Notes

pack 1
human resources - department in charge of all employees and employee related operations
objectives:
motivational benefits
measure and review performance
improve business performance

number skills and location - it is essential that businesses have the right number of employees at the right place with the right skills
training - where an employee gains skills/knowledge in order to increase performance
talent development - recognising certain high performing employees in order to retain them in the business
diversity - allows the company to draw in the widest pool of staff increasing the chance of the most talented being chosen
employee engagement - the connection between a business' employees and its mission objectives employees are involved and can have an impact on the business
alignment of values - values of employees match values of the business

hard HRM;
employees seen as a resource
short term, hired and fired as necessary
paid as little as possible
little control
downward communication
autocratic leadership
motivated by finance

soft HRM
sees employees as more important than resources
long term view using workforce efficiently
manages consult with employees
workers have control
training
internal recruitment
democratic leaders
motivated by empowerment such as delegation of responsibility

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pack 2
human resource data;

labour productivity - output over time period / number of employees

labour cost per unit - labour costs / units of output

employee cost as a percentage of turnover - employee cost / turnover x 100

labour turnover % - number of staff leaving / number of staff employed x 100

human resource planning - assessing the current and future capacity of the business workforce and sets out the actions necessary to meet the future HR needs

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pack 3

organisational structure;
show the chain of command (who they report to and who they are responsible for)

functional structure - organisational structure where each department operates separately under one leader at the top

----------------------------- CEO----------------------------
I I I I
marketing finance operations HR
I I I I
STAFF STAFF STAFF STAFF
STAFF STAFF STAFF STAFF

advantages
members of each department can share knowledge with each other
specialisation of workers

disadvantages
may be less responsive to changing business environment


regional structure - activities grouped according to product or service

----------------------------- CEO----------------------------
I I I I
product A product B product C product D
I I I I
STAFF STAFF STAFF STAFF
STAFF STAFF STAFF STAFF


advantages
workers have specific expertise for that product or service
clear product focus
can respond to customer needs rapidly

disadvantages
lose overall sense of business
divisions may compete
duplications of effort, less efficiency

regional structure - activities grouped by geographical region


----------------------------- CEO----------------------------
I I I I
region A region B region C region D
I I I I
STAFF STAFF STAFF STAFF
STAFF STAFF STAFF STAFF

advantages
more in depth knowledge of area , better targeting of customers
competitive advantage as they can respond quicker to changing business environment

disadvantages
conflict within local and central management
duplication of jobs

matrix structure - individuals work across teams and projects

----------------------------- CEO----------------------------
I I I I
project A manager production manager finance manager marketing manager R&D manager
I I I I
project B manager production group finance group marketing group personal group
project C manager production group finance group marketing group personal group

advantages
improved communication and sharing of ideas
more adaptation to changing markets and consumer needs

disadvantages
can take time for employees to adapt
divided loyalties
lacks clear line of accountability
difficult to communicate

span of control - number of subordinates directly responsible to a manager

wide span of control:
reduced cost , less managers needed
more workload
allows more autonomy for workers

narrow span of control:
tighter control or supervision
easier communication
more expensive

tall structures:
expensive
slow communication
less responsive to change
good promotional aspects

flat structures:
easier communication
cheaper
few promotional aspects

delayering - removing a layer of hierarchy , reduces employee cost ,speeding up decisions and communication, loss of experienced staff, higher workload

delegation - passing of authority down the organisation structure
reduced manager workload
improved employee motivation
develop subordinates
lack of skill/experience
increased employee workload and stress


centralised organisation - type of business organisation where decisions are made at the centre of the organisation and passed down the chain of command
senior managers have control over decisions and budgets
increased spread of decision making
greater consistency
bulk buying
more layers of hierarchy

decentralised organisation - type of business organisation where decisions are pushed down the hierarchy and away from the centre of the organisation
local managers
higher morale
more flexible decisions
reduced workload for senior managers
loss of control for managers
local managers may fail to see bigger picture
hard to achieve tighter financial control

reasons to change organisation design:
change in business size - if a business expands product range they could benefit from product based or matrix
change in business performance - a business performing poorly may have to delayer in order to cut costs
change in external environment - may have to change organisational design in order to best fit environment


human resource flow - the movement of employees through the organisation including recruitment, what happens within the organisation and when they leave

human resource planning - assessing current and future workforce capacity
I
human inflow - recruitment, selection, induction
I
internal human inflow - training, promotions, redeployment
I
human outflow - redundancies, dismissal, retirement


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pack 4

theories of motivation Taylor
scientific management means the process of a business decision making based on data that are researched and tested in order to improve efficiency

work studies - managers identify the best way to do a task
division of labour - breaking down production into individual tasks
training and equipment - workers should be given appropriate training and equipment in order to complete tasks
piece rate payment - paid per unit produced

evaluation
workers disliked approach as it was boring
firms could afford to lay off workers as productivity increased so less job security
increased strikes

Maslow
hierarchy of needs

Maslow put forward that there were five levels of needs
he implied that managers needed to start from the bottom in order to then go to the next layer of motivation

self actualisation - achieving potential ability and purpose
self-esteem - satisfying needs of ego and respect
social belonging - satisfying social needs such as friendship
safety needs - satisfying needs of safety, physical and emotional
physiological needs - food, water, shelter and sleep

Herzberg's theory
he believed in his two factor theory

hygiene factors - aspects of work where if present prevent employees being dissatisfied
wage and salary levels
safe working conditions
supervision levels
interpersonal relations
company policies