BM Unit 2: Human Resource Management

Human resource management

to make the most optimal use of workers

External factors

demographic, labor mobility, immigration, flexi-time, gig economy

Reasons for resistance

self-interest, low-tolerance, misinformation, and misunderstanding, interpretations of circumstances

Self-interest

Employees value their personal gain, such as their position and financial security

Low tolerance

Workers may have a low tolerance for changes in security and stability

Misinformation and misunderstanding

Occurs when reasons for change are not clearly explained.

Interpretation of circumstances

When different people have different interpretations of the rationales and the benefits of change.

Kotter Schlesinger's Model for overcoming resistance to change

Identifies four main reasons why employees resist organizational change. It helps managers to make better decisions to overcome them.

Resistance to change

Opposition by individuals or groups to change introduced by an organization. Can delay implementation, reduce employee commitment, and limit the success of change initiatives.

Accountability

The extent to which a person is held responsible for the success or failure of a task, job, or project.

Bureaucracy

Formal policies and procedures of the businesses.

Centralization

Where decisions are made by a small group of managers at the top of the hierarchy.

Chain of command

The formal lines of authority in an organization in which decisions are communicated.

Communication

The transfer of information from one entity to another

Decentralization

Spreading out the authority of making decisions from a centralized group

Delegation

Flat organization

Organizational structure that has only a few layers of management

Hierarchy

Organizational structure that is vertical with many lavels of ranks

Line manager

A person directly above an employee

Managers

People responsible for the day-to-day running of the business or a department within the business

Matrix structure

A form of flexible organizational structure that uses teams of employees with suitable skills and qualifications drawn from different departments or divisions

Organization by function

Structuring a workforce according to business functions

Organization by product

Structuring a workforce according to the goods and services sold

Organization by region

Structuring a workforce according to different geographical locations based on where the firm's operations are

Organizational chart

A diagrammig representation of an organization's formal structure

Outsourced workers

Individuals or other organizations hired on a contract basis to carry out specific but non-core roles in Charles Handy's Shamrock organization

Peripheral workers

Contingent workers consisting of temporary staff hired according to Charles Handy

Professional core

Core workers consist of full-time specialists who are vital for the organization's survival

Project-based organization

Structure based on the specific needs of a short-term project

Responsibility

Line manager's level of concern about who they are in charge of

Shamrock organization

Organizations must adapt to changes in the business environment, a core workforce, a contingent workforce, and outsourced workers, as proposed by Charles Handy.

Span of control

How many workers are directly accountable to a particular line manager

Tall organization

Many layers in the hierarchy

Autocratic leadership

Leadership involving centralized and autonomous decision-making

Democratic leadership

Leadership that involves the participation of employees when making decisions

Functions of management

Roles and responsibilities of managers

Intuitive thinking

Management based on the manager's own values or gut feelings that are not always quantifiable

Laissez-faire leadership

Hands-off approach by developing decision-making power to the employees

Leadership

Inspiring and motivating other people towards achieving a common organizational aim or vision.

Logical reasoning

Process of thinking or knowing using facts, evidence and clear rationale

Paternalistic management

Management style involving treating workers as family members, so managers make decisions believed to be in the best interest of the workforce

Situational Leadership

Leadership style that requires leaders to change and adapt to their approach in response to different situations.

360-degree appraisal

A type of appraisal system that provides feedback from a range of people who work with the appraisee.

Acquired needs theory

D. McClelland's theory of motivation, based on three types of needs that must be satisfied in order to improve motivation: achievement, power, and affiliation

Appraisal

Formal procedure of assessing the performance and effectiveness of an employee

Comission

The financial payment system that rewards workers with a certain percentage of the sales

Differentiated piece rate

A financial payment system proposed by F.W. Taylor to reward workers based on the level of their productivity.

Division of labor

The process of splitting up different parts of a job or task and assigning different employees or teams to parts.

