Business (People)

• Management of People


  How people, ie employees are managed contributes to the success of a business. A business needs to employ, train and pay people to help achieve the objectives of the business.
• If staff are happy and motivated in their job they will work hard and stay with the business.
• Recruitment


  Attracting a suitable number of people to apply for jobs within a business
• Recruitment Process


  1. Identify a job vacancy

  2. Job Analysis

  3. Create the Job Description

  4. Create the Person Specification

  5. Advertise the Job Vacancy
• Job Description

  Contains all the main details which relate to a job, e.g. job title, job responsibilities, job purpose and objective, main duties
• Person Specification


  Identifies the main characteristics which the successful applicant will need in order to be able to do the job, e.g. qualifications, experience, skills, interests/hobbies, personality
• Methods of advertising internally

  • Notice boards
  • Email
  • Internal newsletters
  • Intranet webpage
• Internal recruitment


  The job vacancy will be filled by someone who is already working for the company
• Methods of advertising externally

  • Recruitment websites
  • Newspapers
  • Recruitment Agencies
  • Job Centre
  • Social Networking
  • Radio
  • Television
• External recruitment


  A larger range of people can apply for the job, but it is a more expensive form of recruitment than internal recruitment and can lower staff morale as there may be less chance of internal promotion
• Selection Process


  1. Collect CVs/application forms

  2. Compare the application forms to the job and person specification

  3. Creating a short list/leet of suitable applicants

  4. Seek references from previous employers

  5. Interviews on a one-to-one or panel basis

  6. Testing

  7. Selection
• Application forms


  Businesses can use application forms designed to meet their own requirements, containing sections for information such as name, address, telephone number, date of birth, education, qualifications, work history, references
• CVs (Curriculum Vitae)


  Prepared by most job applicants, providing much the same information as an application form, and should be short enough to cover only 2 pages
• References


  Comments on the applicant by someone who knows what the applicant can do, e.g. a previous employer
• Testing


  Can be used before or after an interview to provide additional information as to a candidate's suitability, e.g. attainment tests, aptitude tests, intelligence tests, personality tests
• On the Job Training


  Training arranged within the organisation either by the department manager or an experienced employee who is an expert in the work to be carried out
• Off the Job Training


  The employee will go outside the business to do their training e.g. college, training centre, day release
• Costs of Training

  • Working time and output lost
  • Staff may leave for better paid jobs
  • Staff may request a pay rise
  • Quality of training must be high
• Benefits of Training


  • Staff become more efficient
  • Staff become more flexible
  • Staff motivation and morale increases
  • The image of the organisation will improve
  • Fewer accidents
  • Reduced waste
• Staff Turnover


  Constantly having to advertise and train new staff, which can be expensive
• Working Practices


  The different ways employees can work in terms of how many hours they work and where e.g. at home or in an office/factory
• Working Practices


  • Full time
  • Part-time
  • Job Share
  • Flexi-time
  • Teleworking (Working from home)
• Full time


  Working a full week, for example from Monday to Friday from 9 am to 5 pm
• Part-time


  Working fewer hours than those with full time contracts - for example, 16 hours per week
• Job Share


  An employment arrangement where two people are employed to do the job of one person
• Flexi-time


  Staff have the ability to start work later or earlier or finish later or earlier as long as they work core hours per week
• Teleworking (Working from home)


  Allows people to work away from an office either in the field or at home using technology such as computers, mobile phones, email to stay in touch with the office
• Non-financial methods used to motivate staff

  • Introduce flexible working practices
  • Improved conditions of service
  • Providing training to improve skills
  • Promotion
  • Company car and expenses
• Financial Methods of Paying Employees

  Paying employees. The most important reason people work is to get paid for what they do
• Methods of paying employees


  • Salaries
  • Piece rate
  • Commission
  • Individual bonus
  • Time Rate
• Salaries


  • Paid monthly
  • Employees have the security of a regular amount of money
• Piece rate


  • Employees are paid for the number of items they produce
  • Motivates employees as they know the more they make the more they will get paid
  • Can demotivate staff as the work can be boring and repetitive, products may be rushed and of poorer quality
• Commission


  • Calculated as a percentage of the product sales value
  • Motivates employees as they know the more they sell the larger the commission will be
  • Can be demotivating if staff cannot make any sales and so get no commission
• Individual bonus


  • Payment added to basic wage when employees meet agreed targets
  • Motivates employees to work harder to get a bonus
  • Staff may be demotivated if they do not meet the bonus criteria
• Time Rate


  • Employees paid by the hour
  • Higher standard of output
  • The more hours worked the higher the pay
  • Working less hours means less pay
• Types of industrial action

  • Sit in
  • Overtime ban
  • Work to rule
  • Go slow
  • Strike
• Employer actions during industrial action

  • No overtime
  • Lock out
  • Close
• Impact of Industrial action


  Negative effects on a business such as

  •lost production lost customers, poor image and reputation
• Impact of Industrial action


  Demotivated workforce mean

  •less work is being done

  •reduced wages meaning bills cannot be paid

  •may lose experienced staff
• Impact of Industrial action


  Poor reputation meaning customers may not buy and potential employees might not apply, loss of production meaning orders cannot be filled meaning loss of sales, customers may go to a competitor