acca paper f1 accountant in business phần 9 pdf

350 14: Personal effectiveness and communication ~ Part F Recruiting and developing effective employees Quick Quiz 1 List six elements of effective time management. 2 Which of the following necessarily makes a piece of work high priority? A Importance B Urgency C Importance and urgency D Other people want you to do the work by a given deadline 3 A list of activities in the order in which they must be completed is the product of task loading. True or false? 4 When scheduling routine accounting tasks, you are more likely to use forward scheduling rather than reverse scheduling. True or false? 5 Communication between two members of a project team from different functions, but the same level of authority, is: A Upward C Lateral B Downward D Diagonal 6 What are the stages of the counselling process? 7 Is the statement below true or false? 'Informal communication does not fill a gap created by an ineffective formal communication system, but co-exists with it.' 8 Is the statement below true or false? 'Coaching encompasses a much wider range of functions than mentoring.' Answers to Quick Quiz 1 Goals; action plans; priorities; focus; urgency; organisation 2 C. An important point: work may be urgent-but-not-important or important-but-not-urgent. You may have paused over D – but this is an assertiveness issue: if someone else 'wants' you to do something, you still have a right to consult your own priorities and commitments, assess their right to ask and so on. 3 False: it is a product of task sequencing. Task loading is allocating tasks to people or machines. 4 True. Reverse scheduling is more suitable for scheduling tasks for which you already have a completion date or deadline. 5 C 6 Reviewing the current scenario; developing a preferred scenario; determining how to get there 7 True. 8 False. Mentoring encompasses a wider range of functions than coaching. Now try the questions below from the Exam Question Bank Number Level Marks Time Q37 Examination 2 2 mins Q38 Examination 1 1 min 351 Recruitment and selection Introduction Recruitment and selection (Section 1) are two core activities in the field of Human Resource Management (HRM). Together, they are broadly aimed at ensuring that the organisation has the human resources (labour and skills) it needs, when it needs them, in order to fulfil its objectives. In this chapter, we look at the process of recruitment (Sections 2 and 3), which is about obtaining candidates and advertising the vacancy in the labour market (Section 4). We then go on to cover the process of selection, which is about deciding which of the applicants is the right candidate. Once candidates have been attracted to apply, there needs to be a systematic process to separate out those who are most suitable for the job (Section 5). In Sections 6 to 9, we examine a range of selection tools. Interviews are the most popular – but not necessarily the most effective in their ability to predict future job performance! Organisations are increasingly using ‘back-up’ methods such as tests and group assessments. In Section 10, we complete the planning and control cycle by suggesting how a manager might evaluate the effectiveness of the recruitment and selection process – and what might be done to improve it where necessary. Bear in mind what these procedures are designed to do: identify the best person for the job and ensure fair treatment for all potential applicants. Topic list Syllabus reference 1 Recruitment and selection F1 (a) 2 Responsibility for recruitment and selection F1 (c) 3 The recruitment process F1 (b) 4 Advertising vacancies F1 (d) 5 A systematic approach to selection F1 (a) 6 Selection methods in outline F1 (d) 7 Interviews F1 (e) 8 Selection testing F1 (e) 9 Other selection methods F1 (e) 10 Evaluating recruitment and selection practices F1 (e) 352 15: Recruitment and selection ~ Part F Recruiting and developing effective employees Study guide Intellectual level F1 Recruitment and selection, managing diversity and equal opportunity (a) Explain the importance of effective recruitment and selection to the organisation. 1 (b) Describe the recruitment and selection processes and explain the stages in these processes. 1 (c) Describe the roles of those involved in the recruitment and selection processes. 1 (d) Describe the methods through which organisations seek to meet their recruitment needs. 1 (e) Explain the advantages and disadvantages of different recruitment and selection methods. 1 Exam guide A question requirement on recruitment may be combined with a requirement relating to selection. Some aspects of recruitment and/or selection will inevitably come up in the exam. Bear in mind that there are a number of procedures and techniques involved in selection. The pilot paper contains questions on the advertising of vacancies, selection tests, training and the learning process. This part of the syllabus is a rich source of questions. 1 Recruitment and selection The process of recruitment should be part of the organisation's human resource plan. People are a major organisational resource and must be managed as such. 1.1 Overview of recruitment and selection Effective recruitment practices ensure that a firm has enough people with the right skills. The overall aim of the recruitment and selection process in an organisation is to obtain the quantity and quality of employees required to fulfil the objectives of the organisation. This process can be broken down into three main stages. (a) Defining requirements, including the preparation of job descriptions, job specifications and person specifications (or personnel specifications). (b) Attracting applicants, including the evaluation and use of various methods for reaching appropriate sources of labour (both within and outside the organisation). (c) Selecting the appropriate candidates for the job, or the appropriate job for the