Business Management unit 2

What is HRM?

Human Resource Management is managing people to achieve business objectives.

Role of HRM

Includes workforce planning, recruitment & selection, training, motivation, appraisal, dismissal, and maintaining employee relations.

Internal factors influencing HR planning

Include business size, financial situation, corporate culture, and leadership style.

External factors influencing HR planning

Include labour market conditions, technology, legislation, economic conditions, and social changes.

Advantages of remote working

Lower costs, higher flexibility, and a wider talent pool.

Disadvantages of remote working

Harder communication, lower team cohesion, and harder supervision.

Reasons for resistance to change

Fear of job loss, loss of status, habit, poor communication, and lack of trust.

Kotter’s 8-Step Model

Steps include creating urgency, building coalition, forming vision, communicating vision, removing obstacles, encouraging short-term wins, building on change, and anchoring in culture.

Pros of flat organizational structure

Faster communication, higher motivation, and empowerment.

Cons of flat organizational structure

Managers overloaded and harder control.

Pros of tall organizational structure

Clear authority and better supervision.

Cons of tall organizational structure

Slow communication and demotivating.

Functional structure best for

Specialization, but can create silos.

Product structure best for

Large diversified firms, but can lead to duplication of costs.

Regional structure best for

Multinationals, but can complicate global coordination.

Three parts of a Shamrock Organization

Core employees, contract workers, and outsourced/flexible workers.

Difference between Managers and Leaders

Managers plan, organize, and control; Leaders inspire, motivate, and create vision.

Autocratic leadership style

Fast decisions are made, but leads to low morale.

Democratic leadership style

Encourages high motivation, but decisions may take longer.

Laissez-faire leadership style

Promotes creative teams, but risks chaos.

Paternalistic leadership style

Cares for employees but maintains control over them.

Situational leadership style

Adapts to context and is best for evaluation answers.

Taylor's motivation theory

Money motivates and works effectively in repetitive production.

Maslow's hierarchy of needs

Consists of five levels: physiological, safety, social, esteem, and self-actualization.

Herzberg's two-factor theory

Consists of hygiene factors (e.g., salary) and motivators (e.g., recognition).

McClelland's theory of motivation

Focuses on three needs: achievement, power, and affiliation.

Deci & Ryan's motivation theory

Distinguishes between intrinsic and extrinsic motivation.

Expectancy theory of motivation

Motivation is equal to expectancy times instrumentality times valence.

Labour turnover formula

(Number leaving / Average employees) × 100.

Causes of labour turnover

Low pay, poor culture, and bad leadership.

Impacts of labour turnover

Costliness, loss of skills, and introduction of new ideas.

Types of corporate culture

Power culture, role culture, task culture, and person culture.

Sources of conflict in industrial relations

Includes pay, working conditions, and redundancies.

Employee actions in industrial conflicts

Strikes and work-to-rule actions.

Employer actions in industrial conflicts

Lockouts and legal actions.

Resolution methods in industrial disputes

Include arbitration, negotiation, and mediation.