1.4 (MR A)

Human recourse management

• HR is important to business as it ensures that the organisation has the right people in the right roles with the right support with opportunities to succeed

• this will lead to higher productivity, more profits and a positive working environment

staff as an asset

• staff which support the manufacturing process or give great customer service can both add value to the product

• means the staff is developed with training and seen as a benefit to the business

• pros= staff participate in decision making and business can respond quickly to market changes

costs associated with employees

• internal recruitment (pros= saves time, money. Cons= might not have correct skill set)

• external recruitment (pros= new ideas, variety of skills. Cons= expensive to train and advertise)

cost of staff welfare

an umbrella term that can mean anything from facilities and benefits, to working conditions and recruitment pension rates

• means that more satisfied employees that are less likely to leave

cost of redundancy

• employees are made redundant when the job no longer exists

• it happens when employers need to reduce their workforce

the hard approach

• treats employees as a cost

• traits= pay at NMW, use temporary/ zero hour contracts, lack of job securities

• pro= can result in lower costs, enables managers tight control over employees

the soft approach

• treats employees as the most important asset in the business and a source of competitive advantage

• traits= profit share, effective recruitment processes, investment in training, permanent contracts

• pro= more skilled and adaptable employees, more motivated

flexible workforce

• the ability of a company or it’s employees to adapt to changing circumstances

• pros= improved productivity, reduced costs

• cons= potential miscommunication, blurred life work balance

zero hours

• type of employment contract where the employer is not obliged to provide minimum hours

• pros= when to accept shifts, cost efficient

• cons= lack of job security, unpredicted schedules

full time work

• 35-40 hours a week

• pros= job security, gives an advance in career

• cons= reduced flexibility, limited control over work load

muktiskilling

• refers to performing multiple roles in a work force

• pros= greater job opportunities, flexibility

• cons= overworked, demotivated means quality of tasks may be poor

permanent working

• an employment relationship with no predetermined end date

• pros= employee loyalty, more professional image

• cons= limited flexibility, difficult to adapt to workforce

temporary work

• one where the employer only needs extra staff to cover a seasonal period

• pro= useful to meet seasonal demand

• cons= high injury rates, all staff need training

part time working

• someone who works fewer hours than a full time worker

• pro= keeps costs down, flexible

• cons= non loyal and committed workers (may leave for full time)

what is external recruitment?

attracting applicants from outside the business

pros= fresh perspectives, larger talent pool, specialised skills

cons= increased costs due to training and advertising, time consuming process

what is internal recruitment?

promoting someone already in the business

pros= quick process, cost effective as reduced training costs

cons= potential bias, lack of fresh perspectives

what is a person specification

details the qualifications, skills and attributes needed

what is a job description?

a document outlining the duties and responsibilities

what is an application form?

a standardised form for applicants to complete

recruitment process

• identify vacancy

• job description

• write a person specification

• advertise the vacancy

• candidates apply

• candidates are shortlisted

• interview short listed candidates

• candidates may participate in another recruitment activity

what is an organisational design

• refers to a diagram or chart which shows the lines of authority and layers in the hierarchy of the business

what is a hierarchy

• a system in a business where employees are ranked due to their status and authority

what is a chain of command?

• the flow of information power and authority through the organisation

• they can delegate tasked to those subordinate to them in the hierarchy

spam of control

• all the people that the manager is responsible for

• narrow span= less people under the manager

• wide span= more people under the manager

what is decentralisation?

• where a business divided up the organisation into areas

what is centralisation?

• where a business has its organisation of management and its administration at one central head office

what is a tall structure

• narrow span of control, less people under the manager and very long

• pros= can get to know people well, knowing the employees means that managers can delegate right take to right people

• cons= inflexible as lots of layers, expensive as more managers and supervisors

what is a flat structure

• wide span of control

• pros= less layers of hierarchy so fast communication, lots of delegation means that staff are given greater responsibility

• cons= staff can be overworked as less supervision so demotivating, managers have a lot of staff so may not be able to form personal relationships

what is the matrix structure?

• when there is more than one product running at a time, a matrix structure is more suitable than a standard hierarchy

• pros= very flexible structure means that staff from different departments can jump in and out of different job roles, perfect to exploit the specific skills of staff

• cons= employees may have conflicts, may be coordination problems between departments

what is motivation?

• the inducement and stimulation of people to pursue greater productivity which leads to less wastage and higher profitability for a business

productive employees are:

• more creative

• more accurate

• more analytical

• better at handling problems and customer complaints

• better at offering good customer service

• better at selling

what is the importance of employee motivation?

