Boots has a policy of retaining good staff; this is because the recruitment and training process is expensive. The business helps new staff to settle
INTRODUCTION
Human resources is concerned with the employees of a business. The term; 'human resources' has replaced the old- fashioned word personnel. Human resources according to N. Bloom is "the function that contributes to organization success by planning for, acquiring, deploying, maintaining, and developing a productive and cost-effective workforce."
Modern businesses regard staff as the most important resource; human resource management (HRM). Businesses therefore motivate, train and develop staff, as unmotivated staff do only minimum work required. Staff that are well trained are keen to do their best and committed to the aims of a business.
Employees not only want a respectable salary but also want:
- good working conditions
- fair treatment by their boss
- opportunities for training
- fair treatment irrespective of race, gender or disability
Human Resources Activities
. Recruitment, retention and dismissal:
The human resource function is responsible for recruiting new staff in boots. Boots has a specific recruitment policy which must be adhered to. Everyone involved in the interviewing and selection process is trained on laws relating to equal opportunities policy and best interviewing techniques. This reduces the possibility of any applicant being treated unfairly and ensures the best candidate is recruited.
Sources of recruitment in Boots:
- Online application (e.g. Graduate recruitment website, www.boots.com etc.)
- Job centres (e.g. Borough job centre)
- Recruitment agencies (e.g. Reed, Adecco etc.)
- Advertisements in the press and journals (Business Times, Metro etc.)
- Internal advertisement (on staff notice board, Boots employee magazine etc.))
The Boots Company offers recruitment programmes for general entrance, and schemes focused on school leavers and graduates. The company looks for various qualities in potential Boots employees. In addition to academic ability, they look for people with extra-curricular competencies such as interpersonal ability and team-working skills.
If the vacancy creates an opportunity for promotion, it is advertised internally. Boots has a policy of externally advertising only low-level jobs. This is because promotion of existing staff helps in staff motivation and development. It also helps staff to know Boots is interested in their development.
Boots has a policy of retaining good staff; this is because the recruitment and training process is expensive. The business helps new staff to settle in quickly by an induction programme. Induction programmes involves new employees learning about the company, a tour of the premises, health and safety talk and enlightment on employee rights and responsibilities. Employees are also given a copy of Boots corporate policy. Employees will also be introduced to colleagues and trained on their job and off the job at the Boots Training Centre.
*The personnel function is responsible for attracting and selecting the most suitable candidate for a position. In ensuring this, the human resource function is clear about;
- What the job entails (duties and responsibilities);
- Qualities required to do the job and (team working, communication etc.)
- Rewards needed to retain and motivate the employee (staff bonus and other benefits).
* The recruitment function is often criticised for the length of time it takes to fill up a vacancy, as most of this positions are very important. This lengthy process is necessary as it is essential to appoint the best candidate for a position, and replacement costs are very expensive.
2. Training and Development:
Boots reviews staff performance and identifies staff development and training requirements through an appraisal scheme. Appraisal interviews are help annually in Boots between employees and their managers. Appraisals are very useful in staff development as they;
- discover future potential of employees
- identify staff training needs (courses, programmes etc.)
- give employees the opportunity to talk about hopes, aspirations and problems.
Training programmes in Boots help staff development. Training can be on or off-the-job. On-the-job training is job specific and takes place in an employee's place of work. Off-the-job training is specialised and done in Boots training facility. Training programmes are carried out to;
- provide employees with the skills to carry out their job
- satisfy skill shortage
- facilitate secondment, transfer or promotion.
* The training function is guilty for taking employees off work for lengthy period of hours, usually days. It is often argued that the result of these training is not recognised in the short run. Training is however necessary has it helps employee motivational and development needs.
