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Human Resource Management - Coggle Diagram

- - - - Definition: employees are satisfied when they perceive that there is equity between the work they put in (inputs) and the benefits they receive (outputs
        
        business organisations must ensure that:
        
        their employees perceive that they are treated with equity
        
        employees see that people are compensated fairly based on comparing responsibilities and rewards (called social comparison)
        
        Cognitive distortion is when the employees perceive that they are treated unfairly which alter their input/output mix to reduce their feelings of being unappreciated
    - - States the importance of intrinsic motivation
      - Purpose
        
        Contributing to a greater cause
        Purpose and vision must be communicated
      - Autonomy
        
        Give employees control over when, how, and what they do and whom they do it with
      - 3 Factors that impact intrinsic motivation
        
        Mastery
        
        Sense of progress in work and ability
        Tasks must not be too hard or too easy to foster improvement without causing boredom or frustration
    - - There are characteristics that...
        
        Cause job dissatisfaction: hygiene factors
        
        Elicit job satisfaction: motivators
        
        Hygiene needs:
        
        salary
        
        peer relationships
        
        company policies and administration
        
        physical workspace
        
        security
        
        Motivation needs:
        
        personal growth
        
        achievement
        
        advancement
        
        recognition
        
        work itself
      - Key finding: There were entirely different reasons for job dissatisfaction and job satisfaction. So, eliminating the reasons for job dissatisfaction did not mean that job satisfaction would result
        
        Definition: 'hygiene' needs (demotivating factors) are needs that must be met 'motivator' needs, if met, give an employee satisfaction in their work
        
        Managers need to see employers as unique individuals and to motivate them accordingly.
        
        Matches up well with democratic leadership style
    - - People have 5 basic needs:
        
        Physiological/basic
        
        Satisfied by payment
        
        Security/safety – predictability and order
        
        Satisfied by job security, maternity leave, fringe benefits
        
        Social/love/belonging
        
        Satisfied by teamworking, anti-discrimination
        
        Esteem/ego – recognition and self-respect
        
        Satisfied by training and development, delegation, promotion
        
        Self-actualisation
        
        Satisfied by giving freedom to employees
        
        Needs must be satisfied from the bottom up (basic to self-actualisation)
        
        Limitations
        
        Needs cannot be quantified
        
        Ignores individuality of needs
    - - Division of labour and specialisation
        
        Standardization of work practice (seen in production lines)
        Workers should be chosen for their job based on ability
      - Differentiated piecework
        
        Payment based on standard level of output
        Paid extra for output beyond that level
      - Principle of scientific management
        
        Workers are motivated by cash
        Productivity can be improved by relating output/productivity to pay
      - Criticisms
        
        Repetitive and monotonous work – job dissatisfaction
        
        Non-physical contribution may not be quantified
        
        Ignored non-financial motivators
  - - - Commission
        
        Most frequently seen in sales work, getting paid a percentage of their total sales
      - Profit-related pay
        
        receive a percentage of the profits made by the company
      - Wages (piece work)
        
        workers' pay is based on the number of units or 'pieces' they make or complete
      - Performance-related pay
        
        worker can receive additional money (bonuses) for reaching pre-agreed objectives
      - Wages (time rate)
        
        payment made in weekly sums based on the number of hours one works
      - Employee share-ownership schemes
        
        employees are given shares of a company as a reward
      - Salary
        
        fixed annual sum that is usually paid over 12 equal monthly instalments
      - Perks or 'fringe' benefits
        
        paid to the employee in addition to their salary
    - - job enlargement
        
        attempting to increase the scope of the job by broadening or deepening the task undertaken
      - job enrichment
        
        aims to use the full capabilities of workers by giving them the opportunity to more challenging and fulfilling work
      - empowerment
        
        a non-financial motivator which involves a line manager giving their subordinates some autonomy in their job and the authority to make various decisions
      - team building
        
