HR 1 and 2 Flashcards
(22 cards)
What is HRM ?
HRM is the design,implementation and maintenance of strategies to manage people for optimum business performance
What is a HR objective?
HR objectives are the targets pe sued by the HRM function that fit in with the overall corporate objectives of the company
What is the value of HR objectives?
-means of judging the performance of the business
-helps business to achieve corporate objectives
-helps image of the business
-means of improving the performance
What are the 7 main types of HR objective?
-labour productivity
-number and location of the business’s workforce
-employee engagement and involvement
-training
-talent development
-diversity
-alignment of values
What is hard HRM?
Hard HRM treats employees as a resource rather than people so often used financial rewards and suits an autocratic management style
What is soft HRM?
Soft HRM treats employees as the most important resource and employees are treated as individuals so their needs are planned accordingly. Often involves none financial motivation and high payed work.
What is labour productivity?
Labour productivity measures the output or number of units produced per employee in a specific time period
What is the formula for labour productivity?
Labour productivity= total output in the time period/ number of employees
What are ways of improving labour productivity?
-piece rate pay/ financial rewards
-commission
-reduce size of the workforce
-invest in machinery
-effective recruitment and selection
-training
-effective leadership and management
How can you interpret labour productivity?
-it ignores wage rates
-labour cost per unit of output may be better
- can compare against labour productivity of direct rivals
What is unit labour cost?
Unit labour cost is the labour cost per unit of output produced including non-wage costs like national insurance and pension contributions
- used for the manufacturing sector
What is employee cost as a percentage of revenue/ turnover
- measures the performance that supply services- where labour costs are a higher proportion of total costs than in manufacturing
- lower score the better because you keep more revenue
How do you calculate employee cost as a percentage of revenue?
Employee cost as a percentage of revenue = (labour costs/ total revenue) *100
What is labour turnover?
Labour turnover is the percentage of a businesses employees who leave the business in a specific time period- usually a year
What are the pros and cons of labour turnover?
Pros- constant new ideas
-workers with specific skills can be brought in to reduce training
-older employees have less efficiency so bring in new ones
Cons- bad reputation
- high recruitment and selection costs
What is absenteeism?
Absenteeism refers to employees not attending work when they should be there. It is not planned/ authorised as a holiday
How do you calculate absenteeism?
Absenteeism= number of staff absent on one day/ total number of staff *100
number of days taken through absence/total days worked by the workforce over the same period
What are the problems with absenteeism?
- greater work load for less people
-lower productivity - start a trend
-work doesn’t get done
-cost of replacement and sick pay - quality of products or customer service may suffer
How to reduce absenteeism?
-remote working
-find out why they are absent
-inventive
-improve working conditions
-closer management of absenteeism
-introduce attendance bonus
- make sure jobs interesting and challenging
What is a HR plan?
A HR plan assesses the current and future capacity of a businesses workforce and sets out actions necessary to meet the businesses future HR needs
what are the stages of creating a HR plan?
stage1- consider the overall corporate objectives as the HR plan has to contribute towards this
stage 2- take a strategic view of employees
-stage 3- make judgements about the size and type of workforce required
-stage 4- compare the desired future workforce with what you currently have available
-stage 5-decide upon policies needed to convert the existing workforce into the required one- recruitment, training, redundancy, or redeployment
what do you need to create a HR plan?
information on current workforce:
-no of employees you have and their skills
-labour productivity for existing staff
-current and future labour costs, including unit labour costs
-age profile of workforce
-the businesses overall or corporate objectives
information from outside the business:
-expected rate of unemployment for workers with the skills required
-forecast wage rates for potential employees
-expected demand for the products supplied by the business
-likely prices that you’ll be able to obtain
-cost of technology that could be used and how productive it is.
