Introduction to Human Resource Management
Define long term workforce planning.
Long term workforce planning looks at the human resource needs of the business in the foreseeable future. For example, the Walt Disney Company recruited and trained employees up to two years before Hong Kong Disneyland was opened.
For the revision:
Short term human resource planning deals with the existing and upcoming demands of an organization, such as employing workers to replace staff who are due to resign, retire or go on maternity or paternity leave.
Define matrix organizational structure.
Matrix organizational structure - a task-oriented organizational structure that is based on the use of teams, which are formed of employees with suitable skills drawn from across the normal departments to respond to the customers’ needs.
Define delegation.
Delegation - the passing down of authority through an organizational structure.
Define motivation.
Motivation describes the factors that arise, maintain, and direct behaviour towards a goal.
Define communication.
Communication is the exchange of information between people.
Define the term ageing population and name one factor that might cause it.
Ageing population - the average age of the workforce rises. It might happen due to a lower birth rate, lower life expectancy, and flexible working practices that enable people to work beyond the retirement age.
Name two functions that the organizational structure sets out.
The organizational structure, which may be shown in an organization chart, sets out:
● the routes by which communication passes through the business
● the people who have authority (and power) and
responsibility within the organization
● the roles and titles of individuals within the organization
● the people to whom individual employees are accountable and those for whom they are responsible.
Define management and name 4 of its functions.
Management is planning, organizing, directing and controlling all or part of a business enterprise.
The four principal functions are:
● planning
● organizing
● directing
● controlling
Explain one reason why Frederick Taylor believed that employees should be paid using a piece-rate pay system.
Taylor believed that workers were motivated by money. Because of this, linking payment to output was a key method of motivating employees.
Distinguish between formal and informal methods of communication.
• Formal communication is the exchange of information and ideas within and outside a business using official channels, such as annual general meetings and written documents.
• Informal communication is the exchange of information and ideas using unofficial channels, such as at social events and via conversation.
If managers do not make the most of their human resources, the organization will face a number of problems (the 5 Rs). What are those 5 Rs?
Recruitment - Higher costs of recruitment, induction and training.
Resources - Increasing amounts of resources and management time spent on dealing with personnel problems, rather than on achieving organizational objectives.
Reservations - Lower morale and higher levels of uncertainty suffered by existing staff who experience continual change mean that employees are more reserved and less productive.
Returns - Lower levels of labour productivity, profits and competitiveness.
Reputation - Poorer corporate image as the business cannot retain or motivate its staff.
All organizational structures have a number of features. Name at least 3 of them.
Delegation is the passing down of authority through an organization.
Levels (or layers) of hierarchy refer to the number of layers of authority within an organization. That is, the number of layers that exist between the CEO and a shop floor employee.
A span of control is the number of subordinates directly responsible to a manager.
The chain of command is the line of communication and authority existing within a business. Thus, a shop-floor worker reports to a supervisor, who is responsible to a departmental manager, and so on.
Bureaucracy is a system under which an organization uses complex rules and procedures, which can cause slow decision making and may reduce its efficiency.
Centralisation (Centralized organizations) - the decision making power is concentrated in the hands of managers. Opposite is decentralisation.
Delayering is a reduction in the levels of hierarchy within a organizational structure.
Name 5 leadership styles and explain each of them.
Autocratic leadership exists when managers keep control of information and make major decisions alone.
Paternalistic leadership is a style in which managers make decisions in what they believe are the best interests of their subordinates.
Democratic leadership occurs when information is shared and team members participate in decision-making. Sometimes known as participative leadership.
Laissez-faire leadership takes place when managers allow subordinates freedom to make their own decisions.
Situational leadership exists when a leader adjusts his or her type of leadership to best suit a particular situation or task.
Explain Taylor's, Maslow's, and Herzberg's opinions on the motivational powers of pay.
Frederick Taylor saw pay as the primary motivating factor for all workers. He referred to workers as “economic animals” and supported the use of piece rate.
Abraham Maslow saw pay as a reward that permitted employees to meet the lower needs on their hierarchy.
Frederick Herzberg saw pay as a hygiene factor and a possible cause of dissatisfaction. In a few circumstances, pay might be a motivator if, for example, it is used as a recognition of merit.
Name 5 types of communication methods and name 1 advantage and 1 disadvantage of each of them.
Email (• Fast and cheap • Can result in too much communication)
Telephone (• Very cheap • No visual elements)
Meetings (• Can include visual elements • Can be very expensive)
Business letters (• Provide a physical record of communication • Can be costly, especially when sent in bulk)
Social media (• Can be targeted at particular audiences • May be expensive in terms of staff time)
Text messages (• Cheap to deliver • Only suitable for simple short messages)
Live chat (• Can deal with customers’ individual issues • Can be costly in terms of staff needed)
Chatbots (• Provide consistent message • May not be suitable to respond to unusual queries)
Name and explain two internal and two external factors that influence human resource planning.
Internal influences on HR planning:
1) Corporate or overall objectives
2) Flexi-time
3) Type of product sold
External influences on HR planning
1) Demographic change
2) Immigration
3) Change in labour mobility
4) Gig economy
5) Technological change
6) The economic environment
Advantages:
● Efficiency: PBOs allow resources to be allocated where they will operate most effectively. This helps to complete projects to a high standard and on time.
● Responsiveness: The organization is designed to be able to respond to customers’ changing needs and is able to do so continuously and flexibly.
● More opportunities: As the organization is designed to meet customers’ needs, its products and services are improved. This encourages creativity and innovation.
