Human Resources planning.
Human Resources Unit 4
Trisha spring
Contents Page
Terms of reference
Introduction
Human Resources planning
External labour market information
Internal labour market information
Recruitment and selection
Legal factors
Recruitment process and key recruitment documents
Training and Development
Training and development systems
Performance management
Motivational theory
Relationship
Conclusion
Bibliography
Appendices
Terms of reference
The Claim Group
88 Kingsway, Holborn, London WC2B 6AA
This assignment is based on the Human resources processes of The Claim Group, a private limited company that provides a compensation service for members of the public that have had an accident that wasn't their fault.
The Claim Group is an independent organisation which sole aim is to provide a risk free scheme by which all accident victims can pursue compensation for their injuries.
The Claim Group coordinates and manages a "NO WIN NO FEE" agreement, which involves personal injury solicitors, legal expense insurance and expert witnesses.
Their purpose is to find members of the public who have had an accident and refer them to partnered solicitors. BY working with the solicitors and witnesses TCG are able to help in claiming compensation for members of the public.
With expert sales teams, management and solid partnerships they have become a successful company.
The Claim Groups Human Resources objectives are:
* Maintaining a skilled workforce
* HR growth
* To keep employees happy
Introduction
The Human Resources Function
Human Resources within an organisation is to assist with the development of the human resources needed for the success of the organisation.
There are four main responsibilities of the Human resources function:
Human resources planning
Businesses have to plan carefully to ensure that they have the right amount and quality of employees needed for the present and future.
Whilst planning HR factors such as employment trends, labour turnover and skills shortages need to be taken into account. Part of HR planning is the collection and analysis of this data in order to make decisions on the organisations plans.
Successful HR planning in an organisation will ensure that the right people fill the right vacancies at the right time. It contributes to the effectiveness of all four functions of human resources.
Recruitment and selection
Recruitment and selection involve all processes involved in bringing new employees into a business, the job analysis, job advertising, selection and interview.
All these processes are to help find the best quality applicant for the position.
In any organisation the employees are their main and most important asset and a quality workforce will lead to success in any organisation.
Training and Development
In the HR function they are responsible for devising training and development programmes for the employees of the organisation. Training needs need to be identified, the type of training needs to be decided e.g. on or off the job training and development programmes need to be decided e.g. job enlargement and coaching.
The responsibility also involves training assessment and analysis of its effectiveness.
Good training and development programmes in an organisation are essential for an organisation to retain a quality workforce and remain competitive.
Training and development is devised to get the best out of every employee
Performance management
Performance management is based on the idea of keeping employees happy. If employees are kept happy then high absence rates and high labour turnover can be avoided.
The theory is that employees will not work effectively or to their highest performance if they do not have the right working environment, wages, leave, hours of work and health and safety need to be taken into consideration.
Performance management focuses on making sure that all these areas are sustainable and right for employees by analysing each employee's performance through performance appraisals.
Human Resources Planning
Human Resources Planning
Human resources planning are a key part of the human resources function.
Through human resources planning decisions can be made on how to go about doing recruitment and selection, performance Management and employee training.
It is a strategic activity to ensure the right people resources are available and will be available in the future in order for the organisation to meet its HR plans.
Human resources planning involve the collection of information inside and outside of the organisation relating to the following:
External to the organisation:
* Employment trends
* Skills shortages
* Availability of labour
Internal organisation information:
* Ages of the workforce
* Skills
* Training
* Sickness and accident rates
* Labour turnover and labour wastage rate
External labour market information
Analysing external labour market information gives an organisation a good base for meeting objectives in Human resources planning.
The information collected allows better decisions to be made on recruitment, training and all other aspects of the Human Resources function.
Employment trends
The Claim group's base is in London so employment statistics on the London area need to be collected.
The graph above shows that employment rates have been gradually decreasing the latest employment rate show the employment rate at 70.8 per cent, down 0.5 percentage points from the period the year before. The trend shows that the possible outcome for 2003 is either decline or a steady increase.
Employment estimates for 2003
The graph above shows the estimates for employment levels in London for 2003.
