human resource management
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JW 2008 1
Higher Business Management
Unit 2Learning Outcome 4
Human Resource Management
JW 2008 2
The Role of People in Organisations
• People are probably the most valuable “resource” that an organisation possesses.
• In the same way that machinery must be maintained, staff have to be looked after in such a way that they can produce their best effort.
• This involves their welfare, training, safety and motivation. Also would deal with recruitment, disciplining, compliance with legislation.
• A happy workforce is likely to be an efficient workforce.
JW 2008 3
Changing Patterns of Employment
• movement away from primary and secondary industries to tertiary sector - more employed in the of provision services
• full-time employment has stayed fairly static
• Increase in part-time and short-term contracts
• Increase in home working and tele-working
• Greater flexibility of the workforce
• Many more women in employment
• Increase in self-employment
primary
secondary
tertiary
JW 2008 4
The Modern Workforce
The Core Workers• Essential workers - managers,
skilled workers - permanent and well-paid
The Contractual Fringe• Sub-contractors - suppliers of
components or services - cheaper (no pensions, holidays etc)
The Flexible Labour Force• Part-time, temporary - help core
workers at peak times - low rates of pay
JW 2008 5
The New Employment
Pattern
Advantages• 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
Disadvantages• Frequent recruitment
and selection• Occasional staff
shortages• Less commitment from
staff• Increased need for
training due to high staff turnover
• Lack of continuity of staff - customers may become unhappy
JW 2008 6
TASK
• Discuss the way in which employment patterns have changed over the last 20 years (6)
JW 2008 7
Human Resource Management (HRM) refers
to that part of an organisation’s
activities designed to attract, train, develop
and maintain an effective workforce
JW 2008 8
HRM Functions within the Organisation
Executive - experts in the HRM area - policies developed in line with legal requirements
Audit - policies properly implemented
Facilitator - training of staff to respond to HRM issues
Consultancy - advice and guidance to managers on HRM problems
Service - providing up-to-date information on legislation
JW 2008 9
HRM – DM LEVELS
TACTICAL• Human Resource
planning• Recruitment of
specialised staff
• Staff training and development
• Promoting effective industrial relations
OPERATIONAL• Identifying
training needs• Encourage
staff to accept training
• Arrange the training
• Deal with day-to-day issues such as absenteeism, grievances, welfare, etc
STRATEGIC• Formulate
personnel policies for the organisation as a whole
• Devise guidelines for implementation of policies
• Working towards corporate goals - defining corporate culture
JW 2008 10
Planning
future staf f
requirements
Coping with change
HR
PLANNI NG
J ob descriptions
Person Specif ications
I nternal and external recruitment
I nterviews
RECRUI TMENT
AND
SELECTI ON
I nduction
On and of f j ob training
Staf f development
Appraisal
TRAI NI NG
AND
DEVELOPMENT
Staf f Welfare
Grievance and Discipline
I ndustrial Relations
EMPLOYEE
RELATI ONS
Maintaing records
Conf identiality
DP Act
EMPLOYEE
RECORDS
Health and Safety at Work
Employee Protection
EMPLOYEE
LEGI SLATI ON
HUMAN RESOURCE FUNCTI ON
JW 2008 11
Hr planning• HR Planning is the method by which a
business forecasts how many and what type of employees it needs now and in the future.
• Forecasting employee demand involves• using past information• analysing current employment trends• estimating future staffing • forecasting future supply of workers with appropriate skills
• estimating workers’ productivity• employing work study• calculating staff turnover• using business and management knowledge
JW 2008 12
.Employees can be grouped under 4 headings
• New staff – induction/contract of employment
• Potential staff – advertising, recruitment, selection,
• Existing staff – appraisal, continuing professional development
• Departing staff – retirement packages/grievance
JW 2008 13
• EXTERNAL INFLUENCES CAN AFFECT THE HR DEPARMENT AND THEIR PLANNING.
