People in Business - Unit 1

Firms should describe the job and the ideal candidate:

The job description explains what the job involves (it contains the title, purpose, and duties) and if is full (more expensive but there all the time) or part time (cost less, better motivated). The person specification lists the qualifications, experience and attitudes the ideal candidate would have (some are essential but some are only desirable)

Personal reccommendations can be useful as it reduces costs for small businesses. 

A firm will advertise the job to get people to apply. Advertsing internally is cheaper and the job can be filled faster but there is no "new blood" and it leaves another vacancy. If it is advertised externally there will be a wide range of applicants but usually only high-end jobs are advertised nationally. 

Some firms have a HR department who look after the people. They organise recuitment (this includes job descriptions and job advertisments). Some firms use agencies who speicalise in this. Headhunters seek out candidates who work for other businesses but they are very expensive so they are only used for senior positions

First candidates explain why they are right for the job. This is often done with a CV this is a summary of a someones skills, qualifications, and interests. Some firms use appliaction forms which give the firm the information it wants and nothing else. The shortlisted candidates are asked for a reference these are usually confidential.

The shortlisted candiates are invited for an interview, interviewers ask the same questions to all candidates so it is fair. Interviews assess a candidates confidence, and their social and verbal skills to see if they will work in the business. Some people do not like interviews as many people do not behave normally in an interview (the skills needed to be good at interviews are often different to those needed to do the job)

Test can also help to select who to employ. Tests are better than interviews at assessing the skills needed for the job. They can be used to see the differences between the candidates. Skills tests (see if the candidates have the abilities to do the job), aptitude tests (potential to learn to do the job), personaility test (assess the candiates personal qualities), group tests (see if the candidates can work in the team).

The employer then selects the best candiate and offers them the job.

Workers can be paid in wages or a salary. Wages are paid to manual workers they depend on the amount of work done. A time rate pays workers by the hour. It encorages them to work long hours but slowly. It is good when it is hard to measure output (bus driver). Piece rate is where you get for the amount of work done. It encorages people to work quickly but if they work too fast quality may suffer. A salary is a fixed amount of money usually paid to managment it is a fixed cost that does not vary. 

Employers can give staff extra payment: commission means people earn money for each item they sell (they usually get a basic salary as well), a bonus is a sum of money given to employees if they meet their targets. 

Employees will be paid what they are worth to the business - jobs that are skilled and require qualifiations are higher paid, age and experience have an effect. 

Temporary staff can do short term work that is needed to keep up with customer demand (over christmas for example). They often come from agencies who charge a fee. They are paid higher than permanent employees because of a lack of job security and to encourage them to work harder

Motivated staff are good for business because they perform better and stay with the company

Training can improve motiavtion as people enjoy what they are good at, they can also learn new skills and take on more tasks

Job enlargement involves giving the employee more jobs this makes the work more varied - it make the employee feel valued. Job enrichment is where a worker has greater responsibility (become a supervisor), it may mean more training but they become motivated and work harder 

A fringe benefit is something the company pays for the workers to have - car, phone, health insurance, gym access, meal allowance. 

All employees must: have a contract within two months, have the company's discipline procedure, not work more than 48 hours a week, and get the national minimum wage.

Companies argue that high minimum wages mean that they have to increase prices but it does lead to better motivated staff

Recruitment procedures must not discriminate people based on age, race, religion, disability, or sexual orientation.

All staff must recieve health and safety training, have health and safety equiptment, toilets, washing facilites, and fire escapes.

There are laws against unfair dismissal - employees can be dismissed if they are incompetent or they show gross misconduct. People can be made redundant if their job no-longer exists, employers cannot advertise for a redundant job. Employees can go to an employment tribunal if they feel they have been unfairly dismissed - they can award compensation or reinstate the employee