3. Employment Law and Equal opportunities:
The operation of the human resources function is controlled by legislation. The employment legislation ensures businesses follow minimum standards for employees. There are four main laws
- The Race Relations Act 1996 (against discrimination on any grounds)
- The Sex Discrimination Act 1975 (against discrimination on grounds of gender)
- The Employment Rights Act 1996 (covering rights of employees)
- The Disability Discrimination Act 1995 (against discrimination on the disabled)
Boots has an equal opportunities policy which stipulates that;
'Boots supports equal opportunity in employment and against all forms of unfair discrimination. Within the framework of the law, Boots is committed to achieving and maintaining a workforce broadly reflective of the community'.
4. Health and Safety:
Boots monitors health and safety in its business, as there is a lot of legislation to comply with. The health and safety executive (HSE) acts in an advisory role and provides guidance for Boots. Boots has a safety policy, as required by the law and publicised in its stores and handbooks. The safety policy covers training and instruction, company rules, emergency arrangements, and system of reporting accidents. This policy is revised regularly.
Boots has a code of practice, which states the steps all employees' must take in case of an emergency. Boots has a regional safety committee, made up of employees and the management. They hold regular meetings to check that legal requirements are being met.
Human Resources and other functional areas:
The human resources function links with other functional areas for the recruitment of staff. Boots stores and other functional areas notify the HR function of a vacancy and the HR function advertises the position and schedules interviews according to Boots policy.
The HR function is also responsible for staff training and development activities. Normally, the HR function carries out induction programmes for new staff. The HR function also advises store managers on employment laws and employee/r rights and responsibilities. It has a major role in negotiating with staff union on proposed working changes.
HUMAN RESOURCES PLANNING
Human Resource Management (HRM) in Boots
As with other twentieth century businesses, Boots has started treating its employees as part of the business and not just paid people. Human resource management (HRM) states that employees would only give their best for a company if the business prioritises the need of its employees. HRM is recognised in Boots as an arm of the business and given a high priority in the organisation's planning.
Human Resources Planning
Human resources planning is concerned with getting the right people, using them well and developing them properly in order to achieve the aim of the business. It involves identifying the most effective way and any problems that are likely to occur. Human Resources planning is involved with forecasting employee demand and supply now and in the future, and matching the demand and supply labour. A nationwide research was carried out by Boots on Human Resources planning. The report tries to meet this need by illustrating how human resource techniques can be applied to key problems. It concludes by considering the circumstances in human resources can be used.
Determine the numbers to be employed at a new location
If organisations overdo the size of the workforce it will carry surplus or under-utilised staff. If opposite, a misjudgement is made, staff may be over stretched, making in hard or impossible to meet production or service deadlines at the level expected.
So the questions asked are?
. How can output be improved your through understanding the interrelation between productivity, work organisation and technological development? What does this mean to the member of staff?
2. What techniques can be used to establish workforce requirement?
3. Have more flexible work arrangements been considered?
The principles can be applied to any exercise to define workforce requirement, whether it is a business that start-up, a relocation, or the opening of a new factory or office.
Retaining highly skilled staff
Issues about retention may not have been in the recent years, but all it needs is for organisations to lose key staff to realise that an understanding of the pattern of resignation needed. Thus organisations should:
. Monitor the extent ...
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2. What techniques can be used to establish workforce requirement?
3. Have more flexible work arrangements been considered?
The principles can be applied to any exercise to define workforce requirement, whether it is a business that start-up, a relocation, or the opening of a new factory or office.
Retaining highly skilled staff
Issues about retention may not have been in the recent years, but all it needs is for organisations to lose key staff to realise that an understanding of the pattern of resignation needed. Thus organisations should:
. Monitor the extent of resignation.
2. Discover the reason for it.
3. Establish what it is costing the organisation.
4. Compare loss rates with other similar organisations
Demand for labour
Boots demand for labour is affected by its future business plans. This could include expansion, diversion into other markets, and demand for Boots goods and services e.t.c.
The demand of labour is the total amount of people businesses are ready and willing to employ in a given time.
Forecasting labour
Long time demand for labour can be forecasted in different ways;
- Management Estimate:
Managers can forecast labour requirements based on past, present and future labour requirements.
