2. Recruitment and Selection

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1 1. Human Resources Human resource management (HRM) is the area of administrative focus dealing with an organization's employees. There are Four Main Job Roles in a business: Directors: Appointed to run the business on behalf of the owners. They make sure the business objectives are met. Managers: Implement the decisions of the directors. Control the day to day running. Supervisors: Control the workers who are carrying out the jobs. Operatives: People who carry out the specific tasks. An organisation chart An organisation chart ensures: Staff know who their manager is, therefore communication should be efficient. Staff know their chain of command and their span of control. Staff can see career path Staff know where the promotional line is 2. Recruitment and Selection Recruitment is an important part of a business human resource planning. In larger organisations recruitment and selection is usually one of the jobs of the personnel or human resources department. In smaller businesses, the owner, or one of the partners, may have to do it. Recruitment: The process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job opening, in a timely and cost effective manner. The recruitment process includes analyzing 22

2 the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization. In all businesses, people are a vital resource - and they need to be managed. The overall aim of the recruitment process is to obtain the number and quality of employees that are required in order for the business to achieve its objectives. The three main stages in recruitment: 1. Needs Analysis (This involves the preparation of a job description and person specification.) 2. Advertising the post 3. Selecting from the applicants The Recruitment and Selection Process in detail Job Analysis Job Description / Person Specification Advertise the Post Short-list (Approximately 6) Interview Applicants Offer Post to Successful Applicant Inform Unsuccessful Applicants Induction Contract of employment Recruitment is a continuous process - because of Staff departures. Changes in the business Promotions. Changes in business location. 23

3 Recruitment is becoming more and more important in business. In particular, this reflects the increasing need for a well-motivated and flexible workforce that requires less management supervision. Work Skills and Attitudes: Getting a job depends on more than the right qualifications. Employers want their employees to have the right skills and attitude to meet the companies objectives. You learn some of these skills in School, others take time to develop. Recruitment and Selection: Recruitment is the process of obtaining suitable candidates Selection is the process of choosing the best candidate. The process of Recruitment and selection Recruitment Person hands in notice as they want to leave or a new post is created. Job Analysis Job Description Person Specification Essential + Desirable 24

4 The start point could be one of two ways: What are the choices for us in this situation? Person hands in their notice; they want to leave the company 1. Offer better conditions of services. 2. Direct replacement 3. Promote someone 5. Absorb the tasks of the job 6. Get a machine to do the job? 7. Can we use part timers, or job share 4. Does the job need replacing All the above require a Job Analysis to be carried out. Or a New post is required Before we can actually employ someone we must sit down and consider what we want the person to do and do a Job Analysis. Job Analysis This is the start of looking at anyone's job, to see what the tasks they do and all the duties they will be responsible for. What could we do to find out what the current job holder actually does? Interview the Job Holder Interview the job Holder s Boss. Keep a diary while doing the job. Observe the person doing the job Job analysis has to be very detailed and accurate. It will form the basis for two main important documents which will be used in selecting the correct person. Job Description: The job description is the main tool a manger will use to examine how well you can do your job. A job description is a brief description of a job and its duties which is given to job applicants. The information that may be included in the job description is job title, department, function and responsible to. 25

5 Person Specification: A person specification describes the requirements a job holder needs to be able to perform the job. It includes the information on what type of person we want. Great care must be taken to ensure you are not in breach of any Employment or Equal Opportunities Laws. Information that would be included: Education and qualifications Training and experience Personal qualities The person specification will have Essential and desirable qualities on it. Essential are qualities the person must have and Desirable qualities are ones which are a bonus and nice if the applicant has. Internal and External Recruitment Businesses wanting to recruit have a variety of ways in which they can seek applicants. Internal Recruitment: A business appoints someone to a post who is already working for the organisation. External Recruitment: A person who is not working for the business is appointed. We need to compose the advert, this must reflect what is in the Person Specification and Job Description, and it must be accurate so you don t get the wrong people applying. Advertising the job: Now that we have the person specification, and job description we need to find a suitable place to advertise the job/post. This will depend on the type of person you wish to recruit. Here are some places we can use: Careers Office or the Job Centre Commercial Radio National or local papers We can use Recruitment agencies if we want to stay anonymous. Professional Magazines 26

