Decision making to improve Human resource performance 3.6 Flashcards

1
Q

What is Human Resource Management (HRM)

A

The strategic approach to the effective management of people in a business or organisation so that they help the business gain a competitive advantage at a minimum cost

It is Important because it ensures the business hires employees with the right skills, experience, and attitude, boosting efficiency and productivity. It helps build company culture, promoting teamwork and job satisfaction. Additionally, good HRM practices lead to less staff turnover thereby reducing hiring costs. Businesses keep staff motivated by offering rewards.

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2
Q

What is HR objective

A

Specific goals set by the human resource department that supports the overall aims of the business. It involves activities such as recruitment, training, employee motivation, performance management, achieving workforce diversity

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3
Q

Examples of HR Objectives

A

Employee engagement
Talent development
Diversity and inclusion
Maintaining employee relations
Maximising employee skills

ALL WHILE BEING COST EFFICIENT

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4
Q

Internal Influences on HR Objectives

A

Corporate objectives - E.G If a business chooses to grow HR will recruit more staff or improve training

Organisational structure - The size of the business and the structure, whether it’s tall or flat, affects how HR sets objectives related to communications and delegation regarding employee roles

Leadership style - Democratic leadership may influence HR to focus on employee involvement while an autocratic style may lead to stricter performance controls

Financial resources - Amount of money impacts the HR decisions. Limited budgets may lead to HR to focus on more cost-efficient training or reducing staff turnover rather than expanding the workforce

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5
Q

External Influences on HR Objectives

A

Market changes - Changes in demand, competition, or consumer preferences may lead to HR to adjust recruitment or training objectives

Technological change - Advances in technology may require new skills, so HR might focus on retaining existing staff or hiring staff experienced using tech

Political and legal changes - E.g. EU legislation on areas such as maximum working time and other employment rights impacts directly on workforce planning and remuneration

Social and ethical expectations - increased focus on work-life balance, diversity and fair treatment

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6
Q

Hard HRM vs Soft HRM

A

Hard HRM is a management approach that treats employees as a resource and a cost to the business to be used efficiently and focusing on short-term workforce planning, much like machinery or raw materials it involves short term contracts, centralised decision-making and high levels of control and supervision

Soft HRM is an approach that treats employees as valuable assets and focuses on their development, motivation and long-term contribution to the business. It involves employee involvement in decision-making, training and development, strong internal communications and long-term workforce planning

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7
Q

How is HR Performance measured

A

Labour turnover
Employee/staff retention
Labour productivity
Absenteeism

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8
Q

Labour Turnover Definition

A

Labour turnover is the percentage of employees who leave a business over a given period of time, usually a year

CAUSES FOR LABOUR TURNOVER:
1) Low pay and benefits - employees feel underpaid or receive lack of incentives

2) Job insecurity - Fear of redundancy

3) Personal reasons - Relocation, family commitments, maternity leave, health issues

4) Poor management - Lack of support can lead to dissatisfaction and resignation

PRO: Brings in new ideas and skills, removes underperforming staff, opportunity to reduce costs , motivates remaining staff with opportunities for promotion

CON: Increased recruitment training, loss of experience and skills, lower productivity, negative impact on morale, impacts on consistency and quality of service

WAYS TO IMPROVE LABOUR TURNOVER: Regularly gather feedback, Enhance work-life balance, Reward Employees, Promote Job security

LABOUR TURNOVER FORMULA:
No. of employees leaving/ Average No. of employees X 100

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9
Q

Employee Retention

A

Refers to a business’s ability to keep its employees and reduce staff turnover over a period of time

CAUSES FOR EMPLOYEE RTENTION:
1) Job satisfaction
2) Opportunities for career progression
3) Positive work environment
4) Recognition and reward, job security

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10
Q

Labour Productivity

A

Measure of output per worker over a given period of time

FACTORS INFLUENCING LABOUR PRODUCTIVITY:
Training and skills, motivation levels, technology and equipment, working conditions, management style, work process and organization, employee engagement

FORMULA FOR LABOUR PRODUCTIVITY:
Total Output / Number of Employees

WAYS TO IMPROVE LABOUR PRODUCTIVITY:
1) Improve employee motivation - Use financial and nonfinancial incentives E.G. bonuses, recognition, flexible working to boost efforts and commitments

2) Improve working conditions

3) Streamline processes - eliminating waste and improving workflow can reduce delays and increase output

4) Invest in better technology - modern tools and automation can speed up production and reduce human error

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11
Q

Absenteeism

A

Rate at which employees are absent from work without valid reasons over given period of time

Absenteeism Formula - No. of days lost to absence / Total possible working days X 100

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12
Q

Recruitment

A

Recruitment is the process of identifying attracting, and selecting suitable candidates to fill job vacancies within a business

It is Important because it ensures the right people are hired, fills skill gaps, supports business growth, improves competitiveness, reduces employee turnover, maintains business operations

