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Higher Business Management

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Title: Higher Business Management


1
Higher Business Management
  • Human Resource Management

2
The Role of People in Organisations
  • People are probably the most valuable resource
    that an organisation possesses.
  • In the same way that machinery must be
    maintained, staff have to be looked after in such
    a way that they can produce their best effort.
  • This involves their welfare, training, safety and
    motivation. Also would deal with recruitment,
    disciplining, compliance with legislation.
  • A happy workforce is likely to be an efficient
    workforce.

3
The Changing Patterns of Employment
  • movement away from primary and secondary
    industries to tertiary sector - more employed in
    the provision of services
  • full-time employment has stayed fairly static
  • Increase in part-time and short-term contracts
  • Increase in home working and tele-working
  • Greater flexibility of the workforce
  • Many more women in employment
  • Increase in self-employment

primary
secondary
tertiary
4
The Modern Workforce
  • The Core Workers
  • Essential workers - managers, skilled workers -
    permanent and well-paid
  • The Contractual Fringe
  • Sub-contractors - suppliers of components or
    services - cheaper (no pensions, holidays etc)
  • The Flexible Labour Force
  • Part-time, temporary - help core workers at peak
    times - low rates of pay
  • Taken on only when needed

5
The New Employment Pattern
  • Advantages
  • Core employees can focus on core activities only
  • Saves on salaries and space
  • No need to pay for pensions, holidays or
    redundancy
  • Reduced NI contributions
  • Allows flexibility and can respond quickly to
    change
  • Disadvantages
  • Frequent recruitment and selection
  • Occasional staff shortages
  • Less commitment from staff
  • Increased need for training due to high staff
    turnover
  • Lack of continuity of staff - customers may
    become unhappy

6
Human Resource Management (HRM) refers to that
part of an organisations activities designed to
attract, train, develop and maintain an effective
workforce
7
HRM Functions within the Organisation
Executive - experts in the HRM area - policies
developed in line with legal requirements Audit -
policies properly implemented Facilitator -
training of staff to respond to HRM
issues Consultancy - advice and guidance to
managers on HRM problems Service - providing
up-to-date information on legislation
8
HRM DM LEVELS
  • TACTICAL
  • Human Resource planning
  • Recruitment of specialised staff
  • Staff training and development
  • Promoting effective industrial relations
  • OPERATIONAL
  • Identifying training needs
  • Encourage staff to accept training
  • Arrange the training
  • Deal with day-to-day issues such as absenteeism,
    grievances, welfare, etc
  • STRATEGIC
  • Formulate personnel policies for the organisation
    as a whole
  • Devise guidelines for implementation of policies
  • Working towards corporate goals - defining
    corporate culture

9
(No Transcript)
10
HR Planning
  • HR Planning is the method by which a business
    forecasts how many and what type of employees it
    needs now and in the future.
  • Forecasting employee demand involves
  • using past information
  • analysing current employment trends
  • estimating future staffing
  • forecasting future supply of workers with
    appropriate skills
  • estimating workers productivity
  • employing work study
  • calculating staff turnover
  • using business and management knowledge

11
Employees can be grouped under 4 headings
  • New staff induction/contract of employment
  • Potential staff advertising, recruitment,
    selection,
  • Existing staff appraisal, continuing
    professional development
  • Departing staff retirement packages/grievance

12
Possible areas of influence
  • Political changes in legislation, eg working
    week, paternity leave, minimum wage, retirement
    age
  • Economic boom or recession in the UK/world
    economy, number of unemployed
  • Social number of women working, type of working
    patterns demanded, holidays, retirement age
  • Technological robots, computer aided design,
    remote working.

