SL Module 2: HR

Commission

a type of financial reward that pays workers a certain percentage of the sale of each good or service that they are responsible for

Differentiated Piecework

an incentive scheme that rewards more productive workers who exceed a pre-determined benchmark

Division of Labor

the process of breaking down different aspects of a job or task and assigning different people to each particular part of the work in order to improve efficiency and output

Empowerment

a non-financial motivator that involves developing the potential of workers or teams to achieve the best they can by granting them the authority to make various decisions and to execute their own ideas to solve business problems

Employee Share Ownership Schemes

a type of payment system that rewards staff by giving them shares in the company or by selling the shares at a discounted price

Esteem Needs

refers to the desire of people to feel respected, having value and having self-respect; in Maslow's Hierarchy of Needs

External Recruitment

the process of hiring people from outside the business

Fringe Payments

the financial rewards paid in addition to a worker's wages or salaries such as subsidized meals, housing allowance and pension fund contributions

Herzberg's Motivation-Hygiene Theory

this theory looks at the factors that motivate employees, namely hygiene factors (that must be met to prevent dissatisfaction) and the factors that actually motivate employees

Hygiene Factors

parts of a job that do not increase job satisfaction but help to remove dissatisfaction, such as reasonable wages and working conditions

Induction Training

a type of training aimed at introducing new employees to the organization

Internal Recruitment

hiring people who already work for the business to fill a vacant post

Job Enlargement

increasing the number of tasks that an employee performs, thereby reducing or eliminating the monotony of repetitive tasks

Job Enrichment

given workers more responsibilities and more challenging jobs

Job Rotation

a form of job enlargement where workers are given different tasks, but of the same level of complexity, to help reduce the problems caused by performing repetitive tasks

Labor Turnover

measures the percentage of the workforce that leaves the organization in a given time period, usually a year.

Maslow's Hierarchy of Needs

this theory outlines 5 levels of needs, from satisfying physiological needs to slef-actualization.

Motivation

the inner desire or passion to do something; the driving forces can be intrinsic and/or extrinsic

Motivators

the factors that Herzberg considered to increase job satisfaction and motivation levels, such as praise and recognition

Movement

this occurs when people do something because they need to, so they feel obliged to do so; according to Herzberg

National Minimum Wage

the lowest hourly pay that all firms must remunerate their workers, as stipulated by the government

Non-financial Rewards

non-monetary factors that motivate people by offering psychological and intangible benefits (i.e. factors not directly linked to money)

Off the Job Training

training conducted off-site, such as at a tertiary college or hotel conference center

On the Job Training

training carried out while at the workplace. For example, the training can be delivered by a manager, supervisor, or other specialist

Performance-related Pay (PRP)

a payment system that rewards people who meet set targets over a period of time

Piece Rate

a payment system that rewards people based on the amount that they produce or sell

Physiological Needs (Basic Needs)

the requirements for human survival, including food, water, shelter and warmth; according to Maslow's Hierarchy of Needs

Productivity

this measures the level of output per worker

Profit-related Pay

a type of financial reward system which remunerates workers a certain percentage or amount of the annual profits that the firm earns

Purpose

a non-financial reward that refers to the opportunity to make a difference

Remuneration

the overall package of pay and benefits offered to an employee

Safety Needs (Security Needs)

the requirements that make people feel safe, such as job security; according to Maslow's Hierarchy of Needs

Salary

a type of financial payment that rewards workers a fixed annual amount of money, usually paid per month

Self-actualization

the highest level of needs, which occurs when people become the very best that they can be and fulfil their potential; according to Maslow's Hierarchy of Needs

Scientific Management

this theory suggests that specialization and division of labor help to increase the level of prodcutivity

Social Needs (Love & Belonging Needs)

the requirement to be accepted by others; according to Maslow's Hierarchy of Needs

Teamwork

a form of non-financial motivation, which involves the combined efforts of a group of workers to achieve organizational goals

Time Rate

this payment system rewards staff for the time (rather than output) that they put into work.

Training

the process of providing opportunities for workers to learn and acquire employment-related skills and knowledge

Wages

a type of financial reward payment system based on time or output. Either paid as time rate (hours) or piece rate (output)

Barriers to Communication

anything that can limit or impede the effectiveness of communications, thereby leading to information failure. Examples include jargon, ignorance, internal politics and computer failure.

