1.4 Managing People

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1.4.1 Approaches to staffing

Staff as an asset: 

  • Seen as a valuable reasouce capable of developing weither by themselves or training.
  • Doing so their value to the business increases and they become more efficient. 
  • While there are short term costs, investments in staff are more li9kely to be productive and cost affective in the long term.

Staff as a cost or liablility:

  • Labour is sen as a reasouce to be used as cheaply as possiable. Pay may be at the minuim wage and zero hour contacts to keep costs low. 
  • Some business prefer outsoucing work and having it carried out abroad for cheaper labnour costs. 
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Flexiable workforce:

  • A flexiable workforce can apapt quickly: There may be a sudden change in demand nad emplyoes whave to react to this. This makes employees to move easily from on task to another. 
  • In current competative markets must be able to think on their feet; Restrictive hours and lack of flexability lead to an increase in production costs and reduce competativeness. 


Is the practice of training employees so that they have the ability to do a range of tasks, or of recruiting employees who have several skills. 

  • Staff absances can be covere easily without any loss 
  • The business can respond to unexpended changes in demand or special orders. 
  • The business becomes much more flexiable. 
  • Employees may find their jobs less tedious 
  • Provides a competative advantage in a fast moving dynamic economy.
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1.4.1 Approaches to staffing

Flexiable hours:

Allows employees to work a number of hours in a given time period. But mostly there are no fixed hours when they have to be on site. 

Zero-hour contracts- The employer doesnt have to provide the employee with any particular working hours. The employee isnt obliagted to accepts any hours offered. It ensures flexability but doesnt offer any security. 

Part-time working: Many businesses aren't suited to full time staffing. Demand varuies depending on time of day and season. Usually used by farmers or pubs when they need it. 

Outsoucing- Refers to the situation where a business takes or processes are undertyaken by an external provider either overseas or local. 

  • This ranges from highly skilled labour or simple services such as office cleaning. 
  • Providers may be more experienced or more cdompetative at pricing. 
  • However business doesnt have any control over prodcution methods and requirs.
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1.4.1 Approaches to staffing

Dismissal- A worker is told to leave their job because their behavour is unsatisfactory and they have repeatedly fasiled to work to required standards. 

  • Dismissal has to be fair and correct precedures must be followed. 
  • A summary dismissal occurs when an employee is dismissed instantly, wihout notice or pay in lieu of notice due to gross misconduct. 

Redundancy- Occurs when a worker is told to leave their job because their skills are no longer required. 

  • Is not the fault of the employee.
  • Can be volantary or compusary. 
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1.4.1 Approaches to staffing

Individual Approach- Benfits employees with scarce skills find that they can benefit from dealing independently with their employees.

Collective bargaining- Suits employees in large where the employer is likely to treat all employees the same.

Trade Unions- Exist to represent employees in situations where group group action is more effective any individual can be. Includes teachers

Usually focus on pay working conditions and working hours.  

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