1. Unit 4 Management of People
N5 BUSINESS MANAGEMENT
Unit 4
Management of People

2. List of Topics Retaining and motivating Recruitment and selection
methods used to motivate staff — financial and non-financial
how businesses minimise staff turnover
importance of stable staffing
Legislation
Freedom of Information
Data Protection
Health and Safety
Recruitment and selection
methods of recruitment (online advertisement, national press, local press, recruitment agencies)
methods of selection (application forms, CVs, assessment centres, testing, interviews)
Training
methods of training (in-house, college, peer, training centres, ‘off-the-job’)
costs and benefits of training methods

3. The Role of the Human Resource Department
The Human Resource Management (HRM) function in an organisation deals with any issue relating to staff (employees). Their activities include:
HRM
Recruits and selects staff
Motivates and trains staff
Provides safe working conditions
Promotes good working relations
Ensures employees get paid correctly

4. Today we are learning:
What is the difference between recruitment and selection
The steps in recruitment
The steps in selection

5. Recruitment Process Identify the Vacancy and carry out a Job Analysis
If someone has left the business or if the business has expanded. Decide on the tasks and duties the successful candidate would have to carry out
Prepare a Job Description
Contains information about what the job involves; tasks duties, responsibilities, pay, hours, holidays and other benefits
Prepare a Person Specification
This document provides information about the type of person that is required. It will include skills, qualities, qualifications and experiences.
Advertise the Job
Could be advertised internally or externally (see next slide)
Send out Applications
Information is collected by use of Application Forms or Curriculum Vitae (CV). A form collects questions about qualifications, experience, skills etc. The CV is produced by the applicant themselves

6. JOB DESCRIPTION

7. PERSON SPECIFICATION

8. JOB ADVERTISEMENT

9. JOB APPLICATION FORM or CV (Curriculum Vitae)
The application form is created by the organisation with the job vacancy and allows them to gather all applicant details they need in the same format – easy to compare details
JOB APPLICATION FORM or CV (Curriculum Vitae)
The CV is produced by the applicant themselves. There are many different formats and it makes it difficult for the organisation to compare the applicant details. However, it gives the applicant the opportunity to tell the organisation lots of information about themselves

10. Methods of Advertising Jobs
Internally (inside the organisation)
On the company intranet
Posters on company noticeboards
Externally (outside the organisation)
Recruitment agencies which do the work of finding the right staff on behalf of an organisation
On- line advertisements eg S1 jobs
National press eg jobs pages in the Glasgow Herald
Local press eg jobs section in the Oban Times

11. Selection Process Application Forms and CVs References Interviews
Application Forms are used if the organisation wishes to ask specific questions. They are also easier to compare.
References
This is a report from a previous employer, school or college. Includes ability to carry out job, attendance record, reliability etc
Interviews
This is a meeting between the applicant and people from the business. Applicants are asked a number of questions
The appearance and personality of the applicant can be assessed
But it can be a time-consuming process and some people get nervous and don’t perform well
Tests
Tests can assess skills eg ability to perform a skill
They may also be necessary to assess personality or medical fitness
Assessment Centres
These are centres where candidates are assessed as they carry out teambuilding activities. This can help assessor for particular skills like leadership abilities.

12. EMPLOYEE TRAINING
All employers must give training to new employees, otherwise they couldn’t do their jobs
Each company has a set way of doing things
Some skills are company specific
Some training is mandatory (esp health and safety, hazardous materials and emergency issues)

13. Three main Types/Methods of Training
Induction Training – training for new employees
On-the-Job Training – carried out in the workplace
Off-the-Job Training – carried out away from the workplace

14. Induction Training INDUCTION TRAINING – is for new employees.
It is mandatory in most companies and in all larger companies
ADVANTAGES
New staff become familiar with surroundings
more aware of what is expected of them
they settle in more quickly
DISADVANTAGES
other staff members have to carry out induction
new workers can not start working right away

15. On-The-Job Training
On the job training takes place within the business that the employee works for. Often carried out by experienced members of staff.
ADVANTAGES
Training specific to the job
No time is lost away from work
Less expensive than paying for courses away from the workplace
DISADVANTAGES
Quality of training may not be very good
Employees may feel awkward being trained by each other
Employees are still expected to carry out their normal duties

