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Human ResourceManagement

Higher/Int 2

Business Management

2009-2010

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What are Human Resources? The entire workforce -

Managing Director to part-time Cleaner

Each person being employed to perform specific functions which play a part in the success or failure of the organisation

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Human Resource Management Human Resource Management refers to that

part of an organisation’s activities designed to: Attract Train Develop Maintain

an effective workforce

HRM more strategic and integrated than previous ‘Personnel Management’

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Objectives of HRM Promote a policy of continuous learning and staff

development Recruit, develop and retain people with appropriate

skills and attitudes Manage employee relations (one to one and

collective) Design, implement and manage remuneration

systems to motive staff Maintain and improve the physical and mental well-

being of the workforce (conditions and H&S) Take account of all government legislation relevant to

HRM

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Management of People Theory X - Workers are motivated by money,

they are lazy, selfish, ignore the needs of the organisation, avoid responsibility, lack ambition. They need controlled and directed by management.

Theory Y - Workers have different needs, they can enjoy work. If motivated they can organise themselves and take responsibility. Managers should allow creativity to be shown.

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Abraham Maslow’s Hierarchy Self-actualisation - needs

filled through self-fulfillment, more responsibility, ownership shares, self-employment

Esteem - self-respect, recognition, promotion, awards, title, size office/desk

Emotional - love, belonging, teams

Safety - job security, trade unions, laws

Physiological - food, clothing, shelter, warmth

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Workers need to feel safe and secure. An unsafe working environment will not motivate workers to work, and to work well, nor will the possibility of being made redundant.

What’s the point ofworking, I’m going

to lose my job anyway

I’m no gonna work for this firm again, cos a goat

a sair heid.

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Increasing Motivation Quality Circles - meet regularly to identify,

analyse and attempt to solve work-related problems

Job Enlargement - increased number of tasks, jobs less repetitive, organised into groups and trained to be multi-skilled - job rotation

Job Enrichment - giving workers opportunities to choose how to complete a particular task, usually as part of a team

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The HRM Function (1) The Executive Role: the expert

department in matters related to HR – legal requirements, information provision

The Audit Role: monitors organisation activities

The Facilitator Role: helps others to acquire HR skills eg grievances, equal opportunities, planning

The Consultancy Role: providing advice and guidance

The Service Role: provider of useful information eg changes in legislation

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The HRM Function (2)

Levels of ManagementStrategic: long-term planning policies,

guidelines, culture of organisation

Tactical: pathways to strategic objectives planning, recruitment, training, development, industrial relations

Operational: day-to-day (training) identify possible employees, select suitable employee, arrange cover, develop materials

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HRM Planning Current Employment Trends Staffing Requirements Future Supply of Workers Labour Turnover Satisfy and Motivate Employees Organisation Culture Training and Development Release Surplus Staff

New Staff

Potential Staff

Existing Staff

Departing Staff

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Changing Patterns of Employment (1) Increase in part-time work

full time staff led to inflexible workforce

Increase in service sector employment coal, steel and shipbuilding no longer significant

Increase in public sector employment 30% of Scottish workers employed in this sector

Increase in women working Special arrangements: flexi-time, job-share, child-care

Increase in home/teleworking Improvement in communications

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Changing Patterns of Employment (2)

Part-time work - in most cases voluntary decision

Variable hours - overtime or flexi-time systems

Temporary work - fixed-term, seasonal, casual or agency work Downsized - now bringing workers back on a fixed-term or

project basis for experience

Self-employment - now represent about 13% of workforce, route for those in unemployment and low pay and source of jobs for others

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3 ‘Types of Workforce’ Core workforce - those essential to the

business, giving the expertise. They are given good terms and conditions of employment

Flexible Labour force - part-time or temporary basis eg during peaks in activity. Not employed when there is no demand for services

Contractual fringe - sub-contractors eg cleaners, consultants, component suppliers. No need to pay for pensions, holidays etc

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Advantages (Non-Traditional Workforce

Only employ those contributing to core activities

Saves salaries Saves office space Reduces need to pay sickness/holiday

benefits, redundancy payments, NI contributions

Flexible staffing numbers relating to the market

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Disadvantages(Non-Traditional Workforce)

Cost of Recruitment and SelectionStaff shortages in certain areasLess commitment from workforce Increased training (esp induction)High staff turnoverLack of continuity in personnel

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Recruitment - Stage 1 Is there a vacancy?

Someone leaving? Extra worker required?