Employee share ownership scheme

A financial payment system involving giving workers shares in the company they work for

Equity Theory

J.S. Adams' theory of motivation suggests that people make social comparisons of fairness in the workplace

Esteem needs

The desire of people to feel respected according to Maslow's hierarchy of needs

Expectancy theory

V. Vroom's theory of motivation suggests people only put in the amount of effort to do a job or task if they expect their performance to be recognized

External recruitment

Hiring people from outside the organization

Formative appraisals

Appraisals that take place continuously

Fringe benefits

Additional financial benefits for employees, and a key topic in collective bargaining

Hierarchy of needs

A. Maslow's theory of motivation that people are motivated by different levels of needs: physiological, safety, social, esteem, and self-actualization

Hygiene factors

Factors that F. Herzberg argued caused dissatisfaction in the workplace if not addressed.

Induction training

Training intended for new employees to help them get used to the environment

Motivators

The will to work out of enjoyment proposed by Herzberg's Two Factor Theory: job enlargement, job enrichment, job enrichment, job rotation

Performance-related pay (PRP)

A financial payment system used to pay people a bonus for reaching or exceeding a set target.

Person specification

Details of the attributes and qualities of the ideal person for a particular job

Physiological needs

Requirements for human survival in Maslow's hierarchy of needs

Promotion

Career advancement in heirarchy

Safety needs

Requirements in Maslow's hierarchy of needs that make people feel safe

Scientific management

The theory of motivation that people are motivated by higher wages, and that this is the one best way to motivate employees, was proposed by F.W. Taylor

Self-determination theory

E. Deci and R. Ryan's theory of motivation that suggests three key requirements to facilitate motivation in the workplace: autonomy, competence, and relatedness

Social needs

Requirements in Maslow's hierarchy of needs about being accepted by others

Adaptive cultures

Organizational culture that exists in organizations that are responsive and receptive to change.

Corporate culture

Refers to an organization's set of core values and beliefs, which shape the firm's attitudes, behavior, and norms

Esteem Needs

Measure of a person's ability to adapt and integrate todifferent cultures

Gods of management

Charles Handy's theory of the different types of organizational culture identifies types of culture: power, task, role, and person cultures

Person culture

Organizational culture where people regard themselves or their skills as more important, proposed by Charles Handy

Power culture

Where an individual makes decisions for the organization, as proposed by Charles Handy

Practices

What a firm does, and how it goes about this

Role culture

Where operations and organizational norms are underpinned by formal and hierarchical structures.

Task culture

Involving teams of experts who are empowered to complete a project with their skills

Barriers to communication

The factors that can prevent information from being transferred effectively

Channel of communication

Means through which communications take place between the sender and the recipient

Cultural Barriers to Communication

Barriers to effective communications through differences in social norms, beliefs and values

External communication

Communication between stakeholders of one organization and another organization

Formal communication

Communication through official channels

Jargon

Technical language to improve communication

Informal communication

Communication through unofficial channels

Internal communication

Communication between stakeholders

6 barriers to communication

Language, cultural, physical, technological, organizational, psychological

Organizational barriers to communication

Obstacles caused by a lack of understanding of the internal functions and structures

Psychological barriers to communication

Caused by individuals with contrasting and conflicting mindsets

Restricted channels of communication

Confidential information thus needs to be communicated formally to a limited number of people

Arbitration

Uses an independent arbitrator who decides the most appropriate outcome, considering demands from both sides

Transmission mechanism

Approach to conflict by employers through changing the terms and conditions of employment

Change management

Processes to plan changes in business operations

Closure

When employers temporarily shut the business in response to extreme actions of their employees

Collective bargaining

Negotiation of working conditions and pay between emplyer and employees

Compromise

Method of conflict resolution involving stakeholders making considerations for other stakeholders

Conciliation

Process of using a mediator to help facilitate negotiations during the conflict resolution process

Conflict resolution

Methods taken by employers and employees to oversee and handle conflict in the workplace

Employee participation

When workers are given responsibilities and atonomy

Employee representatives

Those who are elected to represent the worker members

Employer representatives

Those who represent the interest of the organization

Fringe benefits

Non-financial rewards given to employees