Business Unit 2 IB

Professional Immigration

Moving to another country for work related purposes

Delegation

The passing and entrusting of certain tasks from managers

Role of HRM

- Workplace planning
- Recruitment and selection
- Training and Development
- Pay and Remuneration
- Discipline and Grievances (Dismissals and Redundancies)
- Employee Welfare

Internal Factors of HRP

- Finance
- Leadership styles
- Objectives and strategies

Dismissal

Being dismissed due to not meeting the standard quality of work

Redundancy

Being let go because they are no longer needed even if they are great at their job

External Factors of HRP

- Demographic Changes
- Labour mobility (Geographical and Occupational)
- Professional Immigration
- Flexi time
- Gig Economy

Demographic changes

Anything that related to population (aging population, birth rates, life expectancy, etc.)

labour mobility (Geographical and Occupational)

Geographical - how easy it is to switch the locations of where an individual works

Occupational - how easy it is to switch jobs (e.g. teacher to tutor is easy)

Flexi time

A system where employees are allowed to choose when and how many hours they work for as long as they complete the tasks before the deadlines

Gig economy

Short term and part time contracts and freelance is common

Reasons for resistance to change

- Self interest
- Misunderstandings
- Low tolerance
- Different perspectives/views

Strategies to counter resistance to change

- Education and Communication
- Participation and Involvement
- Facilitation and Support
- Negotiation
- Co-Optation and Manipulation
- Coercion

Education and Communication

Prepare and train employees for change

Participation and Involvement

By including employees in decision making, there is more loyalty to the company because they feel like they are a part of the company

Facilitation and Support

Being supportive and caring towards employees

Negotiation

Reconsidering and discussing financial and non financial rewards to come to a consensus

Co-optation and Manipulation

Managers will find a few employees who have influence and give them positions to try and instill their ideas of change onto employees

Coercion

Dismissals and loss of certain benefits

Span of control

The number of employees who are directly supervised by a manager

DIfference between a wide and narrow organisational chart

Wide - fewer layers, lower managerial costs, effective communication, harder to control
Narrow - more layers, higher costs, prolonged communication, easier to control

Levels of the hierarchy

Organisational system based on ranking

Chain of command

How instructions are passed down

Centralization

Decision making is in the hands of one group or one person

Decentralization

Decision making is in the hands of multiple groups of people

Bureacracy

Execution of tasks that are guided by complicated rules and procedures

Delayering

Removing a layer from within the hierarchy

Matrix structure

Employees report to several managers and work in cross department teams

Intrinsic

Motivated because they want to succeed

Extrinsic

Motivated because of external factors such as money

Taylor’s scientific management

• Idea is that people are only motivated by money

• The more you work, the more you earn

• Managers are in charge while employees just execute tasks

• Division of labour and specialisation

Criticisms of Taylor’s theory

• Mental output is hard to measure

• Not all people are motivated by money

• The more educated someone is, the more they have to say

• Implies tedious work and being told what to do

Advantages of Taylor’s theory

• The concept of scientific management still works

• Works well for money-driven people

• Works for low paid low qualified labour

• In line with some cultures

Maslows Hierarchy of Needs

• Physiological, Safety, Love and belonging, Esteem, Self actualisation

• Need to attain the next level before you can attain anything above it

Physiological

Basic human needs (food, water, clothes, shelter etc.)

Safety

Job security, being away from danger

Love and Belonging

To care and be cared by others

Esteem

Respect and acknowledgment in the workplace

Self actualisation

Being the best you can be

Criticisms of Maslow’s Theory

• Impossible to motivate workers using the same needs

• Levels of hierarchy are hard to measure

• Order of needs may vary from person to person

• Self actualisation is very rarely permanent

Advantages of Maslow’s theory

• Simple and easy to use

• Can be applied to all industries

• Can be used to motivate employees intrinsically

Herzberg’s two factor theory

Hygiene - factors that do not motivate but must be met to prevent dissatisfaction

Motivation - factors that increase satisfaction and performance at work

Motivation factors

• Job enlargement

• Job empowerment

• Job enrichment

Job enlargement

More variety in task but no increase in complexity

Job empowerment

Giving more decision making power to workers

Job enrichment

More complex and important tasks

Criticisms of Herzberg’s Theory

• Cannot be applied to low skilled, low paid labour

• Herzberg’s research was based only on accountants and engineers

• Not all employees will be motivated by things such as job enrichment/enlargement due to having more work and responsibilities

Advantages of Herzberg’s theory

• promotes the individual needs

• considers complex nature of motivation

McClellands Theory of Acquired Needs

Employees have three needs;

Achievement, Affiliation, Power

Achievement

Desire to succeed and achieve goals

Affiliation

Desire to be loved and to be around others

Power

Desire to lead and inspire others

Criticisms of McClellands theory

• Most people have all three needs that take turns at different times

• Best managers are people with power needs and the happiest are people with affiliation needs

Advantages of McClellands theory

• Theory is beyond identifying needs, also talks about developing and acquiring needs

• Employees get tasks based on said needs

Deci & Ryan’s Self determination theory

3 types of needs; Autonomy, Competence, Relatedness

Employees are motivated when all three needs are met

Autonomy

Power to take charge and make decisions

Competence

Need to develop and succeed

Relatedness

Care for and be cared for

Advantages of Deci & Ryan’s theory

• Adaptable

• Self determination

• Backed up by research

Criticisms of Deci & Ryan’s theory

• Potential cultural bias

• Overestimates intrinsic motivation

• Lack of measurement tools

John Adams Equity Theory

Employees compare their efforts and rewards to those of their peers

They become demotivated if their inputs are greater than their outputs

Equity vs Equality

Equity - fair treatment or opportunities

Equality - the same treatment of opportunities