2. JW 20081 Higher Business Management Unit 2 Learning Outcome 4 Human Resource Management

3. JW 20082 The Role of People in Organisations People are probably the most valuable “resource” that an organisation possesses. 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. This involves their welfare, training, safety and motivation. Also would deal with recruitment, disciplining, compliance with legislation. A happy workforce is likely to be an efficient workforce.

4. JW 20083 Changing Patterns of Employment movement away from primary and secondary industries to tertiary sector - more employed in the of provision services full-time employment has stayed fairly static Increase in part-time and short-term contracts Increase in home working and tele-working Greater flexibility of the workforce Many more women in employment Increase in self-employment primary secondary tertiary

5. JW 20084 The Modern Workforce 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

6. JW 20085 The New 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

7. JW 20086 TASK Discuss the way in which employment patterns have changed over the last 20 years (6)

8. JW 20087 Human Resource Management (HRM) refers to that part of an organisation’s activities designed to attract, train, develop and maintain an effective workforce

9. JW 20088 HRM Functions within the Organisation Executive - experts in the HRM area - policies developed in line with legal requirements Audit - policies properly implemented Facilitator - training of staff to respond to HRM issues Consultancy - advice and guidance to managers on HRM problems Service - providing up-to-date information on legislation

10. JW 20089 HRM – DM LEVELS TACTICAL Human Resource planning Recruitment of specialised staff Staff training and development Promoting effective industrial relations OPERATIONAL Identifying training needs Encourage staff to accept training Arrange the training Deal with day-to- day issues such as absenteeism, grievances, welfare, etc STRATEGIC Formulate personnel policies for the organisation as a whole Devise guidelines for implementation of policies Working towards corporate goals - defining corporate culture

11. JW 200810

12. JW 200811 Hr planning HR Planning is the method by which a business forecasts how many and what type of employees it needs now and in the future. Forecasting employee demand involves using past information analysing current employment trends estimating future staffing forecasting future supply of workers with appropriate skills estimating workers’ productivity employing work study calculating staff turnover using business and management knowledge

13. JW 200812. Employees can be grouped under 4 headings New staff – induction/contract of employment Potential staff – advertising, recruitment, selection, Existing staff – appraisal, continuing professional development Departing staff – retirement packages/grievance

14. JW 200813 EXTERNAL INFLUENCES CAN AFFECT THE HR DEPARMENT AND THEIR PLANNING. DESCRIBE HOW THE STAFFING OF AN ORGANISATION MAY BE AFFECTED BY CURRENT EXTERNAL INFLUENCES Question…………………..

15. JW 200814 Possible areas of influence Political – changes in legislation, eg working week, paternity leave, minimum wage, retirement age Economic – boom or recession in the UK/world economy, number of unemployed Social – number of women working, type of working patterns demanded, holidays, retirement age Technological – robots, computer aided design, remote working.

16. JW 200815 HR RECORDS PERSONAL HISTORY – most of this will be taken from the application form and then added to. EMPLOYMENT HISTORY – terms and conditions of employment, details of sick days, latecoming, disciplining, grievances APPRAISAL INFORMATION – results of appraisal, training requested and undertaken

17. JW 200816 An organisation has a problem with high staff absenteeism and decides to analyse the problem to see if a specific pattern emerges. (2001 case study) In what way might the absenteeism records be broken down to see if a pattern emerges (2) If the firm can identify a particular pattern of absenteeism what measures might be taken to rectify the problem. (4) Why is a high staff turnover of concern to an organisation? (4)

18. JW 200817 Recruitment and Selection Terminology Recruitment Job analysis Job description/specification Person specification Internal/external recruitment Application forms/CVs Selection Leeting Interviews Psychological tests Testing

19. JW 200818 Job Analysis This is a study undertaken to identify the main features of a job physical requirements and tasks skill requirements and tasks mental requirements and tasks areas of responsibility areas of accountability physical environment hazards specific to job

20. JW 200819 Job Description Detailed description of exactly what job entails. This will normally be given to anyone who applies for the job. job title relationship with other jobs in organisation purpose of job main duties and responsibilities authority over others in decision making resources financial, human, equipment, work area location

21. JW 200820 Person Specification Details the type of person needed for the job. Includes essential and desirable attributes physical make-up Qualifications necessary attainments general intelligence special aptitudes interests disposition circumstances

22. JW 200821 INTERNAL RECRUITMENT Firms may choose to fill positions with employees who already work for the organisation by advertising internally The benefits of this are the applicant is already known the firm may have already invested time and money in training this employee and can benefit from this investment applicant is already aware of the culture promotion from within is good for morale cheaper than external recruitment in terms of money and time

23. JW 200822 EXTERNAL RECRUITMENT Recruiting outwith the organisation, by advertising job in local newspapers national newspapers specialist publications, eg TES internet, eg S!jobs.com or firm’s own website recruitment agencies headhunting Points to consider wider pool of applicants new ‘blood’ costly in time and money unknown quantity demotivating for existing staff? resentment from unsuccessful internal candidates?

