Post on 21-Jan-2016
MANAGEMENT OF PEOPLE AND FINANCEOutcome 1
Human Resource Management
Higher Business Management
What would you do in HR?
Role and Function of HR• Workforce Planning• Recruit, select and retain quality staff• Training, development and appraise• Maintenance of Personnel Records• Employee Relations• Grievance and Discipline• Ensure safe working conditions• Ensure staff treated fairly
Roles and Functions - FACES
•FACILITATOR•AUDITOR•CONSULTANCY•EXECUTIVE•SERVICE
Using P99 summarise each of these roles into your jotter
Changing Patterns of Employment
• Decline in full-time, permanent work• More women working • Increase in service sector employment• Increase in public sector employment• Higher unemployment amongst older men• Increased number of fixed length-contracts• Increased self-employment• Increase in flexible working practices
Changing Patterns of Employment
• Flexible Working Practices• Part-time work• Variable Hours• Flexi-time• Homeworking• Teleworking• Hot-desking• Job Share• Temporary work• Self-employment
Write a definition of each of these into your jotter.
Modern Employment PatternAdvantages• Core employees can
focus on core activities only
• Saves on salaries and space
• No need to pay for pensions, holidays or redundancy
• Reduced NI contributions
• Allows flexibility and can respond quickly to change
DisadvantagesFrequent recruitment and selectionOccasional staff shortagesLess commitment from staffIncreased need for training due to high staff turnoverLack of continuity of staff - customers may become unhappy
The Core WorkersEssential workers - managers, skilled workers - permanent and well-paid
The Contractual FringeSub-contractors - suppliers of components or services - cheaper (no pensions, holidays etc)
The Flexible Labour ForcePart-time, temporary - help core workers at peak times - low rates of pay
The Modern Working Environment
Contractors/Outsourcing• Contractors are people/businesses who
provide goods and services that the organisation does not wish to provide for itself.
• Examples: cleaners, consultants, security guards, suppliers
• Because they are not permanent they are less expensive (no pension pay or holiday entitlement for example)
Reasons for Sub-Contracting/Outsourcing
• More skilled workforce• Expertise• Economies of scale• Can concentrate on core activities• Saves money in equipment/training
• What are common examples of outsourced departments?
Manpower Planning
If firm’s labour supply is more than demand:
• Redundancy• Retraining• Early retirement• ‘Natural wastage’
If firm’s labour supply less than demand:
• Additional advertising
• Retraining programmes
• Increase pay & other incentives
Keeping Personnel Records on EVERY employee (database)
Key Fields: Unique identifiers like National Insurance Number (AB Council uses this)
• Attendance• Discipline• Performance• Communicating (Correspondence)• Selection of staff (promotion, training,
teams, specific jobs)
• Includes info on appraisals, training etc
• Conforms to the Data Protection Act
Task!1) Describe 3 objectives of the Human Resources department.
2) Identify the 5 roles of Human Resources.
3) Differentiate between full time and part time employment.
4) Differentiate between temporary and permanent employment.
5) Describe what is meant by outsourcing or contracting.
6) Write a short report or create a powerpoint presentation illustrating the changing patterns of employment over the past 40 years.
Make reference to sectors of the economy, increase in part-time employment and include examples of flexible working practices.
