Business Unit 7 - HR

Human Resource Management

Deploying and developing people within an organization to meet its business objectives

Why is HR important

Adds value to its output by:

• Increasing labour productivity

• Improving product quality

• Creating new ideas

• Providing better customer service

HR Planning (Workforce Planning)

Management process of anticipating and meeting an organization’s current and future staffing needs

Looks at:

• Historical Data/Trends

• Sales and income levels

• Labour turnover rates

• Flexibility/workload of employees

• Demographic changes

5 Problems of no HR (5R)

Recruitment, Resources, Reservations, Returns, Reputation

Factors that Affect HR Planning

Demographic Change, Changes in labour mobility, Immigration, Flexitime, Gig economy

Demographic Change

Caused by: net birth rate, migration rate, retirement age, females in the workforce

Ageing population effects: Increased dependent population, reduced labour mobility, changes in consumption patterns, change in employment patterns

Changes in Labour Mobility

The extent to which people can move to different locations and their flexibility in changing to different jobs

More mobile workers are → higher the supply of labour

Depends on: age, mobility of the job, discrimination

Immigration

Contribues to production, consumption and payment of taxes.

Reasons for immigration: Pay, opportunities, seasonal factors, domestic instability, standard of living

Flexitime

Requires employees to work for a core period, but the rest of the time is flexible

Benefits: improves firm image, reduces overtime, freedom and balance

Teleworking or Homeworking

B/D of Homeworking/Teleworking

Benefits: Flexible hours, lower cost of technology, low absenteeism, reduced overheads

Drawbacks: Workers exceed work hours, social isolation, management is more difficult, technological breakdowns

Gig Economy

Workers are short-term, flexible, and temporary contracts. Includes freelance workers/independent contractors

Benefits: greater flexibility, lower cost, workers are more in control of work balance

Drawbacks: No job security or benefits, no regular income, higher burnout rate, risk

Portfolio Workers

People involved in a number of different jobs carried out simultaneously, often temporary

Resistance to change in the workplace

Self interesnt, low tolerance, misinformation, different assessments of the situation

Sx change approach

1. education and communication

2. participation and involvement

3. facilitation and support

4. negotiation and agreement

5. manipulation and co-option

6. explicit and implicit coercion

Centralization

Decision-making power is kept in the hands of a few people or shared among the workforce.

Benefits: rapid decision making, better control, better sense of direction, efficiency

Drawbacks: added pressure/stress for senior staff, inflexibility, possible delays in decision making, demotivating

Decentralization

Decision making authority is shared with others

Benefits: input from workforce, faster decision making, improved morale, improved accountability, teamwork

Drawbacks: costly, inefficiencies, greater chance of mistakes, some loss of control, communication issues

Factors decision making depends on

Size of organization, importance of decision, level of risk, corporate ulture, management attitudes

Delayering

Removing one or more structures in the hierarchy to flatten the organizational structure

Benefits: reduces cost, improves communication, encourages delegation

Drawbacks: creates anxiety, increased workload, slower decision making

Matrix Structure

Flexible method of organizing employees from different departments to temporarily work together

Benefits: improved communication, maximizes skill set, cost-effective

Drawbacks: added workload, difficult to coordinate, time consuming

Flat organizational chart

Exist in cultures that foster creativity and innovation

Benefits: more opportunities, better communication, cheaper, eliminates hierarchy

Tall organizational chart

Traditional approach

Benefits: quicker and more effective communication in small teams, easier to control, more productive, greater promotional opportunities

Drawback: bureaucratic

Types of leaders

Autocratic, Paternalistic, Democratic, Laissez-Faire, Situational

Autocratic leader

Makes all the decisions and prefers not to delgate responsibility

Benefits: quick decision making, workers opinions ignored

Paternalistic Leader

Guides employees through the consultation process and acts in the best way of their subordinates

Democratic Leader

Involves employees in the decision making process

Benefits: better morale and job satisfaction, improved decisions
Drawbacks: delays decision making, not suitable for large workforces

Laissez-Faire

Allow subordinates to make their own decisions and complete tasks their own ways

Benefits: higher motivation, promotes creativity

Drawbacks: delays decision making, relies heavily on teamwork and goodwill of employees, encourages slack

Situational leadership

Depends on: CLOTS

culture, leader, organizational structure, task, subordinates

Motivational Theorists

Taylor, Maslow, Herzberg

Taylor

Employees are motivated by money, productivity is improved by setting output and efficiency targets related to pay

Division of labour and differentiated piecework

Differentiated piecework: workers are paid a standars level out output and receive overtime

Drawbacks of Taylor

Drawbacks: ignores the non-physical contribution of workers, difficult to measure physical output (like teaching)

Maslow

Focused on the psychological needs of workers. People need to be satisfied with their lower level needs first.

Needs: psychological needs, safety, love/belonging, esteem needs, self-actualization

Drawbacks of Maslow

Level of needs are difficult to measure, assumes everyone is motivated in the chronological order

Herzberg

Focused on the sociological and psychological aspects of work

Hygiene factors (security, pay, conditions, relationships) and motivators (achievement, advancement, personal growth, recognition)

Limitations: does not apply to low-skilled/payed jobs, some employees do not want enriched jobs

Financial Rewards

Salary, wages, commission, performance related pay, profit-related pay, employee share ownership schemes, fringe payments

Non Financial rewards

Job enrichment, job rotation, job enlargement, empowerment, purpose, teamwork

Types of training

Induction, on the job, off the job