HR

Question 1

Workforce Planning

Answer 1

If an organisation doesn’t have the right number of staff with the right skills and experience, it is unlikely to be successful.

Workforce planning is the process of identifying future workforce requirements and putting systems in place, for example training or recruitment, to ensure that staffing needs are met.

Such planning is required because staff leave to work elsewhere and promoted staff will need to be replaced. There will also be times when changes in the market or the economy mean the business has to recruit more staff, or lay staff off.

Question 2

Benefits of workforce planning:

Answer 2

Encourages managers to prepare and plan for changes rather than simply react to them.
Gaps in the current staffing levels are identified.
Avoids under staffing – ensures sufficient workers to carry out the different functions of the business.
Avoids overstaffing which is costly to the business.
Enables businesses to prepare for periods of significant change, eg, restructuring, technological change, growth, etc.
Strategies can be put in place in order to fill gaps in staffing, eg a recruitment programme.

Question 3

Stages of the recruitment process

Answer 3

Identifying a vacancy
Carrying out job analysis
Creating a job description
Creating a person specification
Advertising the job
Reviewing application forms and CVs
Creating a shortlist
Interviewing candidates
Making a selection
Appointing

Question 4

Job Analysis

Answer 4

When a vacancy arises the tasks and skills required for the position are identified. This is known as a job analysis. Job analysis can help to decide whether a vacancy needs to be filled or whether the tasks and duties can be redistributed to other staff. It is used to help write the job description and person specification.

Question 5

Job Description

Answer 5

A job description is a document that states the tasks and responsibilities of the job. It contains information on duties, pay, location, hours of work and conditions.

Question 6

Person Specification

Answer 6

A person specification is a document that states the skills and qualifications needed to do the job. These skills and qualities can be listed as either essential or desirable. This will provide a series of measures against which the organisation can judge people who apply for the job.

Question 7

Application Form

Answer 7

Application forms consist of pre-prepared questions set by the organisation. This allows an organisation to easily compare potential candidates. It also ensures the organisations get all the information they require from the candidate. Application forms are increasingly carried out online.

Question 8

Curriculum Vitae

Answer 8

Curriculum vitae (CV) is a summary of the summary of the person’s education, qualifications and previous employment history.

Question 9

Selection

Answer 9

Selection is the process of ensuring the best or most suitable candidate is chosen to work for an organisation.

Question 10

Internal Recruitment

Answer 10

Advertisement takes place inside the business.
Advertising is less expensive than for external recruitment.
Can motivate employees as they have a chance to be promoted.
The employee is a known quantity so less of a risk.
The routine is unlikely to change.
However, draws from a narrow pool so may not result in the best selection.
Relationships can become difficult if one person is promoted over another.

Question 11

External Recruitment

Answer 11

Fresh thinking, new ideas/skills are brought into the business.
Wider pool of talent to choose from.
There is no gap in staffing – ie, which might occur if promoting from within.
It can avoid difficulties arising from one existing staff member being promoted over another.
However, existing staff may be de-motivated because they feel overlooked for promotion.
More risky appointment since the person is unknown to the organisation.
External advertising is always more expensive.
It can take more time to recruit externally leading to gaps in staffing, and lost production time.
It may take time for the new person be trained and to get up to speed.

Question 12

Application Form

Answer 12

Application forms consist of pre-prepared questions set by the organisation.
Allows an organisation to easily compare potential candidates.
Ensures the organisations get all the information they require from the candidate.
Application forms are increasingly carried out digitally online.

Question 13

Curriculum Vitae

Answer 13

Curriculum vitae (CV) is a summary of a candidate’s education, qualifications and previous employment history.
A CV can be compared to the person specification to determine if the candidate has the adequate skills and experience for the position.

Question 14

Selection Interview

Answer 14

Interviews can be face to face, panel, by telephone and online through Skype or via social media platforms.
In-depth response can be gained from candidates who can say more about their skills and experience than is on their application form.
Can help to indicate a candidate’s communication skills, appearance, personality, etc.

Question 15

Attainment Tests

Answer 15

Can measure the knowledge and skills of a candidate required for the position.
Performance of candidates can be directly compared.

