Managing People and Finance. Outcome One. Pupil Notes. National 5

Transcription

1 Managing People and Finance Outcome One Pupil Notes National 5

2 The Human Resources Department is the department that deals with all aspects of employee relations on behalf of the owners. The HR department deals with hiring, firing, training and motivating staff and working closely with Trade Unions to ensure good working relationships. Recruitment Process Job Analysis Each time a job needs to be filled, the company has to analyse what the job involves. A Job Analysis will identify: Tasks to be done Technology needed Knowledge and skills required Inter personal skills Level of responsibility Job Specification This is completed once the Job Analysis has been done. This document contains: Job title Department Position in business Responsibilities Main duties Working conditions A Job Specification fulfils 2 important functions: 1. Shows what the job will involve and 2. Helps identify the type of workers required Person Specification This document will identify the personal qualities of the person needed to do the job. It will include things like: Communications skills Level of education required Work experience Intelligence Physical skills Language/numeracy skills IT skills Personal qualities ie leadership skills, sociable, ability to cope with pressure etc The above documents will be used to help draw up the advert in order to attract the right person.

3 Advertise the Job This can be done in: Newspapers (local or national) Radio TV or Internet Recruitment Agencies Job Centres Staff Notice Boards/Intranet The Advert should include: Skills required Wage or salary Qualifications needed Experience Company perks eg health insurance, company car etc How to apply in writing/cv/telephone/application form Selection Process Businesses want to appoint the best people, so they must look closely at how they select/recruit staff. A good selection process will make sure that those responsible for recruitment have as much information as possible. Application Form This must ask relevant questions. It is the answers to these which will help the company select the people for interview (draw up a short leet). Nowadays many companies ask candidates to apply online. This shows that the candidate is able to use IT. It is easier than handwriting and an acknowledgement can be returned quickly via . For the applicant it is usually easier to complete and quicker to send. CV (Curriculum Vitae) this provides a short summary on the applicant ie personal details, education and work experience, interest and hobbies. Interviews A good interview may be asked to complete a series of tests, either psychological to see what kind of personality they have or practical, to test their skills levels eg have them demonstrate their skill teach a class.

4 Contract of Employment - Within 13 weeks of starting work, a Contract of Employment, must be issued which include: Job title/description Hours of work Rate and method of pay Holiday arrangements Pension scheme Retaining and Motivating Staff Motivation means having a certain willingness/desire to work it comes from the enjoyment of the work and/or the desire to achieve certain goals. It can also come from the successful completion of a task or project. Improving motivation should lead to increased productivity and therefore is a crucial part of a manager s work. People can find motivation from different sources it depends on the individual. Organisations need to be aware of the fact that non-monetary factors motivate employees and that all jobs must take this into account. A failure to do this may result in absenteeism and poor quality of work. There are a range of incentives which can be used by businesses to increase motivation: Non-financial Incentives Job enrichment making jobs more interesting Job enlargement widening the scope of jobs Job rotation increasing variety and flexibility by moving workers between jobs Empowerment increasing workers responsibility by giving them decision making power Team working meets psycho-social needs Quality circles - encourages involvement in decision making Financial Incentives Individual and group bonus schemes Performance related pay Commission on sales Profit sharing schemes Employee share ownership Fringe benefits (perks)

5 Benefits of a well-motivated Staff Each time an employee leaves, a new person has to be taken on. This means time and money has to be spent on the advertising and recruitment and then, once the employee has been selected, training. All of this is costly to an organisation. Businesses take the view that if they have a motivated staff: Turnover will be significantly reduced Lower staff turnover (this can save money on recruitment and training) Staff morale will be high (fewer disputes with unions) Lower absenteeism Productivity will increase Good reputation SUCCESS!! Training Even though a strict recruitment process may be in place to try and get the right person for the job, training will also be very important to both new and existing staff. The HR Department are responsible for this. The Training Method use will vary depending on the needs of the business, but may take the following format: On-the-job Training This takes place in the work place and may be delivered by an external trainer or a colleague. Off-the-job Training this occurs outside the workplace at a college or training centre. Apprenticeship occurs mostly in the workplace but may require some external training (one day a week at college). Induction given when someone starts a new job. Helps a new employee settle in. Retraining training for a completely new occupation. Upgrading trained in new skills for an existing job, eg new software

