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

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

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

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

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

JOB DESCRIPTION

PERSON SPECIFICATION

JOB ADVERTISEMENT

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

Methods of Advertising Jobs Internally (inside the organisation) E-mail 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

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.

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)

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

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

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

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

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

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

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.

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

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.

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)

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

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

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.

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

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

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.

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

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.

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

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

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

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

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

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.

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

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

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.

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.

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