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1.1 MANAGING HUMAN RESOURCES EFFECTIVELY

RECRUITMENT

Recruitment is the process of identifying staffing needs and attracting suitable applicants for vacancies. Selection is the process of making sure the right people are chosen to fill these vacancies. Poor recruitment and selection can be costly:

ineffective staff can lead to poor output; advertising and interviewing a second time is costly; unhappy staff reduces morale within the organisation.

INTERNAL SOURCES OF RECRUITMENT

Applicants may come from within the organisation ie a promotion or redeployment for an existing employee. This may involve a change of role and/or a change in location.

Advantages of internal recruitment include:

the applicant and the quality of their work can be more easily verified as they can be observed and internal references may be more reliable;

the organisation may already have invested in training the worker – lower costs for induction and job training;

by offering internal promotion opportunities the organisation is more likely to motivate and retain its best staff;

employees are already aware of the culture and rules of the organisation and so will settle in to their new role more quickly;

overall the cost of filling the vacancy will be less as the time taken should be less and there will be lower advertising costs.

Disadvantages of internal recruitment include:

there may be a limited choice of suitable applicants within the business;

usually creates another vacancy elsewhere in the organisation – recruitment and selection costs are shifted to this;

staff stagnation – not getting the benefit of new ideas from new staff;

EXTERNAL SOURCES OF RECRUITMENT

This involves identifying a new member of staff to join the organisation. Adverts can be placed as follows:

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Advertising the vacancy over the Internet – many organisations post vacancies on their own website. Other vacancies might be posted on specialist job search sites such as www.S1jobs.com.

Advertising in local or national newspapers or specialist publications - this allows targeting of sections of the population by choice of publication eg the Times Educational Supplement for teachers.

Use specialist recruitment agencies eg Hays Accountancy and Finance. The agency may carry out the entire recruitment and selection process.

Use government agencies eg use of Job Centres where potential employees find out about jobs and can be prepared for and sent out to interview.

Advantages/Disadvantage of External Recruitment – reverse on Internal.

THE SELECTION PROCESS

The purpose of recruitment is to find potential applicants and get them interested enough to apply. Once applications have been received, the recruitment process is complete and the selection process begins.

APPLICATIONS FORMS

Applications may arrive through the post, on-line, by email or by telephone. They may involve the use of an Application Form template, or a more open letter of application.

Advantages of application forms

You can ask for the exact information you need to know. It is easy to compare the skills and experience of different applicants. You can use the same form for future vacancies.

Disadvantages of application forms

They are time-consuming and can be tricky to design. The cost involved in producing and sending them out to applicants. Lengthy application forms can be off-putting.

CURRICULUM VITAE (CV)

It's a summary of your career history that is often the first phase in getting yourself noticed by potential employers

Advantages of requesting CVs

There is no need to produce and send out a form to every applicant. You can tell something about candidates by the way they present their CV. A covering letter can give you a good idea of their suitability for the job.

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http://www.S1jobs.com/

There are no costs involved for you.

Disadvantages of requesting CVs

It is harder to compare the skills and experience of different candidates. Gaps in education or work can be hidden more easily.

INTERVIEWS

Formal – predetermined structure, same questions asked, set criteria against which performance is measured.

Informal – unstructured ‘getting to know you’ in advance of the formal interview. This allows more scope for variation in questions asked from both sides.

Composition of the Interview Panel

One-to-One – one applicant, one interviewer. Often informal and relaxed and may be used as part of the long-leet stage.

Panel Interviews – two or more interviewers with one candidate. Interviews take turns to ask questions and can score candidates individually, and then discuss their opinions with the rest of the panel after the interview has been completed.

Advantages of Interviews

A chance to gather additional information on a candidate, Opportunity to clarify or elaborate on contents of an application form. Can check oral communication skills, body language and personal

characteristics. Allows comparisons to be made between candidates in a pressured

situation. Can collate several peoples’ opinions on candidates - interviewers compare

notes. Give candidates the opportunity to ask questions about the job/organisation.

Disadvantages of Interviews

Prone to gut reaction decisions rather than observation of fact; Costly to organise – time and money; Candidate’s interview skills may hide real issues of skill and experience; Interviewers often lack skills and experience to make right appointment.

SELECTION TESTING

To overcome some of the short falls of the interview as a method of selection, many organisations also include selection testing to gain a more objective view. This can be conducting before, after or even during the interview process.

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Intelligence Tests - these tests are designed to measure cognitive (thinking) ability and therefore give insight into a candidate’s potential to learn. Tests might cover verbal reasoning, numeracy and problem solving ability. Information gathered can be measured quantitatively enabling direct comparisons to be made.

