Human Resources

Human Resources - Presentation Transcript

Human Resource Management Higher Business Management

Role and Importance of Human Resource Management (HRM) The most valuable asset in any organisation is its workforce. It is the human resources that generate wealth by providing services and producing goods. Care must be taken over employees especially if they want to secure and retain staff.

Function of Human Resources HRP Recruitment and Selection Training and Development Maintenance of Personnel Records Legislation Employee Relations Grievance and Discipline

HRM Remit To promote a policy of continuous learning and staff development To recruit, develop and retain people with the appropriate skills and attitudes required for present and future jobs To manage employee relations To design, implement and manage remuneration, reward and appraisal schemes To maintain and improve physical and mental well being of the workforce To take account of all legislation relevant to HRM

Changing Patterns of Employment In the UK 26 million people (70% of the working population) are employed. Decline in full-time, permanent work Decline in heavy engineering Increase in Tertiary (service) sector employment (call centre, IT) Increase in women working (suited to new areas of employment)

Changing Patterns of Employment Part-time work Variable Hours Temporary work Self-employment

Human Resource Planning Factors affecting HRP: Changing goals of a Competition business Population Changes Changes in Market Trade Unions Changes in Government Technology Legislation

Contractors 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)

Reasons for Sub-Contracting More skilled workforce Expertise Economies of scale Can concentrate on what you’re good at Saves money in equipment/training

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

Manpower Planning If firm’s labour supply If firm’s labour < demand: supply > demand: • Additional Redundancy advertising • Retraining Retraining programmes Early retirement • Increase pay & other incentives ‘Natural wastage’

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

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)

Factors of Motivation pay levels job security promotional prospects Responsibility working conditions fringe benefits participation in decision-making working in a team

Motivation Financial Methods Flat rate, piece rate, commission. PRP, profit sharing, share ownership Non-Financial Methods Empowerment, delegation, job enrichment, job enlargement, job rotation, quality circles

Empowerment… …providing the means by which subordinates can exercise power over their working lives. It offers more responsibility and independence, different from delegation because there is more freedom to decide what to do and how to do it.

Empowerment Benefits to firm Improved productivity Increased staff motivation Speedier decision making Fresh ideas can improve quality of decisions made Organisation may become more competitive Faster communication as there are fewer levels in the organisation Improved management/employee relations

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

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.

Steps in Recruitment Is there a vacancy in the • organisation What does the job involve • Where are we going to attract our • applicants from? Process of selection •

Identify Job Vacancy Could occur due to: An employee leaving organisation An employee being promoted A new post being created

Conduct Job Analysis This identifies: Tasks to be performed Skills needed (both physical & mental) Duties & responsibilities (and accountability) Environment job takes place (including any hazards) Gives idea if a position is needed

Prepare Job Description This states: Job title Location Tasks Duties & Responsibilities Hours Holiday Entitlements Qualifications required by applicant

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

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

Internal Recruitment Disadvantages Advantages Applicant & ability Limited skills pool familiar to organisation Own Job needed to Organisation may have be filled invested in person Resentment from through training overlooked staff Individual aware of culture (no need for induction training)

External Recruitment Advantages Disadvantages Can target specific Expensive sections of Time taken can be population long Wider job skills Successful pool candidates may No need to fill turn down job another post

First Steps in Selection When applications are received they should be divided into 3 categories: Seems suitable – invite to interview • Possibly suitable – invite for interview if • not enough in Category 1 Unsuitable – send polite letter of rejection • Then a shortlist is created

Application Forms Initial contact, checked against the Person Specification to select suitable candidates for vacancy Usually in conjunction with CV

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

Interviews One-to-one interview Successive interview Panel interview

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

Tests Attainment tests Aptitude tests IQ tests Psychometric tests Medical tests

Assessment Centres Intensive Activities: assessment held Team building over one or two Role Play days Interviews Qualities looked for: Social skills, leadership qualities & personality

Selection Methods: Validity at predicting work performance % used by business (0 = no use; 1 = very helpful) Interviews 92 0.17 References 74 0.13 Assessment 0.40 Centres 14 0.54 Aptitude Tests 11 0.00 Graphology 3

Assessment Advantages Disadvantages Mental useful predictors of Use of ability tests Ability tests performance across a can result in high (IQ) wide variety of jobs levels of adverse impact Are usually easy and inexpensive to can be costly to administer develop & administer Employment Structured interviews, Unstructured interviews based on job analyses, interviews typically tend to be valid have poor validity May reduce adverse Skill of the impact if used in interviewer is critical conjunction with other tests

