Human resources refers to managing a company's workforce, including attracting, training, developing, and retaining employees. The objectives of human resource management are to promote continuous learning, recruit and develop skilled employees, manage employee relations, design compensation systems, and ensure employee health and safety while complying with government legislation. Effective human resource management involves attracting and motivating employees through factors like job satisfaction, recognition, and responsibility.

1. Human Resource Management Higher/Int 2 Business Management 2009-2010

2. What are Human Resources? The entire workforce - Managing Director to part-time Cleaner Each person being employed to perform specific functions which play a part in the success or failure of the organisation

3. Human Resource Management Human Resource Management refers to that part of an organisation’s activities designed to: Attract Train Develop Maintain an effective workforce HRM more strategic and integrated than previous ‘Personnel Management’

4. Objectives of HRM Promote a policy of continuous learning and staff development Recruit , develop and retain people with appropriate skills and attitudes Manage employee relations (one to one and collective) Design, implement and manage remuneration systems to motive staff Maintain and improve the physical and mental well-being of the workforce (conditions and H&S) Take account of all government legislation relevant to HRM

5. Management of People Theory X - Workers are motivated by money, they are lazy, selfish, ignore the needs of the organisation, avoid responsibility, lack ambition. They need controlled and directed by management. Theory Y - Workers have different needs, they can enjoy work. If motivated they can organise themselves and take responsibility. Managers should allow creativity to be shown.

6. Abraham Maslow’s Hierarchy Self-actualisation - needs filled through self-fulfillment, more responsibility, ownership shares, self-employment Esteem - self-respect, recognition, promotion, awards, title, size office/desk Emotional - love, belonging, teams Safety - job security, trade unions, laws Physiological - food, clothing, shelter, warmth

7. Workers need to feel safe and secure. An unsafe working environment will not motivate workers to work, and to work well, nor will the possibility of being made redundant. What’s the point of working, I’m going to lose my job anyway I’m no gonna work for this firm again, cos a goat a sair heid.

8. Increasing Motivation Quality Circles - meet regularly to identify, analyse and attempt to solve work-related problems Job Enlargement - increased number of tasks, jobs less repetitive, organised into groups and trained to be multi-skilled - job rotation Job Enrichment - giving workers opportunities to choose how to complete a particular task, usually as part of a team

9. The HRM Function (1) The Executive Role : the expert department in matters related to HR – legal requirements, information provision The Audit Role : monitors organisation activities The Facilitator Role : helps others to acquire HR skills eg grievances, equal opportunities, planning The Consultancy Role : providing advice and guidance The Service Role : provider of useful information eg changes in legislation

10. The HRM Function (2) Levels of Management Strategic: long-term planning policies, guidelines, culture of organisation Tactical: pathways to strategic objectives planning, recruitment, training, development, industrial relations Operational: day-to-day (training) identify possible employees, select suitable employee, arrange cover, develop materials

11. HRM Planning Current Employment Trends Staffing Requirements Future Supply of Workers Labour Turnover Satisfy and Motivate Employees Organisation Culture Training and Development Release Surplus Staff New Staff Potential Staff Existing Staff Departing Staff

12. Changing Patterns of Employment (1) Increase in part-time work full time staff led to inflexible workforce Increase in service sector employment coal, steel and shipbuilding no longer significant Increase in public sector employment 30% of Scottish workers employed in this sector Increase in women working Special arrangements: flexi-time, job-share, child-care Increase in home/teleworking Improvement in communications

13. Changing Patterns of Employment (2) Part-time work - in most cases voluntary decision Variable hours - overtime or flexi-time systems Temporary work - fixed-term, seasonal, casual or agency work Downsized - now bringing workers back on a fixed-term or project basis for experience Self-employment - now represent about 13% of workforce, route for those in unemployment and low pay and source of jobs for others

14. 3 ‘Types of Workforce’ Core workforce - those essential to the business, giving the expertise. They are given good terms and conditions of employment Flexible Labour force - part-time or temporary basis eg during peaks in activity. Not employed when there is no demand for services Contractual fringe - sub-contractors eg cleaners, consultants, component suppliers. No need to pay for pensions, holidays etc

15. Advantages (Non-Traditional Workforce Only employ those contributing to core activities Saves salaries Saves office space Reduces need to pay sickness/holiday benefits, redundancy payments, NI contributions Flexible staffing numbers relating to the market

16. Disadvantages (Non-Traditional Workforce) Cost of Recruitment and Selection Staff shortages in certain areas Less commitment from workforce Increased training (esp induction) High staff turnover Lack of continuity in personnel

17. Recruitment - Stage 1 Is there a vacancy? Someone leaving? Extra worker required? Large organisation complex process - liaison between departments or Senior Management

18. Job Analysis - Stage (2) Identifies the main features of the job: Physical requirements and tasks Mental requirements and tasks Skill requirements and specific skill tasks Areas of responsibility Areas of accountability Physical environment Hazards specific to the job Where is the information found? Current occupant of the job Superiors and Subordinates Specialist observers

