Human Resource Management

1. Human ResourceManagement Higher Grade Business Management 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. I’m no gonna work for this firm again, cos a goat a sair heid. What’s the point of working, I’m going to lose my job anyway

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

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) • EthnicMinorities(eg religious holidays) • DisabledPeople(less capable) • OlderPeople(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