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BUSINESS MANAGEMENT

3.2 How do people Contribute to Business?

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Why do people Work?

• To make money• Be creative• For job satisfaction• The social element of work• Job security• To make progress or use their talents

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How do you choose the right person for the job?

– Qualifications – Ability– Personality– Appearance– Attitude– Talents– Experience– Team Player

Qualities

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Types of Worker• Manual workers

– unskilled labour

• Blue collar workers– semi-skilled labour who carry out

repetitive tasks

• White collar workers– Non-manual workers, eg civil servants,

bank clerks.

• Professionals– Doctors, lawyers, teachers

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Working Hours• Full-time

– Normally working Monday – Friday 9.00 am to 5.00 pm.• Part-time

– Working for part of the week, certain hours to suit the individual and organisation

• Permanent– This is where the employee works for as long as the

organisation is in business, provided they have not been “sacked”. Can be full-time or part-time.

• Temporary– Where work lasts only for a fixed or limited time, eg 2 weeks, 2

years or 3 days for one year. • Casual

– Workers are taken on when needed – no contract

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Working Hours cont• Flexi-time

– Working to your contractual hours, eg 35 per week and being in the “office” at core times. You can choose when you work outwith the core time.

– Employees have more control over their time. Can also plan “personal appointments” without time off.

– Core time, everyone works as a team. • Shift work

– Usually seen in the secondary sector where machinery is used for production. Also seen in public services, eg Police, Nurses, Fire Brigade. Work can be day shift, back shift, night shift or might involve two weeks on, one week off.

• Job Share– Where 2 employees share the same resources and work space

to carry out a full-time job.

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Types of Job Training

• On-the-job training

Being trained while you work, eg as a chef

• Off-the-job training

Going to college or training centre

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Types of Trainingo Induction – training given to someone

starting a new job, eg health and safety, introductions, learning about the organisation

o Upgrading Skills – Receiving further training for your job to learn how to do something new

o Re-training – training for a completely new job

o Apprenticeship – training occurs in the workplace mainly but some external training at college or training centre eg 1 day a week.

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Recruiting – Getting people to apply for a Job

Job Analysis Job Description

Person Specification

Application Forms sent out

Place Job Advert

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Job Description/Specification – allabout the job

Job Description:

•Job Title•Salary•Conditions•Holidays•Duties/Respons•Location

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Person Specification – Essential and Desirable Qualities and Qualifications

Person Specification:

•Skills and QualitiesQualificationsSkills required

•ExperienceEssential/Desirable

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Job Advert

Job Advert:

•Name•Duties•Salary•Type of contract

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Application Form

Application Form:

Used to collectcomparable information from all Applicants. Canbe done on-line

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Selection – Choosing the right person from among the

ApplicantsBusiness receives

application forms or CVs

Forms studied and checked against Job and

Person Specifications

Short-list of applicants is

drawn up

Interviews and Proficiency tests are carried out

Final candidate is chosen and offered

the job

Contract of Employment is

issued

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Contract of Employment• A written agreement between an employer and

an employee, which must be received within 13 weeks of starting work. The Contract should include:o Job titleo Date job startso Hours of worko Rate and method of paymento Holiday arrangementso Period of notice (if terminated by either party)o Pension scheme arrangementso Rights to Trade Union representationo Details of the organisation’s disciplinary procedure

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Methods of Recruitment - Internal

Internal (within the organisation)MemosStaff BulletinsNotice Boards

e-mailIntranetStaff announcements

Advantages Disadvantages•Cheap – no cost involved•Staff will know the procedures•Increase staff morale •Quicker than advertising outside

•No new blood coming into the organisation•Limited applicants

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Methods of Recruitment - External

External (outwith the organisationICT – on company websiteNewspapers and magazines (eg Nursing Times)

Agencies – Job Centre or Employment Agencies

Advantages Disadvantages•New blood coming into the organisation with new ideas•Wide variety of applicants•Agencies may carry out interviews as well saving time

•Time consuming•Can be expensive – cost of adverts•New staff will need lots of training in company procedures

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APPRAISAL

• The Appraisal Interview:– This is carried out annually usually by your

Supervisor or Line Manager– Should be positive– Will set achievable targets and target dates– Identifies strengths – Identifies areas where training may be

required– Praises good work

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AppraisalAdvantages Disadvantages

Helps to identify training needs

If feedback is given in a negative way, this may discourage employees and may reduce output or increase staff turnover

Helps to identify employees onto the “promotion ladder”

May cause the Job Specification to be altered, thus increasing the workload

Positive feedback is used to increase motivation

May cause “friction” between the appraisor and the appraisee

Encourages employees to build on their strengths

Encourages self-actualisation

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Inter-relationship between employers and employees

• Needs to be 2-way communication

• Accountability on both sides (rights and duties)

• Teamwork• Training courses• Role and responsibility

of each other’s job

Sometimes, however, there are disputes, leading to the need for …

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TRADE UNIONS

This is an organisation which represents employees. The main aid is to improve the working terms and conditions of its members eg•Wages•Annual leave•Sickness benefits•Dismissal

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WHAT IS INDUSTRIAL ACTION?

