OCR Level 3Cambridge Technicals
in Business
Unit 5: Human Resource Management in
Business
Why are human Why are human resources important?resources important?People are sometimes described as the most valuable resource that an organisation has.
Human resources involves managing
the current workforce…
…while human resource planning means thinking about the organisation’s future human resources needs and
taking steps to meet those needs.
Factors to think aboutFactors to think about
Workforce profiles
Demand for products/ services
Thinking about human resources means looking at a number of factors.
Internal factors
Organisational needs
Skills requirements
External factors
Supply of labour
Labour costs
Workforce skills
Government policy
Labour market competition
Changing nature of work
Getting the most from Getting the most from peoplepeople
Why do people come to work and how can an organisation get the
most from them?What skills do people in the
organisation have?
Are people in the best place to use
their skills?
What training is needed to
improve skills?How do we
motivate people?
Is motivation all about money?
What makes people feel good
at work?What does absenteeism tell us about motivation at
work?
Can skills be transferred to
different areas of the organisation?
Why is treating people fairly so
important?
What theories can explain what motivates
people at work?
Kelloggs – a great place to Kelloggs – a great place to work?work?
Employees can buy and sell holiday days if they value time off more than pay.
Kelloggs has based its HR strategy around motivation with the aim of making the company ‘a great place to work’. The company have a range of ways of motivating their
employees, for example:
Competitive salary
Flexible workplace, safe and healthy working environment
Promotion and development opportunities
Mutual respect of each other
Basic needs
Social needs
Safety needs
Self Actualisation
Esteem
Kelloggs – working with Kelloggs – working with everyoneeveryone
Mutual co-operation between an organisation and its workforce is vital to be successful, but achieving this is
not always easy. Kelloggs tries to do this using:
Communication: from formal meetings to a
200-seater coffee lounge in the foyer for
information discussions and socialising.
Encouraging ideas: such as a staff suggestion scheme and ‘Snap, Crackle and Save’, which encourages cost saving ideas.
Study leave and secondment opportunities:
helping staff to feel valued and motivated to develop
their skills and apply them at work.
Managing performanceManaging performanceIt is important to actively manage people’s performance
in their roles in order for the organisation to be successful.
If people are well motivated and have the right skills, then they
should be effective in their roles but how do we know?
Using probationary periods, appraisals, and methods of supporting employees.
It is important to ensure fairness when measuring and managing performance. How can this be
achieved?
Using indicators, goals, SMART targets
and benchmarking.
What will you learn?What will you learn?After completing this unit, you will:
Know the factors that are involved in
human resource planning in
organisations
Know how organisations
motivate employees
Understand how to gain committed
employee cooperation
Understand the importance of
managing employee performance at work
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