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Summary Section 6: Human resource decisions
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AQA business A level, section 6, HR decisions A summary of key concepts, ranging from improving organisational design and motivation, to representation and HR flow.
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6 HUMAN RESOURCES Delayering On the job training = learn by observation- Removing parts of hierarchy (middle managers) = flat - Cost effective, productive, job specific
Objectives - Lower salary costs, junior employees enhanced roles - Ability of trainer, bad habits, disrupt
- HRM = maximum staff benefit, minimum cost - ST cost of retraining, stress with large control
- Hard HRM = resource, ST, money, demotivating Off the job training
- Soft HRM = asset, LT, development, morale, valued, Delegation - Range of skills, specialists, confident, new ideas
- Engage, development, train, diversity, align value - Pass down authority (power assigned to give orders) - Expensive, lost work time, induction still needed as n
- If costs too low = training, bonuses, hire more - Accountability, responsibility specific, leave for other job
- If costs too high = redundancies, no overtime, wages - Mutual trust, know S+W, interesting tasks
- Influences – culture, funding, laws, economy, tech - Less management workload, motiv, better resource use, Reasons for HR flow management
flexibility, local specialisms - Respond to change / restructuring
HR data - Depends on experience, workload on juniors, customer - New products / technology / legislation / demand
Labour productivity expectations, confidentiality, crisis situations - Redundancy if not manage surplus (job no longer exi
- Productivity = output per period / no employees - Influenced by culture, nature of task, structure (tall) - Redeployment – maintain motivation, morale, securi
- Recruit skilled, train, comms, incentives, motiv, - Improve – select most suitable, explained clearly keep corporate knowledge
leadership, technology, involvement - Ensures right number of employees where most nee
Centralised
HR decisions - Experience of decisions, consistent, coord EoS, no bias Influences on HR planning
- Labour cost per unit = labour costs / output towards department, big decisions quickly - Internal – corporate, marketing plans, production sty
Shows labour cost per output - No local knowledge, demotiv, react slowly to comp + finance, turnover, culture
- Labour costs as % of turnover = labour costs / rev x 100 trends, lack flexibility - External – employment legislation, new tech, migrati
Percentage spent on labour
Decentralised Job design
Absenteeism - Share authority, delegate power to regional managers - Roles, responsibilities, relates to others
- Absent = staff absent on day / employees x100 - Motivates, expert local knowledge, decisions fast - Optimise process, productivity, labour costs
- Reduce by flexi work, safe contidions, attend bonuses - Not have experience, inconsistencies, overall situation - Job satisfaction, responsibility variety
- Difficult same goal, diseconomies of scale, finance
Labour turnover - Effected by size, nature of task, culture, expansion Hackman and Oldham job characteristics
- LT % = no leaving / number employed x 100 Skill variety Motivati
Experience
- External causes – regional unemployment, firms Managing HR flow Task identity
meaningfulness
recruiting similar skills - Ensure right number of staff with right skills passing thru Task signif Satisfacti
- Internal causes – poor motiv, wages, promo, leadership, - Recruitment, training, promotion, redundancy, firing Autonomy Exp responsibility
comms, boring work, conditions, natural wastage - Predict how many workers needed – past data, manager High qua
- Lack loyal, lose staff trained, training + recruitment costs opinions, demand for product, LT/ST, tech Feedback Knowledge of results
- Recruitment cost, redesign, low productivity, low morale - Assess new worker supply – unemployment level, local ↓absent/tu
- Improved by exit interviews, selection procedure, induc infra attract people, competition recruiting
Motivation
Labour retention Process - Productive, achieve obj, loyal staff, lower turnover +
- LR % = no over a year / no employed at start x 100 - Vacancy, job desc, person spec, advertise (internal/ext), absenteeism, attractive for candidates, rep, comp ad
- Ability to keep employees, not want 100% = stagnant application, suitable, interview, appoint - Increase customer satisfaction if engaged workforce
- Higher the turnover, lower the retention - Job description = roles + responsibilities
- Improve induction, opportunities, inclusion - Person specification = qualities + qualifications Taylor
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