Unit 2: Human Resource Management

Question 1

Human Resource Management

Answer 1

Includes recruitment and retention, setting compensation and benefits, and specifying job responsibilities

Question 2

Demographic Change

Answer 2

Shifts in demographic factors, such as birth rates, death rates, education levels, etc.

Question 3

Labour Mobility

Answer 3

The ability of workers to move occupationally or geographically
How easily workers can change their place or type of work

Question 4

Immigration

Answer 4

International movement of people into countries where they are not citizens
Specifically seek permanent residency in the new country

Question 5

Flexi-Time

Answer 5

Flexible work schedule that allows workers to adjust the start and finishing times of their workday
Gives flexibility to meet other requirements, such as child care

Question 6

Gig Economy

Answer 6

An economy where many positions are temporary
Organisations hire independent workers for short-term commitments

Question 7

Hierarchy

Answer 7

A system organising or ranking people according to power or importance

Question 7

Organisational Chart

Answer 7

Depicts the reporting relationships within an organisation
Shows who reports to whom down to the least senior level of employees in the organisation

Question 7

Chain of Command

Answer 7

The official hierarchy in an organisation
Indicates who reports to which manager and which manager has authority over specific employees

Question 8

Span of Control

Answer 8

The number of people reporting to a specific manager
Wide span of control mans many people reporting to the manager
Narrow span of control means a small number of people reporting to the manager

Question 9

Delegation

Answer 9

Assigning authority or responsibility to someone lower on the organisational chart
Manager remains accountable for the successful completion of the delegated tasks

Question 10

Bureaucracy

Answer 10

Refers to an organisation with multiple levels of authority
Bureaucracies often have complex approval processes, slowing down decision-making

Question 11

Centralisation

Answer 11

When personnel at the main or central office of the business have the authority for decision-making
Entire business implements it
Centralisation can occur when senior management retains all key decision-making functions for themselves and delegate little or no decision-making authority to others

Question 12

Decentralisation

Answer 12

Decision-making authority is delegated out to offices from the main or central office
Managers in regional offices have authority for making tactical and operational decisions

Question 13

Delayering

Answer 13

The process of removing levels of hierarchy in an organisation
Aim is usually to improve a business’ efficiency by making it less bureaucratic

Question 14

Matrix Structure

Answer 14

Typically exists in contexts where projects and project completion require involvement from people with different expertise from different areas of the organisation
People who work in teams and report to managers with different expertise
May need to report to more than one person when doing their job

Question 15

Project-Based Organisation (HL)

Answer 15

Similarly to a matrix structure, organises work into projects
Create temporary systems for carrying out different projects

Question 16

Shamrock Organisation (HL)

Answer 16

Based on the work of Charles Handy, modelled on a shamrock (3-leaf-clover)
Organisational structure with 3 types of employees:
Full-time professional core
Flexible labour force
Contractual group

Question 17

Management

Answer 17

Ongoing process of planning, organising, commanding, coordinating and controlling the input resources of an organisation
Aim of efficiently and effectively reaching the business’ goals

Question 18

Leadership

Answer 18

Process of motivating a group or team of people to work towards the goals of a business
“Art” instead of a science
Intangible ability to inspire, lead, coerce or charm through charisma or other intellectual qualities

Question 19

Autocratic Leadership

Answer 19

When the leader concentrates all or most decision-making in their own hands
Autocratic leaders typically do not seek input from others

Question 20

Paternalistic Leadership

Answer 20

When the head of an organisation treats employees like they are part of their family
Typically warm and protective of employees, but also expects loyalty and obedience

Question 21

Democratic Leadership

Answer 21

When the leader regularly seeks input from employees and involves them in decision-making

Question 22

Intrinsic Motivation

Answer 22

Motivation which comes from the satisfaction of carrying out a particular activity
No external reward is required

Question 23

Laissez-Faire Leadership

Answer 23

When the leader of an organisation gives employees considerable freedom to make decisions on their own

