Key term 6

• Talent development - identifying, attracting, developing and retaining skilled employees to meet current and future organisational needs
• Training - providing employees specific knowledge, skills and competencies to improve performance
• Diversity - Variety of backgrounds (eg. Age, race, ethnicity, gender, sexual orientation)
• Functional structure - Employees are grouped based in their specialised functions
• Product based structure - employees are grouped according to the products/services they work on
• Regional structure - employees are organised based on geographic regions accommodating differences in local markets, regulations or customer needs
• Matrix structure - Combined elements of functional and product structures allowing employees to report to multiple managers and work on cross functional teams
• Piece rate - Compensation system where employees paid based on how much they produce
• Commission - form of compensation tied to sales or performance
• salary - fixed regular payment on a monthly bases regardless of how many hours worked or output produced
• Performance related pay - compensation system that links employees pay based on their performance
• Trade union - workers formed to protect and promote their interests, often involved in negotiations with employers regarding wages, benefits and work conditions
• Works council - representative body of employees within a business
• HR planning

  • Process used to play number & quality of employees required in short & long term
• Selection 


  • narrowing down, selecting person with best skills
• Recruitment 


  • Making public aware of the vacancy
• Redeployment 


  • Assigning employees to a new place or task
• Compulsory redundancy 


  • Employer needs to reduce workforce so employees selected for redundancy have no choice
• Voluntary redundancy 


  • Financial incentive offered to encourage employees to voluntarily resign
• Conciliation 


  individual & respondent talk through ACAS to try reach agreement
• Mediation 


  Intervention in a dispute in order to resolve it
• Arbitration 


  When a third party makes a decision on a dispute to resolve it
• Employment tribunals 


  when ACAS hasn’t been able to help come to a resolution between employer and employee

  this is then ran in a court & decisions are made by the judge
• Employee representation 


  arise when employees are part of a formal structure for involving them in the decision making process of a business
• HRM


  managing people to meet business goals
• Hard hrm 


  Treating staff as resources and is focused on output
• Soft hrm 


  Treating staff as assets and is focused in development
• Employee engagement 


  how committed and involved staff feel
• Labour turnover


  Percentage of staff who leave a business
• retention 


  percentage of staff who stay in a business
• Alignment of values

  Matching employee values with business values
• Number, skills and location of employee

  Making sure the right people are in the right place
• Labour productivity

  Output per worker
• labour cost

  staff cost to make one product
• Absenteeism rate

  Percentage of workdays missed by staff
• Organisational design


  How a business structures roles & jobs
• Hierarchy 


  Levels of authority in a business
• Span of control 


  Number of people a manager supervises
• Chain of command 


  line of authority from top to bottom
• Delegation 


  Giving someone else responsibility