BUSINESS MANAGEMENT

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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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people person
patience
medical degree
experience in surgery
good health
dance certificates

• confident

fit
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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 Training

• Induction training given to someone starting a
  new job, eg health and safety, introductions,
  learning about the organisation
• Upgrading Skills Receiving further training for
  your job to learn how to do something new
• Re-training training for a completely new job
• 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 Qualities
• Qualifications
• Skills required
• Experience
• Essential/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 collect
• comparable
• information
• from all
• Applicants. Can
• be done on-line

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Selection Choosing the right person from among
the Applicants
Business 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
• 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 organisations disciplinary
  procedure

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Methods of Recruitment - Internal
Internal (within the organisation) Internal (within the organisation)
Memos Staff Bulletins Notice Boards e-mail Intranet Staff 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 organisation External (outwith the organisation
ICT on company website Newspapers 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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Appraisal
Advantages 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 others 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 Action

• Difficulties 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 making Consults them about future
plans Recognises good performance Encourages
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 _at_ 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 organisations 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 days pay for a fair days
  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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CHANGING EMPLOYMENT PATTERNS

• Due to new developments of ICT, more people
  working from home
• More female workers in employment
• Many employers employ large numbers of temporary
  staff and a few core staff (full-time, permanent)
• ICT means more technology and fewer workers

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CHANGING EMPLOYMENT PATTERNS FLEXIBLE WORKING

• 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
• Homeworking decreases office space required and
  suits many workers
• Teleworking employees can communicate with the
  office using ICT

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FLEXIBLE WORKING GOOD OR BAD?
Advantages Disadvantages
Staff spend less time and money travelling Lack of social contact for staff
Staff can work when it suits them Staff may feel isolated from decision-making
Employers keep valued staff if they are happy Less easy to communicate with staff
Staff more productive so bosses happier Can be difficult to provide ICT equipment and support
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HOW CAN EMPLOYERS KEEP VALUED STAFF STAFF
BENEFITS?

• Provide opportunities for training and promotion
• Provide flexible working which will suit employee
  lifestyle (eg people with families)

• Provide benefits such as
• Discounts
• Creche
• Health club membership
• Free medical treatment
• Canteen
• Staff discount
• Staff social events
• Awards
• Bonuses
• Profit share
• Pay rises
• Additional holidays