Human Resource Management

Human Resources Managing employee relationships is the role of the Human Resource department Human Resource Management is a process of valuing and developing people at work, this includes:  Recruitment and selection  Employee communication and engagement (participation) to increase employee retention  Training and development  Leadership

Labour turnover & staff retention

Labour turnover refers to the proportion of a workforce that leave during a period of time (usually one year) Labour turnover = number of staff leaving during the period x 100 average number of staff Staff retention refers to the ability of a firm to keep its workers.

Reasons for high labour turnover Poor leadership and management leading to low morale Lack of training and development Few opportunities for career progression Ineffective recruitment and selection procedures leading to inappropriate workers being appointed Poor working conditions Poor communication

Drawbacks of high labour turnover The disadvantages of having a large proportion of staff leaving each year include: The cost of recruiting replacement workers The cost of training the new workers Loss of productivity whilst replacements are found Loss of experienced workers Negative impact on reputation

Improving staff retention Financial methods of motivation e.g.  Bonuses  Profit share  Fringe benefits Non financial methods of motivation e.g.  Employee engagement and empowerment  Training and development  Promotion opportunities Improved Human Resource Management procedures

Training and development

Training provides work related education which helps employees to acquire the knowledge and skills needed to carry out their jobs Development helps workers develop and broaden their capabilities to assist their career progress.

Importance of T&D A well trained workforce leads to: Greater productivity Good quality products and services More motivated staff Lower labour turnover and absenteeism Greater ability to deal with change More flexibility

Leadership styles

Leadership & management LeadershipManagement The act of establishing direction, purpose and the necessary capabilities among a group of people Leaders have certain qualities such as: Vision The ability to influence others Organising human and physical resources to achieve business aims and objectives Managers perform a range of functions such as: Setting objectives Co-ordinating activities Reviewing performance According to Peter Drucker: ‘Management is doing things right; leadership is doing the right things.’

Autocratic (authoritarian) Features of autocratic management: The manager retains control and takes all the decisions There is little consultation with workers Subordinates are expected to obey instructions Benefits:Drawbacks: Autocratic management allows quick decisions to be made Often necessary during crisis situations Can ensure that the direction of the organisation remains in line with organisational objectives Workers may become dependent on the managers Little creativity is encouraged Employees may not be given the opportunity to express their ideas May lead to workers feeling ignored or demotivated

Democratic Features of democratic management: Employees are encouraged to participate in and influence decision making e.g. through suggestions schemes, quality circles and worker directors Information is shared with team members A single-status culture is encouraged Benefits:Drawbacks: Democratic management can gain commitment, especially during periods of change Employees are more likely to buy into decisions Motivation may improve Decision making can become slower

Laissez-faire Features of laissez-faire management: Little direction is given to the workers Broad guidelines may be provided but the day-to-day influence of managers is limited Subordinates are free to make decisions Benefits:Drawbacks: Useful for skilled, creative and well-trained employees Can motivate workers as they have more control over their working lives Decision-making can become very time-consuming and may lack direction May lead to chaos if good teamwork, feedback and working relationships are not evident

Communication

What is communication Communication refers to the transmission of information from a sender to a receiver, via a given medium. Two-way communication involves some kind of feedback from the receiver back to the sender.

Importance of effective communication Effective HRM requires effective communication for: Business decision making – without the relevant information decision making can be hindered Motivating workers and creating employee engagement through two-way communication Co-ordinating the activities of workers Developing workers to progress their career within the business

Methods of communication Within businesses a huge range of information is communicated using a range of methods e.g. The financial performance is communicated through formal, written reports Instructions are passed through face-to-face conversations Information is sent via or shared using an internal intranet system

Classifying communication Verbal e.g. face-to-face and telephone conversations. Understanding may be checked straight away and body language may be used, but there is no permanent record of the communication for future reference Written e.g. letters and s. Written communications can be kept and re-read if necessary however meaning can sometimes be misconstrued as it is not possible to check understanding or convey any body language Visual/Images e.g. signs and posters. Visual communications may have more impact than written messages.

Classifying communication Internal communication – occurs within the firm e.g. between the marketing and finance departments External communication – occurs between the firm and someone outside the business e.g. with a customer or supplier Formal communications – these use methods which are officially recognised by the organisation e.g. the weekly newsletter, letters and reports Informal communications – these methods are not officially recognised e.g. a chat by the water cooler

Problems of poor communication Poor communication can lead to:  Low morale and poorly motivated workers  Difficulty implementing change  Lack of overall direction for the firm  Slow decision making  Pressures from stakeholders who wish to be kept informed  Missed opportunities.