19. Job Description - Stage 3 (1) ‘ Word picture of the job’ Tells candidates what is expected of them and allows qualities to be set for candidates Disputes settled later based on the Job Description

20. Job Description - Stage 3 (2) Title Relationships Purpose of the Job Duties and Responsibilities Authority Resources Available Location Qualifications

21. Person Specification - Stage 4 Profile of the person required - essential and desirable skills and qualities Physical Make-up - health, energy, appearance Attainments - education, training, expertise General Intelligence - thinking skills and mental effort Special Aptitudes - specialist skills required? Interests - personal interests Disposition - personality Circumstances - special requirements

22. Internal Recruitment May be a promotion or change of job or location Applicant is known to the organisation The organisation has trained this employee Applicant will be aware of the culture and rules of the organisations Can enhance employee morale However: a limited pool of applicants Another vacancy is usually created

23. External Recruitment Local and National Newspapers Journals (eg British Medical Journal) Recruitment Days Recruitment Agencies Internet Websites (Company or Recruitment Agency) Job Centres / Careers Service Skill Seekers and New Deal Schools, Colleges or Universities (Milk Round)

24. The Selection

25. The Selection Process Application Forms/CVs Interviews Testing Candidate Selected

26. Application Forms/CVs Content of Application Form same information, same order, comparisons Curriculum Vitae summary or listing of relevant work experience and education and other accomplishments Checked against the Person Specification Short List Created : Seems suitable (interview) Possibly suitable (maybe) Unsuitable (polite letter of rejection)

27. Interviews (Planning) Date, time and place agreed Waiting area Tour around premises? Refreshments? Time for interview (30 mins)? When Notified of Outcome? Travelling Expenses? All Candidates Informed?

28. The Good Interview Be open-minded and unbiased Be prepared Welcome the interviewee Control the interview Supply information Close the interview Follow-up

29. Types of Interview One-to-one Successive Interviews (eg Apprentice) Panel Interviews (eg Bear Factory)

30. Testing

31. Testing Attainment Tests Demonstrating skills eg WPM Intelligence Tests (IQ) Mental reasoning - numeracy, literacy, problem solving Aptitude Tests Tests of innate skills eg mechanical Psychometric (Personality) Tests Personality tests - extrovert or an introvert Medical Tests Army, police and airlines

32. Assessment Centres Candidates may complete team-building and role-playing exercises Monitoring of social skills, leadership qualities, personality Can be at a large Assessment Centre or at offices or a hired venue

33. Training To teach new skills or improve their existing skills Staff development to improve skills for now and in the future Training and Staff Development is very similar, however, staff development is long-term

34. Costs and Benefits of Training Financial cost Training staff Loss of output Flexibility Promotion of change Upgrading skills Improved employee satisfaction Improved image of the organisation Motivation and productivity

35. Types of Training Induction training – given to new recruits. Designed to give information about the organisation. On-the-job training – ‘sitting next to Nellie’. This is carried out while the employee is doing their job . Off-the-job training – carried out away from the organisation ie college.

36. Staff development – based on a plan of work. May involve a combination of on-the-job and off-the-job training Appraisal – a report on how well an employee is doing. Carried out at regular intervals . Should be positive with only constructive criticism.

37. Equal Opportunities Discrimination – choosing one person over another Applies to selection, training, promotion, and wages Equal Opportunities means that everyone has the same chance

38. Reasons for Discrimination Women (home, married, children) Ethnic Minorities (eg religious holidays) Disabled People (less capable) Older People (slow, new technology) Unproven ideas or Stereotypes

39. Women at Work Average Wages Men £11.31/hour Women £9.82/hour Full-time Work Men 91% Women 57% Flexible workforce , increasingly women fill vacancies, crèches, homeworking, Remaining in education longer – management posts

40. Legislation Equal Pay Act 1970 – “ broadly similar’ work = equal pay Sex Discrimination Act 1975 Direct eg harassment (treating someone less favourably) Indirect eg must be 6’ tall Applies to job adverts eg salesperson, cashier Selection – not restricted unless essential Interview – structured prevents bias Promotion Training Dismissal Employment Tribunal

41. Ethnic Minorities Race Relations Act 1976 – colour, race, nationality, ethnic background Direct : eg racial groups are unreliable Indirect : eg not allowing turbans (Sikhs) Selection tests may discriminate as not in some ethnic groups culture

42. Disabled People “ those with a long-term health problem/disability that limits the kind or amount of paid work they can do” Disability Discrimination Act 1995 >15 employees must comply Reasonable adjustments eg fixtures, fittings, telephone, work station, access, building features (lifts), work conditions, extra training Direct : eg translator one person in wheelchair Indirect : eg requirement for driving licence

