human resources notes (1)

7/31/2019 Human Resources Notes (1)

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2.1 HR Planning

-Teleworking: working away from employers or customers by using electronic forms of

communication

-Home working

Advantages of teleworking/ home working

- geographical distance no problem-customers can save time and money by not

having to travel to retail stores-just phone

- business can pay less rent as dont need to locate call centers. Office space in

city

- absenteeism not an issue

- employees dont have to travel 2 work

- employee can enjoy autonomy in decision making, less formal than traditional

office

- employees benefit from tax allowances by using personal property 4 conductingbusiness

- child care can reduce financial burden

Advantages+ Disadvantages:

Employee Employer

Advantages - job creation,

especially for

those living in

remote areas

- suitable 4 people

that have to carefor family

members

- flexible working

hours

- benefits of not

having to work

-reduced office

overheads

-flexible and extended

working hours available

to customer

-can cater for peak andoff peak trading periods

-continuity of service

from those with young

children or other

dependents

Disadvantages -heavy reliance on ICT

-not always possible lack

of space at home or lack

of confidentiality

-teleworkers oftenexceed legal limits on

working hours

-suffer from social

isolation

-often less job security

and less trade union

representation for

teleworkers

-set up cost high

-requires tight control in

recruitment as not

everyone independent,

self-motivated &experienced

-management and

control more difficult

-technological

breakdowns can cause

big problems 4 business.

Portfolio working:person employed ikn number of different jobs carried out

simultaneously, part time or tempory basis.increased flexibility and mobility and have

varied experiences. However lack of job security.


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Part time: cheaper to employ, lower enumeration, easier tio replace if need.

Handy Shamrock recommended that business place greater emphasis on meeting needs

of workers by methods such as flexile working practices and enrichment. Shamrock org

based on 3 leaf clover:1. core staff-full time professional workers

2. peripheral workers part-time, tempory + portfolio

workers

3. outsourced workers-not employed by organisation to

complete tasks also known as contractual fringe

Business Strategy:

Five Rs : if managers dont make most of HR, suffer these consequences:

1. recruitment higher = higher induction + training cost

2. resources- increasing resources and time spent

3. reservations lower morale

4. returns- lower levels of productivity therefore competitiveness and profits5. reputation poorer image since business cant retain staff

Successful training + development plan should:

show commitment to training + development of staff

link training + development needs to objectives

help promote culture of continuous learning

assess operational requirements of org against skills of staff

provide equal opportunities for all staff yet be cost effective

2.2 Organisational Structure:Responsibility = shows who in charge of whom, accountability = who held responsible

4 what job.

Org structures helps:

identify supervisor/ line manager form of accountability

which people have authority + extent of responsibility they have for others

determine how different areas of business link 2 one another

verify own position in overall org

identify various channels of communication in org

CEO- devise + implement strategies, act as figure head, leaders directors, represent

ideas + beliefs of BOD, formulate org objectives with BOD.


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BOD:

executive directors-work full time @ org-make decisions about daily running of

business

non-executive dont work full time but are consultants 4 particular area of

expertise. Advise on corp strategy

BOD- set targets, devise long-term plans, establish policies + codes of practise, monitor

org activities, advise + support + managing director/CEO

Organisational charts- diagrammatic representation of firms formal structure.

Shows :

shows functional departments within a business

shows chain of command-positions of authority in org, which people have direct

line of authority over others

span of control-number staff directly accountale 2 single (horizontal) linemanager

official channels of communication

levels of hierarchy gives indication of employees rank

orgs can be organised by functions, product, process, geographically.

Delegation=passing on control + authority to others, involve line managers trusting +

empowering staff 2 complete task or project but holding them accountable.

Delegation=form of empowerment and can act as non-financial motivator.

However, line manager has ultimate responsibility. Poor delegation can lead to

confusion + feeling of inadequacy, leading to demotivaton, result in failure to achieve

set task.

Benefits:

manager saves time-not tackling every task focus better on strategic issues

can motivate + develop employees-feel trusted and talents recognised

Managers use SMARTER acronym:

Specific

Measurable

Agreed

Realistic

Time bound

Ethical

Recorded

Span of control: number of subordinates controlled by manager (or directly accountable

to). E.g. CEO has narrow direct span of control, wide indirect.

Wider: fewer layers of hierarchy = many people under manager

Narrow: fewer subordinates under manager

Advantages of wider: (flatter structures)

delegation becomes more important part of managing more opportunities 2

develop professionally communication improved as fewer layers of hierarchy


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cheaper 2 operate wider span of control= fewer layers of management

smaller psychological distance between top and bottom of org

Advantages of narrower spans of control (taller)

quicker communication between small teams

easier 2 control and manage small teams

greater specialisation + division of labour

greater opportunities 4 more people to earn promotion, as more layers may

motivate.