6 Application Process: Next decision is should you use an application form, or allow people to apply with a Curriculum Vitae (CV). The trouble with CV s is that you have no control on the layout or its contents. Application Forms mean that you have control of the information you want and how it s laid out. This makes it easier to sift through many applications in drawing a shortlist. Curriculum Vitae: This is written by a job applicant. It enables the company to see the applicant s skills and qualifications. A letter of application usually accompanies a C.V. The letter of application should include: Why you want the job, why you want to work for the company and what you will bring to the job. Sending out Application forms Some companies prefer applicants to fill in an application form. The application form usually asks for the following information. Personal details Age; nationality Education and Training schools; university and qualification / grades Previous Employment Salary and reasons for leaving. Interests and Leisure activities Reasons for applying for the post References Application Process: Send off CV or Application Form with a Covering Letter. Having received letters of application and CV s businesses can start the Selection process. Selection Once you have got the applications in by the set end date, you can then start sift through them to produce a short list for interview. This is where the person specification becomes handy since you know what the minimum requirements are for the post and anyone who has not got them will be discarded. The only time this decision will be reversed is if no candidate meets the minimum requirement. 27

7 Interviews: Sometimes one interviewer but more often, there are two. Objectives of a Job Interview To find out if the person is able to do the job well To find out if the person will fit in the organisation An interviewer must: Treat all applicants fairly Try and find out as much as possible about the applicant Interviewing the candidate - Advantages Interviews give the interviewers the chance to meet the candidates. They can assess abilities and characters; see how they react to situations. Interviewing the candidate - Disadvantages. Some interviews do not test the relevant skills needed to do the job. Some candidates are naturally gifted to perform well at interviews. Interviewers sometime let personal prejudices influence their choice of candidate. Methods of Selection: Many firms use other methods of selection in addition to the interview. With some jobs, they test the candidates skills and personality. PERSONALITY TESTS or PSYCHOMENTRIC TEST (They may include aptitude or ability tests, personality questionnaires or a combination of both.) Management jobs may test endurance and leadership skills in outdoor activity centres. Most companies check references and medical certificates. 28

8 3. Training and Inductions Once the candidate has been selected we now need to ensure that they are trained appropriately. Definition of training: A process by which someone is taught the skills that are needed for an art, profession, or job. The Human Resource department is also responsible for meeting the employee s training needs. Training is important and there are many reasons for training employees. 29

9 Advantages and Disadvantages of training: Advantages Less Absenteeism; easier to retain staff. Lower Labour Turnover; (number of people who leave the company) Disadvantages Some employees may be trained and then leave for another job. Training is expensive and takes time. Induction: Period of training for workers new to a business when they find out about the business and the job they have to do. Induction Programmes: It is important that all externally recruited personnel have a company induction. It introduces them to their job and the company. Larger companies usually have elaborate and formal inductions. It includes a tour around the building / companies rules / introduction to colleagues. Induction Programmes: Benefits The programme helps to make recruits familiar with the company and the working environment. The company is presented in a favourable light, which might help to increase employee loyalty and motivation. What information do you think that you would be told at induction? Induction training Induction training is important as it enables a new recruit to become productive as quickly as possible. It can avoid costly mistakes by recruits not knowing the procedures or techniques of their new jobs. 30

10 The length of induction training will vary from job to job and will depend on the complexity of the job, the size of the business and the level or position of the job within the business. The following areas may be included in induction training: Learning about the duties of the job Meeting new colleagues Seeing the layout the premises Learning the values and aims of the business Learning about the internal workings and policies of the business On-the-job training On the job training occurs when workers pick up skills whilst working alongside experienced workers at their place of work. For example this could be the actual assembly line or offices where the employee works. New workers may simply shadow or observe fellow employees to begin with and are often given instruction manuals or interactive training programmes to work through. Off-the-job training This occurs when workers are taken away from their place of work to be trained. This may take place at training agency or local college, although many larger firms also have their own training centres. Training can take the form of lectures or self-study and can be used to develop more general skills and knowledge that can be used in a variety of situations, e.g. management skills programme. The respective advantages of on-the-job and off-the-job training are summarised below: On-the-Job Training Advantages Cheaper to carry out Learn from specialists in that area of work who can provide more in-depth study Training is very relevant and practical dealing with day to day requirements of job Can more easily deal with groups of workers at the same time Workers not taken away from jobs so can still be productive 31