The upper limit shows the highest they could possibly be and the lower limit shows the lowest. The IFS is the average estimate for 2003 employment rates at 70.4%, which is 4% points down from the year before 2002. Although the estimate shows a small increase the actual rates could be anywhere between the upper limit (71.5%) and the lower limit (69.3%).
Unemployment rates
The trend for unemployment shows that there could be possible increase in unemployment for 2003. The unemployment rate was 7.0 per cent, up
0.6 percentage points on a year earlier.
Unemployment estimate for 2003
The estimate for unemployment rates in 2003 is 7.5%, which is 0.5% points higher than the year 2002. Unemployment levels are likely to rise in 2003 but either way there will be quite a minimal change.
Unemployment by area
The graph above shows the unemployment rates of regions in inner and outer London. Areas of Hackney (16.4%), Southwark (13.1%), Newham (13.5%), Lambeth (9.6%) Haringay (12.7%) all have relatively high unemployment rates compared to that of Bromley and Harrow.
The affects of employment trends on The Claim group
Current employment trends and estimates in London show that employment rates are likely to decrease and unemployment rates are likely to rise.
The lower higher unemployment levels will affect availability of labour making it easier to find staff. There will be a higher proportion of the population looking for work meaning whilst recruiting the Claim Group should have more applicants.
Part of the Claims Group corporate objectives is further growth into other areas of London.
The statistics on levels of unemployment levels in different areas will give The Claim Group a bases on where to extend their services to. To find employees a little easier they are better off setting up bases in areas such as Hackney, Southwark and Newham that have higher unemployment levels other than areas like Bromley with relatively low unemployment levels.
By directing their recruitment processes at these areas they would have a good recruitment base for better growth.
Recruitment
The graph below shows the percentage of organisations that had trouble recruiting in 2002.
69% of organizations had difficulties recruiting in the previous year'
The four most important reasons for recruitment difficulty included
* Lack of required experience (55%),
* Lack of required technical skills (54%)
* Poor-quality applicants (49%).
It took an average of 9.5 weeks for employers to fill their vacancies.
Newspapers are still the most popular recruitment method (87%); e-recruitment has had only a limited impact in practice.
Skills shortages
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This is a preview of the whole essay
Recruitment
The graph below shows the percentage of organisations that had trouble recruiting in 2002.
69% of organizations had difficulties recruiting in the previous year'
The four most important reasons for recruitment difficulty included
* Lack of required experience (55%),
* Lack of required technical skills (54%)
* Poor-quality applicants (49%).
It took an average of 9.5 weeks for employers to fill their vacancies.
Newspapers are still the most popular recruitment method (87%); e-recruitment has had only a limited impact in practice.
Skills shortages
The most common reason for recruitment difficulty is finding applicants with suitable experience (55%), with around 30% struggling to hire sales staff and 31.8% managers.
Non-IT skills are in shortest supply
2003
2002
% Change (2002-03)
Project Management
34.6%
35.7%
-3.1%
Leadership
30.2%
32.3%
-6.5%
Budget Planning
2.0%
3.3%
-9.8%
Foreign languages
22.7%
23.8%
-4.6%
Non-IT technical
7.1%
6.6%
+3.0%
Other OS
8.1%
7.7%
-5.2%
Skills shortages reaching record levels
A human resources company claims that shortages of skilled workers have reached record levels in parts of British industry.
More than two out of three firms are being hit by a shortage of skilled staff, with the problem even worse in service companies.
According to the survey by Reed, the service sector has record levels of skills shortages. According to a new report released today by the Learning and Skills Council, in 2002 nearly a quarter (23%) of companies reported a skill gap, up 7% on 2001. The Skills in England 2002 report shows that skill gaps are occurring because of the introduction of new technology; organisational change; the lack of training and HR development and changes in products or services.
The affect of skills shortages on The Claim Group
The Claim Group is sales based company. They need employees that have experience in sales.
Current skills shortage statistics show that experienced sales staff is the hardest to find with 29% of organizations having trouble recruiting sales staff.
The Claim Group offer extensive training and due to sales staff shortages employ less than qualified applicants with potential for training.
