Professional Documents
Culture Documents
HR supply is also affected by: Internal workforce (existing employees) if highly skilled and flexible, the need to hire is lowered Cost of living this may deter relocation Transport accessible areas tend to attract workers Unemployment Rate Population longevity can create an ageing population. Effects include: Increased dependent population those out of working age who are dependent on taxpayers Reduced labour mobility with a greater amount of elderly (who tend to be immobile) reduces international competitiveness Changing consumption patterns a predominantly elderly population creates opportunities to cater for their consumption Changing employment patterns an ageing population means firms are more likely to retain staff beyond retirement age due to labor shortage, some firms might even consider relocation (due to shortage)
Workforce Planning
This is the process of anticipating the current and future demand for workers in an organization (short-term or long-term): Short-term: existing and upcoming demand including hiring cover staff Long term: needs in the foreseeable future, e.g. Disney hired and trained employees two years before the opening of Disneyland Hong Kong Human resource needs requires consideration of labour demand, which depends on several factors: Historical data, from which we can identify trends e.g. labour turnover rates if a drop is predicted in the next year, HR can begin recruitment Flexibility and workloads, of staff helps determine demand capable staff can handle increased workload and skilled workers may be able to be reassigned rather than hire a new employee to fill a position Capital intensity, an automated business may be able to increase output without new workers by the use of capital goods Work study, a measurement tool estimating the most efficient number of staff to complete a task Derived demand, the need for labour in areas becoming increasingly popular Natural wastage, when an old employees position isnt filled Before recruitment, managers should undertake job analysis, detailing: The skills and training required to do the job Qualifications and personal qualities required to do the job The rewards needed to recruit and retain the post holder This document is useful later in recruitment and selection. The main six (acceptable) reasons that people leave their jobs are indicated by the acronym CLAMPS:
o Psychometric tests assesses personality, motivation and organization o Aptitude tests examining skills and abilities such as typing o Intelligence tests calculate mental ability and general knowledge o Trade tests specific skills such as news presenting o References are contacted to ensure applicants have been truthful o Contract of employment (to which employees are entitled by law) is given o Induction is undertaken to settle the new employee into the business
What to do
1. Prepare by researching the organization and becoming familiar with the position 2. Dress appropriately the give a good first impression 3. Practice interview skills to appear confident
Alec Rogers seven-point plan Physical make-up (appearance/manner) Attainments and qualifications General intelligence Specialty skills Interests and hobbies Disposition, outlook and temperament Circumstances working hours
What not to do
1. Be late, giving a bad first impression 2. Be critical of past employees or the businesses current state 3. Falsify answers that way be uncovered eventually
Munro-Frasers 5-fold grading system Impact on others; physicality Qualifications and training Innate abilities and aptitudes Motivation and success rate Emotional adjustment handle stress
External recruitment involves hiring new employees through: o Newspaper advertising Advantages Disadvantages o Specialist trade publications o Internet advertising o New workers o Time consuming o Commercial employment o Wider range of o Expansive agencies experiences o Headhunting (poaching) o Larger pool of o University visits applicants o Employee referrals
Appraisals
An appraisal is the formal assessment of an employees performance in fulfilling his or her job based on roles outlined in the job description. Reasons for appraisals include: o Assess performance in line with targets o Assist staff with reflection and improvement o Provide opportunity for praise o Identify barriers hindering performance o Identify training needs o Set new targets and goals o Aid professional development o Assess the suitability of pay rise and promotion o o o o Advantages Make changes progress Allow praise Constructive criticism Method for feedback o o o o o o Disadvantages Time consuming and costly Daunting experience Rather subjective Offense taken from comments Anxiety and stress Feedback must be confidential
Essay Appraisal The appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The essay method is flexible as it statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraisee. However, it is time consuming. 360-Degree Appraisal Job performance data is collected from peers, subordinates, line managers and other parties (customers) through questionnaires. This method provides practical feedback from a 360 degree scope. However, it relies solely on opinion rather than evidence and thus is not always suitable. Rating System An appraiser examines different components of a job and rates each part on a scale; e.g. poor performance outstanding performance. Almost any aspect of performance can be examined and are carried out in a standardized manner, making the result easy to compare and remain fair/equal. However, the criteria selected may not apply to all, resulting in inaccurate scores. Peer Appraisal Employees on the same level appraise one another. An advantage is that both parties are familiar with the role and difficulty of the job, but workers are often too reluctant to criticize each other and may just lie. Upward Appraisal An employee evaluated someone more senior. The technique is growing in popularity but both parties may be intimidated and reluctant with the subordinate fearful of being reprimanded and the manager feeling attacked by unhappy employees.
