Business Management Unit 2 - Human Resource Management

Define Human Resources

The people who work for a business.

Define workforce planning

A continual process used to align the needs and priorities of the organization with those of its workforce.It involves forecasting future workforce needs and ensuring the right number of employees with the right skills are in place.

Define labour turnover

The proportion of a firm's workforce that leaves during the course of a year.

Define demographics

Statistical data relating to the population and particular groups within it.

Define labour mobility

The degree to which people are able and willing to move from one job to another

Define recruitment

The action of finding new people to fill a specific position in a business

Define 360-degree feedback

A process through which feedback from an employee's subordinates, colleagues, and supervisor, as well as a self-evaluation by the employee themselves is gathered.It provides a comprehensive view of performance and areas for improvement.

Define self-appraisal

An act or instance of evaluating one's own worth, significance, or status

Define redundancy

This is when a job is no longer required so the employee doing this job becomes redundant through no fault of his or her own.

Define Human Resource Management

This is the management process of anticipating a firm's current and future staffing needs.

What is the equation for labour turnover?

(employees who left/Average number of employees)x100

What does it mean if labour turnover is high?

This could be a sign of: difficult working conditions, a poorly managed organizational culture or outright management failure

What are some costs associated with high labour turnover?

Need to pay for advertisements to recruit new staff, firing costs(golden handshake), Hiring costs, cost of training workersand potential loss of productivity during the transition period.

Name some external factors affecting workforce planning

Technological changes, government regulations, demographic change, social trends, state of economy, changes in education, labour mobility

Name some internal factors affecting workforce planning

Changes in business organisation, changes in labour relations, changes in business strategy, changes in business finance

Describe the recruitment process

Identify the vacancy, define the role, person Specification, advertise, short list candidates, interview, check references, test them, offer job

Define internal recruitment

Recruiting someone who already works in the company to fill a vacant position.

Define external recruitment

Recruiting someone who doesn't already work at the company

Name some advantages of internal recruitment

Less risky as the person is already well known, cost effective, motivation for the person to get a promotion, no need to go through the tedious recruitment process, person will have pre existing knowledge of what to do, no need to do reference check

Name some disadvantages of internal recruitment

Fewer applicants, time consuming, might be harder to get new ideas, internal politics

Name some advantages of external recruitment

More applicants, may have more experience, may positively impact workers, can bring new ideas

Name some disadvantages of external recruitment

Greater degree of uncertainty, time consuming, expensive

Define on the job training

Involves instruction at the place of work

Define induction training

Given to all new recruits and aims to introduce them t the people which they will be working closely with

Define off-the-job training

Entails any course of instruction away from the place of work

Define cognitive training

Aims to develop both the physical skill base of their workers through on-the-job training and their mental capabilities through the use of cognitive exercises

Define behavioural training

Allows employees to grow their skill base so that they can be more productive for an organiazation

Name some advantages of on-the-job training

Cheap, targeted, fewer disruptions, location is convenient

Name some disadvantages of on-the-job training

May pick up bad working practices, Trainers may lack the most up to date training experience and skills.

Name some advantages of induction training

Establishes clear expectations, helps new recruits to understand the corporate culture, morale boosted as new staff feel welcome

Name some disadvantages of induction training

Time consuming key staff need to be freed from their duties to conduct induction training, information overload, may take too long

Name some advantages of off-the-job training

Experts who might not exist internally are used to provide training, a wider range of training can be provided, no distractions, networking can take place

Name some disadvantages of off-the-job training

loss of workers whilst they attend such trainings, expensive, some of the skills learnt may not be relevant and transferable

Define appraisal

A way of judging an employee's performance

Describe some of the positive consequences associated with appraisal

The employer has the opportunity to restate objectives, can praise high performance, get a chance to voice concerns,opportunity to channel frustrations

Define summative appraisal

occurs at the end of a training period or a year

Name some reasons for making employees redundent

No need for the role anymore, not in the financial position to have so many employees, competition

Explain how privatisation affects employees

increased stress due to less stable position in the business and longer working hours

Explain how increased migration affects employees

Less payment, different ideas, more diverse

Define full time

guaranteed a minimum amount of working hours a week

Define permanent contract

Work there for the rest of your life

Define part time

for only part of the usual working day or week.