Channel of Communication

the method(s) through which communications take place between the sender and recipient

Communication

the transfer of information between different people and between organizations

Electronic Mail

the process of using computer wide area networks (WAN) as a mailing system for communication purposes

External Communication

conducted between members of one organization and members of another

Formal Communication

the official and established channels of communication

Grapevine Communication

this covers all aspects of communication through unofficial (informal) channels

Jargon

specialist or technical language used to speed up communication

Informal/Grapevine Communication

refers to unofficial, natural and unstructured channels of communication, naturally established by people from within an organization

Information Overload

the excessive amount of information being passed onto staff, i.e swamping workers with too much communication. This can increase workload and stress

Internal Communciation

refers to communications within the business organization

Internal Politics

refers to conflict between people within an organization

Non-verbal Communication

any form of communication other than oral communication, such as electronic systems (such as email), written methods (such as letters) and visual stimulus (such as body language)

Open Channels of Communication

these are used when information is not confidential and can be shared by anyone

Restricted Channels of Communication

these are used when information is confidential and is directed only to those who need to know

Verbal/Oral Communication

communication via the use of spoken words, such as meetings, interviews and appraisals

Videoconferencing

a communication method that allows communications to take place via telecommunications networks. The parties can see and hear each other using hardware and software technology

Visual Communication

the use of visual stimuli to communicate information or ideas

Written Communication

communication methods that make use of the written word, such as letters, memoranda, reports and notices

Ageing Population

a demographic change that tends to occur in high income countries, with the average age of the population getting higher

Demography

the statistical study of population characteristics, using data such as birth rates, death rates, aging populations and net migration rates

Flexitime

a system that enables workers to have a degree of autonomy to determine when they work, so long as they complete their work by set deadlines

Gig Economy

labor markets where workers are typically on short term, temporary contracts or carry out freelance work as independent contractors

Homeworking

an aspect of flexitime whereby people work from their own homes

Human Resource Management

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

Human Resource Planning/Workforce Planning

the management process of forecasting an organization's current and future staffing needs

Migrant Workers

people who move to other countries in search of better job prospects and opportunities

Mobility of Labor

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

Net Migration

measures the difference between the number of workers entering a country (immigration) and the number of people leaving (emigration)

Portfolio Working

simultaneously carrying out a number of different jobs, often for various employers, usually on a part-time or temporary basis

Six Change Approaches

Kotter's model for reducing the impact of change and resistance to change. It consists of six strategies or approaches: i) education and communication, ii) participation and involvement, iii) facilitation and support, iv) negotiation and agreement, v) manipulation and co-option and vi) explicit and implicit coercion

Teleworking

a method of workforce planning whereby employees work in a location away from the workplace

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

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 organization that govern business activity; it involves prescribed rules and policies, standardized procedures, and formal hierarchical structures

Centralization

when the majority of decision making is done by a very small number of people (usually the senior leadership team) who hold decision making authority and responsibility

Chain of Command

the formal line of authority, shown in an organization chart, through which formal orders are passed down

Decentralization

when decision making authority and responsibility is shared out with others in the organization

Delayering

the process of removing levels in the hierarchy to flatten the organizational structure, thereby widening the span of control in the hierarchy

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

when there are only a few layers in the formal hierarchy and hence managers have a relatively wide span of control

Hierarchy

the organizational structure based on a ranking system

Levels of the Hierarchy

the number of layers of formal authority in an organization.

Line Manager

the person directly above an employee in the organizational structure

Managers

the people responsible for the day to day running of the business or a department within the organizaiton

Matrix Structure

the flexible organization of representatives from different departments temporarily working together on a particular project

Organization by Function

structuring a workforce according to business function (i.e specialized roles or tasks such as marketing or finance and accounts)

Organization by Product

structuring a workforce according to the goods or services produced or sold. Each department focuses on a different product within the organization's overall product portfolio.

Organization by Region

structuring a workforce according to different geographical areas, based on where the firm's operations are.

Organization Chart

diagrammatic representation of a firm's formal structure

Organizational Structure

the formal interrelationships and hierarchical arrangements of human resources within a business

Outsourced Workers

the individuals or organizations hired on a contract basis to carry out specific but non-core roles

Peripheral Workers

the contingent workers consisting of part-time and temporary staff hired by the organization to provide greater flexibility

Professional Core

the core workers consisting of full-time specialists (professionals) who are vital for the organization's operations and survival

Project-based Organization

organizing human resources around particular projects, each led by a project manager; these structures allow businesses increased flexibility to adjust quickly to market changes and to adopt rapid innovations

Responsibility

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

Shamrock Organization

the 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 overseen by an manager; the number of people who are directly accountable to the manager

Tall Organizational Structure

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

Autocratic Leadership

leaders who adopt an authoritarian approach by making all the decisions rather than delegating any authority to their subordinates