Unit 4 - Operations Management

Question 1

What is a Hard HRM approach?

Answer 1

An approach to managing staff which focuses on cutting costs such as temporary and part time staff & contracts, offering maximum flexibility with minimum training costs

Question 2

Advantages of a Hard HRM approach ?

Answer 2

+ Reduces the risk of errors being made
+ Employees are easily replaceable
+ Outcomes are predictable

Question 3

Disadvantages of a Hard HRM approach ?

Answer 3

• Low employee moral
• High staff turnover
• Reliant on management

Question 4

What is a Soft HRM approach?

Answer 4

The approach to managing staff which focuses on developing staff so they reach self-fulfilment and are motivated to work hard and stay within the business

Question 5

What are key thing which will happen with soft HRM

Answer 5

• A manger will ensure that an employees welfare and motivation are prioritised, employee relations will be strong
• View that employees can add value to an organisation and that a business should develop, enhance and build on their interests
• Managers are the facilitators, are there to help and support the employees

Question 6

What are advantages of soft HRM ?

Answer 6

• More creativity and innovation
• Competitive advantage
• Employee loyalty

Question 7

What are disadvantages of soft HRM ?

Answer 7

• Time
• Costs
• May not be suitable for the staff or business

Question 8

What are some issues of HRM for anylasis ?

Answer 8

Political
Economic
Social
Technological
Environmental
Legal

Pandemic
Ethical
Competition
(PESTAL & PEC)

Question 9

Why do managers need to measure employee performance ?

Answer 9

Managers need an unbiased and objective way to measure employee performance. They will need to look at data not the persons themselves.
It will indicate :
- Is the workforce motivated ?
- Is the workforce as productive as it should be ?
- Are the personnel polices of the business helping the business meet its goal ?

Question 10

What are the four KPI

KPI - Key performance indicators

Answer 10

1. Labour productivity
2. Absenteeism
3. Labour turnover
4. Waste level

Question 11

How to caluclate labour productivity ?

Answer 11

Labour productivity = Total output in a time period / Total staff employed
(X per worker per time period)

Question 12

What is labour productivity ?

Answer 12

It is seen as the most important KPI, comparing the number of workers to output. Increase in productivity suggests an improvement in efficiency and lean productivity systems look for greater output (production) from the least input (labour).

Question 13

What is absenteeism ?

Answer 13

The measure of the total number workers of who are absent as a %

Question 14

How to calculate absenteeism?

Answer 14

Absenteeism = (Number of staff absent / Total number of staff) x 100

Question 15

Think Herzberg’s hygiene factors

Why would people be absent?

Answer 15

• Poor working conditions
• No respect
• No teamwork
• Over (or under) supervision
• Inappropriate tasks
• Low pay

Question 16

What are the costs of absenteeism ?

Answer 16

Lost production – work lost forever no matter the business
Extra overtime – needed to meet the deadlines to cover for absent colleagues
Increased level of absenteeism – culture spreads through the firm

Question 17

How would you reduce absenteeism ?

Answer 17

Flexitime – relieves pressure of childcare or transport
Job enrichment – satisfying challenging job that will make workers want to come to work
Improved working conditions
Improved human relations – make workers feel valued

Question 18

What is labour turnover ?

Answer 18

The rate of change of a firm’s workforce

Question 19

How to calculate labour turnover ?

Answer 19

Labour turnover = (Number of staff leaving over a given period of time / Average number of staff ) x100

Question 20

What is labour turnover caused by internally?

Answer 20

Internal factors :
* Ineffective motivation or leadership,
* Poor recruitment
* Appointed the wrong person in the beginning
* Lower wages than a similar firm.

Question 21

What are positive consequences of labour turnover ?

Answer 21

New workers will bring new ideas to a firm
Workers with specific skills can be employed rather than having to train up existing employees
Cuts cost by reducing number of staff

Question 22

What are negative consequences of labour turnover ?

Answer 22

Negative look / bad reputation for the business
Cost of recruitment
Cost of training employees
Loss of productivity while new workers adjust

Question 23

What is waste level ?

Answer 23

The level of waste produced by a firm is an indicator of its efficiency.

Question 24

How to caluclate waste level ?

Answer 24

Waste level = (Quantity of waste materials / total production) x 100

Question 25

What are the costs of waste levels ?

Answer 25

Having waste materials is a cost to the business

Question 26

What would reducing waste levels lead to ?

Answer 26

Reducing waste would lead to more profit Actual cost of unused or scrapped materials Cost of reworking damaged goods Loss of reputation

Question 27

What are reasons for producing waste ?

Answer 27

Poor training Poor layout of the factory Lack of commitment from workers Lack of motivation for workers

Question 28

What solution can be given for waste levels ?

Answer 28

Personal mangers recruit the correct people and operations managers get the correct layout of factory

Question 29

How could employee performance be improved within a business ?

Answer 29

- Regular appraisals - Training - Encouragement - Motivation - Using a ‘Soft’ HRM approach - Financial incentives - Investing in technology

Question 30

What anylasis can be given to KPIs ?

Answer 30

Numbers on its own say very little and comparisons must be made either over time or with others in the business industry (can set targets).

Question 31

What have been past uses of IT in HRM ?

Answer 31

- Keeping records of employee records on databases - Recording flexible working schedules on planning software, all workers have access to information on where they are expected to work - Holiday planning on similar software, workers can enter preferred holiday dates

Question 32

What are some current uses of IT in HRM for recruitment ?

Answer 32

- Use of web portals allows employers to post details of job vacancies and qualifications & experience needed by applicants - Many workers will be recruited through social networks like linked-in - A business posts a job position on sites such as indeed, people are able to apply if qualified

Question 33

What are some current uses of IT in HRM for Training and development ?

Answer 33

- Training programs can be uploaded on IT such as essential induction materials - They can be viewed by employees as often as needed - Illustrations and demonstrations can be included to aid - Assessment tools can be incorporated so trainees can check understanding and progress through the training course

Question 34

What are some current uses of IT in HRM for Employee performance managment ?

Answer 34

- Computerised performance management software allows regular recording and updating employee performance - Managers can easily see how much work is being done/accomplished by each employee in a given period - Softerware will help the flow of information about employee performance across the business and can help employees take the initiative to improve their own performance

Question 35

What would be some future uses of IT and AI in recritument ?

Answer 35

- AI may be used in interviews - Reading through hundreds of applications rapidly and evaluate them with no human bias - Record and amylase the answers from candidates to common questions and respond with appropriate follow-up questions

Question 36

What would be some future uses of IT and AI in Training ?

Answer 36

The use of VR, more realistic and interactive courses e.g. an Air emergency to train cabin crew

Question 37

What would be some future uses of IT and AI in HRM ?

Answer 37

Answering employee questions, FAQs are answered through chatbots such as pay, holiday. Allows HR to focus on more complex issues and questions

Question 38

What evaluation can be given to the increased use of IT

Answer 38

- Frees up time for more important strategic issues - It can reduce the personal contact between HRM and employees makes the HR manager seem more remote - Increased dependence on IT can reduce two-way conversations/group discussions - Risk of creating a sense of being wated and monitored at all times amongst the employees