Define freelance

no set job, offers services to employers

Define teleworking

working over the telephone

Define homeworking

Work which can be done at home

Define flexitime

Certain number of hours are required but you can pick when you would like to work

Define job share

sharing a job with another person

Define offshoring

Moving part of a company's operations to another country

Define outsourcing

A business function or operation performed by a third party either onshore or offshore

Define reshoring

A deliberate attempt to move functions back to the country of origin

Name some of the disadvantages of outsourcing

Subcontractors have been known to cut corners by hiring under-aged, illegal and unqualified workers, quality management can become more difficult, Subcontractors need to be monitored, can cause redundancies, unethical practices

Name some of the advantages of outsourcing

Specialists are hired to carry out the work to high quality, subcontractors will bid for the outsourced work, reduce labour costs, improves workforce flexibility

Evaluate how innovation may influence human resource practices.

It is crucial that innovative and motivated workers are recruited to support and stimulate the creative process

Evaluate how ethics may influence human resource practices

As HR plans are based on relationships it is important that ethical guidelines are followedEvaluate how culture may influence human resource practices

Evaluate how culture may influence human resource practices

It is vital in today's world that cultural differences are understanding of and respectful toward diversity

Define delegation

The process of entrusting a subordinate to perform a task for which the manager or superior retains the overall responsability

Define span of control

The number of immediate subordinates one commander or leader can effectively control, supervise, or direct.

Define levels of hierarchy

The number of levels of formal authority from the top to the bottom of an organization

Define chain of command

Is usually depicted on an organizational chart as a vertical line of authority enabling decision-making or responsibility to be passed down through the layers of hierarchy.

Define bureaucracy in a business context

An administrative system of a business which relies on a set of rules and procedures, separation of functions and a hierarchical structure in implementing controls over an organization

Define centralization

The degree to which decision making is concentrated at upper levels of the organization

Define decentralization

Decision making occurs at all levels of management

Define delayering

A process designed to remove the number of layers in the hierarchy

Name some advantages of delayering

Reduce costs, improves the speed of communication, encourages delegation and empowerment

Name some disadvantages of delayering

Creates a sense of insecurity, overloads staff, decision making can take longer

Name some advantages of a tall hierarchical structures

Quicker and more effective communication within smaller teams, smaller teams are generally easier to control and manage, greater specialisation, more opportunities for people to be promoted which can be very motivating

Name some disadvantages of a flat hierarchical structure

Delegation becomes quite important hence subordinates get the chance to further their career, communication is improved, cheaper to operate, can help to eliminate a 'them and us' culture

Define project teams

People from different fields are put into one team to work on a project together

Name some advantages of project-based organization

Flexibility, productivity, efficiency, motivational

Name some disadvantages of project-based organization

Discontinuity, isolation, inefficiencies, conflicting interests and priorities

Describe handy's shamrock organization

Core workers: full-time employees with trusted experience and are small in number
External subs(contract workers): Are employed on a short-term basis for a specific task
Project workers(periperal workers): Are flexible workers employed on a par-time basis for reasons such as seasonal shifts in operation

Describe five functions management

Planning: managers are responsible for setting the course of action to achieve organisational objectives. They are involved in setting both tactical plans and strategic plans.

Commanding: managers give instructions and orders to their teams and subordinates in order to achieve business objectives. They should enforce discipline in the workplace to prevent slack and to prevent non-compliance.

Controlling: Managers are responsible for the performance and health and safety of their teams.

Coordinating: Managers have the responsibility for ensuring that all departments strive to achieve the goals of the organisation.