The degree of control granted 2 a manager will depend on :

experience, competence + traits of manager

nature of management styles-management feel need to control subordinates

may have smaller teams, narrower span

type of production system- e.g. flow production managers wide span as simple

tasks that dont need as much supervision

skills and dynamics of subordinates e.g. highly skilled usually in smaller teams nature of work- complex tasks where communication important-may have

smaller teams

Hierarchical structures:

shows lines of communication-improve co-ordination + productivity of

workforce

establish department or teams, create sense of belonging in workplace and act as

a form of motivation

Limitations:

-departmentalization can lead 2 workers being isolated to official teams-lead to inflexibility

delayering is the process of removing one or more levels in hierarchy to flatten

structure. Therefore reduces management + widens span of control.

Reduce costs (by removing management)

Improve speed of communication (structure flatter)

Encourage delegation-since wider spans provide opportunities 4 employees 2

take on more responsibilities

Drawbacks of downsizing:

Create anxiety + sense of insecurity among workers effect motivation +

productivity Delayering can overstretch employees as workforce increase effect quality

Decision-making may take longer since managers deal with larger teams

Flexible working practises require regular up-grading of skills cost

implications.

Bureaucracy refers to execution of tasks that are governed by official administrative +

formal rules of the organisation. Bureaucratic orgs characterized by prescribed rules +

responsibilities standardized procedures and formal hierarchical structures

This may include:

Frequent requirement to fill out unnecessary paperwork Staff working in several departments reporting 2 more than 1 manager


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Too many working parties investigating issues of concerns of org

Long official chains of command

Management with duplicate roles + responsibilities

Max Weber believed bureaucracy to be synonymous with efficiency as it is division of

labour being applied to the administrative tasks within org. bureaucratic org governedby:

Continuity-must follow official rules + regulations, rather than taking high risks

Rules + regulations

Hierarchical structures

Accountability

Core problem with bureaucracy is that work expands filling time available for

completion. It prevents creativity + risk taking, slows decision-making and is highly

inflexible + over cautious.

Centralised structures: majority decisions made by small number people favoured by

Fayol, Taylor + Ford.

Advantage:

-Rapid decision making no need to consult employees

-better control

-better sense of direction-decisions made by senior management team more qualified

to lead business.

Disadvantages:

Possible delays so many decisions 2 make by so few

Increased pressure +stress 4 senior management

Inflexibility org becomes rather bureaucratic + inflexible since less autonomy

Demotivating- employees may lack motivation, since feel less valued

Decentralised: decision making sometimes passed 2 others in org.

Advantages:

Imput from workforce benefit from + exploit different skills of staff

Speeder day 2 day decision-making

Higher morale feel valued, can use initiative + sense of ownership of work

higher productivity

Improved accountability staff directly accountable 4 inputmay improvequality

Encouragement of teamwork-collaborative work can generate innovative ideas

Disadvantages:

Loss of control-authority diluted

Greater chance of mistakes-empowered person must be competent, more people

involved more likely different options, becomes difficult 2 track mistakes

Greater reliance on effective communication

Duplication of functions-if no set overview may carry out same tasks

Centralised or decentralized structure depends on:


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*Size of org larger =greater need 4 decentralisation

*Scale of importance of decision-higher cost decision may be more centralised

*Corporate structure creative + innovative based orgs tend to be unwilling 2 let go of

power + control centralised

*level of risk high risk =key decision makers centralised

*corporate structure-creative + innovative based orgs tend to be decentralised*management attitudes + competencies manager may be unwilling 2 let go of power +

control centralised

*use of info +communication techniques-adopt up-2 date methods of ICT are available

to delegate a greater extent.

The matrix structure-flexible organisation of employees from different departments

within org temporarily working together on a particular project.

Advantages:

-culture of teamworking +collaboration is created

-experts from different parts of business brought together 2 work on project

-good career and personal development opportunities

-project can be spread out among various teams reduce pressure on senior

management

-adds interest + varying 2 work + increase staff motivation

Disadvantages:

-members of project may neglect department roles

-potential team members may not get on with one another especially from different

departments with different culture

-project managers may have a difficult task in controlling team members who have

conflicting interests + priorities

Matrix structures tend to work best in orgs with relatively flat hierarchical structure

with a wide span of control.

Flexible organisational structures should enable business 2 adopt when there is a need

to respond to rapid change, allowing business to be more successful. They help

developed multi-skilled workforce. Re-engineering is a radical form of organisational

flexibility involving re-design of org structures due to the driving forces of customers,

competitors and change. Due to drastic and disruptive nature of change caused by re-

engineering, most large firms would not tend to adopt it.

Organisational structure theorists:

Mitnzberg-business can only remain successful if structure flexible enough 2 deal with

rapid changes in market.

6 organisational configurations:

1. innovative org or adhocray-system where people split into small project teams-

deal with specific tasks

2. entrepreneurial orgs-decision-making power retained by strategic apex=

centralised

3. machine orgs- coordination done by specifying work progresses + people.Inflexible


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4. divisionalised orgs-coordination through middle line who encourage

standardisation of output-inflexible to rapid change

5. professional orgs-professionals with standardised skills, inflexible due to high

specialisation

6. missionary orgs-coordination through standardisation of org norms

Peters argued that flatter org structures are more successful since better channels of

communication, greater opportunities for delegation + empowerment and greater

flexibility in adapting 4 change.