Large organisation complex process - liaison between departments or Senior Management

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Job Analysis - Stage (2) Identifies the main features of the job:

Physical requirements and tasks Mental requirements and tasks Skill requirements and specific skill tasks Areas of responsibility Areas of accountability Physical environment Hazards specific to the job

Where is the information found? Current occupant of the job Superiors and Subordinates Specialist observers

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Job Description - Stage 3 (1) ‘Word picture of the job’

Tells candidates what is expected of them and allows qualities to be set for candidates

Disputes settled later based on the Job Description

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Job Description - Stage 3 (2) Title Relationships Purpose of the Job Duties and Responsibilities Authority Resources Available Location Qualifications

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Person Specification - Stage 4 Profile of the person required - essential and

desirable skills and qualities Physical Make-up - health, energy, appearance Attainments - education, training, expertise General Intelligence - thinking skills and mental

effort Special Aptitudes - specialist skills required? Interests - personal interests Disposition - personality Circumstances - special requirements

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Internal Recruitment May be a promotion or change of job or location

Applicant is known to the organisation The organisation has trained this employee Applicant will be aware of the culture and rules of

the organisations Can enhance employee morale

However: a limited pool of applicants Another vacancy is usually created

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External Recruitment Local and National Newspapers

Journals (eg British Medical Journal)

Recruitment Days

Recruitment Agencies

Internet Websites (Company or Recruitment Agency)

Job Centres / Careers Service

Skill Seekers and New Deal

Schools, Colleges or Universities (Milk Round)

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The Selection

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The Selection ProcessApplication Forms/CVs

Interviews

Testing

Candidate Selected

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Application Forms/CVs Content of Application Form

same information, same order, comparisons Curriculum Vitae

summary or listing of relevant work experience and education and other accomplishments

Checked against the Person Specification

Short List Created: Seems suitable (interview) Possibly suitable (maybe) Unsuitable (polite letter of rejection)

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Interviews (Planning) Date, time and place agreed Waiting area Tour around premises? Refreshments? Time for interview (30 mins)? When Notified of Outcome? Travelling Expenses? All Candidates Informed?

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The Good InterviewBe open-minded and unbiasedBe preparedWelcome the intervieweeControl the interviewSupply informationClose the interviewFollow-up

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Types of InterviewOne-to-one

Successive Interviews (eg Apprentice)

Panel Interviews (eg Bear Factory)

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Testing

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Testing Attainment Tests

Demonstrating skills eg WPM

Intelligence Tests (IQ) Mental reasoning - numeracy, literacy, problem solving

Aptitude Tests Tests of innate skills eg mechanical

Psychometric (Personality) Tests Personality tests - extrovert or an introvert

Medical Tests Army, police and airlines

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Assessment CentresCandidates may complete team-building

and role-playing exercises

Monitoring of social skills, leadership qualities, personality

Can be at a large Assessment Centre or at offices or a hired venue

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Training To teach new skills or improve their existing

skills

Staff development to improve skills for now and in the future

Training and Staff Development is very similar, however, staff development is long-term

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Costs and Benefits of Training Financial cost Training staff Loss of output

Flexibility Promotion of

change Upgrading skills Improved employee

satisfaction Improved image of

the organisation Motivation and

productivity

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Types of Training Induction training – given to new recruits.

Designed to give information about the organisation.

On-the-job training – ‘sitting next to Nellie’. This is carried out while the employee is doing their job.

Off-the-job training – carried out away from the organisation ie college.

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Staff development – based on a plan of work. May involve a combination of on-the-job and off-the-job training

Appraisal – a report on how well an employee is doing. Carried out at regular intervals. Should be positive with only constructive criticism.

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Equal OpportunitiesDiscrimination – choosing one person

over another

Applies to selection, training, promotion, and wages

Equal Opportunities means that everyone has the same chance

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Reasons for Discrimination Women (home, married, children)

Ethnic Minorities (eg religious holidays)

Disabled People (less capable)

Older People (slow, new technology)

Unproven ideas or Stereotypes

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Women at Work Average Wages

Men £11.31/hour Women £9.82/hour

Full-time Work Men 91% Women 57%

Flexible workforce, increasingly women fill vacancies, crèches, homeworking,

Remaining in education longer – management posts

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Legislation Equal Pay Act 1970 –

“broadly similar’ work = equal pay

Sex Discrimination Act 1975 Direct eg harassment (treating someone less favourably) Indirect eg must be 6’ tall

Applies to job adverts eg salesperson, cashier Selection – not restricted unless essential Interview – structured prevents bias Promotion Training Dismissal

Employment Tribunal

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Ethnic Minorities Race Relations Act 1976 – colour, race,

nationality, ethnic background

Direct: eg racial groups are unreliable Indirect: eg not allowing turbans (Sikhs)

Selection tests may discriminate as not in some ethnic groups culture

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Disabled People “those with a long-term health problem/disability

that limits the kind or amount of paid work they can do”

Disability Discrimination Act 1995 >15 employees must comply Reasonable adjustments eg fixtures, fittings,

telephone, work station, access, building features (lifts), work conditions, extra training

Direct: eg translator one person in wheelchair Indirect: eg requirement for driving licence

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Older People Employment rates fall as people get older:

80% employed aged 54 vs 40% aged 64 could be through choice less training offered