- Work study techniques
Work-study specialists calculate the longevity of certain jobs, using machinery and equipment. Using output/ sales forecast, they can calculate number of employees required.
Supply of Labour
The supply of labour is the total number of people with the right qualifications, ready and willing to work in a given period of time. The supply of labour is made of the internal and external sources of supply.
Internal Supply
Internal supply of labour in Boots is made of employees within the organisation who can work in a given capacity either temporary or permanently. This could be in form of cover-up, transfer, secondment or promotion.
Internal supply is considered before looking externally for labour. This is because it is cheaper than external sourcing which could involve advertising paying agencies commissions to look for people. Boots therefore develops and trains current staff in this respect.
Information is collected on staff already in Boots covering the following:
. Number of employees in each department or store:
This will give an overview of all staff in Boots who possess certain qualifications or skills. For example; experience in chemist, optician e.t.c.
2. Skills analysis:
In Boots, information is collected to identify the current skills in Boots labour force, taking into condition the transferable ones. Transferable skills refer to skills which could be used in different capacities; e.g. Boots store staff could work in different stores.
Boots also assess the current supply of skills across the workforce, hereby assessing future requirements of skills.
3. Promotional Potential:
Boots collects information on the employees with the right skills and aptitude for a vacancy if it creates an opportunity for promotion.
4. Age distribution and service length:
Boots tries to balance between staff with lengthy service and new recruits. This is because coupling experience with new problems would help Boots to achieve its objectives.
A business having too many old people is static has no new ideas are been introduced, and this is a problem in a competitive business environment. A business with too many young people would have problems of inexperience in the market. Therefore it is necessary to strike a balance between the young and old.
5. Staff Turnover:
Staff turnover is the total number of people leaving a business. It is necessary to analyse this, as it identifies the reason for people leaving. This could be because of low promotional rate, poor working conditions e.t.c.
If the staff turnover rate is high, this will mean costs of recruitment, advertising and training. A balanced turnover rate will mean new ideas, natural wastage when a business wants to trim its workforce and opened promotional channel.
Modes of forecasting labour turnover
Measurement of the rate at which staff are leaving a business can be done in two ways;
- Employee wastage rate:
This is the ratio of people leaving in a time period to the number of people employed in the time period, expressed as a percentage.
Wastage Rate= Number of staff leaving in time * 100
Number of staff employed in time
This information will predict likely future turnover, hereby identifying the reasons for this turnover.
- Labour stability rate:
Boots uses the labour stability index to provide an indication of the tendency for employees with long service (retirement agent 60years UK) to remain with the company, thus linking the leaving rate with the length of service.
Stability index= no of staff leaving with more than 1 year service * 100
no employed 1 year ago
Knowledge of the current labour force enables for proper management of the skills and potential existing in a business.
External supply
The external labour market for a business is made up of potential employees, locally, regionally, national or internationally, who have the right qualification and skills, ready and willing to work at a given time.
The national labour market
The national labour market is the total number of potential employees existing in a nation. There are certain numbers of factors affecting the national labour market
- Size of the working population:
Changes in the working population (18-60 yrs) will affect the HR planning of Boots. The UK has an ageing population (more older people than younger); this has prompted Boots to employ more school leavers.
- Competition for labour:
The UK has a competitive market, which has prompted a high demand for labour among businesses. For example, is in competition for labour with IT employers for labour.
- Education and training opportunities:
The education and training opportunities available to people will affect the availability of labour in the labour market. In this direction, many UK council are offering free education to people.
Boots also gives it staff necessary training to enable them compete in the market.
- Government policies:
Government legislation affects the number of people available in the labour market. The UK government provides incentives to organisations to employ people. They also pay people to learn (education maintenance allowance). This reduces the cost of labour hereby improving human resource planning.
Education syllabi have also been designed to increase the general skill level of people. The school curricula have also been designed to make people fir into the workforce e.g. numeracy, IT skills have been emphasised. All these initiatives have provided more employees to the labour market.
