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N5 Bus Man – 3.1: HRM © BEST Ltd 1 Business Management (National 5) Management of People and Finance 3.1 – Human Resource Management.

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Presentation on theme: "N5 Bus Man – 3.1: HRM © BEST Ltd 1 Business Management (National 5) Management of People and Finance 3.1 – Human Resource Management."— Presentation transcript:

1 N5 Bus Man – 3.1: HRM © BEST Ltd 1 Business Management (National 5) Management of People and Finance 3.1 – Human Resource Management

2 N5 Bus Man – 3.1: HRM © BEST Ltd 2 What is HRM all about?  HUMAN RESOURCE MANAGEMENT (HRM) is all about managing the WORKFORCE so that a business has enough suitably qualified staff to carry out all necessary tasks in an efficient way.  Advantages of effective HRM include: ◦ STAFF EFFICIENCY AND MOTIVATION ◦ INCREASED SATISFACTION AND SALES ◦ INCREASED PROFITS AND SECURITY

3 N5 Bus Man – 3.1: HRM © BEST Ltd 3 Types of Workers  SEMI-SKILLED WORKERS AKA manual or blue collar workers No/few formal qualifications No/few related work skills No/limited work experience Perform manual/repetitive jobs Often part time/temporary staff  SKILLED WORKERS AKA white collar or professional workers Some/many formal qualifications Some/many related work skills Accept responsibility Perform specialised jobs Usually full time and permanent staff

4 N5 Bus Man – 3.1: HRM © BEST Ltd 4 Changing Employment Patterns  In the UK today, businesses are trying have as flexible a workforce as possible to allow them to react quickly to changes in their markets or technology.  This has led to the following trends in Employment Patterns and staff for HRM to manage. ◦ MORE FEMALES IN THE WORKPLACE ◦ FEWER CORE STAFF ◦ MORE CASUAL STAFF ◦ DECLINE OF SECONDARY SECTOR WORK ◦ DEVELOPMENT OF TERTIARY SECTOR WORK ◦ IT REPLACING STAFF

5 N5 Bus Man – 3.1: HRM © BEST Ltd 5 Implications of Changing Employment Patterns  ADVANTAGES of changes in working patterns which HRM should be aware of include the following. ◦ REDUCED OBLIGATIONS SAVES MONEY ◦ REDUCED SPACE MEANS LOWER RENTS ◦ EASY TO MEET DEMAND THROUGH CASUAL STAFF  DISADVANTAGES of the above changes in working patterns which HRM should be aware of include the following. ◦ COSTS OF FREQUENT CASUAL RECRUITMENT ◦ POSSIBLE STAFF SHORTAGES ◦ CASUAL STAFF COMMITMENT OR QUALITY MAY BE LOW ◦ LESS RETURN ON HIGH CASUAL TRAINING COSTS

6 N5 Bus Man – 3.1: HRM © BEST Ltd 6 Recruitment of Staff  RECRUITMENT of staff involves getting people with the necessary skills and qualities to apply for a position with your business.  The main steps in the recruitment of staff are: ◦ IDENTIFY JOB DETAILS -Job Analysis -Job Description -Person Specification ◦ ADVERTISE VACANCY -Local or National Press -Job Centre Plus -Recruitment Agency -Online Advertisement ◦ RECEIVE APPLICATIONS (as FORMS/CV’s)

7 N5 Bus Man – 3.1: HRM © BEST Ltd 7 Selection of Staff  SELECTION of staff involves looking at the details of all of the people who have applied, and choosing the person who has the qualities that best suit the post.  The main steps in the selection of staff are: ◦ STUDY APPLICATIONS RECEIVED ◦ DRAW UP LIST OF BEST APPLICANTS ◦ INTERVIEW CANDIDATES ◦ TEST CANDIDATES ◦ REFERENCES ◦ CHOOSE BEST CANDIDATE AND OFFER JOB ◦ PREPARE AND COMPLETE CONTRACT ◦ REVIEW PROCESS

8 N5 Bus Man – 3.1: HRM © BEST Ltd 8 Staff Training  Businesses should make sure that they provide the following TYPES of STAFF TRAINING. ◦ INDUCTION TRAINING ◦ IN SERVICE RETRAINING  These types of training can be delivered through the following METHODS. ◦ ON THE JOB TRAINING ◦ OFF THE JOB TRAINING  Staff training is important as it makes sure that: ◦ NECESSARY WORK IS DONE ◦ STAFF ARE DEVELOPED AND MOTIVATED ◦ ORGANISATIONAL PERFORMANCE IS IMPROVED  Staff training should be evaluated to ensure that it has had the desired effect.

