Business-Chapter 2

What are some of the impacts of internal communication?

1. Employee motivation and labour productivity - if employees are encouraged to participate, then effective communication will aid motivation. 2. The number and quality of ideas generated by the workforce - if employees are asked for their ideas, then this can assist with problem-solving. 3. Speed of decision-making - the more people who have to be communicated with, the slower the decision-making system. 4. Effective coordination between departments - this will be helped by good communication links between them.

The recruitment and selection process involves the following steps: Exam tip: Don't confuse the job description and the person specification.

1. Establish the exact nature of the job vacancy and draw up a job description 2. Draw up a person specification 3. Prepare a job advertisement reflecting the requirements of the job and the personal qualities looked for 4. Draw up a shortlist of applicants 5. Conduct interviews

Human resource planning involves two main stages. These are:

1. Forecasting the Number of Employees Required, which is dependent upon things such as: - Forecasting demand for the firm's product -The productivity levels of staff -The objectives of the business 2. Forecasting the Skills Required, which is dependent upon things such as: - The pace of technological change in the industry -The need for flexible or multi-skilled staff. Workers can become over-specialised, finding it di cult to adapt when demand conditions change.

What are the key features of communication?

1. sender (or transmitter) of the message 2. clear message 3. appropriate medium (way in which the message is sent) 4. receiver 5. feedback to confirm receipt and understanding.

There is not one leadership style which is best in all circumstances and for all businesses. What are some factors that influence the style of leadership that will be chosen:

1. the training and experience of the workforce and the degree of responsibility that they are prepared to take 2. the amount of time available for consultation and participation 3. the management culture and business background of the managers, e.g. whether they have always worked in an autocratically run organisation 4. personality of managers 5. the importance of the issue - different styles may be used in the same business in different situations

Hierarchal Structure by PRODUCT

An organisational structure based on products usually consists of several parallel teams focusing on a single product or service line. An organisational structure based on product divisions gives a larger business the ability to segregate large sections of the company into semi-autonomous groups.

Human Resource or Workforce Planning

Analyzing and forecasting the numbers of workers and the skills of those workers that will be required by the organisation to achieve its objectives

Handy's Shamrock Organization

The Shamrock Organisation is an organisational structure where a core of essential executives and workers are supported by outside contractors and part-time help.

The effect of demographic change on labour supply

The potential supply of labour to any organisation is affected by demographic changes.

What are the potential drawbacks of Electronic Media in communication technology?

These have the bene t of speed and are often combined with a written record. However, some drawbacks are: 1. They may require staff to be trained, and the young are usually much more profficient in their use than older employees. 2. They reduce social contact and can create a sense of isolation so an important social need may go unsatisfied. Staff may use company time to send personal messages. 3. There are security issues with computer technology and hard copies of important messages are often kept in case of a virus. 4. Can lead to information overload

Horizontally Linked Structure

This structure is primarily found in the IT and high-tech sectors. In a horizontal structure, employees are grouped by function into three areas - planning, building and running. This structure allows the company to respond quickly to changing market conditions and technological advances but may not work as well for companies that produce products with a longer lifespan, or for service industries.

Which HR Functions can be outsourced?

Virtually any HR function can be outsourced. The most commonly outsourced HR activities are: payroll administration, employee recruitment, human resources information systems (e.g. employee records) and legal advice The core activities that should not be outsourced include: change management, strategic HR planning development and maintenance of HR policies, remuneration and benefits strategy, termination of employment/redundancies.

Workforce Audit

a check on the skills and qualifications of all existing employees

Job Description

a detailed list of the key points about the job to be filled, stating all the key tasks and responsibilities of it

Person Specification

a detailed list of the qualities, skills and qualifications that a successful applicant will need to have

Leadership Style #4: Laissez-Faire Leadership

a leadership style that leaves much of the business decision-making to the workforce - a 'hands-off' approach and the reverse of the autocratic style

Leadership Style #3: Democratic Leadership

a leadership style that promotes the active participation of workers in taking decisions

Contract of Employement

a legal document that sets out the terms and conditions governing a worker's job

Level of Hierarchy

a stage of the organisational structure at which the personnel on it have equal status and authority

Hierarchal Structure

a structure in which power and responsibility are clearly specified and allocated to individuals according to their standing or position in the hierarchy. This hierarchical type of structure can be organised by product, function or region.

Leadership Style #1: Autocratic Leadership

a style of leadership that keeps all decision-making at the centre of the organisation.