Statistics also show that 31.8% of organizations have trouble finding experienced managers.
Since part of The Claim groups performance management programme is to offer 'high promotion prospects' their management recruitment is based on employing internal staff for the job, their knowledge of the industry and the organization helps with their training to become manager. Staffs are taught managerial skills through off the and on the job training, coaching and understudying. This avoids long and expensive recruitment processes.
Internal Labour market Information
Internal labour market information is past records from inside the organization, for example, sickness and accident rates, labour turnover and skills. By collecting and interpreting this information an organization can make decisions on future Human Resources plans.
Sickness and Absence
In the last year of The Claim Group at rates of 3% per day with each employee having an average of 12 absence days per year.
The graph below shows the growing trend of absences over the previous years in The Claim Group:
The graph shows that absence rates could continue going down if the right implementations aren't taken.
Past records show that the following are the main reasons for employee absences:
* Minor illnesses such as colds or flu are the main cause.
* Stress
The affect of sickness and absence on the Claim Group
The more time employees take off the more money, which is lost by the company in working areas and sales. It is one the great financial burdens on most organizations. To reduce sickness and absence there are various procedures that could be used for example:
* Monitor the causes,
* Reducing sick pay after a specified period and then disciplinary action,
* Offer of reduced working hours on a temporary or permanent basis.
* Maintaining regular contact with the absent employee and referring them to health professionals.
Labour wastage rate
The labour wastage rate for the last year of The Claim group is 331.
The labour stability index for the last two-year period is 70.7%
The average
Training
TH Claim Groups current training programmes are on and off the job training.
Recruitment and
Selection
The Recruitment Process
There are many processes involved in filling a vacancy in an organisation. The vacancy needs to be identified, future applicants need to be informed of the vacancy and apply, the applicants need to be short listed, interviewed and short listed again.
Below is a diagram showing the key stages in the recruitment process.
HR Planning
==>
Is there a vacancy?
?
Job analysis
==>
If yes should the job be done in the same way?
?
Design/update job description and personal specification. Consult the competency framework where appropriate.
?
Seek authorisation to recruit and choose selection methods.
?
Advertise in appropriate media.
?
Shortlist
?
Interview/test etc.
?
Assess candidates
?
Decide and make offer
?
Sort references, medical etc.
?
Appoint, induct, train and evaluate
Legislation
One of the key factors, which must be considered all throughout the recruitment process, is legislation.
There are three main Acts, which need to be applied during the recruitment process.
The sex discrimination Acts, the race relations act and the Disability discrimination act.
Sex discrimination Acts 1975 and 1986
The act outlines the fact that it unlawful to discriminate a person on the grounds of gender or marital status.
Both direct and indirect discrimination is unlawful.
To avoid direct discrimination organisations must choose applicants based on their qualifications and suitability for the job rather than gender.
To avoid indirect discrimination, during advertisements and Job specifications organisations have to be careful that the criteria set down for the vacancy is not of a discriminative language.
Race Relations Act 1976
The race relation's act is similar to the sex discrimination act. Direct and indirect race discrimination are both illegal.
There is a Commission for Racial Equality, which provides a Code of Practice, which encourages monitoring to help identify and eliminate race discrimination.
Disability Discrimination Act 1995
This states that it is unlawful to treat disabled less favourably that others. Employers are required to make reasonable adjustments to premises for disabled applicants.
There is also a Code of Practice written by the Disability Rights Commission (DRC)
To put it simply the Race Relations Act, Disability Discrimination Act and the Sex Discrimination Act make it unlawful for an organisation to take a persons, colour, race, nationality, ethnic origin, disability, gender and marital status into account when making an employment decision.
They should also be taken into account at other stages of the employment process from the Job analysis to advertising and the way of selection.
The Recruitment Process
Field Study
This is the first stage of the recruitment process.
In order to write up or update a Job Description and Personal Specification the job must be analysed. By analysing the job you will find out how the job is performed, what skills are needed to perform the job and if the way the job is done should be changed to give more or less responsibility.
There are various ways of carrying out a field study e.g. observation of the job, interview, self-reports, diaries, etc.