11 Off-the-Job Training Advantages Employees respond better when taken away from pressures of working environment Employees who are new to a job role become productive as quickly as possible Workers may be able to obtain qualifications or certificates The Contract of Employment A contract of employment is an agreement between the employer and the employee. It specifies the terms and conditions under which a person consents to perform certain duties as directed and controlled by an employer in return for an agreed upon wage or salary. Within 13 weeks of starting work an employee must receive a Contract of Employment. This is a legal document It should contain the: Name of employer and employee Date on which employment started Job title Rate of pay, frequency of pay and payment method Normal hours of work Holiday entitlement and holiday pay Conditions relating to sickness and injury Pension arrangements Length of notice required by both parties Disciplinary rules and procedures Arrangements for handling problems 32

12 4. Pay A Pay Slip Pay advice slips: A pay slip shows the amount of pay that a person receives and any deductions taken from that pay. A pay slip usually covers the period of a week or a month. Gross pay is the total income that a person receives before any deductions are made. Net Pay is the amount that the person receives after deductions have been taken off. The main deductions are for income tax, National Insurance and pension contributions. A pay slip will also show any expenses paid to the worker. E.g. some workers use their own cars for work and will usually be able to claim for the mileage they do. SALARY vs WAGE SALARY - Usually for non-manual / professional workers. - Expressed as a yearly figure (per annum). - But paid monthly. - Stays the same no matter how many hours you work. WAGE (Time Rate) - Tends to be paid to manual workers or for short term contracts. - Expressed as an hourly figure. - Could be paid daily, weekly or monthly. - More hours worked = More pay. But there are more ways to get paid.. 33

13 Piece Rate- Workers pay based on how much they produce. Commission- Earnings are determined by how much is sold. % of the sale goes to member of staff. Bonus- An additionally payment for achieving a target. Profit-sharing- The worker may be paid a share of any profits that the firm makes. Fringe Benefits or perks- Payment in kind in a non-monetary value. e.g. A company Car Overtime- Time worked over basic hours. Often gets paid at higher rate than basic hours. The method of pay that is appropriate for motivating workers will depend upon the work that the workers do and the type of business that they work in. Commission is often used with sales workers and piece rates are used with production workers. Profitsharing may be useful when the individual contribution of workers cannot be worked out. 5. Motivation Definition: Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal. Motivation is present in every life function. Simple acts such as eating are motivated by hunger. Education is motivated by desire for knowledge. Motivators can be anything from reward to coercion. Motivation is important and it influences the rate and efficiency that we undertake tasks. People who are highly motivated will generally work harder and effectively than people who lack motivation. For a business to motivate its employees it needs to know what the person wants from the job. Why do people work? 34

14 Methods to motivate PAYMENT SYSTEM INCREASE THE EMPLOYEES WAGES OR SALARY. IMPROVING COMMUNICATION MAKING THE EMPLOYEE FEEL VALUED BY REGULAR FEEDBACK, PRAISE AND RECOGNITION. JOB ROTATION AIMS TO PREVENT BOREDOM BY DOING THE SAME JOB OVER AND OVER AGAIN. EMPLOYEE WORKS IN A DIFFERENT DEPARTMENT. JOB ENLARGEMENT THE BUSINESS FILLS THE EMPLOYEES SPARE TIME WITH EXTRA TASKS AND DUTIES. JOB ENRICHMENT GIVEN THE RESPONSIBILITY TO TRAIN NEW MEMBERS OF STAFF. THE EMPLOYEE IS GIVEN GREATER RESPONSIBILITY. TEAM WORKING PLACING THE EMPLOYEES IN GROUPS WHO WORK TO THE SAME OBJECTIVES. Maslow s Hierarchy of Needs Maslow believed that all people are motivated by the same things. He identified 5 human needs he believed people wanted to satisfy. As one set of needs was satisfied by an individual, it would stop acting as a motivator, but the individual would then be motivated by the next set of needs. 35