Question 24

Situational Leadership

Answer 24

When leaders adapt their leadership style to the nature of the situation, task or work; and the ability and expectations of the people in the organisation

Question 25

Extrinsic Motivation

Answer 25

Motivation which is derived from external factors In a business context, typically money

Question 26

Internal Recruitment (HL)

Answer 26

When a position becomes available at an organisation and the organisation recruits someone who is already working there

Question 26

Labour Turnover (HL)

Answer 26

The percentage of employees who leave a company during a fixed period of time Calculated by the ration of the number of an organisation’s employees who leave to the tidal number of employees during that period

Question 27

Induction

Answer 27

Training that focuses on making a new employee familiar with the way the business functions and the lines of authority Process includes welcoming new employees and providing training about company procedures and expectations

Question 27

External Recruitment (HL)

Answer 27

When an organisation recruits employees who are not presently employed at the business

Question 28

Formative Appraisal (HL)

Answer 28

Occurs during training or work of employees It is ongoing, continuous and intended to improve employee performance

Question 29

On-the-Job Training

Answer 29

Involves training employees at tier place of employment during normal working hours Usually proceeds through mentoring or shadowing

Question 30

Off-the-Job Training

Answer 30

Involves employees receiving training offsite The company typically pays for the tuition, which is usually provided by outside parties

Question 31

Summative Appraisal (HL)

Answer 31

Occurs at the end of the training or a fixed time during a year Formal, documented evaluation of employees; intended to measure their performance

Question 32

360-Degree Feedback (HL)

Answer 32

Occurs when an employee receives input from peers, customers, their supervisor, and others with whom the employee interacts Comprehensive and expensive, thus often only provided to senior management

Question 33

Self-Appraisal (HL)

Answer 33

Occurs when an employee evaluates their own performance Part of formative or summative evaluation

Question 34

Financial Rewards

Answer 34

Rewards that an employer gives to employees, typically as part of an extrinsic motivation scheme, that have a specific monetary value

Question 35

Salary

Answer 35

Fixed, regular compensation paid to employees on a periodic basis (bi-weekly/monthly) Typically paid to white-collar workers

Question 36

Wage

Answer 36

Monetary compensation paid by employees to workers either on a time basis or piece basis Typically paid to blue-collar workers

Question 37

Commission

Answer 37

Payment to an employee when they complete a sale Usually a percentage of the sales value

Question 38

Performance-Based Pay

Answer 38

Compensation based upon performance of an individual or the entire company When company goals are exceeded, employees receive compensation in addition to their regular wages or salary

Question 39

Employee Share Ownership Scheme

Answer 39

Award employees shares in the company Permit employees to purchase shares of the company below market value Matches employees’ purchase of shares

Question 40

Fringe Benefits

Answer 40

Forms of compensation that an employee receives other than their salary Insurance, company car

Question 41

Non-Financial Rewards

Answer 41

Rewards that an employer gives to employees, typically as part of an extrinsic motivation scheme, which do not have precise monetary value Nonetheless valued by employees

Question 42

Job Rotation

Answer 42

Occurs when employees rotate positions in an organisation, from one division to another

Question 43

Job Enrichment

Answer 43

When an employee is given additional tasks that are challenging and usually done by managers Extra tasks lead to professional growth and improve motivation

Question 44

Job Enlargmenet

Answer 44

Occurs when additional tasks associated with a job are added to the job description Additional tasks do not necessary require additional skill or are more difficult

Question 45

Empowerment

Answer 45

Involves giving individuals access to resources and information to do their jobs and give them power to make decisions

Question 46

Sense of Purpose

Answer 46

Refers to the ability of businesses to connect employees to the aims of the organisation other than profit

Question 47

Teamwork

Answer 47

Involves working cooperatively within a group of people to achieve a common goal

Question 48

Culture (HL)

