OCR Level 3

Cambridge Technicals
in Business

Unit 5:
Human Resource
Management in Business
 Why are human
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 about
Thinking about human resources means
looking at a number of factors.

External
Internal factors
Supply of Labour
labour
Skills costs
requirementsWorkforce
skills
Organisational
Demand for
Government needs
products/
policy services
Workforce
Changing
profiles Labour market
nature of work competition
 Getting the most from
people
Why do people come to work and
how can an organisation get the
most from them?
What skills do What training is
Are people
people in in the
the
Howneeded
do we to
best place to use
organisation have? improve skills?
motivate people?
their skills?
What makes
Is motivation all people feel good
What about
does money? at work?
absenteeism tell us Can skills be
about motivation at transferred to
Whywork?
is treating What theories
different areas ofcan
the
people fairly so explain what motivates
organisation?
important? people at work?
 Kelloggs – a great place to
work?
Kelloggs has based its HR strategy around motivation with
the aim of making the company ‘a great place to work’.
Promotion
The company have and development
a range Selftheir
of ways of motivating
opportunities
employees, for example: Actualisation
Mutual respect
of each other Esteem
Employees can buy and sell
holiday days if they value
time off more than pay.Social needs

Flexible workplace, safe and

healthy working environment Safety needs

Competitive
Basic needs
salary
Kelloggs – working with
everyone
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:

Encouraging ideas:
Communication:
Study leave from
and such as a staff
formal meetings
secondment opportunities: to a
suggestion scheme and
200-seater
helping staffcoffee
to feellounge
valued ‘Snap, Crackle and
in the foyer
and motivated to develop for
Save’, which encourages
theirinformation discussions
skills and apply them at cost saving ideas.
and socialising.
work.
 Managing performance
It is important toimportant
ItIf is actively
people manage
are well
to ensure people’s
motivated andperformance
fairness
in their when
roles
havein order
rightfor
measuring
the the organisation
skills,
and then they to be
managing
should be successful.
performance.effective
Howincan their
thisroles
be
but howachieved?
do we know?

Using indicators,
goals, SMART
Usingtargets
probationary periods,
and benchmarking.
appraisals, and methods of
supporting employees.
 What will you learn?
After completing this unit, you will:

Understand the Understand how

importance of to gain committed
managing employee employee
performance at work cooperation
Know how
organisations
motivate
Know the factors that employees
are involved in
human resource
planning in
organisations
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