Management by Objectives An appraiser assesses the extent to which an employee has met their objectives if they are met then their job performance is satisfactory. MBO provides clarity about what is to be assessed. However, unrealistic targets create the faade that the employee is not trying or cannot complete given tasks. Self-Appraisal Employees appraise themselves based on set criteria, and are expected to be honest.
A senior manager may counter sign to approve the assessment If the appraisal rating is low: o An advisory letter can be sent to the employee o The employee may be counseled and given advice as to how to improve o If there is no improvement, consequences may be discussed o Performance will be closely monitored o If no improvements are made, action is taken toward dismissal
Training
Training is the process of providing opportunities for workers to acquire skills and knowledge. Some jobs require constant training others may only need basic training. Training can focus on job-related concepts or personal skills (assertiveness and stress-management). Objectives include: o To enhance staff efficiency and effectiveness o To improve quality of work by employees o To facilitate career and personal development of each staff member o To develop a multi-skilled and productive workforce o To help staff adapt to change Benefits include: o Targets met effectively, increase of quality o Less wastage, reducing costs o Higher morale less absenteeism and lower staff turnover o Good reputation attracts greater quality of workers
o Better levels of customer service o Employees adjust better to change and can cope with growth Drawbacks Include o Costs of training o Loss of productivity when workers are absent o Time consuming o No guaranteed improvement Induction Training Introduces new employees to an organization by introducing them to key personnel, touring the premises, learn about their duties and cover the company policies e.g. evacuation. Advantages Establishes good working habits Introduces corporate culture Settles workers in to contribute more promptly Morale and confidence is boosted Disadvantages o Time consuming o Key personnel must take time out of their schedules o May experience information overload
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On-the-job Training This is training carried out at the workplace, delivered by a colleague of manager. Junior managers may shadow a senior to observe their methods and learn through doing. o o o o o Advantages Relatively cheap Issues targeted directly Few disruptions Establishes colleague relationship Convenient location Disadvantages o Trainees may develop bad habits from unqualified trainers o Internal trainers may lack skill o Trainers must give of their time to conduct
Off-the-job Training This is carried out off site, and selected employees attend a course to attain knowledge that they are expected to share with their team members. Advantages o Experts provide training o Wide range of training (e.g. foreign languages) o No work distractions o Networking can take place Disadvantages o Very expensive o All skills may not be relevant o Newly skilled employees may feel to qualified for their position and leave to find a better position
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Telecommuting - working elsewhere and communicating through technology, often seen in banks, insurance firms, market research firms and airlines Advantages Accessibility for those in remote areas Suitable for parents No commuting costs/stress Autonomy for workers Reduced overheads Flexible hours for customers Reduced absenteeism Disadvantages ICT reliance disruption Social isolation and boredom Workers exceed work hours More distractions at home High equipment costs Specific employment profile (self-motivated etc.) Not always possible due to space
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Flexitime Staff work a core number of hours whenever they please, for example 8 hours Monday-Thursday and have Friday off Advantages Suitable to working parents (more time with children) Ability to break up work week, allowing for more recreation More rest = less stress and happier employees Workers have more time for appointments or further study More productive and well-rested employees a greater output Disadvantages Scheduling limitations hard to predict future free time Team projects may be hindered by absence Must balance times to ensure never short staffed Many employees may be absent on a busy day Scheduling can create conflict requires a fair system
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Portfolio Working one is employed to undertake multiple jobs simultaneously, in turn receiving a flexible timetable and variety in their career. However, jobs occur only when required and therefore, pay is insecure Part-time Employment Employees work part time for flexibility, and businesses hire part time workers as they cost less as they are entitled to lower remuneration and are easy to hire and fire. However, they can feel undervalued and show less loyalty to the business, affecting productivity and turnover
Summary
Problems as a result of poor human resource planning can be summed up in the five Rs: Recruitment (costs and time loss) Resources (time and money spent on personnel problems) Reservations (lower morale continual change in staffing) Returns (low return on input profit) Reputation (poor corporate image NOT employer of choice) There are four main measures of personnel effectiveness: o Labour turnover (resigned staff total staff) x 100 o Absenteeism (absent staff total staff) x 100 o Labour productivity (total output total staff) o Waste levels (waste total output) x 100
Managers Managers are responsible for a team of people and/or tasks. They are decision makers with responsibility for day-to-day implementation of the organizations policy. They assist and are accountable to the BOD. They take on tasks delegated to them by directors. Supervisors and Team Leaders These are junior managers, carrying out some but not all of the duties of a middle or senior manager. They are more likely to be involved in operational decisions. They have direct contact with the workforce for whom they are responsible. Other Employees (Operatives) Other employees will exist in a large organization, forming the majority of an organizations workforce. Therefore most org charts are wide based pyramids.