• motivated staff are more reliable and loyal to the business

• loyal staff are less likely to leave

• less likely to take time off

taylor’s theory- scientific management

• workers are motivated by money

• managers should maintain close control and supervision over their employees

• autocratic style of management (managers make all decisions)

• motivate workers using piece rate payment (pay based on how much they produce

evaluation of taylor

• pros= improved efficacy and productivity, cost reduction, potential for high employee engagement

• cons= can lead to employee burn out, lack of employee output, quality may suffer, ignores job satisfaction

mayo- HR theory

• workers not just motivated by money but also having their human/ social needs met

• motivated by teamwork, communication and feeling valued

mayo evaluation

• recognises social motivation

• less effective if work is isolated

you can increase motivation by:

• better communication between managers and worker

• greater manager involvement in employees working lives

• working in groups

three elements to employee engagement:

• intellectual engagement- thinking about the job and how to do it better

• affective engagement- feeling positive about doing a good job

• social engagement- takes opportunities to share work related issues with others at wirk

maslows hierarchy of needs

• top- self actualisation (can only rise to this level once we meet the others)

• self esteem

• love/belonging

• safety

• psychological needs

evaluation of Maslow

• broad and flexible framework

• difficult to measure or apply precisely

Herzberg- two factor theory

• hygiene factors (pay, conditions) prevent dissatisfaction

• motivating factors (responsibility) create satisfaction

evaluation of herzberg

• explains long term motivation

• difficult to apply when roles are limited

Financial motivation methods

• bonuses

• piece rate payment- paid on how much you produce

• commission

• profit share- employees may be paid on annual dividend based on the level of profits made by the firm

• performance related pay

commission pro and cons

pros= skilled salespeople can make very good money, motivates employees to sell more

cons= sales people on commission could earn no money, not a steady income

bonus pros and cons

• pros= can be used as an incentive, can be used as appreciation for an employees hard work

• cons= can be costly for a business, employee will be paying taxes on the bonus they receive

profit share pros and cons

• pros= employees sole aim will be the success of the company, high motivation, will encourage teamwork

• cons= salaries of the individual employees go up equally not based off merit or promotion (doesn’t motivate), focus may be on profit share rather than quality of customer service

performance related pay pros and cons

• pros= easy for business to rank their staff when looking at who to promote

• cons= could cause jealousy and unrest, those that don’t meet the targets may become demotivated

non financial motivation methods

1. empowerment

2. delegation

3. consultation

4. job enrichment

5. job rotation

6. job enlargement

7. flexible working

empowerment

• giving employees greater control and authority over their work

• pros= increased productivity, motivation and job satisfaction, better decision making

• cons= decreased efficiency, blurred relationships

delegation

• transfer of authority for specific tasks

• pros= employee empowerment

• cons= loss of control

consultation

• process of seeking advice from others, particularly employees, stakeholders or experts

• pros= specialised expertise and advice

• cons= high costs, no guarantee

job enrichment

• increased complexity and responsibility of an employees job

• pros= low reputation and more engaging

• cons= some employees may feel that the job is more challenging

job rotation

• employees are temporarily moved between different roles or departments

• pros= high job satisfaction

• cons= disruption to workflow

job enlargement

• involves adding more tasks to a job to make it less repetitive

• pros= more flexibility

• cons= more training needed so higher costs

flexible working

• a working arrangement that gives employees a choice over where, when or how they work

• pros= high motivation and productivity

• cons= disrupt workflow, communication issues

what is leadership?

• the action of leading a group of people or an organisation, or the ability to do this

leadership traits

• motivated

• strategic thinking

• communicating

• self aware

• well respected

what is management?

• the process of dealing with or controlling things or people, the responsibility for and control of a company

management traits

• emotionally intelligent

• ability to delegate

• problem solving

• committing

toes of leadership style

• autocratic

• democratic

• paternalistic

• laissez faire

autocratic leadership

• when management make decisions with little or no input from employees

• pros= clear chain of command, allows for quick decision making

• cons= negative impact on employee motivation, ignores creative solutions to problems that employees have

democratic leadership

• allows employees to help in the decision making process

• pros= motivated employees as they feel valued, business benefits from employee ideas

• cons= decision making may take time, depends on the skills and knowledge of the employees

paternalistic leadership

• a leader who is being paternalistic makes the right decision for the employees that they are responsible for

• pros= loyal employees who will feel care for and protected, effective for low skilled workers who need guidance

• cons= doesn’t use skills and knowledge of employees, demotivated employees if wrong decision is made

laissez faire leadership

• employees can carry out activities and make decisions freely

• pros= suitable for creative environments, encourages the employees to grow and develop

• cons= lack of supervision can lead to poor productivity, employees may ignore the job