UNIT 3.2 How do people contribute to business?. Why do people work? Earn money Security (money for the future) Friendship (socialising) Job Satisfaction.

UNIT 3.2

How do people contribute to business?

Why do people work?

• Earn money

• Security (money for the future)

• Friendship (socialising)

• Job Satisfaction

• To better ourselves – to develop abilities and talents

The basic reason is to provide for ourselves and our families – satisfying basic needs and wants eg food, clothing, and shelter.

What format can jobs take today?

• Full time – eg Monday to Friday 9 am to 5 pm

• Part time – working eg 15 hours in the week

• Permanent – The job will last as long as the business continues trading

• Temporary – The job lasts only a short period of time (contract work)

What format can jobs take today?

Although most types of jobs require employees to be working during agreed times each day, some are more flexible that others.

Flexible Working or Flexi-time (applies to full or part time jobs) consists of:

• Core time – all employees must be at work

• Flexi-time – employees can choose when they will be at work

What are the main types of worker?

• Manual Workers (unskilled) – no formal qualifications

Employees who have not been trained in any particular area, but nonetheless contribute to the goals of the organisation eg labourers on a building site.

• Blue Collar Workers (semi-skilled) Often carry out repetitive tasks eg a machinist in a factory.

• White Collar WorkersSkilled workers who tend to be multi-skilled. They are expected to be responsible for the quality of their output and be motivated.

• ProfessionalsExamples of professionals are doctors, lawyers, teachers and managers.

Employing the right people

People are central to the success of any business - the better the people, the better the chances of the business being successful.

• Is there such a thing as the right person?

• Does the perfect employee exist?

• Can employees be improved?

• Do conditions affect employees?

The Human Resources function of the business will generally be responsible for the task of finding the right people. They will work in close liaison with the departments for whom new employees are needed.

The steps to the ‘Right Person’

• Carry out a Job Analysis

• Prepare a Job Description and Person Specification

• Advertise the Job

• Issue Application Forms or Request CVs

• Select Candidates for Interview by drawing up a short list

• Conduct the Interviews and Select the ‘Right Person’

Throughout employment the employer should carry out staff appraisals at regular intervals and offer adequate training to develop the employee’s skills for the benefit of the business.

Choosing the ‘Right Person’

AbilityQualifications

Personality

Talents

Attitude

Appearance

Experience

Example 1: Qualities for a zoo-keeper

Experience with

animals

Patience

Love of animals

Good healthScientific

knowledge

Example 2: Qualities of a medical consultant

Patience

Interpersonal skills

Ability to takeresponsibilityAdditional

qualifications to reach consultant

status

Experience in hospitals

Appropriate degree

The Job Analysis

• The easiest way to analyse a job is to:

• Ask the current job holder what they do

• Watch what the current job holder does

• Ask the manager what the job ought to be

•This involves identifying the:

• Tasks to be completed

• Technology required

• Knowledge and skills needed

• Inter-personal skills required

• Level of initiative needed

• Responsibility level of the job

The Job DescriptionA Job Description allows applicants to see what the job will involve and helps identify the type of workers that the business is looking for.

A Job Description contains all the main details which relate to a job:

• Job title

• Department

• Position in the business

• Job Outline

• Job Responsibilities

• Working Conditions

• Purpose and Objective of the Job

• Main Duties

• Job Standards

The Person SpecificationEvery position within a business requires particular skills, talents and aptitudes.

A Person Specification identifies the main characteristics which will be required to do the job.

A Person Specification will include:

• The physical characteristics of the individual

• The achievements of the individual

• The intelligence of the individual

• The aptitudes of the individual

• The interests/hobbies of the individual

• The personalities of the individual

• The circumstances of the individual

Advertising The Job

Adverts which include ‘perks’ will attract experienced people who are already in a job but are looking for:

• Promotion or a new challenge

• A change of job

• A move into another type of work

The advert should state clearly what the potential candidate should do:

• Complete and return an Application Form

• Send in a CV

• Apply in Writing only

• Telephone

The Application Form

The purpose is to collect relevant information from the candidate.

