- Human Resource Management
2.4 motivation
2.3 Leadership and Management
Functions and Evolutions of Human Resource Planning
Key functions of management:
- Planning: Setting out how to achieve long term and short term goals
- Coordination of activities within a business, ensuring a smooth and efficient process allowing for the successful running of the company
- Commanding employees to ensure work is done at a high standard
- Controlling employees to ensure all objectives of the company are met
- Organization of the company, ensuring that resources are used efficiently and appropriately
Management vs Leadership
Motivational Theories
John Stacey Adams
Pink's theory
Frederick Herzberg
Maslow's hierarchy of needs
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2.2 Organisational Structure
Staff/ Labour Turnover
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There are characteristics that...
- Cause job dissatisfaction: hygiene factors
- Elicit job satisfaction: motivators
Organizational chart
Management vs Leadership
- Management follows culture of organisation
- Management manages others, leaderships inspires others
- Managment follows on the present, leadership focuses on the future
- Leadership mainly concerned with the people, managment focuses on the operational objectives
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Ways to structure a business
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By area: geographical or regional state
By function: production process (e.g. editing, printing, sales, etc)
Workforce/human resource planning
% of workforce thatt leaves the company in a time period
Process of anticipating current and future demand for workers in both the short and long term
low turnover = good workforce plannning & recruitment
High turnover = incompetent employees & poor job satisfaction
By product or activity: organizing according to the different products made
Lessens hiring mistakes at the cost of time and money
A workforce plan includes
Reasons for leaving: CLAMPS (Challenge, location, advancement money, pride, security)
and poor morale
Shows different functional departments, the chain of command, the span of control, and channels of communication.
Careful consideration of current abilities and what will be needed in the future (short-term or long-term)
(# of leavers/ total # of staff) x 100
Identifying gaps and considering ways of addressing these
Changes in Organisational Structure
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
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Noting any training needs
Developing training, recruitment and other personnel policies (e.g. appraisals, employee welfare)
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Role of Organizational Chart
Changes in organisational structure happen because of the dynamic global business environment, internal and external factors. Mergers and acquisitions also change the marketplace, and changes in the technology sector
Visual representation of business – see main line of communication
Autocratic:
- leaders are authoritative, formal systems of command and control
- they avoid discussions as employees are not involved in decision making
- delegation and consultation are never existent
- communication is top down and one way
- most likely used when employees are unskilled
Shows promotion prospects
Shows immediate superior for clear communication
Considers labour demand of an organization, which depends on:
Shows employees their role in the business
Situational Leadership
The ability of a leader or manager to adjust their style of leadership to fit the task or situation that they find themselves in, characterised by adaptability when faced with difficult or challenging scenarios.
Shows who to pass info to given a problem
Laissez-faire
Stemming from the French term 'hands-off', it is a leadership style that is characterised by a lack of interference from the management of an organization, leaving employees to figure out how to manage the running of the business with set guidelines.
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
Capital Intensity (i.e. use of machinery)
Recruitment Process
Work study (time and motion study or efficiency studies)
Job Analysis
People have 5 basic needs:
Physiological/basic
Security/safety – predictability and order
Social/love/belonging
Esteem/ego – recognition and self-respect
Self-actualisation
Needs must be satisfied from the bottom up (basic to self-actualisation)
Job description
Satisfied by payment
Person Specification
Span of control
Best number of people to complete a job efficiently
Derived demand (from forecast output)
Satisfied by job security, maternity leave, fringe benefits
Demand for labor depends on demand for product
Natural wastage (aging/retirement)
Paternalistic:
- see the workforce as an extension of the family so make decisions that they perceive to be in the interest of their employees
- often effective in family-run businesses
- generally used in organisations where the leader is highly experienced
- close supervision of employees
Satisfied by teamworking, anti-discrimination
Hygiene needs:
- salary
- peer relationships
- company policies and administration
- physical workspace
- security
Motivation needs:
- personal growth
- achievement
- advancement
- recognition
- work itself
Satisfied by training and development, delegation, promotion
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Factors
Affects whether an organization is wide/flat or narrow/tall
Refers to the number of people who are directly accountable to a manager
Skills & training req for the job
Satisfied by giving freedom to employees
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qualifications & personal qualities needed
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
rewards needed to recruit & rtain the job holder
Profiles ideal candidate
Democratic:
- involve workers in decision making, i.e. consultation and collaboration
- leaders encourage discussion and employees participation
leaders delegate authority and empower their staff - likely effective when used with skilled, experienced and creative employees
Wide/flat organizations – wide span of control
Factors affecting workforce plan
Narrow/tall organizations – narrow span of control
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Outlines details of the job
Supply of labor
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
element of flexibility
Limitations
Needs cannot be quantified
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
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.
Ignores individuality of needs
Flexibility of internal workforce
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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
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Cost of living
Cost and availability of transportation
Rate of unemployment
Job Advertisement
External
Internal
Job advertisement
Need for TRAPS: Truthful, relevant, accurate, positive, short
States the importance of intrinsic motivation
Application process
Purpose
Autonomy
Resume
Government
Finances
Structure of business
Effectiveness of communication
Morale of workforce
Leadership style of managers
Need for change/reaction to change
cover letter
applicationn form
Demographic changes
Labor Mobility
Women in workforce
Workforce flexibility, skills, and education
Life expectancy and retirement age
Net migration rate
Net birth rate
Selection process
3 Factors that impact intrinsic motivation
Screen applications & shortlist suitable candidates
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.
