Chapter 14

Approaches to staffing

Different businesses have different approaches to their staff.

Staff represent both an asset and a cost to a business

1.​ Staff as an asset

* Staff will be valued because employers recognize that their efforts will help the
business to perform more effectively.

Such employers will therefore try to meet the needs of employees. This might
involve providing:
* acceptable remuneration
reasonable holidays, sick leave, maternity/paternity leave and pensions
a safe and comfortable working environment
training, so that staff can develop skills and carry out work tasks successfully and
safely
job security and opportunities to interact with colleagues
recognition and professional relationships
clear and effective leadership
chances for promotion
opportunities to solve problems, work in teams and be creative.

Staff as a cost
Staff as a cost: If employers view their staff as a cost, their focus is likely to be
different. Like any other cost, they will try to minimize it wherever possible. This might
involve:
* paying just the legal national minimum wage
using a zero-hours contract
neglecting investment in training
using financial incentives to raise productivity
providing the minimum legal 'employee rights' in relation to sick leave, holiday
pay and working conditions
having penalties for employees who are late, break rules, etc. and who incur
costs for the business
using cheap and inferior recruitment methods. This approach might lower
employment costs

There may be more conflict between staff and management. Treating staff
as costs may leave workers feeling exploited, neglected, stressed and
unhappy in their work.

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

 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)

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​

●​ Business utilise their workforce more ●​ May require significant investment in training
efficiently which reduces labour costs and and development
increase productivity
●​ May not be appropriate for all job roles,
●​ It can help to improve patient outcomes especially those that require a high level of
in healthcare industries as workers with a expertise
broader range of skills can provide more
comprehensive care

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

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

F.​ 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​

●​ Flexible working arrangements can help ●​ Flexible working arrangements can

businesses to attract and retain talent, create challenges in terms of
especially staff who value work-life communication and collaboration
balance (especially if staff are working
remotely)
●​ This may improve productivity, as staff
can work during their most productive ●​ Monitoring and managing flexible
hours and avoid distractions workers can be more difficult

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​

●​ This may allow businesses to access ●​ This may lead to a loss of control over quality
specialised skills that may not be available and delivery, especially if the outsourcing
in-house partner is based in another country

●​ May reduce labour costs

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

 ●​ This may create ethical concerns, especially if
the partner is based in a country with lower
labour standards or human rights abuses

Zero-hour contracts:
In some countries, people are employed on zero-hour contracts. These are also
known as casual contracts and are usually offered for 'piece work' or 'on-call
work'.
Zero-hour contracts mean that:
•​ workers are on call to work when the employer needs them
•​ employers do not have to give them work
•​ employees do not have to work when asked

Eg; hospitality industry, which includes hotels, restaurants and catering at events.
The other is administrative and support services such as cleaning and office
support.

Workers on zero-hour contracts do have certain rights.

In some countries, they are entitled to the minimum or living wage, paid holiday,
rest breaks and protection against discrimination, excessive working hours and
illegal wage deductions.
However, in some countries, suchas Austria, Belgium, Czech Republic, Denmark,
France, Germany, Hungary, Italy, the Netherlands, Poland and Spain, zero-hour contracts
are illegal. This is because they are considered exploitative.

Some employers like zero-hour contracts because they help provide a flexible
workforce and are a cheaper alternative to employing agency staff. For example, a
fast-food restaurant may need extra workers to help out at busy weekends.​

Flexible hours and home working:

The workforce is more flexible if staff work flexible hours. However, there are
different ways of arranging this
Eg; staff might have to work a number of hours in a particular time period,
say 1 week, but have the choice as to when they work during that week. Or they
might work a reduced number of days,

Outsourcing

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

This involves getting other people or businesses to carry out tasks that were
originally carried out by people employed by the business. Outsourcing allows a
business to focus on its main capabilities and lets others carry out the surrounding
work

Advantages of outsourcing

1.​ costs are lower and capacity can be increased.

2.​ The work outsourced may also be undertaken more effectively — especially
if specialists are employed

Drawbacks of outsourcing

1.​ loss of control and the dependence on suppliers that businesses may develop

2.​ Employees may also respond negatively to outsourcing because their jobs
might be threatened

Advantages of a flexible work force

1.​ A flexible workforce allows a business to expand and contract quickly in response to
changes in demand for its products In contrast, a workforce made up of permanent staff
is difficult to shrink quickly because of the cost and because of the time it takes to fulfil
legal requirements.

