OCR Level 3Cambridge Technicals

in Business

Unit 5: Human Resource Management in

Business

Why are human Why are human resources important?resources important?People are sometimes described as the most valuable resource that an organisation has.

Human resources involves managing

the current workforce…

…while human resource planning means thinking about the organisation’s future human resources needs and

taking steps to meet those needs.

Factors to think aboutFactors to think about

Workforce profiles

Demand for products/ services

Thinking about human resources means looking at a number of factors.

Internal factors

Organisational needs

Skills requirements

External factors

Supply of labour

Labour costs

Workforce skills

Government policy

Labour market competition

Changing nature of work

Getting the most from Getting the most from peoplepeople

Why do people come to work and how can an organisation get the

most from them?What skills do people in the

organisation have?

Are people in the best place to use

their skills?

What training is needed to

improve skills?How do we

motivate people?

Is motivation all about money?

What makes people feel good

at work?What does absenteeism tell us about motivation at

work?

Can skills be transferred to

different areas of the organisation?

Why is treating people fairly so

important?

What theories can explain what motivates

people at work?

Kelloggs – a great place to Kelloggs – a great place to work?work?

Employees can buy and sell holiday days if they value time off more than pay.

Kelloggs has based its HR strategy around motivation with the aim of making the company ‘a great place to work’. The company have a range of ways of motivating their

employees, for example:

Competitive salary

Flexible workplace, safe and healthy working environment

Promotion and development opportunities

Mutual respect of each other

Basic needs

Social needs

Safety needs

Self Actualisation

Esteem

Kelloggs – working with Kelloggs – working with everyoneeveryone

Mutual co-operation between an organisation and its workforce is vital to be successful, but achieving this is

not always easy. Kelloggs tries to do this using:

Communication: from formal meetings to a

200-seater coffee lounge in the foyer for

information discussions and socialising.

Encouraging ideas: such as a staff suggestion scheme and ‘Snap, Crackle and Save’, which encourages cost saving ideas.

Study leave and secondment opportunities:

helping staff to feel valued and motivated to develop

their skills and apply them at work.

Managing performanceManaging performanceIt is important to actively manage people’s performance

in their roles in order for the organisation to be successful.

If people are well motivated and have the right skills, then they

should be effective in their roles but how do we know?

Using probationary periods, appraisals, and methods of supporting employees.

It is important to ensure fairness when measuring and managing performance. How can this be

achieved?

Using indicators, goals, SMART targets

and benchmarking.

What will you learn?What will you learn?After completing this unit, you will:

Know the factors that are involved in

human resource planning in

organisations

Know how organisations

motivate employees

Understand how to gain committed

employee cooperation

Understand the importance of

managing employee performance at work

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