candidate. Recruitment is the part of the process concerned with finding applicants: it is a positive action by management, going into the labour market (internal and external), communicating opportunities and information, generating interest. Selection is the part of the employee resourcing process which involves choosing between applicants for jobs: it is largely a 'negative' process, eliminating unsuitable applicants. In times of low unemployment, employers have to compete to attract desirable categories of labour. In times of high unemployment, and therefore plentiful supply, 'the problem is not so much of attracting candidates, but in deciding how best to select them' (Cole, Personnel Management Theory and Practice). In times of low demand for labour, however, socially responsible employers may have the additional policy FA S T F O RWAR D Key terms Part F Recruiting and developing effective employees ~ 15: Recruitment and selection 353 of using existing staff (internal recruitment) rather than recruiting from outside, in order to downsize staff levels through natural wastage and redeployment. 1.2 The importance of recruitment and selection The founding belief of the human resources management (HRM) approach is that employees represent a scarce and crucial resource which must be obtained, retained, developed and mobilised for organisational success. (a) Recruitment (and training) issues are central to the business strategy. (b) Organisations need to deploy skills in order to succeed. Although the labour market might seem a 'buyer's market', in practice there are: (i) Skill shortages in key sectors (eg computing services) and local areas (ii) Mismatches between available skill supply and the demands of particular markets and organisations Even in conditions of high overall employment, particular skill shortages still exist and may indeed be more acute because of recessionary pressures on education and training. Engineers and software designers, among other specialist and highly trained groups, are the target of fierce competition among employers, forcing a revaluation of recruitment and retention policies. 2 Responsibility for recruitment and selection The recruitment process involves personnel specialists and line managers, sometimes with the help of recruitment consultants. The people involved in recruitment and selection vary from organisation to organisation. 2.1 Senior managers Senior managers/directors may be involved in recruiting people – from within or outside the organisation – for senior positions, or in authorising key appointments. For most other positions, they will not be directly involved. However, they are responsible for human resources (HR) planning: identifying the overall skill needs of the organisation, and the types of people it wishes to employ (perhaps as part of the corporate mission statement). 2.2 The human resources department Some firms employ specialists to manage their recruitment and other (HR) activities, often under the authority of the human resources manager. The role of the human resources (HR) function in recruitment and selection may include: x Assessing needs for human resources (HR planning) x Maintaining records of people employed x Keeping in touch with trends in the labour market x Advertising for new employees x Ensuring the organisation complies with equal opportunities and other legislation x Designing application forms x Liaising with recruitment consultants x Preliminary interviews and selection testing 2.3 Line managers In many cases the recruit's prospective boss will be involved in the recruitment. (a) In a small business (s)he might have sole responsibility for recruitment. (b) In larger organisations, line managers may be responsible for: FA S T F O RWAR D 354 15: Recruitment and selection ~ Part F Recruiting and developing effective employees x Asking for more human resources: notifying vacancies or issuing a job requisition x Advising on skill requirements and attributes required x Selection interviewing (perhaps collaborating with HR specialists) x Having a final say in the selection decision The current trend is towards devolving recruitment and selection (among other Human Resource Management activities) increasingly to line management. 2.4 Recruitment consultants Specialist recruitment consultants or agencies may be contracted to perform some recruitment tasks on the organisation's behalf, including: (a) Analysing, or being informed of, the requirements (b) Helping to draw up, or offering advice on, job descriptions, person specifications and other recruitment and selection aids (c) Designing job advertisements (or using other, informal methods and contacts, eg by 'head hunting') (d) Screening applications, so that those most obviously unsuitable are weeded out immediately (e) Helping with short-listing for interview (f) Advising on, or conducting, first-round interviews (g) Offering a list of suitable candidates with notes and recommendations 2.4.1 Factors in the outsourcing decision The decision of whether or not to use consultants will depend on a number of factors. (a) Cost. (b) The level of expertise, specialist knowledge and contacts which the consultant can bring to the process. (c) The level of recruitment expertise available within the organisation. (d) Whether there is a need for impartiality which can only be filled by an outsider trained in objective assessment. If fresh blood is desired in the organisation, it may be a mistake to have insiders selecting clones of the common organisational type. (e) Whether the use of an outside agent will be supported or resented/rejected by in-house staff. (f) Whether the organisation culture supports in-house staff in making HR decisions. (Consultants are not tied by status or rank and can discuss problems freely at all levels.) (g) Time. Consultants will need to learn about the vacancy, the organisation and its requirements. (h) Supply of labour. If there is a large and reasonably accessible pool of labour from which to fill a post, consultants will be less valuable. If the vacancy is a standard one, and there are ready channels for reaching labour (such as professional journals), the use of specialists may not be cost-effective. 