2 key features of successful companies contributing to the development of flexible

structures:

-removal of bureaucracy

-use of project teams e.g. matrix structures

Advantages of informal organisations (relationships existing beyond formal groups of

org)

motivation promote sense of belonging

facilitates communication

assist decision making informal groups can come up with innovative + original

Outsourcing = act of moving non-core activities away from internal operations by

finding a external party to carry out such functions. The purpose is to reduce costs by

using specialists parties that can carry out the function more efficiently + cost

effectively business can focus on developing core competencies.

Limitations:

requires effective communication + coordination

must be mutual trust between outsourcer + other parties quality of outsourced service passed onto external agent concerns whether

expected standards will be met

cause uncertainty among workforce due to restructuring + likelihood of

redundancy

Off shoring= extension of outsourcing involves relocating business + functions

overseas

Increase of migrates can have advantages 4 business

easing of skill shortages

flexible work structures

marketing opportunities-migrant workers different tastes + habits provide

niche

personal opportunities

net social benefits-pay income tax


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2.3 Communication

The purposes or objectives of communication include to instruct, clarify, interpret,

notify, warn, receive feedback, review and, above all, to inform

Effective communication is vital to success of business so: Staff are aware of their roles and expectations

Managers can gather and act upon feedback from employees, customers and other

stakeholders

Verbal communication:

Advantages:

Detailed questions can be asked

Questions can be answered without any delay, i.e. feedback is quick and

spontaneous

Very little cost involved

Interviews/presentations are a good way to judge an employees ability to

communicate

Facial reactions and body language, along with tone of voice, can be judged

Disadvantages:

Information given may not always be truthful

There is usually no permantent record of the conversation for future reference.

Confidential messages may be difficult to communicate verbally

Meetings and interviews can be very time consuming

Non-verbal:

Letters

Reports

Notices

Memorandum(memo)

Executive summaries

Research proposal

Visual communication:

-easily understood

-communicate quicker than words

-cater 4 visual

-may have longer lasting impact-e.g. marketing

e.g. charts, graphs

informal communication- unofficial channels of communication e.g. grapevine. Can

hinder efficiency + productivity of workplace.


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Benefits:

-sense of belonging

-security + support

-pooling of ideas generate solutions

ICT: emails, facsimile (fax), video conference, phones

Factors influencing choice of communication method:

Personal preference

Organizational structure-tall=formal

Security issues + concerns-hard copies needed just in case?

Skills + training

Ease of use

Size of business-larger may use emails 4 large, smaller use verbal

Storage issues- paperwork need to be stored

Location-time-zone differencesUrgency

Cost-e.g email cheaper than sending mail

Barriers 2 effective communication:

High costs may not have

finance to set up effective

communication network

Technological barriers

Language

Accents Geographical location

Poor body language

Physiological barriers-hearing,

sight disabilities

Jargon

Different cultures

Attitude

Internal politics Chinese whispers-tall

hierarchical structures messages

pass through many layers

Poor communication hinders business:

low moral- feel out of touch, lose confidence +direction, feel under valued

errors + reworking as not fully aware what to do

loss of competitiveness due to lower productivity caused by low moral or errors

lack of control

Communication networks:

Communication network shows roots that allow different parties to communicate

message.

Centralized networks: involve key player or team holds decision making power.

-wheel network-experienced person or team leader staff communicate with

-Chain-network- tall hierarchical structure- pass on info from higher managers tolower sometimes message can be distorted.


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Y-chain: similar to chain but passed onto several different parties.

Decentralized: open nature, more ideas generated. Feel more valued, better solve

complex issues. Decision making can be prolonged coz so may people in process

-circle network- team based tasks or group of middle managers communicating with

one another- good 4 solving complex issues

All chain networks: -communicate with whoever necessary, most ideal 4 solving

complex issues.

Objective of introducing new or improved communication systems:

-improved speed, access +accuracy of communication

-greater potential 4 communication 2 reach wider audience

-improved motivation + productivity as ICT reduce errors

Disadvantages:

-cost-threat of security-reliance of ICT

-need for change management

Mehrabian theory (3 Vs)

-visual lifting- facial expression +body language accounts for 55% of interpretation

-tone + paralinguistic cues account for 38% e.g anxiety, enthusiasm

-only 7% of message interpreted by actual words spoken

2.4 Leadership and Management:

Leadership is the process of influencing and inspiring others to achieve goal. Leaders

tend to focus on achieving broader goals or visions with no definite frame of mind.


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Management is essentially problem solving based on reasoning, rather than emotion.

Involved in complex organizational tasks. Managers likely to focus on attainment of

specific goals within definite time frame.

3 broad levels of management:

Senior management Middle management

Junior management

Leadership concerned with influencing others to achieve vision or target. Official

leader is established by an organization and therefore has authority 2 give orders. An

informal leader has natural charisma in influencing other people. All leaders have

power to influence, although source of power is different for official and unofficial

leaders.

Warren Bennis found that no single best way to lead organization. General

characteristics of successful managers:

Management of attention-need clear vision or dream of where want business

Management of meaning- able to communicate vision 2 others

Management of trust- managers + leaders need 2 be consistent, dependable and

honest 2 gain trust-environment created 2 allow people to openly disagree but

still work together professionally.

Management of self- self-reflective of strength and weakness, able to accept

constructive criticism.

