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Improving Human Resources - Coggle Diagram
Improving Human Resources
Setting Human Resource Objectives
Different types of objectives:
Employee Engagement: focused on employee engagement & involvement, involves listening to staff and involving staff in decision making processes.
Talent Development: businesses developing their current employees, support business future approach
Training
Diversity
Aligning Values: ensuring employees have similar values & beliefs to a business
Location & Skills: focus on number, skills and location of employees, determining the number of employees available and their skill set
Influences on HR
Internal
Objectives of the business
Availability of internal funding
Objectives of other business functions
External
Legal considerations
Technological advancements
Ethics
Improving Organisational Design
Job Design: an employer's creation and planning of a job considering the jobs aspects
This may include:
roles and responsibilities of staff
systems and methods used by an employer to carry out role
relationships between employer and other subordinates
Who can influence job design and why?
Business Objectives: all jobs within the business should contribute to the overall business objectives and be designed in a way to do so
Individuals: demotivated employees may cause problems with productivity, managers may use job design to increase motivation and increase productivity
Available Resources: Major changes to a business may require the support of additional resources of support such as labour and capital, this allows any change to be successful
Market Research: a change in external environment, jobs may be designed/redesigned to reflect demands of the changing environment
What approach may an employer take to job design?
Job Enlargement: when an employer increases the number of jobs an employee is responsible for in order to increase the challenge of their role, usually at a similar level to their OG duties
Job Enrichment: an employer provides an employee with jobs which are more complex than their OG duties. Usually done when considering the motivation & productivity of employees
Job Empowerment: when an employer gives an employee more control over their job, including the ability to decide the best way to fulfill duties
Job Rotation: an example of job enlargement, refers to an employer allowing an employee to move from one role or duty to another, regularly.
Hackman & Oldham Job Characteristics Model
5 Core Charateristics that motivate employees
Skill Variety: employees being given opportunities to use a range of skills as part of their normal duties and repsonsibilities
Task Identity: employees being given a sense of conclusion or completion
Task Significance: employees feeling as though their duties and responsibilities contribute to their overall business success, these first 3 factors will result in motivation
Autonomy, employees having some independence within their duties and responsibilities, will result in higher job satisfaction
Feedback: employees having received feedback , whether oral, written or verbal on work they've completed. Results in lower absenteeism and lower turnover
Organisational design: involves making sure that an organisation is designed appropriately to increase its chances of meeting its aims and objectives
Several factors considered:
Authority: linked to delegation. Authority can motivate and empower employees, increases productivity
Delegation: passing authority to employees further down the hierarchy
Spans of Control: number of people that report directly to a supervisor or manager
Tall Hierarchy
narrow spans of control, employees closely monitored
Flat Hierarchy
wide spans of control, hard to monitor employees
Hierarchies: levels and layers of management
Tall hierarchy
many layers, provide promotional opportunities for employees, but difficult for communication to pass
Flat hierarchy
few levels
Delayering: reducing the number of layers in the hierarchy of a business, usually by removing middle managers
Centralised & Decentralisation: the decision making power within the business and how this power is held by different individuals
Centralised
decision making power held by a small number of people
Decentralised
Decision making power distributed throughout business to staff with appropriate skills and expertise
Analysing HR Performance
Labour Turnover: the % of staff that leave the business per year
Total No. of staff leaving/average number of total staff X100
Average No. of total staff = No. of staff at beginning of the year + No. of staff at the end of the year
the higher the % , the higher the number of staff that have left, may be because: competitors offer higher wages/salaries or
low staff turnover means experienced employees stay, training and recruitment costs are low as fewer vacancies to fill
low staff turnover does mean that there are fewer opportunities of the business to recruit new, talent, skills and idea
Retention: the % of staff that stay at the business per year
Total No. of staff who worked at business for whole period/total No. of staff at beginning of period X100
Cause: business may pay higher salaries/wages than competitors, employees may also feel motivated, empowered and valued
Labour Productivity: a measure of units produced by an employee in given period of time
Total output/Total No. of employees
Employee Costs: level of spending on employees
Total employee costs/Total revenue X100
High %, managers may decide to reduce their total employee costs
Labour Cost per Unit: allows a business to calculate the cost of labour for every 1 unit produced
Total labour costs/Total units produced
may increase productivity so employees produce more, they can compare data from previous years, competitors or the wider industry
Increasing productivity/reducing employee costs would improve the labour cost per unit
Human Resource Management
Hard HR: employees are seen as resources to be used, they are closely supervised with little training given. They are usually not trusted either.
allows managers to retain full control of employees
does not allow employees to contribute to their full potential to the business
Soft HR: employees are recognised as an important resource, they are trusted and given opportunities to develop.
empowers employees, increases production and efficiency
gives employees freedom, mistakes more likely to occur
Human Resource Flow