All application forms request basic information eg:

name, address, DOB, education, qualifications, experience

However recently application forms are asking for more information e.g.:

• why have you applied?

• what makes you suitable?

• what other information is relevant?

The Curriculum Vitae

CVs are prepared by most job applicants and provide a short summary on the applicant.

Some businesses ask for hand-written CVs so that clear writing and standard of English can be assessed.

References

The accuracy of information written in Application Forms should be checked by contacting people known to the applicant.

The Selection Process - Interviews

Interviews can be carried out in several ways:

• One individual interviewing a single candidate

• Successive interviews conducted by different interviewers

• A panel interviewing a single candidate

• A panel interviewing a group of candidates

A Successful Interview

• Telling candidates how the interview will be conducted

• Putting the candidates at their ease and telling them about the job

• Asking questions to give candidates the opportunity to give full answers

• Listening to the candidates’ answers and asking follow-up questions

• Giving the candidates an opportunity to ask questions

• Keeping the interview pace brisk

• Indicating when the interview is over

• Dress and body language affect the interview with the impression they create

• Badly dressed candidates can present a poor image to the interviewers

• Hostile questions from the interviewers can create self doubt in the candidates

• Fidgeting and looking uninterested (by either the candidate or the interviewers) leads to interviews being cut short

• To be equally fair to all applicants, they should all be asked the same questions

Monitoring Interviews

Most interviewers use interview checklists which they can use to accurately compare candidates after the interview.

Making The Appointment

After the interviews have been completed the successful candidate is offered the job. If he/she refuses the business will either:

• Offer the job to another candidate; or

• Re-advertise the job

Contract of Employment

A Contract of Employment contains the following details:

• Job Title, Hours of Work, Holiday Entitlement

• Rate and Timing of Pay

• Sickness Pay and Allowances

• Pension Scheme

• Discipline Procedures

• Notice Required to leave Job

Methods of Recruitment

Internal Recruitment (from within the company)

• Allows employees to develop

• Employees are already familiar with the business

• Employees strengths and weaknesses are known

• It is an inexpensive form of recruitment

• It can improve staff morale

However:

• Better quality people are excluded from applying

• Another job vacancy will arise internally

Methods of Recruitment

External Recruitment (from outwith the company)

• Commercial Employment Agencies

• Head Hunting

• Careers Service

• Adverts in Newspapers, Internet etc

• Job Centres

• Word of Mouth

Job Training

Training methods will vary to meet the individual needs of each business, but:

• it must benefit the business by improving workers skills in the changing business world

• be available throughout an employee’s working life (life long learning)

• help ensure safety at the workplace

• prepare employees for future promotion

A good trainer will not only ensure that what they teach is relevant and up-to-date but also that participants enjoy the experience.

Training Methods

On-The-Job Training

• Provided in the workplace by the employer or specialists who are brought in.

Off-The-Job Training

• Occurs away from the workplace e.g. at college

Apprenticeship

• Combination of the above eg working 4/5 days and at college on the fifth

Types of Training

Induction Training

• Initial training provided when a person starts a new job

• Helps a newcomer settle in

• Shows how the business works

• Providing practical experience in how the business works

Retraining

• Occurs away from the workplace e.g. at college

Upgrading Training

• Changing work practices, perhaps as a result of new technology, means employees must often upgrade their skills.

Staff Appraisal

Staff Appraisal techniques are used to evaluate employee’s performance. This has always been done but often informally rather than in a formal manner.

• Informal Appraisal

• Based on the ‘feelings’ of management

• Formal Appraisal

• Based on factual or real evidence

(Successful) Staff Appraisal

Formal appraisal can only be successful if targets are set for performance.