• DESCRIBE HOW THE STAFFING OF AN ORGANISATION MAY BE AFFECTED BY CURRENT EXTERNAL INFLUENCES
Question…………………..
JW 2008 14
Possible areas of influence
• Political – changes in legislation, eg working week, paternity leave, minimum wage, retirement age
• Economic – boom or recession in the UK/world economy, number of unemployed
• Social – number of women working, type of working patterns demanded, holidays, retirement age
• Technological – robots, computer aided design, remote working.
JW 2008 15
HR RECORDS
• PERSONAL HISTORY – most of this will be taken from the application form and then added to.
• EMPLOYMENT HISTORY – terms and conditions of employment, details of sick days, latecoming, disciplining, grievances
• APPRAISAL INFORMATION – results of appraisal, training requested and undertaken
JW 2008 16
An organisation has a problem with high staff absenteeism and decides to analyse the problem to see if a specific pattern emerges.
(2001 case study)
• In what way might the absenteeism records be broken down to see if a pattern emerges (2)
• If the firm can identify a particular pattern of absenteeism what measures might be taken to rectify the problem. (4)
• Why is a high staff turnover of concern to an organisation? (4)
JW 2008 17
Recruitment and Selection TerminologyRecruitment• Job analysis• Job description/specification• Person specification• Internal/external recruitment• Application forms/CVs
Selection• Leeting• Interviews • Psychological tests• Testing
JW 2008 18
Job Analysis• This is a study undertaken to identify the main features of a job • physical requirements and tasks• skill requirements and tasks• mental requirements and tasks• areas of responsibility• areas of accountability• physical environment• hazards specific to job
JW 2008 19
Job Description• Detailed description of exactly what job
entails. This will normally be given to anyone who applies for the job.• job title• relationship with other jobs in
organisation• purpose of job• main duties and responsibilities• authority
• over others• in decision making
• resources• financial, human, equipment, work area
• location
JW 2008 20
Person Specification
• Details the type of person needed for the job. Includes essential and desirable attributes• physical make-up• Qualifications necessary• attainments• general intelligence• special aptitudes• interests• disposition• circumstances
JW 2008 21
INTERNAL RECRUITMENT
• Firms may choose to fill positions with employees who already work for the organisation by advertising internally
• The benefits of this are• the applicant is already known• the firm may have already invested time and money in training this employee and can benefit from this investment
• applicant is already aware of the culture• promotion from within is good for morale• cheaper than external recruitment in terms of money and time
JW 2008 22
EXTERNAL RECRUITMENT
• Recruiting outwith the organisation, by advertising job in• local newspapers• national newspapers• specialist publications, eg TES• internet, eg S!jobs.com or firm’s own website• recruitment agencies• headhunting
• Points to consider• wider pool of applicants• new ‘blood’• costly in time and money• unknown quantity • demotivating for existing staff?• resentment from unsuccessful internal
candidates?
JW 2008 23
TASK
• Justify the need to carry out a job analysis when a vacancy arises.
(2) • Compare a job description to a person specification.
(3)
• Justify the reasons why a company may always look to fill a vacancy with an existing employee. (4)
• Explain the possible negative effects of this policy? (3)
• Describe an effective recruitment procedure for an organisation. (4)
JW 2008 24
SELECTION
• It is important to select the most appropriate candidate for the job.
• Selection methods may involve:• Weeding out using CVs or application forms
• Interviewing• Testing – IQ, psychological, aptitude
JW 2008 25
INTERVIEWING• Interviews are useful for assessing the personal qualities of a candidate
• Interviews are less useful for assessing the technical ability of candidates
• Interviews may be one-to-one, panel or group• Poor interviews are a result of
• Lack of training in interview technique • Poor preparation
• It is possible that interviewers may • get a false impression of a candidate • and may wish to back up an interview • by testing candidates
JW 2008 26
The good interview
• Be open minded and unbiased• Be prepared – read CVs, application forms, think about suitable questions
• Welcome the interviewee• Control the interview• Supply information• Close interview• Follow-up
JW 2008 27
Interviewing and technology
• Using video conferencing can be a cheaper solution than paying travel costs for a number of applicants.