Personality Tests - aim to identify applicants’ personality traits eg extrovert or introvert? These tests are useful where particular character traits may be important eg sales representatives may require an outgoing personality. These tests may help the business work out how well an applicant will fit in their teams.

Aptitude Tests – test a candidate’s natural ability and their potential to develop the skills for a job eg mechanical ability, manual dexterity, numerical ability. Can be particularly useful to assess candidates with limited work experience to offer.

Attainment Tests – candidates are tested on their existing knowledge or skills, These can be measured against an agreed standard within the organisation. They may test knowledge specific to the job or practical skill such as keyboarding.

Fitness/Medical Tests – certain occupations may require a minimum level of fitness eg emergency services. Most organisations will want to know that a prospective employee is in good health and therefore less likely to be off sick.

Selection tests can provide more reliable information on a candidate’s capabilities or potential but share some disadvantages of an interview in that they can be quite stressful and so some otherwise strong candidates may underperform. They are also costly and time consuming to administer. They are most effective when used in combination with application forms, interviews and references.

1.1 HUMAN RESOURCE PLANNING

Human resource planning may involve some or all of the following:

reviewing recent employment trends; predicting future staffing requirements; predicting the future supply of workers with the appropriate skills; predicting labour turnover – the rate at which staff will leave the

organisation; planning how to satisfy and motivate employees; planning how to support staff training and development; planning how to release staff who are no longer needed.

For planning purposes, human resources can be grouped into:

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Newly appointed staff who may need induction training, job training or to be issued a job contract within a certain period of time.

Potential future staff people who may join the organisation in the future. They need to be sourced and recruited to fill future vacancies.

Existing staff who may need performance appraisal and career development opportunities.

Departing staff who may be being dismissed, made redundant, retiring or choose to leave of their own accord to join another business.

1.1 FLEXIBLE WORKING PRACTICES

Flexible working hours – shift from traditional ‘9-5’ working to more flexible working patterns. These include:

Flexitime – flexibility in start and finish times provided the correct number of hours is worked over an agreed period eg a week or month. This has allowed people to avoid commuter traffic and to plan more flexible child-care arrangements.

Job-share – 2 people share one full time job, splitting the hours, duties and wages. This has been popular with parents of young children who wish to remain in the work force but do not feel they can maintain full time employment.

Compressed week – allows a full time job to be compressed into fewer days by working longer shifts eg 3 x 12 hour shifts. This has been a popular alternative to job-sharing for those who require the income that goes with a full time job.

Annualised hours contracts – the workload for the year can be divided unequally with staff working longer hours at certain times of the year and shorter hours at quieter times – it remains the responsibility of individual employees to ensure they fulfil the requirements of their job over the year.

Shift work, evening and weekend working – with more businesses staying open for longer hours, some workers prefer to work less social hours as they maybe be unavailable during normal week day hours due to child-care commitments. Others may prefer the higher wages rates that may go with working unusual hours.

Causes: as stated earlier – increases in business operating hours and the demand for more family-friendly working practices as a result of socio-cultural factors. Employers have a legal requirement to consider flexible arrangements for the hours and conditions of service of workers with young families.

Impact: can be difficult to monitor hours and ensure that tasks are being completed. More staff involved makes the calculation and administration of pay more complicated.

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Homeworking / Teleworking – fewer people are working in a traditional office environment with many working from home using the Internet to maintain contact with the business. Mobile technologies allow people to work anywhere, coming into their office to make use of a booked ‘hot desk’ when required.

Causes: made possible by developments in technology and changing attitudes by employers. Many workers want to reduce the stress, time and cost associated with commuting. Other workers may be unable to relocate to towns and cities.

Impact: Reduced costs for office space but the need to provide equipment and technical support to remote locations. Employers can access workers who might not otherwise be available for work due to their location or circumstances.

ADVANTAGES TO EMPLOYERS OF FLEXIBLE WORKING PRACTICES

The organisation mainly employs people who contribute directly to core activities and so they can focus on providing a high quality service in these areas.

Longer term savings on salaries and office space which reduces operating costs and improve profitability.

Some reduction in requirements to pay sickness benefit, holiday pay, pensions, redundancy - although recent changes employment law have affected this.

Reduction in some other administrative costs if agencies are processing wages etc.

DISADVANTAGES TO EMPLOYERS OF FLEXIBLE WORKING PRACTICES

More time and money may need to be spent on recruitment and selection eg if taking on several part time workers.