Henry Mintzberg

argued manager has 3 main roles1. interpersonal roles- figurehead, liaison role and leader role

2. informational role- manager acting as communication channel between

departments and senior management

3. decision-making role- tactical and strategic decisions made by managers.

The work of managers:

routine tasks

planning tasks

communication tasks

Leadership styles:

consensus model of leadership- found in countries like Japan + Netherlands where

group-decision making is the norm.

charismatic model of leadership- where there is tradition + expectation that leaders

make decisions with decisiveness.

Autocratic = suitable for situations that require quick decision making or critical

decisions. However communication is top-down, no feedback given, opinions and

suggestions ignored, can cause resentment, hence demotivate staff.


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Democratic= suitable if manager cannot always be around to ensure staff remain on

task. Advantage= better morale + motivation, sharing ideas can help improve decision-

making. Limitation= can delay decision-making not so good for large workforce as

there is high dependence on clear leadership.

Laissez- faire: minimal direct input into work of employees, leaves subordinates tomake own decisions and complete own tasks. Limitations= coordination and decision-

making can be time-consuming since there is lack of supervision or direction. Relies

heavily on good will and teamwork 2 achieve goals.

Situational leadership: using right person and right style for the right situation,

managers must be able to change and adapt to different situations. CLOTS:

Culture

Leader how much trust do leaders have in subordinates and preferred leadership style.

Organisation structure e.g. tall/ flat

Task e.g. extent of difficulty, urgency

Subordinates- level of skills, motivation, unity and number of.

Trait Theorists: argue leadership/management stlye depends on personal characteristics

of individual leaders/managers

Likerts 4 styles:

1. exploitative autocratic

2. benevolent autocratic

3. participative

4. democratic

Likert suggests that participative and democratic styles most successful.

Fiedler no best way of leading, effectiveness depends on personality and situation

under consideration. Three principals:

1. relationships how well get along and trust

2. situation- nature of task, level of difficulty

3. authority how much power or authority leader has.

Weakness suggests almost anyone can lead if style is matched to task. Ignores other

situational factors that effect leadership effectiveness e.g. experience + training of

leader.

Blake & Mouton: managerial grid model, 5 different leadership styles.


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Tannenbaum and Schmidt :


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tells autocratic, presents final decision

sells- persuade 2 win support, although decision already made

consults- ask 4 opinions before making decision although not necessarily act on

opinions

participates- absolutely involves employees in decision making

democratic/laissez-faire

Contingency theory: states no single best way to manage an organization or to lead

people because what may work in one situation doesnt necessarily work in other

circumstances. The best style depends on internal + external factors that effect

situation, such as size, knowledge + experience of workforce.

Factors influencing:

organizational culture

attitudes of senior management e.g. optimistic about worker abilities?

Traits of manager

Subordinates how many Task- need to be performed by staff-routine or unfamiliar task is challenging

or straight forward

Time constraints e.g. deadline imminent

Fiedler argued that a leaders own personality has large impact on leadership

effectiveness.

Situational theory:

Similar to contingency theory- both assume no optimal style, difference is situational

places greater focus on behavior of effective managers +leaders. Contingency theorytakes a broader approach and considers the internal and external factors that effect

leader ability.

Blanchard & Hersey model- concern for people and tasks as well as ability and

willingness of subordinates to achieve task set.

Telling/Directing style: autocratic, employees unwilling to complete task,

communication 1-way

Selling/coaching style-used when employees not committed but have some

ability. More 2-way, concern for both people and task.

Participating/supporting workers have high degree of competence,inconsistent commitment.

Delegating style- both ability and willingness high

Effective leaders need to be flexible to given situation and that worker attitudes are

situational. Criticism: fails to distinguish between management and leadership

Robert House Path Goal Theory:

Directive leadership

Supportive leadership

Participative

Achievement orientated- sets challenging goals as has faith in subordinates and

high expectations


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House argued that leaders need to take account of 2 types of situational factors:

-subordinate personality

-characteristics of environment

John Adair Action-Centered leadership model:

Manages and leaders not necessarily born leaders. Use of authority relevant tosituation in question, four types

1. position official position

2. knowledge- access to important info/ experience

3. personality

4. moral persuasion- art of being able to convince or persuade others

The difference between leadership and management:

Time + devotion- managers set hours, leaders 24/7

Leaders have more long-term view + more strategic decisions

Leaders accountable 4 much broader range of responsibilities, managers more

day-2-day

Influence managers listened to due to position of official authority, leaders

inspire and motivate followers

Managers follow pre-determined rules, leaders more radical/ risk taking

thinking

Vision- leaders= more vision

Key Functions Of Management:

Henri Fayol: investigated scientific management, 5 functions Planning

Organising

Commanding

Coordinating

Controlling

Principals of management:

Division of labor 2 develop skills and specialization

Formal lines of authority + wide span of control, like the military

An authoritarian style management decisions made from top only

Unity of command- employees should only have one line manager, to improvecommunication + productivity

Equity in treatment of employees-ensure committed not resentful

esprit de corp harmony

Believed management should ensure discipline to prevent slack disobedience.

However, use of equity of treatment pay reflective of input.

