pay structure

A

Bonuses or pay rises for attaining knowledge or a qualification

200
Q

Integrated pay structures

A

One grading system for all emp except senior mgmt,.

201
Q

What are total rewards schemes and why have them?

A

Recognise that all ind different and may not all be motivated by money. Non-cash benefits such as childcare, gym membership, flexible working, green policies pursued.

202
Q

What schemes are used to re-establish link between effort and reward? (since reward schemes & pay structures don’t always refer ind perf)

A

Incentive schemes aim to improve perf by linking it to reward.

203
Q

3 ways performance incentives take effect

A
  1. Effort & attention focuses on perf
  2. Enhance commitment & motivation
  3. Achievement rewarded separately from effort (good for recruitment and retention)
204
Q

3 main types of incentive scheme

A
  1. PRP
  2. Bonus schemes
  3. Profit sharing
205
Q

PRP scheme =

A

fixed payment per unit produced or operation completed. Managed by SMART objs.

206
Q

3 aspects of PRP schemes for managerial/salaried jobs

A
  1. Key results specified which merit awards
  2. Clear model for eval perf & knowing if targets met
  3. Exact conditions & amounts of awards made clear
207
Q

PRP schemes for service/other dept roles

A

Bonuses for achievement of key results or point schemes based on criteria e.g. quality, cost, efficiency.

208
Q

Bonus schemes =

A

supplement to basic salary, popular with entrepreneurial types in mkting or sales. Both incentives and rewards.

209
Q

Group incentive schemes=

A

Bonus for a group achieving specified targets. Calculated monthly on improvement in output per man per hour vs standard or value added.

210
Q

Value-added schemes =

A

Improved productivity increase value added so share benefit between employers and employees on an agreed formula. Share balance if rev increases bust costs same / rev same but costs decrease.

211
Q

Profit sharing schemes =

A

employees offered bonuses in form of shares in company - so directly related to profit. Recently, dist % profits above a target replaced by value added concept.

212
Q

What belief is profit sharing based on?

A

That all emp contribute to profit and all contribution should be recognised. Leads to profit consciousness and motivation.

213
Q

6 difficulties w incentive schemes

A
  1. $ not incentive to some people
  2. workers not in complete control of results
  3. greater specialisation = can’t credit specific emp
  4. Undesirable effects e.g. increase output at expense of quality, or lower targets
  5. Manipulation of rules
  6. Poorly designed schemes increase labour costs out of proportion to improved output.
214
Q

What 3 things also undermine incentive schemes?

A
  1. Guaranteed earnings
  2. Changes in methods
  3. Special allowances
215
Q

3 ways finance assist HR ito assembling info

A
  1. payroll function
  2. Collect PAYE info to ensure correct tax paid
  3. Identify KPIs
216
Q

3 ways finance assist HR ito analysing for insight

A
  1. Analyse employee surveys to identify patterns
  2. Analyse competitor salaries & bens to benchmark
  3. Analyse KPIs
217
Q

1 way finance assist HR ito advising to influence

A

communicate key insights from 3 analysing for insight

218
Q

3 ways finance assist HR ito applying for impact

A
  1. Create BCs to support expansion/cut back emp no
  2. Info & reports to support redundancy decisions
  3. Apply lessons learned from KPI insights
219
Q

KPI: emp satisfaction index. What does this KPI depend on?

A

emp score how satisfied with various aspects of their employment and the org. Depends on org priorities.

220
Q

KPI: employee engagement level + depends on

A

multi-item measure of how engaged. Depends on org priorities.

221
Q

KPI: employee churn rate

A

total no leavers over period / average total no employed over period. Measures level of staff retention which can indicate morale or could be normal.

222
Q

KPI: perf review completion factor

A

total no perf reviews completed - total no employees that should’ve received perf review x 100%. Measures participation in appraisal system.

223
Q

KPI: salary competitiveness ratio

A

salary offered by org / salary offered by competitor

or vs average in industry/sector. Issue if falling & non-financial benefits not enough to compensate.

224
Q

KPI: time to hire

A

total time between posting vacancy & starting work. Long times may indicate potential emp prefer to work elsewhere - identify why.

225
Q

3 KPIs to measure motivation

A
  1. Absenteeism
  2. Productivity
  3. Number flexible work arrangements offerred
226
Q

2 KPIs measure rewards

A
  1. Cost per rewards

2. Compliance with laws and regs

227
Q

3 KPIs recruitment and selection

A
  1. Cost per hire
  2. Conversion rate per selection method
  3. gender ratio

CIMA E1 (12 decks)

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