Employees are less likely to remain committed to the organisation and so recruitment, selection and training costs might be high with high staff turnover.

There may be an increased need for training (especially induction training).

There is a lack of continuity in staffing, affecting standards of service offered to customers who may go elsewhere. May be more difficult to build effective teams.

ADVANTAGES TO EMPLOYEES OF FLEXIBLE WORKING PRACTICES

Gives workers the chance to try out with a business – may lead to permanent work.

More family friendly – may enable parents to return to work. Reduced stress, time and cost of travel to work. Greater chance of people with restricted mobility to join the workforce.

DISADVANTAGES EMPLOYEES OF FLEXIBLE WORKING PRACTICES

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Less job security – may make it difficult to get a mortgage. Loss of motivation and job satisfaction if workers feel they have lower

status.

1.1 TRAINING AND DEVELOPMENT

Training involves employees being taught new skills or ways of improving existing skills. Staff development involves developing staff so that they have the skills and competencies to cope with all aspects of the job that they do, now and in the future.

REASONS FOR / BENEFITS OF TRAINING Increase Productivity – more output per head of worker will mean more

products being available for sale at a lower average cost, thus improving profitability.

Improve Flexibility – employees with a wide range of skills are more flexible and adaptable so can carry out more varied tasks. This means staff can be moved around the business to perform lots of different roles as required.

Improve Employee Satisfaction/Motivation – staff are motivated by greater challenge and variety. This may encourage them to remain with the business rather than seeking opportunities elsewhere. Motivated staff will work harder for the business and may take less time off. Employee relations are improved.

Improve the Image of the Organisation – may help attract higher quality applicants for job vacancies and establish a good reputation with customers eg if employees have undertaken a programme of customer care training.

Reduced Waste/Higher Quality Output – trained staff are less likely to make mistakes which should reduce waste. Skilled staff produce higher quality products which will improve customer satisfaction and improve competitiveness.

COSTS / PROBLEMS OF TRAINING AND DEVELOPMENT

Training Expenses – any booking fee for the course itself plus travel and subsistence costs paid to trainees if they have to travel. If specialist trainers are involved, their salaries must be paid. These expenses will increase the running costs of the business.

Loss of Output – people away from their job will not be producing any output, thus reducing the output of the business. Alternatively, the organisation may have to employ someone else on a temporary basis to cover the work.

Wage Costs Increase – highly trained employees will expect an increase in their salary to reflect their enhanced contribution to the business. This increases running costs or if not paid, the employee might seek employment elsewhere taking their skills with them (staff turnover).

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TYPES OF TRAINING & DEVELOPMENT

INDUCTION TRAINING

This is provided to new staff to make them aware of the way the business runs and to give general information about the organisation. Employees benefit from feeling at ease and meeting colleagues who can support them. This in turn helps the business as the worker is more productive more quickly. Typically, induction training may involve:

History of the organisation – background, corporate culture, vision. Personnel policies – procedures for grievance, training etc. Terms of employment – hours of work, fringe benefits, trade union

arrangements. Physical facilities – toilets, canteen, special clothing etc. Lines of responsibility – immediate line manager, the chain of command. Rules and safety measures – fire drills, health and safety measures.

ON THE JOB TRAINING

This is training which takes place during normal work time at the normal place of work, usually whilst carrying out the job they have been appointed to do.

Shadowing – sitting beside an experienced worker who explains and demonstrates the work that is to be done.

Coaching – the trainee does the job, but is overseen by an experienced person who will guide and prompt them on how to improve their work.

Mentoring – the trainee is paired with an experienced member of staff that they can approach for help and advice as required.

Job Rotation – the trainee moves around departments over their first few months in the business, thus gaining an overview of all its activities.

Apprenticeships – trainee learns a trade eg electrician by co-working with a qualified trades person who they initially shadow and who then coaches and mentors them over a period of years.

Benefits of On-the-Job Training?

Cheaper to operate as they are ‘in-house’ and so usually use staff who are employed by the business.

There is likely to be some output from trainee thus contributing directly to the profitability of the business.

Training is provided by people who are familiar with the culture and work of the organisation thus passing on the right attitudes to expectations.

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Trainee learns using exact procedures and equipment that they will be using in their own job, can get clarification on procedures on the spot.

Drawbacks of On-the-Job Training?

May be a shortage of suitably experienced staff to train. While this can be overcome by employing outside specialists to come in, other benefits may be lost.

Can reduce the productivity of the person being shadowed or mentoring and so reduce the output of the business in the short term.

