Unit 2: Human Resource Management

Chapter 13 : Organisational Structure

ORGANISATIONAL STRUCTURE

EVENTUALLY when the business grows larger and employs many people, they
will have to create an organisational chart to work out a clear structure for
their company.

ORGANISATIONAL CHART
-The internal, formal framework of a business that shows the way in which
management is organised and linked together and how authority is passed
and
lines of communication. Organisational structure is represented primarily by
means of a graphic illustration called an organisational chart or organogram.
Organisational chart is a diagram or chart which records the format structures
and relationships within an organisation. The relative positioning of individuals
within boxes on the chart indicates broad working relationships while lines

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between boxes designate formal lines of communication between the
individuals.

IMPORTANCE OF AN ORGANISATIONAL STUCTURE

1) Who reports to whom the chain of command? It shows employees in

one level of the organisation who they would report to who they should
receive instructions from.
2) How many subordinates work for each manager _ the span of control?
3) Channels of official communication through the solid lines that connect
each job (box). If an employee wants to discuss an issue, the
organisational chart will show them the person who they are
answerable to and therefore the person who should be the first one that
any issues should be discussed with.
4) How the company is structured by function, customer, product etc.
5) The work being done in each job the label on the boxes. It allows
employees to know where their post fits in the business structure.
6) The hierarchy of decision making. It shows who the decision makers in
an organisation are and who has the most authority.
7) Types of authority relationships solid lines illustrate line authority and
dotted lines show staff and functional authority. Authority refers to the
power or right to control or command the action of others

Business objectives and organisational structure

An organisation consists of any number of individuals who work together to

achieve the mission of the organisation. Each individual fills a certain role

within the structure, performing tasks that help achieve the objectives set by

management. Each person in the organisation needs to have a specific role

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defined, including a certain amount of personal accountability to complete

tasks that help the organisation reach its goals.

New competitors enter the industry

A more competitive market will demand a quicker-acting and more flexible

structure. The key point here is flexibility. An organisational structure is not fixed

for all time. It needs to adapt and be flexible enough to allow the business to

be responsive to meet changing conditions, including different objectives. This

flexibility will allow the structure to meet the needs of the business as they

change over time.

The business grows and develops

An organisational structure should allow and assist a business to increase its

scale and to change in other ways to enable it to meet its corporate

objectives. The structure used when a business seeks to grow and develop

should allow the organisation to adapt, to produce new products or to

operate in different markets.

As a business grows, its chain of command from those at the top of the

organisation to those at the bottom is likely to lengthen. This may require a

structure that is flatter, with fewer layers of authority between senior and junior

employees. This will make communication easier and more reliable, ensuring

that decisions are more likely to be understood and acted upon and that

senior managers can readily gather information from below. If a structure has

too many layers of authority, decisions may be slower and the organisation

may become less competitive as it becomes slower to respond to changes in

the market and other external changes.

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Business objectives change

If one of the long-term objectives of the business is to increase sales in other

countries, then the organisational structure must be adapted to create a

regional marketing department. If the objective becomes one of making

innovative products using the latest technology, then the business structure

must include a research and development department. Structure must reflect

the objectives of the business.

Intrapreneurship is being encouraged

Many businesses are now seeing intrapreneurship as a way of giving them a

competitive advantage. Traditional bureaucratic hierarchies are often poor at

innovation as they are inflexible, focused on topdown communication and do

not encourage teamworking between departments. Structural changes are

needed to encourage intrapreneurs:

 Intrapreneurial teams or task forces from different departments and

divisions should be created. These will help to stimulate new ideas that
are not just focused on one department.
 High levels of delegation and trust must be shown, with only minimum
direct management control on a day-by-day basis.
 Flexibility of team membership is important. A team should be able to
call on a specialist for a short or a long period to help with its project.

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Types of Organisational structure

The functional structure

This type of structure has already been referred to above. A functional

structure splits an organisation into departments based on their major area of
responsibility. The most common departments in a business are marketing,
production (or operations), finance and human resources. Each of these
departments is led by a functional manager. All authority rests with this
departmental head. Other employees are grouped according to their role. For
example, in the marketing department there might be sales managers, market
researchers and promotions managers. This type of structure is usually also
organised hierarchically.

ADVANTAGES
 Employees often display a high level of departmental loyalty and pride
in the work of their department.
 It encourages employees to become specialists and this can increase
efficiency and productivity.
 Departments are led by managers who are specialists in the functional
area.

DISADVANTAGES
 The structure is a vertical one and this often does not allow for good
connections between departments.
 Coordination between departments is therefore difficult, for example,
when developing a new major project.

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  Communication flows through the department heads to the top
management, so employees may feel remote from senior
management.
 There might be competition between departments, which may not
benefit the whole organisation. For example, competition for financial
resources is based on getting the most for the department and not
necessarily considering what is best for the business as a whole.

HIERARCHICAL STRUCTURE BUREAUCRATIC STRUCTURE)

Refers to a structure that is designed to represent the various levels of

authority and to outline the chain of command and channels of
communication. It is also known as pyramid structure.

Hierarchy refers to the order of the levels of management in a firm from the
highest to the lowest ranks. This is a structure where there are different layers
of managers with fewer and fewer workers on each higher level.

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ADVANTAGES
 Employees are given responsibilities, proper roles to perform and
procedures to follow
 Specialisation and economies of scale can be achieved
 It is a proper departmental structure
 Clearly defined chain of command
 The role of each employee is clear and well defined

DISADVANTAGES
 Promotes one-way communication
 Lack of co-ordination can occur because of fewer horizontal links
 Managers are generally accused of having tunnel vision (narrow vision)

The Matrix Structure

-an organisational structure that creates project teams that cut across
traditional functional departments. It is only made for a certain project. It
crosses departmental boundaries bring together all of the skills and expertise
required to carry out a particular project. It combines functional managers
with an overlay of project managers. An employee will end up reporting to two
or more superiors. These are 2 chains of command. It is applicable in high-
technology, project-based industries such as Aerospace, Government
contracting R & D etc.

