SAC 2 - Human resource management Flashcards

(77 cards)

1
Q

DOT POINT 1

A
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2
Q

What is human resource management?

A

Human resource management is the organisation of employees roles, pay, and working conditions

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3
Q

The relationship between human
resource management and business
objectives

A
  • Define HRM
  • This could look like a HRM implementing a strategy such as TRAINING employees; improving skill and experience will increase employee morale and therefore job satisfaction. With an increase of job satisfaction, employees are motivated to work harder which allows a business to produce goods and services at a faster pace, fulfilling the bus obj of improving efficiency.
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4
Q

DOT POINT 2

A
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5
Q

What is motivation

A

Motivation is the need or desire that directs, energises and sustains a person’s behaviour

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6
Q

Key principles of the following theories of motivation

A
  • Hierarchy of needs theory (Maslow)
  • Goal setting theory (Locke and Latham)
  • Four Drive Theory (Lawrence and Nohria)
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7
Q

Maslow’s Hierarchy of needs theory

A

Suggests people are motivated by five fundamental needs which they strive to fulfil in an sequential order; where once they satisfy the first need it no longer serves to motivate and the next ranked need becomes the source of motivation. The needs are…

  • Physiological
  • Safety
  • Social
  • Esteem
  • Self-actualisation
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8
Q

Physiological needs

A

Basic needs such as rest, food, water and warmth
- Workplace/Management satisfies these needs through: satisfactory pay for survival
- (Basic outside of work needs are satisfied = motivated to come to work)
- E.g Qantas provide rest breaks for flight crews to ensure wellbeing during LONG flights

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9
Q

Safety needs

A

The need for safety, shelter and security
- Workplace satisfies these needs through : Safe working conditions and job security through OH&S policies (Occupational health + safety)
- (increasing stability = more motivated to come to work)
- E.g Qantas applies workplace safety through strict adherence to aviation safety regulations

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10
Q

Social needs

A

The need for love, belonging, intimate relationships and friends
- Workplace satisfies these needs through : Teamwork, involvement in decision-making and supportive management
- (building closer r/s = morale)
- E.g Qantas has established support networks such as mentorship programs

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11
Q

Esteem needs

A

The need for self-esteem, power, control and recognition
- Workplace satisfies these needs through : (RRP) Recognition, Responsibility and Promotion
- (feeling valued)
- E.g Qantas uses recognition programs to reward outstanding employees such as their internal awards

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12
Q

Self-actualisation needs

A

The need for development, creativity and growth
- Workplace satisfies these needs through : Employee involvement in decision-making, Creative + interesting jobs and opportunities for advancement
- (achieving one’s full potential)
- E.g Qantas have professional development opportunities including leadership training and international career opportunities

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13
Q

Strengths of Maslow’s theory

A
  • Allows management to develop an understanding of individual needs - all employees are different and they all have specific needs
  • Allows management to be aware that employees will be at different stages of development and that they will need to be motivated using a variety of methods
  • The theory is easy to understand - most managers should be able to make use of the Hierarchy of Needs and employees should be able to relate to it
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14
Q

Weaknesses of Maslow’s theory

A
  • Assumes all employees are motivated in the same order = lack of personalisation
  • A manager making use of the theory may struggle to identify what stage each individual employee is at - this can make it difficult to determine an appropriate strategy to motivate each employee
  • May be time consuming for a manager to determine the level of each employee, and may be time consuming to implement different strategies
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15
Q

Locke and Latham’s Goal Setting Theory

A

Focuses on the process of setting and attaining goals that incorporate 5 principles which improve​s employee​ ​performance ​+​ ​hence​ ​​overall success​ ​of​​ ​business. The principles are…

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16
Q

Five principles of goal setting

A
  • Clarity
  • Challenge
  • Commitment
  • Task complexity
  • Feedback
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17
Q

Clarity

A

Measurable goals should be clear, specific and measurable, that have no AMBIGUITY and employees know what’s expected of them; specific goals improve motivation
- In addition, goals should be developed in a time frame, so there is a clear end date for the goal to be achieved
- E.g Qantas have sustainability goals that clearly outline the objective of the commitment to net-zero carbon emissions by 2050 and reducing emissions by 25% by 2030

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18
Q

Challenge

A

Goals should be difficult to increase motivation which leads to higher determination, as employees have to work hard to achieve them. This allows for skill development + aligns with business objectives
- Well-thought out goals give employees drive and a sense of satisfaction that they are getting the best out of themselves
- E.g Qantas have developed a sustainability innovation that involves investing in alternative fuels to cut carbon emissions. challenge as environmentally-conscious = expensive