Steps in Recruitment
1. Identify a job vacancy2. Conduct a job analysis3. Prepare a job description4. Prepare a person
specification5. Advertise the job
(Internally or Externally)
Prepare Job DescriptionThis states:• Job title• Location• Tasks• Duties & Responsibilities• Hours• Holiday Entitlements
See P102
Prepare Person Specification
A description of the type of person suitable for post is drawn up. This includes:
• Skills• Qualifications• Experience• Personal qualities• Hobbies & Interests
See P102
Advertising PostInternal and ExternalInternal
• Newsletters• Notice board
External
• Newspaper Adverts• Internet• Job Centre• Recruitment Agency• Schools/Colleges/
Universities
Internal Recruitment
Advantages• Applicant & ability
familiar to organisation• Organisation may have
invested in person through training
• Individual aware of culture (no need for induction training)
Disadvantages• Limited skills pool• Own Job needed to
be filled• Resentment from
overlooked staff
External Recruitment• Advantages• Can target
specific sections of population
• Wider job skills pool
• No need to fill another post
• Disadvantages• Expensive• Time taken can
be long• Successful
candidates may turn down job
Selection Process
1. Application forms/CVs (shortlist created)2. Testing
• Attainment, aptitude, IQ, psychometric and medical tests
3. Assessment Centres4. Interviews (1-2-1, successive and panel)5. Selection and notification6. Reference checks
Application Forms
• Initial contact
• checked against the Person Specification to select suitable candidates for vacancy
CV
Curriculum Vitae or life history
• Personal Details• Education• Qualifications• Work Experience• Hobbies/Interests• Additional Info
Testing, Testing
1. Describe and discuss 4 tests that may be used in the selection process.
2. Take a personality test!
http://www.outofservice.com/bigfive/ www.myworldofwork.co.uk - my DNA TEST
Assessment CentresActivities:• Team building• Role Play• Interviews
Qualities looked for:
• Social skills, leadership qualities & personality
Intensive assessment held over one or two days
Allows business to see large amount of applicants at once
Interviews
• One-to-one
• Successive
• Panel
A ‘Good’ InterviewAn interviewer should:• Be open minded and unbiased• Be prepared• Welcome the interviewee• Control the interview• Supply the information• Close the interview• Follow-up
Task
•Activity 3 – Questions Only
Reasons for Training and Development (CPD)• Improve staff performance• Improve productivity• Staff more flexible• Increase job satisfaction• Staff more motivated• Upgrade staff skills• Reduce injuries & accidents• Organisation gains good image
TrainingCosts
• Financial costs• Expenses• Loss of output• Staff may leave after training
• Staff may request pay rise
• Quality of training must be high
Benefits
• Flexibility• Upgrade skills• Employee satisfaction
• Improved image for organisation
• Motivation and productivity
Induction Training
• For new employees
• Covers aspects of:• Company procedures• Meeting colleagues• Tasks of job• Health & safety
Training Methods
• On the job – training conducted at employee’s place of work. Some organisations offer training schemes and work-based qualifications.
• Off the job – training occurs outside of work e.g. university or college
Training Methods• “Sitting next to Nellie” Demonstration –
task demonstrated then trainee undertakes task
• Coaching – trainee taken through step by step by trainer
• Job Rotation – trainee learns tasks in different departments/jobs
• Distance learning – trainee receives resources and works on their own (and VLE’s)
Tasks
1. Outline the advantages and disadvantages of using VLE’s.
2. Outline the advantages and disadvantages of work training schemes and work-based qualifications.
3. Activity 4 - Training
4. Exam Prep Questions• P89 – Q16a and b• P93 – Q24a and b
Use P82-85 to help
Staff Development - Appraisals
Assessment of staff performance usually held annually. Uses Appraisal/PRD form then interview
• To identify future training needs• Consider individual’s development
needs• Improve employee performance• Provide feedback on performance• Identify promotion hopefuls
Problems:• Difficult to measure• Personality clashes
Read P93 on other
appraisal types
Factors of Motivation• Pay levels• Open door policy• Flexible working practices• Job security – permanent contracts• Bonuses and incentives• Training and CPD• Profit sharing schemes• Employee of Month• Quality circles• Team building/social events• Promotional prospects• Responsibility and empowerment• Working conditions• Fringe benefits • Participation in decision-making• Working in a team
Motivation & Needs
Maslow’s Hierarchy of Needs
• Needs at top more important than at bottom
• But lower needs have to be satisfied first
P86
Adam’s Equity Theory
•Pay•Praise•Rewards•Conditions•Recognition
• Time• Effort• Loyalty• Commitment
Herzberg’s Two Factor Theory
• Frederick Herzberg believed there were two factors that affected people at work:
• Hygiene Factors – ones with potential to cause dissatisfaction at work (salary, working conditions, status, over-supervision)
• Motivator Factors – aspects of a job that can lead to positive job satisfaction (achievement; recognition; meaningful, interesting work; psychological growth and learning)
MotivationFinancial Methods• Flat rate, piece rate, commission. Performance Related Pay, profit sharing, share ownership
Non-Financial Methods• Empowerment, delegation, job enrichment, job enlargement, job rotation, quality circles, career structures, work councils
Describe 3 financial and 3 non-financial methods of motivating staff.
