Unit 2.2 21 developing an effective workforce


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Unit 2.2 21 developing an effective workforce

  1. 2. <ul><li>Recruitment and selection process: how a business chooses the best candidate for a vacancy it has identified. </li></ul><ul><li>Job description – a summary of the main duties and responsibilities associated with an identified job. </li></ul><ul><li>Person specification – identifies the skills, knowledge and experience a successful applicant is likely to have. </li></ul><ul><li>Internal recruitment – candidates from inside the organisation. </li></ul><ul><li>External recruitment – candidates from outside the organisation. </li></ul>
  2. 3. <ul><li>Human Resource Management </li></ul><ul><li>Workforce Planning </li></ul><ul><li>Recruitment </li></ul><ul><li>Selection </li></ul><ul><li>Training </li></ul><ul><li>Methods of remuneration </li></ul><ul><li>Measurements of personnel effectiveness </li></ul>
  3. 4. <ul><li>Human resource management looks at the best way to use a businesses personnel </li></ul><ul><li>HRM covers: </li></ul><ul><ul><li>Workforce planning </li></ul></ul><ul><ul><li>Recruitment and selection </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Appraisal </li></ul></ul><ul><ul><li>Motivation and employee rewards </li></ul></ul>
  4. 5. <ul><li>Hard HRM – employees are treated as a resource, aim to pay them as low as possible, they need to be controlled </li></ul><ul><li>Soft HRM – Employees are the most valuable asset of the business and they need to be developed to ensure they are being used optimally </li></ul>
  5. 6. <ul><li>Businesses need to look at future labour needs </li></ul><ul><li>They have to ensure they have the right amount of workers with the right skills and experience </li></ul><ul><li>Managers draw up plans looking at the number and type of workers who they want to recruit </li></ul><ul><li>Also conduct a skills audit so they are able to establish skills and experience of current workers </li></ul>
  6. 7. <ul><li>When planning the workforce managers need to know: </li></ul><ul><ul><li>Sales forecasts for at least the next year </li></ul></ul><ul><ul><li>Employee turnover figures </li></ul></ul><ul><ul><li>Projected wage levels </li></ul></ul><ul><ul><li>Technological developments </li></ul></ul><ul><ul><li>Changes to laws impacting the working week </li></ul></ul>
  7. 8. <ul><li>This is the process of filling an organisations job vacancies by appointing new staff </li></ul><ul><li>Job descriptions and person specifications are drawn up at the beginning of the process </li></ul>
  8. 9. <ul><li>These set out the qualifications and qualities required in an employee </li></ul><ul><li>These refer to the person and not the post </li></ul><ul><li>They include: </li></ul><ul><ul><li>Educational and professional qualifications required </li></ul></ul><ul><ul><li>Character and personality needed </li></ul></ul><ul><ul><li>Skills and experience wanted </li></ul></ul>
  9. 10. <ul><li>These relate to the position available </li></ul><ul><li>They list the duties and responsibilities associated with a specific job </li></ul><ul><li>They include: </li></ul><ul><ul><li>The title of the post </li></ul></ul><ul><ul><li>Employment conditions </li></ul></ul><ul><ul><li>Some idea of tasks and duties </li></ul></ul>
  10. 11. <ul><li>Internal recruitment – where a business looks to fill a vacancy from existing staff </li></ul><ul><li>Advantages : </li></ul><ul><ul><li>Employee has awareness of a firms culture </li></ul></ul><ul><ul><li>Candidates may not need induction training </li></ul></ul><ul><ul><li>Provides promotion for workers </li></ul></ul><ul><ul><li>Avoids expensive advertising </li></ul></ul><ul><ul><li>Selection can be easier as know about candidates </li></ul></ul><ul><li>Advantages : </li></ul><ul><ul><li>Limited skill base </li></ul></ul><ul><ul><li>May not be as high quality as external candidates especially for senior jobs </li></ul></ul>
  11. 12. <ul><li>External recruitment – where a business looks to fill a vacancy from individuals outside the organisation </li></ul><ul><li>Advantages </li></ul><ul><ul><li>Can attract a more diverse group of candidates who bring fresh ideas to the business </li></ul></ul><ul><ul><li>Increase in variety of skills </li></ul></ul><ul><li>Disadvantages: </li></ul><ul><ul><li>Can be very expensive </li></ul></ul><ul><ul><li>Know less about the candidates </li></ul></ul>
  12. 13. <ul><li>There are a number of methods: </li></ul><ul><ul><li>External advertising – the business advertises for the employee directly </li></ul></ul><ul><ul><li>Headhunting firms – these firms identify suitable candidates from competitors for a fee </li></ul></ul><ul><ul><li>Job centres </li></ul></ul><ul><ul><li>Employment agencies – match jobs and candidates for a fee </li></ul></ul><ul><ul><li>Training schemes (government) this is lower risk and cheaper </li></ul></ul>
  13. 14. <ul><li>Position is advertised externally / internally </li></ul><ul><li>Send out application packs </li></ul><ul><li>Receive candidate applications by closing date </li></ul><ul><li>Candidates applications are compared against the person specification those with the best fit are invited for interview </li></ul><ul><li>At interview the job description is used to form the basis of the questions </li></ul>