Leadership Style #2: Paternalistic Leadership

a type of fatherly style typically used by dominant males where their power is used to control and protect subordinate employees who are expected to be loyal and obedient

Hard HRM

an approach to managing staff that focuses on cutting costs, e.g. using temporary and part-time employment contracts, offering maximum flexibility but with minimum training costs

Soft HRM

an approach to managing staff that focuses on developing staff so that they reach self-fulfilment and are motivated to work hard and stay with the business

Matrix Structure

an organisational structure that creates project teams that cut across traditional functional departments. It aims to eliminate many of the problems associated with the hierarchical structure. This method of organising a business is task- or project-focused. Instead of highlighting the role or status of individuals it gathers together a team of specialists with the objective of completing a task or a project successfully.

Bureaucracy

an organisational system with standardised procedures and rules

Dismissal

being removed or 'sacked' from a job due to incompetence or breach of discipline

Extrinsinc Motivation

comes from external rewards associated with working on a task, for example pay and other benefits

Intrinsinc Motivation

comes from the satisfaction derived from working on and completing a task

Decentralization

decision-making powers are passed down the organisation to empower subordinates and regional/ product managers

Leadership Style #5: Situational Leadership

effective leadership varies with the task in hand and situational leaders adapt their leadership style to each situation

Flexi-Time Contract

employment contract that allows staff to be called in at times most convenient to employers and employees, e.g. at busy times of day

Part-Time Employment Contract

employment contract that is for less than the normal full working week of, say, 40 hours, e.g. eight hours per week

Temporary Employment Contract

employment contract that lasts for a fixed time period, e.g. six months

Unfair Dismissal

ending a worker's employment contract for a reason that the law regards as being unfair

Geographical Mobility of Labour

extent to which workers are willing and able to move geographical region to take up new jobs. A high degree of geographical mobility, especially between rural and urban areas, can lead to overcrowding and very poor living conditions in towns and cities.

Occupational Mobility of Labour

extent to which workers are willing and able to move to different jobs requiring different skills. High occupational mobility of labor helps a country achieve economic efficiency. A mobile workforce means that if jobs are lost in one industry or region, workers are willing and able to move to other jobs and/or other occupations.

Intranet

internal computer networks built on internet technologies

Induction Training

introductory training programme to familiarise new recruits with the systems used in the business and the layout of the business site; this form of training is usually on-the-job

Centralization

keeping all of the important decision- making powers within head office or the centre of the organisation

Ethical Leadership

leading by knowing and doing what is 'right'

Labour Turnover

measures the rate at which employees are leaving an organisation.

Human Resource or Workforce Plan

numbers of workers and skills of those workers required over a future time period

Flat (Horizontal) Structure

one with few levels of hierarchy and wide spans of control

Tall (Vertical) Structure

one with many levels of hierarchy and, usually, narrow spans of control. Some problems: 1. Communication through the organisation can become slow with messages becoming distorted 2. Spans of control are likely to be narrow 3. There is likely to be a greater sense of remoteness, among those on lower levels, from the decision-making power at the top.

Delegation

passing authority down the organisational hierarchy

Delayering

removal of one or more of the levels of hierarchy from an organisational structure

Manager

responsible for setting objectives, organising resources and motivating staff so that the organisation's aims are met.

Re-Shoring (In-Shoring)

reversal of off-shoring; the transfer of a business process or operation back to its country of origin

Information Overload

so much information and so many messages are received that the most important ones cannot be easily identified and quickly acted on - most likely to occur with electronic media

What are examples of different cultural approaches in business?

speed of contract negotiations, level of formality between business partners, and subtle versus direct conversation about money.

Teleworking

staff working from home but keeping contact with the office by means of modern IT communications

Leadership

the art of motivating a group of people towards achieving a common objective

Effective Communication

the exchange of information between people or groups, with feedback

Organizational Structure

the internal, formal framework of a business that shows the way in which management is organised and linked together and how authority is passed through the organisation

Motivation

the intrinsic and extrinsic factors that stimulate people to take actions that lead to achieving a goal

Span of Control

the number of subordinates reporting directly to a manager

Accountability

the obligation of an individual to account for his or her activities and to disclose results in a transparent way

Employee Appraisal

the process of assessing the effectiveness of an employee judged against preset objectives

Recruitment

the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates for the job and selecting the best one

Offshoring

the relocation of a business process done in one country to the same or another company in another country

Feedback

the response to a message by the receiver

Human Resource Management

the strategic approach to the effective management of an organisation's workers so that they help the business achieve its objectives and gain a competitive advantage

Portfolio Working

the working pattern of following several simultaneous employments at any one time

Chain of Command

this is the route through which authority is passed down an organisation - from the chief executive and the board of directors

Outsourcing

using another business (a 'third party')to undertake a part of the production process rather than doing it within the business using the firm's own employees

Redundancy

when a job is no longer required so the employee doing this job becomes redundant through no fault of his or her own

Training

work-related education to increase workforce skills and efficiency

What are the main reasons for changes in employment patterns and practices?