Job Description
After the field study has been carried out there is the writing of the job description, which describes the main duties of the job.
As an Example The Claim Groups Job description for a Claims advisor:
Job title: Claims Advisor
Reports to: Area Manager
Scope of job: To advise members of the public who have had an accident, which wasn't their fault on making a claim.
Job Content:
. Canvassing in Town centres
2. Door canvassing
3. Manning exhibition stands
This is an important document in the recruitment process; it defines for employees and candidates for employment exactly what is expected of them in the position. It has effective use in the recruitment process, selecting of the right applicant and the induction process.
Personnel Specification
After the Job description is written up then a personal specification has to be written.
A Personal specification describes the ideal person for the job. Its sets down the minimum requirements that an applicant must have before being considered for employment.
Below is an example of a Personal Specification
Job title: Claims advisor
Requirements
Essential
Desirable
Method of assessment
Qualifications
GCSE English and Maths grade C or above
5 GCSE'S or more
Educational certificates
Experience
No experience necessary, full training given
At least 6 months sales experience
CV's and application forms
Personal Qualities
Confident, smart appearance, excellent communication skills and self motivated
Persuasive, likes a challenge
Interview
This document helps in the advertising process, as the skills needed should be stated on the advertisement. It is a key document in the selection process as those who do not meet the minimum requirements will not be asked for an interview and the desirable section helps to shortlist applicants according to the best qualified.
Competency Frameworks
In addition to a Personal Specification a Competency Framework can be drawn up. The information collected from field study is used to describe typical behaviours that would be expected when observing a good performer.
This document makes the Job Analysis more thorough and easier for interviewers to assess and define what exactly it is they are looking for in an employee.
Whilst short listing from Application forms and CV's, and during interviews the Competency Framework is consulted.
Below is an example of a Competency Framework for an area Manager of the Claim Group.
Sales Management competencies
Rate yourself on these different aspects:
4 3 2 1
Excellent Good OK-could be Need to improve
better
• Sales planning- accuracy of forecasting
• Resource planning - organizing sales structure
• Sales force direction and control
• Sales targeting
• Sales budgeting - setting and working to
• Recruitment of sales force
• Skill (and attitude) development of sales force
(Field coaching, identifying training needs, coordinating training)
• Sales force motivation
• Analysis of sales/market information
• Customer relationships - especially major accounts
• Marketing interface
• Internal relationships with other departments
• Personal organization
• Establishing sales strategy - generally and for key accounts
The manager will be rated on how good they are or will be at the above points giving an idea of what might need improvement or training. This document can also be used in performance management.
Advertising the vacancy
Before the vacancy is advertised by using the job description and personal specification the kind of market the organisation are aiming the advertisement at has to researched.
For the Claim Group to advertise for a claims advisor they would be advertising to the lower end of the market.
There are many different ways of advertising a job vacancy.
The Claim Group use these ways to advertise for their Claims advisors
Job Centre
This is a free way of job advertising and will reach the right market of employees that they are looking for.
Newspapers
Papers like the Sun and the mirror are used for their advertisement. Also local papers are used.
In writing up the advertisement the personal specification and job description is used to let people know what kind of job they will be applying for and if they have the qualities that are asked of them. Below shows an example of an advertisement for The Claims group and the underlined shows how the Personal Specification and the Job Description are used to complete the advertisement.
Re: Position of Claims Advisor
The Claim Group Ltd is a marketing and accident management company who provide a free legal service to members of the public who have had an accident that wasn't their fault. Our scheme enables them to gain compensation for the injuries they have suffered.
We have vacancies for 25 canvassers to work in and around the Northampton area.
Hours available
9am to 5.30pm
2pm to 8pm
We will also consider flexible part-time hours for the right candidates.
Basic salary is 10-12k plus commission with on target earnings of 21k, plus mobile phone (pro-rota for part-time) with a fast management structure.
Please fax your CV to 0207 841 1001 or call 0207 681 6555 leaving a brief message and contact number. Please quote reference No. UN11.
Candidates should be self-motivated and have excellent communication skills. Sales experience would be an advantage, but training can be provided.
Main duties include canvassing in town centres, door canvassing and manning exhibition stands.