2.​ Some specialist jobs need to be done but it would be wasteful to employ a
permanent worker to do them. For example, most small businesses employ external
accountants to manage their accounts

3.​ In some cases, temporary staff or subcontractors are cheaper to employ than
permanent staff

4.​ Employers are responsible for training their permanent workers

5.​ Employing workers who can job share or work flexible hours may allow a business to
operate more efficiently.

Disadvantages of a flexible work force

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

1.​ Peripheral workers may have less loyalty to the business where they work
temporarily. They may be motivated mainly by financial gain.

2.​ Some businesses have found that their outsourced work has been of poor quality,
damaging their reputation with customers.

3.​ Communication can be a problem. Peripheral workers are not necessarily available
when the business would like to communicate with them,

4.​ Employing peripheral workers can be a costly process.

5.​ When employing temporary staff, there is no guarantee that they will perform
their job as well as a permanent member of staff.

6.​ Too many peripheral workers employed alongside core workers can cause
demotivation among the core workers. Core workers may want to be part of a stable team
to form relationships and fulfil some of their higher-order needs.

The Distinction Between Dismissal & Redundancy

●​ Dismissal (firing or sacking) is the termination of employment by an

employer against the will of the employee

Reasons for dismissal

o​ Employees are usually terminated due to their misconduct (e.g. violating

company policy) or poor performance

o​ The employer may choose to dismiss them immediately (without notice or

compensation) or provide a notice period which they can work out

Redundancy

Employees are made redundant when the job is no longer available and the
business reduces the size of its workforce

Reasons for redundant

o​ The termination is not due to any fault of the employee

o​ The employer must follow certain legal procedures, including providing

notice and paying redundancy compensation

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

Employer / Employee relationship

If the relationship develops positively employees will be relatively happy in their work,
motivated and productive.
As a result the business should enjoy an adaptable and co-operative workforce, and high
levels of skill and output.
However, relationships between employees and employers can be difficult.
This is because the objectives of the two groups are sometimes in conflict, for
instance over the following.
1.​ Rates of pay.
Employers often attempt to restrain wage growth to help control their costs and remain
competitive. In contrast, employees want higher wages to keep up with rises in the cost
of living and hopefully raise their living standards

2.​ The introduction of technology.

Employers are often keen to use new technology because it helps to increase efficiency
in the business. However, employees may resist the introduction of technology

3.​ Flexible working.

Employers prefer to employ a flexible workforce because it helps to manage production
more effectively and keeps costs down. However, some of the methods used to develop
more flexibility, such as zero-hours contracts, can be unpopular with employees.

4.​ Work conditions.

Employees may want better conditions or facilities from employers, such as the
provision of care facilities for workers' children. However, employers may consider such
things inappropriate or too expensiv

Different Approaches to Employer/Employee Relationships

The nature of the employer/employee relationship is vastly influenced by whether there is

an individual approach or if the company is operating under a collective agreement

​ ​
Individual Approach​ Collective Bargaining​

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM

 ●​ Focuses on the relationship between an ●​ A process whereby a group of employees
employee and their employer (represented by a trade union) negotiate
with their employer for better wages,
●​ Assumes that each employee is
working conditions and benefits
unique and has their own goals,
motivations, and interests ●​ Employees have more bargaining
power when they negotiate
●​ It emphasizes the need for tailored
collectively rather than as individuals
compensation packages that cater to
each employee's unique skills and needs ●​ The employment relationship is seen as
a power struggle between two parties
●​ The employment relationship is a
with conflicting interests
voluntary agreement between two
parties in which both negotiate their o​ The employer wants to maximize
respective roles, responsibilities and profits by keeping labour costs
benefits low

●​ The employer has the power to hire, o​ The employees want to maximize
fire, and set the terms and their wages and benefits
conditions of employment
o​ The union acts as the collective
voice of the employees and
bargains with the employer on
behalf of all workers

​
​

Mrs. K.K.C.Sanjeewani BSc(Mgt)J’pura, PGDE, AMABE, MLRHRM