interview shortliested candidates
Give employees control over when, how, and what they do and whom they do it with
Perform testing
Mastery
Check each shortlisted candidate's references
Sense of progress in work and ability
Tasks must not be too hard or too easy to foster improvement without causing boredom or frustration
Definition: employees are satisfied when they perceive that there is equity between the work they put in (inputs) and the benefits they receive (outputs
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Appraisals
Contributing to a greater cause
Purpose and vision must be communicated
Annual formal assessment of performance judged against pre-set criteria
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
reasons
assess performance in line iwth job desc and targets
reflect on performance
Training
praise good performance
Taylor's theory of motivation
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Set new goals/ target
Process of providing opportunities for workers to acquire skills and knowledge
Training is the improvement of task-specific skills
Development involves enhancing personal skills that improve workforce flexibility
Benefit
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Appraisal methods
Essay
rating system
peer
Costs/Cons
upwards
MBO (management by objectives)
formative
summative
360 degree
Improve efficiency and effectivity
Less wastage
Higher morale
Adapt to change easily
Flexible workforce
self appraisal
Steps
Look at staff records & reports
Cost
Appraisal meeting
appraiser writes a report
Appraiser and appraisee sign final report
Employees may leave since they are qualified for better jobs
3 groups of workers and provides greater flexibility.
Division of labour and specialisation
Counter signature of manager
Differentiated piecework
Principle of scientific management
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.
Rewards
Types of training
Induction
Changing employment patterns & practices
factors
employment sector
ageing pop
labour supply
flexible work structures
adv
increased flexibility for btoh
company onnly needs to train core employees
more autonomy exercised
Advantages
disadv
investment in ICT
employees are harder to control
less job security
Disadvatages
Introduction to company policies, general info
May involve meeting other personnel, touring the premises, etc.
Advantages
Disadvantages
Establishes expectations
Understand company culture
Morale booster
Innovation, cultural diff, ethical considerations
Contractors have their own oversight, monitoring and overheads
Time consuming
Personnel have to be freed to work on the induction
Info overload
innovation
Communication barriers may cause delay of projects
cultural diff
ethical considerations
Priorities of contractors and temporary workers may be different from those of the core staff
On the job
Reduction of unprofitable products and activities
follow antidiscrimination laws
equal pay
Attention to efficiency, lower cost and productivity
Financial
health & safety at work
Non-Financial
Flexibility at scaling up or down of operations
Learn from coworkers by experience
May involve being mentored by or shadowing senior managers
Advantages
company must hire innovative ppl and foster the env for innnocation
Disadvantages
Commission
Profit-related pay
Wages (piece work)
Performance-related pay
Wages (time rate)
Employee share-ownership schemes
Salary
involves trainning and dev costs
Perks or 'fringe' benefits
innvation also affects HR itself (outsourcing, off shoring, shamrock org)
Relatively cheap
Relevant job-specific skills are learned
Fewer disruptions to work
Establish team relationships
HR mnsut maange cultural diversity within the company
job enlargement
need to rais awareness on cultural differences
job enrichment
Possibility of learning bad working habits
Trainers may lack the best training skills
Trainers may not be able to work properly
Off the Job
empowerment
team building
Culture and Motivation
Learn from specialists from third party (e.g. university, speakers)
Advantage
Disadvantage
Expert expertise
Wide range of training
No distractions
Networking
Impact of culture: job satisfaction, motivation, productivity
Expensive
Loss of output
Skills may be irrelevant
a non-financial motivator which involves a line manager giving their subordinates some autonomy in their job and the authority to make various decisions
Cognitive
Advantages
attempting to increase the scope of the job by broadening or deepening the task undertaken
Disadvantages
Theoretical training in the hopes of improving overall intelligence
Cost
May not be immediately practical/applicable
Improves brain function (memory, reasoning, etc.)
Knowledge may apply to a wide variety of situations
Behavioral
The effective manager and leader needs to be open-minded, inquisitive, caring and complimentary, and ready to appreciate that different types of reward may motivate different employees
aims to use the full capabilities of workers by giving them the opportunity to more challenging and fulfilling work
Practical training in order to improve employee attitudes/behaviors
Disadvantages
Criticisms
Advantages
production is organised so that groups of workers undertake complete units of work
May make for more competent and assertive employees
Improves customer and intra-company relations
Costly
Difficult to track progress
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Repetitive and monotonous work – job dissatisfaction
Non-physical contribution may not be quantified
Ignored non-financial motivators
fixed annual sum that is usually paid over 12 equal monthly instalments
Payment based on standard level of output
Paid extra for output beyond that level
Workers are motivated by cash
Productivity can be improved by relating output/productivity to pay
payment made in weekly sums based on the number of hours one works
Standardization of work practice (seen in production lines)
Workers should be chosen for their job based on ability
workers' pay is based on the number of units or 'pieces' they make or complete
Dismissals and redundancies
Most frequently seen in sales work, getting paid a percentage of their total sales
If employee performance is below par:
receive a percentage of the profits made by the company
worker can receive additional money (bonuses) for reaching pre-agreed objectives
Issue advisory letter
Counselling – strategies for improvement
Dialogue concerning consequences
Dismissal and Redundancies
Monitor (paper trail)
employees are given shares of a company as a reward
Dismissal (by the business)
paid to the employee in addition to their salary
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
Redundancy
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
Outsourcing, offshoring, and reshoring
Outsourcing/subcontracting
Offshoring
Reshoring
Bringing back offshore/outsourced personnel and services back to the original location
Reasons
Foreign labor costs are increasing
Problems with delivery/logistics
Adv
Disadv
Greater control
Increased proximity to customers/shorter supply chain
Product quality may increase
May still be more costly
Local country may lack the labor supply
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
Disadv
Better focus on core activities
Helps reduce production and labor costs
Ensures high quality standards
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
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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