CEO
Board of Directors Management Supervisors and Team Leaders Other Employees
The Formal Organization: Org Charts
An organizational (org) chart is a diagrammatic representation of a firms formal structure. It shows four important features of a business: 1. Functional Departments marketing, production, finance, human resources 2. Chain of Command VERTICAL ASPECT (length of the chart) various positions of authority in the organization and direct line authority 3. Span of Control HORIZONTAL ASPECT (width of the chart) the number of subordinates directly accountable to a single line manager 4. Official Channels of Communication the route that messages are communicated within the organization Both the chain of command and span of control must be kept to the ideal amounts, for managerial, competitive, functional and communication purposes.
CEO
Marketing Director
Operations Director
Finance Director
Marketing Manager
HR Manager
Operations Manager
Security Director
Finance Manager
Marketing Departmen t
HR Assistants
Quality Controller
Security Staff
Finance Staff
Production Operatives
Above is an example of a stereotypical organizational chart with five hierarchical levels, functional departments providing structure, and height representing power. This is a traditional model, but others include: Organization by Product: large businesses with a large range of products may structure themselves according to the various types of products they create Organization by Process: this is an adaptation of organization by function and is suitable when there are clearly different stages in the production process Organization by Geography: multinational corporations often organize themselves by geographical region, allowing the business to be more aware of and responsive to cultural differences and varied customer needs
Span of Control This refers to the number of people who are directly accountable to a manager the higher up in an organization a person is, the wider their span of control teds to be. A wide span of control means there are fewer layers in the hierarchy, reducing costs with less managerial positions and a flatter structure also means that communication should be faster and more accurate In contrast, this means there are fewer subordinates who are accountable to a manager and therefore it easier to control a small team which will be more effective Large teams tend to suffer communication problems which may cause tension and conflict ADVANTAGES OF FLAT STRUCTURES Delegation becomes an important factor so there are more opportunities for subordinates to take on extra roles Overall improvement in communication since there are fewer layers Cheaper to operate as there are fewer levels of management Smaller psychological distance between those at the top and the bottom, eliminating the them and us culture ADVANTAGES OF TALL STRUCTURES Quicker communication within small teams Smaller teams are easier to control and manage Greater specialization and division can lead to greater efficiency and productivity Greater opportunities for promotion motivation for lower subordinates
Levels of Hierarchy
Hierarchy is an organizational structure based on a ranking system. The CEO, chairperson and BOD are usually at the top and the most unskilled employees are at the bottom. Each level in the hierarchy refers to a rank that is associated with degree of authority and responsibility. The person directly above an employee on the next level is known as the line manager and is responsible for day-to-day management of their subordinates. Advantages o Clear lines of communication o Thus, improved coordination o Establishes teams creating a sense of belonging acting as a form of motivation Disadvantages o Workers are isolated to teams o Rather inflexible which can be problematic if there are external changes that require structural change in the organization
Flat and Tall Structures Tall organization structures have many layers in the hierarchy; therefore managers tend to have a narrower span of control. In contrast, flat organizational structures have fewer levels and managers have a wider span of control.
Delayering This is the process of removing one or more levels in the hierarchy to flatten out the structure. There are three main purposes to delayering: Reduce costs by removing levels of management Improve the speed of communication flows by having flatter structures Encourage delegation as wider spans provide opportunities for employees to take on more responsibilities Delayering is often associated with downsizing, which can reduce a firms costs because there are fewer core staff who are paid on full benefits. Downsizing can lead to flexible working practices as businesses hire more contractual workers. But both actions have drawbacks: They create anxiety in workers who will be worried about their positions in the new structure, harming morale and productivity Employees can be overstretched by an increased workload Decision making can take longer since managers are dealing with larger teams Chain of Command This is the formal line of authority through which orders are passed down in an organization (seen in the org chart). A flat structure has a short chain of command and a tall structure has a longer chain of command.
