Unit 2: Human Resource Management

NEW SPEC

Flexitime

a system in which employees work a particular number of hours each week or month but can choose when they start and finish work each day

Homeworking

where employees can perform their job from home, increasingly linked to their employer via the internet

Human Resource Management (HRM)

the role of managers in planning and developing the organization's people. This is done through interrelated functions such as the recruitment, selection, dismissal and training and development of employees

Human Resource Planning

activities that managers engage in to forecast their current and future needs for human resources

Net migration

the difference between the number of immigrants and the number of emigrants

Aging population

A demographic trend that occurs as the average age of a population rises

Demography

The scientific study of population characteristics.

Gig economy

a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

Migrant workers

people who move from one region to another in search of work

Mobility of labour

the extent to which workers are flexible enough to move to different locations (geographical mobility) and/or their flexibility in changing to different jobs (occupational mobility).

Portfolio workers

Those who simultaneously carry out a number of different jobs, often on a temporary basis.

Teleworking

Working from home but staying in touch with others with the help of technology

Workforce

The number of employees at any one point in time for a particular organization. It is often used to measure the size of businesses.

Accountability

describes the extent to which a person is held responsible for the success or failure of a task.

Bureaucracy

the official administrative and formal rules of an organisation that govern business activity.

Centralization

occurs when only a select few people at the top of an organization make the decisions

Chain Command

the line of authority that moves from the top of a hierarchy to the lowest level

Matrix structure

A flexible type of structure where representatives from different departments work together on a project or job.

Organised by function

Structuring a workforce according to business functions/roles/tasks e.g. marketing or finance

Organised by product

Structuring a workforce according to the foods or services produced or sold.

Organised by region

Structuring a workforce according to the different geographical areas.

Organisation chart

diagram that shows how the workers are organised in a business and who is in charge of whom.

Decentralization

Degree to which decision-making authority is given to lower levels in an organization's hierarchy.

Organisational structure

Refers to the levels of management and division of responsibilities within an organisation

Delayering

The removal of one or more of the levels of hierarchy from an organisational structure

Delegation

the empowerment of a person lower down in the organizational structure by passing on control and authority to complete a certain task or role

Flat Organizational Structure

an organization structure that has few layers of management and a broad span of control

Hierarchy

a system or organization in which people or groups are ranked one above the other according to status or authority.

Outsourced workers (HL)

Individuals or businesses that are not employed by the organization but are paid to complete particular and specialized tasks, such as advertising campaigns or skills training

Peripheral workers (HL)

part-time, temporary and self employed workers brought into the business as and when needed

Professional Core (HL)

According to Charles Handy, these are the core workers consisting of full-time specialists who are vital for the organization's operations and survival.

Project-based organization (HL)

arranges human resources around particular projects, each led by a project manager.

Level of hierarchy

A level of management where people have the same level of responsibility.

Line manager

someone in the direct line or chain of command who has formal authority over people and resources at lower levels

Managers

those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization's activities to reach its objectives

Responsibility

refers to who is in charge of whom and in what role or capacity.

Shamrock Organization (HL)

Charles Handy's model that organizations are increasingly made up of core staff who are supported by peripheral workers, consultants and outsourced staff and contractors

Span of control

the number of subordinates who report directly to a manager

Tall organisation structure

means that there are many layers in the hierarchy and hence managers have a narrow span of control.

Autocractic Leadership

leadership style that involves making managerial decisions without consulting others

Democratic leadership

a leadership style that promotes the active participation of workers in taking decisions

Functions of Management

Refers to the roles of managers, e.g. the planning, organising, commanding, coordinating and controlling of business operations.

Intuitive thinking and management (HL)

Based on personal beliefs, perceptions and instincts or gut feelings.

Situational Leadership

a theory that argues that the most effective leadership style varies according to leader-member relations, the nominal leader's power, and the task structure

Laissez-faire Leadership

A leadership style that leaves much of the business decision-making to the workforce - a 'hands off' approach and the reverse of the autocratic style

Leadership

the ability to motivate individuals and groups to accomplish important goals

Leadership style

refers to the way in which leaders tend to function, such as in an autocratic, paternalistic, democratic, laissez-faire or situational manner.

Management

the practice of achieving an organization's objectives by effectively using and controlling the available human and non-human resources of the business

Manager

Someone with decision-making authority in an organization and has responsibility for problem-solving in order to achieve specific organizational goals.

Paternalistic leadership

A leadership style where the leader makes decisions but takes into account the welfare of employees

Scientific thinking and management (HL)

based on objectivity, facts, and empirical evidence.

360-degree appraisal (HL)

an appraisal device that seeks feedback from a variety of sources for the person being rated

Acquired Needs Theory (McClelland) (HL)

states that three needs - achievement, affiliation, and power - are major motives determining people's behavior in the workplace

Appraisal (HL)

formal assessment of an employee's performance in fulfilling his or her job based on the tasks and responsibilities set out on their job description.