Assessment Advantages Disadvantages Assessment Good predictors of Can be expensive Centres performance, managerial to develop & potential, & leadership ability administer Apply the whole-person Specialised approach to personnel training required assessment for assessors; Reference used to verify information Reports are checks previously provided by almost always applicants positive May encourage applicants to provide more accurate information

Reasons for Training and Development Improve staff performance Improve productivity Staff more flexible Increase job satisfaction Staff more motivated Upgrade staff skills Reduce injuries & accidents

Training Costs Benefits Flexibility Sending people Upgrade skills on training costs Employee satisfaction Paying trainers Improved image for Loss of output organisation Motivation and productivity

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

Training Methods On the job – training conducted at employee’s place of work Off the job – training occurs outside of work e.g. university or college

Training Methods “Sitting next to Nellie” – task demonstrated then trainee undertakes task Coaching – trainee taken through step by step by trainer Job Rotation – trainee learns tasks in different departments/jobs Self-paced/distance learning – trainee receives resources and works on their own

Staff Development Set targets and have appraisals Motivate Staff through: Bonuses and financial rewards Employee of Month Team building/social events

Appraisal Assessment of staff performance usually held annually Uses Appraisal form then interview Job focus = Looks for success in meeting goals and targets Person focus = looks for person’s skills and qualities Problems: Difficult to measure Personality clashes

Reasons for Appraisal To identify future training needs Consider individual’s development needs Improve employee performance Provide feedback on performance Identify promotion hopefuls

Keeping Personnel Records Keeps personal info on every employee Includes info on appraisals, training etc… Conforms to the Data Protection Act

Uses of Records Key Fields: Unique identifiers like National Insurance Number (Glasgow City Council uses this) Attendance Discipline Performance Communicating (Correspondence) Selection of staff (promotion, training, teams, specific jobs)

Employee Relations “The formal relationship between employees and employers” It refers mainly to the way employers deal with employees either as individuals or as part of a group. Industrial relations is part of employee relations that involves dealings between employers and trade unions

Main areas covered by Employee Relations Policies: Trade Union recognition Collective Bargaining Employee relations procedures The employment relationship Participation and involvement

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

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

Trade Unions Organisation representing workers re: pay negotiations, working conditions, dismissal, redundancy. NUM and EIS are examples of Unions Collective bargaining is the basis of unions, whereby a group of workers stand a better chance to negotiate Trade Unions are funded by annual subscriptions by its members

Trade Union Aims To improve pay of its members Improve working conditions Support training & development of members Ensure members’ interests are considered by employers

CBI v TUC The Confederation of British Industry (CBI) and the Trade Unions Congress (TUC) are counterparts. CBI represents the employers associations, whereas the TUC represents the different workers’ unions

Professional Associations These organisations represent ‘professional’ occupations such as the 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

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

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

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

Processes Negotiation Consultation Arbitration

Negotiation Its purpose is to reach an agreement, but needs some middle ground between the two positions held. Success of the firm should benefit both employee as employers, so it is in their best interests to come to a settlement. Employers and employees discuss matters that are important to both of them in order to come to an agreement. It also involves compromise.

Consultation Informing employees of new rules and regulations that are being brought in is consultation. The changes may have been forced upon the firm by the Government, therefore no agreement is necessary and employees views are not needed to be taken into account. Final decision lies with the organisation.

Arbitration When no agreement occurs, then a third party, an independent arbitrator such as ACAS is called in. Arbitrators are neutral and unbiased and will listen to both sides and offer a fair and practical solution. Binding arbitration is when both sides agree to go with the decision of the third party.

Works Councils They are set up by an organisation and contains the same amount of employees and employer representatives Groups meet to discuss any proposed changes before they are implemented Decisions reached by the council are usually accepted by the workforce as their representatives have been involved

Industrial Action Employee Action Employer Action Sit in Withdrawal of overtime Overtime ban Lock out Work to rule Closure Go slow Strike

Sex Discrimination Act (1975) Illegal to discriminate against employee or job applicant on grounds of gender or marital status

Race Relations Act (1976) Illegal for employers to discriminate against employee or job applicant on grounds of ethnic background

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

Equal Pay Act (1970) Pay conditions must be equal for employees of the opposite sex who are performing same work

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

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.