Charles Handy:

Common characteristics of effective managers/leaders

intelligence

initiative

self-assurance


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three key roles:

managers as general practitioners- fix health problems of firm

confronters of dilemmas

balances of cultural mixes

Formal structure not appropriate. Management must rise above situation and see biggerpicture. Managers and leaders need to delegate by being generalists rather than

specialists.

Peter Drucker:

People are the key to success of a business. Decentralization encouraged. Managers

function:

setting organizational objectives

organizing tasks and people

communicating with + moderating employees

measuring performance developing people

effective communication prevents a them and us culture. Maagement by objectives.

Five main steps:

1. review

2. set

3. monitor

4. evaluate

5. reward

All managers should be involved in strategic planning. Business should recognize the

importance of change and embrace change, but should avoid meaningless change.

Business Strategy:

Wally Bock: suggests 5 Ps of effective leadership

pay attension to whats important

praise what you want to continue

punish what you want to stop

pay for results you want

promote people who deliver the results you want

leadership styles depend on: traits + personality

level of skill, experience , motivation and confidence of employees

time-frame how quickly descisions need 2 be made

degree of importance- tactical or strategic decision making

degree of difficulty of task- whether routine or crisis.

2.5 MOTIVATION

motivation = desire, effort and passion to achieve something or willingness to complete

task with enthusiasm.Intrinsic: people do task out of own desire


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Extrinsic: people participate because of benefits or rewards

Advantages of worker motivation:

higher morale/job satisfaction, improved productivity and quality

better industrial relations-reduce chances of conflict in work place

lower staff turnover reduces cost of hiring staff

lower absenteeism

higher profits generated from above factors =)

Signs of poor motivation:

-high absenteeism rates

-high wastage level

high % defected output/ poor quality

increased customer complaints

poor punctuality

increasing number of disciplinarily problems

Taylor: scientific management- employees primarily motivated by money, efficiency

targets and output related to pay.

Repetitive tasks based on division of labour and specialization in production

process.

Piece work where worker receives payment based on level of output.

Workers selected for jobs based on abilities rather than friendship groups.

Criticized for ignoring non-physical contribution of workers, not easy 2 measure output

of some professionals e.g. teachers, doctors etc. also not all people are motivated by

money. Scientific management can lead to monotonous tasks, leading to jobdissatisfaction rather than motivation. Firms use mass production and have many low

skilled workers tend to use this theory.

Maslow: focused on psychological needs of workers.

Criticism:

Levels are difficult to measure- not quantitative measurement. Maslow =psychologist not business man


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Assumes everyone is motivated in prescribed order- home workers dont have

social office interaction but still highly motivated

No explanation of what motivates after self-actualization

McGregor:

Theory X negative management attitude about workforce- see workers as lazy peoplewho avoid work if possible. Workers need close supervision, do not like work and lack

ambition. Authoritarian style, emphasis on output and productivity, rather than people.

Theory Y- positive approach, employees able to achieve org objectives with own

accord and initiative. Managers believe workers gain satisfaction from work and take

on own responsibility. Managers likely to be democratic and decentralized approach in

management style.

Hertzberg:

Recommends democratic style.

Hygiene factors-aspects that dont motivate but must be met to prevent dissatisfaction.

E.g policies, supervision, working conditions, pay

Motivators- factors that lead to psychological growth of workers, leading to increased

satisfaction and performance @ work. Achievement, recognition, responsibility and

advancement of worker led to increased worker satisfaction.

3 key areas to increase motivation:

Job enlargement- variety

Job enrichment- more complex and challenging tasks-exploit potential Job empowerment- delegating decision making power to workers, help boost

overall morale.

Criticisms:

- doesnt apply to many occupations, especially low-skilled/low paid

where job enrichment + empowerment not part of work.

- Some employees dont want enriched jobs as this involves having extra

responsibility and stress.

- Ignores role of team working in motivating workforce

Content theories:

-seek to explain specific factors actually motivate people (hertzberg, McGregor andMaslow are all examples)

Mayo: workers motivated by humane approach to management.

Hawthorne experiments-increase in output due to people working together better

Increase performance when scope 4 discretion, creativity ad teamwork.

When views and efforts recognized, staff have sense of belonging, more

motivated

Encourage team spirit, group dynamics, exploiting skills + expertise of each

team member.

McClelland: theory of needs


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Need for achievemet people will work better

Need for power- people who like to influence behavior of others are strong-

willed managers

Need for affiliation-seek good social + working relationship with colleagues +

management team

Process theories: look @ decision-making processes + behavior of people to determine

motivation.

Vrooms Expectancy theory: people only put in effort when they expect their role will

help achieve required target. If feel lack ability then effort will be lower. 3 parts to

motivate workforce:

1. expectancy

2. instrumentality-expect meet performance-rewarded accordingly

3. valence- people place different values on different rewards whether worth

effort.

Adams Equity theory: workers will naturally compare their efforts or rewards to

others in the workforce.

Each worker should receive a remuneration package that reflects his or

her efforts

Workers only motivated if remuneration package seems fair

Degree of equity in rewarding efforts will have an impact on motivation

level.

