Business human resoucre management

Human resource management (HRM) definition

managing people for optimal business performance and aligning organisation goals to employee productivity

internal influences on HR

• cooperate objectives - the goals an organisation sets to guide HR policies

• organisational structure - the szie, scale, and height of it can determine the influences of how employees are treated

  • financial strategies - a decision to reduce costs via outsourcing can result in different HR training programmes

external influences on HE

1. market changes - a loss in market share can switch to more competitative HR schemes

2. economic changes - recessions can lead to less labour force

   1. social changes - more people demanding flexible work options

soft HRM and hard HRM

Soft HRM: an approach to HR which empasizes the human element of human resources, focusing on: employee development and well being, as well as motivation and collaboration

Hard HRM: an approach to HR that prioritizes organizational efficiency and performance, often focusing on cost control and strict performance management.

HR objective: employee engagement and ivolvement

the degree of commitment shown by employees towards the business, seen in contribution and decision making, this can be shown with employees:

1. being positive about the workplace

2. be active rather than passive

   1. seek opportunities

HR objective: talent development

identifies employees who have potential and nurturing the process, it is important to keep these employees to allow them to shine in your business.

HR objective: talent development CYCLE

1. Need / talent planning – finding gaps and what the business needs 

2. Recruitment / selection – finding the best employees to find a gap  

3. Orientation – starting day and teaching how thing work  

4. Skill development – developing and enhancing skills  

5. Performance evaluation – looking if they have reached their qoue and beyond  

6. Succession planning – promotion  

HR objective: training

the process of equipping employees with the skills and knowledge to do their jobs effectively, this can take time and money but the benefits can be considered greater

HR objective: diversity

identifying the fact that all employees are different and have different backrounds, beliefs and priorities. H

HR objective: alignment of values

bringing the core values or beliefs of employees together to focusing on a common task, leading to corporate culture where all employees have the right mindset

HR objective: number, skills and location of employees

matching the workforce skills, size and location to the businesses’ needs, being important for the business to run smoothly by meeting seasonal fluctuations and meeting new challenges

name the 4 human resource data methods:

1. labour turnover and retention rates

2. labour productivity

3. employee costs as a percentage of turnover

   1. labour cost per unit

labour turnover:

the amount of employees leaving the business

calculated as: number of staff who left % average number of staff X 100

over a specific period.

retention rates

a measure of a firm’s ability to keep its workforce with the business normally for more than one year

calculated as: number of employees serving for more than 1 year X 100

labiur productivity

a measure of workforce performance that looks at output per worker

calculated as: total output % number of workers

employee costs as a percentage of turnover

employee costs are all costs associated with the workforce, this helps calculate this with relation with revenue from sales

calculated as: employee costs % revenue X 100

labour costs per unit

a measure of the average employee cost per unit of output

calculated as: total labour costs % total output

organisational design and structure

organisational design: the framework which provides a structure

organisational structure: the way in which the firm is organised

centralised and decentralised authority

centralised: power is held at the top of management, with them making decision and going to them for enquiries

decentralised: distributed power among levels, greater flexibility and responsiveness

tall structure adv dis

adv: employees are closely supervised, promotion opportunites available, clear structure showing authority and repsonsibilty

dis: employees feel restricted, decisions take longer, more difficult communication

flat structure adv dis

adv: short communication, less constricted, quicker decision making

dis: fewer promotion opportunities, managers have large workloads / staff and lines of authority are not clear

centralised structure

decisions are made by the head office, which is then followed by the branches e.g. supermarkets, fast food

adv: senior management having control, customers have consistent experience, decisions are made in the interest of the whole business

dis: branch managers have limited responsibilites, fewer promotion opportunities

decentralised structure:

decision making is more regional, allowing branches and stores to make decisions

adv: workers are empowered to make decisions, they can be made quickly

dis: senior managers have no insight, reduced consistency

influence of delegation, centralisation and decentralisation:

B – Business and functional objectives  

L – Legal form   

O – organisational design  

T – technology  

S– Skills and attitudes of the workforce 

P–  priorities and attitudes of leaders and their preferred leadership styles  

O– organisational design  

D – degree of confidence and stability in the economic environment 

Maslow’s hierarchy of needs:

Herzberg’s two factor theory;

there are 2 key factors in motivators:

motivators: factors that motivate people more to work harder e.e.g responsibility, possibilities, and appraisal of work

hygeine (maintenance) factors: factors that can de-motivate if not present but do not motivate more e.g. working conditions, job security

Taylor’s scientific management theory:

• believed in the division of labour

• found the most efficient person in a job and set in as the standard

  • create a piece-rate-pay where you get paid for what you make

finanical and non-financial motivators

financial - using money value to reward workforce and influence work speed

non-financial - motivating employees through job design

HR flow

the movment of employees through an organisation starting at recruitment

human inflow

this encompases where and how to recruit employees, these actiosn can be planning, recruitment, selectiotion and induction

internal human flow

the flow of employees within the organisation, it includes transfers, promotions, demotions and pay terms

human outflow

regarding the release of employees

human resource planning

current workforce: size and skills → preparing for the furute workforce wants

where are they now → how are we going to get there? → where do we want to be in the future