24. JW 200823 TASK Justify the need to carry out a job analysis when a vacancy arises. (2) Compare a job description to a person specification. (3) Justify the reasons why a company may always look to fill a vacancy with an existing employee. (4) Explain the possible negative effects of this policy?(3) Describe an effective recruitment procedure for an organisation.(4)

25. JW 200824 SELECTION It is important to select the most appropriate candidate for the job. Selection methods may involve: Weeding out using CVs or application forms Interviewing Testing – IQ, psychological, aptitude

26. JW 200825 INTERVIEWING Interviews are useful for assessing the personal qualities of a candidate Interviews are less useful for assessing the technical ability of candidates Interviews may be one-to-one, panel or group Poor interviews are a result of Lack of training in interview technique Poor preparation It is possible that interviewers may get a false impression of a candidate and may wish to back up an interview by testing candidates

27. JW 200826 The good interview Be open minded and unbiased Be prepared – read CVs, application forms, think about suitable questions Welcome the interviewee Control the interview Supply information Close interview Follow-up

28. JW 200827 Interviewing and technology Using video conferencing can be a cheaper solution than paying travel costs for a number of applicants. Telephone interviews are even cheaper and may be the only interview for jobs in call centres.

29. JW 200828 TESTING Aptitude test – giving candidates a problem or task to solve Attainment test – a speed test for word processing operators Intelligence test – may be on numeracy, literacy and general knowledge Personality test – sometimes called psychometric testing Selection exercises – outward bound courses, team interviews, social situations

30. JW 200829 TASK Describe a selection process which an organisation may use to ensure the best applicants are appointed to work. 2006 Sec 2 Q1(c)(5 marks) Discuss the different forms of testing that an organisation could use to select the best candidate. 2007 Sec 2 Q2 (d) (6 marks)

31. JW 200830 Training and Development Terminology Flexibility of staff (multi-skilling) Coping with change Job satisfaction Staff motivation Induction training On and off-the-job training Retraining Skills upgrading Appraisal Target Setting

32. JW 200831 TRAINING INDUCTION Given to new staff to introduce them to the organisation ON-THE-JOB Takes place whilst employee is doing their job, eg, ‘work shadowing’ ‘sitting next to Nellie’ OFF-THE JOB Attending training course, gaining qualifications, day release. Can be ‘in house’ or at college, etc STAFF DEVELOPMENT Based on plan agreed at appraisal. Eg, to prepare employee for promotion

33. JW 200832 Quick Task Outline advantages and disadvantages to the organisation of: Induction training On the job training Off the job training

34. JW 200833 The costs and benefits of staff training Benefits Staff become more competent Motivation increases Long term Productivity increases Reduced waste Organisation’s image is improved Changes become easier to introduce Fewer accidents Costs Trained staff may leave to go to other organisations Financial costs of paying for training Work time is lost when staff are being trained Quality of training must be high if training is to have a positive effect Staff may request a pay rise after training

35. JW 200834 TASK What are the costs and benefits of staff training to an organisation. (6) Describe the term induction training. (1) (2007 Sec 1 Q6 (i)) Outline the benefits of induction training (4) (2007 Sec 1 Q6 (ii)) Organisations can use both on the job and off the job training for employees. Describe each of these types of training (2)

36. JW 200835 APPRAISAL a method of evaluating the performance of employees and assessing their usefulness to the business may be INFORMAL or FORMAL normally carried out by an employee’s line manager however other forms exists self peer subordinate

37. JW 200836 INFORMAL APPRAISAL based on ‘feelings’ of management result of working together on daily basis little discussion between manager and employee opinions based on factors of which employee is unaware

38. JW 200837 FORMAL APPRAISAL based on evidence collected in a formal way involves an appraisal interview used to: evaluate performance identify employees ready for promotion increase motivation identify training needs identify strengths and weaknesses set future performance targets assess the recruitment and selection process improve communications award salary increases plan future staffing

39. JW 200838 TARGET SETTING Appraisal is used for target setting for such things as: attendance at work quality and relevance of work membership of committees communication abilities level of output achieved training to be undertaken relationships with staff

40. JW 200839 Task – 2003 Case Study Explain how an organisation might assess the effectiveness of any training programme? (2) Justify why training should be a continuous process for any organisation? (4) Appraisal is the name given to a meeting held between employee and employer to review performance and discuss progress. Discuss the role of appraisal and its ability to motivate staff. (2008 CS Q8)(4)