Organising: Managers organise resources in order to achieve corporate objectives. This might include delegating or allocating tasks to workers to ensure that deadlines are met

Define a leader

Someone who influences and inspires others to get things done. Fostering motivation, respect, trust and loyalty from the workforce.

Define a manager

Tend to focus on achieving goals within a period of time

Define autocratic leadership

Autocratic leadership is one person in charge who makes all or most of the decisions.

Define paternalistic leadership

Treat their employees as if they were family members by guiding them through a consultation process and acting in the best interest of their subordinates

Define democratic leadership

Someone who involves employees in the decision-making process.

Define situational leadership

Unlike any other style of leadership it is not based on any single dominant approach. In essence it is using the right leadership style for the right situation.

Define Laissez-faire leadership

Leaders who have a minimal direct input in the work of employees

Name the 5 styles of leadership

1.Autocratic
2.Democratic
3.Situational
4.Paternalistic
5.Laissez-faire

Describe Taylor's scientific management

1. Identify most efficient method of production
2. Spot the most efficient workers and see why they are so good
3. Train the remaining workers to work like the best
4.Pay workers based on productivity(piece rates)

Describe Maslow's hierarchy of needs

Emphasizes an individual's motivation in the continuous quest for self-actualization. The lower needs requiring fulfillment before those at higher levels can be achieved, with self-actualization being fulfillment of one's highest potential.

Describe Herzberg's two factor principles

Job dissatisfaction is influenced by hygiene factors such as: working conditions, coworker relations, policies and rules, supervisor quality, base wage and salary. Job satisfaction is influenced by motivator factors such as: achievement, recognition, responsibility, work itself, advancement, personal growth. Improving the motivator factors increases job satisfaction. Improving hygiene factors decreases job dissatisfaction

Describe Adams' Equity Theory

Inputs and outputs should be equal as people become demotivated when they feel their inputs are not being fairly rewarded.

Inputs: Time, effort, ability, loyalty, tolerance, flexibility, integrity, commitment, reliability, heart and soul, personal sacrifice.

Outputs: Pay, bonus, perks, benefits, security, recognition, praise, responsibility, enjoyment.

Describe Pink's motivational theory

Autonomy+Mastery+Purpose=Motivation

Autonomy: Being able to manage their own time

Mastery: Having the correct competence, experience, tasks, support and time to become good at it.

Purpose: Is it worthy for me, the task, the department, the company

Define financial rewards

Methods that a business can use to motivate workers with monetary payment.

Define salaries

Financial rewards set at a fixed annual rate but paid on a monthly basis. e.g. a person earning $36,000 per year is paid $3000 per month

Advantages of salaries

Can improve a firm's cash flow, good when output or productivity is not easy to measure

Disadvantages of salaries

Difficult to reward those who are more productive, little incentive to work harder as pay will stay the same

Define wages(time)

A reward for labour services, usually expressed as an hourly rate

Define wages(piece rate)

A reward for labour services, usually expressed as a measurable quantity of output

Advantages of wages

Straightforward method, more motivating for workers

Disadvantages of wages

Workers not rewarded for their efforts but for their time. This is not true for piece rates of course. a disadvantage of piece rates may that you may as a result sacrifice quality for quantity.

Define commission

Pays workers based on a percentage of sales or output contributed by the worker. For example, real estate agents might get paid 1% (the commision) of the value of each property personally sold.

Advantages of commission

Acts as an incentive to sell more

Disadvantages of commission

Added pressure on workers, tasks can be repetitive, difficult to meet security needs as workers do not know how much they will be paid

Define profit related pay

As a form of financial motivation, this method involves linking pay to the level of profit in the firm.

Advantages of profit related pay

Can foster team spirit and loyalty, hence boosting labour efficiency and decreasing conflict between workers

Disadvantages of profit related pay

The proportion of profit paid to the employees may be too small to act as an incentive to work any harder.

Define performance related pay

A system which rewards employees(as individuals, teams or as a whole workforce) who meet certain goals.