15 Names for the Needs Meaning Relevance to Business Self-fulfilment The need to fulfil your potential. Employers allow staff to work at what they are good at, and to organise their work in the ways they wish to do it. Self-esteem The need to be valued. Rewards if targets are met, pay rises, promotion; employers offer praise and acknowledge the good work of the employee. Social needs The need to belong to and work in a group. Team meetings, company magazines, staff social events; working in groups. Safety The need to be protected. Safe machinery; protection in employment; contracts etc. Physiological needs Food, warmth, sleep, clothes Heating, toilets, canteen; wages Frederick Herzberg: 2 Factor Theory. Herzberg interviewed accountants and engineers, asking them to identify what made them feel good and bad about their jobs. As a result developed a 2 factor theory of motivation based on hygiene factors and motivators: 36

16 Typical Hygiene Factors are: Working conditions Quality of supervision Salary Status Security Company Job Company policies and administration Interpersonal relations Typical Motivation Factors include: Achievement Recognition for achievement Responsibility for task Interest in the job Achievement to higher level tasks Growth Herzberg 2 Factor Theory Hygiene Factors include an employee s salary, and the level of job security. By themselves these are not motivators, but if they are removed they act as dissatisfies. Motivators act as satisfiers, these are good feelings which include promotion, recognition and achievement at work. This suggests that challenging, interesting and rewarding work will motivate and satisfy employees. Satisfiers = the job Dissatisfies = working conditions Douglas Mcgregor X and Y Theory Mcgregor s Theory X managers believes that an employee dislikes work and will avoid it if possible. As a result Theory X workers must be controlled, directed and threatened with punishment if necessary to make them work. Mcgregor s Theory Y manager believes that an employee finds work as natural as play or rest. As a result they are able and willing to organise, control and direct themselves, and to accept authority and responsibility. Control and punishment are not effective ways to get the theory Y employee to work. Mcgregor analysis shows that employers should treat their employees as individuals finding out what motivates them. 37

17 McGregor realised there were 2 types of managers, he was a theory Y manager. He believed if he empowered his employees, ultimately this would allow them to be happier at work and more productive It can be argued that businesses will need a number of theory X and a number of theory Y managers to be effective, as some staff will need differing management styles to get the best out of them. 38

18 Leadership Styles 6. The Law Businesses have to obey the law. If they fail to obey, they risk two things: They can be prosecuted (government) by a number of government departments and agencies, such as the Health and Safety Executive, and possibly fined; They can be sued (individuals) by people or other businesses which have lost out as a result of their actions. Damages might then have to be paid. Employment law: This is aimed at protecting the health, safety and rights of employees The main employment laws that a business needs to consider are: The main employment laws Equal Pay Act 1970: Employees who do equal work or work of equal value must receive the same pay as workers of the other sex. Race Relations Act 1976: It is illegal to discriminate against someone on the basis of race, ethnic group or colour. Sex Discrimination Act 1975: Employees cannot be sexually discriminated in employment, training or recruitment. Health and Safety at Work Act 1974: The law makes it the responsibility of the employer to protect workers from dangers in the workplace. Responsibilities include providing safe equipment, washing facilities and toilets, and adequate breaks. Minimum wage Act: This was introduced to stop workers being exploited by employers. It applies to people over the age of 18. For people in the age range the minimum hourly wage rate is less than those aged 22 years and over. Employment Rights Act 1996: The firm does not need to give the worker a written contract of employment but it must give a statement of particulars within eight weeks of starting work Disability discrimination Act: The act is designed to give equal opportunities to disabled people. Employers cannot discriminate against disabled people when recruiting staff. They are expected to make reasonable changes to premises to permit access and mobility around them. 39