16. Off the job training
This training may be provided by a local college or training company. May last for a few hours or could be much longer.
ADVANTAGES
allows workers to learn in peace without distraction
Employees may gain formal qualifications
Training is provided by qualified trainer
DISADVANTAGES- can be costly; need staff to cover
No work distractions while training
Can be expensive
Can take a long time eg if studying for a degree

17. Today we are learning: What is meant by motivation
What is an incentive
What are financial and non-financial rewards
What is flexible working

18. MOTIVATING AND RETAINING STAFF
Employees are very important to organisations. Motivation encourages employees to work harder. This can be done using
Financial Incentives* – using money to motivate people
Non-financial Incentives* – using methods other than money to motivate people
* An incentive is something that encourages people to do something

19. Financial Incentives (rewards)
Detail
Salary
A salary is a fixed amount paid in 12 equal monthly instalments.
Time rates
Employees are paid per hours worked. This would encourage them to work longer hours
Overtime
Working over the minimum number of hours per week will give overtime payments. Often paid at “time and a half” or “double” time . Overtime is not always available.
Piece rate
Employees are paid according to the number of items produced. Encourages people to work hard and produce more however quality of the products may suffer if employees rush.
Bonus
This is an additional payment on top of salary or time rate – may be received for very good work or meeting a target. Encourages harder work to reach sales target for example.
Commission
Employees are paid a percentage of the value of their sales figure so employees are encouraged to try to sell more, eg cars. Can cause employee stress if they feel pressured to sell lots.

20. Salary Time rates Overtime Piece rate Commission
Harold is paid an annual salary of £27,000. How much is his monthly salary?
 £27,000/12 = £2,250
Time rates
James is a plumber and is paid £16.00 per hour. He does a 35 hour week. How much is he paid
 35 x £16 = £560
Overtime
James is asked to work 4 hours overtime on Saturday at time and a half. How much will he earn for Saturday?
 4 x £24 = £96
Piece rate
Anne is paid £70 per week but in addition receives £0.50 for every item she makes. This week she made 200 items. How much will she earn?
 £70 + (200 x £0.50) = £170
Commission
Laura is a car salesperson. She earns commission of 10% of sales. Last month she sold cars worth £80,000. How much will she earn?
 £80,000 x 10% = £8,000

21. Non-Financial Incentives
Company Car
The business provides the car the employee uses for work
Pension/Insurance
Employer will contribute to the employee pension scheme for their retirement. Some also pay for medical insurance for employees
Subsidised canteen/staff discount
Some employeers pay for lunches or provide canteen facilities at reduced prices. Many large companies also allow employees to buy their products at a discount
Childcare vouchers/creche
This can be an incentive for working parents to stay working for an organisation – childcare is very expensive and employees would be keen to work for an organisation which provided free or subsidised care or help with paying nursery costs.

22. Other Non-Financial Incentives
Giving people extra responsibilities to encourage them and providing promotion opportunities
Praising people for doing a good job
Allow people to work in teams or take part in team-building exercises
Providing training opportunities
Offering flexible working practices (see next slide)

23. Flexible Working Practices
Many people don’t want to work the traditional 9-5 day, Monday to Friday.
Part-time working
Allowing people to work less than a full-time contract (normally around 35 hours weekly)
Temporary contract
Employees are taken on for a short period of time, perhaps to cover absences or busy periods (eg Christmas)
Home-working
Allowing people to work from home using technology to keep in touch. Employees don’t have the same distractions at work and don’t have to travel every day. However they don’t have the same social contact with colleagues.
Teleworking
Allows people to work away from the office using technology to communicate with the business. This allows employees to work on the move, eg on the train but relies on technology working
Flexitime
Employees have the flexibility to choose their own start and finish times at work. They would have to be in the office for “core time” specified by the employer. Difficult for employer to know who will be in the office at particular times
Job Share
Two people share a full-time job. Encourages skilled staff to stay with the organisation eg after having a family. Relies on employees passing important information to each other
Condensed hours
Allows employees to work their weekly hours over 3 or 4 days

