1.4 - Managing people

What are the 2 approaches to staffing?

Staff as an asset Staff as a cost

Which approach of staffing treats their staff as a resource to be valued and developed over time and in response to changing market conditions?

Staff as an asset

Which approach to staffing obtains employees as cheaply as possible and disposes of them when necessary?

Staff as a cost

Which approach to staffing provides training and development opportunities?

Soft HRM

Is internal promotion encouraged in soft or hard HRM?

Soft HRM

Does soft or hard HRM empower employees with delegation and opportunities for responsibility?

Soft HRM

Which approach to staffing suits autocratic leadership style?

Hard HRM

Which approach to staffing suits democratic leadership style?

Soft HRM

Which approach to staffing works with flatter organisational structures?

Soft HRM

Which approach to staffing works with tall organisational structures?

Hard HRM

Give advantages of soft HRM

Company seen as good employer - can attract the best employees Employees are better trained and skilled and lower labour turnover More consultation improves motivation and more creative ideas are generated

Give disadvantages of soft HRM

Can be very expensive (wages and training) Can be inefficient in times of falling or increasing demand as less flexible working

Which approach to staffing has more flexible working?

Hard HRM

Give advantages of hard HRM

Can meet changes in demand more effectively - flexible workers Lower costs (wages and training) Decisions are made quicker - no consultation

Give disadvantages of hard HRM

High labour turnover - increased recruitment costs Lower levels of motivation - pay is only motivator Harder to recruit best employees

Define flexible working

Range of employment options designed to help employees balance work and home life

What are some methods of flexible working?

Multi-skilled workers, part time and temporary workers, flexible hours and home working

What is meant by multi-skilling?

Process of enhancing skills of employees

How can multi-skilling be achieved?

Training More responsibilities Job rotation

Benefits of multi-skillers

Cost effective - don't need to hire new staff Availability of skills if staff leave Covering shifts Frees up time for other employees to do more demanding tasks Improved work performance

Problems of multi-skillers

Expected to work harder without extra pay Workers may not be trained adequately for new roles Overwhelmed workers Training costs

How many hours do part time employees work per week?

Less than 30

Advantages of part time staff

Better to match supply to demand Keep valued workers that don't want to work full time Increases number of applicants

Disadvantages of part time staff

Hard to schedule meetings together Requires more employees to take on work load May lack commitment

Describe what temporary employees are

Employed for a limited time only

When are temporary employees mainly used?

Christmas

Advantages of temporary employees

Better to match supply to demand Not tied into paying workers when they are not being used to their full potential

Disadvantages of temporary employees

Recruitment and training costs may be high May lack commitment More transient - difficult to create culture

What are flexible hours?

Employees choose their own hours of work within certain boundaries

Describe a zero hours contract

Employers hire staff with no guarantee of work Only work when needed often at short notices Pay depends on how many hours worked No sick pay but there is holiday pay

What is homeworking?

Working at home rather than travelling into the workplace

Advantages of homeworking

Increases flexibility of employee Reduced costs for employer Made easier by advances in technology

Disadvantages of homeworking

Decision making and communication is slower Difficult to see whether employees are working properly and whether they deserve promotion

Advantages of zero hour contracts

Flexibility for employee Response to fluctuating demand in dynamic markets or seasonal businesses

Disadvantages of zero hour contracts

Do not offer enough financial stability Don't have same employee rights (sick pay not included)

What is outsourcing/subcontracting?

Finding an external business to carry out a part of the production process

Why is outsourcing/subcontracting used?

Cut costs Achieve better level of service

Give examples of outsourcing/subcontracting

Cleaning Call centres

Advantages of outsourcing/subcontracting

Flexibility in supply Buy in expertise Increase capacity without high capital expenditure

Disadvantages of outsourcing/subcontracting

Quality must be controlled Sub-contractor will also want to be making profit

Define dismissal

When an employee's contract is terminated due to a breach of terms of that contract by the employee

Define redundancy

Employee's contract of employment is terminated because the job no longer exists

When would dismissal be used?

Incompetence Misconduct

When would redundancy be used?

No work/insufficient work Relocation

How does redundancy affect a business?

Decreases motivation

How does dismissal affect a business?

Affects reputation of business when looking for new candidates

Define employer/employee relations

How employers and employees interact with each other on a day to day basis

What systems are put into place to aid communication between employers and employees?

Employee representation

Give 2 methods of collective bargaining

Trade unions and work councils

How is a voice given to employees?

Through a recognised body that represents them

What are trade unions?

