Business 9609

Revision notes with

Sir Muzammil Ameer
UNIT 2: Human Resource Management
SIR MUZAMMIL BUSINESS SCHOOL
 Role of HRM in meeting business objectives

 Training of workers

 Workforce planning

 Motivating workforce
 Workforce planning

 A process where a business identifies how many workers and what are skills
required within an organization to achieve business objectives
 Effective workforce planning helps to achieve business objectives and reduce
costs
 Labour turn over

= no of employees left / total no of employees *100

Implications of high labour turnover for a business
 bad reputation
 business operations can disrupt
 existing employees may get stressed because of the workload

Implications of low labour turnover for a business

 good reputation
 objectives can be achieved
 motivated workforce
 Recruitment process of employees

Job description (identify the tasks, responsibilities for a vacant post of applicant)
Person specification (Identify skills, experiences, qualities and qualifications suitable
for the applicant)
Recruitment methods (job advertisements, employment agencies, online recruitment)
Selection methods:
 curriculum vitae
 application forms
 interviews
 testing
 assessment centres
 Internal vs external recruitment
A process when someone is selected for the vacant post who is already an existing employee of the
business is known as internal recruitment
 Know how about company rules and regulations so save any induction training cost
 Saves the cost of job advertisement
× May demotivate other employees
× Already skills have been tested so no new ideas
A process when someone is selected for a vacant post outside the organization is known as external
recruitment
 New ideas can bring
 More wide variety in the selection
× Costly and time consuming
× Not aware of business policies so may need training
 Employment contracts

A written document provided to new

employees from employers that shows
terms and conditions related to the
new job. It acts as a legal document
and so no parties can exploit to each
other
 Redundancy vs. dismissal

 Redundancy occurs when someone is said to leave the job

when no more of his services are needed by the business. It
can be voluntary and involuntary

 Dismissal occurs when someone is said to leave the job

because of his own fault. i.e did not follow company rules;
absenteeism rate is high. But it can also be fair or unfair
 Relationship between HRM, employee morale
and welfare in a business

 Employee morale is the positive attitude, satisfaction, and overall

outlook of employees during their association with a business
 Employee welfare is a term that includes a broad range of
benefits and services that an employer may offer to its
employees. It can include things like health insurance or paid
time off. Employee welfare can also include things like on-site
daycare, fitness centers, and subsidized meals.
 HRM can build an effective employee welfare system and find
ways to boost employee moral high. It depends on organization
culture and size or needs
 Concept of work life balance

 To create and provide such a supporting working environment

within a business for employees where they can make their
work and life in equilibrium in terms of work and other
important aspects of life i.e. time for friends and family, rest
for a good healthy mind. It means
 Meeting job deadlines while still having time for friends and
hobbies
 Getting adequate sleep and eating healthy
 No worry about work when you're at home
 Impact of diversity and equality in the workplace
on a business
 Equality is about making sure everyone has equal opportunity and is treated the
same, regardless of their characteristics. Diversity, on the other hand, is more
than equality. It’s about creating a culture that values individual differences for the
benefit of individuals, businesses and society. For a workplace to be diverse, it
will typically include a range of people with differences between them, such as
age, ethnicity, religion, beliefs, race, or gender
 Absences decrease when employees are happy at work
 Teamwork and collaboration thrive in a diverse environment
 Employee loyalty and retention is strong when employees are understood
 Discrimination claims are less likely to occur with the correct policies and
procedures in place
 Training and its types

 Induction training is given to new employees where they

are being informed about their job description, their role for
the business and company rules and regulations etc.
 On the job training is provided at the work place where a
senior employee usually provides any details about any job
 Off the job training is provided outside the workplace
where someone outside the organization usually provides
such training to workers/employees
 Impact of training and development on a business

 Increases skills so fewer mistakes

 More efficiency
 Multi-skills and flexibility
× Costly
× May be ineffective
× Employee may leave after training
 Benefits of cooperation between management and the
workforce

 Better communication

 Friendly working environment

 Motivated workforce
 Impact on employers and employees of trade union

Group of employees within a business who joins together for

their common interest where their rights are protected
Benefits to employee
 Helps to protect rights of employees
 Helps in unfair dismissal
Benefits to employer
 Time saving for an employer in communication
 Motivated workforce
 Collective bargaining

