1.4.1 Approaches to Staffing Flashcards
treating staff as an asset
(soft human resource management)
they are an important resource in the business and a source of competitive advantage, treated as individuals, needs are planned for and concentrated on.
involves:
-permanent contracts
-training and development
-salary
-staff loyalty
treating staff as a cost
(hard human resource management)
treating employees as a resource of the business, strong links with corporate business planning- how much does it cost?
involves:
-flexible contracts (zero hours)
-minimal training
-low pay/ hourly pay
-high staff turnover (often leaving)
this focuses on identifying workforce needs of the business and recruit/ manage accordingly
labour turnover
the number of staff leaving a company as a percentage of the number employed
zero-hours contracts
employment contracts that agree employee duties and hourly pay rates, they offer no guarantee of any work in any specific week
features of soft HR
-strategic focus on longer-term workforce planning
-strong and two-way communication
-competitive pay structure
-employees are empowered and encouraged to seek delegation and take responsibility
-flatter structures
-suits democratic leadership style
is soft HR the best approach?
it rewards employee performance and motivates staff more effectively, however, being too soft and adding up all the costs of employee benefits may leave the business at a competitive disadvantage
features of hard HR
-short term changes in employee numbers
-minimal communication from top-down
-minimal pay often enough to recruit and retain enough staff
-little empowerment and delegation
-taller structures
-suits autocratic leadership style
is hard HR the best approach?
it can result in a more cost-efficient workforce where decision-making is quicker from senior management
-but a hard approach might expect to suffer from lots of staff absentees and turnover, having a less successful recruitment
approaches to flexible working
-multi skilling
-part time and temporary
-flexible hours and home working
-outsourcing
multi-skilling
staff are allowed to carry out many tasks, instead of specialising
-enables greater use of job rotation
-common in service industries
-puts a greater requirement on training
advantages of multi-skilled staff
-less staff needed, reduces costs and increases efficiency
-greater job opportunities, collaboration and flexibility- improving staff motivation
-increases productivity from greater utilisation of employees
drawbacks of multi-skilled staff
-potential loss of production as staff switch over to different tasks
-higher training costs so they can acquire a wider range of skills, increasing costs
-workers may not want to learn more skills, if no pay rise
-workers may be over-burdened and overwhelmed
part-time and temporary work
employees are more flexible
-temporary work involves giving short term contracts, and are not renewed if they are no longer needed
-people can fit work around other commitments with part-time, allowing workers to contribute their excellent skills and experience without making a commitment to full-time work
advantages of part-time work
-lower costs
-increases diversity
-introduces flexibility
-people can have other commitments
drawbacks of part-time work
-less loyal and dedicated workers
-scheduling needs to occur- takes time
advantages of temporary work
-reduces hiring risks
-faster hiring process
drawbacks of temporary work
-workers are not loyal to the company
-job insecurity- can easily lose job/ workers may demotivate them
flexible hours and home-working
staff can choose when they work their set number of hours, or can work some form home.
-technology has allowed this to become an option, allowing immediate communications between people in different locations
-may involve zero-hours contracts, no guarantee of work or income.
advantages of flexible hours and home-working
-improves recruitment, increases motivation and reduces labour turnover
-reducing costs and boosts productivity
-helps protect staff from burnout and protects mental health
zero hour contracts can allow businesses to adapt to fluctuating demand while offering workers the ability to choose assignments that suit their personal circumstances
-home working lowers overhead costs for the business
drawbacks of flexible hours and home-working
zero-hour contracts lead to job insecurity, as workers are unsure if they will get any income that week
-harder to keep track of what employees are doing
-communication and collaboration can be more challenging online
(technological errors)
-uncertainty to the business whether they need to hire more staff or cut back
outsourcing
delegating one or more business process to an external provider, who owns, manages and administers the selected processes to an agreed standard
e.g. outsourcing administrative functions
advantages of outsourcing
-allows business to access specialised skills that they might not have closely available to them
-may reduce labour costs (quality lowered?)
drawbacks of outsourcing
-productivity may be lowered by a lack of expertise and worker loyalty to the firm
-loss of control over quality and company reputation
-can create ethical concerns, especially if outsourced abroad- exploiting workers?
why may a business need to dispense staff?
-if members lack the competence to carry out their duties effectively or are too disruptive
-when economic or other factors depress demand, forcing companies to cut costs and lay off workers
-when competition causes the business to lose market share, so management is forced to cut staff
redundancy
employee loses job because the job is no longer required by the business
-requires consultation and redundancy payments
- in the UK 3 months notice is required in large firms
dismissal
the employee is dismissed because of a break of contract or other unacceptable behaviour. performance
-the management must demonstrate fairness in giving warnings if the dismissal is fair
-no payments
trade unions
organisations that employees pay to join in order to gain greater power and security at work
-membership provides greater influence collectively in relations with employers than workers have as separate individuals.
in the UK, what must employers involve employees in?
-proposed redundancy programmes
-when employees are transferred to another employer
-changes to pension arrangements
-proposed changes to working times
how does employee representation arise?
when employees are part of a formal structure for involving them in the decision-making process of a business
how does a formal system of employee representation help?
-makes their views known to management
-strengthens management’s and employees’ understanding of workplace issues and other matters affecting the business
-creates an atmosphere of mutual trust between employees and management-improving workplace relations
what is collective bargaining?
when an employer deals with one or a few representatives for the whole workforce, when discussing problems, negotiating pay rises or changing working conditions
what is individual approach?
employees are treated on an individual basis, people are singled out for different treatment- employer is in a stronger period, there is less threat of strike action
advantages of employee representation
-increased empowerment and motivation of workforce
-employees are more committed to the objectives/ strategy of the business
-better decision making as employee experience and insights are taken into account
-lower risk of industrial disputes
disadvantages of employee representation
-time consuming, slowing down decision making
-conflicts between employer and employee interests may block essential change
-managers may feel their authority is undermined
core workers
employees who are essential to the operations of the business, they are likely to receive attractive salaries and working conditions, with a higher degree of job security
-they are recognised as supporting whatever makes the business unique or distinctive
peripheral workers
workers who are not seen as being central to a firm’s operations, they may carry out necessary tasks, but may only be required on a temporary basis and may be easily replaced
what are the two key functions of a trade union?
to negotiate (on behalf of employees with employer) and represent (protect interest of employees)
