Unit 6

• The human resource function or department is responsible for the use of labour within the firm
• HR Objectives: Labour Productivity, Labour turnover, Employee engagement, Remote Working, Training, Diversity
• Hard HRM is where employees are treated as a resource to be used cost effectively
• Soft HRM is where employees are treated as the most important asset to the business
• Labour productivity =             Total output/

                                             Total number of employees
• Unit labour costs measure the labour cost per unit of output produced
• Labour Turnover = (Number of employees leaving the business / Number of employees at the start of the period) x100
• High levels of labour turnover can be caused by: Low wages and inadequate training, Ineffective recruitment procedures
• Labour Retention = (Average number of employees with a minimum length of service/ Average number of employees) x100
• A human resource plan assesses the current and future capacity of a business’s workforce
• Job design is the process of grouping together or dividing up tasks and responsibilities to create jobs
• Job Design: Job engagement, Job rotation, Job empowerment, Job enrichment
• Hackman and Oldman: Skill variety , Task significance, Task identity, Autonomy, Feedback
• Recent developments in job design include flexible working hours, flexible contracts and locations
• Organisational design is arranging the organisation to deliver its objectives in the short and long term
• Levels or layers of hierarchy is the number of layers of authority within an organisation
• Organisations with a large number of layers of hierarchy are referred to as “tall”

  Organisations with fewer levels of hierarchy are referred to as “flat”
• A flat organisation has relatively few levels of hierarchy and a wide span of control

  A tall organisation has many layers of hierarchy and a narrow span of control
• Delegation is the passing down of authority through the organisation
• A centralised organisation is where he majority of decisions are taken by senior managers
• Decentralisation gives greater authority to employees lower down the organisational structure
• Human resource flow is the movement of employees through an organisation, starting with recruitment
• •Human inflow is planning, recruitment, selection and induction

  •Human outflow is the release of employees including retirement, redundancy or dismissal
• Employee engagement exists when an employee is fully absorbed by and enthusiastic about their work
• Motivation describes the factors that arouse, maintain and channel behaviour towards a goal
• Theories of Motivation

  Frederick Winslow Taylor: Scientific School

  Elton Mayo: Human Relations School

  Maslow and Herzberg: Neo-Human Relations School of Management
• Maslow developed the Hierarchy of Needs:

  1. Physiological needs
  2. Security needs
  3. Social needs
  4. Esteem needs
  5. Self-actualisation
• Herzberg developed the two-factor theory of job satisfaction and dissatisfaction – motivators and hygiene factors
• Salaries are expressed in annual terms and are normally paid monthly
• Wages are usually paid weekly and employees are required to be at work for a specified number of hours
• Commission is a percentage of the value of revenues generated
• Piece rate pay is based on the quantity produced
• Performance related pay is related to meeting/exceeding targets
• Profit sharing is a system whereby employees receive some of the business’s profits
• Share ownership schemes: Share Purchase Scheme, Share Option Scheme
• Appraisal is the process of considering and evaluating the performance of an individual employee
• Trade unions are organisations of workers established to protect and improve economic position and working conditions of its members
• A works council is a forum within a business where workers and management meet to discuss issues such as working conditions, pay and training