Chapter 6

  • Created by: B-raa
  • Created on: 24-03-19 11:55
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  • Human Resources
    • setting human resource objectives
      • objectives
        • Talent Development: the identification of employees with outstanding potential to make a real contribution to the future success of the business.
        • Training: The equipping of all employees with the necessary skills to carry out their jobs effectively and improve performance
        • Diversity: Recognising each employee as an individual and welcoming employee differences
        • Alignment of values: the sharing of a common set of core values between all employees
        • number, skills and location of employees: to meet the needs of the business there must be the right number of employees, with the right skills, in the right place at the right time
        • employee engagement and involvement: the emotional connection of the workforce to the business, the commitment to pursuing goals and willingness to participate in aspects of decision-making.
      • HRM Types
        • Soft HRM is when employees are treated as assets that can help the business and grow with it to maximise the benefit of the relationship to both the employer and employee.
        • Hard HRM is when employees are treated as a resource to be utilised by the business to the maximum gain of the business.
    • Analysing human resource performance
      • calculations
        • Labour turnover - the number of employees leaving as a percentage
          • Number of employees leaving / Average number of employees x 100
        • Retention rate - a measure of the number of established employees as a percentage
          • Number of retained employees / Average number of employees x 100
        • Labour productivity - A measure of how efficient the workforce is in transforming inputs into outputs e.g. per year
          • Total output / Number of employees
        • Employee costs as a percentage of turnover - the proportion of sales revenue that is spent on employee remuneration as a percentage
          • Employee costs / Sales turnover x 100
        • Labour cost per unit - the total labour costs as £ per unit
          • Total labour costs / Total output
    • Improving organisational design and managing the human resource flow
      • Job Design
        • Job design describes the collection of tasks an individual is to carry out in order to fulfil the requirements of their job and the procedures and process that guide these.
          • Employers can seek to engage employees more by assessing the individual's job design and making changes. These can include:
            • Job enrichment
            • Job enlargement
            • Job rotation
            • Empowerment
          • Hackman and Oldham's model of job design is underpinned by the belief that the tasks making up the job design are the key motivational factors at work
        • Organisational design
          • The deliberate structure and procedures that are put in place to allow the business to function and ensure all employees are in a position to contribute towards short and medium-term goals
          • Influences relating to organisational design include:
            • Authority: allowing employees a degree of autonomy in making decisions,allocating resources and controlling tasks
              • Decentralisation: when decision-making is shared across several levels of the hierarchy
            • Span of control: the nuber of suboordinates a manager is directly responsible for
              • Delegation: the passing of authority down the hierarchy
            • Hierarchy: the number of levels within an organisational structure
              • Centralisation: when decisions are controlled by a few senior employees at the top of the hierarchy
      • Human resource flow
        • Human resource flow is the management and movement of workers within an organisation
        • Human resource flow includes:
          • human resource plan
          • recruitment
            • the inflow of workers into a business
          • training
          • redeployment
          • redundancy
            • when an employee's contract of employment is terminated because the job role no longer exists
    • Improving motivation and engagement
      • Benefits of motivation and engaged workers:
        • high labour productivity
        • low labour turnover
        • low absenteeism
        • improved customer service
        • positive employer-employee relations
      • Motivational Theorists
        • Taylor's scientific management
          • He stated that man was motivated by money
          • 1) Study the work process to determine the most efficient production methods
            • 2) Observe and time the best workers in these methods
              • 3) Train the remaining workers to the same standard
                • 4) Implement differential pay rates and close supervision to increase productivity
        • Maslow's hierarchy of needs
          • He believes that once one level of needs had been satisfied, workers could then be motivated by the opportunity to achieve the next level
        • Herzberg's dual factor theory
          • He believed that features associated with the work  environment and job design could be split into two categories:
            • Motivating factors
            • Hygiene factors: factors that will demotivate if not present but will not create motivation when present
      • Improving employee engagement and motivation
        • Financial motivators
          • Piece rate - paying employees per unit produced
          • Commission - rewarding employees in relation to the umber of sales made
          • Salary schemes - a fixed annual sum paid to employees on a monthly basis
          • Performance related pay - providing financial incentives to employees with a greater
        • Non-financial motivators
          • Job design - the combination of tasks to be performed
          • Job enrichment - providing employees with a greater variety of tasks at different levels of challenge
          • Job enalrgement - providing employees with a greater number of tasks all at the same level of challenge
          • Teamwork - allowing employees to work together to achieve goals

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