Local interviews.
The Selection process
Candidates can be selected through means of application form or CV.
An Application form is good to use because organisations can write their application forms to get the information that they want.
A Curriculum Vitae is good because it shows the candidates personality by the way their CV is layed out and written. The Claim group uses CV's as their means of selection
Candidates are short listed from the application forms and CV's. The Personal specification is referred to see who has the qualities to go forward to interview.
The Interview
A successful interview is one that comes out with as much information as possible about the candidate so that it can be compared with the personal specification.
To provoke a candidate to speak the questions must structured properly and be open questions.
The Job description and Personal specification need to be looked over for question planning and the candidates CV or application form.
Each candidates interview needs to be assessed in the same way so that they can be easily compared to other candidates.
Some organisations use an interview assessment form that gives each candidate a score out of 10 for all the qualities that they would like in an employee.
The next page shows an interview assessment for The Claim Group Ltd.
Training, Development and Performance Management
Training and Development
The general definition of training is:
' The acquisition of a body of knowledge and skills which can be applied to a particular job'
Most large organisations employ a training programme to train their employees.
There are two main types of training programme, on the job and off the job training.
On the job training
The training or development takes place in the workplace itself.
Off the job training
This means that employees will attend courses outside of the workplace usually in either a specialist learning centre or local college.
There are two types of skills learned in the training and development process.
Transferable and non-transferable skills.
Transferable skills - are skills that can be used in a variety of jobs and will be of use to the employees if they decide to look for another job.
Non- transferable skills - are skills that apply to that job only and won't be of much use to in any other job.
Types of training
Induction training for new employees
Induction training must be carried out so that employees will know what it is they are doing and how to do it.
It is the process of introducing new employees into the organisation.
* An induction programme for the claim group will involve:
* A tour of the building that they are working in, showing all the important areas.
* A speech on the organisations history and culture
* A briefing on their duties and their importance to the organisation.
* An introduction to their team members and area manager.
The induction process is a way for everyone to get to know each other.
Initial training for new employees
After induction is carried out employees have to be trained on their job to insure the job is done properly.
The initial training programme for a claims advisor of The Claim Group is a trial day.
The duties of a Claims advisor are:
Door canvassing and canvassing in Town centres.
Their manager who assists in training shows them the proper way to the activities that needed to be carried out.
A claims advisors main activity is door canvassing. Employees are given a booklet on sales training and their manager goes through it with them. The booklet discusses the correct way to approach someone about a claim, the correct things to say, body language and the way to sell yourself.
On the trial day each person is to knock on doors and sell themselves to get a claim each time they knock on a door they are told what they have done right and what they have done wrong and how to correct it.
This training programme gives the employees a feel for their job and they are able to find the best way for them of doing it.
It also gives the employers an idea of how much training will be needed.
In-house training courses.
For claims advisors of the claim group legal representatives train them in-house.
Their training includes: Legal framework
What is a claim?
Guidelines for the assessment of general damages in a personal injury case
The benefits of in-house training are
* It is fairly cheap to run
* Course content is tailor made for the organisation
* Everybody gets to know each other
The subjects that are covered in the training courses add to the performance of the business. A claims advisors job is to get prospective clients who have had a trip or fall and refer them to solicitors. Their training on assessment of damages and legal framework give them the knowledge to decide whether a claim is worth taking to the solicitors. With this knowledge they can save time for everyone.
Developing employees
The Claim group uses the following programmes to help with the development of their employees:
Mentoring
New employees are given a mentor, which is usually either their direct manager or a team member. They are there to help them prosper in the business and guide them to success.
Understudying
An employee is attached to a manager as an assistant so they get an idea of the manager's job. This would usually be an employee who has the potential to become a manager
Internal and external courses
Any employee who has the potential to be a manager but does not have the skills would be sent on a course.
All these development programmes help the businesses performance by increasing the skills that employees have so their job is done better.
The Claim group has good promotion prospects and people usually become managers by working their way up. The development programmes instilled in the organisation helps employees to work their way up. This is benefiting to the organisation because the managers are always experienced in the organisations culture so they will contribute to a better performance of the business.