  14. 15. <ul><li>These are the techniques used to decide who is right for the job </li></ul><ul><li>They include: </li></ul><ul><ul><li>Interviews </li></ul></ul><ul><ul><li>Psychometric tests </li></ul></ul><ul><ul><li>Assessment centres which can include: </li></ul></ul><ul><ul><ul><li>Role plays </li></ul></ul></ul><ul><ul><ul><li>Simulated work environments </li></ul></ul></ul>
  15. 16. <ul><li>Interviews are the most popular form of selection </li></ul><ul><li>They can involve one or more interviewer </li></ul><ul><li>They are a relatively cheap method </li></ul><ul><li>They can be unreliable as they don’t give a valid picture of how someone will perform on the job </li></ul>
  16. 17. <ul><li>The provision of work-related education, either on-the-job or off-the-job, involving employees being taught new skills or improving skills they already have </li></ul>
  17. 18. <ul><li>Training is often a response to an internal or external change e.g </li></ul><ul><ul><li>The development and introduction of new products </li></ul></ul><ul><ul><li>Restructuring of the firm </li></ul></ul><ul><ul><li>The development and introduction of new technology </li></ul></ul><ul><ul><li>Changes to procedures </li></ul></ul><ul><ul><li>High labour turnover </li></ul></ul><ul><ul><li>Low morale </li></ul></ul><ul><ul><li>Changes in legislation </li></ul></ul>
  18. 19. <ul><li>Education for new employees which involves learning about the way the business works </li></ul><ul><li>It helps to: </li></ul><ul><ul><li>Reduce turnover </li></ul></ul><ul><ul><li>Increase understanding of culture </li></ul></ul><ul><ul><li>Increase motivation </li></ul></ul><ul><ul><li>Mean employees contribute to organisation more quickly </li></ul></ul>
  19. 20. <ul><li>Outside the organisation </li></ul><ul><li>Appropriate if only a few employees with a specific training need </li></ul><ul><li>Or if training needs are not specifically linked to organisation </li></ul><ul><li>Meet with employees from other companies and exchange ideas </li></ul><ul><li>Can make employees feel valued and increase motivation </li></ul>
  20. 21. <ul><li>Occurs inside the organisation </li></ul><ul><li>Appropriate if training needs are specific to the individual organisation </li></ul>
  21. 22. <ul><li>On the job – learn on the job usually by sitting next to an experienced employee </li></ul><ul><li>Off the job – all forms of employee education apart from that at the immediate workplace </li></ul>
  22. 23. <ul><li>Remuneration: pay – wages, salaries, bonus, PRP, commission, piece work </li></ul><ul><li>Non Financial: praise, training, additional responsibility,‘perks’ </li></ul><ul><li>Share Options: Opportunity to buy shares in the company at an agreed price </li></ul>
  23. 24. <ul><li>Labour productivity – looks at how much work each worker does (output) </li></ul><ul><li>Labour productivity = output per period / number of employees at work </li></ul><ul><li>Need to remember that this can also be influenced by other factors such as efficiency of capital that is being used. </li></ul><ul><li>This can be used as a basis for performance related pay </li></ul><ul><li>Labour productivity may be difficult to calculate for some businesses </li></ul>
  24. 25. <ul><li>Absenteeism – the amount of time employees are having off work </li></ul><ul><li>Number of staff absent (on one day) x100 / total number of staff </li></ul><ul><li>Helps to measure the morale and motivation of the workforce </li></ul><ul><li>If this is high it will cost the business money and decrease their profits </li></ul>
  25. 26. <ul><li>Labour turnover – how many people are leaving each year </li></ul><ul><li>Turnover = Number of staff leaving per year x 100 / average number of staff </li></ul><ul><li>If this is high may be due to low wages and insufficient training causing poor morale </li></ul><ul><li>Can also be due to problems with the recruitment process where the wrong staff are appointed </li></ul>
  26. 27. <ul><li>Health and safety = Number of working days left per year due to health and safety x 100 / total number of possible working days </li></ul><ul><li>This is a measure of safety </li></ul><ul><li>Need to ensure this stays as low as possible </li></ul>
  27. 28. <ul><li>Human Resource Management looks at the people who work in a business </li></ul><ul><li>Hard models look at people as a financial resource, soft models look at the development of staff </li></ul><ul><li>Workforce Planning is the process taken to look at future labour needs </li></ul><ul><li>Recruitment starts with a job description and person specification and allows the business to find the right person </li></ul><ul><li>Internal and external recruitment – internal recruitment from inside the business, external recruitment – recruit staff from outside the business </li></ul><ul><li>Selection – methods of choosing the right person for the job </li></ul><ul><li>Interviews are the most common method of selection </li></ul><ul><li>Training – how you educate staff to increase their skills and experience </li></ul><ul><li>Training can be on the job or off the job </li></ul><ul><li>Methods of remuneration – staff can be renumerated with financial and non financial methods </li></ul><ul><li>Measurements of personnel effectiveness – these are ways to measure the performance of the business and include labour productivity, labour turnover, absenteeism and health and safety </li></ul>