Theme 1 - 1.4.1 - Approaches To Staffing

Question 1

What are staff ?

Answer 1

Staff are the employees in a business

Question 2

What is staffing ?

Answer 2

Staffing is the process of hiring, training and supervising employees in a business

Question 3

What is an asset ?

Answer 3

An asset is - a useful or valuable thing or person

Question 4

What 2 things can staff be viewed as ?

Answer 4

Staff can be viewed as an asset or a cost by the business

Question 5

Staff which support the manufacturing process or who give great customer support …

Answer 5

Can both contribute to the value of the output ( for e.g. good grades for the kids ) or add value to the product

Question 6

What happens to a member of staff ?

Answer 6

A member of staff will have to have been recruited, trained and developed and as such has unique skills relevant to the business

Some staff are very highly skilled - could you operate a high crane ? - this means these workers are very valuable to the business and are a big asset and finding new ones will cost a lot of money as they will have to go through the process of recruiting etc etc

Question 7

What are the advantages of treating staff as an asset ?

Answer 7

• Staff are allowed to participate more in decision making - this means that the staff will feel more valued and this will motivate them
• The business is more able to respond quick;y to market changes
• Staff have more autonomy over their work, which is more motivating for the staff and will increase retention rates (staff leaving - so retaining staff) and reduce absenteeism ( staff not going into work becoauyse of the lack of motivation - they dont feel valued so they are like whatever i feel bad im not going to come into school - not caring about the impact this could have on students etc

Question 8

What are the 6 different ways that staff could be viewed as a cost ?

Answer 8

• Cost of recruitment
• Cost of training
• Cost of paying minimum wages
• Cost of paying staff salaries and wages
• Cost of staff welfare - toilets, heaters, pension etc
• Cost of redundancy

Question 9

Why is the cost of recruitment high ?

Answer 9

It’s because a business may choose to carry out the recruitment themselves and the costs add up here as they have to make an advert for the job ( can cost lots ) and the employees have to take time from their job to carry out the interview etc and all this adds up to a lot

Also a business can decide to use an agency to hire their staff and this can mean a payment of up to 2000 pound per employee that they take on

Question 10

Why is the cost of training staff usually viewed as cost rather than added value to the business ?

Answer 10

This is because it takes a lot of time and money to train staff especially if it is a very specialist job - however businesses with innovative learning and development programmes are increasing sales revenues a d retaining their staff for longer as the staff are more skilled.

Training is an ideal way to close skill gaps in a business.

If you didn’t train an employee then it could result in less revenue as the employee might not have the skills to complete the job completely and also it might demotivate the employee and this would cause the businesses retention rates to go down - might make the business look bad

Question 11

What is minimum wage ?

Answer 11

A business in the UK is bound by employment laws

One of these laws is the minimum wage law, businesses must pay these rates or higher to their workers - if they don’t they face high fines

Question 12

What is the difference between a salary and a wage ?

Answer 12

A salary is paid to permanent staff and is usually a years salary divided into 12 equal monthly amounts e.g. 1200gbp a month

Wages are paid to staff on an hourly basis e.g. 7.83 an hour

Question 13

Why is staff welfare important ?

Answer 13

An employee who is well cared for will be more fulfilled and satisfied in their job so are less likely to leave

Question 14

What is staff welfare ?

Answer 14

Staff welfare is an umbrella term that can mean anything and everything from facilities and benefits to working conditions and retirement pension rates

Question 15

What is redundancy ?

Answer 15

Employees are made redundant when the job no longer exists. In comparison being fired is when an employee does not do their job correctly

Employees may be entitled to redundancy pay and this depends on how long they have been employed

Question 16

What is multi-skilling ?

Answer 16

This means having a workforce that can be moved around from one job to another

For e.g. a history teacher that can also teach English or Geography is really useful to a school

Another example would be a builder that can plaster, plumb or do electrics

Question 17

What are the advantages and disadvantages of Multi-skilling ?

