AS level business unit HRM

1. Unit 2 busss
Revision hrm bruhhh

2. HRM: effective management of employees so that they help
gain competitive advantage
Workforce planning = workforce audit; no. employees required; skills required
- Forecast demand
- Productivity level
- Objectives
- Changes in laws
- Labor turnover and absenteeism rate

3. Labor turnover = no. employee leave in 1 year / average people
employed
Pros:
- Low skilled staff may leave -> create space for better carefully selected workers
- New ideas and practices brought in
- If business plan to reduce employee, then great
Cons:
- Cost of recruiting, selecting and training new staff
- Poor output level when vacancy
- Not good for worker-customer relationship -> lack loyalty
- Difficult for team spirit

4. Job description: list of key points about the job, stating task and responsibility
Personal specification: list of skills, qualities, qualification that successful applicant must have
Application form: set of questions for candidate to give details to employer
CV: detailed document highlight professional and academic achievement, work experience and
award
Employment contract: legal document sets out term and condition of a job. (responsibility, working
hours, holidays, benefits -> job security

5. Internal recruitment (recruiting existing employees for other
jobs)
Pros:
- Save recruiting and induction training cost (save marketing and recruiting agency cost)
- Know the culture and operation
- Quicker recruitment
- Internal staff career structure and chance to progress
Cons:
- External brings in new ideas and practices
- No wider choice of potential applicants
- Resentment if colleagues is promoted not them
- Loss of higher standard applicants

6. Employees morale: outlook, attitude, level of satisfaction at work
- Motivation -> productivity -> output -> econ of scales / competitive advantages
- Low labor turnover -> save recruitment and training cost -> retain more profit -> research and dev
Welfare: health, safety, level of morale at work
- Healthy -> more days at work -> more output -> if marketing team done great then more sales ->
market share
- Safety -> sense of security -> less chance of industrial action -> better brand image
- Mental health -> less stressed -> better attitude -> better customer services -> u know what
happen next hehe
Work-life balance:
- Less stressed
- More efficiency
Advice, counseling, support & improve working
condition -> increase welfare -> high morale -> loyal ->
labor turnover low & productivity increase ->
competitive advantage

7. Equality: everyone treated the same
- High employee morale and motivation
- Good reputation
- Measure performance based on achievement, not discrimination
Diversity:
- Bigger market share as diverse customer want to work with diverse sales force
- Increase creativity as different background has different approaches
- Cultural awareness, foreign market knowledge well understood
- Diverse language skills -> sell internationally

8. Induction: introduce people, internal structure, procedures, layout of premises, health and safety
issues
On the job training: instruction at place of work on how a job should be carried out; watching and
working closely (cheaper than sending recruits on external training courses)
Off the job training: training undertaken away from place of work (training center, college; create
new ideas, expensive but required if no one has degree or technical knowledge.
Employee appraisals: annually; assessing effectiveness of employee based on pre-set target

9. Coorperation between management and workforce
- Fewer days are lost due to industrial action
- Changes are understood and accepted better
- Contribution are recognized and pay levels reflect those
- Agreement on more efficient operations
- Workers’ practical insights
Trade union: organization where memberships are workers. Made to
protect workers
- Engage in collective bargaining: negotiate terms of employment for workers -> higher pays ->
better working conditions
- Collective industrial action more effective than single
- Provide legal support for unfair dismissal or poor working condition
- Put pressure that legal requirements are met

10. Collective bargaining:
- Business only have to deal with one representative not every employee
- Workers don’t feel resentment from 1 get pay better
- 2 ways communication with workers and trade union
- Impose discipline on ones who want to strike to disrupt business

11. Employees MOTIVATEDDD
Pros:
- Low labor turnover -> save recruitment and training cost; team spirit and others job security
- High productivity -> competitiveness
- Workers offer suggestions -> business achieve obj
- Work hard to seek promotion -> productive -> output
- Low absenteeism -> more output and less vacancy
- Accept responsibility -> effective workforce

12. Human needs (not Maslow shit)
• Social connection
• Challenge
• Significance: recognition
• Certainty (security)

13. Taylor scientific method
- Select worker
- Observe and take note
- Record time
- Identify fastest method
- Training
- Supervise
- Pay on each unit (piece rate)