19 Benefits and Costs of Employment Law: Employment law imposes additional costs to the business because they have to spend additional money on training, recruitment and pay. Like the Health and Safety Act there are also benefits if the workers feel they are treated fairly and there is more security, they will be more motivated. Employment Tribunals: Employment tribunals are courts of law, and deal with most of the laws relating to employment. Redundancy: When a workers employment is ended because the work they do is no longer needed by a firm it is called redundancy. The law gives protection to workers who are made redundant. If they have worked for their employer for at least two years, the employer must pay them redundancy money as compensation for losing their job. 7. Trade Unions Trade Union Definition: An organization whose membership consists of workers and union leaders, united to protect and promote their common interests. The management at a company communicate with its workforce over a range of issues. Such as: Pay, Holidays, Working Conditions, Contracts of employment. Industrial Relations is the term used to describe the relationship between the two groups. Sometimes the workforce turn to their trade union for advice and support about a range of issues or if they feel the management or government are not dealing in their best interests. Examples of trade unions are the National Union of Teachers and Unison, which represents works in public sector organisations. To act as a pressure group: Trade unions set out to do two main jobs: To act as a pressure group To protect the interests of its members. A pressure group is an organisation that seeks to influence government to make laws that are in the interests of its members. A trade union, asking government to limit working hours more strictly, would be acting as a pressure group. 40

20 To protect the interests of its members: Unions help workers with all kinds of matters. These include: Working conditions Hours Redundancy Unfair dismissal Safety at work Race and sex discrimination Pay Holiday entitlement Benefits of union membership Unions are able to help workers with these kinds of matters because: They have strength in numbers. The actions of a large group of workers will have more influence than the actions of an individual. They can give expert advice and support. Unions employ specialists such as solicitors. These will be able to give workers expert advice about the rights the workers have and what to do in a dispute. They have the money to help to pay for expensive court cases. They will have trained negotiators who know how to deal with the employers. Unions can also negotiate benefits for their members. Discounts in some shops and lower rates of interest on loans are examples of these benefits. Industrial Action This term refers to the action that workers can take to try to achieve what they want in a dispute with the employer. Many disputes are settled before any industrial action takes place. Industrial action is designed to benefit the workers. However, it may also have costs for the worker. It will also harm the employer, the customers of the firm and the economy as a whole. Types of industrial action: Strike Nearly all workers have the right to withdraw their labour. Sometimes a strike can be selected by workers who have key jobs. It may be for one day or until the dispute is settled. 41

21 Overtime ban This is when the workers will only work the hours stated in their contract of employment. They will not work any overtime. Work to rule This is when the workers will only do what is included in their job description. The costs of industrial action: Costs to the workers 1. Lose wages 2. May lose bonuses, commission, overtime pay, etc. 3. If the firm suffers a loss of sales, workers may be laid off or made redundant. Costs to customers 1. They are not able to buy the products they need. Costs to the firm 1. Cannot produce or sell so loses income. 2. May make less profit 3. Customers may take their business to competitors. Costs to the economy 1. People and firms will have less money to spend businesses will lose sales revenue. Single union agreements In some places of work, several different unions may represent different kinds of workers. Different craft unions may represent different kinds of skilled workers. White-collar unions represent office workers. This can make industrial relations complicated. In some firms there are single union agreements. This means that all the workers agree to be a member of the same union. This can help the workers as well as the employers. The workers benefit because all the workers in the firm will speak with one voice and this may add to their strength. For the firm it is easier to negotiate with one union rather than several of them. ACAS Advisory, Conciliation and Arbitration Service This organisation exists to try to settle disputes between workers and employers. First, it will give advice to both the employer and to the union. Second, it will provide conciliation. Third, it provides arbitration: When the two sides cannot reach an agreement, ACAS appoints an arbitrator who hears the arguments and makes a decision. 42

22 Key Word Write in a definition Employment Retention Recruitment Process 1. Employment Process CV Job Analysis Job Description Person Specification Selection Induction Contract of employment On the job training 2. Training Off the job training Job Enrichment Pay Wages 3. Pay Salary Piece Rate Commission Maslow 4. Motivation Theories Herzberg MCgregor Theory X Theory Y Employment Law Trade Union Collective bargaining 5. Employment law and trade unions Trade Union Rep Management Industrial Action Strike Work to rule 43

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