Business Management - National 5 Management of people Business Management - National 5

Learning Outcomes 1.1 – Stages of the Recruitment Process 1.2 – Methods of Staff Training and Costs & Benefits 1.3 – Methods of Motivating Staff and Costs & Benefits 1.4 – Current Employment Legislation

Contents Human Resources Department Activities Methods of Recruitment Methods of Selection Methods of Training Training Costs and Benefits Methods of Motivation Costs and Benefits of Motivation Working Practices Employee Relations Industrial Action Employment Legislation Equality Act Minimum Wage Act Freedom of Information Act Data Protection Act Health and Safety

Human Resources Department The Human Resources Department deals with the current and future employees of an organisation. The roles that they have include: Recruitment and Selection Training Motivation Employee Relations Employment Legislation

Recruitment & Selection Learning Outcome 1.1

Recruitment and Selection In order to attract the best staff possible an organisation will go through a number of steps that will allow them to choose the best person for the job. Recruitment – the process followed to allow people to apply for the job Selection – the process of choosing the best applicant for the job.

Stages of Recruitment and Selection We are going to go through 8 stages of recruitment and selection.

Stage 1 Job Analysis Establishing whether a vacancy actually exists by analysing the job’s main features. This could be done through observing the current employee or asking a manager.

Stage 2 Job Description This is a document that allows all applicants to see what the job will involve. This will form the basis of any advertisement of the job. This will include items such as: Job title Main tasks and responsibilities Working conditions Location

Stage 3 Person Specification Identify the type of person you want to do the job. This will include essential and desirable characteristics. This will include: Skills Qualifications Experience Qualities

Stage 4 Advertisement This is how the organisation lets potential applicants know that a job exists. An organisation can choose to advertise Internally or Externally.

Internal Advertising This is advertising to potential applicants within the organisation. It can take the following methods: Company Intranet Staff Memo Notice Boards Newsletter Reasons why: Allows employees to develop skills Employees are already familiar with the business Employees strengths and weaknesses are known It is an inexpensive form of recruitment It can improve staff morale

External Advertising This is advertising to people outwith the company. It can take the form of: Newspapers Professional Journals Job Centre Recruitment Agency Company Website Reasons why: Brings in people with new ideas and ways of working Wider choice of candidate to choose from

Stage 5 Applications Application Form Give applicants the same questions and opportunities to describe themselves. Making it easier to compare information from a large number of candidates. CV These are individual and personalised documents prepared by the applicant and will give a summary of their skills and experiences.

Stage 6 Interview This is the most common method of selection and can take various forms: One-on-One Panel Group Candidates may also be asked back for a second interview at a later stage in the process.

Successful Interview Tell candidates how it will be conducted Asking the same questions Put the candidates at ease Give the candidate the opportunity to add anything further and ask follow up questions

Stage 7 Testing This allows the organisation to compare candidates in a range of situations Types of testing include: Aptitude – skills based testing Psychometric – attitudes/characteristics Personality – roles the candidate is suited to

Stage 8 Making the Appointment After the various forms of selection the successful and unsuccessful candidates are informed. Reference Use to confirm the person applying for the job is who they say they are. Usually written statements from previous employers or other reliable person.

Training Learning Outcome 1.2

Training Training is the action of teaching a person a particular skill. Training carried out will vary to meet the needs of the individual. It may be used for: Induction training Retraining Upgrading skills

Methods of Training Induction Training This is training that is carried out before the employee starts their job. This allows the employee to familiarise themselves with their workplace; learn rules and regulations (health and safety); get introduced to their colleagues.

Methods of Training In-House Training (On the Job) This is training that is carried out within the organisation. This may simply occur in the form of another colleague (peer) showing another worker how to do a job or supervising them.

Methods of Training Off the Job Training This is training that occurs away from the workplace. This may happen at a: College Training Centre

Training Increased productivity Increased motivation Benefits Costs Increased productivity Increased motivation Work towards organisation goals Increased flexibility Financial costs travel, provider cost Productivity reduced output, increase in staff to cover Staff may leave once trained Staff resistance

Motivation Learning Outcome 1.3

Methods of Motivation Non Financial Quality Circles – groups of staff involved in problem solving and decision making process Appraisal – Managers and employees meet to discuss performance and set targets Job enlargement – increase number of tasks that an employee takes on Job enrichment – workers choose how to complete the tasks they have been given Promotion opportunities Improved working conditions Team building activities

Methods of Motivation Financial (Payment Systems) Salary Time-rate Piece-rate Overtime Bonus Commission Performance-related Profit-sharing Share schemes

Methods of Motivation Financial (Payment Systems) Definition Advantage Disadvantage Salary Paying a fixed amount of money per year in 12 equal instalments. Employee knows how much money they will receive each month. No incentive to work harder or produce more. Time Rate Paying per hours worked eg £10 per hour. The more hours worked, the more pay is received. Fewer hours means employee is paid less money. Piece Rate An amount of money for each item produced. The more items, the more money. Encourages people to work hard and produce more. Employees may rush work and the quality might become lower.