1. focus on competitiveness, driven by competitive pressures from globalisation, by cutting overhead labour costs 2. need for greater labour flexibility with the rapid pace of technological change 3. greater opportunities for outsourcing, especially in low-wage economies 4. changing social and demographic patterns, e.g. increasing number of single parents for whom full-time employment might be di cult to t in with their lifestyles.

What are some factors determine the internal structure of the organisation?

1. The size of the business and the number of employees. 2. The style of leadership and culture of management. 3. Retrenchment caused by economic recession or increased competition might lead to delayering to reduce overhead costs - this would reduce levels of hierarchy and shorten the chain of command. 4. Corporate objectives - for example, if one of the long-term objectives of the business is to expand in other countries, then the organisational structure must be adapted to allow for some decentralisation. 5. New technologies-especially IT-can lead to a reduced need for certain employee types, e.g. managers sending messages by email rather than by letters typed by secretaries.

What are characteristics of good leaders?

1. a desire to succeed and natural self-confidence that they will succeed 2. ability to think beyond the obvious - to be creative - and to encourage others to do the same 3. multitalented enabling them to understand discussions about a wide range of issues affecting their business 4. incisive mind that enables the heart of an issue to be identified rather than unnecessary details.

What are some indicators of ethical leadership?

1. The ability to ignore personal interests for the sake of the organisation, the needs of the employees and the greater good of the community 2. A willingness to encourage and consider seriously feedback, opinions different from the manager's own, and challenges to the manager's ideas and proposed decisions 3. The encouragement of leadership in others 4. Making the consideration and discussion of ethics and ethical questions and issues part of the culture of the organisation 5. Understanding the importance of leadership and sharing it as much as possible and exercising it carefully to the bene t of employees, the business and society. These points suggest that ethical leaders are likely to be more paternalistic or democratic than autocratic.

Types of Appraisal

1. Formative appraisal is based on a range of formal and informal assessment methods employed by supervisors not only to monitor an employee's progress but also to support and provide guidance for improvement. It typically involves qualitative feedback (rather than scores or grades for achievement) that focuses on the details of performance and ways of improving it. 2. The goal of summative assessment is to measure the level of an employee's success or profficiency in meeting predetermined benchmarks. To be effective, these benchmarks should have been discussed and agreed with each employee before the time period over which assessment is to be made. 3. 360 Degree Feedback uses many people who come into contact with the employee as sources of appraisal feedback information. These people often include: employee's 'line' work colleagues and peers and subordinates 4. Employee self-appraisal, within a performance management or annual performance review system, involves asking the employee to self-evaluate his or her job performance. Typically, prior to meeting with an employee, the supervisor will ask the employee to complete an evaluation form.

Innovation interrelates with HR strategy in two ways. What are these?

1. Innovation in HRM: HRM has been transformed in recent years by innovations in managing people.These include: team-working, regular appraisals, quality circles, information sharing, empowerment, performance-related pay and job enrichment. Many of these innovations are based on the principle that employees have much more to o er than their physical qualities. 2. Innovation through HRM: Many analysts now argue that HRM can influence the success of a strategy of innovation. The approaches to managing human resources that are most likely to lead to a culture of innovation within an organisation include: -extensive and continuous training programmes -regular appraisals to identify training needs and career plans -delegation to junior managers to give them the authority

Henry Mintzberg identified ten roles common to the work of all managers. These are divided into three groups, which are:

1. Interpersonal roles - dealing with and motivating staff at all levels of the organisation 2. Informational roles - acting as a source, receiver and transmitter of information 3. Decisional roles - taking decisions and allocating resources to meet the organisation's objectives.

What are some ethical considerations?

1. Lack of cultural awareness: HR managers must prepare employees for appropriate conduct before they are sent to their overseas destination.Training and cultural classes help to educate employees about different customs and practices in other countries. 2. Bribery: Most countries have laws that make bribes illegal in business transactions. However, these laws are weakly applied in some countries and in any case they are unlikely to cover all of the range of payments that international businesses encounter - or are asked to make. 'Facilitation payments' (some observers would refer to these as bribes) may be required to operate in a foreign country. 3. Pay: Another important ethical consideration is the relative pay levels for each country. Multinationals often have offices in both developed and developing countries where the salaries are quite different.

What are the main types of training?

1. On-the-Job Training: involves instruction at the place of work. This is often conducted by either the HR managers or departmental training officers. 2. Off-the-Job Training: entails any course of instruction away from the place of work.This could be a specialist training centre belonging to the rm itself or a course organised by an outside body 3. Cognitive Training: Usually cognitive training consists of a variety of exercises designed to help improve performance in areas such as sustaining attention, thinking before acting, visual and auditory processing of information, listening and reading. 4. Behaviroural Skills Training: is designed to improve an individual's ability to communicate and interact with others both inside and external to the organisation

F.W Taylor scientific approach identified seven steps to improving worker productivity. What are these?

