Human resource management
The strategic approach to the effective management of an organisation's workers so that they help the business gain a competitive advantage
Human resource of workforce planning
Analysing and forecasting the numbers of workers and the skills of those workers and the skills of those workers what will be required by the organisation to achieve its objectives
Human resource or workforce plan
Numbers of workers and skills of those workers required over a future time period
Workforce audit
A check on the skills and qualifications of all existing employees
Labour turnover
Measures the rate at which employees are leaving an organisation
Number of employees leaving in 1 year/average number of people employed x 100
Occupational mobility of labour
Extent to which workers are willing and able to move to different jobs requiring different skills
Geographical mobility of labour
Extent to which workers are willing and able to move geographical region to take up new jobs
Recruitment
The process of identifying the need for a new employee, defining the job to be filed and the type of person needed to fill it, attracting suitable candidates for the job and selecting the best one
Job description
A detailed list of the key points about the job to be filled, starting all the key tasks and responsibilities of it
Person specification
A detailed list of the qualities, skills and qualifications that a successful applicant will need to have
Training
Work-related education to increase workforce skills and efficiency
On-the-job training
Instruction at the place of work on how a job should be carried out
Induction training
introductory training program to familiarise new recruits with the systems used in the business and the layout of the business site
Off-the-job training
All training undertaken away from the business
Cognitive training
Exercises designed to improve a person's ability to understand and learn information
Behavioural skills training
Is designed to improve an individual's ability to communicate and interact with others both inside and external to the organisation
Employee appraisal
The process of assessing the effectiveness of an employee judged against preset objectives
Contract of employemnt
A legal document that sets out the terms and conditions governing a worker's job
Dismissal
Being removed or 'sacked' from a job due to incompetence or breach of discipline
Unfair dismissal
Ending a worker's employment contract for a reason that the law regards as being unfair
Redundancy
When a job is no longer required so the employee doing this job becomes redundant through no fault of his or her own
Teleworking
Staff working from home keeping contact with the office by means of modern IT communications
Portfolio working
The working pattern of following several simultaneous employments at any one time
Outsourcing
Using another business to undertake a part of the production process rather than doing it within the business using the firm's own employees
Flexi-time contract
Employment contract that allows staff to be called in at times most convenient to employers and employees
Temporary employment
Employment contract that lasts for a fixed time period
Part-time employment
Employment contract that is for less than normal full working week
Offshoring
The relocation of a business process done in one country to the same or another company in another country
Re-shoring
Reversal of offshoring, the transfer of a business process or operation back to its country of origin
Hard HRM
An approach to managing staff that focuses on cutting costs
Soft HRM
An approach to managing staff that focuses on developing staff so that they reach self-fulfillment and are motivated to work hard and stay with the business
Organisational structure
The internal, formal framework of a business that shows the way in which management is organised and linked together and how authority is passed through the organisation
Level or hierarchy
A stage of the organisational structure at which the personnel on it have equal status and authority
Tall (vertical) structure
One with many levels of hierarchy and, usually, narrow spans of control
Flat (horizontal) structure
One with few levels of hierarchy and wide spans of control
Span of control
The number of subordinates reporting directly to a manager
Chain of command
This is the route through which authority is passed down an organisation
Delegation
Passing authority down the organisational hierarchy
Accountability
The obligation of an individual to account for his or her activities and to disclose results in a transparent way
Delayering
Removal of one or more of the levels of hierarchy from an organisational structure
Bureaucracy
An organisational system with standardised procedures and rules
Centralisation
Keeping all of the important decision-making powers within head office or the centre of the organisation
Decentralisation
Decision-making powers are passed down the organisation to empower subordinates and regional/product managers
Hierarchial structure
A structure on which power and responsibility are clearly specified and allocated to their standing or position in the hierarchy
Matrix structure
An organisational structure that creates project teams that cut across traditional functional departments.
Effective communication
The exchange of information between people or groups, with feedback
Feedback
The response to a message by the reciever
Intranet
Internal computer networks built on internet technologies
Information overload
So much information and so many messages are received that the most important ones cannot be easily identified and quickly acted on
Manager
Responsible for setting objectives, organising resources and motivating staff so that the organisation's aims are met
Leadership
The art of motivating a group of people towards achieving a common objective
Autocratic leadership
A style of leadership that keeps all decision-making at the centre of the organisation
Paternalistic leadership
A type of fatherly style typically used by dominant males where their power is used to control and protect subordinate employees who are expected to be loyal and obedient
Democratic leadership
A leadership style that promotes the active participation of workers in taking decisions
Laissez-faire leadership
A leadership style that leaves much of the business decision-making to the workforce
Situational leadership
Effective leadership varies with the task in hand and situational leaders adapt their leadership style to each situation
Ethical leadership
Leading by knowing and doing what is 'right'
Extrinsic motivation
Comes from external rewards associated with working on a task
Motivation
The intrinsic and extrinsic factors that stimulate people to take actions that lead to achieving a goal
Intrinsic motivation
Comes from the satisfaction derived from working on and completing a task
Self-actualisation
A sense of self-fulfilment reached by feeling enriched and developed by what one has learned and achieved
Motivating factors
Aspects of a worker's job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work and advancement at work
Hygiene factors
Aspects of a worker's job that have the potential to cause dissatisfaction
Job enrichment
Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work
Salary
Annual income that is usually paid on a monthly basis
Hourly wage rate
Payment to a worker made for each hour worked
Piece rate
A payment to a worker for each unit produced
Commission
A payment to a sales person for each sale made
Performance-related pay
A bonus scheme to reward staff for above-average work performance
Profit-related pay
A bonus for staff based on the profits of the business
Job enlargement
Attempting to increase the scope of a job by broadening or deepening the tasks undertaken
Job enrichment
Attempting to motivate employees by giving them opportunities to use the full range of their abilities
Cell production
A lean method of producing similar products using cells, or groups of team members to facilitate operations by eliminating setup time between operations
Job redesign
Involves the restructuring of a job to make work more interesting, satisfying and challenging
Job rotation
The practice of moving employees between different tasks to promote experience and variety
Team working
Production is organised so that groups of workers undertake complete units of work
Organisational (corporate) culture
The shared values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external stakeholder groups
Power culture
Concentrating power among a few people
Role culture
Each member of staff has a clearly defined job title and role
Task culture
Based on cooperation and teamwork
Person culture
When individuals are given freedom to express themselves and make decisions
Entrepreneurial culture
Encourages management and workers to take risks, to come up with new ideas and test out new business ventures
Trade union (labour union)
An organisation of working people with the objective of improving the pay and working conditions of its members and providing them with support and legal services
Industrial action
Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favour of employees
Trade union recognition
When an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargaining individually with each worker
Collective bargianing
The negotiations between employees' representatives and employers and their representatives on issues of common interest such as pay and conditions of work
Single-union agreement
An employer recognises just one union for purposes of collective bargaining
No-strike agreement
Unions sign an agreement with employers not to strike in exchange for greater involvement in decisions that affect the workforce
Conciliation
The use of a third party in industrial disputes to encourage both employer and union to discuss an acceptable compromise solution
Arbitration
Resolving an industrial dispute by using an independent third party to judge and recommend an appropriate solution
Change management
Planning, implementing, controlling and reviewing the movement of an organisation from its current state to a new one
Project champion
A person assigned to support and drive a project forward and who explains the benefits of change and assists and supports the team putting change into practice
Project groups
These are created by an organisation to address a problem that requires input from different specialists