Danger of missing out aspects of training if not conducted in a systematic way. This can be overcome by the use of checklists and monitoring of training.

OFF-THE-JOB TRAINING

This can take place away from the normal place of work, or at work but out with normal working hours. Its defining features is that the trainee is not expected to be carrying out any of their actual work at the time of the training course.

In-House Courses – offered by the organisation itself using its own employees. This may be at the normal place of work but employees are not doing their job at the same time. It can be cheaper to operate with benefits of being trained by someone familiar with the organisation.

External Vocational – trainees released from their normal job on a weekly, monthly or block-release basis to attend a course at a training centre or college. Courses usually need to recognised qualifications.

Distance Learning – involves the trainee working through self contained paper-based or electronic units of study. Trainees submit assignments through the post or on-line and may attend seminars where they meet their tutor personally eg Open University.

Commercial Providers – profit-making companies may offer specialist training courses lasting hours, days or longer.

Advantages and Disadvantages of Off the Job Training

More likely to be delivered by experienced and qualified specialist trainers. Less likely to tie up experienced workers from within the business. More systematic and planned and therefore less likely to miss content.

X Most costly to operate as course fees and trainers expenses must be met. X Loss of output from workers if being trained during normal working hours.X Trainers and learning environment may be unfamiliar to trainees.X Equipment and procedures unlikely to be an exact match to those being

used at the trainees actual place of work.

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VIRTUAL LEARNING ENVIRONMENTS

A virtual learning environment (VLE) is an e-learning system that simulates a real-life classroom. It is web based and allows staff and learners to communicate without being in the same physical environment. Resources such as notes, homework and assessments can be uploaded to the VLE and learners can access them at a time that is suitable for them. Lectures can be recorded and uploaded as well as other support materials such as PowerPoint and video clips.

Advantages to employer

Less time is spent away from the work place by employees which improves productivity and reduces costs.

Travel costs are eliminated as employees can access the VLE anywhere provided they can access the internet

Development of employees will increase motivation and reduce staff turnover.

Advantages to employee

Increased flexibility as the VLE can be accessed at any time, for example during the commute to work.

Employees learn at their own pace and can refer back to virtual lesson materials as many times as they require.

Social space on the VLE allows employees to interact with staff and other learners through discussion forums or chat.

Homework and assignments are completed and returned online, which is cost- and time-effective.

Improve chances of career progression.

Disadvantages

Some employees may be reluctant to learn in a virtual environment, preferring to learn in the traditional way.

If the internet or the network hosting the VLE is down materials cannot be accessed.

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PROFESSIONAL DEVELOPMENT THROUGH TRAINING SCHEMES

Training schemes provide an opportunity for employees to gain core experience and skills with an employer, starting from the bottom up. At the end of the training period the employee will not have a recognised qualification but they may have the opportunity to secure a job with their employer if they have made a good impression. They will also have a range of experiences to include in their CV as well as a valuable reference.

Training schemes are one of the most favoured career routes of graduates, with huge competition for each position. Graduate training schemes are offered by many large employers and give employment for a period of 1–2 years during which the graduate will gain a wide range of experiences in the workplace.

PROFESSIONAL DEVELOPMENT THROUGH WORK-BASED QUALIFICATIONS

Work-based learning enables employees to study towards a qualification while still earning a salary, which is advantageous to individuals for whom the cost of attending university full time is a barrier. Courses are delivered in conjunction with a university, college or other training provider and extend the workplace knowledge, skills and ability of employees.

1.2 MOTIVATION AND LEADERSHIP

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MASLOW

Maslow put forward a theory that there are five levels of human needs which employees need to have fulfilled at work.

All of the needs are structured into a hierarchy (see below) and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied.

A business should therefore offer different incentives to workers in order to help them fulfil each need in turn and progress up the hierarchy. Managers should also recognise that workers are not all motivated in the same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a slightly different set of incentives from worker to worker.

HERZBERG

Frederick Herzberg had close links with Maslow and believed in a two-factor theory of motivation. He argued that there were certain factors that a business could introduce that would directly motivate employees to work harder (Motivators). However there were also factors that would de-motivate an employee if not present but would not in themselves actually motivate employees to work harder (Hygienefactors).

Motivators are more concerned with the actual job itself. For instance how interesting the work is and how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are factors which ‘surround the job’ rather than the job itself. For example a worker will only turn up to work if a business has provided a reasonable level of pay and safe working conditions but these factors will not make him work harder at his job once he is there.

Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods. Some of the methods managers could use to achieve this are:

Job enlargement – workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting.

Job enrichment - involves workers being given a wider range of more complex, interesting and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement.

Empowerment means delegating more power to employees to make their

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own decisions over areas of their working life.

MCGREGOR THEORY X & THEORY Y

McGregor developed two theories of human behaviour at work: Theory X and Y. Theory X workers could be described as follows:- Individuals who dislike work and avoid it where possible- Individuals who lack ambition, dislike responsibility and prefer to be led- Individuals who desire security

Theory Y workers were characterised by McGregor as:- Consider effort at work as just like rest or play- Ordinary people who do not dislike work. Depending on the working conditions, work could be considered a source of satisfaction - Individuals who seek responsibility

The management implications for Theory X workers are that, to achieve organisational objectives, rewards of varying kinds are likely to be the most popular motivator. The challenge for management with Theory Y workers is to create a working environment (or culture) where workers can show and develop their creativity.

MOTIVATING EMPLOYEES

Motivation is about the ways a business can encourage staff to give their best. Motivated staff care about the success of the business and work better. A motivated workforce results in:

Increased output caused by extra effort from workers. Improved quality as staff take a greater pride in their work. A higher level of staff retention. Workers are keen to stay with the firm

and also reluctant to take unnecessary days off work.

Managers can influence employee motivation in a variety of ways:

Monetary factors: some staff work harder if offered higher pay. Non-monetary factors: other staff respond to incentives that have

nothing to do with pay, eg improved working conditions or the chance to win promotion.

EMPLOYEE PARTICIPATION/EMPOWERMENT

Works Councils - employees and employers representatives are appointed or elected to a group which meets on a regular basis. In some professions eg Works Councils may have legal rights to participate in decision-making on matters pertaining conditions of employment. Works councils provide a formal opportunity to exchange views and can smooth the way for the introduction of changes to working practices.

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Worker Directors – Employees representatives take a non-executive (ie advisory) role on the Board of Directors – they will sit in and comment on decisions being made but may not have the authority to block or impose a decision.

Quality Circles – workers involved in a particular part of the production process meet to discuss how to improve the quality and effectiveness of production. See Operations Management notes on Quality Circles.

Joint Consultation Groups – management and employee representatives meet on an occasional basis to discuss areas of common concern.

Benefits of Worker Participation/Empowerment

Creates opportunities for the generation of ideas – better decision making. Improves worker motivation, output and quality of work Leads to more skilled workers (see benefits of training). Reduces staff absenteeism and turnover. Reduces the likelihood of industrial action.

Drawbacks of Worker Participation / Empowerment

Conflicting objectives of management vs employees – profits vs pay rises. Employee representatives may misrepresent the views of their colleagues. Time taken – can be difficult to reach a consensus between all sides.

MANAGERS ROLE IN MOTIVATING EMPLOYEES

Personally thank employees for doing a good job — one on one, in writing, or both. Doing it promptly, often, and sincerely.

Be willing to take time to meet with and listen to employees. Give them as much time as they need or want.

Provide specific feedback about the performance of the employee, the department, and the organisation.

Create a work environment that is open, trusting, and fun. Encourage new ideas and initiative.

Involve employees in decisions, especially those decisions that directly affect them.

Encourage employees to have a sense of ownership in their work and their work environment.

Celebrate successes of the company, the department, and the individuals in it. Take time for team- and morale-building meetings and activities.

LEADERSHIP STYLES

Leaders exercise their authority in different ways. In doing so, they are said to exhibit a “leadership style”.

Autocratic

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This is often referred to as an authoritarian leadership style, and it basically means that the people at the top of an organisation make all the decisions and delegate very little responsibility down to their subordinates.

Communication is top-down, with no opportunity for feedback to the leader. It can cause much resentment and frustration amongst the workforce and it is not very common in today's business world.

Democratic This involves managers and leaders taking into account the views of the

workforce before implementing any new system. This can lead to increased levels of morale and motivation amongst the

workforce, but it can also result in far more time being taken to achieve the results since many people are involved in discussing the decision.

Laissez-faire This is where employees are set objectives, and then they have to decide

how best to achieve them using the available resources. This method of leadership can result in high levels of enthusiasm for the task in-hand, but it can at times rely too much on the skills of the workforce.

1.3 EMPLOYEE RELATIONS

‘Employee relations’ is the way in which employers deal with their employees as a group or as individuals.

Organisations should have an employee relations policy in place which should include:

Trade Union Recognition – stating which trade unions are recognised for purposes of negotiating pay and conditions of service.

