HUMAN RESOURCE Management Higher Business Management Human Resource

HUMAN RESOURCE Management Higher Business Management Human Resource Management

HUMAN RESOURCE Management Role and importance of human resource management The most valuable asset in any organisation is its workforce. It is the human resources that generate wealth by providing services and producing goods. Care must be taken over employees, especially if the business wants to secure and retain staff.

HUMAN RESOURCE Management Function of human resources Human resource planning Recruitment and selection Training and development Maintenance of personnel records Legislation Employee relations Grievance and discipline Click for clip

HUMAN RESOURCE Management Changing patterns of employment In the UK 26 million people (70% of the working population) are employed. Decline in full-time, permanent work. Decline in heavy engineering. Increase in tertiary (service) sector employment (call centres, IT). Increase in women working (suited to new areas of employment).

HUMAN RESOURCE Management Changing patterns of employment Part-time work Variable hours Temporary work Self-employment

HUMAN RESOURCE Management Human resource planning Factors affecting human resource planning Changing goals of a business Changes in market Changes in technology Competition Population changes Trades unions Government legislation

HUMAN RESOURCE Management

HUMAN RESOURCE Management 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).

HUMAN RESOURCE Management Reasons for subcontracting Potentially better skilled workforce. Professional expertise. Economies of scale. Can focus on what you’re good at (sticking to the knitting). Saves money in equipment and training.

HUMAN RESOURCE Management Motivation and needs Maslow’s hierarchy of needs Needs at the top more important than those at the bottom. Lower needs have to be satisfied first. Click for clip

HUMAN RESOURCE Management 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).

HUMAN RESOURCE Management Other motivation theorists to research Henry Mintzberg Douglas Mc. Gregor

HUMAN RESOURCE Management Factors of motivation Pay levels Job security Promotional prospects Responsibility Working conditions Fringe benefits Participation in decision-making Working in a team

HUMAN RESOURCE Management Motivation Financial methods Flat rate, piece rate, commission, PRP, profit sharing, share ownership Non-financial methods Empowerment, delegation, job enrichment, job enlargement, job rotation, quality circles

HUMAN RESOURCE Management Steps in recruitment Is there a vacancy in the organisation? 2. What does the job involve? 3. Where are we going to attract our applicants from? 4. Process of selection. 1.

HUMAN RESOURCE Management Identify job vacancy Could occur due to: an employee leaving the organisation retirement an employee being promoted a new post being created.

HUMAN RESOURCE Management Conduct job analysis This identifies: tasks to be performed skills needed (both physical and mental) duties and responsibilities (and accountability) environment job takes place in (including any hazards). Gives an idea if a position is needed.

HUMAN RESOURCE Management Prepare job description This states: job title location tasks duties and responsibilities hours holiday entitlements qualifications required by applicant.

HUMAN RESOURCE Management Prepare person specification A description of the type of person suitable for post. This includes: qualifications skills experience personal qualities hobbies and interests.

HUMAN RESOURCE Management Advertising post internally and externally Internal External Newsletters Newspaper Notice Internet board Job adverts centre Recruitment agency Schools/colleges/ universities

HUMAN RESOURCE Management Internal recruitment Advantages Disadvantages Applicant and ability Limited skills pool familiar to organisation Own job needs to be filled Organisation may have Resentment from invested in person overlooked staff through training Individual aware of culture (no need for induction training)

HUMAN RESOURCE Management External recruitment Advantages Can target specific sections of the population Wider job skills pool No need to fill another post Disadvantages Expensive Time taken can be long Successful candidates may turn down job

HUMAN RESOURCE Management Answer a question Describe the recruitment process that may be used by a human resources department. (5 marks) 2009 10 minutes

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

HUMAN RESOURCE Management Solution Identify a job vacancy, which could arise due to retirement or an employee leaving the firm. Carry out a job analysis that will detail the requirements of the job. Prepare a job description outlining the roles, duties and responsibilities of the job. Draw up a person specification outlining the skills, qualifications and experience required, both essential and desirable, by candidates. Advertise the vacancy either internally or externally. Send out application forms to candidates.

HUMAN RESOURCE Management First steps in selection When applications are received they should be divided into three categories: 1. 2. 3. seems suitable – invite to interview possibly suitable – invite for interview if not enough in category 1 unsuitable – send polite letter of rejection. A shortlist is created.

HUMAN RESOURCE Management Application forms Initial contact. Information gathered checked against the person specification to select suitable candidates for the vacancy. Usually read in conjunction with CV.