Question 16

Assessment Centres

Answer 16

Candidates attend an assessment centre where testing provides extra information on their suitability for the job through practical assessments.
Testing allows an organisation to see how a candidate copes under pressure, how they work as part of a team, etc.
The aim is to find out about a candidate’s true personality and abilities, not just what they say about themselves.
Types of test include aptitude tests, IQ tests, psychometric tests, physical fitness and health tests.
Usually run and assessed by specialist staff.

Question 17

Induction training

Answer 17

Offered to new employees when they join an organisation.
Involves a tour of the premises and an introduction to colleagues.
Employees learn about company policies such absence procedures and health and safety.
Basic training on any duties/skills required to do the job.

Question 18

Apprenticeships

Answer 18

On-the-job training that combines learning practical skills with theoretical knowledge.
Apprentices are paid as they train.
Apprentices gain new/valuable skills specific to the job role.
Professional qualifications are gained while working and learning on-the job.
Apprentices can gain experience of different areas/departments of the business.
Usually involves spending days at college.
Employees are supported during training.
Less costly than outsourcing the training.
Involves supervision from an experienced member of staff.
Time consuming method of training.
Inexperienced apprentices may make mistakes.
Graduate might leave once the apprenticeship is complete.

Question 19

Graduate Training Schemes

Answer 19

Training programmes offered by companies to university graduates.
Training schemes are usually 1 to 2 years.
Graduates experience different aspects of the business.
Business gains new people with fresh ideas and up-to-date theoretical knowledge.
Graduates gain the necessary skills required to work in the organisation.
Graduates can often be fast tracked for promotion due to their qualifications.
However, there is no guarantee of a job at the end.
Time consuming method of training.
Graduate might leave once the apprenticeship is complete.

Question 20

Corporate Training Schemes

Answer 20

Training programmes offered by an organisation to its employees.
Provides opportunities for employees to develop their skills and expertise.
Ensures that employees are continuously learning so the business is improving.
Can be delivered internally, or by external training providers, or through college.
Training can increase motivation, job satisfaction and commitment to the organisation.
However, can be a time consuming method of training.
Can be costly if external trainers are heavily used, or if days are spent at college.

Question 21

Work-based Qualifications

Answer 21

Formal qualifications that are gained while working.
Employees learn the skills and knowledge required to gain the qualification while working.
Training is designed to suit the firm’s needs.
Employees may become a registered member of a professional institute, eg the Institute of Chartered Accountants.
The employee typically gains an increase in salary when qualified.
Employees may have better chance of promotion after gaining the qualification.
Training normally takes place in the workplace which can save costs for the organisation.
However, graduates may leave for a better paid job after gaining qualification.
Can be time consuming as training is often done on a part-time basis.
Can be costly to pay for external trainers.

Question 22

Continuing Professional Development

Answer 22

Training that takes place throughout a career.
Ensure that employees stay up to date with the knowledge and skills required.
Often important for career advancement and promotion.
Sometimes CPD is a mandatory professional requirement, eg for teachers and doctors.
Achieved through, eg, attendance at courses or seminars, workshops, meetings and online learning.
Can increase staff motivation, job satisfaction and commitment to the organisation.
The organisation benefits through having staff with up-to-date knowledge and skills which can give them a competitive edge.
Can be time consuming as training is often done on a part-time basis, although some employees undertake CPD in their own time.
Can be costly to send staff on training courses and attending events.

Question 23

On-the-Job Training

Answer 23

On-the-job training is training that is undertaken at an employee’s place of work.

Question 24

Coaching

Answer 24

An experienced member of staff will work through a task step-by-step with an employee. The experienced member of staff or ‘coach’ will support the employee through the learning process by passing on their knowledge and skills.

Question 25

Role play

Answer 25

Employees to act out a scenario to see how an they would perform under certain conditions. This will allow the employee to practise appropriate ways to deal with situations that may occur in the workplace.

Question 26

Job rotation

Answer 26

Members of staff can be rotated or moved through different jobs within the organisation, so they acquire a range of skills from each department or job role.

Question 27

Shadowing

Answer 27

An employee observes another employee working to gain a better understanding of how they do their job. This is usually for a set period of time such as a few days.

Question 28

Demonstration

Answer 28

An employee watches a task, or a particular process being carried out and then attempts the task/process themselves.

Question 29

advantages: on the job

Answer 29

Training is specific to the organisation’s needs.
Work is not interrupted by staff having to attend training outside the office.
May be cheaper as internal training does not have to be paid for.