National organisations with with a remit to protect its members and improve their economic and working conditions

What are the key objectives of trade unions?

Securing jobs Maximising pay Ensuring safe and acceptable conditions Fair treatment of members by employers

How do trade unions represent their members?

Through collective bargaining

What is the partnership approach?

When unions work with employers to achieve industrial democracy

Define collective bargaining

Employee representation through negotiation of employment issues

What can unions work with employees and employers to do?

Enhance business performance Decrease labour turnover Increase motivation

What is labour turnover?

People leaving

Why is lower labour turnover good?

Lower cost of recruitment

What is industrial dispute?

Disagreement between employer and employee/employee representative

What does industrial dispute lead to?

Industrial action

What is industrial action?

Employees take sanctions to try and impose pressure on the employer

Give examples of industrial action

Strikes Overtime ban Go slow

When is it best to avoid disputes?

Before they become troublesome

What do trade unions do about industrial disputes?

Solve them to avoid industrial action

What is an independent body that can be called in to help avoid/resolve disputes?

ACAS

Advantages of collective bargaining

Less risk of industrial disputes Effective way of communication Employers have understanding of employee perceptions Improved motivation

Disadvantages of collective bargaining

Opportunity cost of time Slows down decision making Employer may not be able to respond to employee wishes

What is a work council?

A group made up of managers and representative employees who meet regularly to discuss issues affecting the workforce

Which issues do work councils discuss?

Pay and working conditions Proposed/planned changes to business activities

When do employees have a legal right to request a work council?

In a business with over 50 employees

How must representatives be chosen in work councils?

Election

How many representatives should there be per employees in a work council?

1 representative per 50 employees

What is the individual approach?

Each employee negotiates individually with management for their own interest Decisions are made on a 1-to-1 basis rather than for the workforce as a whole

Define recruitment

The steps undertaken by a business to identify a vacancy and attract suitable candidates

What are the 2 types of recruitment?

Internal and external

What does the recruitment process involve?

Identifying a vacancy Job description Person specification Advertising the vacancy Receiving applications

What is the difference between a job description and a person specification?

Job description outlines the tasks and responsibilities of a job Person specification outlines the characteristics of the person required to do the job

What could be in a person specification?

Qualifications and experience

What is selection?

The actions taken by a business to help identify the best candidate for a job

What does the selection process involve?

Short listing Assessing candidates Offering the position

What is internal recruitment?

When candidates for a position are recruited from within the organisation

What is external recruitment?

When candidates for a position are recruited from outside the organisation

Advantages of internal recruitment

Lower recruitment costs - shorter induction period, reduced training costs Quicker process Abilities of candidates are already known

Disadvantages of internal recruitment

Leaves a vacancy to be filled Can cause friction between internal candidates Doesn't bring in new ideas

Advantages of external candidates

May be more experienced Increases number of applicants to choose from New sources of ideas

Disadvantages of external recruitment

High recruitment costs - longer induction and training period May upset internal candidates that have been overlooked

Is job description, person specification and advertisement part of recruitment or selection?

Recruitment

Are interviews, assessment centre and CV part of recruitment or selection?

Selection

What are the 2 main methods of selection?

Interviews and assessment centres

What happens in assessment centres?

Candidates carry out a range of tasks, exercises and meetings over 2 days where they are measured against a set of competencies

Describe the 3 things that psychometric testing involves

Aptitude - ability to develop skills and acquire knowledge Attainment - levels of understanding Personality - aspects of behaviour

Why must businesses select the best employees?

To not waste time and money

What are some costs of recruitment?

Time drawing up job descriptions and person specifications Placing advertisements in newspapers or journals Fees paid to a recruitment consultancy

What are some costs of selection?

Managers time shortlisting and interviewing Candidate expenses if reimbursed for interviews Fees paid to assessment centres

Define training

Process of equipping employees with the skills and knowledge necessary to carry out their job effectively

Describe the 3 methods of training

On-the-job = employee learns in the workplace from experienced employees Off-the-job = any form of education that takes place outside of the workplace Induction = introductory training for employees new to an organisation

Advantages of on-the-job training

Most cost effective Opportunity to learn whilst doing Training alongside real colleagues

Advantages of off-the-job training

Wider range of skills/qualifications can be obtained Learning from experts Feel more confident when starting job

Disadvantages of on-the-job training

Quality depends on ability of trainer and time available - bad habits may be passed on Potential disruption to production Learning environment may not be conductive

Disadvantages of off-the-job training

More expensive New employees may still require induction training Employees now have new skills/qualifications and may leave for better jobs