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
education and communication
participation and involvement
facilitation and support
negotiation and agreement
manipulation and co-option
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