Human Resources

Human Resources

1. Objectives

   • types
     • labour productivity
       • controls the costs of the business by creating more output per day
     • number + location of workforce
       • ensures enough employees to meet customer needs and enough size in the location to give high service
     • engagement and involvement
       • improve business performance
     • training
       • improve employee performance and attract the best employees
     • talent development
       • helps to compete and cope with shortages of skilled employees
     • diversity
       • fairer society of contribution
     • alignment of values
       • can give competitive advantage and pursues vision
   • influences
     • internal
       • overall objectives
       • attitudes of senior managers
       • hard HR approach
         • employees=resource, little pay or control, talked down too
         • autocratic
       • soft HR approach
         • employees=valuable, consult and give control
         • democratic
       • type of product
     • external
       • tech
         • replace labour with tech or online access
       • economy
         • revised no of employees needed due to unemployment figures
       • social
         • ethical and environmentally friendly products
       • competition
         • HR objectives reduce labour costs which makes up for the price elasticity
       • politics
         • equalities act, hiring and firing rules

2. Analysis

   • labour productivity
     • output/number of employees
     • higher productivity is preferred
       • higher profit margins + lower labour cost per unit
     • depends on motivation andequipment
     • must look at when analysing
       • aspects of business covered my productivity data
       • productivity ignores wage rates
       • productivity depends on other factors e.g capital intensive businesses
       • competitors productivity
   • unit labour costs
     • non-wage employment cost from production of output
     • unit labour costs = how much paid to employees for one unit
       • determined by cost of employment and speed produced
     • higher productivity = lower labour costs ( inverse relationship )
     • lower preferred
   • employee cost as % of revenue
     • when labour costs make up most of costs (tertiary) this is important to control
     • influencing factors
       • productivity
       • wage rates
       • non-wage employment costs
       • managment of capacity
   • labour turnover and retention
     • turnover = no. leaving in year/average no. *100
       • caused by low morale, wages and training
       • incurs further costs
       • lower rates desirable
     • balance recruitment of enthusiastic team with costs of doing so
     • retention = no. employed in year/average no. *100
       • important to manage due to difficulty with retaining professionals or specialists
       • high rates desirable
   • use for planning and decisions

3. Organisational structure and flow

   • Job design
     • affected by
       • task characteristics
       • process
       • ergonomics
       • work practices
       • employee avaliability
       • social expectations
       • feedback
       • autonomy
       • variety
     • deciding the contents of a job by duties
     • rotation
       • switching similarly complex tasks with employees
     • enlargement
       • extends the employees range of duties
     • enrichment
       • vertically loading the job design with more challenging tasks
     • empowerment
       • giving control over their working lives
     • changes to design can improve chance of meeting objectives with motivation, lower costs, higher quality etc
   • Organisational design
     • process of shaping organisational structure to effectively achieve objectives
     • influences
       • size
       • life cycle
       • corporate objectives
       • technology
     • organisation structure
       • clear strucutre needed for task divides, groups and coordination
       • hierarchy
         • how levels of authority are ranked in structure
       • chain of command
         • order in which authority and power are exercised and delegated from top down
       • authority
         • power or right to give orders or make decisions
       • span of control
         • number of subordinates who can be controlled by one manager
       • flat hierachy = wide span of control
   • delegation, centralisation and decentralisation
     • delegaton = passing of authority to a subordinate
       • power lies with the manager
     • centralisation = decision making lies with management at top of hierarchy, little input from lower down
       • influences
         • uniformity of decisions
         • management style
         • skills and ability of the workforce
         • economic influences
         • technology
   • flow
     • movement of employees through a business
     • recruitment and selection
       • workforce plan decides how many needed
       • job description
         • sets out duties and tasks of job
       • job specification
         • sets out qualification and qualities required of an employee
       • advertise job
       • shortlist applications against specification
       • select candidates for interview
     • training is the provision of job related skills and knowledge
       • induction
       • on/off the job training
     • performance appraisal
       • systematic and periodic process that assesses an employees job performance in relation to criteria
         • determines additional training and promotion options
     • redundancy, redeployment and termination
       • redundancy = dismissal due to job no longer existing
         • over 2 yrs work = redundancy pay
         • 20+ people worker representatives + individuals notified
       • redeployment = moving existing to different job or location
       • dismissal
         • gross misconduct
         • persistent minor misconduct
         • substantial reason
       • natural wastage = loss of employees from retirement, resignation or death

4. Motivation and engagement

   • benefits of motivation
     • productivity
     • recruitment and retention
     • absenteeism
     • innovation
     • profitability
   • motivation theories
     • Taylor
       • scientific
       • solely motivated by money
       • no control over work
         • autocratic
     • Maslow
       • hierarchy of needs
       • one level satisfied, motivated by the next
     • Herzberg
       • two factor theory
       • motivators and hygiene factors
     • Mayo
       • motivation depends on type of work and relationships and morale
       • focus on employee need
   • methods of motivation
     • financial
       • wages and salaries
       • piece rate pay
       • commission
       • profit related pay
       • performance related pay
       • share ownership
     • non-financial
       • meaningful work
       • involvement
       • responsibility and recognition
       • only possible if
         • soft HR, democratic
         • opportunity is avaliable
         • culture of business
   • influences
     • finances (unit labour costs)
     • nature of work
     • culture
     • external factors

5. Employee-employer relations

   • employee involvement
   • managing employer-employee relations
   • value of good relations