If inequity allowed to continue then absenteeism may increase increasing costs:

Hiring temporary staff 2 cover absent workers Overtime costs + disruptions 2 staff that take on work of absent staff

Lower productivity

Detrimental effects on staff morale and customer service

Loss of output if workers position or role cannot be replaced by another.

Financial motivation:

wages-payment based on time devoted

piece rate- rewards on output

salary-fixed annual pay, paid at end of each month

Disadvantages of time-based payment:-not easy to distinguish efforts/ output

-little incentive to 2 work hard since people paid same amount 4 time

Commission rather than time-based=output based

Pays workers based on level of output contributed by worker as portion/ % of sales.

Whereas piece rate is a fixed amount per unit sold or produced.

Limitations:

Speed in production not necessarily correlate with high quality output or

customer care

Added pressure on workers 2 sell more or to perform @ faster rate

Tasks can be repetitive causing boredom


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Since payments depend on fluctuating sales or output levels, lack of security

There may be a need to hire more quality controllers, especially in

manufacturing processes.

Profit-related pay (or profit sharing)- the higher amount of profit made, the greater

pay received by employees. Usually paid as annual bonus. Amount paid is usuallylinked to employee salary and length of service.

Can strengthen employee loyalty and foster teamworking, therefore boosting efficiency

of labour. However, share can often be 2 small 2 motivate, tends to reward senior

management, lower individuals feel no influence.

Performance related pay- more flexible than profit-related pay. Rewards employees

that meet certain goals- e.g. sales targets or competence. Can be paid in form of

performance bonuses(workers who reach targets), loyalty bonus(if stayed in business

long time), or pay rise.

Advantage: create incentive for people to work and perform better.

Disadvantages:

Targets may be unrealistic/unachievable- cause resentment, hinder performance

Stress caused by pressure 2 meet targets

Non-financial motivators ignored

PRP not appropriate in some professions where quality is seen as more

important than quantity.

May not promote teamwork. Workers may feel treated unfairly and colleagues

better rewarded.

Employee share ownership schemes: reward by giving shares in company, employees

take direct interest in companys well-being. However, often only senior management

benefit as others may not qualify or amount too insignificant.

Fringe Payments: or perks are payments + benefits to any employee in addition to

wages/salary. Vary depending on position in org. helps encourage employee loyalty +

safty needs. Can potentially have huge cost.

Non-financial Motivation:

job enrichment

job enlargement

job empowerment

job rotation- form of enrichment, workers perform different tasks of same

complexity-fulfilling number of different tasks in order, again provides variety

and avoids over-specialization

teamworking- staff work alongside other employees e.g. cell production, quality

circles, departmentalized teams


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Adair Model of team building:

Belbin model: of teamworking considers behaviour of managers.

Team-role

type

Contribution

(benefits)

Allowable

weaknesses

Suggested task

allocationShaper Challenging,

dynamic, thrives on

pressure, drive and

courage to overcome

obstacles, directing

team attention and

priorities

Prone to

provocation.

Offends

peoples

feeling.

Person best suited

to overcome

obstacles and

opposition, create

a sense of urgency

and ensure that

talk is turned into

action.Implementer Disciplined, reliable,

conservation and

efficient. Turns ideas

into practical

actions, out agreed

plans systematically

and efficiently

Somewhat

inflexible.

Slow to

respond to new

possibilities.

Appointed as

organizer,

responsible for

procedures and

practical steps to

be taken once team

reaches significant

decisions

Completer

finisher

Thorough,

conscientious,

anxious. Searches

out errors andomissions. Maintains

sense of urgency

within team and

delivers on time.

Inclined to

worry unduly.

Reluctant to

delegate. Slowto respond to

new

possibilities.

Should ensure

teams works

meets necessary

deadlines andconforms to

highest standards.

Responsible for

ensuring no

inaccuracies or

error.

Coodinator Mature, confident,

good chairperson,

clarifies goals,

promotes decision-

making, delegates

well, recognizes

where teams

Can oftn be

seen as

manipulative.

Off loads

personal work.

Best person to

coordinate group

effort,ensure that

everyone has a

useful role and that

team works

towards common

Tasks: must be challenging enough to maintain

interest

Team: must work collectively 2 successfullycomplete task.

Individual needs to be catered for by team

Adair argued that too often, teams focus on

performance paid 2 individualsgroup

dynamics not exploited. Effective management

of teams requires recognition and reinforcement

of every member.

AC

T

I

O

N

O

R

I

E

N

T

A

T

E

DPE

O

P

L

E

O

R

I

E

NT

A

T

E

D


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strengths and

weaknesses lie.

goal.

Team

worker

Cooperative, mind,

observant and

diplomatic. Listens,

builds, avertsfriction. Support

member in their

strengths, e.g.

building on

suggestions,

fostering team spirit

generally.

Indecisive in

critical

situations

Should play a

floating role, using

versatile qualities

to help whereothers cannot

manage. Should

use diplomatic

skills to overcome

conflict.

Resource

investigator

Extrovert,

enthusiastic,

communicative.

Explores and report

on opportunities, andresources outside the

group.

Over-

optimistic.

Loses interest

once initial

enthusiasm haspassed.

