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 selectionEmployee communication and engagement (participation) to increase employee retention Training and development Leadership

Labour turnover & staff retention

Labour turnover & staff retention

Labour turnover refers to the proportion of aworkforce that leave during a period of time (usuallyone 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 itsworkers.

Reasons for high labour turnover

Poor leadership and management leading to low moraleLack of training and developmentFew opportunities for career progressionIneffective recruitment and selection procedures leading to inappropriate workers being appointedPoor working conditions Poor communication

Drawbacks of high labour turnover

The disadvantages of having a large proportion of staffleaving each year include:The cost of recruiting replacement workersThe cost of training the new workersLoss of productivity whilst replacements are foundLoss of experienced workersNegative impact on reputation

Improving staff retention

Financial methods of motivation e.g.BonusesProfit shareFringe benefitsNon financial methods of motivation e.g.Employee engagement and empowermentTraining and developmentPromotion opportunitiesImproved Human Resource Management procedures

Training and development

Training and development

Training provides work related education whichhelps employees to acquire the knowledge and skillsneeded to carry out their jobs

Development helps workers develop and broadentheir capabilities to assist their career progress.

Importance of T&D

A well trained workforce leads to:Greater productivityGood quality products and servicesMore motivated staffLower labour turnover and absenteeismGreater ability to deal with changeMore flexibility

Leadership styles

Leadership & managementAccording to Peter Drucker:Management is doing things right; leadership is doing the right things.

LeadershipManagementThe act of establishing direction, purpose and the necessary capabilities among a group of people

Leaders have certain qualities such as:VisionThe ability to influence othersOrganising human and physical resources to achieve business aims and objectives

Managers perform a range of functions such as:Setting objectivesCo-ordinating activitiesReviewing performance

Autocratic (authoritarian)

Features of autocratic management:The manager retains control and takes all the decisionsThere is little consultation with workersSubordinates are expected to obey instructionsBenefits:Drawbacks:Autocratic management allows quick decisions to be madeOften necessary during crisis situationsCan ensure that the direction of the organisation remains in line with organisational objectivesWorkers may become dependent on the managersLittle creativity is encouragedEmployees may not be given the opportunity to express their ideasMay 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 directorsInformation is shared with team membersA single-status culture is encouragedBenefits:Drawbacks:Democratic management can gain commitment, especially during periods of changeEmployees are more likely to buy into decisionsMotivation may improveDecision making can become slower

Laissez-faire

Features of laissez-faire management:Little direction is given to the workersBroad guidelines may be provided but the day-to-day influence of managers is limitedSubordinates are free to make decisions

Benefits:Drawbacks:Useful for skilled, creative and well-trained employeesCan motivate workers as they have more control over their working livesDecision-making can become very time-consuming and may lack directionMay lead to chaos if good teamwork, feedback and working relationships are not evident

Communication

What is communication

Communication refers to the transmission ofinformation from a sender to a receiver, via a givenmedium.

Two-way communication involves some kind offeedback 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 hinderedMotivating workers and creating employee engagement through two-way communicationCo-ordinating the activities of workersDeveloping workers to progress their career within the business

Methods of communicationWithin businesses a huge range of information iscommunicated using a range of methods e.g.The financial performance is communicated through formal, written reportsInstructions are passed through face-to-face conversationsInformation is sent via email or shared using an internal intranet system

Classifying communicationVerbal 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 referenceWritten e.g. letters and emails. 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 languageVisual/Images e.g. signs and posters. Visual communications may have more impact than written messages.

Classifying communicationInternal communication occurs within the firm e.g. between the marketing and finance departmentsExternal communication occurs between the firm and someone outside the business e.g. with a customer or supplierFormal communications these use methods which are officially recognised by the organisation e.g. the weekly newsletter, letters and reportsInformal communications these methods are not officially recognised e.g. a chat by the water cooler

Problems of poor communicationPoor communication can lead to:Low morale and poorly motivated workersDifficulty implementing changeLack of overall direction for the firmSlow decision makingPressures from stakeholders who wish to be kept informedMissed opportunities.

***