BM Unit 2 - LO4 1

Higher Business Management

Unit 2Learning Outcome 4

Human Resource Management

BM Unit 2 - LO4 2

The Role of People in Organisations

People are probably the most valuable “resource” that an organisation possesses.

In the same way that machinery must be maintained, staff have to be looked after in such a way that they can produce their best effort.

This involves their welfare, training, safety and motivation.

A happy workforce is likely to be an efficient workforce.

BM Unit 2 - LO4 3

Changing Patterns of Employment

Structural changes - movement away from primary and secondary industries to tertiary sector - provision of services

Decline in full-time employment Increase in part-time and short-term

contracts Increase in home working and tele-working Greater flexibility of the workforce Many more women in employment Increase in self-employment

BM Unit 2 - LO4 4

The Modern Workforce

The Core Workers Essential workers - managers, skilled

workers - permanent and well-paid

The Contractual Fringe Sub-contractors - suppliers of

components or services - cheaper (no pensions, holidays etc)

The Flexible Labour Force Part-time, temporary - help core workers

at peak times - low rates of pay

BM Unit 2 - LO4 5

The New Employment Pattern

Advantages Core employees can

focus on core activities only

Saves on salaries and space

No need to pay for pensions, holidays or redundancy

Reduced NI contributions

Allows flexibility and can respond quickly to change

Disadvantages Frequent recruitment

and selection Occasional staff

shortages Less commitment

from staff Increased need for

training due to high staff turnover

Lack of continuity of staff - customers may become unhappy

BM Unit 2 - LO4 6

HRM Activities

Preparing job descriptions Recruiting and selecting new staff Training - induction and skills Performance appraisal Planning future staff requirements

(coping with change) Handling grievances Safety at work (Health & Safety) Complying with the law - equal

opportunities, discrimination, etc

BM Unit 2 - LO4 7

HRM Roles

Executive - experts in the HRM area - policies developed in line with legal requirements

Audit - policies properly implemented

Facilitator - training of staff to respond to HRM issues

Consultancy - advice and guidance to managers on HRM problems

Service - providing up-to-date information on legislation

BM Unit 2 - LO4 8

HRM - Strategic Level

Formulate personnel policies for the organisation as a whole

Devise guidelines for implementation of policies

Working towards corporate goals - defining corporate culture

BM Unit 2 - LO4 9

HRM - Tactical Level

Human Resource planning

Recruitment of specialised staff

Staff training and development

Promoting effective industrial relations

BM Unit 2 - LO4 10

HRM - Operational Level

Identifying training needs

Encourage staff to accept training

Arrange the training

Deal with day-to-day issues such as absenteeism, grievances, welfare, etc

BM Unit 2 - LO4 11

HRM Elements

Human Resource Planning Recruitment and Selection Training and Development Employee Relations Development and Monitoring of HR

Policies and Procedures Routine record-keeping of staff details

- names, addresses, courses completed, etc

BM Unit 2 - LO4 12

Recruitment and Selection Terminology

Job analysis Job description/specification Person specification Internal/external recruitment Application forms/CVs Selection Interviews Psychological tests Aptitude tests

BM Unit 2 - LO4 13

Training and Development Terminology

Flexibility of staff (multi-skilling) Coping with change Job satisfaction Staff motivation Induction training On and off-the-job training Retraining Skills upgrading Appraisal Health and Safety

BM Unit 2 - LO4 14

Employee Relations Terminology

Trade Unions Collective bargaining Procedures – discipline, grievances Terms and conditions Worker participation ACAS Employers’ Associations (CBI) Employee Legislation Health and Safety