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19
Q

Commitment

A

Employees should be involved in setting their goal; the greater the input from the employee, the more likely they will commit
- A good goal can be set collaboratively which ensures that management can help align the goal with business objectives, yet the employee is likely to take more ownership of the goal and become more committed.
- E.g Qantas allows regular updates from Qantas executives to align with the company’s long-term goals

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20
Q

Task complexity

A

Finding a balance between a goal being complex to motivate yet should not overwhelm employees and therefore demotivate them
- They should ultimately be achievable and straight forward enough that employees feel they can fulfil them. Employees should receive adequate TRAINING (possibly through a mentor) and TIME to achieve their goals
- E.g Qantas provide pilots, cabin crew, and ground employees with continuous training on safety, customer service, and sustainability practises to ensure they have the necessary resources and support to meet the challenging goals

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21
Q

Feedback

A

Managers should provide ongoing, regular and supportive feedback (can be formal or informal)
- Feedback provides opportunities to offer recognition for progress achieved, to make adjustments, and to ensure expectations are clear and that employees are on track
- E.g Qantas apply customer satisfaction metrics, meaning they collect passenger feedback to improve services

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22
Q

Strengths of Locke and Lathams Goal setting theory

A
  • Setting clear, specific and challenging but not overwhelming goals, will motivate employees and improve their peformance, therefore contributing to the achievement of business objectives
  • Employees may be more motivated to complete tasks if work goals align with their personal interests/goals
  • Better relationships between management and employees may occur as managers work with each employee to collaboratively set goals and provide feedback
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23
Q

Weaknesses of Locke and Lathams Goal setting theory

A
  • Setting too many goals or goals that are too vague can lead to poor peformance or stress employees - can become demotivating
  • Employees may focus too intently on their goals that they ignore other aspects of their job
  • Failing to meet a goal could be detrimental to an employee’s confidence
  • Setting goals and providing feedback to each employee can be time consuming for management
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24
Q

Lawrence and Nohria Four Drive theory

A

The four drive theory is a motivation theory that suggests that employees strive to fulfil four fundamental needs. The needs are…