Question 30

disadvantages: on the job

Answer 30

The quality of training may not be as good as that provided by an external trainer.
Training can interrupt the work of other employees.
Workers may pick up bad habits from others.

Question 31

Off-the-Job Training

Answer 31

Off-the-job training is undertaken outside the place of work.

Can be delivered through as colleges or training centres.
Participation through evening classes and day release.
Staff can be trained online through distance learning.
Employees can focus on training as they have no workplace distractions.

Question 32

advantages: off the job

Answer 32

The quality of training is higher since it is delivered by specialists.
Workers can gain qualifications and certificates from external bodies.
Trainees are able to concentrate better since there are less interruptions to work.
Existing staff aren’t hindered or distracted by trainees.
Can be tailored to the organisation’s needs.

Question 33

Disadvantages: off the job

Answer 33

The cost of training may be high, eg, travel and accommodation costs.
The organisation may have to hire other workers to cover for absence.
Productivity may fall due to workers being away on training.

Question 34

Staff appraisal

Answer 34

Staff appraisal is a yearly performance review between an employee and their line manager. This is usually carried out annually and provides an opportunity to:

Review whether targets from a previous year’s appraisal have been met.
Identify aspects where the employee has performed well.
Identify aspects of the employee’s work that require improvement.
Identify the employee’s training needs for the coming year.
Identify targets for the coming year.
Discuss the employee’s career generally and review salary.

Question 35

Benefits of Appraisal

Answer 35

Good practice can be acknowledged, which motivates the employee.
Good practice can be highlighted and shared with all employees within the organisation.
Improvements to policies and procedures can be made due to feedback from staff appraisals.
Training needs are identified which can increase quality standards.
Appraisals help employees understand the organisation’s aims their own role in achieving these.
Strong relationships are formed between manager and employee as they are given the opportunity to have a supportive discussion and resolve any issues.

Question 36

One-to-one

Answer 36

A regular review of an employee’s job performance which is documented and evaluated
Review and discussion of last year’s targets takes place
Targets may be set about future performance
Training needs are identified

Question 37

360-degree

Answer 37

A review of an employee’s job performance, with feedback coming from subordinates, peers, supervisors and the employee themselves
All those involved answer the same questions (often anonymously), which allows for comparison
Allows for a variety of viewpoints from colleagues
Self-evaluation is an important part of this type of appraisal

Question 38

Peer-to-peer

Answer 38

Colleagues in the same or similar position are asked to provide feedback on specific aspects of an employee’s performance
Managers are excluded from this type of appraisal

Question 39

Value of a Motivated Workforce

Answer 39

It is important for a business that its staff remain motivated since this increases the likelihood of:

Higher productivity (by employees being more likely to apply themselves).
Higher quality production (by taking more pride in their work).
Lower absenteeism (since employees are happier at work).
Lower staff turnover (since there is higher job satisfaction).
Improved reputation of the business.
Lower costs and higher profits for the business.

Question 40

Maslow’s Hierarchy of Needs

Answer 40

The American psychologist Abraham Maslow developed a theory of motivation based on a hierarchy (or pyramid) of needs. A person starts at the bottom of the hierarchy and seek to move up levels. Once a particular need has been satisfied, it no longer acts as motivator for the individual.

Question 41

Maslow’s Hierarchy might apply to the workplace following way.

Answer 41

Physiological/basic: Ensuring staff have basic pay and a safe working environment.

Safety: Ensuring that staff feel they have job security through permanent contracts and receiving a fair wage.

Social/Love: Ensuring employees feel that they belong to the group, providing support, good communication and teamwork and establishing corporate values.

Esteem: Providing recognition to employees through praise, promotions, training, opportunities to leading projects and wage increases.

Self-actualisation: Providing opportunities for promotion, creativity, challenge, and helping staff reach their full potential.

Question 42

Hertzberg

Answer 42

The American psychologist Frederick Hertzberg developed a theory of motivation which contends that employees are motivated by two sets of factors.

Motivator Factors
Factors which increase motivation and job satisfaction:

Opportunities for promotion
Recognition and praise
Being given responsibility
Being give a particular challenge
Sense of personal achievement
Personal growth

Hygiene Factors
Factors which, if not present, result in decreased motivation or dissatisfaction:

Fair salary
Quality of supervision
Job security
Good working relationships
Access to the right tools and equipment
Good working conditions
Company policies

Question 43

Financial methods of motivation

Answer 43

Time Rate: Employees are paid for the time that they work at a set amount per hour or per day. The more hours or days an employee works the larger wage they will receive.

