management of people and finance

• benefits of work force planning

  • allows the organisation to analyse the labour market
  • to predict shortages in suitably skilled staff in the future
  • it will allow the business to see when new staff will be required in the future
  • able to identify any training needs
  • many be able to plan for any employees retiring
  • can identify whether or not they should be replaced
• stages of the recruitment process

  job analysis: when a vacancy arises, the tasks and skills for the position are identified. this helps to decide if a vacany needs to be filled or if tasks can be redistributed

  job description: document that states tasks and responsibilities of the job eg pay location hours

  person specification: document with the skills and qualifications needed to do the job. these can be essential or desirable
• stages of recruitment continued

  application form: questions set by the business that is useful for comparing candidates

  CV: summary of a candidates previous employment, education and qualifications
• Elements of Human Resource Management

  • Workforce Planning
  • Recruitment
  • Selection
  • Contract of Employment
  • Training and development
  • Using ICT to train staff
  • Motivation
  • Theories Of Motivation
  • Theories of Leadership
  • Legislative requirements
  • Employee relations
  • Industrial Action
  • Role of technology in managing people
• Workforce Planning


  Having a planned approach to analysing current employment trends, forecasting future staffing requirements, forecasting future supply of workers, forecasting labour turnover, planning to satisfy and motivate employees, planning to develop organisational culture, planning staff training and development, planning processes to release surplus staff
• Categories of human resources

  • Newly appointed staff
  • Potential staff for the future
  • Existing staff
  • Departing staff
• Workforce Planning


  • Must be flexible to react to changing organisational objectives and external factors like changes in the market, technological developments, levels of competition, population trends, trends in trade union membership, government legislation
• Types of workforce


  • Core Workforce
  • Flexible Labour Force
  • Contractors
• Types of working patterns

  • Full time
  • Part-time
  • Flexible Working (Homeworking, Flexi-time, Shift working, Flexitime, Job-share)
• Permanent jobs


  Jobs that last as long as the organisation requires
• Temporary jobs


  Jobs that last for a short time, often called contract work or fixed term contracts
• Advantages of flexible working for organisations

  • Only employ people who contribute directly to core activities
  • Saves on salaries and office space
  • Reduces requirements to pay sickness benefit, holiday pay, pension contributions, redundancy payments
  • Reduces National Insurance contributions
  • Allows flexibility and quick responsiveness to the market
• Disadvantages of flexible working for organisations

  • More money spent on recruitment and selection
  • Potential staff shortages
  • Employees less likely to be committed
  • Increased need for training with high turnover
  • Lack of continuity in personnel
• Recruitment


  The process of attracting and selecting the right people to fill vacancies
• Recruitment process


  1. Identify the vacancy

  2. Job Analysis

  3. Job Description

  4. Person Specification

  5. Advertisement
• Job Analysis


  A study to identify the main features of a job, including physical requirements, mental requirements, skill requirements, areas of responsibility and accountability, physical environment, and hazards
• Job Description


  A document that describes the job title, hours of work, main duties and responsibilities, authority over others, decision making, location, and required qualifications
• Person Specification


  A document that sets out the essential and desirable qualifications, skills, abilities, and experience required for the job
• Person Specification


  Lists the essential and desirable attributes the applicant should have
• Internal sources of recruitment

  Applicants from within the organisation, e.g. promotion, change of job, change of location
• Advantages of internal recruitment

  • Applicant is known to the organisation
  • Organisation may have invested in training the applicant
  • Applicant is aware of the culture and rules of the organisation
• External sources of recruitment

  Advertising in local/national newspapers or specialist publications, using recruitment organisations
• Advertising should describe the job and indicate the type of person required
• Recruitment agencies can provide temporary staff, with the agency being responsible for the employees
• Common places/media for advertising jobs

  • Government job centres
  • Internet/websites
  • Recruitment agencies
  • Local newspapers
  • National newspapers
  • Word of mouth
  • Schools/university careers officers
  • In-house magazines
  • Notice boards in the business
  • Television
• Where to advertise depends on whether the recruitment is external or internal, the advertising budget, and the type of job
• Selection


  The process of choosing the most suitable applicant for the job
• Selection methods


  • Application forms, including letters of application, CVs and telephone applications
  • Interviews
  • Psychological tests
  • Aptitude tests
• Application forms/CVs


  Provide information about the applicant to allow the organisation to assess their suitability
• References are used to check the accuracy of information provided by the applicant
• Shortlisting


  Dividing applicants into 3 categories: Yes (suitable for interview), No (unsuitable), Maybe (possibly suitable)
• Testing may be used to reduce the number of applicants being interviewed
• Types of tests


  • Intelligence tests
  • Personality tests
  • Other psychological tests
  • Medical tests
  • Aptitude tests
  • Attainment tests
• Assessment centre


  A process where a group of applicants are put through a variety of tests and interactions to analyse their performance, team working, leadership and communication skills
• Interviews


  • Should follow a set procedure to give each applicant an equal chance
  • Useful for assessing personal qualities but less useful for assessing technical ability or future potential
• Appointment


  The successful candidate is offered the job, and the HR department informs the successful and unsuccessful applicants
• Contract of Employment


  Contains details of the terms and conditions of employment, which the HR department is responsible for issuing and ensuring are properly applied
• Contract of Employment details

  • Title of the job
  • Holiday entitlement
  • Sickness pay and allowances
  • Discipline/grievance procedures
  • Date employment began
  • Hours of work
  • The rate and payment timing of wage/salary
  • Pension scheme
  • Notice required if employee intends to give up the job
• Permanent contract


  Safe and secure
• Fixed-term contract


  Only for a specified period of time - has an end date