6 Benefits of Training Ultimately firms may take the view that although training may be costly in terms of time and money, the benefits through increased confidence and competence of staff far outweigh these costs. The type of training chosen by an organisation will depend on budget available. Internal training tends to be less expensive although may be disruptive to the everyday work of the business. Internal training also allows training to be tailored to needs of trainee External training is much more expensive, whether using an outside training centre or bringing in a trainer from outside. However, many employees may relax more if they are not in their place of work being interrupted by other colleagues. Smaller firms may use a more cascading type of training. Staff Appraisal This is a technique used by businesses to monitor the performance of their staff. It takes the form of a 2-way discussion between employee and line manager and is usually held once a year. Used properly, it can be effective in encouraging and motivating staff. Informal Appraisal this is where judgements made about the ability of the worker are based on the manager s opinions or feelings on how well the worker is doing. Informal appraisals are very subjective and are seldom discussed with the employee. Formal Appraisal the worker s performance is based on actual evidence and is used to identify: Employees ready for promotion Assess recruitment and selection procedures Increase motivation Identify training needs Identify employees with regards to revised pay/conditions

7 With Formal Appraisal targets are normally set for staff. Targets set must be SMART: Specific Measurable Agreed Realistic Timely Targets may be set for things like attendance at work, quantity and quality of work, staff relationships etc. The success of Appraisals will depend on how fair and accurate they are perceived to be. This depends on: o Organisational culture o Contents of Appraisal Form o Rating scale used o Interview procedures/styles Advantages of Formal Appraisal Increases motivation of staff Encourages employees to build on strengths Identifies training needs Helps identify staff for promotion Acts as a check on recruitment process Disadvantages of Formal Appraisal Staff feel threatened by it Increases workload Expensive to train staff on appraisal process Takes time to complete interviews Negative feedback may be discouraging Employee Relations This is the relationship between employers and employees. This can be a complex relationship and must be clearly defined. Both sides must know and understand what is expected of them this is not always easy as external factors such as Legislation affect it.

8 Legislation Legislation Employment Act 1980 National Minimum Wage Act The Equality Act Health and Safety at Work Act Data Protection Act Freedom of Information Act Employee Rights Covers areas such as: right to be a union member, notice of redundancy, redundancy pay, sick pay, unfair dismissal Right to receive minimum wage as set out by the Government Not to be discriminated against on grounds of race/colour/gender Entitlement to clean and safe working environment Governs how personal information is stored, used, destroyed Gives individuals right of access to information stored about them Industrial Relations Employers have the right not to recognise a trade union within their business but most employees will be members of a Trade Union. EIS UNISON TGWU Industrial Action This membership gives the employees greater bargaining power when in dispute with management. Collective Bargaining - Where CB fails and a solution cannot be agreed, what industrial action might trade union members take? Work to rule only doing what is stated on your contract and nothing else Strike withdrawal of labour Overtime ban only working normal hours Picketing gathering outside place of work and trying to persuade other workers to support Sit-in occupying business premises

9 Problems with Industrial Action Lost sales and impact on business Damage to business reputation Employer/employee relations become strained Benefits of Industrial Action Workers can voice grievances Put procedure in place to avoid future conflict Management can include consultation and worker participation in the future Management Behaviour How managers manage will have a bearing on the relations between employers and employees. Do they encourage teamwork, do they use quality circles and is there effective communication? Motivation of Employees If employees are well-motivated, they will stay longer and work harder. To increase motivation management could: Introduce bonus systems Improve working conditions Introduce staff training Encourage teamwork Offer company perks Give staff more responsibility for planning and carrying out their work. Above all, management must maintain effective communication. This can be done using committee meetings, staff notices, staff meetings and written and face-to-face. Keeping staff informed and encouraging discussion and participation will go a long way to keeping the working relationship harmonious!