13
HR RECORDS
  • PERSONAL HISTORY most of this will be taken
    from the application form and then added to.
  • EMPLOYMENT HISTORY terms and conditions of
    employment, details of sick days, latecoming,
    disciplining, grievances
  • APPRAISAL INFORMATION results of appraisal,
    training requested and undertaken

14
Recruitment and Selection Terminology
  • Recruitment
  • Job analysis
  • Job description/specification
  • Person specification
  • Internal/external recruitment
  • Application forms/CVs
  • Selection
  • Leeting
  • Interviews
  • Psychological/personality tests
  • Testing
  • References

15
Job Analysis
  • This is a study undertaken to identify the main
    features of a job
  • physical requirements of the job
  • skill requirements and tasks
  • mental requirements and tasks
  • areas of responsibility
  • areas of accountability
  • physical environment
  • hazards specific to job

16
Job Description
  • Detailed description of exactly what job entails.
    This will normally be given to anyone who
    applies for the job.
  • job title
  • relationship with other jobs in organisation
  • purpose of job
  • main duties and responsibilities
  • authority
  • over others
  • in decision making
  • resources
  • financial, human, equipment, work area
  • location

17
Person Specification
  • Details the type of person needed for the job.
    Includes essential and desirable attributes
  • physical make-up
  • Qualifications necessary
  • attainments
  • general intelligence
  • special aptitudes
  • interests
  • disposition
  • circumstances

18
INTERNAL RECRUITMENT
  • Firms may choose to fill positions with employees
    who already work for the organisation by
    advertising internally
  • The benefits of this are
  • the applicant is already known
  • the firm may have already invested time and money
    in training this employee and can benefit from
    this investment
  • applicant is already aware of the culture
  • promotion from within is good for morale
  • cheaper than external recruitment in terms of
    money and time

19
EXTERNAL RECRUITMENT
  • Recruiting outwith the organisation, by
    advertising job in
  • local newspapers
  • national newspapers
  • specialist publications, eg TES
  • internet, eg S1jobs.com or firms own website
  • recruitment agencies
  • headhunting
  • Points to consider
  • wider pool of applicants
  • new blood
  • costly in time and money
  • unknown quantity
  • demotivating for existing staff?
  • resentment from unsuccessful internal candidates?

20
SELECTION
  • It is important to select the most appropriate
    candidate for the job.
  • Selection methods may involve
  • Weeding out using CVs or application forms
    (Leeting)
  • Interviewing
  • Testing IQ, psychological, aptitude

21
INTERVIEWING
  • Interviews are useful for assessing the personal
    qualities of a candidate
  • Interviews are less useful for assessing the
    technical ability of candidates
  • Interviews may be one-to-one, panel or group
  • Poor interviews are a result of
  • Lack of training in interview technique
  • Poor preparation
  • It is possible that interviewers may
  • get a false impression of a candidate
  • and may wish to back up an interview
  • by testing candidates

22
The good interview
  • Be open minded and unbiased
  • Be prepared read CVs, application forms, think
    about suitable questions
  • Welcome the interviewee
  • Control the interview
  • Supply information
  • Close interview
  • Follow-up

23
Interviewing and technology
  • Using video conferencing can be a cheaper
    solution than paying travel costs for a number of
    applicants.
  • Telephone interviews are even cheaper and may be
    the only interview for jobs in call centres.

24
TESTING
  • Aptitude test giving candidates a problem or
    task to solve
  • Attainment test a speed test for word
    processing operators
  • Intelligence test may be on numeracy, literacy
    and general knowledge
  • Personality test sometimes called psychometric
    testing
  • Selection exercises outward bound courses, team
    interviews, social situations

25
Training and Development Terminology
  • Flexibility of staff (multi-skilling)
  • Coping with change
  • Job satisfaction
  • Staff motivation
  • Induction training
  • On and off-the-job training
  • Retraining
  • Skills upgrading
  • Appraisal
  • Target Setting

26
TRAINING
  • INDUCTION
  • Given to new staff to introduce them to the
    organisation
  • ON-THE-JOB
  • Takes place whilst employee is doing their job,
    eg, work shadowing sitting next to Nellie
  • OFF-THE JOB
  • Attending training course, gaining
    qualifications, day release. Can be in house
    or at college, etc
  • STAFF DEVELOPMENT
  • Based on plan agreed at appraisal. Eg, to
    prepare employee for promotion

27
Quick Question
  • Outline advantages and disadvantages to the
  • organisation of
  • Induction training
  • On the job training
  • Off the job training