Piece Rate: Employees are paid for each item they produce. The more productive an employee is the higher the wage they will receive. This will encourage people to work harder and produce more.

Commission: Employees are paid a percentage of the value of their sales. They are motivated to sell more as the higher their sales the more commission they will earn.

Performance-related Pay: Employees who reach a certain standard or achieve a certain target will be given a pay rise.

Bonus: Employees receive an additional sum on top of their basic salary for achieving targets set by the organisation. Sometimes when the organisation does well all workers receive a bonus.

Profit Sharing: Employees receive a share or percentage of the profit made by the organisation. This encourages workers to be productive and produce high quality products so that the business makes higher profits.

Question 44

Flexible Working Practices

Answer 44

Part-time working: An employee works only part of the week. This flexibility enables employees to remain with the business rather than leave due to other commitments, for example a parent who needs to care for children 2 days a week.

Share: Two people share the duties and salary of one full-time position. This flexibility enables 2 employees to remain with the business rather than leave due to other commitments.

Homeworking: Employees work away from the workplace, from home or at another premises. This flexibility and convenience enable employees to remain with the business.

Flexitime: Employees are able to work a set number of hours with flexibility over start and finish times. I might , for example, suit a parent to start work at 7 am and finish at 3 pm to support child care arrangements. This flexibility encourages employees to remain with the business rather than leave for another job.

Compressed hours: Employees can work the full number of weekly hours in a reduced number of days. For example, an employee works longer hours Monday to Thursday, in order to have Friday off.

Question 45

Other Non-financial Motivators

Answer 45

Positive working environment: Motivation can be increased by providing a safe and comfortable working areas, good communication within the organisation, and providing effective equipment and technology.

Training and staff development: Employees are motivated by the opportunity to keep learning and developing new skills and knowledge.

Promotion and recognition: For many employees to be praised and recognised for their contribution to the organisation can be very motivating. Also, opportunities for career enhancement and promotion can lead to higher motivation.

Employee participation: Involving workers in making decisions can make them feel more involved and valued within the organisation. This in turn can increase motivation and commitment to the business. Works councils, worker directors and quality circles are all ways of increasing employee participation.

Fringe benefits: Some organisations provide fringe or additional benefits in the form of a company car, gym membership, health insurance, free childcare. This can make the organisation a more satisfying place to work and can increase the motivation and commitment to staff.

Job enrichment: Employees are given more responsibility or harder task to make their jobs more interesting and challenging.

Question 46

Autocratic Leadership

Answer 46

Managers make the decisions without consulting those lower down the organisation.
Decisions are made from the top down.
Most suitable for hierarchical organisations, rather than flat structures.
Employees are told what to do and are given clear instructions.
Decisions can be made quickly by the most experience and senior leaders.
However, employees may lack motivation and feel undervalued.
The business might lose out on creative ideas from employees.

Question 47

Laissez Faire Leadership

Answer 47

Employees are allowed to get on with their jobs with very little supervision.
Employees make their own decisions and solve problems with little support from managers.
Effective where staff are skilled and experiences.
Employees can feel empowered and motivated by having responsibility.
The business can benefit from creativity and fresh ideas.
However, employees may feel unsupported, leading to reduce motivation and increased stress.
Can lead to poor quality of work or mistakes if there is inadequate supervision and quality control.
Sometimes it is unclear who is to makes a decision, which can lead to uncertainty and delays.

Question 48

Democratic Leadership

Answer 48

Managers and employees work together to make decisions.
Requires managers to consult regularly with staff.
Employees are encouraged to communicate ideas and solutions to managers.
Can raise levels of motivation and engagement for all employees.
Employees are better prepared for promotion.
Staff may be more willing to accept changes if they are involved in the decisions.
However, consulting widely with large number of staff can take time.
If consultation highlights strong differences of opinion, it can be harder to reach decision that everyone accepts.