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ADVANTAGES
 it allows the best employees to be brought together to complete a task
or project
 leads to co-coordinated effort since it focuses on functional expertise
on a project
 it encourages co-operation and communication between departments
within an organisation
 Highly skilled employees can be used to the maximum as they can be
moved from one project to another as required

DISADVANTAGES
 power struggle can occur. Each project leader will usually claim that the
work for their project must take priority
 costly to implement
 creates problems of control as the employees are answerable to more
than one boss

AUTHORITY
-is the legitimate exercise of power which in turn is the ability to exercise
influence over people or situations

TYPES OF AUTHORITY
a) Line Authority/ Line management: -is a direct authority as it involves
a right to give orders and have decisions implemented. The mangers
have direct authority over and responsibility for the employees on the
level immediately below them

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 b) Staff Authority/ Staff management: -it does not provide a right to
command. It is for the advisory and supportive purposes e.g legal
department of a business. Employees who might offer specialist advice
to any department without having any authority or responsibility for
anyone in the department that they are advising

c) Functional Authority: -it is a right to give orders in a department

other than your own. E.g on specific projects some specialists can be
hired. For instance, calling a finance person to supervise a project

DELEGATION
-passing of authority down the organisational hierarchy. It is the act of
assigning duties to subordinates. Authority to perform a task is passed to an
employee in a lower level of authority. It is done to enable top managers to
concentrate on major issues especially as the organization grows in size and
complexity. Delegation of decision making should be done through giving
subordinates sufficient authority to carry out the tasks.

-Delegation can be achieved if:

1. The subordinate possesses sufficient skills and experience
2. The objective is defined and understood
3. The subordinate is given sufficient authority and responsibility
4. The procedure is clearly understood
5. There is a clear schedule for completion of task

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ADVANTAGES
1. Gives senior managers more time to focus on important issues
2. Show trust in subordinates and this can motivate them
3. Develops and trains staff for more senior positions
4. Helps staff to achieve fulfilment through their work (self-actualisation)
5. It can allow the mangers to see which employees are perhaps ready for
and capable of being promoted to a more responsible post.

DISADVANTAGES
1. Inexperienced employees may fail and this may tarnish the good name
of the manager
2. Managers will lose control of staff
3. When subordinates performs better than the manager, the manager
may feel insecure
4. In most cases managers delegate boring tasks which demotivates
employees
5. It may cause tension among a group of employees if one of them is
given the authority to oversee the completion of a group task

Delegation and Accountability

At each level in the organisation tasks are delegated from chief executive
officer at the top of the organisation down to the employees on the very
bottom level, but if anything happens that causes the organisation to perform
less well it is the chief executive who will ultimately have to answer to the
shareholders.

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DIFFERENCE BETWEEN AUTHORITY AND
RESPONSIBILITY
Authority can be passed down and responsibility cannot. Thus the authority to
perform a task can be passed to a lower level employee but the final
responsibility for the successful execution of the work remains with the

the employee has the required skills and experience

CONFLICTS BETWEEN CONTROL AND TRUST THAT

MIGHT ARISE WHEN DELEGATING
Delegation requires an element of trust. Trust on the part of the manager that
their employee will carry out the work as required. Trust on the part of the
employee that the manager will not interfere once the work has been
delegated. When a manager performs a particular task themselves they have
complete control about how and when it is done and the standard to which it
is done. They must accept that they lose some control over the work if it is
delegated to one of the employees in the hierarchy. If the manager check
constantly how the work is done, the employee may sense lack of trust and
may no longer be willing to undertake the task. However if the manger does
not keep checking, how do they know that the work is being done and is being
completed to the required standard. This a dilemma faced by people who
delegate some of their work to others.

CENTRALISATION
A centralized organization is one in which most decisions are taken at the
centre or upper levels of the organization. There will be minimum delegation to
managers in the various departments

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The degree of centralization depends on:
1. Cost
2. Desire for uniform policy
3. Size of the organization
4. Management philosophy
5. The quality of middle and junior management
6. Availability of control techniques
7. Geographical dispersion of the organization

Advantages
1. Greater control of the business over the employees and the use of
business resources
2. decisions made will be consistent across all departments or divisions
3. business image can be maintained due to the consistency of decision
4. Easier communications due to the limited involvement of employees
5. employees working towards a common goal

Disadvantages
1. no new ideas are brought in the management system.
2. Rigidity i.e the business may not quickly adjust to an unexpected change
3. delays in decision making
4. personal development for managers lower down the hierarchy

Decentralisation.
 Refers to a business delegating important decisions to lower divisions in
the business
 decision making powers are passed down the organisation to empower
subordinates and regional managers

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Decentralisation means:
 Less central control
 More delegation

 Authority is given to departments/ regions

Advantages

 Managers feel more trusted and get more job satisfaction due to
delegation
 Decisions can be made much more quickly
 The business can adapt to change more quickly

Disadvantages
 Development of narrow departmental view
 Loss of control

FORMS OF DECENTRALISATION

Functional decentralisation: Specialist departments are given the

authority to make decisions
The most common are:-
-human resources
-marketing
-finance
-production

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Federal Decentralisation: authority is divided between different
product lines eg separate truck/car/ bus divisions

Regional Decentralisation: in multinationals, each base in each

country has authority to make its own decisions

Decentralisation by project: for a certain project, decision making

authority is given to a team chosen from all functional departments

Line Managers And Staff Managers

Line managers normally hold departmental responsibilities (including

managing people and other resources) and derive their title from fulfilling a

role in the line of command from the top to the bottom of the hierarchy. They

have the power and authority to direct the actions of subordinates who are

accountable for carrying out certain duties. Line managers operate with the

aim of assisting the business in meeting its corporate objectives.

Staff managers are often appointed as the organisation grows in size and
are used to relieve senior managers of some time-consuming duties.

Examples of staff managers include IT and HR managers. Staff managers only

indirectly contribute towards achieving corporate objectives. Instead, a staff

manager is responsible for making sure all the supports are in place so that

the line staff are hired, trained, equipped and supported while they carry out

the actual operations.

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Causes of conflict between line and staff managers

The authority of staff managers is different from that of line managers. While

the line manager focuses on generating revenue, the staff manager often has

to engage in expenditure to support further operations. This can lead to

tensions in the workplace, especially when there is no clear understanding of

the difference in the authority of the positions.

Line managers do not always welcome the appointment of specialist staff

managers. Line managers might feel that their position and status is

threatened and may believe staff managers only understand a part of the

complexities of their jobs. When staff managers take decisions relating to their

specialist areas (for example, developing and implementing recruitment

policies), line managers may not consider that they meet the needs of their

particular division or department and may oppose their use.

Staff managers may sometimes feel that their opinions are not taken into

account in corporate decisions. For example, when appointing a new member

of staff, the relevant line manager may have the final say, but a specialist HR

staff manager may have a valuable contribution to make to the selection

process, and they may be unhappy if they are not allowed to play a part in the

decision.

Conflict is more likely in organisations where there is not a clear and well-

understood division between the authority of line managers with responsibility

for operations and that of staff managers. If these authorities overlap, it is the

responsibility of senior managers within the business to make decisions to

clarify and publicise responsibilities.

