Human Resource Management

1. Human ResourceManagement Higher/Int 2 Business Management 2011-2012 (Part 1)

2. What are Human Resources? • The entire workforce - Managing Director to part-time Cleaner • Each person being employed to perform specific functions which play a part in the success or failure of the organisation

3. Human Resource Management • Human Resource Management refers to that part of an organisation’s activities designed to: • Attract • Train • Develop • Maintain an effective workforce • HRM more strategic and integrated than previous ‘Personnel Management’

4. Objectives of HRM • Promote a policy of continuous learning and staff development • Recruit, develop and retain people with appropriate skills and attitudes • Manage employee relations (one to one and collective) • Design, implement and manage remuneration systems to motive staff • Maintain and improve the physical and mental well-being of the workforce (conditions and H&S) • Take account of all government legislation relevant to HRM

5. Abraham Maslow’s Hierarchy • Self-actualisation - needs filled through self-fulfillment, more responsibility, ownership shares, self-employment • Esteem - self-respect, recognition, promotion, awards, title, size office/desk • Emotional - love, belonging, teams • Safety - job security, trade unions, laws • Physiological - food, clothing, shelter, warmth

6. Management of People • Theory X - Workers are motivated by money, they are lazy, selfish, ignore the needs of the organisation, avoid responsibility, lack ambition. They need controlled and directed by management. • Theory Y - Workers have different needs, they can enjoy work. If motivated they can organise themselves and take responsibility. Managers should allow creativity to be shown.

7. Workers need to feel safe and secure. An unsafe working environment will not motivate workers to work, and to work well, nor will the possibility of being made redundant. I’m no gonna work for this firm again, cos a goat a sair heid. What’s the point of working, I’m going to lose my job anyway

8. Increasing Motivation • Quality Circles - meet regularly to identify, analyse and attempt to solve work-related problems • Job Enlargement - increased number of tasks, jobs less repetitive, organised into groups and trained to be multi-skilled - job rotation • Job Enrichment - giving workers opportunities to choose how to complete a particular task, usually as part of a team

9. The HRM Function (1) • The Executive Role: the expert department in matters related to HR – legal requirements, information provision • The Audit Role: monitors organisation activities • The Facilitator Role: helps others to acquire HR skills eg grievances, equal opportunities, planning • The Consultancy Role: providing advice and guidance • The Service Role: provider of useful information eg changes in legislation

10. The HRM Function (2) Levels of Management • Strategic: long-term planning policies, guidelines, culture of organisation • Tactical: pathways to strategic objectives planning, recruitment, training, development, industrial relations • Operational: day-to-day (training) identify possible employees, select suitable employee, arrange cover, develop materials

11. Potential Staff HRM Planning • Current Employment Trends • Staffing Requirements • Future Supply of Workers • Labour Turnover • Satisfy and Motivate Employees • Organisation Culture • Training and Development • Release Surplus Staff New Staff Existing Staff Departing Staff

12. Changing Patterns of Employment (1) • Increase in part-time work • full time staff led to inflexible workforce • Increase in service sector employment • coal, steel and shipbuilding no longer significant • Increase in public sector employment • 30% of Scottish workers employed in this sector • Increase in women working • Special arrangements: flexi-time, job-share, child-care • Increase in home/teleworking • Improvement in communications

13. Changing Patterns of Employment (2) • Part-time work - in most cases voluntary decision • Variable hours - overtime or flexi-time systems • Temporary work - fixed-term, seasonal, casual or agency work • Downsized - now bringing workers back on a fixed-term or project basis for experience • Self-employment - now represent about 13% of workforce, route for those in unemployment and low pay and source of jobs for others

14. 3 ‘Types of Workforce’ • Core workforce - those essential to the business, giving the expertise. They are given good terms and conditions of employment • Flexible Labour force - part-time or temporary basis eg during peaks in activity. Not employed when there is no demand for services • Contractual fringe - sub-contractors eg cleaners, consultants, component suppliers. No need to pay for pensions, holidays etc

15. Advantages (Non-Traditional Workforce • Only employ those contributing to core activities • Saves salaries • Saves office space • Reduces need to pay sickness/holiday benefits, redundancy payments, NI contributions • Flexible staffing numbers relating to the market

16. Disadvantages(Non-Traditional Workforce) • Cost of Recruitment and Selection • Staff shortages in certain areas • Less commitment from workforce • Increased training (esp induction) • High staff turnover • Lack of continuity in personnel