However, some government have not worked out well. For example, the concept of minimum wage, Working Time Directives and increased employment right has made it legally impossible for employers to employ cheap labour.
Local labour market
The local labour market is very important to individual Boots stores, has it provides most of the staff. Boots stores need to have knowledge of the local supply of labour in their area of operation. This would include current and future employment trends. This statistic is provided to Boots by local employment offices and job centres.
The sort of information required by Boots about a locality includes:
- availability of labour
The amount of labour available in a locality is vital to Boots, in its choice of location of a store. This is because transportation to and from work for employees could be detrimental to labour availability.
The availability of labour is also dependent on the age structure of the local population, school leaving age e.t.c.
- Competition for labour
Boots is interested in its competitor's business activities and state. This is because they are constantly competing for labour. If competitors are expanding, this will increase the demand for labour in a locality, increased wage rates and low supply of labour. However, if competitors are undergoing a period of recession; demand for labour would be low, supply of labour would be high and wage rates would constantly be falling.
- Local skills shortage
In every area, there will be certain jobs going into decline because the skills required are becoming redundant. There will also be emerging demand for some skills which cannot be merged by supply. This will result in skills shortages which will affect local businesses. The wages of employees in areas of local skills shortages will be rising, and there will be competition among businesses for this scarce labour. This will result in businesses recruiting international; for example, doctors.
Boots is constantly checking areas of local skill shortages so as to develop training programmes to make sure there are enough people with the necessary skills.
Effectiveness of Boots human resource policies
Boots HR policy's effectiveness is measured by the level of employee satisfaction, which uses the wastage rate and stability index as tools.
Recruitment and Selection in Boots
Boots is constantly recruiting staff. This is done for the following reasons:
- to fill a vacancy created by dismissal, recruitment and retention
- opening of a new Boots store
- internal promotion
The recruitment process
This are the various steps involved in the employment of staff. The recruitment process is expensive and time consuming, and it is therefore essential that the right staff is recruited. It involves identifying the vacancies to be filled, advertising, sifting through applications, interviewing candidates and selecting the final candidate.
Recruitment procedures
As earlier discussed, recruitment of employees in Boots is done internally and externally. The advantages of internal recruitment are;
- It acts as a motivator to all staff to put in more effort
- Staff already in an organisation are better assessed by the personnel staff
- Considerable costs can be saved, as low advertising; interviewing and training costs are incurred.
The advantages of external recruitment are;
- New employees can contribute fresh ideas to the business
- They are more dedicated to the job especially in cases of job monotony
Job Descriptions
This is the first process carried out by the personnel function in Boots. It involves carrying out a job analysis from which a job description is outlined. A job description contains basic information basic information about a job and the role and responsibilities of the jobholder. It contains the following elements;
- The job title (summary of the job)
- Duties and responsibilities
- Position within the organisational structure and department of work
- Physical and social conditions
- Appraisal arrangements
Person specification
This specifies the skills and abilities required of the job holder. Person specifications are divided into essential and desirable qualities. They tend to cover areas of experience, personal attributes and qualifications.
Benefits of job descriptions and person specification
There are several benefits for both Boots and prospective employees. It includes:
For Boots
- Applications can be assessed quickly for suitability
- It helps to decide a fair salary for the job according to government requirements
- Training programmes can be easily identified
For employees
- Unsuitable applicants would not apply for the job
- Applicants can see clearly what a job entails
- Applicants can see what there duties and responsibilities are
Advertisement planning
Boots communicates vacancies to the public by means of advertisement, collated by the personnel department. Boots uses various sources for placement of its adverts including;
- Staff notice boards
- Store front notices
- Job centres
- Dailies (metro, The Times)
Good Advertisements contain the following elements:
- Job title (main heading)
- Job description (job requirements)
- Location (location of organisation and job, if different)
- Salary (salary level and scale)
- Qualifications and experience (minimum levels)
Job Applications
Letters of application
Application letters are letters written by prospective employees signifying their interest in a business. Boots only accepts application letters for managerial roles. They are expected to have a clear structure, interesting and very legible. They are used to support application forms and curriculum vitae. They contain the following information:
- reason for application
- self development programmes undertaken
- skills and knowledge acquired
Curriculum vitae
CV's is a summary of a candidate's ability, qualifications and experience to date. CV's are the main recruitment tool in Boots. It contains the following information;
- personal information
- education and training
- qualifications and references
The Shortlisting process
At the advertising a position, many applicants are received from interested candidates. The recruitment officer or manager sifts this through carefully. Applications that don't meet certain criteria are discarded away, and those that meet the required standards are invited for interview. This process is known as shortlisting.