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Chapter 14 : Business Communication
Communication is the process of exchanging information or ideas between

two or more individuals or groups.

Internal communication: exchange of information that

takes place within an organization (e.g. at departmental meetings, in team

briefing sessions and in memos to staff).

External communication: exchange of information that

takes place with individuals, groups and organizations outside the business

(e.g. via advertising material, telephone calls to suppliers and letters to

customers).

Two-way communication ensures that any communication has been fully

understood and is therefore more effective than one-way communication.

Effective two-way communication is a vital element of democratic

management, effective delegation, empowerment and teamwork.

Formal communication refers to the official channels of

communication which exist in a business, such as information being passed

through 'line' and 'staff' relationships (e.g. between superiors and subordinates,

or between people on the same level). These information flows will be

concerned with the content of the jobs and may be in one of several forms,

spoken, written, or electronic for example.

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Informal communication refers to the unofficial channels of
communication that exist in a business (often spoken as opposed to written

communication). This is often referred to as the 'grapevine'.

This can be concerned with the content of the jobs (e.g. two employees

commenting on the poor performance of a task by their superior), or it can be

discussing non work-related matters (e.g. arranging a staff social function).

It could also refer, for example, to the anonymous passing of information to

the media relating to unethical business practices.

Motivation and Communication

 If employees are well motivated this can impact communication as they

are more likely to speak to senior employees
 Poor levels of motivation are likely to have a negative impact on
communication
 Communication and motivation are related if one increases it is likely
to have a positive impact on the other

Effective communication
Effective communication has the following benefits:

 It makes change easier this is particularly important to businesses who

are in industries which are changing rapidly
 It increases commitment from employees
 It increases coordination
 It helps ensure that all employees are working towards the same
objectives

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Methods of Communication

Oral Communication

Oral communication implies communication through mouth. It includes

individuals conversing with each other, be it direct conversation or telephonic

conversation. Speeches, presentations, discussions are all forms of oral

communication. Oral communication is generally recommended when the

communication matter is of temporary kind or where a direct interaction is

required. Face to face communication (meetings, lectures, conferences,

interviews, etc.) is significant so as to build a rapport and trust.

Advantages of Oral Communication

 There is high level of understanding and transparency in oral

communication as it is interpersonal.
 There is no element of rigidity in oral communication. There is flexibility
for allowing changes in the decisions previously taken.
 The feedback is spontaneous in case of oral communication. Thus,
decisions can be made quickly without any delay.
 Oral communication is not only time saving, but it also saves upon
money and efforts.
 Oral communication is best in case of problem resolution. The conflicts,
disputes and many issues/differences can be put to an end by talking
them over.
 Oral communication promotes a receptive and encouraging morale
among organizational employees.

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Disadvantages/Limitations of Oral Communication

 Relying only on oral communication may not be sufficient as business

communication is formal and very organized.
 Oral communication is less authentic than written communication as
they are informal and not as organized as written communication.
 Oral communication is time-saving as far as daily interactions are
concerned, but in case of meetings, long speeches consume lot of time
and are unproductive at times.
 Oral communications are not easy to maintain and thus they are
unsteady.
 There may be misunderstandings as the information is not complete
and may lack essentials.
 It requires attentiveness and great receptivity on part of the
receivers/audience.

Written Communication

an innovative activity of the mind. Effective written communication is essential

for preparing worthy promotional materials for business development. Speech

came before writing. But writing is more unique and formal than speech.

Effective writing involves careful choice of words, their organization in correct

order in sentences formation as well as cohesive composition of sentences.

Also, writing is more valid and reliable than speech. But while speech is

spontaneous, writing causes delay and takes time as feedback is not

immediate.

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Advantages of Written Communication

 Written communication helps in laying down apparent principles,

policies and rules for running of an organization.
 It is a permanent means of communication. Thus, it is useful where
record maintenance is required.
 Written communication is more precise and explicit.
 Effective written communication develops and enhances an

 It provides ready records and references.

 Legal defenses can depend upon written communication as it provides
valid records.

Disadvantages of Written Communication

 Written communication does not save upon the costs. It costs huge in
terms of stationery and the manpower employed in writing/typing and
delivering letters.
 Also, if the receivers of the written message are separated by distance
and if they need to clear their doubts, the response is not spontaneous.
 Written communication is time-consuming as the feedback is not
immediate. The encoding and sending of message takes time.
 Effective written communication requires great skills and competencies
in language and vocabulary use. Poor writing skills and quality have a

 Too much paper work and e-mails burden is involved.

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Electronic Communication

Communication using electronic media known as electronic communication.

Such communication allows transmission of message or information using

computer systems, fax machine, e-mail, telephone or video conferencing and

satellite network. People can easily share conversation, picture, image,

sound, graphics, maps, interactive software and thousands of things for the

development of electronic communication. Due to electronic technology, jobs,

working locations and cultures are changing and therefore people can easily

access worldwide communication without any physical movement.

Advantages of Electronic Communication

 It requires only a few seconds to communicate through electronic media

because it supports quick transmission.
 World has become a global village and communication around the
globe requires a second only.
 Electronic communication saves time and money. For example, Text SMS
is cheaper than the traditional letter.
 Electronic communication allows the instant exchange of feedback. So
communication becomes perfect using electronic media.
 Due to the advancement of electronic media, business managers can
easily control operation across the globe. Video or teleconferencing e-
mail and mobile communication are helping managers in this regard.

Disadvantages of Electronic Communication

 The volume of telecommunication information is increasing at such a

fast rate that business people are unable to absorb it within the relevant
time limit.

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  Electronic communication requires huge investment for infrastructural
development. Frequent change in technology also demands further
investment.
 Data or information, if faxed, may be distorted and will cause zero value
in the eye of law.
 Data may not be retrieved due to system error or fault with the
technology. Hence required service will be delayed
 Technology is changing every day and therefore poor countries face the
problem as they cannot afford the new or advanced technology.
Therefore poor countries need to be dependent towards developed
countries for sharing global network.

Visual Communication

Visual communication is the transmission of information and ideas using

symbols and imagery. It is one of three main types of communication, along

with verbal communication (speaking) and non-verbal communication (tone,

body language, etc.). Visual communication is believed to be the type that

people rely on most, and it includes signs, graphic designs, films, typography,

and countless other examples.