LeadershipLeaders should influence and encourage employees to work towards achieving the organisational goals.
• AutocraticPower is with the leader and all decisions made by them. One directional communication and no empowerment of employees.
•DemocraticConsultation and communication with employees. Encourages participation and often seen as motivating.
• Laissez-faireDoesn’t exercise control and employees are ‘left’ to get on with job themselves with no direction or structure.
Leadership Theory
Another theory is McGregor’s X and Y Leadership theory.
1. Research this theory (P87) and summarise it into your jotter.
2. What do YOU think about this theory? Write down your thoughts on this
theory under the summary.
Empowerment…Subordinates can exercise power over their working lives.
• MORE responsibility • MORE independence• MORE involvement in decisions
Empowerment benefits to employee• May feel valued• Greater chance of promotion• Improved pay• Improved skills• Employees may be given extra training
• Improved motivation
Empowerment Benefits to firm• Improved productivity• Increased staff motivation and morale• Faster decision making• Fresh ideas can improve quality
decisions• Organisation may become more competitive
• Faster communication • Improved management/employee relations
Criticisms of Empowerment
• Is it more work for less money?
• Not all workers like freedom and responsibility. Some like to be told what to do.
• QUESTION: Discuss methods of empowering staff within an organisation.
Costs of Labour Turnover
• Costs of advertising, interviewing & training new employee
• Loss of production while place is being filled
• Low morale amongst other employees
Keeping Personnel Records on EVERY employee (database)
Key Fields: Unique identifiers like National Insurance Number (AB Council uses this)
• Attendance• Discipline• Performance• Communicating (Correspondence)• Selection of staff (promotion, training,
teams, specific jobs)
• Includes info on appraisals, training etc
• Conforms to the Data Protection Act
Employee Relations
• “The formal relationship between employees and employers”
• Trade Union recognition
• Collective Bargaining
• Employee relations procedures
Grievance• Grievance is a complaint by employee
against employer
Can be taken up by:• Industrial tribunal• ACAS• Trade Union
Discipline
• Discipline procedures are taken against employee by employers
• Employees must be aware of rules
• verbal & written warnings given for breaking rules
• Suspensions can follow then dismissal
• Negotiation - reach an agreement, but needs some middle ground between the two positions held. Settlement or compromise.
• Consultation - Informing employees of changes and ask for thoughts. Final decision by the EMPLOYER.
• Arbitration - When no agreement occurs, then a third party, an independent arbitrator eg ACAS is called. Arbitrators are neutral and unbiased and will listen to both sides and offer a fair and practical solution
Industrial Action• Employee Action
• Sit in• Overtime ban• Work to rule• Go slow• Strike
• Employer Action
• Withdrawal of overtime
• Lock out• Closure
TASK – describe each of these
Trade Unions• Organisation representing workers re: pay
negotiations, working conditions, dismissal, redundancy, training and development.
