Slides in this set

Slide 1

Preview of page 1

People in Organisations
Revision…read more

Slide 2

Preview of page 2

· Methods: Communication is transferring information from one part of the business to another that leads to some outcome,
changed behaviour or changed practice
· Formal Communication : Established and agreed procedures
· Informal Communication: Channels not formally recognised ­ `the grapevine'
· Methods - Verbal - Face to Face - Written - Electronic - Visual - Audio - Group meetings - Notice
boards - Text
· Motivation and Communication
· If employees are well motivated this can impact communication as they are more likely to speak to senior employees. Poor
levels of motivation are likely to have a negative impact on communication. Communication and motivation are related ­ if one
increases it is likely to have a positive impact on the other
· Effective Communication
· Effective communication has the following benefits:
· - It makes change easier ­ this is particularly important to businesses who are in industries which are changing rapidly - It
increases commitment from employees - It increases coordination - It helps ensure that all employees are
working towards the same objectives
· Barriers to Successful Communication
· Ability of the sender ­ how much the sender understands of the message they are trying to send
· Content ­ including technicalities and jargon
· Method of communication ­ including style and body language where appropriate!
· Skills and attitude of the receiver
· Organisational factors ­ complexity of the organisation, scope of the organisation
· Cultural attitudes
· Perceptions, prejudices and stereotypes
· Inappropriate target for the message
· technical capabilities ­ ICT
· How to improve Communication
· Communication can be improved by: - Staff training in communication skills - Keeping information to a minimum -
Increasing awareness of cultural and linguistic differences
· Difficulties for larger organisations
· As organisations grow they often experience problems with communication which can lead to diseconomies of scale
· These may be caused by: - Communication overload - Too many levels in the hierarchy - Decentralisation
· Larger organisations need to manage communication to ensure it is effective
· They can use ICT to speed up communication throughout the business
· Clear messages need to be communicated down the chain of command…read more

Slide 3

Preview of page 3

Introduction: Employee and Employer Relations describes the relationship between workers and employers in
· Why is it important? Motivation Reputation : Potential customers, investor and staff Output
Efficiency Profit levels
· Collective v Individual Bargaining
· In the nineteenth century workers used to negotiate their own pay and conditions with their employers. This
was known as Individual bargaining
· Collective bargaining occurs when workers allow the union to negotiate on their behalf.
· Negotiations can be with an individual employer or an employers' association.
· Different Approaches To Employee Relations
· The workforce is becoming increasingly flexible with an increased emphasis on part-time and temporary
workers and against full-time permanent workers
· A flexible work force is cheaper for firms, allows them to meet changes in demand, reduces training and allows
for specialisation
· However there is less security, communication may be problematic and turnover is higher
· Salaries vs. Wages: Full time salaried workers tend to have more "rights" and job security than part time
temporary workers
· Employee Participation & Industrial Democracy
· Employee participation ­ workers being involved in business decision making
· Industrial democracy ­ the methods which workers can influence business decisions
· Work Councils: These are forums where workers and management meet to discuss issues concerning work e.g.
working conditions, pay, training. Usually members are elected. Often used where there are no trade unions
· Employee Shareholders: Where workers can gain shares in the company. There are tax benefits. Idea is by
owning shares performance and motivation of the workforce increase
· Autonomous work groups: This is where teams of workers have a high degree of control. Authority has been
delegated from senior management. Basis of groups is that motivation and productivity should be increased
· Team Working: Teams are responsible for a specific part of the production process. This can help increase
motivation. Team working is compatible with democratic leadership
· Quality Circles: This is when groups of workers meet to talk about ways to improve quality of products. Usually
a group of 3-10 workers who meet for 1-2 hours 2-3 times a month. These often provide imaginative solutions
to business problems…read more

