Human Resources. Growth Profit. Survival

Transcription

1 Human Resources Human resources refers to the people working within a business They are vitally important if a business is to achieve it s objectives Without workers a business is unlikely to achieve: Survival Growth Profit Business Studies Online: Slide 1

2 Why Are Workers So Important? If a businesses wishes to achieve it s objectives it is important that the workers: Know the objectives Agree with these aims Work towards these objectives Most businesses objectives will be linked to PRODUCTIVITY This compares the output of a firm to the inputs used In other words it measures the efficiency of a firm That usually means that firms will want as much as possible from their workers Will this fit in with the objectives of the workers? Business Studies Online: Slide 2

3 The UK s s Competitiveness In the UK: Average output per worker is 40% less than in the USA..and 20% less than in Germany This low productivity is caused by: Poor management, that is slow to adapt Government regulations which prevent firms being more productive Business Studies Online: Slide 3

4 Workforce Planning Having the correct number and types of workers is crucial if these people are to help the business achieve it s objectives This requires careful planning, to ensure that: There are enough workers Workers have the required skills A workforce plan will therefore involve Looking at the business objectives Analysing the present workforce Planning for the future requirements in the workforce Developing a strategy to meet these future requirements Business Studies Online: Slide 4

5 The Problems of Workforce Planning Planning ahead in Human Resources is especially important since we must answer the following questions: Do we need to replace people who leave? Why are people leaving? Should we promote internally, or appoint externally? What skills are needed due to changes in technology? How do we obtain these skills? Do we need to retrain workers due to changes in technology? Redundancy and retraining need careful planning since they may cause major problems Business Studies Online: Slide 5

6 Changes in the Workplace One of the main problems of workforce planning is managing change In recent years there have been a number of changes: More people are self employed contracting out is now more common Increased use of temporary and casual workers Gives firms increased flexibility More part time workers Again increased flexibility Increased use of homeworkers Reduces costs and increases work time Note homeworkers are NOT necessarily self employed! Business Studies Online: Slide 6

7 Creating a Workforce Plan A workforce plan must consider the following: Recruitment Induction Training Labour Turnover Dismissal Redundancy Legal Issues We will consider these in turn Business Studies Online: Slide 7

8 Recruitment Once a firm has identified a vacancy, it needs to set about filling it. This is done using the following process: Job Analysis Appoint Job Description Interview Person Specification Short list Applicants Job Advertisement Receive Applications Note that at some point references will be taken but the timing of this varies from firm to firm Business Studies Online: Slide 8

9 Where Should We Advertise? The answer to this lies largely in the type of worker required The options are: Job Centres Internally (Via notice Boards and Journals) Local Newspapers Internet Local Shop Window Trade Journals National Newspapers Business Studies Online: Slide 9

10 An Example Job Advert Given below is an example. It is important to realise that any job advert must abide by the law Job Title Location Brief Description Basic Salary/Wage Information Qualifications/Experience Required Address and/or Contract Details Organisations Identity and Logo Business Studies Online: Slide 10

11 Assessing Applicants There are a number of ways in which applicants can be assessed: Letters of application Application forms Interviews Tests Aptitude IQ Test Personality/Psychometric Test It is likely that a combination of these will be used if not all of them! Business Studies Online: Slide 11

12 Induction of New Workers This is a programme aimed to introduce a new employee to a job It is used to: Familiarise the worker with their job Make the employee as efficient as possible Encourage new workers to be committed to the organisation Induction is a form of Training but for new workers Many firms use Induction Days eg school During this day new workers will have the opportunity to: Ask questions Find out what goes on Meet the people they will be working with Familiarise themselves with the workplace Business Studies Online: Slide 12

13 Training This should be an ongoing process for ALL workers Training may be provided for different reasons: Workers are being asked to take on new roles Workers are being given additional skills to motivate them so that they feel valued Workers are being MULTI SKILLED which may help the firm cover absences Workers are being prepared for promotion Training is expensive, so it is important that it is: Planned to meet the needs of the workers being trained Keeps the workers interested Feedback is used to improve future training There are 2 types of training: On The Job Training Off The Job Training Business Studies Online: Slide 13

14 On-The The-Job Training This is where a worker remains at their usual place of work and learns how to do their job Examples include: Teachers Doctors There are 5 main methods: Observing Mentoring Coaching Secondment Action Learning eg special assignments Business Studies Online: Slide 14

15 Off-The The-Job Training This is where a worker is trained away from their usual workplace This may be at: Training Centre College Off the job training can be carried out internally or externally It is usually used to pass on knowledge rather than job specific content Business Studies Online: Slide 15

16 Ending Employment There are 3 ways in which a business can reduce the number of workers that they have This may be at: Termination by Notice Dismissal Redundancy Business Studies Online: Slide 16

17 Dismissal This is where an employee has their contract ended because of their actions Legitimate reasons for dismissal include: Misconduct eg theft Lack of ability eg unable to do job they are employed for Harassment of other employees Non disclosure of a RELEVANT criminal record It is important for firms to demonstrate that they have done as much as possible to help, eg provide training Otherwise they may be accused of unfair dismissal To prevent before they are dismissed employees will usually receive: 2 verbal warnings 1 written warning Business Studies Online: Slide 17

18 Unfair Dismissal This is where an employee has their contract ended in such a way as to breach employment law Industrial tribunals decide whether dismissal has been unfair Unfair dismissal would be dismissing someone because: They are pregnant They are being discriminated against eg religious beliefs They are a member of a trade union They have a criminal record that is not related to their job If an employee is judged to have been unfairly dismissed they can claim damages Business Studies Online: Slide 18

19 Redundancy This is when: The employer ceases trading The employer changes location There is insufficient work for the employee When this happens the employer must make a redundancy payment (sometimes called severance) The amount usually considers the number of years service and current pay level As such redundancy is an expensive process for employers Many will therefore reduce workers through natural wastage Business Studies Online: Slide 19

20 Termination By Notice This happens is when: A short term contract ends Notice is given by either party that they wish to end the contract The amount of notice required will usually be stipulated in the Contract of Employment Usually this will be quoted in weeks Employers usually have to give longer notice than employees Failure to give sufficient notice can result in financial penalties Business Studies Online: Slide 20

21 Labour Turnover This is the measure of how quickly the staff in the workplace change It is calculated using the formula: Labour Turnover = Number of Employees leaving in a Specific Time Period Average Number of People Employed x 100 Eg a business that has 8 of its 200 workers leave will have a labour turnover of: 8 Labour Turnover = x 100 = 4% 200 Business Studies Online: Slide 21

22 Why Is Labour Turnover Important? High labour turnover can have a negative impact on a firm: Recruiting new workers is expensive New workers need training Productivity will be lower whilst the new worker settles in However, labour turnover can sometimes be positive: New workers may be more enthusiastic Workers with specific skills can be employed New workers may bring new ideas and methods It is therefore important to obtain the right level of labour turnover Business Studies Online: Slide 22