What type of issues could target setting be used for? (e.g. attendance)

Targets, to be relevant and worthwhile, must pass the SMART test

S pecific

M easurable

A ttainable

R ealistic

T ime related

The Appraisal Interview

The appraisal interview is generally a formal meeting with a superior with the meeting concentrating on the Appraisal Form. The main areas of discussion tend to be about:

• Targets met

• Training needs

• Prospects for increased salary and promotion

The 3 main forms of appraisal interview are:

• By a superior

• By a peer group

• By one’s self

Appraisal - The Benefit To Business

Positive Aspects

• Feedback to employees

• Encourages employees to build on their strengths

• Identifies training needs

• Gives pointers to gain promotion

Negative Aspects

• Criticise employees

• Identify poor workers

• Increase workload

• Alter job specifications

How Employers and Employees Inter-Relate

Businesses can only be successful if the relationship between employees and employers can be clearly defined and understood by both. This can be difficult as the relationship between employees and employers is affected by:

• Legislation

• Industrial Relations

• Management Behaviour

Contracts of Employment (Verbal Expectations)

Although not in the Contract of Employment each business will have expectations of the staff they employ:

• Not to jeopardise the safety of other workers

• To carry out instructions

• To be able to do their job

• To act in good faith towards the employer

• To observe the custom and practice of the business

• Not to pass on confidential information

SEX DISCRIMINATION ACT 1975Not to be discriminated against on the grounds of sex.

RACE RELATIONS ACT 1976Not to be discriminated against on the grounds of race or colour.

DISABILITY DISCRIMINATION ACT 1995Not to be discriminated against on the grounds of disability.

EQUAL PAY ACT 1970To receive equal pay for equal work

Legislation

HEALTH & SAFETY AT WORK ACT 1974To work in safe conditions

NATIONAL MINIMUM WAGE ACTThis states the minimum wage rates that can be paid to employees. (18-21 & 22 or over)

EMPLOYMENT RIGHTS ACT 1996This states a wide range of duties and rights of an employer and employee, e.g.

•Written contract of employment•Maternity & termination of employment

Legislation

Industrial Relations

Employees have the right to be a member of a trade union. An employer may decide to recognise a trade union so that collective negotiations can take place over:

• Pay and conditions of work

• Fairness of recruitment, selection and promotion

• Procedures for dismissal

If employers and unions fail to reach an agreement, industrial action can occur. Industrial action can be:

• Work to Rule

• Overtime Ban

• Sit-in

• Strike Action

Difficulties of Industrial Action

• Production is lost

• Sales are lost and business might fail

• Business Reputation is damaged

• Employee, Employer Relationships become strained

Benefits of Industrial Action

• Grievances are ‘out in the open’

• New procedures can be introduced to avoid conflict

• Management objectives can be altered to include more participation

ACAS

The Advisory, Conciliation and Arbitration Services (ACAS) was set up in 1979 to offer impartial advice to groups involved in industrial disputes.

ACAS provides:

• Advice to employers and unions on employee matters

• Conciliation to bring the parties of a dispute to a fair settlement

• Arbitration to resolve a dispute

Management Behaviour

Relationships between employers and employees can be affected by the way management behaves towards employees. Successful management encourages employee participation and effective communication.

Employee Participation

• Team Working

• Quality Circles

Effective Communication

• Committees

• Staff Notices

• Meetings

• Memos

• Reports

• Face to Face

Changing Pattern of Employment

Businesses want as flexible a work force as possible to allow them to react quickly to changes in:

• The Market

• Technology

The need for flexibility in the work force has led to the growth of:

• Part-time workers

• Temporary Workers

• Job Sharing

• Contract Work

Employment Trends

Core Workers:

• These are key workers

• They have the skills necessary for the business to operate

Casual Workers:

• These workers have no job security and are employed only when needed

Job Sharing:

• Where 2 or more workers share the dutries associated with a full time appointment

Teleworking:

• The growth of telecommunications and information technology has made it possible to run an ‘office’ away from the office (eg at home)

Growth of ‘Casual’ Workers

During a recession businesses lay off full-time workers. This is achieved in a variety of ways:

• Natural Wastage

• Voluntary Redundancy

• Compulsory Redundancy

• Redeployment

As businesses expand they often do not employ full-time workers but instead ‘casual’ workers which allows them to:

• Be flexible with reduced labout costs

• Train and motivate core workers only

• Use ‘casual’ workers when necessary

Human Resources

ROLE OF HUMAN

RESOURCES

Recruitment and Selection

Training and Developmen

t

Maintenance of Personnel

Records

Legislation

Employee/Industrial Relations

Grievance and

Discipline