● Employee performance: Employees within PBOs may perform well as they work on different projects and may have opportunities to develop new skills. They have the satisfaction of seeing projects completed successfully.
Disadvantages
● Isolation: If the projects are of long durations, employees may feel isolated from other employees within the business.
● Communication: This can become a problem, and it may be limited between individual teams, resulting in poor transfer of knowledge between teams.
● Negative effects on employees: Employees continually shift between teams and use their specialist skills repeatedly. This may mean that there are fewer opportunities for personal development and career progression.
● Conflicts of loyalty: Team members will report to functional and project managers, which may cause divided loyalties. Team members may become less loyal to the organization’s objectives over time.
Compare and contrast how scientific and intuitive management differ.
• Scientific management is based on the use of data and employs a logical, rational approach to management and decision-making.
• Intuitive management is quite different and occurs when managers rely on their instinct and experience, rather than data, when making decisions and solving problems.
• It may be that scientific management is more appropriate for major decisions where time is available to gather and analyse relevant data. Intuitive management is better suited to smaller, more immediate decisions. It also depends on the risk involved with decisions – the greater the risk the more scientific the decision making needs to be.
Define empowerment and analyse one reason why an empowered employee might be expected to perform better in the workplace.
Empowerment is a series of actions designed to give employees greater control over their working lives.
Empowered employees are likely to perform better as they should be more motivated to do so. Empowerment increases motivation as it offers employees more responsibility and this, according
to Frederick Herzberg, it is a positive factor leading to motivation.
Describe two barriers to communication.
• Changes in business practices, mergers and takeovers, lack of understanding by managers and the use of jargon and technical terms may create barriers to communication.
• Some managers do not appreciate that there is a problem with communication within a business. While this continues, a major barrier to communication exists.
• Mergers and takeovers create larger, more complex businesses that may contain elements with different cultures. All of these factors can inhibit effective communication.
What are 6 Human resource strategies for reducing the impact of change and resistance to change?
Education and communication: Managers need to explain to employees why the change is occurring, why it is needed and why it will work.
Facilitation and support: This occurs when managers ensure employees have the support they need to cope with the change. This could be the equipment they need, the training or the emotional support.
Participation and involvement: To ease change, managers may involve employees so they know what is happening and when, and so they can have some input into the process.
Manipulation and co-option: Managers may identify the key people who are likely to resist the change and bring them into the process. For example, they could be on the relevant committees and be given roles involved in bringing about change.
Negotiation and bargaining: This occurs when managers do a deal with employees. For example, they get employees to agree to higher productivity in return for higher wages.
Explicit and implicit coercion: If fast change is essential, managers may simply force change through. If the change then proves to be successful and helps the business, they may then accept it and agree with it. Coercion may take the form of threats such as redundancies or pay cuts.
Ferrari, the Italian sports car manufacturer, was founded in 1947 by Enzo Ferrari. The company prides itself on the outstanding build quality of its prestigious cars. Workers are exceptionally skilled and have a high degree of decision-making power due to decentralization. According to Ferrari, 88.5% of its 2,695 workers in Maranello, Italy have attended training programmes to develop their managerial and professional skills.
Explain two factors that influence the degree of decentralization at organizations such as Ferrari.
Factors that influence the degree of decentralisation at Ferrari might include:
The quality of experience and skills held by the workforce - in Ferrari’s case, this means that decentralised decision making can be justified.
Nature (size and scope) of the decision, e.g. major decisions that carry huge risks and costs will be centralised - made by the senior management team.
The size of the firm - as Ferrari is a relatively small car manufacturer with a very limited product range, there is less of a need to centralise decision-making and management control.
The organisational culture - the prevailing culture at Ferrari will mean an expectation of decentralised decision-making.
The size of the firm - as Ferrari is a relatively small car manufacturer with a very limited product range, there is less of a need to centralize decision-making and management control.
The nature (skills, experience, outlook and attitudes) of management - in Ferrari’s case, there seems to be mutual trust between management and employees, so some degree of delegation is likely to take place.
The geographical concentration of Ferrari (in Maranello, Italy) also means less of a need for centralised decision-making.
The need for product innovation in the motor industry also means that decentralisation is suitable for Ferrari.
Analyse three factors that can determine the circumstances faced by a leader:
• The nature of the subordinates will help to shape the circumstances faced by a leader. If the employees are highly skilled and experienced and used to making decisions, a more democratic style of leadership may be effective. This would not be the case with inexperienced and unskilled employees who may be more reliant on leaders and managers to take decision on their behalf.
• The external environment, economic cycle and stakeholder demands.
• Other factors that might determine a leader’s circumstances include the tasks facing the subordinate employees and the business’s objectives.
Evaluate three benefits of effective systems of training for a business that is expanding.
Good programmes of training help to provide employees with the knowledge and skills essential to carry out their jobs efficiently.
Employee skills and performance are very important to the success of the business in meeting its consumers’ needs.
The company is expanding and therefore will be hiring staff regularly. If this expansion is not to dilute the quality of its services, it is vital that new employees are trained to ensure they have the knowledge and skills to achieve the required standards of service.
The quality of customer service can act as a USP. If the business can develop this (and maintain it as it expands), this may help it to attract new customers and maintain its brand loyalty.
Define organizational culture and describe two factors that may be used to show differences between the cultures of organizations.
• Organizational culture refers to the values, attitudes, and beliefs of a business’s employees; it describes ‘how we do things around here’.
• The stories, for example, about great employees, past and present, who have shaped the way the business operates.
• Rituals which refer to the events the business stages and the ways in which it does things. These become a part of the way it operates.