24. Motivating Staff – Benefits/Drawbacks
Increased productivity – employees are encouraged to work harder with piece rate for example
Decreased employee turnover as employees are happy to stay if they like the working conditions
Fewer staff absences as the staff are not under stress of coping with complicated home circumstances if they have flexible working
Stable staffing leads to better relationship with customers as they get to know the staff
Drawbacks
Can be difficult for the organisation to provide flexible working in some situations
Employees being paid a salary may not have the incentive to work hard as they know they will be paid regardless
Some non-financial rewards, eg training, can be expensive for the organisation to provide

25. Importance of Stable Staffing
Staff Turnover is the term used to describe staff leaving and new staff joining the organisation.
Organisations find it beneficial if they have a low staff turnover ie a stable staffing situation.
Finding and training new staff can be time consuming and expensive
Customers like to build up a relationship with staff and a stable staff can get to know particular customers, their needs and wants.

26. TRADE UNIONS AND INDUSTRIAL ACTION
This is an organisation which represents employees. The main aid is to improve the working terms and conditions of its members eg
Wages
Annual leave
Sickness benefits
Dismissal

27. WHAT IS INDUSTRIAL ACTION?
If relations break down, sometimes employees and unions decide to take industrial action

28. Picketing
This is when Union members who are on “strike” stand outside their place of work and try to persuade other employees not to cross the picket line.

29. Go-slow
This is when employees deliberately slow down their work rate, ie produce less.

30. Work-to-rule
This is when employees follow exactly what they are supposed to do in their contract of employment – this can slow down production.

31. Overtime ban
This is when employees only work the hours stated in their contract of employment

32. Sit-in
This is when employees occupy the work premises and normal work cannot take place.

33. Standard Grade Business Management
Strike
Official Strike
When employees do not come into work, ie withdraw their labour as directed by their Union.
Unofficial Strike
As above, but without the approval of their Union.
There are other methods of Industrial Action. Please read Business Studies For You Chapter 68 (pgs 262 & 263).
2.3 How do Businesses Survive

34. Advantages And Disadvantages Of Industrial Action
Difficulties With Industrial Action
Industrial action creates several difficulties for businesses:
Production is lost sales are lost and business might fail
The businesses reputation is damaged
Employer, employees relationships become strained
Benefits Of Industrial Action
Industrial action can be useful in the long run:
Grievances are 'out in the open' so the employer, employee relationship has an opportunity to improve
New procedures can be introduce that avoids conflict in the future
Management objectives can be altered to include consultation and participation by the work force

35. LEGISLATION You must be aware of Legislation regarding
Freedom of Information
Data Protection
Health and Safety
Equalities
Wages
Employment

36. The Freedom of Information Act 200
This act allows the general public access to information held by public bodies such as the government and local authorities.
It is designed to build trust in the government as the public know they can request information about spending by local authorities, for example.

37. Data Protection Act 1998
This act allows individuals to ask any organisation for access to the information they hold about them (the organisation may make a charge for this)
Any organisation holding data about living individuals must apply to the Data Registrar for permission
The data must be held according to certain principles, eg it must be
Up-to-date and accurate
Protected against misuse
Only held as long as necessary
Stored securely with limited access

38. Health and Safety at Work Act 1974
This lists the duties of employers and employees to ensure a safe working environment for everyone interacting with the business – including staff and the public.
Employers must:
Provide and maintain safety equipment and work systems
Ensure materials used are properly stored, handled, transported
Provide health and safety information and training (induction)
Have a health and safety representative
Provide a safe place of employment
Employees must:
Take care for themselves and others
Co-operate with employer on health and safety matters

39. The Equality Act
The Equality Act ensures that no employee is discriminated against because of
gender
age
disability
race
religion
sexual orientation
marital status.
This means an employer or manager can’t refuse to hire a person, promote a person or give an employee a difficult time at work because of any of the above reasons, nor can they pay them at a different rate from staff doing a similar job.

40. National Minimum Wage 1998
This sets the minimum wage per hour that an employee can be paid.
The minimum wage will depend on the age of the employee.

41. The Employment Act
This act states the conditions and rights employees must have including maximum working hours, breaks required and maternity and paternity leave that people are entitled to.
This includes number of hours worked in a row
This includes minimum breaks
This includes allowing new parents to take leave after the birth of a child