1.4 - Managing People

Question 1

Human Resources

Answer 1

The staff within an organisation. The way they are managed will depend on the nature of the organisation, the complexity of the tasks and the individual workers personal styles.

Question 2

Hard HRM

Answer 2

E.g., Amazon/ Sports Direct.
- The workforce is treated as a cost.
- A resource that must be managed in order for the business to control costs and output.

Question 3

Features of hard HRM

Answer 3

• Little promotion/ training.
• Minimum holidays/ breaks.
• Employees often on fixed term (certain time, e.g., 1 yr or 6 months) contracts and minimum wage.
• Strong, regular 2-way communication.
• Little empowerment (thinking for yourself).
• Leadership likely autocratic (have high level of control).
• Temporary contracts. Minimum wage.
• Zero hour contracts, no bonuses.

Question 4

Strengths of hard HRM

Answer 4

• Close monitoring - may lead to greater efficiency (labour productivity).
• Less mistakes (made).
• Decreased costs (minimum wage, no fringe benefits).
• Can have flexibility in your workforce (numbers of staff).

Question 5

Weaknesses of hard HRM

Answer 5

• Potentially have a bad reputation - bad publicity, harder to find new staff.
• Staff feel undervalued and demotivated, fearful.
• Demotivated - decreased productivity, decreased quality.
• Increased turnover (amount of people leaving).

Question 6

Soft HRM

Answer 6

E.g., Google.
The workforce is treated as an asset to the business that can contribute (ideas/ make decisions) and help achieve its objectives.

Question 7

Features of soft HRM

Answer 7

• More job security.
• Positive/ safe working environment.
• Opportunities for staff development through training and internal promotion.
• Competitive salary + other benefits (e.g., free meals, company car).
• Leadership likely democratic - consider staff opinions.
• Flexibility - in tasks/ hours worked.

Question 8

Strengths of soft HRM

Answer 8

• Staff retention - i.e. staff want to stay at the firm.
• Lower absence - want to work and be present in work (less sick days).
• Increased motivation.

Question 9

Weaknesses of soft HRM

Answer 9

• Expensive to train staff and can take time to see the results - increased costs.
• Some staff may abuse the trust or not be capable of additional responsibilities - more mistakes/ lower quality.

Question 10

Flexible workforce

Answer 10

Being able to match workforce skills, size and location to business needs in order for operations to run smoothly.

Question 11

Multi-skilling

Answer 11

The practice of training employees so that they have the ability to do a range of tasks, or of recruiting employees who have several skills.
(Flexible working method).

Question 12

Multi-skilling advantages

Answer 12

For employer:
- Can lead to increase in staff retention as workers may be more motivated (less bored).
- Can help maintain productivity as staff can work in different areas of the business (cover absences).

For employee:
- Can increase motivation as workers get to experience different parts of the business.
- Increased job security as employees can work in different areas of the business - more valuable, harder to replace.

Question 13

Multi-skilling disadvantages

Answer 13

For employer:
- Staff may become less specialised in one particular area as they are working in different parts of the firm.
- Productivity may dip when workers move from one area to another.
- Increased training costs.

For employee:
- May be required to work in areas they dislike, decreased motivation.
- Staff become less specialised in one particular area as they are working in different parts of the business.

Question 14

Part-time employees

Answer 14

They’re contracted to work less hours than full time employees (e.g., 3 days/ 12 hours).
Hours can be increased if there is an increase in demand and if firm requires more workers.
(Flexible working method).

Question 15

Part-time advantages

Answer 15

For employer:
- Can increase flexibility within the business as employees can be employed for certain hours/ specific needs.
- Cheaper than employing full-time staff.

For employee:
- Can balance other commitments, e.g., family.
- Can be less stressful than working full-time.

Question 16

Part-time disadvantages

Answer 16

For employer:
- May not be available for unexpected increases in demand - not legally obliged to work more hours.
- May be less committed to the business than full-time staff - not there are much, not main priority.

For employee:
- Less pay than working full-time.
- May miss out on opportunities that are only available to full-time employees - e.g., promotion, fringe benefits, social side.

Question 17

Temporary employees

Answer 17

A worker who is contracted to work for a specified time (e.g., 6 months).
Temporary workers can be full time or part time.
They have less job security than permanent employees.
Often agency workers - temping agency, e.g., Office angels.
(Flexible working method).

Question 18

Temporary employees advantages

Answer 18

• Cheaper - only pay them when needed.
• Helps deal with fluctuations in demand.
• Bring in specialists to help with projects/ problems.

Question 19

Temporary employees disadvantages

Answer 19

• Not committed.
• Less experienced/ skilled.
• Might require significant training, then leave.
• Fee paid to the agency.

Question 20

Flexible hours

Answer 20

Flexible hours - Give some degree of autonomy to the employees to choose their own hours of work, normally within certain boundaries, e.g., core hours, 11am - 3pm.
(Flexible working method - flexible hours and homeworking).

Question 21

Homeworking

Answer 21

Homeworking - The ability to work from home rather than travelling into the workplace.
(Flexible working method - flexible hours and homeworking).

Question 22

Flexible hours and homeworking impacts

Answer 22

• Increases flexibility to the employee.
• Reduces costs to the employer e.g., less office space and other overheads (e.g., rents) means lower costs.
• Productivity can increase when away from workplace distractions.
• Much easier due to technological advances.

Question 23

Outsourcing

Answer 23

Business tasks or processes are undertaken by an external provider. Inputs are brought in from another business that may be local or overseas.
E.g., marketing can be done by a marketing/ advertising firm. Finances - hire an accounting firm.

Question 24

Outsourcing positives

Answer 24

• Provides flexibility in supply - could outsource your production.
• Can increase capacity without high capital expenditures - no need to spend on factories, machines.
• A business can buy in expertise - if you lack certain skills, you can use a specialist - increase quality.

Question 25

Outsourcing negatives

Answer 25

- Quality must be maintained - especially with production of your products. - Loss of control. - Sub-contractor will also be wanting to make a profit (therefore increased costs) - S/T solution?

Question 26

Dismissal

Answer 26

When an employee's contract is terminated due to a breach of the terms of that contract by the employee. E.g., incompetence, disciplinary (theft/ behavior). 'Fire someone'. As the position still exists, the business will recruit again.

Question 27

Unfair dismissal

Answer 27

When an employee's contract is terminated but the reason is seen as unfair in the eyes of the law.

Question 28

Redundancy

Answer 28

A form of dismissal when an employee's contract of employment is terminated because the job no longer exists. May occur as a result of a change in the business needs, including: - Business closure (maybe due to a recession). - Restructuring (merger/ takeover - 2 businesses become 1 - get rid of duplicate roles). - Relocation - 'offshore' production. - New technology - automation - machines to replace people. - Financial difficulties - need to cut costs. Usually requires a payment to staff with the amount varying depending on the length of service, S/T = cost, L/T = saving.

Question 29

Employer/ employee relations

Answer 29

The defining features of how employers and employees interact with each other on a day to day basis.

Question 30

Employee representation

Answer 30

The systems put in place to aid communication between employer and employee. Gives a voice to employees. Enables one to one discussion, e.g., through the HR department.

Question 31

Individual approach

Answer 31

Each employee negotiates individually with management for their own interest (e.g., pay, promotion, conditions). Decisions made on a one to one basis, rather than a whole workforce.

Question 32

Advantages of the individual approach

Answer 32

- Individuals may be better equipped to "fight their own corner" - they know what they want. - Managers can judge each case on individual merit - know experience + skills.

Question 33

Disadvantages of the individual approach

Answer 33

- Could create a 'divide' among staff if there is inequality, e.g., pay.

