1.4.1 Approaches To Staffing Flashcards
Dismissal
Employee dismissed because of break of contract or other unacceptable behaviour or performance.
- Worker may be dismissed or fired from a job for: Absenteeism, Gross misconduct (showing up drink), Theft of company money or property.
- Worker is not entitled to a payout from the business if dismissed.
Redundancy
Employee looses job because job is no longer required by the business.
Requires consultation and redundancy payments payable.
- Worker’s job no longer exists possibly due to lack of business or restructuring.
- Redundancy is sometimes voluntary - staff close to retirement take voluntary redundancy to gain a payout.
- Compulsory redundancy is where a member of staff must leave a job.
Industrial action
Action taken by employees of a company as a protest.
Methods of industrial action?
- Work-to-rule - Employees follow the strict conditions of their employment contract - no voluntary overtime, no participation in supporting activities.
- Overtime ban.
- Go slow - Employees work at the slowest or least-productive pace that is allowable under their employment contracts.
- Strike.
Damage for the business of industrial action
- Lost sales and profits from lost output.
- Damage to customer satisfaction.
- An internal distraction for management and the business.
- Damaged relationship with staff may adversely affect motivation and productivity.
Damage for the employee of industrial action
- Lost pay.
- Potential loss of jobs if industrial action results in action to cut costs.
- Disruption and potential tension within working environment following industrial action.
Avoiding industrial disputes?
- Regular consultations with a trade union - pick up problems before they escalate.
- Staff forum and joint working group to pass on information and collect ideas from workers.
- An employee consultative body to discuss major issues before they arise.
- Team and group meetings and feedback sessions.
Work council
A group of employees representing a workforce in discussions with their employers.
Trade union
An organisation of workers established to protect and improve economic position and working conditions of its members.
Main functions:
1. Represent.
2. Negotiate.
Employee-employer relationships: Individual approach
Worker and manager sit face to face to discuss terms and conditions of the workers contract.
Employee-employer relationships: Collective bargaining
A representative of all workers meet with the manager to discuss terms and conditions of employment.
Staff as a cost
Treat employees simply as a resource of the business.
- Identify workforce needs of the business and recruit and manage accordingly.
- Short term changes to employee numbers.
- Minimal communication.
- Enough pay to recruit and retain staff (minimum wage).
- Little empowerment or delegation.
- Taller organisational structures.
- Strict autocratic leadership style.
Staff as an asset
Treat employees as the most important resource in the business and a source of competitive advantage. Employees are treated as individuals and their needs are planned accordingly.
- Strategic focus on long-term planning of workforce needs.
- Regular communication.
- Competitive pay with performance related rewards.
- Employees are empowered and encouraged to seek delegation and take responsibility.
- Suits democratic leadership style.
- Appraisals to focus on identify and addressing training and employee development needs.
Benefits and drawbacks of staff as a cost
+ Cost-effective workforce.
+ Quicker decision making focused on senior manager.
- High absenteeism and staff turnover.
- Less successful recruitment.
Benefits and drawbacks of staff as an asset
+ Rewards employee performance and motivates staff more effectively.
- Cost of workforce may leave business at a a competitive disadvantage.
Flexible working
Working arrangements where there are a variety of options offered to employees in terms of working time, location and the pattern of working.
Types of flexible working
- Part time.
- Homeworking.
- Outsourcing.
- Flexible hours.
- Multi-skilling.
Benefits of flexible workforce
+ Cost savings –> less office space needed and offering part time to cover busy periods.
+ Multi-skilling –> less staff needed at some times as one person can take on many roles.
+ Part time or job share can reduce redundancies.
+ Better morale and productivity.
+ Access to a larger poole of workers making it easier to recruit.
+ Higher staff retention.
+ Less travel time to and from work, increasing productivity.
Drawbacks of flexible working
- Admin work involved in setting up and running flexible working.
- Potential loss of customers if key employees reduce working hours.
- Lower employee productivity.
- Inability to substitute for certain skills if certain employees are missing.
- Managers may find it difficult to manage or administer flexibility.
Multi-skilling
Where staff are allowed to carry out a variety of tasks rather than specialise.
+ Enables greater use of job rotation –> benefits motivation.
- Training costs.
Temporary staff
Where staff are on a contract with a fixed length e.g. project work, contractors or covering sick/maternity leave.
+ Often have less rights such as sick leave, and hiring and firing is easier so could be cheaper.
- Staff may not be fully committed.
- Staff may not understand the business aims and culture.
Outsourcing
Delegating one or more business processes to an external provider, who then owns, manages and administers the selected process to an agreed standards.
+ Enables business to focus on its primary function.
+ A contractor may have more expertise and greater economies of scale in function.
- Outsourced business don’t share companies culture, vision and goals.
Difference between outsourcing and offshoring
Offshoring = Work is done overseas by your own business.
Outsourcing = Someone else does the work for us.