HL: Delegation and Accountability HL: Bureaucracy HL: Centralization and Decentralization HL: Matrix Structures/Project Teams HL: Flexible Structures HL: The Informal Organization HL: Outsourcing, Offshoring and the Migration of Human Resources
Oral Communication
Oral or verbal communication involves people talking and listening to one another. It is a quick method because the sender and receiver are usually in direct contact and there is little time delay between questions and answers. The method allows questions to be asked and for feedback/clarification to be given. The effectiveness of the communication depends on the skill of the speaker, such as the tone of voice. Advantages o Little cost, if any o Detailed questions can be asked o Questions can be answered without delay o Can help to judge an employees ability to communicate o Facial reactions and body language differentiate from text Examples include: Giving instructions Discussing problems Business meeting Job interviews for recruitment Disadvantages o No permanent record of the conversation for future reference o Information maynt be complete or truthful o Confidential messages are more difficult to keep that way o Meetings and interviews can be time-consuming
Job appraisals and feedback Oral presentations People simply talking to one another
Written Communication
Written communication refers to non-verbal methods such as: Letters Business letters follow a set format with important emphasis placed on the layout and language used. Letters should: Indicate name and address of sender Include the date Have a reference Include proper salutations They can be used both internally and externally and provide a hard copy for future reference. They are also very specific. However, they are timeconsuming and may take equally long to get a response. Memorandum A memo is a business note from one person to another. It can be typed or just a handwritten note. They are used internally to call a meeting, to send a reminder or pass on a quick message. A memo can be quick to produce and is short, specific and easy to understand. They arent intended for passing on complicated information. Reports These are a formal method of written communication in which researched information is presented. They follow a specific format and tend to have: A title page with the author, audience and date An executive summary of what the report is and its purpose A contents page with page numbering An introduction Section headings for separation Conclusions and recommendations A bibliography An appendix with supplementary evidence Notices Notices are used to give a message to a range of people, perhaps by posting on a notice board or website. They can be both formal and informal depending on the content. Notices are useful for reaching many staff and can be left up as a reminder, but notices are not confidential and old messages are often ignored. Executive Summaries Executive summaries are written to provide a condensed version of a reports content. Executives do not have the time to read many reports and need fast and easy access to information so this type of communication proves useful. A typical summary follows the following format:
Scope and purpose of report Methodology Main findings Conclusions and recommendations But executive summaries must be very accurate as they are often read by decision makers who base their decision based on what they read. Abstracts An abstract is a shortened version of a report. It differs from an executive summary, as it provides no recommendations or guide to decision making whereas an executive summary summarizes the findings and recommendations. In essence, one could ignore the report if there is a succinct summary but this could not be done with an abstract, alone which tends to be shorter. Research Proposals This is a planning document and sets out the key issues to be investigated. It may contain details of details of methods of research, an action plan and any foreseeable obstacles. A major disadvantage of all written forms of written communication is storage despite advanced ICT, paper usage is growing. In addition, these forms of communication are slow and a single response may take hours or days and the equivalent of a ten minute verbal conversation can be covered in email over a span of weeks.
Visual Communication
Visual aids can enhance communication as they: Can be easily understood Can communicate ideas quickly Are often cheaper to produce that the same space filled with words Cater for visual learners Have a longer lasting impact Different images are used for different purposes: Bar chart for ease of comparison Pie chart for expressing percentage figures Line graph to show time-series data, such as sales figures during the past year Histogram for showing trends Other visual aid examples include photos, symbols, tables, maps, sketches and diagrams. Other examples of visual communication include sign language and body language. Effective Communication Notices Taking turns to speak Listening to others opinions Ineffective Communication All speaking at once Bad arrangement of working space
Non-Verbal Communication
Other than oral communication, all forms come under this category. This includes written, visual and ICT methods of communications.
Telephones/Mobile Mobile phones are still extremely popular in workplaces as they make all staff contactable at almost any time and location. In summary, electronic communication methods are growing in popularity as they allow for faster and cheaper contact over long distances, but can also require the need for expensive equipment. Businesses that rely heavily on ICT equipment tend to come to a halt when technology fails.
In reality, a business will combine methods to fit their requirements. Overall, they will focus on value for money, and which methods will be most efficient.