Should be

responsible for

developing

external contacts

and exploring newopportunities,

needs a chance to

conduct negations

nut must report

back to group.

Plant Creative,

imaginative,

unconventional,

solves difficult

problems, redefines

problems, advances

new ideas andstrategies.

Ignores

incidentals, too

preoccupied to

communicate

effectively.

Deal with most

problem solving or

be responsible for

generating new

strategies or ideas

and proposing

solutions to therest of the team.

Monitor

Evaluator

Objective, impartial

and good at carefully

weighing up all

possibilities to make

the right decision,

judges accurately.

Lacks drive

and ability to

inspire others,

can come

across as

unenthusiastic

or boring.

Responsible for

ensuring all

worthwhile

options are

considered, need a

key role in

planning, an

arbitrator in event

of controversy.

Specialist Single-minded, self-

starting, dedicated.

Provides technical

knowledge and skills

in rare supply.

Contributes

professional

viewpoint on subject

under discussion.

Contributes

only on a

narrow front,

dwells on

technicalities.

Should provide

focus on technical

issues confronting

team, should

provide knowledge

and techniques in

short supply.

Belbins research showed that a balanced team-one with highest chance to succeed- would

contain a balance of team roles.

Other forms of non-financial motivation: recognize and praise

C

E

R

E

BA

L

O

R

I

E

N

T

A

TE

D


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the working environment- worker comfortable?

Worker participation

Continuous professional development- opportunities provided for ongoing training.

More loyal and productive workforce- easier 2 delegate

Argyriss Maturity and immaturity theory suggests that if managers treat workers as adults,they will behave as rational as adults. If treated like children, then workers will behave like

immature children.

Benefits of higher staff retention:

-lower recruitment cost

-better corporate image

-skills + knowledge kept in org

-greater labour productivity as greater stability

- better customer service, leading to better customer satisfaction +loyalty

-improved competitiveness

-ultimately helps improve profitability.

2.6 Organizational and corporate culture-what is considered normal to business org and guide behavior within the org. may be based

on set of beliefs, values and attitudes of management ant employment.

A negative culture can lead to increased absenteeism and lateness, thus esculating costs to the

business. A culture of acceptance and cooperation with management will aid a business in

responding to the changing needs of the market.

Fostering improved culture: main problem 4 managers in fostering desired culture is that must

be established over long-period of time. Culture largely formed by subjective views of people

+ becomes ingrained in workers minds-how see org. not always easy 2 change views,

particularly for large workforce, can be resistance to change. Employees who are rational,motivated +attentive can attain an acceptable level of cultural intelligence. Helps foster

desired culture.

Influences of organizational culture:

Nature of business- depends on mission, objectives, aims.

Organisation structure- tall structures tend 2 have small teams, flatter=more likely 2 have

fggggggggggggggggggcollaborative team working.

Rewards- employees appropriately remunerated 4 efforts=motivated culture of workers

ggggggggstriving 2 achieve good results.

Management style- theory Y=workers deal with problems themselves, theory X=threats +

mggggggggggggggmanagement solve problems

Sanctions-org with few sanctions may encourage staff 2 be slack. However, too many =gggggggggresentment

The strength of culture depends on unity.

Advantages of strong corporate culture:

Create sense of belonging + security 4 staff because feel apart of business

Mistakes + misunderstanding may be minimized since staff familiar with process

Promotes team cohesiveness

Problems associated with culture gap e.g. conflicts between different groups

minimized.

Theories of organizational and corporate culture:

Charles Handy: different cultures needed for different business activities.


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Power cultures-one dominant individual/group hold decision-making power.

Structure likely 2 be flat, wide span of control

Role cultures- occur in highly structured orgs with formal rules and procedures.

Job roles clearly stated in formal job descriptions

Task cultures- occurs in org where focus on getting result from work done, no

single source of power. Employees empowered and control overresponsibilities.

Person cultures- occur in org where staff in similar positions with similar

expertise + training form groups 2 share knowledge + enhance their own skills

Edgar Schein: 3 levels of corp culture

1. artifacts- superficial aspects of org can be easily detected e.g. building, dress

code.

2. espoused values- deal with culture of staff, symbols/metaphors e.g. logos,

brands, mission statement, used to express culture of staff

3. basic assumptions +values- represent deepest level of culture entailing culture

that is unseen + not easily identified.

Deal and Kennedy: described culture as way things get done within org. based on

feedback + reward and risk (either drives workers or demotivates)

Kotter and Heskett: 2 types

1. adaptive culture-receptive 2 change

2. inert cultures- resistant 2 change

Goffee & Jones: double S model- 2 dimensions

1. sociability- extent of concern 4 colleagues. Tend 2 focus on people rather than task.

2. solidarity- degree of cohesiveness or unity in org. high= aid harmony + efficiency,

low = self-interest.

The ideal culture when both high sociability and high solidarity.

Geert Hofstede: link between international culture and org culture

power- extent subordinate accept unequal distribution of power


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individualization Vs collectivism- extent people care 4 themselves or be cared

for by network +society, look after others

masculinity vs femininity- extent culture conforms to traitional gender values

e.g. males aggressive, ambition, selfish. Women= family orientated, caring.