28
The costs and benefits of staff training
  • Costs
  • Trained staff may leave to go to other
    organisations
  • Financial costs of paying for training
  • Work time is lost when staff are being trained
  • Staff may request a pay rise after training
  • Benefits
  • Staff become more competent
  • Motivation increases
  • Long term Productivity increases
  • Reduced waste
  • Organisations image is improved
  • Changes become easier to introduce
  • Fewer accidents

29
APPRAISAL
  • a method of evaluating the performance of
    employees and assessing their usefulness to the
    business
  • may be INFORMAL or FORMAL
  • normally carried out by an employees line
    manager however other forms exists
  • self
  • peer
  • subordinate

30
INFORMAL APPRAISAL
  • based on feelings of management
  • result of working together on daily basis
  • little discussion between manager and employee
  • opinions based on factors of which employee is
    unaware

31
FORMAL APPRAISAL
  • based on evidence collected in a formal way
  • involves an appraisal interview
  • used to
  • evaluate performance
  • identify employees ready for promotion
  • increase motivation
  • identify training needs
  • identify strengths and weaknesses
  • set future performance targets
  • assess the recruitment and selection process
  • improve communications
  • award salary increases
  • plan future staffing

32
TARGET SETTING
  • Appraisal is used for target setting for such
    things as
  • attendance at work
  • quality and relevance of work
  • membership of committees
  • communication abilities
  • level of output achieved
  • training to be undertaken
  • relationships with staff

33
Questions
  • 1 (a) Describe how an organisation might assess
    the effectiveness of any training programme?
    (2003 CS) (4)
  • 1 (b) Justify why training should be a continuous
    process for any organisation? (2003 CS)
    (4)
  • 2 Appraisal is the name given to a meeting held
    between employee and employer to review
    performance and discuss progress.
  • Discuss the role of appraisal and its ability
    to motivate staff. (2008 CS Q8) (4
    )

34
Describe how an organisation might assess the
effectiveness of any training programme? (2003
CS) (4)
  • Evaluate the training - issue questionnaires/inter
    view participants.
  • Monitor work - has output improved?
  • Has quality of work improved?
  • Has morale of workforce improved?
  • Labour turnover decreased?
  • Did the employee gain the qualification?
  • Has the employee been promoted/gained a job
    elsewhere?
  • Testing employees
  • Reduction in accidents
  • Reduction in complaints/returns from customers

35
  • Justify why training should be a continuous
    process for any organisation? (2003 CS) (4)
  • Changes in work practices/technology require
    skills to be updated.
  • Reinforcement of existing skills.
  • Change may be necessary to keep up with
    competitors.
  • Workers need development in order to make
    progress within the organisation.
  • Shows workforce that they are valued - a
    motivating factor.
  • Shows that the organisation is good to work for.
  • Builds up good reputation
  • Can reduce accidents

36
Discuss the role of appraisal and its ability to
motivate staff. (4) (2008 CS Q8)
  • Appraisal should give feedback on the review of
    an employees past
  • performance.
  • It should involve a discussion about
    expectations and targets.
  • Is an opportunity to support development needs
    of employees.
  • Can be used to assess employees potential for
    promotion.
  • It may involve bonus schemes or be linked to
    pay.
  • Motivates staff by
  • Improving communication channels between
    managers and staff.
  • Should increase job satisfaction as employees
    will have a better understandingof how to do
    their job.
  • May improve loyalty to the organisation if
    positive rewards are given.
  • Allows for a feeling of personal satisfaction
    if targets are met.
  • Training and development in itself can be
    motivational as staff feel valued.
  • Could be de-motivational if negative aspects
    focused on. (4)
  • MUST MENTION MOTIVATION TO GAIN FULL MARKS

37
Employee Relations Terminology
  • ACAS (Advisory, Conciliation and Arbitration
    Service)
  • Employers Associations (CBI)
  • Trade Unions
  • Professional Associations
  • Collective bargaining
  • Industrial Action
  • Works Council
  • Grievance Procedures
  • Disciplinary Procedures
  • Terms and conditions
  • Employee Legislation
  • Health and Safety