Chinese whispers: In large organizations, messages can be distorted when being passed down the chain Physiological barriers: Poor hearing or sight for example
responsible for junior management. Junior (supervisory) management: Lower-ranking managers who are in charge of monitoring daily routine tasks.They are responsible for their team of workers.
Professor Warren Bennis: Believed that successful leaders take an interest in what is happening in their organization He found that there is no single way to lead an organization, but leaders have to find a way that suits them He did find some general characteristics of successful leader Henry Mintzberg:
Interpersonal Roles: Figurehead, leader, iason
Communication tasks
Routine tasks
Planning Tasks
Nature of Leadership
Leadership Styles
AUTOCRATIC - Quick decision making during crises - Appropriate for unskilled employees - No feedback for leader - Alientated workers
DEMOCRATIC - Better morale - Sharing of idea > improved decisions -Time delay, as more people are involved - Not suited to a large workforce
LAISSEZ-FAIRE - High motivation, as employees feel trusted - Suitable in creative fields - Slow, as there is limited direction - Reliant on teamwork
SITUATIONAL LEADERSHIP - Removes the limitations of each style, as if a style is not applicable, it doesn't need to be used -Changing style might be confusing
Situational Leadership: a leadership approach is dependent on the competence and confidence of the employees. Leaders must realize that the leadership style should depend on the situation and employee. Leaders need to be flexible and dynamic. Factors that could influence the required leadership style include: Culture Leader trust levels Organizational structure Task difficulty Subordinate skill *Remember the acronym CLOTS
Trait Theory
Based on the idea that leadership and management styles depend on personal characteristics: Listening skills Enthusiasm and drive Ambitious aims Decisiveness in execution of business strategy Entrepreneurial Responsive to change Seeing the bigger picture High standards of integrity Influential and inspirational Prudence in decision-making Peter Drucker came to the conclusion that there were no exact traits that could be applied to all leaders.
Contingency Theory
Based on the idea that there is no single best way to manage an organization or lead people, as what is effective in one situation my not be in another. The best style depends on factors that affect the situation such as size, knowledge and expertise of the workforce. FIEDLER A leaders own personality has a large effect on leadership effectiveness i.e. the performance of the workforce in contingent on the personality of the leader. He also suggested that the effectiveness of leaders depends on the situation under consideration. He believed that 3 principles determine leadership style: Relationships: how well they get along with subordinates Situation: the nature of the task itself Authority: how much power the leader has This suggests that almost anyone can be a leader if his or her leadership style is matched to the task at hand. However, the theory ignores other situational factors that impact effectiveness such as experience and training. LIKERT Four types of leadership were identified: Exploitative autocratic no trust in subordinates, use threats and punishments to motivate Benevolent autocratic some trust in employees and will seek their opinion at times, a paternalistic style Participative place a great confidence in workforce but retain decision-making power consultative BLAKE AND MOUTON TANNEMBAUM AND SCHMIDT
Workplace motivational theory has evolved over time as the nature of industrial development:
1911
1943
1960
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1927
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1964
EDGAR SCHEIN DEAL AND KENNEDY KOTTER AND HESKETT Two types of corporate cultures: Adaptive Cultures: Receptive to change and exist in organizations that adapt themselves to change, staff are encouraged to be entrepreneurial and take risks by not having a culture of blame. Usually found in innovative cultures. Inert Cultures: Resistant to change and exist in organizations with negative values of change to the current culture. They promote inertia rather than proactivity GOFFEE AND JONES Double-S model, looking at two dimensions which when both present, create the ultimate culture. Sociability: The extent to which people have concerns for their colleagues. High sociability = people culture, low sociability = task focus Solidarity: Degree of cohesiveness/unity, high levels of which create harmony/efficiency and low levels of which prioritize self-interest
GEERT HOFSTEDE Studied the link between international cultures and organizational cultures five dimensions: Power distance: The extent to which subordinates expect and accept unequal distribution of power, this is similar to centralized vs. decentralized models Individualism: The extent to which people care for themselves, and feel responsible for to care for others or believe this is the role of the government Masculinity vs. Femininity: The extent to which the organization lies within traditional gender roles o Masculine: strict, aggressive, competitive o Feminine: relationships, quality of life Uncertainty avoidance: The extent to which people prefer structured routines to flexible structures, low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible Long versus short term orientation: A long-term oriented business focuses on the future, whereas short-term oriented businesses are related to the past and the present, including steadiness, respect for tradition, preservation of one's face, reciprocation and fulfilling social obligations
Impacts of Culture