Advantages of visual communication

 Visual communication helps in re-enforcing oral communication. Simply

put, it supports an oral communication. Because not only does the
recipient hear, but the recipient also sees what is being said with his or
her eyes.
 It can also re-enforce written communication. For example, if you are
reading about something and visual aids such as graphs, diagrams,
and charts are added to the content that you are reading, it enhances

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 your understanding of what you are reading.
 Pictures and illustrations have stronger impact than words. Pictures can

 Visual communications can be understood by both literate and illiterate

people. All one needs to understand a visual communication is the ability
to be able to see things with the eyes unlike the written communication
which requires that one is educated and able to read and write before
one can understand it.
 Visual communication jumps over the hurdle of language differences.
With visual communication, it does not matter whether you can speak a
particular language or not. For example, if you find yourself in China, you
do not need to understand a word of Chinese before understanding the
sture or gesture.

Disadvantages of visual communication

 Visual communication can be very expensive. Unlike some other

channels of communication like the oral communication, visual
communication can be very expensive to produce. The cost involved in
producing it is one of its biggest disadvantages.
 Storing it can also be very expensive. Not only is producing a visual form
of communication expensive, but also when it comes to storing it, it can
cost quite a lot. Take a large billboard for example.
 It takes more time and effort to produce it. Just imagine the amount of
time and effort that goes into the creation of visual aids such as graphs,
maps, diagrams etc.
 Another disadvantage with the visual form of communication is the fact
that one can easily misunderstand or misinterpret the central meaning
of the message being delivered.
 Certain people can never get the message being delivered via visual

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 communication. This category of people are the visually impaired who
can never understand any message sent through visual communication
because they cannot see the message in the first place.

Barriers to Successful Communication

 Ability of the sender how much the sender understands of the

message they are trying to send
 Content including technicalities and jargon
 Method of communication including style and body language where
appropriate!
 Skills and attitude of the receiver
 Organizational factors complexity of the organisation, scope of the
organization
 Cultural attitudes
 Perceptions, prejudices and stereotypes
 Inappropriate target for the message
 Technical capabilities ICT

How to Improve Communication and reduce

barriers

 Ensure the message is clear and precise, but adequately detailed

 Keep the communication channel as short as possible
 Make sure that channels of communication are clear to all involved
 Build in feedback to the communication process so that problems with
receipt or understanding of the message can be checked quickly
 Establish trust between senders and receivers
 Ensure that physical conditions are appropriate for message to be heard
or received in other ways

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Chapter 15 : Leadership

Leadership

A manager is someone who gets things done. Leaders, by comparison, are

people who are followed, who have a vision of the future and a clear sense of
where they are taking the business.

(John Adair)

The purpose of leadership

Leaders provide the vision that takes a business forward. They take the difficult

decisions and can inspire or push through difficult changes. Leadership may

not always be in the hands of one person the leaders may be a team but

the direction needs to come from somewhere. Particularly in a crisis, people

look to a leader for guidance and to show them what to do; this is often why,

when an organisation is in trouble, a new leader is brought in.

It can be argued that leaders have a range of duties relating to all aspects of

Deciding objectives for the organisation

Leaders have to establish a sense of direction for the organisation and

establish objectives to move the organisation towards its overall aims.

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Providing expertise and setting standards for the organization

The leader is likely to be required to show enthusiasm in difficult times and to

take a major role in solving problems as they arise

Determining the structure of the organisation (hierarchies and spans

of control)

They will determine lines of communication and control, and they will be

instrumental in shaping the culture of the business.

Role models for individuals within the organisation

They may choose to build alliances of senior individuals to protect their

position.

Important leadership positions in business

Directors

Directors are found as part of the workforce of a company either private or

public. Directors are proposed by the chief executive officer of a company and

take up the role if they are subsequently elected by shareholders. The role of

directors is largely strategic; they set and oversee the achievement of long-

term goals for the business.

Directors can be executive, non-executive or independent. Executive directors

are employed by the company in a senior capacity, possibly with responsibility

for a part or function of the business, such as marketing. Non-executive and

independent directors perform similar roles, although the latter may not own

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shares in the company. These types of directors are not employed by the

company and are usually appointed because they have a particular

shareholders, employees, customers and other stakeholders if decisions are

not taken with their interests in mind

Managers

Managers carry out a range of duties. These are often categorised as

planning, organising, motivating and controlling. Managers normally have

authority over a number of junior employees and plan and monitor short- and

medium-term strategies for the business.

In a small business, the owner may carry out the duties of manager and

director, looking after all the planning for the business as well as organising

and controlling day-to-day activities.

Supervisors

-floor

workers. They are the first rung of management and are in regular contact

with shop-floor workers. Supervisors are delegated some authority by

managers to take decisions on day-to-day issues, such as staffing or tactics

to meet deadlines. Supervisors also act as a line of communication between

managers and shopfloor workers

Worker representatives

Employee representatives may be chosen by their fellow employees or

appointed by management. Their roles can vary but most:

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  receive information from and give information to management teams;
for example, about pay and conditions or major decisions to be taken by
the company, such as an expansion
 pass on information to all employees within the workforce, often through
meetings
 are consulted by management teams over certain workplace matters
that are likely to have a significant impact on employees, such as the
introduction of new technology into a business.

Worker representatives are frequently involved in issues concerning pay.

The qualities of a good leader

A number of personal qualities have been identified as being common among

the most successful leaders:

 the desire to succeed and sufficient self-confidence that they will

succeed
 the ability to be innovative and think beyond the obvious, and to
encourage others to do the same
 multi-talented, so that they can understand discussions about a wide
range of issues affecting their business
 an incisive mind, to identify the heart of an issue rather than unnecessary
details
 being inspirational so others want to follow their example and be part of
their success
 complete honesty, integrity and the highest ethical standards
 being a good communicator, so their passion and vision are transmitted
to employees
 empathy and emotional intelligence, to better understand their followers

@standoutwithkamran @Kamranasalam 28
Theories of leadership

1. Trait theory What characteristics should a good leader possess?

2. Behavioural theory What does an effective leader do?
3. Contingency theory How do the circumstances affect the success of a
leader?
4. Power and influence theory Where do leaders get their power?
5. Transformational theory How do the most successful leaders carry out
their roles?

Trait theory

Many writers have argued that all leaders should have a number of traits or

characteristics, though there is some disagreement as to the precise nature of

these traits. However, the consensus is that certain personality traits

differentiate a good leader from other people.

Trait theories have developed from the concept of the charismatic leader

Nelson Mandela or Barack Obama, for example. Examples such as these have

the charismatic leader contend that such individuals have identifiable

characteristics that set them apart from ordinary mortals.Some traits

commonly mentioned by writers include:

 being informed and knowledgeable

 having the ability to think creatively and innovatively
 possessing inner motivation and the desire to achieve
 having the ability to act quickly and decisively
 projecting an air of authority.

@standoutwithkamran @Kamranasalam 29
One of the reasons for the decline in popularity of trait theories is that

successful leaders have been found to exhibit different characteristics from

each other.