The Interview process
The recruitment and selection process is closely knitted. Selection is the process of choosing people to work in a business. Selection interviews in Boots are well organised, they are arranged at convenient times, location and present to candidates a realistic picture of the job.
There are some characteristics Boots looks for in an applicant. It includes:
* Leading the thinking
See the big picture no matter how complex; offer and stimulate new ideas and turn complex issues into clear strategies.
o When have you looked for and found solutions beyond the obvious?
o In what ways have you challenged received wisdom?
o When have you identified clear solutions to complex problems?
o How logical are you in your approach?
* Leading the pace
Understand and focus on the important, drive to deliver better performance and be decisive in a crisis.
o Can you prioritise, focusing on the important issues and dispensing with others?
o Do you regularly achieve standards that you set and which are beyond those expected by others?
o When do other rely upon you to make things happen?
* Leading the team
Act as a catalyst driving for results and restlessly seeking to win.
o Do people enjoy working with you, do you create a buzz?
o How do you influence others even when the cause looks lost?
o Have you been able to get good results from difficult people? How did you manage it?
The selection process relies on application forms, interviews and selection centres. The company now operates competency-based interviews. This is the process whereby applicants are asked to back up statements in interview with examples of personal experience, thus providing real evidence of their capabilities.
Boots interviews include psychometric and aptitude tests, questions on candidate future plans and also a check on their application responses.
Training and Development Programmes in Boots
Training and development is essential to Boot's success. Boots recognises that the easiest route to making it more productive is increasing the potential of employees. The purpose of training is to ensure that, staff can attain an acceptable level of performance in their jobs.
'Training' sets out to fill the gap between what a person can do and what they should be able to do. It is concerned with the building up skills and knowledge to increase staff competence.
'Development' is the modification of behaviour through experience. Development sets out to enable individuals to do better in their existing jobs.
Staff training helps Boots to add value to its products, hence gaining competitive advantage.
Training
Training as defined in Boots is 'systematically guiding employees to perform a task by subjecting them to various exercises or experiences, so they can improve job-related skills and knowledge'.
Lack of training leads to a reduction in general production level, errors and waste. Employees with good potential may decide to leave in frustration.
Development
Development is concerned with improving employees in the best ways that suits individual needs. By bringing training and development together, Boots aims to help employees develop themselves hereby making them more inclined to contribute in helping Boots achieve its objectives.
Personal professional development is the responsibility of each individual, and involves identifying ways of further developing yourself and working towards it. Appraisal schemes help employees to further clarify their development needs.
Personal Development Plan (PDP) help in the development process. Boots advises its staff to communicate their PDP with line managers or team leader. This allows the business to support the individual by providing resources, methods and support required. PDP's include;
- employee goals and aspirations
- outline of the resources and support required to achieve these goals
- indication of time period required to achieve these goals
- indication of the value of these goals
Training problems
- UK businesses consider it cheaper to employ already skilled workers rather than to pay the cost of training their own employees
- Many employers don't still understand the relationship between training and employees and more profit returns
Training benefits
- Effective training improves the competitiveness of a business, increases its productivity and service to customers
- Training costs are cheaper than recruitment costs in the long run
- Improved efficiency results from training which reduces wastage, improves performance, reliability and creates a more flexible workforce
- It increases employee motivation and enjoyment of work
- Faster adaptation to new production technologies
- Lower staff turnover and hence lower recruitment costs
Training programmes are carried out for various reasons;
- To provide new employees with skills and knowledge to perform their jobs
- To satisfy a skills shortage, either in a department or Boots as a whole.