HUMAN RESOURCE Management CV Curriculum vitae or life history: personal details education qualifications work experience hobbies/interests additional information.

HUMAN RESOURCE Management Interviews One-to-one interview Successive interview Panel interview Now watch some good and bad interviews… Click for clip

HUMAN RESOURCE Management Interview advice Be prepared – know Be positive about the organisation Sit up! Don’t slump in Be smartly dressed your chair Be early Drink lots of water for concentration Have a firm handshake Take your time when answering a question Make eye contact Structure your answers Click for clip

HUMAN RESOURCE Management A ‘good’ interview An interviewer should: be open minded and unbiased be prepared welcome the interviewee control the interview supply the information close the interview follow up.

HUMAN RESOURCE Management Tests Attainment tests Aptitude tests IQ tests Psychometric tests Medical tests

HUMAN RESOURCE Management Assessment centres Intensive assessment held over one or two days Activities: team building role play interviews Qualities looked for: social skills, leadership qualities and personality

HUMAN RESOURCE Management Answer a question Describe a selection process that an organisation could use to ensure it employs the best workers. (4 marks) 2010 8 minutes

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

HUMAN RESOURCE Management Solution Compare application forms and CVs to the job description and person specification to identify potential interviewees. Send for references, to check that what is said in the application packs is a true reflection of the candidate. Interview the candidates to discover what skills they have and what they can bring to the job. Test the candidates by using a test that is measurable, eg psychometric, aptitude etc. On some occasions a second set of interviews may be conducted. Use assessment centres for some candidates – used for high-powered jobs.

HUMAN RESOURCE Management Reasons for training and development Improve staff performance Improve productivity Staff more flexible Increase job satisfaction Staff more motivated Upgrade staff skills Reduce injuries and accidents

HUMAN RESOURCE Management Training Costs Benefits Sending Flexibility people for training is expensive Cost of trainers Loss of output Upgrade skills Employee satisfaction Improved image for organisation Motivation and productivity

HUMAN RESOURCE Management Induction training For new employees. Covers: company procedures meeting colleagues tasks of job health and safety.

HUMAN RESOURCE Management Training methods On the job – training conducted at employee’s place of work. Off the job – training occurs outside workplace, eg university or college.

HUMAN RESOURCE Management Training methods ‘Sitting next to Nellie’ – task demonstrated then trainee undertakes task. Coaching – trainee taken through task step by trainer. Job rotation – trainee learns tasks in different departments/jobs. Self-paced/distance learning – trainee receives resources and works on their own.

HUMAN RESOURCE Management Answer a question Describe the benefits to an organisation of staff training. (5 marks) 2010 10 minutes

HUMAN RESOURCE Management Self-marking You are going to answer on your own! Have you answered well? Does the answer make sense? Is it worth a mark?

Solution HUMAN RESOURCE Management The flexibility of staff to carry out different jobs is increased as they will learn new skills. Staff ability to carry out jobs is improved as they will have learned new skills. Staff knowledge of systems and processes is improved as this knowledge will be regularly updated. This should increase productivity within an organisation as employees become better at their jobs. Training will be motivational to staff, as they feel they are being developed and nurtured by the firm. The overall image of the organisation is improved as the firm is seen as one that develops staff and is progressive.

HUMAN RESOURCE Management Staff development Set targets and have appraisals. Motivate staff through: bonuses and financial rewards employee of month team building/social events.

HUMAN RESOURCE Management Appraisal Assessment of staff performance, usually held annually. Uses appraisal form then interview. Job focus – looks for success in meeting goals and targets. Person focus – looks for person’s skills and qualities. Problems Difficult to measure Personality clashes

HUMAN RESOURCE Management Reasons for appraisal To identify future training needs. To consider individual’s development needs. To improve employee performance. To provide feedback on performance. To identify promotion hopefuls.

HUMAN RESOURCE Management Answer a question Discuss the value of an appraisal system. (4 marks) 2006 8 minutes

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

Solution HUMAN RESOURCE Management To identify future training needs, which can then be planned for over the coming year. To consider development needs of the individual in order for the employee to progress. To improve the performance of the employee and therefore increase productivity and efficiency. To provide feedback to the employee about their performance, and so improve long-term results. To identify people who have promotion potential, who can be nurtured and developed. To identify people who have additional skills that could be useful to the organisation and who may otherwise be overlooked. To identify targets for the coming year. May demotivate employees if the system highlights them as underperforming.

HUMAN RESOURCE Management Employee relations ‘The formal relationship between employees and employers’. Refers mainly to the way employers deal with employees either as individuals or as part of a group. Industrial relations is the part of employee relations that involves dealings between employers and trade unions.