Answer 48

Achievements, arts, attitudes, customs, norms, social institutions and values of a social group

Question 49

Organisational Culture (HL)

Answer 49

Similar to corporate culture An organisation's culture will often reflect some of the cultural practices of its host country Two organisations operating within the same country could also have different cultures

Question 50

Power Culture (HL)

Answer 50

Exists when a few individuals retain the essential power in an organisation Have few roles and procedures Decision-making tends to be swift

Question 51

Role Culture (HL)

Answer 51

Exists when employees have clearly defined roles and operate in a highly controlled and precise organisational structure Usually hierarchical bureaucracies

Question 52

Task Culture (HL)

Answer 52

Exists when organisational culture focuses on specific problems Power shifts from person to person as different people are better suited for certain tasks or issues

Question 52

Person Culture (HL)

Answer 52

Exists when individuals believe themselves to be superior to the organisation Some professional partnerships such as architecture can be predominantly person cultures

Question 52

Culture Clash (HL)

Answer 52

When two different cultures come into conflict Occurs in a business setting when one organisation has to work with another organisation due to inorganic growth and the two organisations have very different cultures

Question 53

Formal Communication

Answer 53

Refers to the official and formally recognized methods of communication in an organisation Often documented Verbal: Interviews Meetings Presentations Recorded phone calls Visual: Presentations Maps Notice boards Videos Sign language Written: Formal E-mails Reports Memos Letters Press releases

Question 54

Informal Communication

Answer 54

Refers to the various ways in which information is casually disseminated Verbal: Face-to-face communication Gossiping Unrecorded phone calls Visual: Body language Gestures Written: Informal E-mails Texts Blogs

Question 55

Barriers to Communication

Answer 55

Various impediments that prevent communication form happening when and how it should Linguistic Psychological Structural Communication styles Conflict Cultural differences and language DIssatisfaction or disinterest Inability to listen to others Lack of transparency/trust

Question 56

Conflict in the Workplace (HL)

Answer 56

Conflict between management and organised groups of workers Typically over pay, benefits and control of the work

Question 56

Collective Bargaining (HL)

Answer 56

When employees of an organisation work together when bargaining with management about wages and work conditions Typically occurs at businesses where employees are unionised and union representatives assist with the bargaining process

Question 56

Work-to-Rule (HL)

Answer 56

When employees precisely follow the rules of their existing contract Do the minimum required Deliberately slows down work or decreases productivity

Question 57

Strike Action (HL)

Answer 57

When workers stop working because they are dissatisfied with the conditions or compensation Work stoppage provides leverage against the employer to discuss pay

Question 58

Threats of Redundancies (HL)

Answer 58

When management threatens to eliminate employment positions if workers do not accept terms in an industrial dispute When positions are made redundant, the workers filling them would lose their jobs

Question 59

Changes of Contract (HL)

Answer 59

When an employer threatens to make certain changes to an employment contract, giving them some bargaining power over employees Only possible in less developed countries

Question 60

Lockups (HL)

Answer 60

When management locks up the company or factories, preventing workers from entering them Workers no longer receive any pay, escalating the dispute

Question 61

Closure (HL)

Answer 61

Permanent or temporary shutting down of a factory, plant or office. Only effective in countries without stipulating legal conditions and consequences of closure

Question 62

Conciliation (HL)

Answer 62

Occurs when a third party conciliator mediates between management and labour Offers ideas that may help both sides reach an agreement

Question 63

Arbitration (HL)

Answer 63

Occurs when a third-party arbitrator mediates between management and labour Has the authority to decide how the conflict will be resolved

Question 64

No-Strike Agreement (HL)

Answer 64

Stipulation in the collective bargaining agreement that, during the lifetime of the contract, workers will not go on strike Agreed upon in exchange for some concessions from management

Question 64

Single-Union Agreement (HL)

Answer 64

Workers agree that one union will represent the worker’s interests Allows for a greater degree of coordination in collective bargaining procedures