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25
Lawrence and Nohria Four Drives
The drive to ABLD - Acquire - Bond - Learn - Defend
26
The drive to acquire
Employee has the desire to own material goods, as well as status, power and influence - E.g bonuses for reaching performance goals, raise in wage, increase in responsibilities etc
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How can acquire be applied?
- By rewarding/remunerating employees that contribute to business objectives - Providing opportunities for employees to feel proud of the work they do, and to feel they can distinguish themselves through their work - E.g Qantas hold recognition programs that publicly reward outstanding employees through internal awards and incentive-based promotions
28
The drive to bond
Is the desire to participate in social interactions and feel a sense of belonging within the workplace (increase morale) - E.g celebrating employee birthdays, holding social events such as morning teas and allocating work projects in teams rather than individuals
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How can bond be applied?
- Managers can motivate employees and fulfil the drive to bond by developing an inclusive environment and encouraging employees to work with each other - Mangers will be people orientated = seek to interact with all employees in a positive manner - Develop positive real corporate culture and to recognise achievements or milestones outside of the workplace, such as birthdays or years of service - E.g Qantas hold company events and encourage team building. This includes leadership retreats.
30
The drive to learn
Is the employees innate desire to gain knowledge, skills and experience - E.g internal or external TRAINING or courses, pairing junior employees with a senior mentor, sponsoring employees to pursue further qualifications such as a university degree
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How can learn be applied?
- Managers can motivate employees and fulfil the drive to learn by implementing PROGRAMS that educate and up skill them - Management actively supports employees in gaining new skills and qualifications (TAFE) - Opportunities to learn new skills and experiences are provided on an ongoing basis by managers ensuring that jobs are rotated - E.g Qantas provide professional development. This involves Qantas investing in technical training and pilot development programs.
32
The drive to defend
Is the desire to protect personal security (job security) as well as the values of a business (attacks from competitors) - Motivation comes from removing fears and insecurities from the workplace - E.g providing support for employees when required, being open and honest with employees, having grieving procedures in place
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How can defend be applied?
- The workplace is welcoming and supportive, and intimidation is not used as a management technique - Systems and processes for determining rewards and recognition are fair, so that no-one feels that any employee is being favourited or that they have been discriminated against - E.g Qantas provide job security and stability; they provide stable career opportunities for employees.
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Remember - Drive to defend
- The drive is more dormant - it does not need to be satisfied unless the employee feels threatened in some way.
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Strengths of 4 drive theory
- It can provide managers with a SIMPLE framework to motivate their employees - The drives work INDEPENDENTLY, allowing management and employees to be flexible in the behaviours or strategies selected - Four Drive theory is very ADAPTABLE to complicated environments or situations - If all four drives are met, employee SATISFACTION is likely to significantly increase
36
Weaknesses of 4 drive theory
- May be difficult for a manager to manage all four drives at the same time - Some of the drives involve competition between employees, which can have detrimental effects; for example, a workplace may suffer from a lack of cooperation or information sharing - May be time consuming for a manager to determine the suitable drives for individual employees - If drives are left unmet, employees may lose satisfaction
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Similarities between Maslow's & Lawrence and Nohria's
- Both are concerned with the physical, social and emotional needs of employees - Both suggest that different employees will value different motivators
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Differences between Maslow's & Lawrence and Nohria's
- Maslow's hierarchy of needs must be met in sequential order, whereas four drive theory suggests any drive may be relevant to an employee in no particular order - Maslow's hierarchy of needs focuses on fulfilling one need at a time, whereas the four drive theory states that employees behaviour can be driven by all drives at one time
39
Similarities between Maslow's & Locke and Latham's
- Both recognise that PERSONAL GAIN is a factor which can motivate employees. ESTEEM can be satisfied by providing jobs with a higher status to employees. Goals which fulfil the COMMITMENT principle consider the personal objectives of employees - Both recognise that feedback from management is important. ESTEEM can be satisfied by recognising employee efforts. Goals which fulfil the FEEDBACK principle requires management to acknowledge the efforts of employees in reaching their goal
40
Differences between Maslow's and Locke and Latham's
- Maslow's hierarchy of needs focuses on fulfilling one need at a time, whereas the goal setting theory requires all principles to be incorporated for a goal to be motivating - Maslow's hierarchy of needs CAN be applied by a manager alone, whereas the goal setting theory requires employee input
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Similarities between Lawrence and Nohria's & Locke and Latham's
- Both recognise that employees are motivated to achieve success. This can be the drive to acquire a higher position, or setting the goal of being promoted - Both suggest that multiple factors motivate an employee at any given time. All drives may be active whilst set business goals should incorporate multiple principles
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Differences between Lawrence and Nohria's & Locke and Latham's
- The four drive theory IS applied by a manager alone, whereas the goal setting theory involves employee input - The goal setting theory requires a manager to individually address each employee, whereas this is not necessary when applying the four drive theory
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DOT POINT 3
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Motivation strategies (5)
- Performance related pay (PRP) - Career advancement - Investment in training - Support strategies - Sanction strategies
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Performance related pay
is a FINANCIAL REWARD for reaching or exceeding a set business goal - Employees are motivated by PRP as it links their performance to increased remuneration. This generally leads to employees feeling they can personally gain from putting more effort into their work - E.g Qantas offered a 5,000 bonus in 2022 to around 19,000 workers as recognition of their contributions during difficult times during COVID-19.
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Performance related pay examples
- Bonuses (one-off) - Commissions (an amount paid for accomplishing a sale) - Pay rise (permanent)
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Career advancement
Is the upwards progression of an employee's job position. - A strategy to motivate employees as the employee becomes driven to further their career and take on this greater responsibility - E.g Qantas has focused on internal promotions and leadership development to encourage employee retention.
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Career advancement examples
- Managers should ensure employees are provided with ongoing TRAINING and DEVELOPMENT
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Investment in training
Is allocating resources to improve employee's skills and knowledge. - This strategy equips employees with the expertise needed to perform at a higher level. Increase of performance leads to increased confidence = morale = increased achievement of business objectives - It motivates employees by providing them with opportunities to learn and develop their abilities and skills through their work. - E.g Qantas significantly invested in training programs, particularly for pilots, cabin crew and engineers to address employee shortages and service quality. This included up skilling employees in customer service to restore Qantas' reputation.