38
ACASAdvisory,Conciliation and Arbitration
service.
  • to improve the performance and effectiveness of
    organisations by providing an independent and
    impartial service to prevent and resolve disputes
    and to build harmonious relationships at work.
  • By preventing or resolving employment disputes
  • By conciliating in actual or potential complaints
    before industrial tribunals
  • By providing information and advice
  • By promoting good practice

39
Question
  • Describe the role of ACAS in supporting employees
    and employers when disputes occur in the
    workplace
  • (3 marks)
  • (2006 Higher Bus Man)

40
Solution
  • Gives advice to employers, employees and Trade
    Unions on matters such as Contracts of
    Employment, Human Resource policies, legislation
    and other work related matters (advice).
  • At the request of management, ACAS can intervene
    in a dispute and offer a solution that both
    parties will accept (conciliation).
  • ACAS can look at the problem and recommend a
    course of action which both parties agree to
    abide by (arbitration).

41
Employers Associations
  • Represent the views and interests of companies
    within one sector or industry.
  • Financed by subscriptions from members.
  • E.g. Newspaper Society, Engineering Employers
    Association, Meat Marketing Board

42
Employers Associations
  • Provide a range of services
  • Try to influence government e.g. taxes,
    employment law
  • Produce both product and market research for
    members
  • Public relations voice for industry (e.g. BSE
    crisis)
  • Can provide negotiating team for pay, working
    conditions etc.

43
TRADE UNIONS
  • Individual employees have very little power.
  • A group of workers who join together to further
    their own interests
  • Obtaining satisfactory pay
  • Ensuring satisfactory working conditions (no of
    hours, breaks)
  • Negotiating bonuses
  • Obtaining job security

44
LARGE UNIONS
  • Unison
  • Representing local govt employees, health,
    utilities, 1.3m members
  • The Transport and General Workers Union (TGWU)
  • Represent people working in a range of different
    occupations and industries in the public and
    private sector

45
TRADE UNION CONGRESS (TUC)
  • Represents all trade unions.
  • Provides information and advice to its members
  • Membership starting to increase again
  • Involved in research into employment rights,
    health and safety, working conditions
  • CBI (Confederation of British Industry)
    represents employers

46
SINGLE UNION AGREEMENTS
  • One union represents all workers in an
    organisation
  • This system saves time and money and there is
    less likely to be conflict.

47
Question
  • Describe the role of Trade Unions in supporting
    employees and employers when disputes occur in
    the workplace.
  • (3 marks)
  • (2006 Higher Bus Man)

48
Solution
  • Trade Unions
  • Represents employees with regard to wage
    negotiations, conditions of service, dismissal,
    redundancy and other work-related matters.
  • Undertake collective bargaining on behalf of
    employees.
  • Have greater negotiation power than individuals.
  • Offer employers advice in work-related matters.
  • Involvement with Industrial Tribunal.

49
Professional Associations
  • Represent professional occupations
  • Doctors British Medical Association
  • Police Police Federation
  • Footballers Professional Footballers
    Association
  • Represent members in bargaining for pay and
    improved terms and conditions

50
Employee relations processes
  • NEGOTIATION discussing, agreeing and
    implementing changes
  • CONSULTATION by law employees have to be
    consulted, however may only involve telling
  • ARBITRATION a third party is called upon to
    make a decision, eg ACAS, where the employer and
    employees are in dispute

51
Employee relations policies
  • Contract of Employment Terms and conditions
  • Procedures/Policies for dealing with staff
    complaints,the disciplining of staff, redundancy
    procedures and redundancy payment
  • Involvement of staff in decision making
  • Trade union recognition
  • Collective bargaining

52
COLLECTIVE BARGAINING
  • This is the process of a group representing the
    employees negotiating changes in working
    conditions with the employer(s).
  • Typically agreements will be for several years at
    a time.

53
Question
  • Employee Representative Groups, (eg Trade Unions)
    use the power of collective bargaining for the
    benefit of their members. Describe 3 advantages
    of collective bargaining.
  • (2007 Bus Man Higher)
  • (3 marks)

54
Solution
  • Representing a large number improves the
    negotiating position and chance of success for
    members.
  • Agreements reached can be on a national level.
  • Reduces the number of individual meetings
    required to resolve an issue.
  • Without collective bargaining the employees could
    be taken for granted and deliberately left out of
    discussions, consultations or told very little by
    the organisation.
  • Negotiators are experienced.