• Telephone interviews are even cheaper and may be the only interview for jobs in call centres.
JW 2008 28
TESTING• Aptitude test – giving candidates a problem or task to solve
• Attainment test – a speed test for word processing operators
• Intelligence test – may be on numeracy, literacy and general knowledge
• Personality test – sometimes called psychometric testing
• Selection exercises – outward bound courses, team interviews, social situations
JW 2008 29
TASK• Describe a selection process which an organisation may use to ensure the best applicants are appointed to work. 2006 Sec 2 Q1(c) (5 marks)
• Discuss the different forms of testing that an organisation could use to select the best candidate.
• 2007 Sec 2 Q2 (d) (6 marks)
JW 2008 30
Training and Development Terminology
• Flexibility of staff (multi-skilling)
• Coping with change• Job satisfaction• Staff motivation• Induction training• On and off-the-job training• Retraining• Skills upgrading• Appraisal• Target Setting
JW 2008 31
TRAINING• INDUCTION
• Given to new staff to introduce them to the organisation
• ON-THE-JOB• Takes place whilst employee is doing their job, eg, ‘work shadowing’ ‘sitting next to Nellie’
• OFF-THE JOB• Attending training course, gaining qualifications, day release. Can be ‘in house’ or at college, etc
• STAFF DEVELOPMENT• Based on plan agreed at appraisal. Eg, to prepare employee for promotion
JW 2008 32
Quick Task
Outline advantages and disadvantages to the
organisation of:• Induction training• On the job training• Off the job training
JW 2008 33
The costs and benefits of staff training
Benefits• Staff become more
competent• Motivation increases• Long term
Productivity increases
• Reduced waste• Organisation’s image
is improved• Changes become easier
to introduce• Fewer accidents
Costs• Trained staff may leave
to go to other organisations
• Financial costs of paying for training
• Work time is lost when staff are being trained
• Quality of training must be high if training is to have a positive effect
• Staff may request a pay rise after training
JW 2008 34
TASK• What are the costs and benefits of staff training
to an organisation. (6)
• Describe the term induction training. (1) (2007 Sec 1 Q6 (i))
• Outline the benefits of induction training (4)(2007 Sec 1 Q6 (ii))
• Organisations can use both on the job and off the job training for employees.
• Describe each of these types of training (2)
JW 2008 35
APPRAISAL• a method of evaluating the performance of employees and assessing their usefulness to the business
• may be INFORMAL or FORMAL
• normally carried out by an employee’s line manager however other forms exists• self• peer• subordinate
JW 2008 36
INFORMAL APPRAISAL• based on ‘feelings’ of management
• result of working together on daily basis
• little discussion between manager and employee
• opinions based on factors of which employee is unaware
JW 2008 37
FORMAL APPRAISAL• based on evidence collected in a formal way
• involves an appraisal interview• used to:
• evaluate performance• identify employees ready for promotion• increase motivation• identify training needs• identify strengths and weaknesses• set future performance targets• assess the recruitment and selection process
• improve communications• award salary increases• plan future staffing
JW 2008 38
TARGET SETTING
• Appraisal is used for target setting for such things as:• attendance at work• quality and relevance of work
• membership of committees• communication abilities• level of output achieved• training to be undertaken• relationships with staff
JW 2008 39
Task – 2003 Case Study
• Explain how an organisation might assess the effectiveness of any training programme?
(2)
• Justify why training should be a continuous process for any organisation?
(4)
• Appraisal is the name given to a meeting held between employee and employer to review performance and discuss progress. Discuss the role of appraisal and its ability to motivate staff.
• (2008 CS Q8) (4)
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