Collective Bargaining – how and when discussions between employer and employee representatives (trade unions) should take place;

Employee Relations Procedures – such as disciplinary, grievance, redundancy;

Terms and Conditions of Employment - which could be with individual employees, all employees, or specific groups of employees;

Participation and Involvement – if and how the workforce will have opportunities to take part in decisions which may affect them.

IMPACT OF POSITIVE EMPLOYEE RELATIONS

Creates opportunities for the generation of ideas – better decision making. Improves worker motivation, output and quality of work Leads to more skilled workers (see benefits of training). Reduces staff absenteeism and turnover. Reduces the likelihood of industrial action. Good for quality management as more people are involved (TQM)

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Creates a favourable image for the organisation – good PR, attract good workers.

INDUSTRIAL ACTION

Sometimes, employee and employer representatives cannot reach agreement through negotiation and consultation resulting in one or both sides taking industrial action.

Industrial Action by Employers

Suspension of individual staff – preventing them from coming into work. Withdrawal of overtime – reducing earning potential for employees. Lockouts – preventing all staff from entering the workplace. Tighter supervision of workers. Closing the business on a permanent basis.Industrial Action by Employees

Work to rule - where workers work to the letter of their contract, often leaving important work unfinished.

Go Slow – working within contracts but at the slowest possible rate without being disciplined for under-performance.

Overtime bans – refusing to work beyond contractual minimum hours making it hard for employers to meet deadlines.

Sit-ins – where the work premises are occupied and other workers and managers may not be able to gain entry to the premises.

Strike action – workers refusing to enter the work place to carry out work. This can sometimes cause production to come to a complete halt as non-unionised workers may still decide to support the strike.

Picketing – striking employees may try to persuade other employees or service providers not to enter the work place.

Costs of Industrial Action to the Employer

Lost output leading to lost sales and therefore sales income. Missed deadlines leading to customer dissatisfaction and penalties in

contracts. Poor future relationships with workers leading to less goodwill in the future. Damaging to the company’s image with its customers or future employees. Resources lying idle if workers are not doing overtime or are on strike.

Costs of Industrial Action to the Employee

Loss of earnings due to being on strike or in an overtime ban. Loss of employment on a temporary or permanent basis (redundancies). Stress and friction between management and with colleagues who may not

have taken part in the industrial action.

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Benefits of Industrial Action – to Employers and/or Employees

It may clear the air between management and employees and focus everyone on gaining a solution to a dispute to prevent an escalation in industrial action.

It may facilitate the introduction of changes in conditions of employment which can be favourable to one or both sides in the longer term.

May result in the management revising goals to something more realistic.THE APPRAISAL PROCESS (PERFORMANCE REVIEW)

Appraisal involves monitoring and evaluating the effectiveness of an employee. Its purpose is to support staff, recognise their strengths and, if necessary, highlight areas for development.

It is usually conducted once a year at a time agreed between the individual employee and their line manager. Employees should be given plenty of notice and given time to conduct a self evaluation in advance of the interview.

BENEFITS OF APPRAISALS:

to agree the award of a financial / non-financial rewards in relation to targets set;

to formally recognise and praise achievements of staff and make a formal record;

to identify areas for improvement and identify training needs; to allow workers to air concerns in a non-threatening environment; to improve communication between employees and their managers;

PROBLEMS WITH APPRAISALS:

Staff may mistrust their line manager and try to play down difficulties in order to avoid being identified as performing poorly (fears for job security, promotion).

Business may lack sufficient finances to implement the training needs identified – thus leading to the employee being mistrustful or disillusioned with the process.

Successful employees may expect financial rewards in return for a good appraisal and may seek alternative employment if this is not offered.

COMPANY POLICIES

Company policies and procedures establish the rules of conduct within an organisation, outlining the responsibilities of both employees and employers. Company policies and procedures are in place to protect the rights of workers

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as well as the business interests of employers. Depending on the needs of the organization, various policies and procedures establish rules regarding employee conduct, attendance, dress code, privacy and other areas related to the terms and conditions of employment.

Grievance Procedures – sets out what employees should do if they are aggrieved at something that is happening to them at work eg they feel their employer is not complying with employment protection laws relating to harassment or bullying, or discrimination. Employees usually seek the support of their union representative when taking out a grievance against their employer. If the employee is successful (their grievance is ‘upheld’) they may be entitled to financial compensation.