Behavioural theories

These theories focus on how a leader behaves, trying to identify the right way

of leading rather than what a leader is like as a person. There have been many

studies looking at styles of leadership and considering which are successful.

of leaders. He identified three types of leaders:

 autocratic leaders take decisions without consulting their subordinates

 democratic leaders invite opinions from subordinates before taking
any decisions
 laissez-faire leaders allow subordinates to take decisions without
interfering

A key factor in differentiating between behavioural leadership styles is

communication. At the autocratic end of the spectrum, communication is

lik

subordinates as to their duties. Democratic leadership is more likely to result in

two-

place. Laissez-faire leadership may result in relatively little communication, as

the problem or task may be outlined with subordinates having considerable

freedom thereafter.

@standoutwithkamran @Kamranasalam 30
The behaviour of leaders affects their performance in the role. However,

research has shown that different types of leadership behaviour may be

optimal at different times. Therefore, the most talented leaders may be those

that adjust their style to match the situation. For example, a leader might

-related skills and experience and

were less able to contribute effectively to decision-making.

Contingency theory

depends (or is contingent) on whether or not their leadership style matches

the situation. This means that a leader may be effective in one set of

circumstances, but not in another. Contingency theories identify several

factors that can determine the circumstances faced by a leader, including:

 the nature of the subordinates who are being led

 the tasks facing the employees


Fred Fielder (who was a business and management psychologist at the

University of Washington) developed one of the best-known contingency

theories of leadership in 1967. Fielder argued that a lead

be adapted and, therefore, that the effectiveness of a leader depends on

there being a match between the style and circumstances.

Fielder believed that there is no best style of leadership because its

effectiveness depends on the situation in which the leader is working. He

argued that, to identify an effective leader for a specific situation, it was

@standoutwithkamran @Kamranasalam 31
situation.

e by examining the traits of

employees which that leader would and would not want to work with. This

revealed which of the two following factors most strongly described their

leadership style:

Task-orientated Such leaders perform well in situations where it is vital to

complete a particular job, and they can build teams to achieve this.

People-orientated These leaders are good at building relationships with

people and in maintaining harmonious working relationships.

The demands of the situation can be judged to be favourable or unfavourable

by considering three factors:

1. Relationships between the leader and subordinate members This is

the extent to which the other members trust and have confidence in the
leader and shows their willingness to be guided by the leader. Higher
levels of trust and confidence give a more favourable situation.
2. Task structure The extent to which the tasks facing the group are
structured, with clear goals and instructions on completion. More
structured tasks represent more favourable situations.
3. The power the leader has to direct the
subordinate group is based on their place in the organisation and ability
to reward and punish. The more power the leader has, the more
favourable the position.

@standoutwithkamran @Kamranasalam 32
Power and influence theories

Power and influence theories of leadership examine the different ways that

leaders use power and influence to achieve results, and the leadership styles

that are developed as a consequence. Leadership and power are closely

related: a person who is a leader is also likely to have the most power to make

decisions. However, power does not just depend on the leader; it depends also

on how the leader is perceived by others.

The best-known research on power as an influence on subordinates and

leadership style was conducted by social psychologists John R. P. French and

Bertram Raven..Their theory suggests that there are two sources of personal

power:

 Expert knowledge of the leader the greater this is, then the greater
the chance that subordinates will follow their guidance.
 Charm of the leader the greater the personal appeal of the leader,
the more likely it is that subordinates will want to be led and influenced
by them.

on as a

senior manager gives them power and influence over their followers.

Another approach to power and influence is called transactional leadership.

This assumes that employees will only undertake tasks in exchange for reward.

If this view is adopted by the leader, then employees should be given clear

direction and managed by a system of rewards and punishments. This style is

about developing tasks and creating reward systems for those who complete

the tasks satisfactorily. On the other hand, if they do not achieve their targets

@standoutwithkamran @Kamranasalam 33
and are underperforming, they get punished as a result. All leaders, whatever

their overall style, use elements of this transactional approach on occasions

perhaps when time to deliver a project is limited and the cost of not meeting

objectives is high.

Transformational theory

Transformational leadership occurs when leaders perform their roles so

effectively that they gain the trust, respect, appreciation and loyalty of the

people who follow them.

Transformational leaders attempt to change or transform the culture of the

organisation to achieve improved performance. The new culture should focus

on employee satisfaction, productivity and working for success through

motivated employees. By concentrating on the needs of employees, the

transformational leader demonstrates the importance of:

• charisma in influencing subordinates

•
• stimulation in the working environment by offering new challenges for
employees
• understanding individual needs of each team member

@standoutwithkamran @Kamranasalam 34
Emotional intelligence

recognising our own feelings and those of others, for motivating ourselves, and

for managing emotions well in ourselves and in our

The EQ concept argues that IQ (intelligence quotient, a conventional measure

performance of employees, including managers and leaders.

The EQ model emphasises that there are areas of emotional intelligence that

determine how well employees will perform. A high-performing employee

needs more than a high IQ (the normal measure of intelligence) because this

. Some

employees may be brilliant and have a very high IQ, but they may lack

personal skills and not get on well with other people. Research indicates that

people with a high IQ are not automatically good performers in the workplace.

of emotional intelligence

Daniel Goleman is the best-known researcher into EI. He suggests that there

are four main EI competencies that managers should try to develop and

improve on:

 self-awareness knowing what we feel ourselves and using that to

guide decision-making, having a realistic view of our own abilities and
having self-confidence in our abilities
 self-management being able to recover quickly from stress, being
trustworthy and conscientious, showing initiative and self-control

@standoutwithkamran @Kamranasalam 35
 social awareness sensing what others are feeling, being able to take
their views into account, being able to get on with a wide range of people
 social skills handling emotions in relationships well, accurately
understanding different social situations, using social skills to persuade,
negotiate and lead.

@standoutwithkamran @Kamranasalam 36
Chapter 16 : Human Resource
Management Strategy
Approaches to HRM

Hard HRM

- involves a business viewing its employees as a resource to be used to

achieve its objectives just lie the machinery, vehicles and premises. Employees

will be recruited, trained, redeployed or dismissed according to the needs of

the business. Employees are likely to be closely monitored for the business to

be able to achieve its objectives. Training is not for the direct benefit of the

employee but rather to improve the business outcomes. It is an approach to

managing staff that focuses on cutting cost e.g offering temporary and part-

time employment contracts

Soft HRM

-involves the treatment of employees as individuals usually with an awareness

of the individual development and considering the needs of each employee. It

takes a more humanistic approach to the management of employees.

Training is offered for the benefit of both the business and the employee.