1. Select workers to perform a task. 2. Observe them performing the task and note the key elements of it. 3. Record the time taken to do each part of the task. 4. Identify the quickest method recorded. 5. Train all workers in the quickest method and do not allow them to make any changes to it. 6. Supervise workers to ensure that this 'best way' is being carried out and time them to check that the set time is not being exceeded. 7. Pay workers on the basis of results - based on the theory of 'economic man'.

What are the five functions of a manager?

1. Setting objectives and planning - all good managers think ahead. Senior management will establish overall strategic objectives and these will be translated into tactical objectives for the less senior managerial staff. 2. Organising resources to meet the objectives - Senior managers will ensure that the structure of the business allows for a clear division of tasks and that each section or department is organised to allow them to work towards the common objectives. 3. Directing and motivating staff - this involves guiding, leading and overseeing employees to ensure that organisational goals are met. 4. Coordinating activities - The goals of each branch, division, region and even all sta must be welded together to achieve a common sense of purpose. 5. Controlling and measuring performance against targets - management by objectives establishes targets for all groups, divisions and individuals. It is management's responsibility to appraise performance against targets and to take action if underperformance occurs.

Advantages of part-time and flexible contracts for the business/workers

For the Business: 1. Employees can be required to work at particularly busy periods of the day but not during the slack times. This will reduce overhead costs to a business. This flexibility offers firms real competitive advantages, as they can give good customer service without substantial cost increases. 2. More employees are available to be called upon should there be sickness or other causes of absenteeism. 3. The efficiency of employees can be measured before they are offered a full-time contract. 4. By using teleworking from home for some groups of workers, even further savings in overhead costs can be made, such as smaller office buildings. For Workers: 1. This contract could be ideal for certain types of workers, e.g. students, who do not wish to work a full week and those wishing to improve their work-life balance. 2. They may be able to combine two jobs with different firms, giving greater variety to their working lives. 3. Teleworking allows workers to organise their own working day at home, while meeting preset targets and deadlines and keeping in contact with head office via the internet.

Disadvantages of part-time and flexible contracts for the business/workers

For the Business: 1. There will be more employees to 'manage' than if they were all full time. 2. Effective communication will become much more difficult, not just because there will be more employees in total but also because it may be impossible to hold meetings with all workers at any one time. 3. Motivation levels may be adversely affected because part-time workers may feel less involved and committed to the business compared to full-time workers. 4. Some managers fear that teleworking will lead to lower productivity as workers cannot be monitored so easily as when they are present in the office. For Workers: 1. They will be earning less than full-time workers. 2. They may be paid at a lower rate than full-time workers. 3. The security of employment and other working conditions are often inferior to those of full-time workers. This is now changing in some countries. In all European Union member states, for example, the law now gives as many employment rights to part-time as to full-time workers. This is still not the case in other regions of the world. 4. Teleworking and temporary/ flexi-time contracts can lead to much less social contact with fellow workers - social interaction is an important human need.

What is the difference between Low-Context and High-Context Cultures?

High-context cultures (Mediterranean, Slav, Central European, Latin American,African, Arab,Asian,American-Indian) leave much of the message unspecified, to be understood through context, non-verbal cues, and between-the-lines interpretation of what is actually said. By contrast, low-context cultures (most Germanic and English-speaking countries) expect messages to be explicit and speci c.

What is the impact of Information and Communications Technology (ICT)?

ICT is impacting on the employee numbers and labour skill requirements in many industries. Some jobs are being lost forever whilst other opportunities are being created for flexible and ICT-trained employees. ICT has changed working life in many ways. Workers no longer need to share a location to share information and work together. ICT has simplified and streamlined work in offices and factories and this has required HR managers to adapt workforce plans to reflect changing employee needs of organisations.

What is the difference between Sequential and Synchronic Cultures?

In sequential cultures (like North America, the UK, Germany, Sweden and the Netherlands), business people give full attention to one agenda item after another. In synchronic cultures (including South America, southern Europe and Asia) the flow of time is viewed as a sort of circle, with the past, present and future all interrelated. This viewpoint in influences how organisations in those cultures approach deadlines, strategic thinking, investments and the concept of 'long-term' planning.

Drawbacks and potential benefits of high labour turnover

Some industries typically have higher labour turnover rates than others. The fact that so many students, looking for part-time and temporary employment, nd jobs in fast-food restaurants leads to labour turnover rates that can exceed 100% in one year. In other organisations, labour turnover rates can be very low; this is typical in law practices and in scientific research.