Commission

An amount paid to an employee based on a percentage of the employee's sales

External recruitment (HL)

the process of hiring people from outside the business

Formative appraisals (HL only)

Type of appraisal that takes place on a continual basis in order to allow workers to improve their performance and effectiveness.

Fringe payments

the financial rewards paid in addition to a worker's wages or salaries

Herzberg's Motivation-Hygiene Theory

A need theory that distinguishes between motivator needs (related to the nature of the work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that motivator needs must be met for motivation and job satisfaction to be high.

Hierarchy of Needs (Maslow)

physiological needs, safety needs, belongingness and love needs, esteem needs, self actualization needs, self transcendence

DIvision of labour

The specialisation of workers on specific tasks in the production process

Empowerment

delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding a problem

Employee share ownership schemes

Employee benefit scheme intended to motivate employees by giving them a stake in the firm's success through equity participation.

Hygiene Factors (Herzberg)

Part of a job Herzberg referred to that do not increase job satisfaction but will help to remove dissatisfaction

Induction training

introductory training program to familiarize new recruits with the systems used in the business and the layout of the business site

Internal recruitment (HL)

When a vacancy is filled by someone who is an existing employee of the business

Job enlargement

increasing the number of different tasks in a given job by changing the division of labor

Job enrichment

changing a task to make it inherently more rewarding, motivating, and satisfying

Equity Theory (Adams) (HL)

Motivation is based on the assessment of one's ratio of outcomes for inputs compared to others

Esteem Needs (Maslow)

Level 4: These include the need for things that reflect on self-esteem, personal worth, social recognition, and accomplishment. People often engage in activities such as going to school, playing a sport, enjoying a hobby, or participating in professional activities in order to fulfill this need.

Expectancy Theory (Vroom) (HL)

a model of motivation based on the assumption that motivation depends on how much we want something and on how likely we think we are to get it

Job rotation

a job enrichment strategy that involves moving employees from one job to another

Labour turnover (HL)

(Number of staff leaving / average number of staff employed) x 100

Maslow's Hierarchy of Needs

outlines five levels of needs. Lower order needs must be met before progressing up the hierarchy.

Motivation

the desire, effort and passion to achieve something. The willingness to complete a task or job with intent and purpose

Motivators (Herzberg)

Factors that increase job satisfaction and motivation levels, such as praise, recognition and responsibility

National minimum wage

The minimum pay per hour all workers are entitled to by law

Non-financial rewards

methods used to motivate employees that do not involve giving any financial reward

Remuneration

money paid for work or a service

Safety Needs (Maslow)

second level in Maslow's hierarchy - needs for freedom from illness or danger and the need for a secure, familiar, predictable environment (shelter)

Salary

a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Scientific Management Theory

According to this theory, the organization is a machine, and the worker is motivated by financial reward (Taylor)

Self-actualization (Maslow)

one of the ultimate psychological needs that arises after basic physical and psychological needs are met and self-esteem is achieved; the motivation to fulfill one's potential

Off-the-job training

all training undertaken away from the business, e.g. work-related college courses

On-the-job training

training that takes place in the work setting as employees perform their job tasks

Performance related pay

a financial reward to employees whose work has reached or exceeded a set standard

Piece Rate Pay

Employees are paid for each item produced that meets the desired quality standard

Physiological Needs (Maslow)

Level 1: These include the most basic needs that are vital to survival, such as the need for water, air, food, and sleep.

Self-appraisal (HL)

A performance appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview

Self-determination theory (Deci & Ryan) (HL)

describes three core requirements that facilitate growth & motivation in people.

Social Needs (Maslow)

Level 3: These include needs for belonging, love, and affection.Relationships such as friendships, romantic attachments, and families help fulfill this need for companionship and acceptance, as does involvement in social, community, or religious groups.

Summative appraisals (HL only)

Type of appraisal conducted periodically or at the end of a task or project, so includes an element of making a judgement about whether the appraisee has passed the agreed standards.

Teamwork

A form of non-financial motivation, involving the combined efforts of a group of workers to achieve of an organizational goal.

Productivity

measures the level of output per worker.

Profit-related pay

A bonus for staff based on the profits of the business - usually paid as a proportion of basic salary

Time rate

A payment system based on the amount of time employees spend at work.

Training

A planned effort to enable employees to learn job-related knowledge, skills, and behavior

Wages

An amount of money paid to an employee at a specified rate per hour worked

Adaptive Culture (HL)

exist in organizations that are responsive and receptive to change. Such organizations tend to be innovative and are able to foster change.

Corporate culture (HL)

the shared experiences, stories, beliefs, and norms that characterize an organization