Answer 17

Advantages:
- Less staff are needed, those that are employed are used to capacity not standing around

• More interesting jobs for workers as there are a variety of tasks
• This can increases efficiency, quality and productivity while reducing costs

Disadvantages:
- Workers become a ‘jack of all trades, master of none’

• Businesses lose the benefits of having specialist staff

Question 18

How much will a full time worker usually work and how much is the maximum you can work a week by law ?

Answer 18

A full time worker usually works 35h or more a week however this can vary

The maximum you can work a week by law is 48 hours - this is only on the contract though - You can work longer however this would be your own choice

Question 19

What are the advantages and disadvantages of full time work ?

Answer 19

Advantages:
- May be more highly paid per hour than part-time
- Access to more holiday entitlement
- Employees are committed to business and may be more productive
- Loyalty to the business

Disadvantages:
- Employees stand idle if there is a business downturn
- Less flexible than part-timers, no-one to cover late nights and weekends

Question 20

What is part time work ?

Answer 20

A part-time worker is someone who works fewer hours than a full-time worker - so less than 35h a week

Part time workers should get the same benefits as a full time worker on a ‘pro rata’ basis

Example part-time jobs - shop worker

Question 21

What are the advantages and disadvantages of part-time work ?

Answer 21

Advantages:

✓ Good way to keep costs down while a business is growing
✓ Part-time jobs attract a wide pool of applicants with experience and skills who might not want a full-time job
✓ Flexible to respond to seasonal changes
in demand
✓ Part-time employees have the same employment rights as full-time
employees
✓ The availability of part-time work can
attract skilled workers who are unable to
work full-time

Disadvantages:

• Employees might not give the business the commitment and loyalty that a full-time worker would
• Employee may work more than one job which would make them inflexible
• Employee might leave if they find a full-time job

Question 22

What is temporary work ?

Answer 22

A temporary job is one where the employer only needs extra staff to cover a seasonal period

The business can cover staff shortages and keep their costs low

Temporary staff can be employed by the business or can be employed from an agency

An example is a supply teacher

Question 23

What are the advantages and disadvantages of Temporary work ?

Answer 23

Advantages:
- Ideal for a business that needs extra workers for a special project
- Useful to meet seasonal demands, and work fluctuations
- Useful to meet employee shortages
- If employed from an agency they the agency may do all of the paperwork

Disadvantages:
- Temporary staff may be expensive but it may be cheaper than hiring permanent staff
- Injury rates are higher in temp ( temporary workers )
- All staff will need some kind of training to get started, this costs time and money

Question 24

What is permanent work ?

Answer 24

A permanent contract is the most common type of employment, an indefinite contract whereby you are employed by the company
until either the employee leaves is fired or made redundant/

Question 25

What are the advantages and disadvantages of permanent work ?

Answer 25

Advantages:
- Staff will be very focused on the business, they will look to the long-term to build up their professional development profile with the business

• Higher staff morale as they know they have a secure job
• Employees have loyalty to the business which reduces absenteeism and increases productivity

Disadvantages:
- Permanent staff can develop negative attitudes to work, or get involved in office politics and so may become lazy, uncooperative or disinterested in the business

Question 26

What are flexible hours ?

Answer 26

Flexible working is a way of working that suits an employees needs, e.g. having flexible start and finish times, or working from home

All UK employees have the legal right to request flexible working hours - not just parents and carers

Work is divided up into ‘core’ and ‘flexi time’

Question 27

What are the advantages and disadvantages of flexible hours ?

Answer 27

Advantages:
- From a business perspective flexible working can keep valuable staff from leaving and can also cover busy periods
- Can accommodate the work life balance needs of employees with busy lives and families

Disadvantages:
- Can sometimes confuse suppliers or customers who may want to speak to the same member of staff
- The business may need extra staff to cover unmanned periods

Question 28

What are zero hour contracts ?