HUMAN RESOURCE Management Main areas covered by employee relations policies Trade union recognition Collective bargaining Employee relations procedures The employment relationship Participation and involvement

HUMAN RESOURCE Management Advisory, Conciliation and Arbitration Service (ACAS) Provides impartial information to people with problems at work. Prevents and resolves problems at work. Settles complaints about employees’ rights. Runs workshops and seminars on latest employment issues and legislation.

HUMAN RESOURCE Management Employers’ associations These are organisations that represent the views and interests of companies within one sector of industry, eg Newspaper Society, Engineering Employers’ Association. They provide a range of services: • pressure group • collective market research organisation • public relations voice for the industry • provider of negotiating teams.

HUMAN RESOURCE Management Trade unions Organisation representing workers on pay negotiations, working conditions, dismissal, redundancy. NUM and EIS are examples of unions. Collective bargaining is the basis of unions – giving a group of workers a better negotiating position. Trade unions are funded by annual subscriptions from their members.

HUMAN RESOURCE Management Trade union aims Improve the pay of its members. Improve working conditions. Support training and development of members. Ensure members’ interests are considered by employers.

HUMAN RESOURCE Management CBI vs TUC The Confederation of British Industry (CBI) and the Trade Unions Congress (TUC) are counterparts. The CBI represents the employers associations, whereas the TUC represents the different workers’ unions.

HUMAN RESOURCE Management Professional associations These organisations represent ‘professional’ occupations, eg the British Medical Association (BMA) for doctors, the Police Federation for the police and even the Professional Footballers’ Association (PFA) for footballers. They sometimes perform similar roles to unions, and also are involved in maintaining standards, etiquette and codes of conduct.

HUMAN RESOURCE Management Collective bargaining Begins with a change in existing contracts. Employers make offer to employee representatives (reps). Reps tell members and counter-claim occurs. Negotiations begin. Eventually a compromise is reached.

HUMAN RESOURCE Management Answer a question Describe the role of the following in supporting employees and employers when disputes occur in the workplace: trade unions ACAS (6 marks) 2006 10 minutes

HUMAN RESOURCE Management Hint Think about the kind of things unions get involved in, eg pay, working conditions, negotiation etc Also think of ACAS as a peace envoy sent by the United Nations to help bring two warring countries to the negotiating table!

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

Solution Trade unions represent employees with regard to wage negotiations, conditions of service, dismissal, redundancy and other work-related matters. They undertake collective bargaining on behalf of employees and have greater negotiating power than individuals. Unions offer employers advice in work-related matters. Unions are involved with industrial tribunals. HUMAN RESOURCE Management ACAS give advice to employers, employees and trade unions on matters such as contracts of employment, human resource policies, legislation and other work-related matters (advice). At the request of management, ACAS can intervene in a dispute and offer a solution that both parties may accept (conciliation). ACAS can look at the problem and recommend a course of action which both parties agree to abide by (arbitration).

HUMAN RESOURCE Management Grievance is a complaint by employee against employer. Can be taken up by: industrial tribunal ACAS trade union.

HUMAN RESOURCE Management Discipline procedures are taken out by employers against an employee. Employees must be aware of the rules. Verbal and written warnings given for breaking rules. Suspensions can follow then dismissal.

HUMAN RESOURCE Management Processes Negotiation Consultation Arbitration

HUMAN RESOURCE Management Negotiation Where employers and employees discuss matters of mutual concern and come to an agreement on what should happen. The essence of this process is that both parties must agree to the final outcome. Negotiation usually involves bargaining and compromise.

HUMAN RESOURCE Management Consultation Where organisations discuss matters of mutual concern with their employees and listen to the views expressed. However, the final decision lies with the organisation and there is no obligation to come to any agreement. In making its decision the organisation may or may not take account of the opinions of its employees.

HUMAN RESOURCE Management Arbitration Where employers and employees decide that a decision will be made by an independent, neutral arbitrator. Both parties agree to accept the decision, whatever it may be. This process usually involves both parties putting their case separately to the arbitrator, who may also collect other relevant evidence. This often happens when negotiations have broken down and employers and employees have failed to agree on the matters under discussion.

HUMAN RESOURCE Management Works councils Set up by an organisation and contain the same number of employees and employer representatives. Groups meet to discuss any proposed changes before they are implemented. Decisions reached by the council are usually accepted by the workforce as their representatives have been involved.