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Investment in training examples
- Provide employees with mentoring - Training programs within the business - Paying for employees to be trained by other professionals OUTSIDE of the business
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Support
Is providing employees with any assistance that helps them cope with difficulties that may impede their work performance - Provide support services that can help employees work through adversities - E.g Qantas has introduced wellbeing programs and mental health initiatives such as Employee Assistance programs (EAPs) to support employees facing stress and burnout.
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Support examples
- Praising good performance - Checking on health and wellbeing - Employee Assistance Program (EAP) for counselling - Mentoring programs - Accomodate personal obligations - Parents in workplace (childcare services next to office)
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Sanction
Is penalising an employee for poor performance or breaching business policies - Employees are motivated by sanctions as they fear punishment from management. When a sanction is utilised, employees are more likely to abide by the business policies, minimise errors and put effort into their work - HOWEVER, sanctions can be a risky strategy as some employees may resent this and react against them. It can cause conflict within the business and harm relationships between the manager and employees - E.g Qantas has enforced strict policies to ensure workplace discipline. This includes addressing misconduct and absenteeism to improve operational efficiency.
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Sanction examples
- Verbal warnings - Written warnings - Pay cuts - Demotions, or even termination
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DOT POINT 4
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Performance related pay advantages
- Provides a direct FINANCIAL reward to employees. (e.g...) This motivates employees to improve performance as by doing this = increase remuneration - Should improve productivity levels, consequently improving levels of engagement and commitment to the business - Targets typically clear so employees know what they need to achieve = no complexity
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Performance related pay disadvantages
- Other employees doing similar work may expect similar rewards, even if their performance is not as good, leading to jealousies, conflict and lower morale - A business may not be able to afford PRP - If the value of the rewards is not maintained or increased each year, it may lead to employee dissatisfaction - Not all employees will be motivated by pay
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Career advancement advantages
- Can be used to reward past performances and provides the opportunity to increase the contribution of employees to the business in the future - The promoted employee is likely to feel that they can contribute more to the business, improving productivity, levels of engagement and commitment to the business - Will satisfy employees who desire a sense of achievement or extra responsibility
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Career advancement disadvantages
- Promotion positions cannot just be created - they have to have some purpose (making them stay) - Employees may have to compete for a LIMITED NUMBER of promotion positions, creating some rivalries and conflict + resentment if not given position - Employees may be promoted beyond their capacity
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Investment in training advantages
- Indicates to employees that the business values their contribution, and that the business will support them in advancing their careers - Benefits the business by improving the skills of employees so that they feel more confident and perform more productively - May improve employee retention (holding onto employees) as employee loyalty and motivation are improved
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Investment in training disadvantages
- Unless there are sufficient jobs within the business requiring higher level of skills, training may be wasted - A business may be unable to afford the costs of training - Risk: The business may pay the cost of training only to have an employee leave for a position in another business
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Support advantages
- Many forms of support, such as encouragement, can be provided with little to no cost - Services such as counselling and mentoring should help employees to develop meaningful professional relationships - Support and encouragement can positively influence employees attitudes and help them to improve in confidence, improving motivation
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Support disadvantages
- Time-consuming potentially expensive - Employees may become too dependent on the SUPPORT service provided (whether it be counselling or mentoring) or on the person offering these services - Requires a business to have a positive corporate culture and manager must have good interpersonal and communication skills
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Sanction advantages
- Sanctions for POOR BEHAVIOUR in the workplace can motivate some employees to improve their work performance - May quickly stop INAPPROPRIATE BEHAVIOUR of some employees
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Sanction disadvantages
- Excessive emphasis on sanctions can reduce employee sense of belonging, and therefore have a negative impact on motivation - May cause resentment in employees, which may result in conflict between management and employees - Tends to act as only a short-term motivator
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Motivation strategies effect on SHORT-TERM employee motivation
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PRP effect on SHORT term
Positive - Employees can be motivated to IMMEDIATELY improve performance to receive DIRECT financial rewards Negative - Employees may be demotivated if they CONSTANTLY compete with others to achieve financial rewards
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Career advancement effect on SHORT term
Positive - Employees can be quickly motivated to take on more responsibility in the workplace Negative - ?
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Investment in training effect on SHORT term
Positive - Employees can be quickly motivated by an opportunity to up skill Negative - Employees may be demotivated by the inconvenience of training programs
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Support effect on SHORT term
Positive - Employees can recognise that they are supported at work meaning a boost in motivation Negative - Employee may miss out on work time if they are receiving counselling during work hours.
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Sanction effect on SHORT term
Positive - Employees may be quickly motivated to avoid penalties and punishment due to fear Negative - Some employees may resign immediately when faced with a penalty or punishment
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Motivation strategies effect on LONG-TERM employee motivation
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PRP effect on LONG term
Positive - ? Negative - Employees may be demotivated if the reward does not continuously increase, as it may not seem as valuable
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Career advancement effect on LONG term
Positive - Employees may be motivated by ongoing opportunities to be promoted Negative - ?
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Investment in training effect on LONG term
Positive - Employees may feel consistently motivated by a positive working environment which promotes learning Negative - Employees may be demotivated by the consistent interruptions caused by training programs
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Support effect on LONG term
Positive - Employees will be more likely to remain at the business as they feel valued by management Negative - ?
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Sanction effect on LONG term
Positive - ? Negative - Employees may be demotivated due to a negative working environment