2. MANAGEMENT OF PEOPLE AND FINANCE Outcome 1 Human Resource Management Higher Business Management

3. What would you do in HR?

4. Role and Function of HR Workforce Planning Recruit, select and retain quality staff Training, development and appraise Maintenance of Personnel Records Employee Relations Grievance and Discipline Ensure safe working conditions Ensure staff treated fairly

5. Roles and Functions - FACES FACILITATOR AUDITOR CONSULTANCY EXECUTIVE SERVICE Using P99 summarise each of these roles into your jotter

6. Changing Patterns of Employment Decline in full-time, permanent work More women working Increase in service sector employment Increase in public sector employment Higher unemployment amongst older men Increased number of fixed length-contracts Increased self-employment Increase in flexible working practices

7. Changing Patterns of Employment Flexible Working Practices Part-time work Variable Hours Flexi-time Homeworking Teleworking Hot-desking Job Share Temporary work Self-employment Write a definition of each of these into your jotter.

8. Modern Employment Pattern Advantages Core employees can focus on core activities only Saves on salaries and space No need to pay for pensions, holidays or redundancy Reduced NI contributions Allows flexibility and can respond quickly to change Disadvantages Frequent recruitment and selection Occasional staff shortages Less commitment from staff Increased need for training due to high staff turnover Lack of continuity of staff - customers may become unhappy

9. The Core Workers Essential workers - managers, skilled workers - permanent and well-paid The Contractual Fringe Sub-contractors - suppliers of components or services - cheaper (no pensions, holidays etc) The Flexible Labour Force Part-time, temporary - help core workers at peak times - low rates of pay The Modern Working Environment

10. Contractors/Outsourcing Contractors are people/businesses who provide goods and services that the organisation does not wish to provide for itself. Examples: cleaners, consultants, security guards, suppliers Because they are not permanent they are less expensive (no pension pay or holiday entitlement for example)

11. Reasons for Sub-Contracting/Outsourcing More skilled workforce Expertise Economies of scale Can concentrate on core activities Saves money in equipment/training What are common examples of outsourced departments?

12. Manpower Planning If firm’s labour supply is more than demand: Redundancy Retraining Early retirement ‘Natural wastage’ If firm’s labour supply less than demand: Additional advertising Retraining programmes Increase pay & other incentives

13. Keeping Personnel Records on EVERY employee (database) Key Fields: Unique identifiers like National Insurance Number (AB Council uses this) Attendance Discipline Performance Communicating (Correspondence) Selection of staff (promotion, training, teams, specific jobs) Includes info on appraisals, training etc Conforms to the Data Protection Act

14. Task! 1)Describe 3 objectives of the Human Resources department. 2)Identify the 5 roles of Human Resources. 3)Differentiate between full time and part time employment. 4)Differentiate between temporary and permanent employment. 5)Describe what is meant by outsourcing or contracting. 6)Write a short report or create a powerpoint presentation illustrating the changing patterns of employment over the past 40 years. Make reference to sectors of the economy, increase in part-time employment and include examples of flexible working practices.

15. Steps in Recruitment 1.Identify a job vacancy 2.Conduct a job analysis 3.Prepare a job description 4.Prepare a person specification 5.Advertise the job (Internally or Externally)

16. Prepare Job Description This states: Job title Location Tasks Duties & Responsibilities Hours Holiday Entitlements See P102

17. Prepare Person Specification A description of the type of person suitable for post is drawn up. This includes: Skills Qualifications Experience Personal qualities Hobbies & Interests See P102

18. Advertising Post Internal and External Internal Newsletters Notice board External Newspaper Adverts Internet Job Centre Recruitment Agency Schools/Colleges/ Universities

19. 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

20. 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

21. Selection Process 1.Application forms/CVs (shortlist created) 2.Testing Attainment, aptitude, IQ, psychometric and medical tests 3.Assessment Centres 4.Interviews (1-2-1, successive and panel) 5.Selection and notification 6.Reference checks

22. Application Forms Initial contact checked against the Person Specification to select suitable candidates for vacancy

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

24. Testing, Testing 1.Describe and discuss 4 tests that may be used in the selection process. 2.Take a personality test! http://www.outofservice.com/bigfive/ www.myworldofwork.co.ukwww.myworldofwork.co.uk - my DNA TEST

