Human Resource Management

Higher Business Management

Function of Human Resources
HRP Recruitment and Selection Training and Development Maintenance of Personnel Records Legislation Employee Relations Grievance and Discipline

Changing Patterns of Employment
Decline in full-time, permanent work Decline in heavy engineering Increase in service sector employment (call centre, IT) Increase in women working (suited to new areas of employment)

Changing Patterns of Employment
Teleworking Flexitime Part-time Job Sharing Fixed Contracts Sub-contracts

Reasons for Sub-Contracting
More skilled workforce Expertise Economies of scale Can concentrate on what you·re good at Saves money in equipment/training

Human Resource Planning
Factors affecting HRP:
Changing goals of a business Changes in Market Changes in Technology Competition Population Changes Trade Unions Government Legislation

Labour Turnover
Costs of High Labour Turnover: Costs of advertising, interviewing & training new employee Loss of production while place is being filled Low morale amongst other employees

Manpower Planning
If firm·s labour supply > demand: Redundancy Retraining Early retirement ¶Natural wastage·
If firm·s labour supply < demand:
‡ Additional

advertising ‡ Retraining programmes ‡ Increase pay & other incentives

Motivation & Needs
Maslow·s Hierarchy of Needs Needs at top more important than at bottom But lower needs have to be satisfied first

Herzberg·s Two Factor Theory
Frederick Herzberg believed there were two factors that affected people at work: Hygiene Factors ² ones with potential to cause dissatisfaction at work (salary, working conditions, status, over-supervision) Motivator Factors ² aspects of a job that can lead to positive job satisfaction (achievement; recognition; meaningful, interesting work; psychological growth and learning)

Factors of Motivation
pay levels job security promotional prospects Responsibility working conditions fringe benefits participation in decision-making working in a team

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

«providing the means by which subordinates can exercise power over their working lives. It offers more responsibility and independence, different from delegation because there is more freedom to decide what to do and how to do it.

Empowerment Benefits to firm
Improved productivity Increased staff motivation Speedier decision making Fresh ideas can improve quality of decisions made Organisation may become more competitive Faster communication as there are fewer levels in the organisation Improved management/employee relations

Empowerment benefits to employee
May feel valued Greater chance of promotion Improved pay Improved skills Employees may be given extra training Improved motivation

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.

Identify Job Vacancy
Could occur due to: An employee leaving organisation An employee being promoted A new post being created

Conduct Job Analysis
This identifies: Tasks to be performed Skills needed Duties & responsibilities Gives idea of ideal candidate

Prepare Job Description
This states: Job title Location Tasks Duties & Responsibilities Hours Holiday Entitlements

Prepare Person Specification
A description of the type of person suitable for post is drawn up. This includes: Qualifications Experience Personal qualities Hobbies & Interests

Advertising Post Internal and External
Internal 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

One-to-one interview Successive interview Panel interview

Application Forms
Initial contact, checked against the Person Specification to select suitable candidates for vacancy Usually in conjunction with CV

Curriculum Vitae or life history Personal Details Education Qualifications Work Experience Hobbies/Interests Additional Info

Attainment tests Aptitude tests IQ tests Psychometric tests Medical tests

Assessment Centres
Intensive assessment held over one or two days Activities: Team building Role Play Interviews Qualities looked for: Social skills, leadership qualities & personality

Selection Methods: % used by business

Validity at predicting work performance
(0 = no use; 1 = very helpful)

Interviews References Assessment Centres Aptitude Tests Graphology

92 74 14 11 3

0.17 0.13 0.40 0.54 0.00

Assessment Mental Ability tests (IQ)


Disadvantages Use of ability tests can result in high levels of adverse impact can be costly to develop & administer Unstructured interviews typically have poor validity Skill of the interviewer is critical

useful predictors of performance across a wide variety of jobs Are usually easy and inexpensive to administer Employment Structured interviews, interviews based on job analyses, tend to be valid May reduce adverse impact if used in conjunction with other tests



Disadvantages Can be expensive to develop & administer Specialised training required for assessors; Reports are almost always positive

Assessment Good predictors of Centres performance, managerial potential, & leadership ability Apply the whole-person approach to personnel assessment Reference checks used to verify information previously provided by applicants May encourage applicants to provide more accurate information

Reasons for Training and Development
Improve staff performance Improve productivity Staff more flexible Increase job satisfaction Staff more motivated Upgrade staff skills Reduce injuries & accidents

Costs Sending people on training costs Paying trainers Loss of output Benefits Flexibility Upgrade skills Employee satisfaction

Induction Training
For new employees Covers aspects of: Company procedures Meeting colleagues Tasks of job Health & safety

Training Methods
On the job ² training conducted at employee·s place of work Off the job ² training occurs outside of work e.g. university or college

Training Methods
´Sitting next to Nellieµ ² task demonstrated then trainee undertakes task Coaching ² trainee taken through step by step by trainer Job Rotation ² trainee learns tasks in different departments/jobs Self-paced/distance learning ² trainee receives resources and works on their own

Staff Development
Set targets and have appraisals Motivate Staff through: Bonuses and financial rewards Employee of Month Team building/social events

Assessment of staff performance 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

Reasons for Appraisal
To identify future training needs Consider individual·s development needs Improve employee performance Provide feedback on performance Identify promotion hopefuls

Keeping Personnel Records
Keeps personal info on every employee Includes info on appraisals, training etc« Conforms to the Data Protection Act

Uses of Records
Key Fields: Unique identifiers like National Insurance Number (Glasgow City Council uses this) Attendance Discipline Performance Communicating (Correspondence) Selection of staff (promotion, training, teams, specific jobs)

Employee Relations
´The formal relationship between employees and employersµ

Trade Unions
Organisation representing workers re: pay negotiations, working conditions, dismissal, redundancy Collective bargaining is the basis of unions, whereby a group of workers stand a better chance to negotiate Trade Unions are funded by annual subscriptions by its members

Trade Union Aims
To improve pay of its members Improve working conditions Support training & development of members Ensure members· interests are considered by employers

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

Grievance is a complaint by employee against employer Can be taken up by: Industrial tribunal ACAS Trade Union

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

ACAS ² 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

Negotiation Consultation Arbitration

Its purpose is to reach an agreement, but needs some middle ground between the two positions held. Success of the firm should benefit both employee as employers, so it is in their best interests to come to a settlement. Employers and employees discuss matters that are important to both of them in order to come to an agreement. It also involves compromise.

Informing employees of new rules and regulations that are being brought in is consultation. The changes may have been forced upon the firm by the Government, therefore no agreement is necessary and employees views are not needed to be taken into account. Final decision lies with the organisation.

When no agreement occurs, then a third party, an independent arbitrator such as ACAS is called in. Arbitrators are neutral and unbiased and will listen to both sides and offer a fair and practical solution. Binding arbitration is when both sides agree to go with the decision of the third party.

Works· Councils
They are set up by an organisation and contains the same amount 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.

Industrial Action
Employee Action Sit in Overtime ban Work to rule Go slow Strike Employer Action Withdrawal of overtime Lock out Closure

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

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

Employment Rights Act (1996)
Covers: Unfair dismissal Redundancy Maternity leave

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

Health & Safety at Work Act (1974)
Covers: Working conditions Provision of safety equipment Workplace hygiene

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.

Sign up to vote on this title
UsefulNot useful