43. Older People Employment rates fall as people get older: 80% employed aged 54 vs 40% aged 64 could be through choice less training offered Some argue that there are advantages in recruiting older people: >40 experience and judgement >40 concentrate more on job responsibilities (less on salary and status) >40 greater social intelligence Examples are B&Q and Asda The Employment Equality (Age) Regulations 2006

44. Sexual Orientation Employment Equality (Sexual Orientation) Regulations 2003 Outlaws discrimination in employment based on sexual orientation towards people of the same sex, opposite sex, or the same sex and the opposite sex Some exceptions eg where employer applies a particular sexual orientation to avoid conflict with religious convictions

45. Health & Safety at Work Raising the standard of safety and health for all individuals at work and the public as far as ‘reasonably practicable’ Employer’s Duties: Written statement of general policy prepared Negligence proceedings can be taken against management Providing training, information, instruction and supervision Ensuring that all equipment is safe and risk associated with handling, storing and transportation of articles are minimised

46. Health & Safety at Work Employee’s Duties: Take reasonable care of themselves and others Co-operate with the employer Not intentionally or recklessly interfere or misuse anything in relation to H&S Carry out duties in accordance with training or instructions Report any dangerous situations Health & Safety Executive: Power to enter employer’s premises and carry out investigations and examine materials

47. Trade Union and Employment Rights Act 1993 Employees cannot be dismissed for: Taking steps to protect themselves in circumstances of danger Performing H&S responsibilities Leaving a dangerous part of a workplace Bringing a H&S concern to employer’s attention Performing functions as a H&S representative

48. Employment Protection Employment Relations Act 1999 one year = no unfair dismissal Parental leave (adoption) Remove limits on awards for unfair dismissal Reasons (which are unfair): Membership of trade unions Pregnancy (being able to do job) Redundancy (without correct procedures) As a result of transfer of business Sunday Trading Act 1994

49. Employment Protection Reasons (which are fair): Incapable of doing job Unqualified ‘ Misconduct’ – minor or major If unable to employ – eg lost driving licence False details given – eg application form Redundancy Redundancy Job must have disappeared Must consult with trade unions Period of notice Redundancy payment

50. Wage Act 1986 Wages are any sums paid to the worker in connection with the job: Fees, bonuses, commission, sick pay, gift tokens, vouchers Redundancy payments, expenses, loans are not included Deductions NI, shown in contract, agreed in writing eg Trade Unions If an employer doesn’t pay – employee can complain to a tribunal

51. National Minimum Wage Act 1999 21+ £5.80 18-21 £4.83 16-17 £3.57 (figures correct 01/10/09) Why? Prevent poverty Reduce inequality between men and women Greater equality and fairness should motivate employees, reduce staff turnover and improve productivity

52. Employee Relations The formal relationship between employers and employees, which may involve each of their representatives.

53. Main Groups Trade Unions Employers Employers’ Associations ACAS

54. Trade Unions An organisation that represents employees: Rates of pay and bonuses Work facilities and conditions Breaks Job security Redundancy / Dismissal Grievance Negotiating job descriptions and person specifications Collective Bargaining

55. Employers A duty of care to undertake a process of negotiation and consultation with their employees and keep them informed of changes

56. Employers’ Associations Organisations which represent employers Often useful for a small firm negotiating with a large union eg COSLA (Convention of Scottish Local Authorities) CBI (Confederation of British Industry) Meat Marketing Board

57. Professional Associations Similar to Trade Unions - include setting and maintaining standards/monitoring of qualifications BMA (British Medical Association) Police Federation Professional Footballers Association GTCS (General Teaching Council Scotland)

58. Advisory, Conciliation and Arbitration Service Best way to improve industrial relations is for employers and employees to work together

59. ACAS Preventing or resolving employment disputes Conciliating in actual/potential complaints before industrial tribunal Providing information and advice Promoting good practice

60. Negotiation Consultation Arbitration

61. Worker Directors: Elected by co-workers to sit on the Board of Directors No voting powers but express employee views directly to BoD Works Councils: Equal number of employees and managers Discuss suggestions for change and changes being introduced Legal right of access to information on employee matters Joint decision making powers

62. Industrial Action Official industrial action has the backing of a Trade Union: Trying to force the employer to take action on a particular issue – lost output, lost sales, poor image Employers can also take action: Lost earnings Threaten redundancy

63. Industrial Action Employee Action Sit in Overtime ban Work-to-rule Go slow Strike Employer Action Withdrawal of Overtime Lock out Close

64. Policies and Procedures Appraisal – performance of employees is monitored at regular intervals setting targets, identify training needs, identify promotion opportunities Grievance – what should employees do if they have been badly treated Discipline – if the employee is in breach of organisation’s rules Health and Safety – safety precautions, accident procedures etc

65. Personnel Information and Record Keeping Records normally kept: Basic employee data Training Absence Applicants – comply with EO Legislation Holidays Wages and Salaries Labour Turnover Occupational Health

66. Congratulations You have completed Human Resources in Higher Business Management