Disciplinary Procedures – these are the steps that must be followed if an employee has broken the organisation’s rules. The procedure must include a definition of what would be a disciplinary offence eg frequent lateness. It must state who may take what action, in what order, and when. Several stages are required before an employee can be dismissed. Firstly the issuing of a verbal warning direct to the employee. Secondly – an initial written warning and a final written warning.

Absenteeism - Attendance policies set rules and guidelines surrounding employee adherence to work schedules. Attendance policies define how employees may schedule time off or notify superiors of an absence or late arrival. This policy also sets forth the consequences for failing to adhere to a schedule. For example, employers may allow only a certain number of absences within a specified time frame. The attendance policy discusses the disciplinary action employees face if they miss more days than the company allows.

Delayering - This involves cutting out layers of management to flatten the internal structure. De-layering involves making redundancy payments which involves a short term cost increase (though longer term lower costs for salaries). De-layering can lead to uncertainty amongst staff resulting in stress and low morale. More talented employees may seek to leave the organisation rather than wait to see if they will be kept on.

Downsizing - Can involve a scaling down within existing departments or the closing down of entire departments, branches or divisions. Downsizing leads to job losses which may result in short term increased costs of redundancy payments, and longer term problems as remaining staff are anxious and resentful of the decision to downsize. Downsizing causes tension between management and workers and may result in short term industrial action and poor employee relations in the longer term.

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CONTEMPORARY WORKING PRACTICES

The UK provides opportunities to fit work around personal and family circumstances.

KEY CHANGES

Overall growth in part-time work, with male part-time workers growing and women part time worker remaining constant.

Causes: Employers’ increasing preference for flexible part-time contracts in order to maximise efficiency and reduce the costs of employing full time workers.

Impact: HR planners have been able to keep businesses open by offering a combination of full and part time contracts.

Increase in fixed-term (temporary) contract work and temporary casual contracts using agency staff.

Causes: Employers preference to take on and release workers more frequently, to respond to changes in demand without having to go through formal redundancy procedures.

Impact: Some firms choose to take on previously permanent employees on a contract only basis – offering them work on a fixed-term or project-by-project basis, thus reducing some of the costs of maintaining a permanent workforce.

Self-employment - has increased with more people starting up as sole traders, partnerships eg taking on a franchise business opportunity or setting up as a self-employed contractor.

Causes: due to individual employees’ desire to be more flexible in their working arrangements and have more control over working conditions.

ALSO SEE EARLIER NOTES ON FLEXIBLE WORKING.

MAIN INSTITUTIONS IN EMPLOYEE RELATIONS

TRADE UNIONS

Not all occupations are unionised, but where this is so the collective voice of union members is more powerful than the individual voices of its members.

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The role or purpose of a Trade Union is as follows.

Negotiation of pay and general conditions of service on behalf of members. Promoting job security threatened by closure, downsizing or changing

practices. Negotiate and advise on procedures in situations where redundancy must

occur. Represent members in grievance or disciplinary proceedings, eg unfair

dismissal. Support employees who are taking their employer to an Employment

Tribunal. Defining job descriptions - ensuring employers don’t over ‘enrich’ or

‘enlarge’. Negotiating changes in contracts eg moving to flexible working hours.

Employers often prefer to deal with a trade union in relation to negotiating pay and conditions, or introducing new working practices. In recent years, successful agreements have been reached with trade unions on a number of employment matters:

Single union recognition – one union recognised for negotiating purposes.

Single job status – grouping together different types of workers whose job is similar for negotiating purposes.

Flexible working practices – securing union support for changes eg job rotation, changes in working hours.

Training/retraining – securing union support for the retraining and redeployment of workers where it will result in preserving jobs.

Arbitration – a willingness to accept arbitration - the involvement of an objective third party - instead of engaging in industrial action.

PROFESSIONAL ASSOCIATIONS

Professional Associations are concerned with maintaining professional standards within an industry or profession. They may define qualifications and standards to be met by those seeking registration eg the General Teaching Council for Scotland - all teacher must seek registration with this body.

EMPLOYERS’ ASSOCIATIONS

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These are organisations that represent employers’ interests within an industry. They are financed by members’ subscriptions and perform the following functions:

Lobby government on taxation and employment legislation; Conduct product and market research on behalf of the industry; Serve as the public relations voice of the industry as a whole; Take part in negotiations along with employees’ representatives. Employers’ Associations as a group are represented by the Confederation of

British Industry (CBI)

ADVISORY, CONCILIATION AND ARBITRATION SERVICE – ACAS

ACAS is an independent body in place to support employer and employees in the employee relations process. It does this by:

1. PREVENTING or resolving employment disputes - helping employers and employees (or their reps) to solve problems before they develop into full-blown disputes and confrontation. They achieve this through workshops and joint working parties.