Workers are motivated to work harder and to stay in the business for a long

time.

@standoutwithkamran @Kamranasalam 37
HRM and Flexible

The business requires different numbers of employees at different times. Thus

the business needs as much flexibility as possible regarding the size of

workforce. There is therefore need for temporary or part-time employees.

CONTRACT OF EMPLOYMENT

-it is a written agreement between the employee and the employer which

binds both the employer and the employee, and describes the duties, rights

and responsibilities of both parties

IMPORNANCE OF EMPLOYMENT CONTRACTS

 - failure to use them could lead to fines / legal

action
 Avoids misunderstanding -if there is a dispute business can check what
workers are expected to do
 removes uncertainty -Employers and employees know the terms and
conditions of the employment

Type of Contracts

 Permanent Contract- a contract of employment that does not specify

a time period or have a termination date
 Zero hours contract- a contract of employment where the employee
does not have any guaranteed hours of work. The employee will only be
paid for the hours they are actually required to work, which might be zero
in any given time period. In restaurants employees are required to be
available but if there are no customers, they are not required to wait on

@standoutwithkamran @Kamranasalam 38
  Part-time employees- a contract of employment for a specified
number of hours that is less than the number of hours worked by the full
time employees
 Flexi-time contracts-employment contract that allows staff to be
called in at times most convenient to employers and employees e.g at
busy times of the day
 Annualized hours contracts: Employees working in this way are
expected to work, say, an average of 38 hours each week, but they can
be employed to work longer hours during busy weeks, with an equivalent
reduction in working hours during quieter periods. It is common for this
type of contract to be used for employees working in agriculture and
horticulture.

Shift-working is an employment practice that is designed to allow

businesses to carry on their core activities for 24 hours a day. It is very

common in industries such as health care, where patients can require services

at all times of the day. Working shifts can mean that businesses are able to

use expensive assets such as factories and machinery as fully as possible. The

fixed costs of these assets can be spread over a greater volume of production,

helping to reduce unit costs. Providers of services may also be able to gain a

competitive advantage by offering services 24 hours a day. Some

supermarkets are open all day and night nowadays.

Homeworking avoids the need for employees to travel to work. Instead,

they carry out their duties where they live. Different countries have different

approaches to homeworking. In some, the right to work from home is provided

by law; in others it is entirely up to an employer employee agreement.

@standoutwithkamran @Kamranasalam 39
Compressed working hours is a flexible-working arrangement under
which employees are allowed to compress their regular normal working week

into fewer days. For example, someone working a five-day working week could

ask to work only Monday Thursday but start their day earlier and finish later in

order to make up their total number of hours. Under this system, employees

can take time off for personal reasons and make up the time by working

longer hours at other times of the week.

The gig economy

One matter which is receiving a lot of attention in many countries across the

globe is that of the i

gig economy is based on flexible, temporary or freelance jobs, often involving

connecting with clients or customers through an online platform. People

working in the gig economy are not classified as employees but as

contractors. As a consequence, they do not receive guaranteed hours of work

or amounts of pay. Many well-known businesses operate in the gig economy

and employ people on flexible contracts as a means of providing price-

competitive products. Uber, FedEx and Deliveroo are all part of the gig

economy.

The use of gig working and zero-hours contracts also supports employees

who may only wish to work for limited and irregular hours. Using this form of

contract, employees are able to work for just the times that suit them. This

form of contract could be popular with students.

@standoutwithkamran @Kamranasalam 40
Job-sharing

We saw earlier that two people can share a full-time job, each working for a

part of the normal working week. This can offer businesses benefits if the

people have complementary skills, and they may be able to work more

effectively than a single person. However, communication problems can exist

as the people job-sharing do not normally work together.

Advantages of temporary, part-time, zero-hours and gig employment

contracts to business

 Fixed labour costs are reduced. Employees can be required to work at

particularly busy times of the day or week, but not during less busy
periods.
 Flexibility offers firms real competitive advantages, as they can give
good customer service without substantial cost increases.
 More workers are available to be called upon should there be sickness
or other causes of absenteeism. The efficiency of employees can be
assessed before they are offered a full-time contract.
 Zero-hours contracts mean that there is no fixed cost element in a

paid if the worker is called in to work for a specified number of hours.

 One-off gig contracts for a particular job remove all employment costs
other than payment for the job being performed. These workers are not
employees.

@standoutwithkamran @Kamranasalam 41
Disadvantages of temporary, part-time, zero-hours and gig employment

contracts to business

 There are more employees to manage than if they were all full-time.
 Effective communication will be difficult. There are more employees in
total, so it may be impossible to hold meetings with all the workers at any
one time and the business will have to rely on good IT communication
methods.
 Motivation levels may be low. Temporary/part-time workers can feel less
involved and committed to the business than full-time workers.
 It will be more difficult to establish a teamwork culture if workers never
meet because of their different working hours, or they only attend to
complete their contract.
 Workers may have more than one zero-hours contract with different
employers, so may not be available for work immediately.
 One-off gigs are increasingly being made illegal in some countries
where workers must be offered employee status.

Advantages of temporary, part-time, zero-hours and gig contracts to

employees

 Some workers prefer flexibility and some control over when to work (e.g.
parents with young children, learners or elderly people who do not want
to work a full week). A better work life balance could result. Workers may
be able to combine jobs in different businesses, giving greater variety to
their working lives and wider work experience.
 Gig workers often claim they prefer the independence and control over
their lives offered by this form of work.
 Two or more part-time jobs may give a similar income to a full-time one.

@standoutwithkamran @Kamranasalam 42
Disadvantages of temporary, part-time, zero-hours and gig contracts to

employees

 Part-time pay will be less than on a full-time contract.

 Security of employment with these contracts will be less than for
permanent contract workers.
 Other working conditions are often inferior to those of full-time,
permanent employees (e.g. holiday entitlement or pension rights). In
many countries the law does not give as many employment rights to
part-time, temporary workers as to full-time workers.
 There may be fewer training opportunities than those offered to full-
time/permanent workers

FULL-TIME EMPLOYMENT CONTRACTS

ADVANTAGES OF FULL-TIME EMPLOYMENT CONTRACTS

 employees are likely to be better trained than part-time workers

 employees are more committed to the business
 less supervision is required
 fewer errors since they are more experienced than part-time employees

DISADVANTAGES FULL-TIME EMPLOYMENT CONTRACTS

 no new ideas are brought into the business

 employees are not able to combine jobs with different firms hence lack
of variety in their working lives
 the contract is not ideal for certain types of workers e.g parents with
young children, elderly etc
 employees will be at work even at less busy times
 full-time employees are very expensive since they are specialists

@standoutwithkamran @Kamranasalam 43
Temporary Contracts

 Temporary contracts are another way firms use to reduce the overhead
costs of employing staff when there may be less demand for them.
 Temporary contracts can be either full-time or part-time. They are
contracts for fixed periods of time as opposed to permanent contracts.
 The advantages and drawbacks of temporary contracts are similar to
those of part-time contracts, especially the benefit of flexibility offered to
employers.
 The combination of part-time and temporary contracts gives firms the
chance to create a small team of full-time staff , called core workers.