9 N5 Bus Man – 3.1: HRM © BEST Ltd 9 Staff Motivation and Retention  People work for the following reasons: ◦ TO MAKE MONEY ◦ JOB SATISFACTION ◦ SECURITY ◦ COMPANIONSHIP ◦ PROGRESSION OF SKILLS  Businesses must try and account for these reasons to RETAIN their staff and make them MOTIVATED.  Common ways of achieving this include: ◦ WAGE SYSTEMS ◦ WORKING CONDITIONS

10 N5 Bus Man – 3.1: HRM © BEST Ltd 10 Wages System  Staff will be motivated and stay in a business if they feel they are well paid using the following WAGES SYSTEMS. ◦ FIXED RATE PAYMENT SYSTEM  Salary  Contract ◦ VARIABLE RATE PAYMENT SYSTEM  Hourly Rate  Overtime Rate  Piece Rate  Commission  Bonuses  Profit Sharing Schemes

11 N5 Bus Man – 3.1: HRM © BEST Ltd 11 Working Conditions  Staff will receive a CONTRACT OF EMPLOYMENT when they begin a job to give them the details of their post. These details include the WORKING CONDITIONS for their job.  WORKING CONDITIONS are they way work will be completed, and the common systems used include the following. FIXED HOURS JOB SHARING FLEXITIME TELEWORKING CONDENSED HOURS

12 N5 Bus Man – 3.1: HRM © BEST Ltd 12 The importance of motivation and retention  Employee motivation and retention is very important, because if staff and managers DO NOT get on about issues such as wages and conditions, then a business will lose customers and profits from the following. ◦ POOR EFFICIENCY ◦ POOR QUALITY ◦ GO SLOW (INDUSTRIAL ACTION) ◦ WORK TO RULE (INDUSTRIAL ACTION) ◦ OVERTIME BAN (INDUSTRIAL ACTION) ◦ STRIKE (INDUSTRIAL ACTION) ◦ PICKETING (INDUSTRIAL ACTION)

13 N5 Bus Man – 3.1: HRM © BEST Ltd 13 Legislation Compliance - Workplace  LEGISLATION affects HRM as it lays down rules for the organisation of workplace and the treatment of staff through the following laws. ◦ HASAW (1974) ◦ DISPLAY SCREEN REGULATIONS (1992) ◦ EMPLOYMENT RIGHTS ACTS (1996) ◦ MINIMUM WAGE ACT (1998) ◦ EQUALITY ACT (2010)  The main rules that these laws create are: ◦ UNLAWFUL DISCRIMINATION IS PROHIBITED ◦ EMPLOYMENT PROTECTION ◦ SAFE AND HEALTHY WORKING ENVIRONMENT

14 N5 Bus Man – 3.1: HRM © BEST Ltd 14 HRM Record Keeping  HRM will keep records of the following. ◦ BASIC EMPLOYEE DATA ◦ EMPLOYEE TRAINING DATA ◦ EMPLOYEE ABSENCE DATA ◦ RECRUITMENT AND SELECTION DATA ◦ HOLIDAY DATA ◦ LABOUR TURNOVER DATA ◦ HEALTH AND SAFETY DATA  This information will be kept for the following reasons. ◦ MONITOR PERFORMANCE AND PROGRESS ◦ PROVIDE INFO FOR DEVELOPMENT ◦ PROVIDE ADVICE TO NON-HRM STAFF

15 N5 Bus Man – 3.1: HRM © BEST Ltd 15 Legislation Compliance - Data  LEGISLATION affects how HRM manages its electronic records through the following laws. ◦ DATA PROTECTION ACTS (1998) ◦ FREEDOM OF INFORMATION ACT (2002)  The main rules that these laws create are: ◦ LEGAL COLLECTION OF DATA ◦ SECURE DATA STORAGE ◦ ACCESS TO DATA HELD

16 N5 Bus Man – 3.1: HRM © BEST Ltd 16 Which factors affect the work of HRM?  The effectiveness of HRM activities undertaken by a business will be affected by the following factors. ◦ INTERNAL FACTORS  Finance  Human Resources  Capital ◦ EXTERNAL FACTORS  Political Factors  Economic Factors  Social Factors  Technological Factors  Environmental Factors  Competitive Factors


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