Performance Management
The idea of performance management is that if employee's performance is analysed and feedback is given to them they will be motivated to work more effectively.
It is the process of valuing employees worth to the organisation with a view to increasing it.
Using performance Management systems is important in running a business.
By carrying out performance appraisals on employees regularly, any problems can be identified and dealt with through training programs.
The benefits of performance appraisal:
* It helps to identify training needs
* It may reveal other problems - there may be difficulties with other staff
* May untap new skills
* Makes good communication between employees and managers
* Good appraisals can be motivating
* If dismissals need to be made then performance appraisal records will be available to consult.
Performance appraisals can be carried out in many different ways
The usual procedure and one that is carried out by the accident group is as follows:
The first task is for a report to be written on the employees performance so far and is usually carried out by the employees direct superior.
The appraiser writes an appraisal report about the appraised.
This is done on a blank sheet of paper giving freedom for the appraiser to write what they think and on a rating form giving the employees a mark out of 10 for each question.
The report needs to include an examination of the employees' strengths and weaknesses, praise for their strengths and helpful criticisms for their weaknesses. Also advice for the future.
The second task is a discussion with the appraisee at an interview about their report.
This can be done as an,
* Open appraisal - the appraisee can discuss their report with their appraiser.
* Two-way appraisal - this is when the appraisee has the opportunity to appraise themselves. They fill in the same rating form and they are both compared. They then can discuss the differences.
* 360degree appraisal - this is where the employee is appraised by everyone they come into contact with the staff working for them, their managers and fellow managers and the customers.
Performance appraisals are carried out every six months.
An appraisal interview gives the chance for employees to be rewarded and told that they are doing a good job. It is a good way of motivating employees because at their appraisal interview they could get a pay rise or promotion.
Performance appraisals are based on motivating employees.
There are various motivational theories some of which have influenced how The Claim Group motivate their employees.
Motivational theories
Douglas McGregor and theory X and Y
McGregor said that managers made decisions about whether their entire workforce was in theory X or theory Y.
The employees were either
Theory X
All employees are lazy and unambitious and resist change. They have no interest in the organisation and would rather be told exactly what to do.
Or
Theory Y
The employees are interested in the organisation and want to be included in decisions and asked for their opinions. They will naturally work hard and want more responsibility.
When managing a theory X workforce there will be a need for constant supervision and a lot of specific rules and regulations
When managing a theory Y workforce, employees can be left to do their work and the manager can be positive towards them, as they know the job will be done properly.
The problem with this theory is that in this day and age most organisations have a mixture of both X and Y categories. Some employees will be motivated and some won't. So organisations cannot really manage their workforce on one theory.
The Claim Group uses both ways to manage their employees. It uses strict rules and regulations for their theory X employees but also welcomes and opinions from their theory Y employees.
Fredrick Taylor and scientific management
Taylor worked as a factory superintendent where the employees didn't work hard because they were afraid they would throw their friends out of work, employers paid as little as they could get away with and employees got few instructions on how do a good job they did them badly.
From his experience he thought that these ideas would make things better:
* Money. Only money would motivate them to work harder. He said they should be paid according to the items they made. Each item made would earn them more money.
* Properly trained managers should run organisations supervise employees properly.
* Employees must be trained thoroughly to specific tasks through what he called scientific management.
* Employees should be selected through tests and interviews to make sure they are right for the job.
* Employees would work without question if motivated by good pay.
Fredrick Taylor's theory is the basics employed by most organisations. The Claim Group along with most other organisations now go through interviews and training processes when recruiting and realise the factors that are outlined by Taylor's theory.
But more complex theories are now used.
Fredrick Herzberg and the two-factor theory
In 1957 Herzberg came up with his motivation hygiene theory. His theory states that two groups of factors affect employee motivation.
He said that there are certain factors that motivate employees to work harder, these are; achievement, recognition, responsibility, advancement, personal growth and the actual work itself. He called these satisfiers
He also stated the other factors that do not motivate employees to work harder and called them hygiene factors, these are; pay and conditions, status in the organisation, job security, benefits (pensions, company cars etc.), relationships with employees, the quality of the organisations managers.