Some argue that there are advantages in recruiting older people: >40 experience and judgement >40 concentrate more on job responsibilities (less on salary

and status) >40 greater social intelligence

Examples are B&Q and Asda

The Employment Equality (Age) Regulations 2006

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Sexual Orientation Employment Equality (Sexual Orientation)

Regulations 2003

Outlaws discrimination in employment based on sexual orientation towards people of the same sex, opposite sex, or the same sex and the opposite sex

Some exceptions eg where employer applies a particular sexual orientation to avoid conflict with religious convictions

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Health & Safety at Work Raising the standard of safety and health

for all individuals at work and the public as far as ‘reasonably practicable’

Employer’s Duties: Written statement of general policy prepared Negligence proceedings can be taken against

management Providing training, information, instruction and

supervision Ensuring that all equipment is safe and risk

associated with handling, storing and transportation of articles are minimised

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Health & Safety at Work Employee’s Duties:

Take reasonable care of themselves and others Co-operate with the employer Not intentionally or recklessly interfere or misuse

anything in relation to H&S Carry out duties in accordance with training or

instructions Report any dangerous situations

Health & Safety Executive: Power to enter employer’s premises and carry out

investigations and examine materials

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Trade Union and Employment Rights Act 1993Employees cannot be dismissed for:

Taking steps to protect themselves in circumstances of danger

Performing H&S responsibilities Leaving a dangerous part of a workplace Bringing a H&S concern to employer’s

attention Performing functions as a H&S

representative

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Employment Protection Employment Relations Act 1999

one year = no unfair dismissal Parental leave (adoption) Remove limits on awards for unfair dismissal

Reasons (which are unfair): Membership of trade unions Pregnancy (being able to do job) Redundancy (without correct procedures) As a result of transfer of business Sunday Trading Act 1994

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Employment Protection Reasons (which are fair):

Incapable of doing job Unqualified ‘Misconduct’ – minor or major If unable to employ – eg lost driving licence False details given – eg application form Redundancy

Redundancy Job must have disappeared Must consult with trade unions Period of notice Redundancy payment

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Wage Act 1986 Wages are any sums paid to the worker in

connection with the job: Fees, bonuses, commission, sick pay, gift tokens,

vouchers Redundancy payments, expenses, loans are not

included Deductions

NI, shown in contract, agreed in writing eg Trade Unions

If an employer doesn’t pay – employee can complain to a tribunal

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National Minimum Wage Act 1999 21+ £5.80 18-21£4.83 16-17£3.57 (figures correct 01/10/09)

Why? Prevent poverty

Reduce inequality between men and women

Greater equality and fairness should motivate employees, reduce staff turnover and improve productivity

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Employee RelationsThe formal relationship between

employers and employees, which may involve each of their representatives.

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Main GroupsTrade Unions

Employers

Employers’ Associations

ACAS

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Trade UnionsAn organisation that represents

employees: Rates of pay and bonuses Work facilities and conditions Breaks Job security Redundancy / Dismissal Grievance Negotiating job descriptions and person

specifications

Collective Bargaining

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EmployersA duty of care to undertake a process

of negotiation and consultation with their employees and keep them informed of changes

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Employers’ Associations Organisations which represent employers

Often useful for a small firm negotiating with a large union

eg COSLA (Convention of Scottish Local Authorities)

CBI (Confederation of British Industry) Meat Marketing Board

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Professional AssociationsSimilar to Trade Unions -

include setting and maintaining standards/monitoring of qualifications

BMA (British Medical Association)

Police Federation

Professional Footballers Association

GTCS (General Teaching Council Scotland)

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Advisory, Conciliation and Arbitration ServiceBest way to improve industrial relations

is for employers and employees to work together

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ACASPreventing or resolving employment

disputes

Conciliating in actual/potential complaints before industrial tribunal

Providing information and advice

Promoting good practice

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Negotiation

Consultation

Arbitration

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Worker Directors:Elected by co-workers to sit on the Board of Directors

No voting powers but express employee views directly to BoD

Works Councils:Equal number of employees and managers

Discuss suggestions for change and changes being introducedLegal right of access to information on employee matters

Joint decision making powers

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Industrial Action Official industrial action has the backing

of a Trade Union: Trying to force the employer to take action on a

particular issue – lost output, lost sales, poor image

Employers can also take action: Lost earnings Threaten redundancy

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Industrial ActionEmployee Action

Sit in

Overtime ban

Work-to-rule

Go slow

Strike

Employer Action

Withdrawal of Overtime

Lock out

Close

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Policies and Procedures Appraisal – performance of employees is monitored

at regular intervals setting targets, identify training needs, identify promotion

opportunities

Grievance – what should employees do if they have been badly treated

Discipline – if the employee is in breach of organisation’s rules

Health and Safety – safety precautions, accident procedures etc

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Personnel Information and Record Keeping

Records normally kept: Basic employee data Training Absence Applicants – comply with EO Legislation Holidays Wages and Salaries Labour Turnover Occupational Health

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CongratulationsYou have completed

Human Resources

in

Higher Business Management