1. Business Management (National 5)
Management of People and Finance 3.1 – Human Resource Management
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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
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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
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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
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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
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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)
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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
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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.
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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
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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
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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
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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)
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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
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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
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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
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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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