Herzberg's key point was that hygiene factors do not motivate but if they are not sustainable then the satisfiers will not satisfy.
Abraham Maslow and 'the hierarchy of needs'
Abraham Maslow's motivational theory is one that has been adopted by The Claim Group.
His theory states that motivation comes from meeting employees unsatisfied needs.
Below Maslows hierarchy of needs shows how he ranks each need, which must be achieved from the bottom to the top.
Self actualisation
Self esteem
Social needs
Safety and security
Physiological needs
Once a lower order need is satisfied employees will become motivated by the prospect of gaining the next higher level.
From a manager's point of view Maslows theory is:
* Employees need to be paid an adequate amount so they can be provided with their physiological and safety needs.
* Employees need social contact and friendships with their colleagues.
* Employees gain esteem when prospects of promotion are offered
* Self-actualisation. Giving employees the chance to become whatever they wanted e.g. boss of the company they work for.
The Claims Group has employed this motivational theory as a means of motivating their staff. They have a way of for filling each of Maslows needs.
Physiological and safety needs
Employees when introduced into the company are given a basic salary on which they can comfortably survive.
Social Needs
The Claim Group is based on teamwork and they work together in teams to meet targets. Through team working friendships with colleagues is encouraged for filling their social needs.
Self esteem
The Claim Group offers good prospects of promotion in their hierarchical structure. They raise self-esteem and motivate employees by offering better cars, mobile phones and pay at higher levels.
Self-Actualisation
This is achieved through good promotion prospects and better salaries at higher levels.
The interrelationship between performance review and training and development.
Training and development and performance management come as a pair.
The main aim of training and development is to increase employee performance and the need for training and development is identified through performance review.
Employee development is designed to release the potential within employees and this potential is recognised through performance review systems e.g. performance appraisals
Without one of the two systems each function would not be as affective. They are both designed to increase the effectiveness of each other.
Below is a diagram showing an example of how training and development programmes and performance review are linked.
Induction training ==> Performance review (need for extra training identified)
?
?
Training (on the job or off the job courses)
?
?
Performance review (promotion potential discovered
?
?
Development training (e.g. mentoring or job enlargement)
?
?
Performance review (training report and possible promotion.
Within the training and development and its performance management programmes various motivational theories as outlined previously are evident.
Influences on the training and development function
The theories of Taylor and Herzberg influences the way The Claim Group Ltd the training and development function:
Fredrick Taylor's motivational theory states that:
* Managers should be properly trained to run organisations
* Employees must be trained in skills to do specific jobs through 'scientific management'
Tailors theory shows the need for proper training of managers so the business is run smoothly and the training of employees will improve their performance
Herzberg states that:
' Achievement, recognition, responsibility, advancement and personal growth...and the work itself' are the factors that influences employees to work harder.
Herzberg's theory influences the development programme. The Claims Group development programme gives employees a sense of 'advancement and personal growth'. The job enlargement and job enrichment programmes give employees a sense of 'responsibility'.
Influences on the Performance management systems
Taylor and Maslow's theories have significant influence on The Claim Groups performance management.
Fredrick Taylor states that:
* The only way to motivate employees to work harder is money and they should be paid on a piecework system.
* Employees will work without question if motivated by good pay.
Part of The Claim Groups performance management system is affected by the above theories. For example:
Employees are paid an adequate salary and to motivate them they are given targets to reach and by meeting them targets they will gain a reward or extra pay.
Abraham Maslow theory states that;
What motivates employees to work harder once satisfied by a lower need is the need for the next highest level.
From a performance management point of view his theory claims that:
* Employees need to be paid adequately so they can provide themselves with their physiological and safety needs.
E.g. employees of the claim group make between 11 thousand a 21 thousand per annum providing enough money for employees to live on.
* Employees need social contact through friendships with colleagues.
E.g. teamwork training and development programmes assist in employee relationships.
* Esteem is provided through prospects of promotion and offering higher managers a better overall deal.
E.g. Development programmes give employees prospects of promotion. Performance appraisals give employees the chance to show they have potential for promotion.
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