GCSE Business Studies Revision Guide (CHAPTER 5)

CHAPTER 5

Human resources

Pay and Benefits

Paymant for work is uaually in money, but it can be in other forms, such as discounts or 'perks'.

-wages

The most common way for a business to pay its workers. Usually weekly, and based on:

• time rates
• piece rates
• contract rates

-salaries

Salaries are usually quoted as an amount per year. A salary is normally paid in monthly instal-workers.

-perks

Business can decide to pay workers in other ways. 'Perks' are additional benefits that come with a job and form part of the pay package.

-profit sharing

One way to pay workers extra is by letting them share in the profits of the business. This is aslo helps to motivate workers.

-How much is a job worth?

The general level of pay for a job is decided by a number of factors. These include the following:

• Education
• Training
• Unique skills
• Conditions.

Recruitment

Recruitment is the process by which a business finds new staff. There are reasons why a business might need to recruit new staff:

• The business might be growing.
• Staff could have left.
• The business may need new skills.

-Internal or external

The business has to decide whether to recruit from outside the business(external) or to train its own staff(internal).

• It identifies the job that needs doing.
• It writes a job description to show what tasks, skills and qualifications are recruit.
• It writes a person specification to show the type of person it needs to recuit.
• It can then advertise vacancis.

-The law

Business must conform to the law. Advertising( and the whole process of recruitin ) must be fair and open; all groups must be treated equally. People who apply for a job are called 'applications'. They can do this in a letter of application or providing a CV( curriculum vitae) that shows they can do the job.

-Selection

• It looks at applications and CVs and chooses the applicants it thinks are most likely to be good at the job. This is called the short list.
• Short-list applicants are invited to interview. People coming to an interview are called 'candidates'.
• Interviewers could be one-to-one, or in front of a panel.
• After the interviews, the preferred candidate is offered the job.

Training, development and appraisal

Training is the process of making sure that workers in a business have the knowledge and skills necessary to do the job. Training is seen as being of more benefit to the worker. Development is different from training. It is seen as being of more benefits to the worker -- developing his or her own skills and knowledge.

-Training

1.Induction training

All new appointments to a business require some from of induction training. This is training to introduce staff to the workplace and the job. It includes basic training in processes and methods and also let the new employee know what is usual in the business.

2. Further training

• on-the-job training training, which happens at the place of work
• off-the-job training, using an external trainer, off site.

-Appraisal

Appraisal is the process used to see how well a worker is doing. It also allow the worker to exchange view with his or her employer. Appraisal can help to identify where progress has been made.

Rights and reponsibilities at work

-Health and safety

The main law regarding health and safety is the Health and Safety at Work act,1974.

-Basic employment rights

• Safe, healthy and resonably comfortable working conditions.
• Protection from danger in the workplace
• breaks and holidays

-Rights in law

• They are entitled to a written statement giving rates of pay, terms and conditions of employment, pensions, notice periods, disciplinary procedures and so on.
• They are entitled to join a trade union
• They are entitled to the minimum wage
• They have the right to an itemised pay statement
• They have the right not to be unfairly dismissed and are entitled to a written statement of the reasons for their dismissal.
• They have the right to redundancy payments.
• Employees and employers have the right to a minimum notice period on either side.
• Woekers also have the right, under EU laws, to take part in the management of the business for which they work.

-Equality

The law states that in all matters of recruitment, selection,etc, there should be no discrimination. The main laws are as follows :

• Equal Pay Act, 1970.
• Sex Dscrimination Act, 1975.
• Race Relations Act, 1976.
• Disability Discrimination Act, 1995.
• Age Discrimination Act, 2006.

Industrial relations

I

ndustrial relations refers to the relationship between the emplyer/emploter's representatives and the employee/employee's representatives.

-Collective bargaining

Employee groups and employers oftern negotiate on pay and conditions fo work. Because these negotiaions take place between representative of groups, they are called collective bargaining.

-Industrial action

1. Employees

• Strikes
• overtime bans
• working to rule
• go-slows

2. Employers

On the employers' side, those in dispote may, in certain cases, be dismissed or the employer may refuse to allow them to work(a'lock out').

-Laws

• advise
• conciliate-try to get two sides to agree
• arbitrate-make a ruling between the two sides

Motivation

Motivation involves persuading people to do something because they want to--generally, because they can see a benefit from the action from the action.

-Motivation theory

• Maslow---a hierarchical pyramid
• Herzberg--praise & pay
• McGregor--Theory X(treats) & Theory Y(trust and responsibility)

p.s The next one is Emin!