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Title: People management in enterprise, Human Resources (AQA 41300104)
Description: These notes are aimed at GCSE students, studying GCSE Studies of Business and Economics. They cover everything in Component 1 (1st year- Smaller Businesses), Unit 4 (People in business- People management in enterprise and Human Resources) of the AQA 4130 specification, however they might be suitable for older/newer specifications. If you want to make sure they are suitable for your specification, ask your exams officer or teacher for the specification number and if you have any further questions, contact me on 13CYalamov@abbeywoodschool.com chrisyalamov@gmail.com
Description: These notes are aimed at GCSE students, studying GCSE Studies of Business and Economics. They cover everything in Component 1 (1st year- Smaller Businesses), Unit 4 (People in business- People management in enterprise and Human Resources) of the AQA 4130 specification, however they might be suitable for older/newer specifications. If you want to make sure they are suitable for your specification, ask your exams officer or teacher for the specification number and if you have any further questions, contact me on 13CYalamov@abbeywoodschool.com chrisyalamov@gmail.com
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Unit 1
...
4 of the AQA 4130 specification with a Qualification Accreditation
Number of 500/4508/8
...
Employment, Human Resources and People
Management
Permanent employment
Permanent employees have no end date for their employment
...
Advantages
●
Permanent employees might be more familiar with the business
●
They might feel more valued, making them more motivated
●
Secure pool of workers
Disadvantages
●
No opportunities for career development
●
Limited earning potential for employees, if the employer is too restrictive
●
Less job security, because of mergers, buyouts1 or downsizing
Temporary employment
Temporary employment has a set end date, however it can cease at any time, due to
redundancy, the employee being fired or quitting
...
●
You have the option of hiring them permanently when their contract runs out if
they’re suitable for the position
...
●
Their wage rates are generally higher
Full time employment
Full time employment normally means that the employee works more than 35-45 hours a
week, or a number of hours specified by the employer
...
Disadvantages
●
The employer will be expected to provide additional Non-monetary incentives, such
as health insurance
●
Payroll fees
Part time employment
A part-time worker is someone who works fewer hours than a full-time worker
...
Advantages
●
●
Larger pool of employees, some of which may be permanent employees
●
2
Relatively low cost, as they are paid for less hours
You have to pay less for their National Insurance- payable above £144/wk
...
Jobs may
become available due to several reasons:
●
An employee has been made redundant
●
An employee has quit
●
An employee has been fired
●
An employee is on a holiday/maternity/paternity leave3
○
In this case, a temporary replacement will be hired, as the former employee is
expected to come back
...
External recruitment
External recruitment is the practice of hiring people that are not already affiliated with the
company
...
Statutory Maternity Leave is 52 weeks
...
●
Outside people bringing in new ideas that could help the business expand further
●
It helps find people with more expertise in the field, which could also help the firm
grow
...
The post also needs to be advertised, adding an additional
expense, that can be avoided by recruiting internally
...
A typical example of internal recruitment is when an
employee moves to a different office or department
...
Some candidates that are
perfectly suitable for the job could be shortlisted, because of a simple mistake in
their application form
●
References on CVs are more reliable, as they are confirmed by trusted parties within
the company
...
The recruitment process
The hiring process consists of the following seven stages:
Vacancy
This is what triggers the recruitment process
...
Person Specification and Job Description
A firm needs to know what it’s looking for
...
This is called a job description
...
Then, the company needs to make
a person specification
...
It is derived
from the job description and does not include the nature of or the responsibilities that come
with the job
...
The job description can be helpful when advertising the vacancy
...
This can be done in several ways:
An employment agency
An employment agency is a business that finds employees and employers for those seeking
them
...
Job Centres
A job centre is a place where jobs and employment opportunities are advertised, and
training courses are provided for people looking for work
...
CVs and Application forms
When the job is advertised, candidates will be aware of the vacancy, and will submit their
application forms and CVs
...
A job
application form is a form that is given to the candidates by the employer to fill out which is
used to collect some vital information about the candidates
...
Shortlisting
Firms will most likely not be able to interview all candidates that have applied
...
Shortlisting is the practice of reducing the list of
applicants, making the recruitment process faster
...
Shortlisted applicants will usually be
asked for references, or look for any references on their CV
...
Selection- Interview
An interview is the traditional selection method
...
An interview is
normally a 1-on-1 meeting between the applicant and the head of department, HR
personnel or another highly managerial member of staff
...
Advantages:
●
Higher management gets to speak to the applicants personally
●
They can see how they behave in high-stress situations
●
It tests communication skills
●
The employer will get to know the candidate
Disadvantages:
●
●
The candidates could provide false information
The candidate may get nervous prior to the interview
...
Selection- Assessment
Sometimes, employers would choose to select a candidate in a different way
...
It assesses an applicant’s
numeracy, grammar and comprehension skills, as well as their personality, ability to work
individually and as a part of a team, how they behave in highly stressful situations, etc
...
Appointment
Once the employer or agency has selected an applicant/s, the selected applicants are
appointed
...
Remuneration(monetary benefits)
Employees are paid a set sum of money, in exchange for the work they've done
...
How much do you pay employees?
The amount of money you pay an employee could depend on how skilled they are, how
significant their position is, their cost of living, the economy, etc
...
This means that it is mainly used in the primary and secondary sectors,
as they are the ones that deal with the extraction of commodities and manufacturing
...