• If relations break down, sometimes employees and unions decide to take industrial action

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Picketing

• This is when Union members who are on “strike” stand outside their place of work and try to persuade other employees not to cross the picket line.

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Go-slow

• This is when employees deliberately slow down their work rate, ie produce less.

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Work-to-rule

• This is when employees follow exactly what they are supposed to do in their contract of employment – this can slow down production.

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Overtime ban

• This is when employees only work the hours stated in their contract of employment

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Strike

• Official Strike– When employees do

not come into work, ie withdraw their labour as directed by their Union.

• Unofficial Strike– As above, but without

the approval of their Union.

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Advantages And Disadvantages Of Industrial

ActionDifficulties With Industrial Action • Industrial action creates several difficulties for businesses: • Production is lost sales are lost and business might fail• The businesses reputation is damaged• Employer, employees relationships become strained

Benefits Of Industrial Action • Industrial action can be useful in the long run:• Grievances are 'out in the open' so the employer, employee

relationship has an opportunity to improve• New procedures can be introduce that avoids conflict in the

future• Management objectives can be altered to include

consultation and participation by the work force

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What is ACAS

Strike action is damaging to businesses. 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

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To Promote Good Relationships …Employees feel more secure if they feel they can participate in decision-

making:

Team Working - Here employees are responsible for achieving targets they helped to establish and for which they get recognition. Employees are participating in the decision making process while working in a team.

Quality Circles - Here employees pool their experience and expertise to examine problems and suggest solution. This will create a feeling of worth in the employee.

Works Councils – employees and managers work together to discuss working conditions

Employees will feel secure and part of the business if management:Treats them as people Involves them in the decision makingConsults them about future plansRecognises good performanceEncourages training

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LEGISLATION

• Why do we need legislation?

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Legislation at work

• The Factories Act

• The Equal Pay Act

• Contract of Employment Act

• Health and Safety @ Work Act

• The Sex Discrimination Act

• The Race Relations Act

• Disability Discrimination Act

• The National Minimum Wage Act

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The Factories Act, 1961

• This act governs businesses that use machinery.

• However the act ONLY included businesses that came under the term “factory”.

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The Equal Pay Act 1970

• Equal Pay for both men and women who are doing exactly the same work or work that is equivalent or of an equal value.

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Contract of Employment Act 1972

• A written agreement between an employer and an employee, which must be received within 13 weeks of starting work. The Contract should include:– Job title– Date job starts– Hours of work– Rate and method of payment– Holiday arrangements– Period of notice (if terminated by either party)– Pension scheme arrangements– Rights to Trade Union representation– Details of the organisation’s disciplinary procedure

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Health and Safety at Work Act, 1974

• The Act puts responsibility on both the employer and the employee

• The employer has a duty to keep the workplace safe and secure

• The employee has a duty to keep it safe and follow safety rules

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The Sex Discrimination Act 1975 and 1985

• Ensures that both men and women are treated equally in the workplace irrespective of gender or marital status. Employers cannot discriminate on:– Selection procedure

– Terms of employment

– Opportunities for training and personal development

– Benefits

– Redundancy

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The Race Relations Act 1976

• This is similar to the Sex Discrimination Act and set out to ensure that both men and women are treated equally in the workplace irrespective of their ethnic minority.

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Disability Discrimination Act 1995

• This is similar to the Sex Discrimination Act and set out to ensure that both men and women are treated equally in the workplace irrespective of their disability.

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The National Minimum Wage Act 1998

• This act was brought out to protect employees between the ages of 18 to 21 and to ensure that they received a “fair day’s pay for a fair day’s work”, and were not being exploited.

• It also states what amount of money this age groups should receive per hour they work.

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CHANGING EMPLOYMENT PATTERNS

• Increase in temporary staff

• Decline in manufacturing industry eg shipbuilding

• Increase in service sector (decrease in secondary sector) which may involve re-training.

• Increase use of Information Technology resulting in job losses.

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• Due to new developments of IT, more people working from home– Homeworking: decreases office space required and suits many

workers– Teleworking: employees can communicate with the office using

ICT

• More female workers in employment• More opportunities for working:

– Core workers: full-time, permanent– Casual workers: temporary staff– Job sharing: 2 workers sharing the same job, work space,

resources and tasks– Flexi-time: working within a set time and choosing remaining

hours to suit

CHANGING EMPLOYMENT PATTERNS