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Summary theme 1 - 1.4 managing people

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A full summary with advantages and disadvantages, images and definitions to all of 1.4 in Business Alevel.

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Varnika RAMJEE


Theme 1: Section 1.4 Managing People

Introduction to managing people

People are the most important asset to a business. They are human resources (HR)

Keys to effective people management:

 Making sure you have the right number of staff with the right skills needed for the job they
are doing and also have experience
 Making sure the staff understand the business culture and are able to meet the production
and customer service requirements

However, these goals may not apply to all business and therefore they will have different
requirements for their staff.

Planning your staff needs

The key components of planning:

 Audit what you have at the moment, how many staff and their skills and include aspirations
like learning a new language
 Analyse the business plan to turn plans into people
 Take into account the changes such as how many will leave to retire, have kids or a career
change?
 Calculate the gaps that need to be filled between now and two years’ time

The process of human resource planning:

 Includes recruitment and selection, training and development, redeployment and
sometimes planned redundancies.

Instilling staff culture and motivation

 When new recruits have been appointed, they need to attend an induction training
programme that focuses on the company’s culture and traditions
 To motivate staff, you can: create reward system to encourage behavior etc

Approaches to staffing



Treating staff as:



…An asset – they are part of the business and also have a say in business decisions and are treated
safely and with respect

…A cost – when employees are just resources and thinking about corporate business planning such
as where do we get resources; what resources are needed and how much they cost?

,Varnika RAMJEE


Flexible workforces mean that the staff are able to work in more areas within their job (multiskilling),
part time and temporary contracts and flexible hours and home working.

Multiskilling – is when workers are given the scope and ability to carry out a variety of tasks, rather
than specializing in one particular areas, which can be encourage through the use of job rotation.
Multiskilling can mean a firm’s human resources can be used more efficiently and ensure employees
have the right skills and can be a replacement I another worker is absent.




Part time – these give flexibility and they are employed usually in rush hours

Temporary – giving short term contracts which makes it easier for the company to cut them

Flexible hours – allows the employee to work around their lifestyle and their schedule, which is ideal
for mothers etc.

Homeworking – when employees are able to work at home

Outsourcing:

 Involves a firm finding an external business to carry out part of the production process in
order to cut costs and achieve a better level o service. This can mean that the quality of the
work can be better

Distinction between dismissal and redundancy:

Dismissal – is when the employee has done something wrong or misconduct which leads to the firm
firing the employee

Redundancy – when the job is no longer needed so employees are no longer needed for that
particular job

, Varnika RAMJEE


Employer- employee relationships

 Intelligent bosses realise that success depends of the full participation of as many staff as
possible

Trade unions – help to protect employees rights and improve their safety and working ways from
health to wages. Their main role is to:

- Protect real income and improve it
- Improve job security
- Better working conditions
- Protect workers under dismissal or other issues relating to employment legislation
- Offers other work-related services like support for people claiming compensation

 Collective bargaining – when the union bargains with the employers for all of the
employees/ workers
 Individual bargaining – when an employee only bargains for themselves

Main methods of industrial action:

- Striking
- Overtime ban - when workers refuse to work overtime
- Go slow – employees work at a slow productive past
- Work to rule – when employees refuses to follow strict rules like volunteering

How the busines suffers from industrial action:

- Loss in sales and profit from loss of output
- Damage for customer satisfaction
- Damage for Internal distraction for management
- Damaged relationship wit staff may affect motivation

How the employee suffers from industrial action:

- Damage for lost pay
- Potential loss in job and cuts costs
- Possible loss of customer and public support
- Risk that illegal action that will result in legal procedures




Recruitment, selection and training

The recruitment process:

 Job description – relates directly to the nature of the position itself rather than the perform
required to fill it. It would typically contain:
- The title of the post
- Details of the main duties and tasks involved
- The person whom the job holder reports and any employees for whom the job holder is
responsible
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