Benefits of flexitime

 The benefits to employees include: more choice over working hours; the
ability to plan for other activities.
 The benefits for employers include: being able to attract well-qualified
recruits; having a longer working day; improving customer service;
improved workforce motivation.

Limitations of flexitime

 There may not be enough employees in attendance at all times so

careful employee scheduling will be needed.
 Teamworking becomes more difficult.
 Holding meetings and communication become more difficult, as not all
employees will be attending work at the same times

@standoutwithkamran @Kamranasalam 44
Benefits of home working

 This suits many employees who have a long journey to work.

 It reduces time wasted in travel.
 It reduces business costs of accommodating all employees at one time.
 Employees can share desks or workstations, sometimes called hot-
desking.
 It is easier to recruit good-quality employees.

Limitations of home working

 It can be difficult to assess employee performance when working from

home.
 No face-to-face contact is possible during home working days.
 The employee has less social contact.
 Teamworking becomes more difficult.

Benefits of annualized hours contracts

 A period of regular hours or shifts forms the core of the arrangement,

with the remaining time left unallocated and used as and when needed.
 Offers employees more flexibility for planning other activities.
 More flexible for employers as they can call in workers as and when they
are needed.

Limitations of annualized hours contracts

 Workers may have less freedom than intended if they can be called to
work at very short notice.
 If annual hours are used up before the end of the year, high-cost
overtime rates might have to be offered.

@standoutwithkamran @Kamranasalam 45
Benefits of job sharing

 Employees can cover for each other in case of illness.

 Workers may be more productive (being less tired and stressed) when
they do work.
 The business is able to keep two experienced employees per job role.
 Workers have greater freedom to achieve a work life balance.
 Offers more time for family commitments

Limitations of job sharing

 HR administration has to be provided for two workers rather than one.

 There may be some confusion over who does what and who is
responsible and accountable.
 If the workers who are sharing a job do not trust each other, this scheme
is unlikely to be successful.

Benefits of compressed hours contracts

 Offers employees more opportunities for three-day weekends.

 Employees with long journeys to work may appreciate having an extra
day off.

Limitations of compressed hours contracts

 Working parents may not be able to accommodate longer workdays.

 Some people prefer to work in shorter bursts rather than for long
stretches.
 Must ensure sufficient workers are in attendance each day, which might
be a problem as some days are popularly taken off as holidays.

@standoutwithkamran @Kamranasalam 46
Benefits of shift work

 It increases the output of the business.

 It ensures expensive capital equipment is fully used, for example, on a
three-shift system, equipment will be operating 24 hours a day.
 It is more flexible for business. If demand falls, one shift can be eliminated.
 Workers may be able to switch shift, so there is some flexibility.

Limitations of shift work

 Machine maintenance and repair schedules have to be built into the

shift system.
 About 20% of night and rotating shift workers are thought to have a sleep

cause long-term, stress-related health issues.

Shamrock Organisation

Charles Handy

leaves made up of:

 core managerial and technical staff , who must be offered full-time,

permanent contracts with competitive salaries and benefits
 outsourced functions by independent providers, who may once have
been employed by the company
 flexible workers on temporary and part-time contracts, who are called
on when the situation demands their labour

@standoutwithkamran @Kamranasalam 47
Measuring and monitoring employee performance

Labour productivity is concerned with the amount (volume) of output that is

obtained from each employee.

Why does measuring and monitoring labour productivity matter?

 Labour costs are usually a significant part of total costs

 Business efficiency and profitability closely linked to productive use of
labour
 In order to remain competitive, a business needs to keep its unit costs
down
Measuring productivity in service industries is usually much more complex

than in manufacturing or primary sector industries. Here are some examples:

 Transport industry kilometres travelled per driver per year.

 Hotels number of guest nights per employee per year.
 IT and banking/finance service revenue earned on average per
employee per year.

Achieving higher labour productivity is not a simple task. Several factors

influence how productive the workforce is: e.g.

 Extent and quality of fixed assets (e.g. equipment, IT systems)

 Skills, ability and motivation of the workforce
 Methods of production organisation
 External factors (e.g. reliability of suppliers)

@standoutwithkamran @Kamranasalam 48
Labour productivity is calculated by:

Labour productivity = Output per period (units) / number of employees at

work

Absenteeism refers to the habitual non-presence of an employee at his or

her job. Habitual non-presence extends beyond what is deemed to be within

an acceptable realm of days away from the office for legitimate causes such

as scheduled vacations, occasional illness, and family emergencies.

Possible causes of over-absenteeism include job dissatisfaction, ongoing

personal issues, and chronic medical problems.

Absenteeism can be measured as:

Measurement of employee performance

Staff Appraisal- a process of measuring the performance of an employee

against predetermined targets or desired outcomes. Staff appraisal can be in

form of interviews with employees discussing the extent to which they have

reached their objectives, through observations and through the determination

form the appraisal will take and how frequent it will take place.

@standoutwithkamran @Kamranasalam 49
Benefits of staff appraisal

 During appraisal interviews or observation, training need can often be

identified
 New ideas can come out from the discussion for the benefit of the
business
 It can allow pay levels to be adjusted
 It can confirm the extent to which employees are meeting targets which
can then be used as the basis for bonus payments

Causes of poor employee performance

 Poor employee motivation

 Lack of effective leadership
 Lack of skills/ experience
 Absenteeism

Strategies to improve Employee Performance

 regular appraisal of performance against agreed pre-set targets

 training to increase efficiency and offering opportunities for educational
qualifications
 quality circles small groups of workers encouraged to take
responsibility for identifying and suggesting solutions to work-related
problems
 cell production and autonomous work groups where teams of workers
are given multiskill training and the opportunity
 financial incentives linked to the profits of the business or an offer of a
stake in the ownership of the company, such as employee share-option
schemes

@standoutwithkamran @Kamranasalam 50
  investing in more advanced technology to increase labour productivity
 adopting a system of management by objectives

What Is Management by Objectives (MBO)?

Management by objectives (MBO) is a management model that aims to

improve the performance of an organization by clearly defining objectives

that are agreed to by both management and employees. According to the

theory, having a say in goal setting and action plans encourages participation

and commitment among employees, as well as aligning objectives across the

organization.