- To improve employee performance
Training Activities
. Induction programmes
Induction is an introduction programme for new employees to the place of work, job, surroundings, and co-workers. Induction programmes allow new employees to 'fit in'.
Induction programmes consider the initial training and development required by employees either on joining the business or taking on a new function. Induction programmes have three elements:
- Personal element, which includes details of the company policy and procedures; conditions of employment; knowledge of the building layout, environment and people; health and safety information (Boots has a health and safety handbook for all employees).
- Job element, relating to the job, duties and responsibilities.
- Organisation element, relating to the history of the business, the structure of the business and job titles, and information on products and markets.
New employees are put in different departments for a short period in Boots, as part of the induction programme. This is to enable the employee to build up a rapport with co-workers and also obtain a good overview of the business.
2. Mentoring:
Most employees in Boots are assigned a mentor, allowing for personal development. Mentoring involves pairing a new employee with a more experience employee. This allows for the 'trainee' to discuss any problems with the mentor, who is more experienced and in a better position to advise the 'trainee'.
3. Coaching:
Though not relevant to Boots, coaching involves providing individuals with personal coaches in the workplace. Coaching allows for development of both the person being coached and the coach. Coaching is common in the sports industry.
4. Internal (In-house) and External Training)
Internal training is carried out in Boots training department, an arm of the human resources department. External training in Boots occurs when employees are sent on courses away from the business.
Internal training takes place on- the-job or off-the-job, but is held within Boots.
- On-the-job training
On-the-job training involves employees being trained in their place of work, referred to in Boots as 'grass roots' training. This is appropriate when training is job specific and its main advantage is that training can be scheduled flexibly around an employee's working hours. An employee's knowledge and competence is also easily tested. The disadvantages include the fact that the trainer may be inexperience in passing on his/her skills to the trainee and trainee may be interrupted if there are urgent headlines to be met.
- Off-the-job training
Off-the-job training takes place takes place away from the employee's normal working place. This is carried out in Boots at the regional Boots offices all over the UK. The benefits include; employee is away from work, hence no distractions. A disadvantage is that training sessions are inflexible and held at certain times.
Performance Management
Performance management of employees is very essential to the competitiveness of a business. Performance is the process of carrying out a particular task. It is important to keep a check on performance, if set standards are to be met. Store managers and supervisors in Boots are responsible for establishing standards and monitoring performance.
Performance Reviews
Boots centres its aims and objectives on employees. Every employee has personal objectives or goals which act as a benchmark for measuring the success of Boots and the performance of individual employee. A well developed performance management cycle is as sketched below:
Individual objectives company objectives
Missions
Performance reviews company results
Performance appraisal:
This is the process of evaluating performance systematically and providing feedback on which performance adjustments can be made. Appraisal interviews are held annually in Boots, between employees and their managers, confidentially. A good appraisal scheme will allow employees to nominate a different person to appraise them.
Features of a good appraisal schemes
- The appraisee is given advance warning of the appraisal by the appraisor
- The appraisee clearly understands what will be discussed. The normal content is: review of past performance linked to success in meeting targets, review of overall job performance, new aims and objectives for the forthcoming year and an assessment of training and development requirements.
- The appraisee should do most of the talking and is encouraged to make suggestions to improve performance.
- The aim of appraisals is to act as a motivation.