PRO: -
1) Cost savings - lower wages and benefits costs compared to full-time staff

2) Improved work-life balance - can boost employee morale

3) motivation and retention

4) Greater flexibility - helps the business respond to demand changes. Wider talent pool

CON:
Reduced availability
Lower commitment,
Training costs

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13
Q

Internal Recruitment PRO and CON

A

PRO:
Faster and cheaper process
Candidate already known
Shorter induction/training
Boosts staff morale

CON:
Limited pool of applicants
Creates another vacancy
Cause tension and jealousy
Lack of innovation

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14
Q

External Recruitment PRO and CON

A

PRO:
Wider talent pool
New skills and perspectives
Helps drive change

CON:
Higher costs
Longer process
Unfamiliar with company culture
May demotivate internal staff

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15
Q

Training PRO and CON

A

PRO:
Increases productivity
Boosts motivation
Supports career progression
Improves adaptability

CON:
High costs
Risk of staff leaving
Other staff may feel demotivated

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16
Q

Induction Programme

A

Process of introducing a new employee to the business, their role, colleagues, and working environment

17
Q

On-The-Job Training

A

Method where employees learn by doing their job while being supervised or coached in the workplace

PRO: Relevant and practical, minimises disruption, allows for management to analyse efficiency of training

CON: Lack of formal structure, distractions in the workplace, risk of inconsistent standards

18
Q

Off-The-Job Training

A

Method where employees receive training away from their usual work environment

PRO: Opportunity to gain fresh ideas

CON: More expensive, time taken away from work, no immediate application if newly learnt skills

19
Q

Redeployment

A

Process of transferring an employee from one role or department to another within the same organisation, often due to changes in business needs

PRO: Avoids redundancies, maximising existing talent, cost efficient, retains internal knowledge

CON: Increased training costs, potential for discontent, disruption to business’s operations

20
Q

Redundancy

A

Occurs when an employee’s role is no longer needed by the business, often due to the factors like technological advancements, company restructuring, or a decline in business activity, leading to the termination of their employment

PRO: Cost savings for the business due to reduced labour costs, opportunity for reconstructing assigning resources to areas with higher demands or growth potential, avoids legal action

CON: Negative impact on morale, loss of skills and experience, reputational damage

21
Q

Organisational Structure

A

The way in which a business is arranged to carry out its activities, including how roles, responsibilities, and authority are disturbed within the company
It includes elements such as hierarchy, span of control, chain of command, delegation and centralisation vs decentralisation

FACTORS INFLUENCING ORGANISATIONAL STRUCTURE: Size of the business, type of business, management and leadership style, the competitive environment

22
Q

Span of Control (Wide Span vs Narrow Span)

A

Refers to the number of employees directly managed by one supervisor or manager

A wide span of control means a manager oversees many employees, while a narrow span of control means they supervise fewer. It affects communication, workload, and how closely employees are motivated

SPAN OF CONTROL DEPENDS ON:
Complexity of tasks - the more complex they are the more supervision is required

How skilled and independent the employees are

Use of technology

Managers experience and skills

23
Q

Chains of Command

A

Level of hierarchy referring to a specific layer within an organisational structure, where individuals have a certain level of responsibility and authority. Higher levels have more authority and control whereas lower levels follow instructions from above

24
Q

Hierarchy (Tall vs Flat Structure)

A

Arrangement of individuals within an organisation according to their level of authority and responsibility

Tall structure - Many levels of hierarchy, narrow span of control, long chain of command, more opportunity for promotion, communication can be slower, closer supervision and tighter control

Flat structure - Few levels of hierarchy, wide span of control, short chain of control, faster communication, employees have more responsibilities and autonomy, can lead to overworked managers