55
INDUSTRIAL ACTION
  • Work to rule
  • Overtime ban
  • Go slow
  • Sit in
  • Boycott
  • Strike
  • Picketing

56
Question
  • Employees may undertake industrial action in an
    attempt to force employers to meet their demands.
    Describe types of industrial action that
    employees could take.
  • (4 marks)
  • (2008 Higher Bus Man)

57
Solution
  • Strike - employees refuse to do their work and do
    not enter the workplace.
  • Sit in - employees take over their place of work
    but do not do any work. Can attract media
    coverage.
  • Work to rule - employees only undertake the exact
    jobs written in their job description.
  • Go slow - employees deliberately work at a much
    slower rate.
  • Overtime ban - employees do not do any overtime.
  • Picketing - employees protest at entrance to the
    place of work. Mass picketing is illegal,
    however a pickets can successfully attract press
    coverage.

58
Question
  • Explain possible effects that prolonged
    industrial action could have on an organisation.
  • (5 marks)
  • (2008 Higher Bus Man)

59
Solution
  • Loss in production will lead to the business
    being unable to meet customers deadlines.
  • Loss in sales revenue may lead to liquidation
  • Long term loss of customers who now shop at
    competitors resulting in loss of market share
  • Image of organization is tarnished- future
    applicants may not be attracted to the company,
    so the business might lose out on the best
    employees.
  • Damage to long term reputation (as above)
  • Share price can fall - no shares are being sold
    so the business is receiving no capital
  • May result in redundancies-this is cost to the
    organisation and may also negatively affect
    morale of the remaining workforce.

60
WORKS COUNCILS
  • A European concept that has been introduced in
    UK.
  • Allows access to company information and gives
    employee representatives joint decision making
    powers.
  • Companies (150 employees) can be fined if they
    do not have a Special Negotiating Board.

61
Recent Legislation
  • Recent legislation has severely weakened trade
    union power as follows
  • An employer can now sue a union for lost profits
    if industrial action is taken without an initial
    secret ballot of workers.
  • Industrial action can be taken only against the
    original employer and not against his suppliers
    or buyers.
  • Mass picketing is unlawful. Only a handful of
    strikers are allowed to man a picket line,
    peacefully.

62
Grievance procedures
  • If an employee is unhappy with their conditions
    or the way in which they are treated.
  • Three stages in the process
  • Negotiations with union and HRM dept
  • ACAS approached for a ruling
  • Employment Tribunal (has legal powers)

63
DISCIPLINARY PROCEDURES
  • Steps an organisation will take to deal with an
    employee who is breaking the conditions of their
    contract. Could be
  • Verbal warning - logged
  • Written warning
  • Second written warning
  • Contract terminated (P45 issued)
  • However could jump straight to dismissal
    depending in nature of offence

64
Legislation
  • A main function of the HR department is to ensure
    the organisation is fully aware of any relevant
    legislation
  • All policies and procedures should be in line
    with current legislation
  • Legislation is continually being updated which
    makes this an ongoing task for every organisation

65
The Main Areas of Legislation
  • Equal Opportunities
  • Employment Protection
  • Health and Safety

66
Equal Opportunities
  • Equal Pay Act 1970
  • Sex Discrimination Act 1975
  • Employment Equality (Sexual Orientation)
    Regulations 2003
  • Race Relations Act 1976
  • Employment Equality (Religion or Belief)
    Regulations 2003
  • Disability Discrimination Act 1995

67
Equal Opportunities Task
  • Working in pairs and using the ACAS website
    www.acas.org.uk use the Equality link to read
    about the advice provided by ACAS under each of
    the headings
  • In your jotter write a short paragraph on each
  • The Employee Questions and Employer Questions
    links might also be useful

68
Example paragraph
  • Equal Pay Act 1970
  • Men and women should receive the same pay and
    conditions for doing broadly similar, but not
    necessarily identical work. The Act is monitored
    by the Equal Opportunities Commission. Employees
    are also entitled to know how their pay is made
    up. E.g., bonus schemes