Advantages of MBO:

Improved Performance:

MBO is basically a result oriented process. Its main focus is on setting and

controlling goals. Managers are encouraged to do detailed planning. They

concentrate on the important task of improving performance by reducing the

costs and harnessing the opportunities.

Greater Sense of Identification:

With MBO, the subordinates feel proud of being involved in the organizational

goals. This improves their morale and commitment to the organizational

objectives.

Maximum Utilization of Human Resources:

Since the goals are set in consultation with the subordinates, these are more

difficult to achieve and more challenging than if the superiors had imposed

@standoutwithkamran @Kamranasalam 51
them. In addition, since these goals are fixed according to the particular

abilities of the subordinates, it obtains maximum contribution from them and

thus it leads to maximum utilization of human resources.

No Role Ambiguity:

There is no role ambiguity or confusion in the organization, because specific

and clear goals are set for the organization, for the division for the

departments and for the individual members.

Improved Communication:

In MBO, there is improved communication between the management and the

subordinates. This continuous two way communication helps in clarifying any

ambiguities, refining and modifying any processes or any aspects of

objectives

Device for Organizational Control:

MBO serves as a device for organizational control and integration. If there are

any deviations discovered between the actual performance and the goals,

these can be regularly and systematically identified, evaluated and corrected.

Limitations of MBO:

Difficulties in Quantifying the Goals and Objectives:

The MBO will be successful only if the goals can be set in quantifiable terms.

But if the areas are difficult to quantify and difficult to evaluate, it will not be

possible to judge the performance of the employees. Moreover MBO does not

@standoutwithkamran @Kamranasalam 52
have any subjectivity in performance appraisal. It rewards only productivity

without giving any consideration to the creativity of the employees.

Costly and Time Consuming Process:

MBO is quite costly and a time consuming process. There is a lot of paper work

involved. Moreover, there are a lot of meetings and too many reports to be

prepared, which add to the responsibilities and burden of the managers.

Because of these reasons managers generally resist the MBO.

Emphasis on Short Term Goals:

Under MBO, goals are set only for a short period, say for six months or one year.

This is because of the reason that goals being quantitative in nature, it is

difficult to do long range planning.

Poor Integration:

Generally, the integration of the MBO with the other systems such as

forecasting and budgeting is very poor. This lack of integration makes the

overall functioning of the system very poor.

Difficulty in Achievement of Group Goals:

When goals of one department depend upon the goals of another

department, cohesion is difficult to maintain. In such cases, the achievement

of goals will also become very difficult.

Roles of IT and AI in human resource management

There are five main trends in technology that are influencing the ways in which

HR operates within a business:

@standoutwithkamran @Kamranasalam 53
Data analytics: The use of artificial-intelligence (AI) technology to interrogate

data stored on cloud-based databases has transformed the amount of

information available to HR specialists.

Cloud computing: This is the core of most technological HR systems. It stores

vast amounts of data and its accessibility can encourage employees to work

collaboratively.

Mobile technology: The use of mobile technology through smartphones and

other devices increases and improves communication between HR and other

employees.

Social media: This technology is still widely used for recruitment and selection,

and it is used increasingly as an inexpensive means for communication and

team-building.

The internet of things (IoT): This works with AI and the cloud to gather data

from employee wearables and other devices.

How technological advances affect HRM

Recruitment and selection

The process of recruitment and selection is a costly exercise for most

businesses. Recruiting a senior manager can cost a business many thousands

of dollars, and technology has the potential to reduce the costs and time

taken when appointing new employees. Social media has been used as an

integral part of recruitment for many years, with websites such as LinkedIn

playing a key role in bringing together those looking for work and employers

with job vacancies.

@standoutwithkamran @Kamranasalam 54
However, more recent technological advances have helped to make the

recruitment process faster and more costeffective. Technology can be used to

desirable candidates. AI enables HR teams to evaluate large numbers of job

applications quickly and efficiently.

Some businesses are now also using AI in the form of chatbots to conduct

interviews with candidates. There is some evidence that AI can outperform

humans in judging the hard skills that are essential to complete a job, such as

relevant job-related knowledge. This allows human HR specialists to focus on

team and business culture. It is likely that this combination of AI and HR

specialists will improve the recruitment and selection process.

Managing the performance of employees

Traditionally, the performance of employees was managed through regular

appraisal meetings, during which past achievements were evaluated and

targets set for the future. Technological developments have created

performance-management software which tracks the performance of

employees continuously and can update targets and provide employees with

feedback on their performance at any time. The software also allows other

employees to contribute t

performance as a central part of the process.

One feature of managing employee performance is the use of wearables by

some computing and software technologies. Wearable technology in the

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their location and the activities in which the person is engaged at any time.

Some businesses use wearable technologies to provide augmented

instruction; for example, to check that employees are selecting the correct

items from the shelves in a warehouse. This technology can also identify if an

employee is engaged in a hazardous activity and intervene, if necessary.

Communication between HR and other employees

Advances in communication technology have made it easier for those

responsible for HRM to communicate and work with employees across the

organisation. Many organisations have moved away from using emails, as

inboxes become too crowded and the level of engagement of employees with

this form of communication is often poor. New forms of technology have

helped to improve communication and stimulate employee engagement with

HR initiatives. Nowadays, many companies use different online methods to

exchange files and messages such as Skype, Slack and Basecamp. Some HR

managers use social intranets and computer-based newsfeeds to transmit

information without interrupting work patterns. This can assist in engaging and

enthusing employees and improving performance at work.

Technology is changing the role of HR within a

business

 Developments in technology have allowed HR managers to spend less

time on basic administrative tasks.
 Technology has allowed databases to replace physical files and
enabled much more time-effective searches and analyses to take
place.

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  Storing information in cloud systems means that much more data
(including big data) is available for analysis. This can be conducted
rapidly and efficiently. It also allows HR specialists to produce reports
speedily and with a precise focus. It allows payrolls and other HR records
to be updated quickly and to be accessible to all authorised people
within the business.

Simplification of the many administrative tasks through the use of technology

has given more time for HR managers to devote to strategic matters. This

means that HR managers can focus on long-term people issues, such as

that it develops values and cultures in the workforce that support the

Evaluation of increased use of IT in HRM

 The use of IT frees up HRM time for more important strategic issues.
 It can reduce social and personal contact between HRM and employees
and make the HR managers seem remote.
 The increased dependence on IT-based communication methods
reduces the opportunity for two-way group discussions unless
conferencing software is used.
 There is a risk of creating a sense of being watched and monitored at all
times amongst employees

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