Wage
Wage is a type of remuneration, based on an hourly rate, paid to the employee on a weekly
basis
...
Being paid a commission means that you’re paid a percentage of the value of
each product or service you have sold
...
Overtime
Employers would sometimes try and encourage employees work for additional hours that
weren’t outlined in their contract, by increasing their hourly rate
...
Although they are
both methods of remuneration, there are two key differences
...
A salary is based on an annual rate and is paid on a
monthly basis
...
They are benefits that are not
in the form of monetary funds
...
Some examples of non-monetary benefits include:4
●
●
Company car
●
4
Free health insurance
Discounted parking
Not an exhaustive list
●
Gym Membership discounts
Legislation
Equal Pay Act 1970
This act prohibits any less favourable treatment between men and women in terms of pay
and conditions of employment
...
Equality Act 2010
The Equality Act 2010 Chapter 15, Part 2, Chapter 1, Section 4 lays out the 9 following
characteristics that are protected characteristics, meaning, no one can discriminate anyone
based on any of them
...
It has replaced other Acts of Parliament/Legislation that ensure employees are protected
against discrimination, such as the Sex Discrimination Act 1975, which has been repealed in
full by the Equality Act 2010 c
...
This rate normally changes at the start of every fiscal year
...
50
For people aged 21 to 24- £7
...
60
For people aged under 18- £4
...
50
Maternity Leave
Statutory Maternity Leave
Eligible employees can take up to 52 weeks’ maternity leave
...
The earliest that leave can be taken is 11 weeks before the expected week of childbirth,
unless the baby is born early
...
6
Subject to change
...
Amounts shown in Great British Pound Sterling
...
98 or 90% of their AWE (whichever is lower)
Tax and National Insurance need to be deducted
...
It grants employees the rights to:
●
a limit of a limit of an average 48 hours a week on the hours a worker can be
required to work, though individuals may choose to work longer by "opting out"
...
6 weeks' a year
...
All employers in the UK must fully comply with the Working Time Directive
...
As stated in c
...
VDUs and DSEs
VDU stands for Visual Display Unit
...
They were added to the Health
and Safety At Work 1974 in 1992
...
DSE stands for
Display Screen Equipment
...
Health and safety legislation applies to all employees, however, DSE regulations only apply
to active VDU users
...
Compliance with such laws might mean that
the business has to make additional investments, for instance, buying protective clothing
...
Such motivators can result in a higher ROI
...
Motivation
Benefits of having motivated staff
Having motivated staff can be very beneficial for a business and increase its efficiency and
revenue
...
Giving
staff more motivators could also lead to higher staff retention, as they will be happy with the
working conditions and won’t have a reason to look for another job that provides better
conditions, such as higher pay, more paid time off, etc
...
ROI- Return On Investment- sum of money a business has earned as a result of making an
investment
8
Monetary methods of motivation
Monetary benefits or financial incentive is a sum of money that serves as a motive/stimulus
for an employee to be devoted to their job and put a lot of time and effort into their work
...
Non-monetary methods of motivation
Non-monetary benefits can be used as means of motivation
...
Non-monetary benefits can also be referred to as fringe
benefits or perks
...
He believes that
everyone needs to feel good about themselves and the work they’ve done
...
That’s why he
came up with the hierarchy of needs, shown below
...
These are the most basic, essential
necessities, such as food, sleep, shelter, etc
...
This can include anything
from protective clothing, security of body, or it might also involve security of employment,
healthcare, family, resources, property, etc
...
The next level deals with belongingness and being a part of a community
...
Once this
level is satisfied, the employer will need to move onto the next level of Maslow’s hierarchy, in
this case, esteem
...
Esteem presents the typical human need to be recognised, valued and respected
...
The next level is
related to a person’s own perception of their work and its value and purposefulness
...
Appendices
Appendix A
Candidates should understand the benefits of full and part-time employment to the
business
...
Candidates should have an understanding of the factors that determine the level of
wages/salaries paid to employees, including levels of skill and experience
...
Candidates need to understand the use of non-monetary rewards to employees, such as
fringe benefits
...
Candidates should be able to suggest relevant ways by which small businesses might
motivate their employees
...
Candidates need to have an understanding of the legal responsibilities of employers and
their staff
...
Appendix B
The Equality Act 2010 c
...
o
http://www
...
gov
...
Act 1974 c
...
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Title: People management in enterprise, Human Resources (AQA 41300104)
Description: These notes are aimed at GCSE students, studying GCSE Studies of Business and Economics. They cover everything in Component 1 (1st year- Smaller Businesses), Unit 4 (People in business- People management in enterprise and Human Resources) of the AQA 4130 specification, however they might be suitable for older/newer specifications. If you want to make sure they are suitable for your specification, ask your exams officer or teacher for the specification number and if you have any further questions, contact me on 13CYalamov@abbeywoodschool.com chrisyalamov@gmail.com
Description: These notes are aimed at GCSE students, studying GCSE Studies of Business and Economics. They cover everything in Component 1 (1st year- Smaller Businesses), Unit 4 (People in business- People management in enterprise and Human Resources) of the AQA 4130 specification, however they might be suitable for older/newer specifications. If you want to make sure they are suitable for your specification, ask your exams officer or teacher for the specification number and if you have any further questions, contact me on 13CYalamov@abbeywoodschool.com chrisyalamov@gmail.com