1 Higher Business Management BDA II Learning Outcome 2 Human Resource Management

2 The Role of People in Organisations n People are probably the most valuable “resource” that an organisation possesses. (want ‘quality’ staff) n In the same way that machinery must be maintained, staff have to be looked after in such a way that they can produce their best effort. (train, develop, appraise) n This involves their welfare (eg equality), training, safety and motivation. n A happy workforce is likely to be an efficient workforce. (positive employee relations)

3 HRM Roles: Executive - experts in the HRM area - policies developed in line with legal requirements Auditor - policies properly implemented Facilitator - training of staff to respond to HRM issues (provide or organise) Consultancy - advice and guidance to managers on HRM problems Service - providing up-to-date information on legislation and changes

4 Elements of HRM n Planning future staff requirements (coping with change) n Recruitment and Selection n Training and Development n Health & Safety at Work n Employee Relations n Routine record-keeping of staff details - names, addresses, courses completed, etc

5 HRM - Strategic Level n Formulate personnel policies for the organisation as a whole n Devise guidelines for implementation of policies n Working towards corporate goals - defining corporate culture

6 HRM - Tactical Level n Human Resource planning n Promoting effective industrial relations n Staff training and development n Recruitment of specialised staff

7 HRM - Operational Level n Identifying training needs n Deal with day-to-day issues such as absenteeism, grievances, welfare, etc n Encourage staff to accept training n Arrange the training

8 Changing Patterns of Employment n Structural changes - movement away from primary and secondary industries to tertiary sector - provision of services n Decline in full-time employment n Increase in part-time and short-term contracts n Increase in home working and tele-working n Greater flexibility of the workforce n Many more women in employment n Increase in self-employment

9 The Modern Workforce Charles Handy indentifies 3 different types of workforce employed in any organisation: The Core Workers n Essential workers - managers, skilled workers - permanent and well-paid The Contractual Fringe n Sub-contractors - suppliers of components or services - cheaper (no pensions, holidays etc) The Flexible Labour Force n Part-time, temporary - help core workers at peak times - low rates of pay

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

11 n Analyse current employment trends HUMAN RESOURCE PLANNING n Forecast potential future staffing requirements supply of workers labour turnover n Plan how best to satisfy and motivate employees develop appropriate culture support staff training and development release surplus staff

12 HRM Activities n Preparing job descriptions n Safety at work (Health & Safety) n Planning future staff requirements (coping with change) n Performance appraisal n Training - induction and skills n Recruiting and selecting new staff n Complying with the law - equal opportunities, discrimination, etc n Handling grievances

13 Recruitment and Selection Terminology n Job analysis n Internal/external recruitment n Person specification n Job description/specification n Application forms/CVs n Psychometric tests n Aptitude tests n Selection n Interviews

14 Training and Development n Flexibility of staff (multi-skilling) n Coping with change n Job satisfaction n Staff motivation n Induction training n On and off-the-job training n Retraining n Skills upgrading n Appraisal n Health and Safety

15 TYPES OF TRAINING n Induction training n On-the-job training n Off-the-job training n Staff development

16 TRAINING - Costs n Employees - cost of course, travel, subsistence n Training Staff - salaries, accommodation n Loss of output or cost of cover n Staff may leave or ask for pay rise after training Benefits n Staff more competent, productive, accurate n Flexibility of staff n Increased motivation n Co. has better image n Less accidents n Less resistant to change

17 Employee Relations Terminology n Trade Unions n Collective bargaining n Procedures – discipline, grievances n Terms and conditions n Worker participation n ACAS n Employers’ Associations (CBI) n Employee Legislation n Health and Safety

18 TRADE UNIONS 4 to represent people at work 4 to protect and improve pay & conditions 4 to campaign for laws and policies to benefit workers T Single industry union - NUM, EIS T Multi-industry union - TGW + TUC - collective voice of all member unions

19 Employee Relations Terminology Collective bargaining Collective bargaining is a system whereby negotiations are carried out on behalf of several parties instead of negotiating separately. Collective bargaining provides a channel of communication between workers and management. Trade union representatives negotiate on behalf of members with the management.

20 INDUSTRIAL ACTION STRIKE + BOYCOTTS + WORK-TO-RULE + SIT-IN + OVERTIME BAN It is the responsibility of the HRM dept to try to avoid disputes and industrial action. If unsuccessful, employees may use one of the following actions.

21 Employee Relations – process: n NEGOTIATION: Employees and employers will meet to discuss issues that affect both parties to agree, plan and implement some changes n CONSULTATION : Enforced on employers under employment law, but they are under no obligation to take account of views of employees. n ARBITRATION : An arbitrator, usually ACAS, is unbiased and neutral, will listen to both sides, gather evidence and offer a solution.

22 WORKERS’ PARTICIPATION Works Councils 4 A group of representatives from workforce who have the legal right to access info from management and have joint decision-making powers on most matters relating to employees. 4 European Works Councils legislation (2000)

23 HR POLICIES & PROCEDURES 4 Appraisal 4 Grievance 4 Discipline 4 Health & Safety Policies and procedures must be developed to ensure that employees are aware of what is expected of them at work and how their performance will be measured.

24 LEGISLATION IN THE WORK PLACE HEALTH & SAFETY at WORK ACT (1974) OFFICES,SHOPS and RAILWAY PREMISES ACT (1963) THE WORKPLACE (HEALTH, SAFETY AND WELFARE) REGULATIONS (1992) HEALTH & SAFETY (DISPLAY SCREEN EQUIPMENT) REGULATIONS (1992) REPORTING OF INJURIES, DISEASES AND DANGEROUS OCCURRENCIES REGULATIONS 1995 (RIDDOR) HEALTH & SAFETY (FIRST AID) REGULATIONS 1981 THE MANAGEMENT OF HEALTH & SAFETY AT WORK REGULATIONS 1999

25 LEGISLATION IN THE WORKPLACE Sex Discrimination Act 1975, 1986 Race Relations Act 1976 Disability Discrimination Act (1995) Equal Pay Act 1970 Employment Act 1989 Part-time Workers (Prevention of Less Favourable Treatment) Regulation 2002 National Minimum Wage Act 1998 Working Time Regulations Act 1998 Trade Union & Employment Rights Act 1993