25. Assessment Centres Activities: Team building Role Play Interviews Qualities looked for: Social skills, leadership qualities & personality Intensive assessment held over one or two days Allows business to see large amount of applicants at once

26. Interviews One-to-one Successive Panel

27. A ‘Good’ Interview An interviewer should: Be open minded and unbiased Be prepared Welcome the interviewee Control the interview Supply the information Close the interview Follow-up

28. Task Activity 3 – Questions Only

29. Reasons for Training and Development (CPD) Improve staff performance Improve productivity Staff more flexible Increase job satisfaction Staff more motivated Upgrade staff skills Reduce injuries & accidents Organisation gains good image

30. Training Costs Financial costs Expenses Loss of output Staff may leave after training Staff may request pay rise Quality of training must be high Benefits Flexibility Upgrade skills Employee satisfaction Improved image for organisation Motivation and productivity

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

32. Training Methods On the job – training conducted at employee’s place of work. Some organisations offer training schemes and work-based qualifications. Off the job – training occurs outside of work e.g. university or college

33. Training Methods “Sitting next to Nellie” Demonstration – task demonstrated then trainee undertakes task Coaching – trainee taken through step by step by trainer Job Rotation – trainee learns tasks in different departments/jobs Distance learning – trainee receives resources and works on their own (and VLE’s)

34. Tasks 1.Outline the advantages and disadvantages of using VLE’s. 2.Outline the advantages and disadvantages of work training schemes and work-based qualifications. 3.Activity 4 - Training 4.Exam Prep Questions P89 – Q16a and b P93 – Q24a and b Use P82-85 to help

35. Staff Development - Appraisals Assessment of staff performance usually held annually. Uses Appraisal/PRD form then interview To identify future training needs Consider individual’s development needs Improve employee performance Provide feedback on performance Identify promotion hopefuls Problems: Difficult to measure Personality clashes Read P93 on other appraisal types

36. Factors of Motivation Pay levels Open door policy Flexible working practices Job security – permanent contracts Bonuses and incentives Training and CPD Profit sharing schemes Employee of Month Quality circles Team building/social events Promotional prospects Responsibility and empowerment Working conditions Fringe benefits Participation in decision-making Working in a team

37. Motivation & Needs Maslow’s Hierarchy of Needs Needs at top more important than at bottom But lower needs have to be satisfied first P86

38. Adam’s Equity Theory Pay Praise Rewards Conditions Recognition Time Effort Loyalty Commitment

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

40. Motivation Financial Methods Flat rate, piece rate, commission. Performance Related Pay, profit sharing, share ownership Non-Financial Methods Empowerment, delegation, job enrichment, job enlargement, job rotation, quality circles, career structures, work councils Describe 3 financial and 3 non-financial methods of motivating staff.

41. Leadership Leaders should influence and encourage employees to work towards achieving the organisational goals. Autocratic Power is with the leader and all decisions made by them. One directional communication and no empowerment of employees. Democratic Consultation and communication with employees. Encourages participation and often seen as motivating. Laissez-faire Doesn’t exercise control and employees are ‘left’ to get on with job themselves with no direction or structure.

42. Leadership Theory Another theory is McGregor’s X and Y Leadership theory. 1.Research this theory (P87) and summarise it into your jotter. 2.What do YOU think about this theory? Write down your thoughts on this theory under the summary.

43. Empowerment… Subordinates can exercise power over their working lives. MORE responsibility MORE independence MORE involvement in decisions

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

45. Empowerment Benefits to firm Improved productivity Increased staff motivation and morale Faster decision making Fresh ideas can improve quality decisions Organisation may become more competitive Faster communication Improved management/employee relations

46. 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. QUESTION: Discuss methods of empowering staff within an organisation.