A process of negotiation
between employer and
employee on any disputes
within a business
 Motivation and its Benefits to business

 Motivation is an internal feelings that make someone

with a business do jobs happily
Benefits
 Reduce labour turnover
 More efficiency in performance
 Good reputation
Taylor theory on motivation

Started as a Factory Labourer in America in the 1880s

Rose to Chief Engineer
Conducted Experiments on how Labour Productivity could
be increased
Ideas and Findings published in 1911.
Taylor did lots of work in factories and believed that workers
should be told how to do a job quickly
He believed they should be closely monitored & told what to
do
He devised a PIECE RATE system
He believed workers could only be motivated by money
Elton Mayo theory on motivation

He suggested that motivation at work was promoted by factors such

as:
Better communication between managers and workers
Greater manager involvement in employees’ working lives
Working in groups or teams
Key summary for Mayo
Workers motivated by having social needs met
Workers should work in teams
Managers should have greater involvement in employee's working life
More two-way communication between managers and workers
Maslow theory on motivation
Herzberg theory on motivation

 He described two factors theory, motivation

factors, and hygiene factors.
 Motivation factors include those factors that
can motivate someone in the workplace. i.e.
achievement, and work recognition.
 Hygiene factors include those factors that can
demotivate someone at the workplace but
cannot motivate workers. i.e. salary, relationship
with peers
McClelland theory on motivation

These are the main three needs

 The Need for Achievement (the need to meet
given goals and objectives)
 The Need for Power (the need to have power
or influence over the actions of others)
 The Need for Affiliation (the need to be liked
and to work in a supportive environment)
 These are the Motivators that are present in
varying degrees
Process theory (Vroom) of motivation

 Vroom’s theory of motivation is based on the

belief that employees are prepared to work hard if
they feel that their efforts will be suitably
rewarded.
 Vroom realized that an employee's performance
is based on individual factors such as personality,
skills, knowledge, experience, and abilities. He
stated that effort, performance, and motivation
are linked in a person's motivation.
 Motivation methods

 Financial factors or motivators

 Non-financial factors or motivators

 Financial motivators

Payment methods
 Time-based
 Salary
 piece rates
 Commission
 Bonuses
 Profit sharing
 Performance-related pay
 Non financial motivators

Different types of non-financial motivators

 Training
 Opportunities for promotion
 Status
 Job re-design
 Team working
 Empowerment
 Participation in decision making
 Job enrichment
 Ways in which employees can participate in the
management and control of business activity

 Meetings

 Quality circles

 Empowerment
 Traditional manager functions

 Planning for the future/objectives

 Organizing the resources base on
planning,
 Directing to workforce
 Controlling the overall organization
 Fayol five role of management

 Planning
 Organizing
 Commanding
 coordinating
 controlling
 Mintzberg ten role of management

 Interpersonal role
(figurehead, leader, liaison)
 Informational role (monitor,
disseminator, spokesperson
 Decisional role (resource
allocator, disturbance
handler, entrepreneur,
negotiator)
 Contribution of managers to business performance

 Achieve business objectives

 Resource planning

 Motivate workforce
 Management styles

 Autocratic management style where managers take decisions without

consultation of their workers. They think they are wiser and experienced so
can do better decisions
 Democratic management style where managers consult from workers, asks
their input towards any decision then do decision making.
 Laissez-faire management style where managers empower the workforce to
do decisions as they think workers can do better decisions so they can focus
on other important issues.
 Paternalistic management style where managers sometimes ask from
workers to participate in decision making and sometimes do decision making
by themselves
 McGregor’s Theory X and Theory Y managers

McGregor’s theory outlines how managers might view their employees

Theory X:
 Employees do not like work and will avoid it if they can
 They need to be told what to do and to be closely supervised
 They do not want responsibility and will avoid this and perhaps even resent this
Theory Y:
 Employees enjoy work and can derive job satisfaction from their work
 Employees can be creative and are willing to contribute ideas
 They enjoy responsibility and might even seek it if they are recognized and rewarded
appropriately.
 Conclusion

 Attempt past paper questions in new format 2023

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