2. CONCILIATING – helping keep discussions going in complaints before Employment Tribunals.

3. ARBITRATION - where conciliation fails, ACAS may be asked to arbitrate. An independent arbitrator or will examine the case and make a recommendation which both sides must agree to comply with.

4. INFORMATION AND ADVICE - ACAS operates a network of public enquiry points to deal with queries on employment matters such as rights and obligations under employment law.

5. PROMOTING GOOD PRACTICE – ACAS runs conferences and seminars on employment and industrial relations issues.

SUMMARY OF EFFECTS OF POOR EMPLOYEE RELATIONS

Increased staff turnover and absenteeism Reduced productivity (output per head) Poorer quality output (poorly motivated employees) Greater resistance to changes in product and working practices (less

cooperative) Increased chances of industrial action (see earlier notes on impact) Damage to reputation with future employees Legal costs if disputes are unresolved Hostile working environments – impact on employee health and wellbeing

1.4 EMPLOYMENT LAW

EQUALITY ACT – SEX AND PAY DISCRIMINATION

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Under the Equality Act it is unlawful for an employer to discriminate against you because of your gender. It covers things like:

recruitment and selection eg in the wording of person specifications, job advertisements, selection and conduct of interviews, candidate selection;

employment terms and conditions eg in relation to hours worked, holiday entitlements, arrangements for flexible working;

pay and other benefits eg health care insurance, company car; training opportunities eg provision of courses and/or giving time off to

attend;

EQUALITY ACT – DISABILITY DISCRIMINATION

An employer must make reasonable changes to applications, interviews and work so that disabled people are not disadvantaged. Under the Equality Act 2010, an employer must not:

treat a person less favourably because of their disability (direct discrimination);

indirectly discriminate unless there is a fair and balanced reason for this; discriminate against, or harass a person associated with a disabled person;

EQUALITY ACT- RACE RELATIONS

The Act makes it unlawful for an employer to discriminate against workers on racial grounds including colour; nationality; ethnic or national origins. direct discrimination - deliberate discrimination (eg where a particular job is

only open to people of a specific racial group); indirect discrimination - working practices, provisions or conditions that

disadvantage members of any racial group eg introducing a dress code;HEALTH AND SAFETY AT WORK ACT 1974 (HASAWA)

Health and Safety at Work - Employers’ Duties

to provide and maintain equipment, premises and systems of work that are, so far as is reasonably practicable, safe and without risk to health;

to provide information, instruction, training and supervision necessary to ensure, so far as is reasonably practicable, health and safety at work of employees;

Health and Safety at Work - Employees’ Duties

to take reasonable care for the health and safety of themselves and of others who may be affected by their acts or omissions at work;

to carry out their duties according to training or instructions given by employer;

to report any dangerous situations in the work place or any gaps in the arrangements for health and safety.

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NATIONAL MINIMUM WAGE REGULATION

The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid.

From the 1st of October 2014 the National Minimum Wage rates are:

£2.73 for apprentices rate, aged under 19, or if you're 19 or over and in the first year of their apprenticeship.

£3.79 for people under age of 18 who are no longer of compulsory school age.

£5.13 for workers aged 18 - 20 years inclusive. £6.50 for workers aged 21 and over.

If you are of compulsory school age you are not entitled to the NMW. Some of your other employment rights are also different.

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USES OF ICT IN HUMAN RESOURCE MANAGEMENT

ICT HARDWARE

Web Cams/Skype – could be used to conduct certain interviews eg at the first stage with an overseas candidate.

Printers/Photocopiers – could be used to print off job descriptions / person specifications, application forms, letters to applicants, contracts etc.

Public Address Systems – used in training and large staff meetings.

Digital Projectors/Smart Boards – used to deliver training / support staff meetings.

DVD/CD Players/IPODs – used to distribute training materials.

Camcorder – may record someone doing a presentation as part of selection testing.

ICT SOFTWARE

Databases – can be used to record employee details.

PowerPoint – used to deliver training / support staff meetings.

Word Processing – to prepare documents for recruitment, selection, training

Internet Web Pages – used to advertise job vacancies.

Desk Top Publishing – to prepare training manuals eg procedures for quality management.

E-mail – to make arrangements with employees eg timings for Appraisal interview – may send over documents as attachments (recruitment, training etc).

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student notes - busx.weebly.com€¦ · web viewuse government agencies eg use of job centres....

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