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business a level > Topic 6 HRM miss > Flashcards

Topic 6 HRM miss Flashcards

1
Q

What does HR performance measure (5)

A
  • labour productivity
  • employee costs as a percentage of turnover
  • labour cost per unit
  • labour turnover
  • employee retention rate
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2
Q

What is labour productivity

A

It compares the number of workers with the output of the business

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3
Q

Labour productivity equation

A

Output per time period
_________________________

Number of employees

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4
Q

Labour productivity

In order to remain competitive …

A

A business needs to keep its unit costs down

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5
Q

Key factors that influence the level of labour productivity (6)

  • fixed assets
  • workforce
  • methods of ..
  • training
  • other factors
  • competition
A
  • extent and quality of fixed assets
  • skills, ability and motivation of the workforce
  • methods of production organisation
  • extent to which the workforce is trained and supported
  • external factors
  • degree of competition
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6
Q

Approaches to improve labour productivity (4)

  • measure …
  • invest in ..
  • improve ..
  • training
A
  • measure performance and set targets
  • invest in capital equipment (automation)
  • improve working conditions
  • invest in employee training
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7
Q

Issues when trying to raise labour productivity (3)

  • quality
  • employee resistance
  • higher pay
A
  • quality may suffer-higher output must still be of the right quality
  • potential for employee resistance- depending on the methods used (new technology)
  • employees may demand higher pay for their improved productivity (impacts labour cost per unit)
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8
Q

What is absenteeism/ labour turnover

A

An employee’s intentional or habitual absence from work

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9
Q

Labour turnover formula (employee)

A

Number of staff absent during period

______________________________ X 100

Number employed during period

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10
Q

labour turnover formula (days off)

A

Number days taken off for unauthorised absence (during period)

___________________________ X100

Total days worked by workforce over the period

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11
Q

Employee costs as a percentage of turnover

Formula

A

Employee costs
_________________ X100

Sales turnover

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12
Q

Employee costs as a percentage of turnover

A high figure …

A

Can show the impact of inefficiency e.g. less productive staff, lower sales, higher wage costs as a percentage of sales

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13
Q

Employee costs as a percentage of turnover

However, a high percentage …

A

Could be an indication of mire staff/better service in a service sector organisation

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14
Q

Labour costs per unit

Formula

A

Labour costs
______________

Units of output

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15
Q

Labour costs per unit

If labour cost per unit is higher …

A

Lower profit margins will be made

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16
Q

Labour costs per unit

Lower labour costs per unit …

A

Will allow a firm to be more competitive

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17
Q

Internal causes of labour turnover (3)

A
  • poor recruitment processes (wrong staff selected)
  • ineffective motivation or leadership
  • wage levels lower than other firms
18
Q

External factors of labour turnover (2)

A
  • more local vacancies

- better transport

19
Q

Negative of labour turnover (4)

A
  • cost of recruitment
  • cost of training
  • time taken for new staff to settle
  • loss of productivity while new workers learn
20
Q

Positive of labour turnover (3)

A
  • new workers with ideas and enthusiasm
  • workers bring new skills
  • new ways ti solve problems
21
Q

Employee retention formula

A

Number of employees at the end of period — number of leavers
___________________________ X100

Number of employees at the end of period

22
Q

To assess performance good managers analyse …. (3)

A
  • changes over time
  • comparisons with other firms
  • performance against targets
23
Q

What does hierarchy mean

A

Number of layers within an organisation

24
Q

What is a span of control

A

The number of subordinates for whom a manager is directly responsible

25
Q

What does a suitable span of control depend on: (4)

A
  • experience and personality of manager
  • nature of business
  • skills and attitudes of employees- highly skilled workers may not need close supervision
  • tradition and culture of organisation e.g. democratic leadership will empower workers so a wide span of control
26
Q

3 features of a narrow span of control

A
  • allows for closer supervision of employees
  • more layers in the hierarchy may be required
  • helps more effective communication
27
Q

2 features of a wide span of control

A
  • gives subordinates the chance for more independence

- more appropriate if labour costs are significant-reduce number of managers

28
Q

What is a chain of command

A

The lines of authority within the business

29
Q

Features of a tall structure (5)

A
  • many layers if hierarchy + narrow spans of control
  • allows tighter control (less delegation)
  • more opportunities for promotion
  • takes longer for communication to pass through layers
  • more layers = more staff= higher costs
30
Q

Features of a flat structure (5)

A
  • few layers of hierarchy + wide spans of control
  • less direct control + more delegation
  • fewer opportunities for promotion, but staff given greater responsibility
  • vertical communication
  • fewer layers = less staff = lower costs
31
Q

What is delegation

A

The assignment to others of authority for particular functions, tasks and decisions

32
Q

5 advantages of delegation

A
  • reduces management stress and workload
  • allows senior management to focus on key tasks
  • subordinates are empowered and motivated
  • better decisions or use of resources
  • good method of on-the-job training
33
Q

4 disadvantages of delegation

A
  • cannot/ should not delegate responsibility
  • depends on quality/ experience of subordinates
  • harder in smaller firms
  • may increase workload and stress of subordinates
34
Q

4 benefits of delayering

A
  • lower management costs
  • faster decision making
  • shorter communication paths
  • stimulating employee innovation
35
Q

2 disadvantages of delayering

A
  • wider spans of control

- potential loss of management expertise

36
Q

What is delayering

A

Removing a layer of management

37
Q

What is centralised decision making

A

Keeping decision making at the top of the hierarchy

38
Q

Advantages of centralisation (4)

  • independence
  • coordinate
  • costs and savings
  • decision making
A
  • prevents other parts of the business from becoming too independent
  • easier to co-ordinate and control from the centre
  • economies of scale and overhead savings easier to achieve
  • quicker decision making- easier to show strong leadership
39
Q

Disadvantages of centralisation (3)

  • more layers
  • lack of authority
  • customer service
A
  • more bureaucratic- often extra layers in the hierarchy
  • lack of authority down in the hierarchy may reduce manager motivation
  • customer service does mis ls flexibility and speed of local decision making
40
Q

What is decentralised decision making

A

Decision making is spread out to include more junior managers in the hierarchy, as well as individual business units or training locations

41
Q

Advantages of decentralisation (6)

  • decisions
  • responding
  • improved
  • consistent
  • training
  • motivation
A
  • decisions are made closer to the customer
  • better able to respond to local circumstances
  • improved level of customer service
  • good way of training and developing junior management
  • should improve staff motivation
42
Q

Disadvantages of decentralisation (4)

  • decision making
  • practices
  • economies of scale
  • financial control
A
  • decision making is not necessarily ‘strategic’
  • harder to endure consistent practices and policies at each location
  • may be some diseconomies of scale
  • harder to achieve tight financial control- risk of cost overruns

business a level (13 decks)

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