Answer 28

Zero hour contracts means that employees are ‘on call’ to wok when you need them, but they have not fixed hours of employment

The employer does not have to provide the employees with work

The employees can say no if the employer calls and offers them work that day

Zero hour contract examples are - hotels, fast food, sports direct etc etc

Zero hour contracts are banned in New Zealand

Question 29

What are the advantages and disadvantages of zero hour contracts ?

Answer 29

Advantages:
- Great for a business where work can be unpredictable
- Ideal where staff are needed on short notice
- Gives the employer great flexibility, no staff standing around with nothing to do

Disadvantages:
- Employees might not give the business the commitment and loyalty that a full-time would

• Employees may become unhappy with the zero hours and leave to find more permanent work

Question 30

What is home working ?

Answer 30

It is when you work at home

The employer lowers their overhead costs by not having to provide offices and supervision

The employee cuts out the cost and stress of a commute and can set their own work hours

Question 31

What are the advantages/disadvanatages from working from home ?

Answer 31

Advantages:

1. Fit a business round a family, gives a good work-life balance
2. The owner can work hours that suit their lifestyle
3. No commute, so reduction in costs of travelling - no need to travel
4. No expensive premises to pay for, so a reduction in fixed costs - business saves more money
5. Less stress from travelling and tension with colleagues

Question 32

What’s outsourcing ?

Answer 32

When a company grows it cannot afford to be an expert in many different areas so therefore they hire other third-party companies that will do certain things or them - this is called outsourcing

Accurate definition:
Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company’s own employees and staff

Question 33

What are some examples of outsourcing ?

Answer 33

• Production
• Payroll
• Purchasing
• Delivery

Question 34

How is production an example of outsourcing ?

Answer 34

Production - some motor manufacturers now outsource not only parts but complete assemblies - steering, transmissions, engines, interior assemblies - so another company makes them the engines etc and then sends them to the business - think about it - some super car companies use like Toyota engines

Question 35

How is payroll an example of outsourcing ?

Answer 35

Payroll; is the one of the most common task that companies outsource. Services include
weekly/monthly/quarterly payroll and normally attending to the completion of the (many)
Government returns

Question 36

What is payroll ?

Answer 36

Payroll is the function of the finance department that makes sure that all the staff get paid the right amount, on time

Question 37

How is IT an example of outsourcing ?

Answer 37

because you can purchase information systems as hiring and evaluating IT staff and training users etc can all be very difficult. By outsourcing the information systems function, the business can obtain the latest technology and suitably skilled personnel

Also an IT help desk could be anywhere in the world

Question 38

How is delivery an example of outsourcing ?

Answer 38

• Delivery; Larger businesses might prefer to contract a major delivery firm rather than
maintain their own fleet.

• Either way, the business can hire the expertise to keep delivery problems and decisions off their desk

Question 39

What is dismissal - fired ?

Answer 39

A worker may be dismissed or fired from a job for:
- Absenteeism
- Gross misconduct ( showing up drunk )
- Theft of company money or property

Worker is not entitled to payout from the business if dismissed - aka fired, sacked

Question 40

What is redundancy ?

Answer 40

It is when the workers job no longer exists possibly due to a lack of business or restructuring

Redundancy is sometimes voluntary - where some staff close to retirement take voluntary redundancy to gain a pay-out

Compulsory redundancy is here a member of staff must leave a job

Question 41

What happens if there is a problems at work ?

Answer 41

IF there are problems at work - employees can be represented by a member of their trade union - rather than 300 employees all complaining to the boss about the same thing, the trade union rep will argue on their behalf - this is called collective bargaining

Question 42

What are trade unions ?

Answer 42

A trade union is an organisation with members who are usually workers or employees. It looks after their interests at work by doing things like:

✓negotiating agreements with employers on pay and conditions
✓discussing big changes like large scale redundancy
✓discussing members’ concerns with employers
✓going with members to disciplinary and grievance meetings