69
Employment Protection
  • Employment Rights Act 1996
  • Working Time Regulations Act 1998
  • National Minimum Wage Act 1998
  • Employment Act 2002
  • Employment Relations Act 2004

70
Employment Rights Act 1996
  • States duties and rights of the employer and
    employee
  • Includes the employees rights to maternity and
    paternity leave
  • Details regarding termination of employment
  • Right to a written contract of employment within
    60 days of starting work
  • Details regarding Sunday working
  • Right to a written pay slip

71
Working time Regulations Act 1998
  • a limit of an average of 48 hours (though workers
    can choose to work more if they want to)
  • a limit of an average of 8 hours work in 24 which
    night workers can be required to work
  • right for night workers to receive free health
    assessments
  • right to 11 hours rest a day
  • right to a day off each week
  • right to an in-work rest break if the working day
    is longer than 6 hours
  • right to 4 weeks paid leave per year

72
National Minimum Wage Act 1998
  • Aimed at providing employees with decent minimum
    standards and fairness in the workplace
  • Applies to nearly all workers and sets hourly
    rates below which pay must not be allowed to fall
  • Rates set are based on the recommendations of the
    Low Pay Commission

Age Group Amount
Over 21 5.73
18 - 21 4.77
16 17 3.53
October 2008
73
Employment Act 2002
Gives additional rights such as
  • Maternity, paternity and adoption leave
  • Flexible working practices and fairness
  • Dispute resolution disciplinary and grievance
    procedures reviewed
  • Time off for Trade Union Reps
  • Equal Pay questionnaire can be given to employer
    if there is doubt about the pay structure
  • Treatment of employees on Fixed Term Contract

74
Employment Relations Act 2004
  • Deals mainly with employee relations and the
    operation of the statutory recognition procedure
    for trade unions
  • The law on industrial action ballots and ballot
    notices
  • When arbitration should take place
  • Unfair dismissal
  • Grievance and disciplinary hearings

75
Health and Safety
  • Health and Safety at Work Act 1974
  • The Factories Act 1961
  • Office, Shops and Railway Premises Act 1963
  • Control of Substances Hazardous to Health
    Regulations 1988
  • The Fire Precautions Act 1971

76
Health and Safety at Work Act 1974
  • Aims to raise the standard of safety and health
    for all individuals at work, and to protect the
    public whose safety may be put at risk by the
    activities of people at work
  • Places responsibility on employers and employees
  • If either fail to comply they can be taken to
    court and fined
  • The Act is backed by the HSE

77
Employer Duties
Employers must take every reasonable step to
ensure that
  • all machinery is properly maintained
  • all hazardous substances are dealt with properly
  • all staff are trained and informed of potential
    dangers
  • that the environment is safe and non-hazardous to
    the health of the employees
  • risk assessment of the building are carried out
  • safety officers are appointed to carry our
    regular inspections of the workplace

78
Employee Duties
  • Expected to behave in a reasonable manner at work
    and must take some responsibility for their own
    actions
  • Must cooperate with their employers with regards
    to health and safety requirements
  • Must follow all instructions and accept training
    where appropriate
  • Employees must take reasonable care for the
    safety of themselves and others

79
The Factories Act 1961
  • Applies to all premises where 2 or more people
    are employed in manual labour
  • Includes garages to engineering works
  • Sets out to ensure that minimum standards of
    cleanliness, space for people to work,
    temperature and ventilation, lighting,
    conveniences, clothing, accommodation and
    first-aid facilities are maintained

80
Office, Shops and Railway Premises Act 1963
  • Was introduced to extend protection for factories
    to other buildings
  • Provisions are similar to those of the Factories
    Act
  • Deals with cleanliness, lighting, ventilation etc

81
Control of Substances Hazardous to Health
Regulations 1988
  • Includes 19 regulations and 4 codes of practice
  • Protects all employees who work with any
    substance hazardous to their health
  • Employees must be aware of how they handle, use
    and control substances
  • Particularly important for workers in the nuclear
    fuel, chemical and asbestos industries