• TUC and EIS are examples of Unions
• Trade Unions are funded by annual subscriptions by its members
ACAS – Advisory, Conciliation & Arbitration Service
• Provides impartial information to people with problems at work
• Prevents & resolves problems at work
• Settles complaints about employee’s rights
• Run workshops & seminars on latest employment issues & legislation
Collective Bargaining
• Begins with a change in existing contracts
• Employers make offer to employee reps• Reps tell members & counter-claim
occurs• Negotiations begin• Eventually a compromise is usually
reached
Employers Associations• These are organisations that represent
the views and interests of companies within one sector of industry
• Newspaper Society, Engineering Employers’ Association are such examples
They provide a range of services:• They act as a pressure group• A collective market research organisation• A public relations voice for the industry• Can provide negotiating teams
Professional Associations• These organisations represent
‘professional’ occupations such as the GTC for teachers, BMA (British Medical Association) for Doctors, for the Police – the Police Federation and even for footballers: the PFA
• They sometimes perform similar roles to unions, and also are involved in maintaining standards, etiquette and codes of conduct
Employment Rights Act (1996)
Covers:
• Unfair dismissal
• Redundancy
• Maternity leave
Contract of Employment• Job title• Rules/duties • Salary and pension info• Hours of work• Holiday entitlement•Arrangements in event of illness• Terms of notice• Grievance procedures• Disciplinary procedures
Equalities Act 2010
This new act encompassed older discriminatory Acts into 1 legislation including – Equal Pay Act 1970Sex Discrimination Act 1975Race Relations Act 1976Disability Discrimination Act 1995 That protects discrimination in employment on grounds of religion or belief, sexual orientation and age
Equalities Act 2010The Equality Act 2010 is the law which bans unfair treatment and
helps achieve equal opportunities in the workplace and in wider society.
The act covers nine protected characteristics, which cannot be used as a reason to treat people unfairly. Every person has one or more of the protected characteristics, so the act protects everyone against unfair treatment. The protected characteristics are:
• age• disability• gender reassignment• marriage and civil partnership• pregnancy and maternity• race• religion or belief• sex• sexual orientation
National Minimum Wage Regulations 1999• This states the minimum
wage amount to be paid to employees.
• There are 3 hourly rates – • 16-17 year olds - £3.57• 18-21 year olds - £4.83• 22 or over - £5.80
Health & Safety at Work Act (1974)
Covers:
• Working conditions• Provision of safety equipment• Workplace hygiene
Health & Safety at Work Act 1974 – the EMPLOYER’S responsibilities
• Look after employee’s welfare Provide protective clothing where necessary.
• Provide First Aid facilities
• Keep records of any accidents or incidents which occur.
• Prepare a Health & Safety policy
Health & Safety at Work Act 1974 – the EMPLOYEE’S responsibilities
• Look after their own and their colleagues’ health and safety.
• That they report any accidents or faulty equipment
• Cooperate at all times with their employer
Office, Shops and Railway Act
Covers:• Operating dangerous
machinery• Seating & Storage space• Lighting• Fire• Temperature/ventilation• Premises, Toilets etc…
• Not all workers like freedom and responsibility. Some like to be told what to do.
Freedom of Information Act 2000 (ICT)
A law to make provision for the disclosure of information held by public authorities or by persons providing services for them and to amend the Data Protection Act 1998 and the Public Records Act 1958; and for connected purposes.
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Data Protection Act 1998• Covers information that is held on computers eg customers, staff, suppliers
etc
• Aims to protect the rights of the individual by providing legislation to govern the collection, storage and use of information that is held on electronic or paper file systems
• There are 8 basic principles
• Businesses must register with the Data Protection Registrar who oversees enforcement and application
What are they?
Computer Misuse Act 1990
• Aims to deal with the problem of hacking computer systems
• It is an offence to:• Try to gain unauthorised access to computer material• Gain unauthorised access with intent to commit further offences• Unauthorised modification of computer material B
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Copyright, Designs and Patents Act
• The Copyright , Designs & Patents Act makes sure that there is no unauthorised copying of material that has been produced.
• Examples of items which are copyrighted are:• Music CDs, Books, Textbooks, CD-Roms, Newspapers etc etc
• If anyone would like to copy information they have to seek permission from the owner.
• It is easy to identify which materials have been copyrighted by identifying the copyright symbol: ©
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70Apple was awarded £665 million in a landmark victory over Samsung, which was found guilty over intellectual property infringement.
Questionsa) Describe the role of the human resources
department within an organisation (3)b) Explain how legislation will affect the
running of a business in the areas of:• Health and safety• Employment• Use of ICT