Approaches to staffing

Question 1

Staff as an asset (SOFT HRM)

Answer 1

• treats employees as the most important resource in the business and a source of competitive advantage
• employees are treated as individuals and their need are planned accordingly

Question 2

Staff as a cost (HARD HRM)

Answer 2

• treats employees simply as a resource of the business
• strong link with corporate business planning- what resources do we need, how do we get them and how much will they cost

Question 3

Key features of SOFT HRM

focus, strategic focus, communication, pay, delegation, organisational structure, leadership style

Answer 3

• focus: concentrate on the needs of employees- their roles, rewards, motivation
• strategic focus on longer term workforce planning
• strong and regular two way communication
• competitive pay structure
• employees are empowered and encouraged to seek delegation and take responsibility
• flatter organisational structures
• suits democratic leadership style

Question 4

Key features of HARD HRM

focus, strategic focus, communication, pay, delegation, organisational structure, leadership style

Answer 4

• focus: identify workforce needs of the business and recruit and manage
  accordingly (hiring, moving, firing)
• short term changes in employee numbers
• minimal communication, from the top down
• pay- enough to recruit and retain enough staff
• little empowerment or delegation
• talked organisational structures
• suits leadership style

Question 5

SOFT HRM- best approach?

Answer 5

• seen as an approach that rewards employee performance and motivated staff more effectively
• however, be too “soft” and when all the employee benefits are added up, the cost of the workforce may leave a business at a competitive advantage

Question 6

HARD HRM- is it the best approach?

Answer 6

• might result in a more cost- effective workforce where decision making is quicker and focused on senior managers
• but a genuinely “hard” approach might expect to suffer from higher absenteeism and staff turnover and less successful recruitment

Question 7

What is multiskilling?

Answer 7

Multiskilling arises where staff are allowed to carry out a variety of tasks rather than specialise

Question 8

Key points about multiskilling

Answer 8

• multiskilling enables greater use of job rotation (with subsequent benefits for motivation)
• common in service industries- e.g hotel, retail
• puts a grater requirement on training

Question 9

What is outsourcing?

Answer 9

Involves delegating one or more business processes to an external provider, who then owns, manages and administers the selected processes to an agreed standard

Question 10

What type of business has outsourcing become common for?

Answer 10

Outsourcing has become increasingly common for more complex businesses that want to focus on their core activities.
Also common to find smaller businesses outsourcing administrative functions

Question 11

What happens when a business decides it needs or wants to remove employees from their employment?

Answer 11

Dismissal

Redundancy

Question 12

What is dismissal?

Answer 12

• employee dismissed because of break of contract or other unacceptable behaviour or performance
• may be considered “unfair” and subject to legal claim by employee

Question 13

What is redundancy?

Answer 13

• employee loses job because job is no longer required by the business
• requires consultation and redundancy payments payable

Question 14

What is employee representation?

Answer 14

Arises when employees are part of a formal structure for involving them in decision making

Question 15

A formal system of employee representation helps:

Answer 15

• make employees’ views known to management
• strengthen both management’s and employees’ understanding of workplace issues and other matters affecting the business
• create an atmosphere of mutual trust between employees and management and therefore improve workplace relations

Question 16

Advantages of employee represenation

Answer 16

• increase empowerment and motivation of the workforce
• employees become more committed to the objectives and strategy of the business
• better decision making because employee experience and insights taken into account
• lower risk of industrial disputes

Question 17

Disadvantages of employee representation

Answer 17

• time consuming- potentially slows decision making
• conflicts between employer and employee interests may be a block to essential change
• managers feel their authority is being undermined

Question 18

What is a trade union?

Answer 18

An organised association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests

Question 19

Role of trade unions

Answer 19

• protect and improve the real incomes of their members
• provide or improve job security
• protect workers against unfair dismissal and other issues relating to employment legislation
• lobby for better working conditions
• offer a range of other work related services including support for people claiming compensation for injuries sustained in a job

Question 20

Two key functions of a trade union are to:

Answer 20

Represent- represent and protect interest of employees

Negotiate- negotiate on behalf of employees with employer