1.4.1 Approaches to Staffing

As an Asset / Cost

Asset

  • Soft human resources management
  • the business invests in its staff
  • lets them contribute to decision making

Cost

  • Hard human resources management
  • no decision making power
  • seen as just a number

Advantages

  • staff are more motivated
  • greater staff retention
  • easier to recruit
  • lower staff absence

Advantages

  • a more cost effective workforce
  • faster decision making

Disadvantages

  • employee benefits add up, may lead to a competitive disadvantage

Disadvantages

  • higher staff turnover
  • harder to recruit
  • higher staff absence
  • less motivated staff

Flexible Workforce

Multi-skilling

Outsourcing

Flexible hours and home working

Part time and temporary

Disadvantages

  • Potential loss of production due to workers switching between tasks
  • More training needed = higher costs
  • Workers may be reluctant to learn new skill (if no more £££)
  • The training and knowledge to carry out a multitude of tasks within the workplace instead of just specialising in one specific area
  • Encouraged through job rotation

Advantages

  • Increases in productivity
  • Less disruption from staff absences
  • More motivation created by varied challenges at work
  • An external firm does part of the production process for the business
  • Using agency staff, temporary contracts, subcontracts to outsource certain business operations

Advantages

  • Enable responses to sales increases like increasing the workforce and reducing it just as fast when the sales drop
  • Can cut costs

Disadvantages

  • Productivity may suffer due to a lack of worker expertise and loyalty to the business
  • Home worker - partly at home and in the office
  • Flexible hours - e.g. for parents or partly retired workers

Advantages

  • Helps with family commitments
  • Improves the recuitment process
  • Increases staff motivation
  • Reducing labour turnover
  • Boosts productivity

The need for flexibility

  • Constant improvements in technology
  • Dynamic markets
  • Increased competition
  • To reduce unnecessary costs
  • More flexibility for businesses
  • temp work - means a firm can easily cut down staff if needed after seasonal booms for example
  • However means less job stability for employees

Dismissal vs Redundancy

Dismissal - being sacked from a job due to incompetence or breach of contract / discipline

Redundancy - when a job role is no longer required, the employee looses their job through no fault of there own

Employer / Employee Relationships

Individual approach

  • Boss has a stronger position over the business
  • Decline in union membership
  • Weak bargaining power means workers today are worse off than 30 years ago

Collective Bargaining - Trade Unions

  • Organisation's employees pay to join
  • Have a lot of power and influence as a collective
  • Bargin with the employer on behalf of the employees