14. Mayo (Hawthorne effect)
- Change in working condition and pay level has little effect on productivity
- Advice, consulting, counselling help improve motivation
- Working in team and develop team spirit help productivity
- Giving workers own control of their lives -> motivation
- Groups establish own targets and influenced by informal leader

15. Herzberg (2 factor theory; hygiene factor)
Hygiene factors:
- Working condition
- Policy
- Salary
- Relationship
Motivator:
- The work itself
- Achievement
- Recognition
- Advancement
- Job enrichment (aims to use full capability of workers by giving opportunity to do hard shit)

16. Maslow and hierarchy of needs
Self actualization (challenging work -> sense of achievement, opportunity to develop)
Esteem needs (recognition, status, respect)
Social needs (trust, friendship, belonging to a group)
Safety needs (welfare, job security)
Physical needs (enough money to pay for basic)
Cons:
- Not everyone has same needs
- Money for physical but also for status in esteem
- Difficult to identify the degree each need has been met and which current level
- Self actualization never permanently achieved (always need challenging work)

17. McClelland motivation needs theory
• Achievement motivation
- Challenging
- Advancement
- Feedback
• Authority/power motivation (desire to control other ppl)
• Affiliation motivation (connection)
- Relationship
- Interaction

18. Vroom expectancy theory
Valence: desire for money (extrinsic) or satisfaction (intrinsic)
Expectancy: degree to which people believe that put effort = pay accordingly
Instrumentality: confidence of employee that they will actually get what they desire, even if it has
been promised by managers

19. This is easy to calculate and the worker
knows how much money they will make.
This system takes time to fill out the
timesheet and supervision
Offers some security Good and bad workers get paid the same
amount.
Different rates for different types of workers No incentive to increase output as pay is
not linked to output
Labor cost per unit depend on output
Time based wage hour (when output is not easy to measure and
quality is more than quantity)

20. Each employee is paid a base rate and then
extra depending on how many products
they made.
Workers focus on quantity not quality.
It encourages employees to work fast and
increase output
No security over level of payment, stressed
trying to earn more
Easy to calculate labor cost per unit Many job can’t be measured
Piece rate: payment to a worker for each unit produced (output
easy to measure, keep unit cost low)

21. Salary: annual income paid on monthly basis (status and
security are important motivators)
Security of pay Not directly linked to output ->
complacency
Different salary for different grade of
workers
Low achievement and motivation if
effort not checked regularly with
appraisal
Suitable for jobs that is not
measurable
Fixed for one year so easy to forecast
cost

22. Creates incentive to increase sales Discourage team-work
Addition to basic salary so offer security Lead to pressurized selling which damage
customer relationship
Commission: payment to salesperson each sale made

23. Paid to individuals for outstanding work or
team reaching targets -> recognition
Cause resentment if bonus is not received
Creates incentive to do well Damages team spirit
Addition to basic salary -> security Reduce motivation if no bonus are paid
Bonus payment: payment addition to contracted wage or salary
(business want to make one-off payments, want to reward)

24. Individual bonus for meeting targets
encourage workers to work hard
Requires frequent target setting and
appraisal reviews
Target setting form part of objectives to
meet company’s aim
If bonus is low, not motivated
Addition to basic salary -> security Managers might show favoritism by giving
generous bonuses
Performance related pay: bonus scheme to reward employees for kinda good
work performance (encourage target setting, can’t measure output easily)

25. Aims to increase commitment to make
business profitable
Might small proportion so not motivating
Lead to suggestions for cost cutting and
ways to increase sales
Shareholders not agree as reduce profit for
them
Reduce retained profit for expansion
Profit sharing: bonus for employees based on profits of business (want to increase
worker focus on business profits for cost cutting and revenue increasing ideas)

26. Reduce conflict of objectives between
owners and workers
Small number of shares so not motivating
Encourage increased sense of belonging and
commitment
Shares might be sold so no long term
commitment
Workers participate in decision making Managers often receive more shares so
resentment
Share-ownership scheme: a scheme that gives employees shares in company or allows to buy
shares in discount (managers need to increase commitment in business, want to encourage loyalty
in every worker)

27. Job rotation: allows employees to switch from one job to
another
Pros:
- Relieve boredom
- Multi-skilled -> flexible
- Workers able to cover if others absent
Cons:
- Limited in scope than job enrichment
- Does not increase empowerment or responsibility
- Don’t give complete unit of work

