Human Resource Management Overview

Human Resource Management (HRM)

• HRM is the strategic approach to effectively managing an organization's employees to gain a competitive edge.

Internal Factors Influencing HR Planning

• Changes in business finance:
  • Unfunded pensions impact current workforce finances.
  • Increased profitability allows for more staff.
• Changes in business organization:
  • Mergers, acquisitions, or growth affect HR planning.

External Factors Influencing HR Planning

• Immigration:
  • Increases the workforce, potentially lowering wages.
  • Introduces new skills.
• Demographic changes:
  • Longer lifespans lead to longer working careers.
  • Changing job requirements based on demographic shifts.

Resistance to Change in the Workplace

• Poor communication:
  • Insufficient or unclear communication about the change.
  • Employees lacking understanding of the change's purpose.
• Poor timing:
  • Timing conflicts with business needs (e.g., busy season).
  • Timing conflicts with personal reasons (e.g., family illness).

HR Strategies for Reducing Change Impact

• Education: Provide employees with necessary skills and information about the change.
• Identify key players: Engage influential employees to support the change and advocate among colleagues.

Organizational Structures

• Delegation Advantage: Improves creativity and communication, crucial in some industries.

Matrix Organizational Structure Reasons

• Project-based tasks (e.g., new store openings, product launches, market entry).

Flat vs. Tall Organizational Structures

• Tall (Vertical): Multiple levels of hierarchy, defined roles for each person.
• Flat (Horizontal): Fewer levels, wider spans of control, more autonomy for workers.

Regional Organizational Structure Disadvantages

• Conflict: Between local and central management.
• Duplication: Of resources and functions.

Shamrock Organizational Structure Benefits (HL Only)

• Adaptability to customer needs & preferences.
• Cost reduction—efficient use of resources.
• Price competitiveness.

Leadership and Management (HL Only)

• Scientific vs. Intuitive Management:
  • Scientific: Objective, data-driven decision-making, justifiable, risk reduction.
  • Intuitive: Personal beliefs, instincts, considers stakeholder well-being, faster, lower cost.

Autocratic Leadership Circumstances

• Quick decision-making in crises.
• Managing many unskilled workers.

Paternalistic Leadership Features

• Decision-making: Leader makes all the decisions.
• Employee perception: Employees viewed as "family" by the leader.
• Delegation: Minimal delegation.

Laissez-Faire Leadership Advantages

• Creative and skilled workforce requiring little oversight.
• Leadership as an equal in skill and knowledge.

Factors Determining Leadership Circumstances

• Organizational structure: Flat vs. hierarchical structures.
• External environment: Economic conditions.
• Leadership style: Democratic vs. autocratic approaches.

Motivation and Demotivation

• Taylor's Theory of Motivation Elements:

  • Piece-rate or time-rate pay systems.
  • Division of labor.

• Herzberg's Motivators vs. Hygiene Factors:

  • Hygiene Factors: Extrinsic factors (environment, salary) that, if absent, cause dissatisfaction.
  • Motivators: Intrinsic factors (job itself) that lead to motivation.

Maslow's Hierarchy of Needs (3 Levels)

- **Physiological needs:**  Basic needs for sustenance (food, shelter, water).
- **Safety needs:** Protection, job security, health and safety.
- **Esteem needs:** Achievement, recognition, self-respect.

McClelland's Needs (HL Only)

• Need for Power: Desire to control, influence others, and hold authority.

• Need for Achievement: Desire to accomplish goals, solve problems, and excel.

• Labor Turnover Calculation (HL Only): (Number of employees who left / Total workforce) * 100%

External Recruitment

• Advantage: New ideas, fresh perspectives.
• Disadvantage: Higher costs.

Recruitment Process Steps (HL Only)

• Job analysis: Determining essential skills, training, and tasks for the job.
• Job description: Providing candidates with details about the job role.

Pay Structures

• Piece rate: Paid per item produced.
• Hourly rate: Paid per hour worked.

Job Enrichment vs. Job Enlargement

• Job Enrichment: Increased complexity and challenges for employees, leading to better job satisfaction and motivation.
• Job Enlargement: Increasing the number of tasks within the same job role.

Employee Empowerment Disadvantage

• Oversight required to ensure appropriate and wise decisions from employee

Training

• On-the-job: Training at the workplace, usually from existing staff.
• Off-the-job: Training away from the workplace (e.g., courses, training centers).

This quiz explores key concepts in Human Resource Management, focusing on internal and external factors that influence HR planning. It also addresses resistance to change within the workplace, including communication issues and timing. Test your knowledge of HRM strategies and practices.