Question 49

Tannerbaum and Schmidt Continuum

Answer 49

In 1958 Tannerbaum and Schmidt created a ‘Contingency’ theory of Leadership. This represented a range of actions related to:

The degree of authority used by a manager
The area of freedom available to non-managers

Question 50

The continuum identified 4 main styles of leadership:

Answer 50

Tells: The leader identifies problems, makes decisions and announces to subordinates what is required.
Sells: Leader makes the decisions but attempts to overcome resistance through discussion and persuasion.
Consults: Leader identifies the problem and presents it to subordinates. Listens to advice and suggestions before making a decision.
Joins: Leader defines the problem and passes the problem solving and decision making to a group (which the manger is part of).

Question 51

Equality Act 2010

Answer 51

Discrimination means unfairly treating a person or group of people based on a characteristic such as age, race or sex. The Equalities Act was created to prevent discrimination in the workplace and makes it illegal to discriminate against workers on 9 protected characteristics:

Question 52

9 protected characteristics

Answer 52

Age - for example, not considering an employee for a promotion because they are too old or too young.
Disability - for example, not considering an employee for a promotion because they have a physical impairment.
Gender - for example, paying a male worker more than a female worker for doing the same work.
Marriage and Civil Partnership - for example, not considering an employee for a vacancy because they are married.
Pregnancy and Maternity - for example, not considering an employee for a promotion because they are pregnant or on maternity leave.
Race - for example, not considering an employee for a vacancy because they black.
Religion - for example, not considering an employee for a promotion because they are Muslim.
Sexual Orientation - for example, not considering an employee for a promotion because they are gay.
Gender Reassignment - where a transgender employee has undergone (or intends to undergo) a surgical procedure to change their physical appearance and function of their existing sexual characteristics to resemble those associated with their identified gender.

Question 53

Implications of the Equality Act for an organisation

Answer 53

An organisation has a legal requirement to promote equality in all its working practices.
Comprehensive anti-discrimination and harassment policies must be in place.
Recruitment policies must be compliant with the Act, for example the wording of job adverts.
Staff training may be required on discrimination prevention/awareness.
The organisation may be prosecuted and fined for discrimination or breach of the Act.
Adaptations to the workplace may be necessary to make it accessible to someone with a disability which may have significant cost implications.
Wage policies may need to be revised to ensure that both genders are paid the same for jobs of equal value.

Question 54

Health and Safety at Work Act 1974

Answer 54

This is important legislation covering health and safety in the workplace. It outlines the responsibilities of both the employer and employee in ensuring there is a safe working environment.

Question 55

Health and Safety at Work Act 1974 policies

Answer 55

Ensure that plant and machinery is maintained and safe to use.
Make sure that all materials are handled, stored and used safely.
Provide adequate first aid facilities.
Make sure that all facilities meet health and safety requirements, eg, ventilation.
Check that the correct work equipment is provided and is properly used and regularly maintained.
Take precautions against the risks caused by flammable or explosive hazards, electrical equipment, noise and radiation.

Question 56

A business which does not comply with health and safety regulations

Answer 56

temporarily closed or shut down or fined.

Staff members suffering an injury at work could potentially take legal action against the organisation and receive financial compensation.

Question 57

(HASAWA) Staff also have responsibility

Answer 57

take care of their own safety and that of others. This might include having to wear protective clothing and use safety equipment and participating in training related to health and safety.

Question 58

The National Minimum Wage Act 1998

Answer 58

This Act sets out the minimum amount of pay a worker is entitled to per hour. This wage per hour is based on a worker’s age. For example, in 2019 the minimum wage for someone aged 18-20 was £6.15. Someone aged over 25 would receive £8.12 an hour.

It is a legal requirement for employers to pay workers the national minimum wage.

An employer can be prosecuted if its workers are not paid the national minimum wage.

Question 59

National Living Wage

Answer 59

The National Living Wage was introduced in 2015. It is specifically for workers aged over 25 years and it is the lowest wage that can legally be paid to these workers. It aims to raise wages of workers over 25 years to £9 per hour by 2020.

Question 60

Impact on Organisations: minimum wage and living wage acts

Answer 60

The main benefit of paying employees a living wage is that it can increase employee retention, decrease absenteeism, and improve the quality of work produced. However there are other possible implications for a business of paying a living wage.

A business may have to make redundancies to pay for increases in wages.
Possible bad publicity if a business is found in breach of these regulations.
The business may be viewed as not fulfilling its corporate social responsibility.