25
Delayering
The process of removing one or more levels of hierarchy from an organisational structure to create a flatter structure PRO: Improves communication which speeds up decision making, low labour coast due to reduced salary CON: Increase in workload, reduced promotion opportunities, job insecurity, loss of experience
26
Delegation
The process of assigning authority and responsibility to another person to carry out specific tasks or decisions PRO: Frees up manager’s time for strategic tasks, develops employees; skills and confidence, improves efficiency and motivation CON: If poorly done then it can lead to confusion and mistakes, managers may be reluctant to delegate tasks to employees who may be less experienced
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Employee Empowerment
Giving employees more responsibility, authority and autonomy to make decisions about their work which leads them to feel like a valued member apart of the business
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Centralised vs Decentralised Decision Making
CENTRALISED DEFINITION: Decision making authority is concentrated at the top levels of management such as senior leaders or head office CENTRALISED PRO: Cost efficient as it reduces duplication of roles and resources, tighter control which helps ensure policies and standards are followed, strong leadership allows for easier implementation of strategic decisions CENTRALISED CON: Slower decision making, decisions may not suit all areas and may be less responsive to local needs, lower employee motivation, overloaded work for managers can lead to inefficiency DECENTRALISED DEFINITION: Type of organisational structure where decision making authority is delegated to lower levels of the hierarchy, such as regional managers or department heads DECENTRALISED PRO: Faster decision making, empowers employees by boosting motivation and job satisfaction, more responsive to local needs, reduces pressure on management DECENTRALISED CON: Inconsistent decisions, lack of consideration can lead to confusion or duplicated efforts, higher training costs for staff to make good decisions, harder to maintain control as there are a risk of poor decisions by less experienced staff
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Types of Organisational Structure
Functional Organizational structure - Organisational structure where the business is divided into departments based on function such as marketing, finance, operations, and human resources. Each department focuses on its own area of expertise Product based organizational structure - Organisational structure where the business is divided into separate units based on different products or product lines. Each product division operates on its own business, with its own departments such as marketing, finance and operations focused on that specific product E.G. Apple has separate divisions for iPhones, MacBooks, and iPads Regional based organisational structure - Organisational structure where operations are divided based on geographical areas or regions. Decisions are tailored to local markets and customer needs E.G Global retail company like Mcdonald’s may have different regional divisions for the UK, USA, and Asia, each with its own marketing and operations team Matrix organisational structure - Organisational structure where employees report to more than one manager, typically both a functional manager and a project or product manager aiming to improve communication and flexibility across departments
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Job Enrichment and Job Enlargement
Job Enrichment - Motivational strategy that involves giving employees more meaningful, challenging, and complex tasks to increase job satisfaction and personal growth. It focuses on the quality of work and giving more responsibility and autonomy Job enlargement - Motivational method that involves increasing the number of tasks an employee performs, often at the same level of responsibility, to reduce boredom. It focuses on the quality of tasks
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Theories and Theorists
Frederick W. Taylor’s theory of motivation - He believed workers are mainly motivated by money e.g. piece-rate pay and that productivity could be improved through scientific analysis and standardization of work tasks Abraham Maslow’s theory of motivation - His theory suggests that human needs are arranged in a hierarchy, and people are motivated to satisfy the lower levels before moving on to higher-level needs E.G. Physiological needs, Safety needs, Social needs, Esteem needs, Self-actualisation Frederick Herzberg theory of motivation - His theory argues that there are two sets of factors that affect motivation at work: Motivators - which leads to job satisfaction and Hygiene - Prevents dissatisfaction Hygiene factors include pay and working conditions, job security, company policies, relationships at work Elton Mayo theory of motivation - He believed workers are motivated more by social needs, communication, and feeling valued than by money alone E.G. Involves allowing workers to contribute in decision making to improve morale and teamwork increases motivation
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Motivation Definition
The internal and external factors that stimulate people to take actions that lead to achieving a goal
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Financial vs Non-Financial Incentives
Financial Incentives - Monetary rewards used to motivate employees to improve performance, productivity, or achieving specific targets E.G. Fringe benefits, wages and salaries, bonus pay, profit sharing, performance related pay, commission Non Financial Incentives - Methods of motivating employees without offering direct monetary rewards, focusing instead on job satisfaction, recognition, and personal development E.G. team working, job enrichment and job enlargement
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Trade Union
An organisation formed by workers to protect their interests and improve working conditions, pay, and rights through collective bargaining with employers Purpose - Represents members in negotiations, provides legal support and advice, campaign for better working conditions, support during disputes or industrial actions Two functions in a trade union (Represent and Negotiate) - Trade unions negotiate with employers (collective bargaining) to secure better pay, working conditions, hours, benefits, and workplace policies on behalf of their members Trade unions represent individual members during disputes, disciplinary hearings, or grievance, ensuring their rights are protected and their voices aren't heard
35
Employee Representation
Refers to the involvement of employees in the decision making process of a business, often through elected individuals or groups such as trade unions, work councils, or staff forums PRO: Reduces conflicts, encourages cooperation, improves communications, boost morale CON: May create unrealistic expectations, potential for conflicts, slower decision making process
36
Industrial Actions
Refers to steps taken by employees or trade unions to protest against working conditions, pay or other disputes with employers E.G. Work-to-rule, Strike, Overtime ban, Sit-in This builds pressure amongst managers within business
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Work Councils
Group made by employee and employer representatives who meet regularly to discuss workplace issues
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Mediation, Conciliation and Arbitration
Mediation - Process in which a neutral third party helps resolve a dispute between two parties, such as employers and employees, by facilitating discussion and guiding them toward a mutually acceptable solution Non-Binding - Up to both parties to agree to it Conciliation - Process by which a neutral third party helps two disputing parties reach a settlement, Proposing solutions or compromises Non-Binding - It is up to both parties to agree Arbitration - Formal dispute resolution process where a neutral third party listens to both sides of the dispute and makes a binding decision to resolve the issue Binding decision - Decisions made must be followed by both parties
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REMEMBER TO CHECK
Labour turnover calculations Labour Productivity calculations Absenteeism Calculations