28. Job enlargement: increase scope of job by increasing load of
tasks (may as a result of shortage)
Not likely to lead to long term job satisfaction unless job is more interesting or challenging. Just
increasing quantity of work
Job redesign: restructuring a job to make the work more
interesting, satisfying and challenging
Closely linked to job enrichment, involve employees’ input and agreement. Journalist do IT shit

29. Job enrichment: reduction of direct supervision, more responsibility
and decision making authority, opportunity to do challenging shit
(managers delegate more)
Pros:
- Complete unit of work -> contribution recognized -> more challenging work offered
- Direct feedback, two way communication, awareness of own progress
- Challenging tasks are offered where training is required -> status, recognition
Cons:
- Lack of training and experience (job too hard) -> demotivating
- Employees think managers want them to do more work
- Reduce control which managers may think hard to do

30. Training and development
Pros:
- Improving and widening skills -> flexible
- Increase status -> access to challenging, better paid jobs
- Developing and encourage to reach full potential -> self actualization
- Incentive for employees to stay at company as they feel recognized and appreciated
Cons:
- Training can be expensive
- Take employees away from work -> other have to cover
- Employees may leave the business as they become better skilled

31. Teamwork
Pros:
- Teams are empowered and can make decisions (job enrichment example)
- Workers don’t want to let others down so low absenteeism
- Social and esteem needs are met
- Motivated -> productivity & low labor turnover
Cons:
- Not everyone is effective working as a team (training sometimes needed, people left out)
- Develop values and attitudes that conflict with business. Will need clear goals
- Teamwork require training to improve flexibility
- Disruption to production as teams establish themselves and become arrogant shit

32. Empowerment: giving skills, resources, authority so worker can
take decisions
Pros:
- Quicker problem solving, respond immediately without managers
- Higher motivation and morale as challenging work and recognized
- Involvement and commitment improve two way communication and reduce labor turnover
- Managers can focus on bigger problems
Cons:
- Lack experience increase risk, training needed
- Reduced supervision lead to poor decisions
- Lack of coordination, different groups, different approaches to problems.
- Employees reluctant to accept responsibility

33. Quality circles: group of five to ten who have experience and
skills sit down to solve problem
Pros:
- Have hands on experience -> best solutions
- Results presented to manager and most successful idea will be adopted across whole org
- Effective method allowing participation of all employees.
Cons:
- Time consuming
- Not all employees want to be involved
- Don’t have management power as manager choose most successful ideas

34. Management

35. Fayol (not Puyol)
- Planning
- Organizing resources to meet objectives
- Commanding, directing and motivating employees
- Coordinating activities
- Controlling and measuring performance against targets

36. Mintzberg (bros of Herzberg)
• Interpersonal roles (dealing with and motivate employees)
• Figurehead: symbolic leader of org (opening new factory)
• Leader: motivating, selecting, training managers and workers
• Liaison: linking leaders of divisions and businesses (leading meetings w other org)
• Information roles (acting as source, receiver and transmitter of information
• Monitor: collect data relevant to business operation (attending conferences, research groups)
• Disseminator: sending information to relevant people (communicating with staff)
• Spokesperson: communicating info about business to external (presenting reports)
• Decisional roles (taking decisions and allocating resources to meet objectives)
• Entrepreneur: opportunity to develop (
• Disturbance handler
• Resource allocator
• Negotiator

37. • Autocratic (managers take all decision with no or little input from others)
• One-way communication
• Quick (life or death situation like army)
• Demotivating staff
• No insights from workers
• Paternalistic (managers is in better position and knows what is best; Father figure)
• Concern about morale but believe they know the best -> some consultation
• Leader still takes all decision -> worker dissatisfied because no real influence
• For inexperienced workforce

38. • Democratic (encourage active participation of workers in taking decision)
• 2 way communication
• Worker give insights
• Not all issues can be shared
• Too many opinions -> time consuming
• For skilled workers who expect an input (esteem and self-actualization) or new way of
thinking in business is needed
• Laissez faire (leave most decision taking to employees)
• Delegate almost authority and give freedom
• Lack feedback & interaction
• Some people prefer structured working style
• For highly skilled, researchers or when managers lazy

39. McGregor theory X and Y
X managers:
- Dislike work
- Lazy and avoid responsibility
- Not creative
Y managers:
- Enjoy work
- Accept responsibility
- Creative
Workers behave based on what managers think they are. If think X then
they demotivated and become X