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.
Topic 2: Developing workforce
plans
Workforce planning =
a document that details
how a business will
implement it's HR
strategy.
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.
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.
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.