Question 34

Trade unions

Answer 34

Negociate on behalf of groups of employees. Represent memebers through collective bargaining (negociating). Partnership approach i.e., unions should be see to be working with the employers to achieve industrial democracy. National organisations with a remit to protect its members and imporve their economic and working conditions. Unions work to avoid industrial action and solve potential disputes before they happen.

Question 35

Industrial disputes

Answer 35

Exists when there is a disagreement between the employer and the employee or employee representative. Better to avoid disputes before they become troublesome than try to resolve them later.

Question 36

Industrial action

Answer 36

When the employees take sanctions to try and impose pressure on the employer. E.g., - Work to rule - employees do bare minimum in their contract, i.e., no overtime. - Lobbying - protests/ demontsrations/ petitions. - Last resort - strike - don't attend work on set days.

Question 37

Work council

Answer 37

A group made up of managers and representative employees who meet regularly to discuss issues relating to the business and specifically issues affecting the workforce.

Question 38

Advantages of employee representation (unions/ work councils)

Answer 38

- Make employees views known to management. - Increased motivation and empowerment. - Increased commitment to business objectives and stratergies. - Better decision-making - i.e., experiences and insights considered. - Decreased industrial disputes risk.

Question 39

Disadvantages of employee representation (unions/ work councils)

Answer 39

- Time - consuming. - Employer/ee conflicts - resistance to necessary business changes. - Managers feel authority is undermined.

Question 40

Job description - check.

Answer 40

A document containing the tasks, responsibilities the appointed person will be expected to carry out. May also states other details, e.g., the job title, location and who they'll report to. Explains job to candidates, helps recruitment process by providing a clear guide to all involved about the job requirements. Important because; if staff are unhappy in the role, they will likely leave - cost to bus., will have to go through whole process again. Also, don't want unsuitable applicants to apply. Communicate expectations about performance to ensure effectiveness in the job. Suggested to focus on the work they'll need to achieve, instead of skills and experience - more likely to choose someone with the right abilities then.

Question 41

Person specification - check

Answer 41

Document providing details of ideal candidate. Lists essential and desirable characteristics of that person. Includes, qualifications, experience, interests, personality and general intelegence, contradicators (things that make someone unsuitable). Applicants judged against these factors at interview.

Question 42

Internal recruitment

Answer 42

Filling a job vacancy by selecting a person who is already employed within the firm, e.g., through promotion.

Question 43

Advantages of internal recruitment

Answer 43

- Employee's skills and abilities are already known and so there is less risk of employing the wrong person. - Quicker and less expensive process than external recruitment. - Showing there are internal promotional opportunities is motivating for the whole workforce. - Shorter induction period required - employees already know the bus.

Question 44

Disadvantages of internal recruitment

Answer 44

- Internal promotion leaves another vacancy to be filled further down heirarchy. - Can cause resentment amongst employees not selected.

Question 45

External recruitment

Answer 45

Filling a job vacancy by advertising outside the firm, e.g., headhunting, personal recommendation, job advertisment.

Question 46

Advantages of external recruitment

Answer 46

- 'Larger pool' of well-qualified applicants - can recruit nationally/ internationally. - Helps bring in new, fresh ideas. - Helps a firm uderstand how other firms operate.

Question 47

Disadvantages of external recruitment

Answer 47

- Can be a long and expensive process - repeat adverts. - External recruits need a longer imduction process. - Even after selection process, managers won't know the person as well as an internal person.

Question 48

Job adverts

Answer 48

Should include: - Requirements of the job. - Necessary and desireable criteria for job applicants (to limit number of appropriate applications recieved) - saves time/ money - managers. - The organisation's activites. - Job location. - Freward package - salary/ company car, etc. - Job tenure (e.g., contract length) - permanent/ temporary, etc. - Details about applying and deadline.

Question 49

Application forms

Answer 49

Allow info to be presented in a consistent format, making it easier to collect info from job applicants in a systematic way. A poorly designed application form can mean applications from good candidates are overlooked or that candidates are put off applying.