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

48. Keeping Personnel Records on EVERY employee (database) Key Fields: Unique identifiers like National Insurance Number (AB Council uses this) Attendance Discipline Performance Communicating (Correspondence) Selection of staff (promotion, training, teams, specific jobs) Includes info on appraisals, training etc Conforms to the Data Protection Act

49. Employee Relations “The formal relationship between employees and employers” Trade Union recognition Collective Bargaining Employee relations procedures

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

51. Discipline 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

52. Negotiation - reach an agreement, but needs some middle ground between the two positions held. Settlement or compromise. Consultation - Informing employees of changes and ask for thoughts. Final decision by the EMPLOYER. Arbitration - When no agreement occurs, then a third party, an independent arbitrator eg ACAS is called. Arbitrators are neutral and unbiased and will listen to both sides and offer a fair and practical solution

53. Industrial Action Employee Action Sit in Overtime ban Work to rule Go slow Strike Employer Action Withdrawal of overtime Lock out Closure TASK – describe each of these

54. Trade Unions Organisation representing workers re: pay negotiations, working conditions, dismissal, redundancy, training and development. TUC and EIS are examples of Unions Trade Unions are funded by annual subscriptions by its members

55. ACAS – 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

56. 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

57. Employers Associations These are organisations that represent the views and interests of companies within one sector of industry Newspaper Society, Engineering Employers’ Association are such examples They provide a range of services: They act as a pressure group A collective market research organisation A public relations voice for the industry Can provide negotiating teams

58. Professional Associations These organisations represent ‘professional’ occupations such as the GTC for teachers, BMA (British Medical Association) for Doctors, for the Police – the Police Federation and even for footballers: the PFA They sometimes perform similar roles to unions, and also are involved in maintaining standards, etiquette and codes of conduct

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

60. Contract of Employment Job title Rules/duties Salary and pension info Hours of work Holiday entitlement Arrangements in event of illness Terms of notice Grievance procedures Disciplinary procedures

61. Equalities Act 2010 This new act encompassed older discriminatory Acts into 1 legislation including – Equal Pay Act 1970 Sex Discrimination Act 1975 Race Relations Act 1976 Disability Discrimination Act 1995 That protects discrimination in employment on grounds of religion or belief, sexual orientation and agereligion or beliefsexual orientation age

62. Equalities Act 2010 The Equality Act 2010 is the law which bans unfair treatment and helps achieve equal opportunities in the workplace and in wider society. The act covers nine protected characteristics, which cannot be used as a reason to treat people unfairly. Every person has one or more of the protected characteristics, so the act protects everyone against unfair treatment. The protected characteristics are: age disability gender reassignment marriage and civil partnership pregnancy and maternity race religion or belief sex sexual orientation

63. National Minimum Wage Regulations 1999 This states the minimum wage amount to be paid to employees. There are 3 hourly rates – 16-17 year olds - £3.57 18-21 year olds - £4.83 22 or over - £5.80

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

65. Health & Safety at Work Act 1974 – the EMPLOYER’S responsibilities Look after employee’s welfare Provide protective clothing where necessary. Provide First Aid facilities Keep records of any accidents or incidents which occur. Prepare a Health & Safety policy

66. Health & Safety at Work Act 1974 – the EMPLOYEE’S responsibilities Look after their own and their colleagues’ health and safety. That they report any accidents or faulty equipment Cooperate at all times with their employer

67. 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.

68. Freedom of Information Act 2000 (ICT) A law to make provision for the disclosure of information held by public authorities or by persons providing services for them and to amend the Data Protection Act 1998 and the Public Records Act 1958; and for connected purposes.

69. BM Unit 1 - LO2 68 Data Protection Act 1998 Covers information that is held on computers eg customers, staff, suppliers etc Aims to protect the rights of the individual by providing legislation to govern the collection, storage and use of information that is held on electronic or paper file systems There are 8 basic principles Businesses must register with the Data Protection Registrar who oversees enforcement and application What are they?

70. Computer Misuse Act 1990 Aims to deal with the problem of hacking computer systems It is an offence to: Try to gain unauthorised access to computer material Gain unauthorised access with intent to commit further offences Unauthorised modification of computer material BM Unit 1 - LO2 69

71. Copyright, Designs and Patents Act The Copyright, Designs & Patents Act makes sure that there is no unauthorised copying of material that has been produced. Examples of items which are copyrighted are: Music CDs, Books, Textbooks, CD-Roms, Newspapers etc etc If anyone would like to copy information they have to seek permission from the owner. It is easy to identify which materials have been copyrighted by identifying the copyright symbol: © BM Unit 1 - LO2 70 Apple was awarded £665 million in a landmark victory over Samsung, which was found guilty over intellectual property infringement.

72. Questions a)Describe the role of the human resources department within an organisation (3) b)Explain how legislation will affect the running of a business in the areas of: Health and safety Employment Use of ICT