HUMAN RESOURCE Management Answer a question Describe the role of human resource management in employee relations. (5 marks) 2010 10 minutes

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

Solution HUMAN RESOURCE Management Recognition of trade unions, who represent employees. (Written) procedures for dealing with staff complaints to ensure every employee is fairly treated. (Written) terms and conditions for all staff – required by law. Use of works councils to give employees a say in the running of the business. Ensure employees are aware of the goals and objectives of the organisation. The role of appraisal by ensuring performance reviews take place. Work with ACAS and take part in collective bargaining process in order to agree to working conditions.

HUMAN RESOURCE Management Industrial action Employee action Employer action Sit Withdrawal in Overtime ban Work to rule Go slow Strike overtime Lock out Closure of

HUMAN RESOURCE Management Answer a question Describe the types of industrial action employees can use. (4 marks) 2008 8 minutes

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

Solution HUMAN RESOURCE Management A strike is when employees refuse to do their work and do not enter the workplace – this is the most extreme form of industrial action. A sit-in is when employees are in their place of work but do not do any work. Work to rule is when employees only undertake the exact jobs written in their job description. Go-slow is when employees deliberately work at a much slower rate. Overtime ban is when employees do not do any overtime. This can affect overall production. Picketing is when employees protest at the entrance to the place of work, trying to dissuade other employees from going in to work.

HUMAN RESOURCE Management Record keeping A key element of human resource management is maintaining records of personnel. By doing this, the human resource management department is able to: find out information about employees in the organisation monitor the work of the human resource management department provide information that the organisation can use in the development of strategy provide advice to line managers and others in the organisation.

HUMAN RESOURCE Management Information stored Basic employee data, eg address, employee number, National Insurance number etc. Training, eg courses attended, qualifications obtained. Absence, eg because of sickness. Applicants for posts, eg to comply with equal opportunities legislation. Holidays. Wages and salaries, eg pay scale, method of payment, bonuses. Labour turnover. Occupational health.

HUMAN RESOURCE Management Health & Safety at Work Act (1974) Covers: working conditions provision of safety equipment workplace hygiene.

HUMAN RESOURCE Management Sex Discrimination Act (1975) Illegal to discriminate against employee or job applicant on grounds of gender or marital status.

HUMAN RESOURCE Management Race Relations Act (1976) Illegal for employers to discriminate against employee or job applicant on grounds of ethnic background.

HUMAN RESOURCE Management Equal Pay Act (1970) Pay conditions must be equal for employees of the opposite sex who are performing same work.

HUMAN RESOURCE Management Employment Rights Act (1996) Covers: unfair dismissal redundancy maternity leave.

HUMAN RESOURCE Management National Minimum Wage (1998) Every worker in UK must receive a basic hourly rate. Came into being on 1 April 1999. Currently workers aged 18– 22 must receive £ 4. 83 an hour. Workers aged 22+ receive £ 5. 80 an hour.

HUMAN RESOURCE Management Employment Act (2008) Grievance and discipline Repealed the 2002 Act concerning industrial tribunals, always paying out in favour of employees when employers do not follow proper procedures. Changed to allow tribunals to adjust the payout by 25%. ACAS only has to try to reach a settlement in disputes – does not actually have to decide.

HUMAN RESOURCE Management Employment Act (2008) National minimum wage Should be self-enforcing. Underpaid employees can now start a tribunal themselves. Underpaid employees can receive help from the Inland Revenue. The Inland Revenue can deal out £ 5000 fines to employers in breach of legislation.

HUMAN RESOURCE Management Employment Act (2008) Employment agencies Employment Agency Standards Inspectorate (EASI) looks after agency workers and can now take employers who break conditions dealing on a range of issues to court. EASI works more closely now with the Inland Revenue in collecting minimum wage.

HUMAN RESOURCE Management Employment Act (2008) Trade union membership Members of the British National Party can be expelled from a trade union without it being deemed discriminatory.

HUMAN RESOURCE Management Answer a question Describe the purpose of: the Health & Safety at Work Act 1974 the Race Relations Act 1976 the Equal Pay Act 1970 (3 marks) 2006 6 minutes

HUMAN RESOURCE Management Peer marking You Has are going to swap answers. your partner answered well? Does the answer make sense? Is it worth a mark?

Solution HUMAN RESOURCE Management Health & Safety at Work Act 1974 States employers’ and employees’ duties with regard to health and safety. Employees have a duty to take care of their own health as well as that of other employees. Race Relations Act 1976 Unlawful to discriminate on the grounds of race, colour, religion or ethnic origin with regard to recruitment, training, promotion or conditions of service. Equal Pay Act 1970 All employees should receive the same rate of pay where work of equal value is undertaken.