Approaches to Staffing (Edexcel A Level Business)
Revision Note
An Introduction to Staffing
Effective human resource management (staffing) is important to business as it ensures that the organization has:
The right people, in the right roles, with the right support, with opportunities to succeed
This will lead to higher productivity, more profits and a positive work environment
Human resource management focuses on how employees can be:
Effectively recruited
Effectively deployed (used)
Effectively developed and trained
Effectively motivated
Effectively managed and led
Staff as an Asset & as a cost
Staff represent both an asset and a cost to a business
Staff are an asset to a business as they bring knowledge, skills, and expertise to the business
Staff can increase productivity, drive innovation and enhance customer service - all of which contribute to the success and profitability of the business
Staff can help to build a positive reputation for the business through their interactions with customers, suppliers, and other stakeholders
Staff also generate costs to a business - and for many businesses staffing costs are one of the largest costs they have
There are costs associated with
Hiring and training workers
Managing workers as managers have to be hired
Paying the salaries of full time workers
Paying wages of hourly staff
Additional benefits, such as company cars, pensions, healthcare etc
Letting workers go (redundancy payments)
The Impact of National Minimum Wages on Staffing Costs
If the government introduces (or raises) a national minimum wage it applies to employees who receive a wage rather than a salary
Businesses that employ workers on a wage basis will face higher labour costs
Businesses that employ workers on a salary basis are less affected by the introduction of a minimum wage
They already pay a fixed amount regardless of the number of hours worked
Developing a Flexible Workforce
Flexible working is the development of a culture where workers are equipped to do different roles or where they work in a range of employment patterns (full-time, part-time, zero hours contracts, work from home, etc)
Developing a flexible workforce can bring many benefits to a business
Each specific approach should be assessed, as there are potential disadvantages to each
Allowing workers to work from home is just one of several methods available to businesses to develop a flexible workforce
Multi-skilling
Multi-skilling is the process of training workers to fulfil multiple job roles within a business
E.g. South West Airlines trains staff to handle multiple roles including check-in, baggage handling and customer service
The Advantages and Disadvantages of Multi-skilling
Advantages | Disadvantages |
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Part-time and temporary working
Someone who works part-time may only work two or three days a week
Someone who works temporarily shows up for work whenever the business needs them
E.g. Amazon employs temporary workers to handle seasonal spikes in demand such as Christmas
The Advantages and Disadvantages of the Business of Part-time & Temporary working
Advantages | Disadvantages |
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Outsourcing
Apple outsources much of its manufacturing to Foxconn in China
This allows the company to produce products at a lower cost and maintain competitive pricing
The Advantages and Disadvantages of Outsourcing
Advantages | Disadvantages |
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Flexible hours
Flexible hours allow employees to schedule working hours around their individual needs and accommodate their commitments outside of work
A flexible hours schedule usually involves working some set hours, with the remainder of hours organised according to the employees' needs
E.g. An employee may be expected to be at work between the hours of 10am and 2pm, but can choose when they complete the rest of their working hours
Home working
Advances in communication technology have enabled a larger proportion of workers than ever before to work from home
Employees use tools such as email, instant messaging, collaborative software, scheduling apps and videoconferencing to carry out work remotely
Home working has a range of advantages and disadvantages for both the business and its employees
Advantages | Disadvantages | |
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For the Business |
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For the Employee |
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The Distinction Between Dismissal & Redundancy
Dismissal (firing or sacking) is the termination of employment by an employer against the will of the employee
Employees are usually terminated due to their misconduct (e.g. violating company policy) or poor performance
The employer may choose to dismiss them immediately (without notice or compensation) or provide a notice period which they can work out
Employees are made redundant when the job is no longer available and the business reduces the size of its workforce
The termination is not due to any fault of the employee
The employer must follow certain legal procedures, including providing notice and paying redundancy compensation
Different Approaches to Employer/Employee Relationships
The nature of the employer/employee relationship is influenced by whether there is an individual approach or a collective agreement
Individual and Collective Bargaining Approaches Explained
Individual Approach | Collective Bargaining |
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