        production is organised so that groups of workers undertake complete units of work
- - - - Careful consideration of current abilities and what will be needed in the future (short-term or long-term)
      - Identifying gaps and considering ways of addressing these
      - Noting any training needs
      - Developing training, recruitment and other personnel policies (e.g. appraisals, employee welfare)
    - - Historical data: average length of service, labor turnover rate, etc.
      - Workload, specializations and flexibility of workforce
      - e.g. flexible workforce can deal with sudden shortage of staff
    - - Best number of people to complete a job efficiently
  - - - Skills & training req for the job
      - qualifications & personal qualities needed
      - rewards needed to recruit & rtain the job holder
    - - Outlines details of the job
      - element of flexibility
    - - Profiles ideal candidate
    - - External
      - Internal
      - Job advertisement
    - - Resume
      - cover letter
      - applicationn form
    - - Screen applications & shortlist suitable candidates
      - interview shortliested candidates
      - Perform testing
      - Check each shortlisted candidate's references
  - - - Flexibility of internal workforce
      - Cost of living
      - Cost and availability of transportation
      - Rate of unemployment
      - Demographic changes
        
        Labor Mobility
        
        Women in workforce
        
        Workforce flexibility, skills, and education
        
        Life expectancy and retirement age
        
        Net migration rate
        
        Net birth rate
  - - - Annual formal assessment of performance judged against pre-set criteria
      - reasons
        
        assess performance in line iwth job desc and targets
        
        reflect on performance
        
        praise good performance
        
        Set new goals/ target
      - Steps
        
        Look at staff records & reports
        
        Appraisal meeting
        
        appraiser writes a report
        
        Appraiser and appraisee sign final report
        
        Counter signature of manager
      - Appraisal methods
        
        Essay
        
        rating system
        
        peer
        
        upwards
        
        MBO (management by objectives)
        
        formative
        
        summative
        
        360 degree
        
        self appraisal
  - - - Improve efficiency and effectivity
      - Less wastage
      - Higher morale
      - Adapt to change easily
      - Flexible workforce
    - - Cost
      - Employees may leave since they are qualified for better jobs
    - - Induction
        
        Introduction to company policies, general info
        
        May involve meeting other personnel, touring the premises, etc.
        
        Advantages
        
        Establishes expectations
        
        Understand company culture
        
        Morale booster
        
        Disadvantages
        
        Time consuming
        
        Personnel have to be freed to work on the induction
        
        Info overload
      - On the job
        
        Learn from coworkers by experience
        
        May involve being mentored by or shadowing senior managers
        
        Advantages
        
        Relatively cheap
        
        Relevant job-specific skills are learned
        
        Fewer disruptions to work
        
        Establish team relationships
        
        Disadvantages
        
        Possibility of learning bad working habits
        
        Trainers may lack the best training skills
        
        Trainers may not be able to work properly
      - Off the Job
        
        Learn from specialists from third party (e.g. university, speakers)
        
        Advantage
        
        Expert expertise
        
        Wide range of training
        
        No distractions
        
        Networking
        
        Disadvantage
        
        Expensive
        
        Loss of output
        
        Skills may be irrelevant
      - Cognitive
        
        Advantages
        
        Improves brain function (memory, reasoning, etc.)
        
        Knowledge may apply to a wide variety of situations
        
        Disadvantages
        
        Cost
        
        May not be immediately practical/applicable
        
        Theoretical training in the hopes of improving overall intelligence
      - Behavioral
        
        Practical training in order to improve employee attitudes/behaviors
        
        Disadvantages
        
        Costly
        Difficult to track progress
        
        Advantages
        
        May make for more competent and assertive employees
        Improves customer and intra-company relations
  - - - employment sector
      - ageing pop
      - labour supply
    - - adv
        
        increased flexibility for btoh
        
        company onnly needs to train core employees
        
        more autonomy exercised
      - disadv
        
        investment in ICT
        
        employees are harder to control
        
        less job security
  - - - company must hire innovative ppl and foster the env for innnocation
      - involves trainning and dev costs
      - innvation also affects HR itself (outsourcing, off shoring, shamrock org)
    - - HR mnsut maange cultural diversity within the company
      - need to rais awareness on cultural differences
    - - follow antidiscrimination laws
      - equal pay
      - health & safety at work
  - - - Issue advisory letter
      - Counselling – strategies for improvement
      - Dialogue concerning consequences
      - Dismissal and Redundancies
      - Monitor (paper trail)
    - - Must have valid reason which is included in the contract
        
        Otherwise, unfair dismissal – company may be sued
      - Valid reasons include:
        
        Employee incompetence or misconduct
        
        Breach of legal requirements/contract
    - - Occurs when there is a change in company structure, downsizing, etc.
      - Company cannot afford to pay employee or job stops existing
        
        Company cannot afford to pay employee or job stops existing
        
        Voluntary – employee volunteers to be made redundant in exchange for a redundancy package (compensation)
        
        Involuntary – may be done through LIFO or retention by merit
  - - - Transferring the internal business activities to an external firm
      - e.g. business outsources bookkeeping duties to accounting firms
      - Reasons
        
        Activities are not the core function of the business
        
        Business lacks the specific skills
        
        Cost reduction
      - Adv
        
        Better focus on core activities
        
        Helps reduce production and labor costs
        
        Ensures high quality standards
      - Disadv
        
        Requires effective two-way communication, coordination and mutual trust
        
        Subcontractors need to be monitored and managed properly
        
        Quality inconsistency
        
        Possibility of unethical practices
    - - Transferring of internal business activities overseas
      - Usually done in countries with low minimum wage
      - Reasons
        
        Cut down labor costs
        
        Enter new markets in growing countries
        
        Overcome political limitations and regulations
      - Adv
        
        Reduce labor cost
        
        Help the business expand and gain exposure
        
        Business has access to large talent pool
        
        Stimulate host country’s economy (job opportunities, trade, etc.)
      - Disadv
        
        Language and cultural barrier
        
        Time difference
        
        Communication
    - - Bringing back offshore/outsourced personnel and services back to the original location
      - Reasons
        
        Foreign labor costs are increasing
        
        Problems with delivery/logistics
      - Adv
        
        Greater control
        
        Increased proximity to customers/shorter supply chain
        
        Product quality may increase
      - Disadv
        
        May still be more costly
        
        Local country may lack the labor supply
- - - - By area: geographical or regional state
      - By function: production process (e.g. editing, printing, sales, etc)
      - By product or activity: organizing according to the different products made
    - - Span of control
        
        Factors
        
        Manager’s experience, competence, traits
        
        Nature of management styles (amount of control needed)
        
        Skills and dynamics of subordinates (better team, less people)
        
        Nature of work
        
        Type of production method used
        
        Affects whether an organization is wide/flat or narrow/tall
        
        Wide/flat organizations – wide span of control
        
        Direct communication between different levels (fast and accurate)
        
        Cost control (less managers needed)
        
        Delegation is more important
        
        Longer decision making
        
        Eliminate feeling of alienation of workers from senior management
        
        Narrow/tall organizations – narrow span of control
        
        Easier to control smaller amount of subordinates
        
        May be more productive/efficient (team cohesiveness and specialization)
        
        Fast communication within team
        
        More costly (more managers needed)
        
        More motivation for employees – many promotion opportunities
        
        Refers to the number of people who are directly accountable to a manager
    - - Visual representation of business – see main line of communication
      - Shows promotion prospects
      - Shows immediate superior for clear communication
      - Shows employees their role in the business
      - Shows who to pass info to given a problem
  - - - Project-based (or matrix) organisation temporary structure which is created to facilitate the execution of a specific project. It can exist within all types of organisations.
        
        Shamrock organisation
        The shamrock model is intended to plan for complicated issues like greater external labour flexibility, legal dilemmas due to a change in employee numbers and stressful work environment due to dismissals and redundancy all while practising labour flexibility.
        
        3 groups of workers and provides greater flexibility.
        
        Core workers: core managers, technicians and employees who are necessary for the business to fulfill its core mission and deliver on its Unique Selling Point (USP).
        
        Contract employees: activities that are not at the core of the business but which are nevertheless necessary. These activities should be sub-contracted out to specialist businesses (for example, many businesses subcontract payroll services out to special contractors).
        
        Temporary workers: They constitute a flexible workforce composed of part-time, temporary and seasonal workers.
        
        Advantages
        
        Reduction of unprofitable products and activities
        
        Attention to efficiency, lower cost and productivity
        
        Flexibility at scaling up or down of operations
        
        Disadvatages
        
        Contractors have their own oversight, monitoring and overheads
        
        Communication barriers may cause delay of projects
        
        Priorities of contractors and temporary workers may be different from those of the core staff