3.6: human resources

• What is human resource management?

  Managing people within an organization
• What is the purpose of human resource management?

  Maximize employee benefits at minimum cost
• What are human resource objectives?

  Targets for employer-related issues
• What are examples of human resource objectives?

  • Employee engagement and involvement
  • Talent development
  • Training
  • Diversity
  • Alignment of values
  • Number, skills, and location of employees
• What is the talent development cycle?

  Process of planning, recruiting, and developing talent
• What are the steps in the talent development cycle?

  1. Analysis of needs/talent planning
  2. Recruitment/selection
  3. Orientation
  4. Skill development
  5. Performance evaluation
  6. Succession planning
• What is alignment of values?

  Bringing employees' core values together
• What are internal influences on HR objectives/values?

  • Time
  • Budget
  • Correct resources
  • Objectives of the business
  • Objectives of other departments
• What are external influences on HR objectives?

  • Workforce skills and availability
  • Technological change
  • Market conditions
  • Political factors
  • Current ethical and environmental issues
  • Social factors
• What is hard HRM?

  Managing staff as a resource to control costs
• What is soft HRM?

  Managing staff as an asset to achieve objectives
• What are typical characteristics of soft HRM?

  • Managers motivate through empowerment
  • Opportunities for development
  • Consultation and greater autonomy
• What are typical characteristics of hard HRM?

  • Employees motivated mainly by money
  • Training meets production needs only
  • Control mechanisms in place
• What is the formula for labour productivity?

  Labour productivity = Output per period / Number of employees
• What is the formula for labour cost per unit?

  Labour cost per unit = Total labour cost / Number of units produced
• What is the formula for employee costs as a % of turnover?

  Employee costs as a % of turnover = Employee costs / Sales turnover x 100
• What is the formula for labour turnover?

  Labour turnover = Number of staff leaving / Total number of staff x 100
• What are some external causes of high labour turnover?

  Changes in unemployment levels and local firm growth
• What are some internal causes of high labour turnover?

  Poor motivation, low wages, lack of promotion
• What are the benefits of high staff turnover?

  • New ideas from new staff
  • Recruitment of trained staff from competitors
  • Reduction of workforce through natural wastage
  • Enthusiasm of new staff influences others
• What are the disadvantages of high staff turnover?

  • Loss of loyal and experienced staff
  • Training costs and productivity drops
  • High recruitment costs
• What is the formula for absenteeism?

  Absenteeism = Number of staff absent / Total staff days worked x 100
• What is the link between labour retention and labour turnover?

  Higher turnover leads to lower retention rates
• What does an organisational chart set out?

  Authority and responsibility within a business
• What is a tall organisational structure?

  Structure with many levels of hierarchy
• What is an organisational structure?

  Way workforce is organized including roles
• What is a flat organisational design?

  Few levels in hierarchy with more responsibility
• What is the span of control?

  Number of subordinates a manager oversees
• In a flat structure, what type of span of control do managers have?

  Managers have a wide span of control
• What is chain of command?

  Order of authority and delegation in business
• What is delegation?

  Passing responsibility for tasks to others
• What are three advantages of delegation?

  • Reduces management stress
  • Empowers subordinates
  • Provides on-the-job training
• What are three disadvantages of delegation?

  • Depends on subordinates' experience
  • Harder in smaller firms
  • May increase workload of subordinates
• What is delayering?

  Removing layers of hierarchy in management
• What are three advantages of delayering?

  • Better delegation and empowerment
  • Improved communication
  • Encourages innovation
• What are three disadvantages of delayering?

  • Not suitable for all organizations
  • Can cause job losses
  • Causes disruptions
• What is authority?

  Power to allocate resources and make decisions
• What is a centralised structure?

  Authority for decisions kept at the top
• What are three advantages of centralisation?

  • Experienced business leaders make decisions
  • Consistent decisions across the business
  • Unbiased decisions for the whole business
• What are three disadvantages of centralisation?

  • Few experts for all business aspects
  • Excluding employees can demotivate
  • Slower decision-making process