Benefits of appraisals:
. It helps to discover the full potential of employees
2. it identifies the training required and link this to the organisation's objectives
3. Appraisals control and monitor employee performance
4. It checks the effectiveness of current practices in relation to recruitment and training
5. It improves employee motivation by understanding and recognising their needs.
Self Evaluation:
As an aspect of performance management, it involves employees identifying and assessing ways of meeting their personal objectives. Employees of Boots are encouraged to carry out self-evaluation and review this regularly. The benefits of self-evaluation include:
. Self evaluation is cost effective
2. The employee is more knowledgeable about their job than an external appraiser
3. Self evaluation is motivational
Motivation in Boots
Boots believes that motivated employees are interested and ardent about their jobs and work hard to succeed in what they do. Studies have shown that the following are motivators:
- job satisfaction (sense of achievement)
- financial rewards (wages/salary/bonuses)
- benefits (pension, insurance)
- promotion and responsibility
- praise and recognition
Motivation studies
It is important for a business to motivate its employees. Motivation is the level of commitment individuals have to what they are doing. Workplace motivation is concerned with commitment to an organisation, its objectives and targets. In the short run a lack of motivation leads to reduced effort and commitment. In the long run, this will result in high levels of absenteeism, falling productivity and profits.
Different motivation theories have been put forward outlining the sorts of approaches that can be used to motivate people in the workplace.
The Motivation cycle
Revise (if need is not satisfied)
Identify motivation Incentive Satisfaction Outcome
Abraham Maslow's 'Hierarchy of needs'
Abraham Maslow made the first comprehensive attempt to classify needs in 1954. Maslow's theory can be divided into two; the classification of needs and the relation of these needs with each other. Maslow suggested that these 'classes' of needs can be placed into a hierarchy.
- Physiological needs such as wages enough to meet a good working condition i.e. food, shelter and clothing
- Security at workplace e.g. job security, safe working conditions.
- Group needs are met by team working and concerned with an individual's need for affection and love.
- Self-esteem: This is where giving status to individuals and recognising their achievements help motivate workers.
- Self-actualisation, e.g. being promoted and given more responsibility.
Maslow's theories of motivation have been popular since the 1950s and are based on meeting people's needs in the workplace. The theory suggests that unsatisfied needs can lead to dissatisfaction.
Maslow argued that the needs at the bottom are basic needs, concerned with survival. Moving up one level makes the one below less important. Self-actualisation allows an employee to fulfil his full potential. Maslow's idea has a great appeal to Boots. Boots aims to find out what level an individual is at and decide on suitable rewards. This is because unsatisfied needs can lead to staff dissatisfaction.
Frederick Taylor's 'Principles of Scientific Management'
Scientific managers assumed that employees are alike and that their motivations are simple. He believed that managers should be allowed to manage based on scientific principles of work study. Taylor believed monetary reward was an important motivating factor that would drive the system. He believed higher interest rates could be offered as an inducement for increased rates of output.
Scientific management dominated management thinking in the early part of the last century, as work had been designed in such a way it required minimum thought. (E.g. McDonalds and Ford).
Problems with Taylor's approach
- The notion of a 'quickest and best way' for all workers does not take into account individual differences.
- Taylor's theory viewed employees as machines with financial needs, than as humans.
The 'Principles of Scientific Management' is not applicable to Boots plc as Staff are considered, as the most important function in the success of the business and teamworking does not work based on this principle.
Douglas McGregor's 'Theory X and Theory Y'
McGregor identified the reasons why people work. Theory X and Theory Y describe these qualities
Theory X Theory Y
- Workers are lazy and dislike work - Workers have different needs
- Workers are motivated by money - Workers can enjoy work
- Workers need to be directed by management - If well organised, workers
can take responsibility
Theory X assumes that people are lazy and the only way to properly manage workers is by using strict control in form of coercion (stick approach) and rewards (carrot approach).
Theory Y assumes that staff are motivated by having control over their work, a sense of belonging. Boots behaves according to Theory X as staff are seen as part of the business. It uses money and control to encourage staff to behave as part of the 'family'. Boot understands that staff will contribute to the business's objectives when given the opportunity and responsibility.
Boots generally believes that motivational theories are theoretical and are focused on promotion and control. It believes staff can be given extra responsibilities such as mentoring and teamworking.