82
The Fire Precautions Act 1971
  • Lists premises for which a fire certificate is
    required
  • Includes premises being used as a place of work
  • Requirements set may include the means of escape
    from the building as well as instruction and
    training for employees on what to do in the event
    of a fire
  • Also details the limit of the number of people on
    the premises

83
Past Paper Questions
  • 2006 (Section 2, Q5(a)(i))
  • Employment legislation exists to protect workers.
  • Describe the purpose of the
  • Health and Safety at Work Act 1974
  • Race Relations Act 1976
  • Equal Pay Act 1970
  • 3 marks

84
Solution
  • 2006
  • Health and Safety at Work Act 1974
  • States employers and employees duties with
    regard to Health and Safety. Employees have a
    duty to take care of their own health as well as
    other employees.
  • Comment on employer AND employee to gain mark
  • Race Relations Act 1976
  • Unlawful to discriminate on the grounds of race,
    colour, religion or ethnic origin with regard to
    recruitment, training, promotion, conditions of
    service.
  • Equal Pay Act 1970
  • All employees should receive the same rate of pay
    where work of equal value is undertaken.
  • Max 1 per act

85
Past Paper Questions
  • 2005 (Section 2, Q1(c))
  • Describe 3 forms of legislation which would
    affect the running of an organisation.
  • 6 marks
  • 2003 (Section 2, Q4(b))
  • Describe how employment legislation and EU
    directives may affect the running of a Leisure
    Club.
  • 10 marks

86
Solution
  • 2005
  • Health and Safety at Work Act 1974
  • States employees and employers duties with
    regard to health and safety
  • Employers have a duty to take responsible care
    of their own health and safety as well as that of
    their employees
  • Office, Shops and Railway Premises Act 1963
  • States regulations which must be met by
    employers regarding working temperatures, toilet
    and washing facilities, first aid, space
    requirements, cleanliness
  • Equal Pay Act 1970
  • States that all employees should receive the
    same pay when work of equal value is undertaken
  • Race Relations Act 1976
  • Unlawful to discriminate on the grounds of race,
    colour, religion or ethnic origin regarding
    recruitment, training, promotion, conditions of
    service
  • Sex Discrimination Act 1975
  • Unlawful to discriminate on the grounds of sex
    or marital status regarding recruitment,
    promotion, training, conditions of service
  • Victimisation and sexual harassment are unlawful

87
Solution continued
  • 2005
  • Employment Rights Act 1996
  • States duties and rights of employer and
    employee
  • Includes the right to a written Contract of
    Employment within 2 months of starting work
  • The right to an itemised pay slip
  • Rights of employees regarding Sunday working
  • Rights of employees regarding maternity and
    termination of employment
  • Data Protection Act 1998
  • Data must be obtained fairly and lawfully
  • The organisation must register the purpose for
    which the information is held
  • They must keep records for no longer than
    necessary
  • The information must be up to date and accurate
  • Employees have a right to request to see
    information held about them and have it changed
    if incorrect
  • The information should not be used for any other
    purpose than that for which it was collected
  • They must take appropriate security measures to
    keep the information safe
  • Correct identification of Act one mark per Act
    (date not required)

88
Solution
  • 2003
  • Must make sure their policies and procedures
    comply with the following
  • Sex discrimination/Race Relations Act
  • Unlawful to discriminate on grounds of sex,
    marital status, colour, race
  • Employment Rights Act
  • Employees entitled to receive a Contract of
    Employment within 2 months of starting work
  • The right of an itemised pay slip
  • Rights regarding Sunday working, maternity and
    termination of employment
  • Health and Safety at Work Act
  • Duty of care
  • Employers must meet minimum regulations
    concerning temperature, first aid, space,
    cleanliness, etc
  • Training should be provided for staff to enable
    them to carry out the H S specified
    responsibilities
  • Minimum wage
  • Employees must receive the minimum wage
    specified
  • May affect the age of employees selected
  • Policies must be kept up to date
  • Additional staff may be required - the payroll
    increases
  • Costs and time are involved with implementing
    and checking legislation
  • Maximum 3 for naming Acts
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