Question 61

Employment Rights Act

Answer 61

Employees and workers enjoy a large number of employee rights given to them by Parliament. These are known as statutory rights. In addition to statutory rights employees and workers may have more generous contractual rights which their employers have chosen to give to them. An employer may never give less than the statutory entitlement. If it does the employee will be able to submit a claim to an employment tribunal for compensation.

Question 62

The Employment Rights Act means that all workers have the following employment rights.

Answer 62

A written statement of terms and conditions of employment.
Statutory sick pay.
Protection against unlawful deduction from wages.
Itemised payslips.
National minimum wage or national living wage.
Rest breaks and the maximum working week.
Be accompanied at a disciplinary or grievance hearing.
A pension contribution from employer.
A minimum notice period.
Not to be unfairly dismissed.
Statutory redundancy pay.
Maternity and paternity pay.
Not to be unlawfully discriminated against.
Request flexible working.

Question 63

Impact on the Employer: employment rights

Answer 63

The Act introduces statutory minimum internal disciplinary and grievance procedures for all organisations that employ staff, and measures to promote their use.
Requirement to have clear policies and procedures in place.
Requirement for the business to comply with the laws or face court action and fines.
The business must have disciplinary and grievance procedures in place.
The rights of employees must be communicated to all staff.
Human resource departments may require training and time to develop policies.

Question 64

Data Protection Act 2018

Answer 64

Data Protection Act 2018 sets out rules for people who use or store data about living people and gives rights to those people whose data has been collected.

The law applies to data held on computers or any sort of storage system, even paper records. This applies to information kept on staff, customers and account holders.

Question 65

Data Protection Requirements:

Answer 65

If the business collects data about people for one reason, they must not use it for a different reason.
Businesses must not give people’s data to other people or organisations unless they agree.
People have the right to look at data that any organisations store about them.
Businesses must not keep the data for longer than they need to and it must be kept up to date.
Businesses must not send the data to places outside of the European Economic Area unless adequate levels of protection exist.
Organisations that store data about people must register with the Information Commissioner’s Office.
Data about people must be secure and well protected.

Question 66

Impact on Business: data protection

Answer 66

Staff training on data protection may be required.
The business may need to have a data protection policy in place.
Action must be taken to make sure that data is secure and well protected.
Data protection staff may be required in larger organisations.
The business can be fined for data breaches.

Question 67

Positive employee relations:

Answer 67

Employees are happier and more secure in the workplace so productivity is higher.
A more motivated workforce can result in a higher standard of work.
Employee commitment is stronger so the business is more likely to achieve its aims.
There is likely to be fewer disputes and grievances between managers and employees.
Absence from work is reduced and turnover of staff is lower.
It’s easier to introduce change if relationships are positive and employees trust managers.

Question 68

Poor employee relations:

Answer 68

Increased disputes and grievances.
Less productive workforce.
Reduced standard of work.

Question 69

Policies and Procedures - employee relations

Answer 69

Flexible Working Policy sets out the rights of employees to work flexibly, for example, part-time work, job sharing, working from home and compressed hours.

Maternity/Paternity Policy sets out the rights of employees to paid leave from work following the birth of a child. This covers the period of paid leave for both mothers and fathers and other statutory rights.

Grievance procedures sets out the processes that an employee should go through if they are unhappy with something that has happened in their workplace such as disagreements or problems with working conditions.

Absence/Attendance Policy helps manage staff absence and address any issues that are preventing a member of staff from attending their work.

Discipline Policy is used where an employee fails to follow the rules of conduct required by the organisation. Discipline procedures often cover absenteeism, conduct, behaviour and performance. This can result in sanctions such as informal and formal warnings, suspension and even dismissal.

Redundancy Policy sets out the process to be followed where a business no longer requires the job or role that is being carried out. The employee is given a redundancy payment (providing they have worked there for a specified time) and a period of notice to allow them to look for a new job.

Question 70

Trade Unions

Answer 70

Trade unions are organisations that that represents a group of employees.
Employees pay an annual subscription to have the trade union negotiate on their behalf.
Trade unions negotiate better pay and conditions for members.
Trade unions are involved in the resolution of disputes, providing legal and financial support to its members.
Craft union: for workers skilled at a particular job.
General union: for unskilled and semi-skilled workers from different industries.
Industrial union: for all types of workers in an industry.
White-collar union: for non-manual or office workers.

