2. OCR Level 3 Cambridge Technicals in Business
Introduction to
Unit 5:
Human Resource Management in Business

3. Why are human resources important?
People are sometimes described as the most valuable resource that an organisation has.
Human resources involves managing the current workforce…
…while human resource planning means thinking about the organisation’s future human resources needs and taking steps to meet those needs.

4. Factors to think about
Thinking about human resources means looking at a number of factors.
External factors
Internal factors
Supply of labour
Labour costs
Skills requirements
Workforce skills
Organisational needs
Demand for products/ services
Government policy
Workforce profiles
Changing nature of work
Labour market competition

5. Getting the most from people
Why do people come to work and how can an organisation get the most from them?
What skills do people in the organisation have?
What training is needed to improve skills?
Are people in the best place to use their skills?
How do we motivate people?
What makes people feel good at work?
Is motivation all about money?
What does absenteeism tell us about motivation at work?
Can skills be transferred to different areas of the organisation?
What theories can explain what motivates people at work?
Why is treating people fairly so important?

6. Kelloggs – a great place to work?
Maslow’s Hierarchy of Needs
Kelloggs has based its HR strategy around motivation with the aim of making the company ‘a great place to work’. The company have a range of ways of motivating their employees, for example:
Promotion and development opportunities
Self Actualisation
Mutual respect of each other
Esteem
Employees can buy and sell holiday days if they value time off more than pay.
Regular ‘huddle’ meetings
Social needs
Flexible workplace, safe and healthy working environment
(Taylor’s theory of motivation)
Safety needs
Competitive salary
Basic needs

7. Kelloggs – working with everyone
Mutual co-operation between an organisation and its workforce is vital to be successful, but achieving this is not always easy. Kelloggs tries to do this using:
Encouraging ideas: such as a staff suggestion scheme and ‘Snap, Crackle and Save’, which encourages cost saving ideas.
Communication: from formal meetings to a 200-seater coffee lounge in the foyer for information discussions and socialising.
Study leave and secondment opportunities: helping staff to feel valued and motivated to develop their skills and apply them at work.

8. Managing performance
It is important to actively manage people’s performance in their roles in order for the organisation to be successful.
It is important to ensure fairness when measuring and managing performance. How can this be achieved?
If people are well motivated and have the right skills, then they should be effective in their roles but how do we know?
Using indicators, goals, SMART targets and benchmarking.
Using probationary periods, appraisals, and methods of supporting employees.

9. What will you learn? After completing this unit, you will:
Understand the importance of managing employee performance at work
Understand how to gain committed employee cooperation
Know how organisations motivate employees
Know the factors that are involved in human resource planning in organisations

10. Other OCR resources are available at www.ocr.org.uk
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