Slide 4

Preview of page 4

Trade Unions: The Role of Trade Unions
· 1. Craft unions represent skilled workers from one occupation 2. General unions representing mainly unskilled workers from
many occupations e.g. TGWU (Transport and General Workers' Union). 3. Industrial unions representing mainly workers in one
industry. E.g. NUM (miners' union) 4. Professional or white-collar unions representing skilled workers in mainly service
industries. E.g. NUT (teachers' union).
· The Aim of Trade Unions: Improve the pay of workers. Improve working conditions and secure longer holidays.
Protect members' jobs. Provide local, social and welfare facilities. Influence government policy
· The Trades Union Congress (UK): Made up of over 90 unions representing more than 9 million members. An annual conference
decides overall union policy and elects the General Council. The General Secretary of the TUC is the trades union spokesman in
any negotiations with the government or employers' organisations.
· Disputes & Restrictive Practices: Disputes can arise over pay, working conditions, redundancies etc
· Restrictive Practices may then follow such as: - A closed shop - union insists all workers are T.U members - Demarcation
when a union insists that only their members do certain jobs
· Industrial Action
· If negotiations break down Unions can:
· - Work to rule :do the bare minimum - Impose an overtime ban - Strike and refuse to work altogether - Picketing: ask
other members not to enter - `Blacking': Refusing to deal with certain employees or suppliers because they have refused to
participate in Industrial Action - Employers can operate a lockout and refuse workers entry or they can dismiss striking
workers for breach of contract
· ACAS (UK): Arbitration is when employers agree to an independent referee to try to find common ground. Advisory Conciliation
and Arbitration Service (ACAS) has been available to help solve disputes. In the 1980s and 1990s there have been an increasing
number of single-union agreements where employers negotiate with only one union
· Employment Law (UK)
· Individual Labour Law
· Looks at the rights and responsibilities of individuals:
· Equal Pay Act 1970 ­ both sexes treated equally re: pay, Sex Discrimination Act, 1974 ­ cant discriminate on grounds of sex or
marital status, Race Relations Act, 1976 - cant discriminate in relation to colour, race, nationality or ethnic origin, Disability
Discrimination Act, 1994 ­ cant discriminate due to disability, Working Time Regulations, 1998 ­ this sets a limit on the number
of hours worked per week
· Collective Labour Law
· Looks at the operation of trade unions, industrial relations and collective bargaining:
· Employment Act 1980 ­ employees aren't obliged to negotiate with unions, Trade Union Act 1984,Employment Act 1982, 1988,
1990, Trade Union Reform and Employment Rights Act, 1993, Minimum Wage Act, 1998, Employment Relations Act, 2000
· Impact of Employment Legislation : There are positive and negative impacts. Can act as a motivator to the workforce. Reduction
in power of trade unions has increased workforce flexibility. Foreign investment has increased as legislation is employment
friendly. Increases costs. Businesses need to employ non productive workers to manage the policies. These effects can be more
detrimental on smaller firms…read more

Slide 5

Preview of page 5

Human Resource Management
· Introduction: Human resource management looks at the best way to use a businesses personnel HRM covers: Workforce
planning Recruitment and selection Training Appraisal Motivation and employee rewards
· Hard Human Resource Managment (HRM) ­ employees are treated as a resource, aim to pay them as low as possible, they
need to be controlled
· Soft HRM ­ Employees are the most valuable asset of the business and they need to be developed to ensure they are being used
· Workforce Planning: Businesses need to look at future labour needs. They have to ensure they have the right amount of
workers with the right skills and experience. Managers draw up plans looking at the number and type of workers who they want
to recruit. Also conduct a skills audit so they are able to establish skills and experience of current workers
· When planning the workforce managers need to know: - Sales forecasts for at least the next year - Employee turnover
figures - Projected wage levels - Technological developments - Changes to laws impacting the working week
· Recruitment & Selection
· Introduction: This is the process of filling an organisations job vacancies by appointing new staff. Job descriptions and person
specifications are drawn up at the beginning of the process
· Person Specifications: These set out the qualifications and qualities required in an employee. These refer to the person and not
the post
· They include: - Educational and professional qualifications required - Character and personality needed - Skills and
experience wanted
· Job Description: These relate to the position available. They list the duties and responsibilities associated with a specific job
· They include: - The title of the post - Employment conditions - Some idea of tasks and duties
· Internal Recruitment: is where a business looks to fill a vacancy from existing staff
· Advantages Employee has awareness of a firms culture Candidates may not need induction training Provides promotion for
workers Avoids expensive advertising Selection can be easier as know about candidates
· Disadvantages Limited skill base May not be as high quality as external candidates especially for senior jobs External
Recruitment External recruitment is where a business looks to fill a vacancy from individuals outside the organisation
· Advantages
· Can attract a more diverse group of candidates who bring fresh ideas to the business Increase in variety of skills
· Disadvantages
· Can be very expensive Know less about the candidates…read more

Slide 6

Preview of page 6

Methods of External Recruitment
· There are a number of methods:
· External advertising ­ the business advertises for the employee directly Headhunting firms ­ these firms
identify suitable candidates from competitors for a fee Job centres Employment agencies ­ match jobs
and candidates for a fee Training schemes (government) this is lower risk and cheaper
· Recruitment Process
· Overview of Process
· Position is advertised externally / internally Send out application packs Receive candidate applications
by closing date Candidates applications are compared against the person specification those with the best
fit are invited for interview At interview the job description is used to form the basis of the questions
· Selection: These are the techniques used to decide who is right for the job
· They include: - Interviews - Psychometric tests - Assessment centres which can include: Role plays &
Simulated work environments
· Interviews: Interviews are the most popular form of selection
· They can involve one or more interviewer They are a relatively cheap method They can be unreliable as
they don't give a valid picture of how someone will perform on the job
· Training
· Training Needs: Training is the provision of work-related education, either on-the-job or off-the-job, involving
employees being taught new skills or improving skills they already have.
· Training is often a response to an internal or external change for example
· - The development and introduction of new products - Restructuring of the firm - The development
and introduction of new technology - Changes to procedures - High labour turnover - Low morale -
Changes in legislation
· Induction Training
· Education for new employees which involves learning about the way the business works
· It helps to:
· - Reduce turnover
· - Increase understanding of culture
· - Increase motivation
· - Mean employees contribute to organisation more quickly…read more

Slide 7

Preview of page 7
Preview of page 7


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »