Human Resource Management

Human Resource Management Functions

• Human Resources (HR) are all individuals within a business
• Workforce/HR planning identifies current and future HR needs to ensure sufficient, qualified staffing to achieve organizational objectives.
• Labor turnover is a metric measuring the rate at which employees leave a company over a specific period, calculated as a percentage of the total workforce.
• Formula for Labour turnover = (number of staff leaving over a year/average number of staff employed in a year) * 100
• High labor turnover: can indicate underlying labor issues that may demotivate, and decrease worker productivity.
• Low labor turnover can indicate stability in the work force reducing the chance of innovation.

External factors impacting work pool

• Technological change, like increased remote work options through new technologies.
• Demographic shifts, like aging populations, reduced birth rates, or migration trends.
• Economic conditions: Recession having higher unemployment, allowing employers to be more selective and potentially offer lower wages.

Internal Factors

• Changes in business organization in order to better meet strategic objectives.
• Labor relations shifts, with businesses needing to concede to union demands to keep operations running and the workforce motivated.
• Financial challenges causing layoffs to cut costs.

Recruitment

• Identification defines the job with a job description of the roles and responsibilities, and a person specification of what skills are required
• The company then decides if the job will be done by Recruiting internally by finding an employee, or externally by finding a completely new person
• Application involves making a job application public, which also involves deciding if its done internally or externally.
• Selection shortlists applicants, and interviews are scheduled to choose the right applicant

Training Process

• Crucial for productivity, motivation and labour turnover
• On the job is having the employees doing work while training (induction)
• Off the job is training employees outside of of work (workshops)
• Cognitive training focuses on developing employee's processing and thinking skills
• Behavioural training is aimed at developing interpersonal skills (stress management)

Appraisal

• Appraisal reviews employee performance against objectives
• Formative appraisal is an ongoing effort to point out mistake so employees can learn and recognition
• Summative appraisal is evaluating performance and comparing against standards
• 360 degree is recieving feeedback managers, and from co-workers
• Self-appraisal, the employees themselves rate their own performance

Dismissal, Termination and Redundancy

• Termination: Employees leave at end of their contract for professional development or retirement, and expect to recieve a reference
• Dismissal: When employee breaches contract (dishonesty), and does not receive a reference
• Redundancy: The position is no longer needed due to automation, or mergers

New Work Practices

• Teleworking: Working form home for a portion of the week
• Flexitime: Working a set numbers of hours where the employee decides the scheudle
• Migration: Commuting long distances for work

Organizational Structure Factors

• Levels of Hierarchy: different levels of responsibility in the business
• Chain of Command: Decision formal route
• Span of Control: A managers subordinates
• Delegation: manager giving subordinate the ability to make decisions and giving them responsibility
• Centralization: Decisions are made with managers closely working with the CEO
• Decentralization: opposite of centralisation (senior managers make core strategic decisions)
• Bureaucracy: Important rules and procedures which do not encourage personal initiative
• De-layering: Reduces management levels, and increases decision making and less costs as less managers employed

Organizational Structure Types

• Tall organisational structure (well-established), has concentrated decision marking and limited delegation
• Flat organisational structure (opposite of tall structure), has increased delegation and decentralized decision making
• by Hierarchy (Traditional way or representing business, senior managers > workers)
• by Function (Grouping employees by the departments they belong to)
• by Product (Dividing workforce based on what a company produces)
• By region (having different regional departments)

Structural Changes

• Project based includes employees organised round a firms current project
• Shamrock includes a business trimming it's workforce, to retain multi-skilled core.

Project Based Pros & Cons

• Advantage: Increases motivation
• Advantage: Each employee is specialised
• Disadvantage: Increases the costs of training
• Disadvantage: Staff unable to fit structure

Shamrock advantages and Disadvantages

• Advantage: Complete specialisation of the core tasks
• Advantage: Easier workforce hire and firing
• Disadvantage: Less job motivation
• Disadvantage: Not all members can fit the structure

Leadership and Management

• Planning : setting the objectives
• Organising: ensuring business has good resources
• Commanding : ensuring individuals know their duties
• Coordinating : bringing resources to achieve objectives
• Quality control

Management vs Leadership

• Managers are more timely focused
• Leaders have an ability to inspire, building relations with the workforce and motivation

Leadership Styles

• Autocratic has leader with the decision making, and consults with the senior management , and relies on close supervision
• Paternalistic (father like) has great concerns,extreme loyalty and commitment with employees
• Democratic has leader that involves employees, and is one of the most motivating

Leadership cont.

• Laissez-faire gives freedom to employees who are knowledgeable and open minded
• Situational varies depending on the case

Motivation Factors

• Motivation is the willingness to put in the high effort, to exert organizational goals
• Taylor (Scientific method) set the best way produce, people motivate by money (more output = more pay)
• Maslow breaks down a persons needs into a pyramid (survival and physical)

Motivation cont.

• Herzberg says are two factors affecting people's motivation (Hygiene and Motivators)
• Adams states people motivate, and remain in relationship with those people where give and take are equal and balance for everyone
• Pink, suggests businesses that needs to to stimulate intrinsic motivation without outsides effect
• Autonomy (workers needs to autonomous to to shape their own professionals
• Mastery (businesses needed innovative employees)
• Purpose, emphasizes purpose and to contribute

Remuneration

• Salary is regular fixed lump sum payment to staff, proving job security, and a regular income
• Wages is staff paid hourly, and feel recognised
• Commission increases the financial reward and achieves the beat sales for the company but may have a potential disadvantage from external factors

Financial rewards

• Profit related pay, where the staff has the feeling for the business success.

Non Financial rewards

• Usually take responsibility, and involving the decision making
• Empowers the employee making them feel more motivated in their work
• Giving team work, and encouraging the employees which might then increase productivity

Non Finanacial rewards cont.

• Job Enrichment where you give more employee power and recognition
• Has great recognition after what the team worked on or is going to work on

Job Enlargement

• Involves rotation and changing of the every days taks
• Motivating to see the bigger purpose in all the taks they have done

2.5 Organizational Culture

• Is the values, meanings, Attitudes, Beliefs and norms of a business
• Surface Manifestations is easy to see by stakeholders
• Organizational Structures is consciously written and thought out in vision statements Basic-Assumptions is internal beliefs and how to act
• The businesses cultures Power -Decision lies on certain groups Role- Decolonisation are mostly made through rules Tasks- power lies on the workers

Organizational Culture Consists of

• Power Culture Central source of control
• Role - rules made through established procedures
• Task- Decision made by those who can accomplish task
• Person-individuals who have expertise
• Culture clashes are differences between what someone wants and and what is in place.
• Has adverse divisions and higher turnover
• High brand image and profits which increases
• Employees with other and more committed
• Helps with misunderstanding instructions which can save time and money

Cons of culture

• Not all employees may accept even if they show contrary behaviours.
• Threatens employees is a large change

Industrial employee relations

• Negotiations between employer and employee representatives
• Causes of the disputes are different views , poor communication ,and resistant to change
• Measure employees against there dissatisfaction, in terms work rate and time
• Actions employer might take Changing the work standard, by locking out and dismissal with terms

Approaches to resolution

• Has a third party come in to settle as an independent source
• Industrial democracy Workforce participation- for example trade unionists on company
• Union agreeing to not going on strike action , by using action agreement firsts
• Recognising and saving mangers from unions with each other

Resistance to change

• Caused by fear of unknown
• Lack of skills , and poor communications
• Not rewarding them