Uncertainly avoidance- extent people in org prefer structural routine or flexible

structures

Long-term vs short-term orientation- extent 2 particular culture values

sacrifices 4 benefits in future.

Culture clashes:

Exist when there is conflict between 2 or more cultures within org. e.g in mergers/takeovers,

firm expands overseas and ignorant of international cultural differences.

Difficulties of changing corp culture:

-costs- of implementing change may be very high

-resistance to change

-public opinion- perception of an orgs expected values may also hinder changes-national cultures-may be so strong that any attempts to change the way things done may

cause resistance + resentment.

Business strategy:

Schein argues that cultural understanding is a prerequisite to effective management +

leadership. Management viewed 2 set corp culture, as they get values, rules, benefits + norms.

Several interrelated steps to creating a positive and harmonious culture:

Develop sense of history- past success glorified, helps keep past present and shape

org future

Create sense of unity-by establishing SMART objectives-establish teamworking

culture

Promote sense of value- strong positive culture created.

Encourage sense of responsibility dedicated + responsible 4 work. More likely if

sense of unity

2.7 Employer and Employee RelationsNegotiation is bargaining process whereby 2 or more parties attempt to achieve a mutually

acceptable outcome.

Collective bargaining describes the process of negotiation between management and trade

unions.

Standoff/ deadlock occurs when failure 2 reach satisfactory compromise and therefore

commencement of dispute likely to follow.

3 levels of negotiation:

1. management negotiations day 2 day concerning affairs of business

2. commercial negotiations between different orgs

3. international- extension of commercial negotiations involving considering cross-

boarder cultural and language differences.

Stages of negotiation process:

1.preparation

2.proposal

3.debate


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4.bargaining

5.closing

6.review

Approaches to negotiation:

-avoidance sometimes leads to a lose, lose situation

-level playing field- negotiation both parties being equal

-winner takes all

-the win-win approach

Trade union: org that consists of worker-members who unite to protect rights + welfare of

members.

Issues unions focus on:

improving work conditions

provide legal advice

provide financial support, to those unfairly dismissed or redundant

supporting right of its members to have continuous professional development +training

pressure employers to ensure equiptment + machinery safe 4 use

outcome of negotiation depends on:

experience +skills of representatives

number members + degree of unity within trade union

state of economy-if high unemployment, employees weaker position 2 negotitate

demand for labour derived from demand of product/service

degree of substitution between labour and capital-if continually push 4 pay rise,

business may become more capital intensive.

public and media opinion government involvement

workers objectives:

increased pay or prevention of pay cuts

improved remuneration e.g. fringe benefits, paid holidays

better working conditions

training and development opportunities

enhanced terms of employment

better quality staff facilities

trade unions+individuals methods to achieve objectives: negotiations

go slows

work 2 rule

overtime bans

strike action

a walk out is often used in conjunction with strike action. Workers collectively leave work as

sign of protest. Whatever method of industrial action used by unions and workers, they

attempt to reduce output and efficiency of business, thus competitiveness. Due to decrease in

popularity of trade unions, many organizations have developed staff associations within org.

Employer objectives:

lower cost of production in order to remain competitive


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No strike agreements-rade union negativee image of causing disruptions, memberships

declining, thus no strike agreements help attract more members

Consultation: ask employee view on key issues before negotitation, allowing some influence

in decision making although views may be ignored

Litigation- seek legal remedy for conflict- win-lose situation

Expectations- conflict can occur when unrealistic expectations set

Avoidance- agree 2 disagree= lose-lose situation

2.8 Crisis Management and Contingency planning:Crisis= situation of instability which results in major problems for a business. Crisis

management= response to crisis in order to minimize impact on business.

Crisis planning is about being reactive to changes that may cause damage. Business will

usually find it difficult to plan for. By contrast contingency planning looks at how to deal with

such crisis- a plan for appropriate action. Therefore managers better prepared to deal withcrisis.

Advantages:

Careful planning can help reduce risks since most if not all eventualities have been

accounted for

Reduce impact of crisis- since plan 2 follow

Reassure staff, hence satisfy safety needs- maslow

Necessitates effective communication between management, thus enhancing

productivity and motivation

Disadvantages: Uses up valuable management time and resources, thus increase costs

Crisis may not happen, therefore time and money could be used elsewhere

If plans based on inaccurate or outdated info/data, the inappropriate action may be

taken in crisis

No amount of planning can prevent totally unexpected

Crisis management or disaster recovery requires managers to deal with potential crisis in

swifter manner before they escalate into a real problem for the business, thus media wont

hear about it.

Stages:

1. select a team of staff trained to deal with crisis-senior manager, PR person

2. team analyses +assesses potential threats.

3. develops and implements alternative tactics

4. information and decisions systematically communicated to those involved and

affected

5. resume normal business operations once crisis dealt with

6. reflect on experiences in order to better deal with crisis in future by up-dating plan

some risks uninsurable since difficult to quantify, making planning more challenging.

Strategy:

-important 2 act fast

- important 2 have coordinator 2 work closely with external agenciese.g. lawyers, emergency services, press.


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- Investigate root cause-Ishikawa cause and effect model or pareto

principal

human resources notes (1)

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