Motivation in Boots
Financial Rewards Non-financial Rewards
- Wages and salaries - Job rotation
- Fringe benefits - Teamworking
- Shares in Boots - Empowerment
Boots offers pay and working conditions which are both highly competitive and above average.
It is committed to an open and honest management system, which enables all employees to be well informed and to understand issues affecting the business. Its has a progressive and competitive policies on performance and reward, designed to recruit, motivate, develop and retail high quality people.
Employees are also encouraged to make best possible use of opportunities for learning and development, which may arise at work, in training activities and in further education. They encourage movement across business and functional boundaries within the company, to develop breadth and depth of experience, and offer opportunities for career development.
A company-wide Profits Related Bonus Scheme operates, to reward individuals for the business performance of the company. All permanent members of staff in the UK, both full and part-time, are eligible.
Boots operates various schemes to motivate workers in stores.
* Various incentive and reward schemes - Store managers recognise and reward excellent performance from their staff, be it in sales, customer service or housekeeping. Staff 'rewards' vary from being awarded staff scratch cards to extra advantage card points and entrance to various competitions
* Managers bonus - Store managers have the opportunity to earn substantial cash bonuses based on various aspects of stores performance, net sales, store housekeeping and customer service records.
In addition to company wide schemes, Boots stores commonly operate local motivational practices which are delivered at each store's discretion.
Each business unit and Group Headquarters Logistics have similar Staff Councils, which meet regularly during the year. A company-wide, Combined Central Staff Council, comprising representatives from each Staff Council, meets twice yearly, in June and November.
The new Boots Staff Council aims to enable two-way communication between all Boots staff and the Company's most senior managers more effectively.
The new Boots Staff Council's mission statement is:-
"To act as a two-way communication tool to support and listen to all staff and develop ownership and pride in the business."
* Utilise a greater breadth of knowledge in the Company to provide feedback, generate ideas to improve the efficiency and effectiveness, and help to solve problems
* Use Staff Councillors as a sounding board to influence Company initiatives at the planning stage
Evaluation of Boots Human Resources
The human resource function Boots is very effective but there is still room for improvement. Boots outsources its labour from recruitment agencies that is always looking out for university graduates. This is a very positive development as it allows the best labour available in the market to be recruited. In addition to academic ability, they look for people with extra-curricular competencies such as interpersonal ability and team-working skills. This people possess various qualifications and employed in various fields in Boots. In recent years, this has ensured that Boots has remained the number one retailer and manufacturer in its field, as these employees bring different expertise and innovation into Boots.
It is also worthy to note that Boots mission statement is the guiding principle for its human resources. It states that: The Boots Company intends to become the leader in wellbeing products and services in the UK and overseas. This will be achieved through a major programme of change to a more integrated and focused company supported by the power and values of the Boots brand.
Boots Company is committed to treating all members of staff and applicants for employment in the same way, regardless of gender, sexual orientation, race, ethnic origin, marital status, age, disability or religion.
This commitment includes:
* The elimination of discrimination of any sort, including harassment.
* The promotion of equality of opportunity in employment.
* A continuing programme of action to make the policy fully effective.
* Employment policies that aim to ensure that people receive treatment that is fair, equitable and consistent with their skills and abilities.
* Regular reviews of practices in recruitment, selection, promotion and training to ensure they provide equality of opportunity.
* Monitoring the composition of the workforce, and its policies and procedures to ensure the Equal Opportunities Policy is being properly implemented. Staff and job applicants are expected to co-operate in this process.
Boots Company believes that everyone benefits from a working environment where respect for the individual is encouraged, and if staff feels they have been treated in a way that is contrary to this policy the issue should be dealt with by a senior manager, or directly by Personnel.
Boots Company will make every effort to secure a satisfactory resolution, either by informal means, or formally through the Grievance Procedure.
Training in new skills is being built into development programmes throughout the organisation. Increased investment in customer service training, which's been successfully trialled in the new core format stores, will be extended to all stores this year. A change in store management structure has given greater opportunity for its people to influence what happens at local level.