Question 71

Employers’ Associations

Answer 71

An Employers’ Association is a body that represents and negotiates on behalf of a group of employers.
Like trade unions, employer associations are made up of businesses and employers and who all pay annual fees for their benefits.
Usually from the same sector of the economy, eg, retailing, with the aim of furthering the interests of member companies.
They negotiate with trade unions on behalf of their members.
They give employers advice on employment laws, health and safety, taxation laws.
They can share ideas and research facilities.
Employer associations can influence the government to give better conditions for businesses to prosper, eg, lower interest rates, lower corporation tax, better transport infrastructure, control economic factors such as inflation.

Question 72

Industrial action

Answer 72

Sit In: Employees occupy their workplace in order to prevent any work from taking place. Production will be stopped leading to customers going to the competition to fulfil their needs/orders.

Overtime Ban: Employees refuse to work any overtime hours, leading to deadlines not being met.

Work to Rule: Employees only carry out the duties that are specifically listed in their contract of employment. Decreased levels of production could lead to delays in orders creating a bad reputation for the organisation and loss of customers.

Go Slow: Employees carry out all their duties but at a slower pace of work. Customers will be lost due to orders not being produced in the required timescale.

Strike: Employees refuse to go to work. Production within the organisation is stopped which could lead to the organisation being unable to fulfil orders or meet customer demand. This leads to loss of customers and sales.

Picket Line or Protest: Employees stand at the entrance to the organisation with banners to demonstrate against the organisation. Picket lines outside an organisation can lead to a poor image and unhappy relationships between staff who cross the picket line and those staff demonstrating.

Question 73

Industrial action can have a big impact on an organisation in terms of its success, productivity and reputation.

Answer 73

Production will slow down or even stop.
The firm is unable to meet customer orders or provide a service.
Existing customers may lose trust and go elsewhere.
The organisation could gain a poor image.
Relations between employees may be damaged.
Staff morale could fall and employees may leave.
Employees may lose wages while taking strike action.
Costs to the organisation may increase if conditions are met.

Question 74

The role of ACAS

Answer 74

The Advisory, Conciliation and Arbitration Service (ACAS) is a body which aims to improve relations between employers and workers.

It is involved in disputes or disagreements if a trade union cannot reach an agreement with and employer. An impartial ACAS conciliator ‘referees’ negotiations between both sides.

ACAS ‘arbitrates’ by making a final decision based on the evidence presented by employers and trade unions/workers.

ACAS can provide advice to organisations to help them better understand HR policy.

ACAS also offers training to organisations to prevent disputes occurring.

Question 75

Approaches to employee participation

Answer 75

The main idea behind employee participation is to involve workers in business decisions and to make them feel that they have an important voice within the business. There are several ways of doing increasing participation:

Worker directors: Some workers become directors of the business, although they are not allowed to attend all board meetings.
Works councils: Representatives of employees get together and discuss matters that affect employees with managers. Multinationals with more than 1,000 workers or 100 workers per branch are required to create a works council and will have to always consult it when making decisions affecting employees.
Quality circles: Groups of workers regularly discuss how to improve quality and efficiency.
Democratic leadership: Workers are delegated more responsibility and are regularly consulted in business decisions.

Question 76

Benefits of employee participation

Answer 76

Improved relationships between the employer and employees.
It increases motivation and job satisfaction.
Reduces absenteeism and staff turnover.
The organisation gains useful knowledge and ideas from experienced workers.
Employees may be less resistant to change since they have been involved in decisions.

Question 77

Drawbacks of worker participation

Answer 77

It can be time consuming to consult widely.
Employees may lack necessary technical knowledge to make decisions.
If there are lots of different opinions it may be hard to read a consensus.
There may be conflict of interests, since managers and workers may have different aims.

Question 78

Technology to support human resource management

Answer 78

Spreadsheets and other dedicated software help with human resources functions such as such as payroll and workforce planning.
Word processing software helps to generate policies and documents for staff.
Email is commonly used to communicate amongst workers in an organisation.
Databases are used to record staff records and Cloud storage is also used to store such information. Reports can be generated automatically to help aid in staff management.
Online technologies may be used to advertise job vacancies via the Internet or via social media platforms. Applications are often submitted using an online form template.
Online recruitment tests and assessments can be used during the testing stage of the selection process. These tests can then be electronically marked.