Methods of Motivation Financial (Payment Systems) Definition Advantage Disadvantage Overtime Working over the minimum number of hours required per week. Paid at a higher rate eg double-time. Optional, and allows the employee to earn extra money if they want to. May not always be available. May depend on demand. Bonus Receiving an additional payment on top of a salary. May be for meeting targets. Encourages people to work hard. Commission A percentage of money paid based on the value of sales. Higher sales means more commission. Encourages employees to sell more. Puts pressure on the employee. Could cause stress.

Motivation – Working Practices Core workers These are those workers that are employed by the firm and are involved in the core activities of the business. They can be: Full-time Part-time Casual workers Hired and released by the company when they are needed. Contractual workers Employed on a fixed-term contract usually for one or two years.

Motivation – Working Practices Flexi-Time Workers only need to be at work place at certain core times in the day. They can decide when they start and finish. Home/Tele-Working Employees working from home making use of ICT. Job-Share Two or more employees share the duties associated with one job.

Motivation – Employee Relations Employee relations covers how employers deal and interact with their employees as individuals or a group. Good employee relations leads to a motivated, flexible workforce. Poor employee relations can lead to less co- operation, industrial action and a poor image for the company.

Motivation – Employee Relations Groups Trade Unions Set up to protect and stand up for the rights of employees. They will take part in collective bargaining which involves them negotiating on behalf of employees for things such as pay and conditions. Advisory, Conciliation and Arbitration Service (ACAS) Employee relations experts who aim to help employers and employees work together effectively. They will offer advice and provide ways to settle disputes

Motivation – Industrial Action Industrial Action – this is the last resort that employees will take in order to have their views heard. It can take a variety of forms: Strike workers withdraw their labour and refuse to work. This can also involve picketing. Sit-in Workers occupy their workplace in an attempt to stop any work from taking place. Work-to-rule Work strictly to the terms and conditions of their contract. Overtime ban workers refuse to do any overtime work.

Motivation Increased productivity Increased quality Staff retention Benefits Costs Increased productivity Increased quality Staff retention Financial Costs Staff conflict

Employment Legislation Learning Outcome 1.4

Employment Legislation The Human Resources Department needs to keep up with and make sure all employees are aware of relevant employment legislation. There are a number of pieces of legislation that affect organisations, and new legislation is continually being introduced and updated.

Equality Act 2010 age disability gender reassignment This act was introduced to simplify the numerous pieces of anti-discrimination legislation that existed. Its primary purpose is to protect people from discrimination in employment on the grounds of their: age disability gender reassignment marriage and civil partnership pregnancy and maternity race religion or belief sex sexual orientation

National Minimum Wage Act 1998 The National Minimum Wage Act creates a minimum wage for all workers across the United Kingdom As of 1October 2015 the wage rates are: 21+ £6.70 18-20 £5.30 Under 18 £3.87 Apprentice £3.30

Freedom of Information Act 2000 Introduced with the premise of information being made public unless it falls into specified excepted cases. Gives everyone two specific separate rights: the right to know whether information exists the right to access that information (subject to exemptions).

Data Protection Act 1998 Aims to protect the rights of the individual by governing the collection, storage and use of information that is held. There are 8 basic principles that organisations must follow. Data must: Be adequate, relevant and not excessive for the required purpose. Be kept accurate and up to date Not be kept for longer than necessary. Be kept secure. Be obtained fairly and lawfully. Be used for the registered purpose only. Not be used or given to any other person without permission. Be available to the person who it related to.

Health and Safety at Work Act 1974 The aim is to raise the standard of health and safety for all individuals at work. The act covers duties of both the employer and employee to abide by the legislation: Employers must: Employees must: Provide relevant health and safety training to employees. Comply with the training given by the employer. Provide any necessary equipment and clothing to employees Take care of themselves and other people they work with. Provide toilets and clean drinking water. Report any hazards or accidents that occur.

Define the following terms Provide real examples, where possible Work to rule Sit-in Overtime ban Strike Picketing What is a trade union – give examples EIS – teachers Unison – public sector employees TGWU What is ACAS What do they do