BUSS 3 (Unfinshed)

BUSS 3 (Unfinshed)

1. Topic 1: HR Objectives and Strategies

   • Human Resource Management = the process of making the best use of the business's employees so that the company can achieve its corporate goals.
     • External Influences on HR objectives.
       • Economical situations.
       • Technological advances.
       • Competition in the labour market.
   • How does HR differ in a large organisation?
     • Greater investment in training.
     • More elaborate motivation methods.
     • Employees may have more opportunities for career progression.
     • More involvement in trade unions.
   • HR Objective = a target the HR managers of businesses hope to achieve by implementing HR strategies.
     • HR Objectives...
       • Reduce Absenteeism.
         • Loyalty bonuses.
       • Increase labour productivity.
       • Minimise labour costs (Economies of Scale).
       • Developing skills of the workers.
         • Because of new technology in order to remain competitive.
         • Achieved by offering training.
   • Internal influences on HR objectives.
     • The corporate objectives of the business.
     • The firm's production strategies.
     • Marketing/financial strategies.
   • Hard HR Management.
     • A hard approach to HR makes costs the focus of the HR department and considers workers to be a resource, similar to machines or stock.
     • Advantages = Less effect on performance & Costs stay low (Economies of Scale).
     • Disadvantages = Bad word of mouth, lower motivation, absenteeism & bad communication.
   • Soft HR Management.
     • A soft approach to HR focuses on communication and motivation. Employees are considered the most important asset of the business.
     • Advantages = Increases motivation, productivity, customer service & reduces absenteeism.
     • Disadvantages = Management has less control & costs more than hard HR.

2. Topic 2: Developing workforce plans

   • Workforce planning = a document that details how a business will implement it's HR strategy.

3. Topic 3: Competitive Organisational Strcutures

   • Types of organisational strategies.
     • A traditional hierarchy - describes the structure of management, from top of the company (managing directors) to the workers.
       • A - help create a clear communication line and improves motivation from the development of departments or teams.
       • D - departments will only work for themselves & difficult to adjust.
     • A matrix structure - combines the traditional departments in functional structures with 'project teams'
       • A - avoid the need for several departments to meet regularly, so reducing costs & increasing motivation among team workers.
       • D - takes time for matrix teams to get used to working in this situation & divided loyalties towards two managers.
     • An informal structure - has few restrictions and no clear hierarchy, a communication method between all employees.
       • A - brings managers and workers closer together in terms of morale & tasks may get done faster.
       • D - managers may lose support from employees & reduced morale if workers are left out.

4. Topic 5: Innovation

   • Definition: The process of turning an idea into a saleable product or service.
   • Aims on innovation.
     • 1. To develop products with unique selling points, so you can charge a premium rate + no competitors.
     • 2. Develop better quality products, so customer service can be excelled.
     • 3. Develop more efficient ways of producing products or services, so you can benefit from economies of scale.

5. Topic 8: Lean production

   • A philosophy that originates from Japan. It is the belief that firm's can be more efficient (and thus lower their costs) if they find ways of eradicating waste.
   • Time-based management.
     • Reducing the length of time needed to produce a product, as well as it's delivery time.
     • A - Reducing the delivery time can enable the business to set a premium price + brand loyalty can be developed for the future.
     • D - Reduces the chance of benefiting from economies of scale.
   • Kaizen
     • Constantly introducing small changes to a company over time to improve quality and efficiency + workers are the best method of improvement as they're always there.
     • A - Less likely to take up capital, due to only small changes + motivates workers.
     • D - Constant improvements may put pressure among workers.
   • Cell production
     • A flow-production line split into a number of self-contained units. Responsible for certain parts of the production line (separate products).
     • A - Improves communication among workers, so they become more adaptable for future requirements.
     • D - Workers feel that they're pushed for more output + machines may not be used efficiently
   • Benchmarking
     • The process of identifying the "best practice" in relation to both products and the process by which those products are created and delivered.
     • The objective of benchmarking is to understand and evaluate the current position of a business or organisation and to identify all means of performance improvement.
     • Benchmarking process: 1. Understanding in detail of existing business' processes, 2. Analyse the business process of others, 3.Compare own business performance with others, 4. Implement the steps necessary to improve performance.
   • Just-in-time production
     • A firm that only produces what is required when required and understanding how much in quantity.
     • A - It keeps stock low, so storage space is saved + less working capital is tied up in stock.
     • D - Suppliers have to be very reliable + if products are faulty, then there are less replacements.