3 The recruitment process Recruitment is a systematic process of (a) identifying and defining skill needs and (b) attracting suitably skilled candidates. 3.1 A systematic approach The recruitment process is part of a wider whole. (a) Detailed human resource planning (as seen in Chapter 1) defines what resources the organisation needs to meet its objectives, and what sources of labour (internal and external) are available. The organisation's skill requirements may be met through recruitment – but there may also be plans for FA S T F O RWAR D Part F Recruiting and developing effective employees ~ 15: Recruitment and selection 355 reducing staff numbers, redeployment, training and development, promotion, retention (to reduce loss of skills through staff turnover) and so on. (b) Job analysis produces two outputs. (i) A job description: a statement of the component tasks, duties, objectives and standards involved in a job. (ii) A person specification: a reworking of the job description in terms of the kind of person needed to perform the job. (c) Recruitment as such begins with the identification of vacancies, from the requirements of the human resource plan or by a job requisition from a department that has a vacancy. (d) Preparation and publication of recruitment advertising will have three aims. (i) Attract the attention and interest of potentially suitable candidates. (ii) Give a favourable (but accurate) impression of the job and the organisation. (iii) Equip those interested to make an appropriate application (how and to whom to apply, desired skills, qualifications and so on). (e) Recruitment merges into selection when processing applications and assessing candidates. (f) Notifying applicants of the results of the selection process is the final stage of the combined recruitment and selection process. 3.2 Job analysis, competences and job design 3.2.1 Job analysis Job analysis determines the requirement for a job. The job's tasks are set out in a job description. A job specification describes the skills or competences required for the job. A person specification describes the sort of person suitable for the job. The management of the organisation needs to analyse the sort of work needed to be done in order to recruit effectively. The type of information needed is outlined below. Type of information Comments Purpose of the job This might seem obvious. As an accountant, you will be expected to analyse, prepare or provide financial information; but this has to be set in the context of the organisation as a whole. Content of the job The tasks you are expected to do. If the purpose of the job is to ensure, for example, that people get paid on time, the tasks involve include many activities related to payroll. Accountabilities These are the results for which you are responsible. In practice they might be phrased in the same way as a description of a task. Performance criteria These are the criteria which measure how good you are at the job. These are largely task related. Responsibility This denotes the importance of the job. For example, a person running a department and taking decisions involving large amounts of money is more responsible that someone who only does what he or she is told. Organisational factors Who does the jobholder report to directly (line manager)? Developmental factors Likely promotion paths, if any, and career prospects. Some jobs are 'dead-end' if they lead nowhere. Environmental factors Working conditions, security and safety issues and equipment. FA S T F O RWAR D 356 15: Recruitment and selection ~ Part F Recruiting and developing effective employees Case Study Chase Manhattan Bank has clear procedures. The competence definition and the scale are used to assess to what extent the individual has developed the competence, through seven points ranging from 'minimal knowledge' to 'recognisable ability' (representing a firm professional standard) and up to 'advisory level' (related to the best in the external market). This range is positioned as an external, absolute scale, not an internal relative measure. As such, it is used for individuals (always starting with self-analysis) to agree with their manager their individual competence profile, or for managers to specify the competence demands of given roles or specific job vacancies, or for the business to profile the differing requirements of customers. It reaches the strategic needs of the organisation at its most macro level, but equally - and vitally, as a prerequisite for a successful corporate agenda - it supports a stream of products which get to the individual's agenda of professional development, career opportunity ad performance-related reward. 3.2.2 Competences A current approach to job design is the development and outlining of competences. A person 's competence is 'a capacity that leads to behaviour that meets the job demands within the parameters of the organisational environment and that, in turn, brings about desired results'. (Boyzatis) Some take this further and suggest that a competence embodies the ability to transfer skills and knowledge to new situations within the occupational area. Different sorts of competences (a) Behavioural/personal competences are underlying personal characteristics and behaviour required for successful performance, for example, 'ability to relate well to others'. Most jobs require people to be good communicators. (b) Work-based/occupational competences are 'expectations of workplace performance and the outputs and standards people in specific roles are expected to obtain '. This approach is used in NVQ systems. They cover what people have to do to achieve the results of the job. For example, a competence for a Chartered Certified Accountant might be to 'produce financial and other statements and report to management '. (c) Generic competences can apply to all people in an occupation. Some competences for managers are shown in the following table. Competence area Competence Intellectual x Strategic perspective x Analytical judgement x Planning and organising Interpersonal x Managing staff x Interpersonal sensitivity x Persuasiveness x Oral communication x Assertiveness and decisiveness Adaptability x Flexibility x Coping with change Results x Initiative x Motivation to achievement x Business sense These competences can be elaborated by identifying positive and negative indicators. Key term Part F Recruiting and developing effective employees ~ 15: Recruitment and selection 357 3.2.3 Job design Parameters of job design (Mintzberg). (a) Job specialisation (i) How many different tasks are contained in the jobs and how broad and narrow are these tasks? The task may be determined by operations management. Until recently, there has been a trend towards narrow specialisation, reinforced, perhaps by demarcations laid down by trade unions. On the production line, a worker did the same task all the time. Modern techniques, however, require workers to be multi-skilled. (ii) To what extent does the worker have control over the work? At one extreme ( 'scientific management ') the worker has little control over the work. At the other extreme (eg an electrician) the worker controls the task. (b) Regulation of behaviour. Co-ordination requires that organisations formalise behaviour so as to predict and control it. (c) Training in skills and indoctrination in organisational values. Belbin (1997) described a way of tailoring job design to delayered, team based structures and flexible working systems. (a) Flattened delayered hierarchies lead to greater flexibility but also to uncertainty and sometimes to a loss of control. (b) Old hierarchies tended to be clearer in establishing responsibilities. 3.2.4 Job description A job description sets out the purpose of the job, where it fits in the organisation structure, the context of the job, the accountabilities of the job and the main tasks the holder carries out. Purposes of job descriptions Purpose Comment Organisational Defines the job 's place in the organisational structure Recruitment Provides information for identifying the sort of person needed (person specification) Legal Provides the basis for a contract of employment Performance Performance objectives can be set around the job description Contents of a job description (a) Job title (eg Assistant Financial Controller). This indicates the function/department in which the job is performed, and the level of job within that function. (b) Reporting to (eg the Assistant Financial controller reports to the Financial Controller), in other words the person 's immediate boss. (No other relationships are suggested here.) (c) Subordinates directly reporting to the job holder. (d) Overall purpose of the job, distinguishing it from other jobs. (e) Principal accountabilities or main tasks (i) Group the main activities into a number of broad areas. (ii) Define each activity as a statement of accountability: what the job holder is expected to achieve (eg tests new system to ensure they meet agreed systems specifications). (f) The current fashion for multi-skilling means that flexibility is expected. Key term 358 15: Recruitment and selection ~ Part F Recruiting and developing effective employees 3.2.5 Role definitions Whereas a job is a group of tasks, a role is more than this. A role is a part played by people in meeting their objectives by working competently and flexibly within the context of the organisation 's objectives, structures and processes. A role definition is wider than a job description. It is less concerned with the details of the job content, but how people interpret the job. Case Study Guinness Guinness Brewing Great Britain introduced a new pay system based on competences. Restrictive job definitions, lengthy job descriptions and a 24-grade structure were replaced by broad role profiles and three pay bands. Roles are now specified in terms of 'need to do' (primary accountabilities), 'need to know' (experience and knowledge requirements) and 'need to be' (levels of competence). Competences are defined as 'the skill, knowledge and behaviours that need to be applied for effective performance'. There are seven of them, including commitment to results and interpersonal effectiveness. Roles are profiled against each relevant competence and individuals' actual competences are compared with the requirements through the performance management process. 3.2.6 Person specification Possible areas the specification may cover include: x Personal skills x Motivation x Qualifications x Personality x Innate ability 3.2.7 Seven-point plan Alec Rodgers devised a framework for the selection process that includes seven points. Point Examples Physical make-up Strength, appearance, health Attainments Qualifications, career achievements General intelligence Average, above average Special aptitudes Manual dexterity, metal sharpness Interests Mechanical, people-related Disposition Calm, independent Circumstances Location, car owner The diagram on the next page shows recruitment activities in more detail. Part F Recruiting and developing effective employees ~ 15: Recruitment and selection 359 The Recruitment Process 3.3 Recruitment policy Detailed procedures for recruitment should only be devised and implemented within the context of a fair, consistent and coherent policy, or code of conduct. A typical recruitment policy might deal with: x Internal advertisement of vacancies, where possible x Efficient and courteous processing of applications x Fair and accurate provision of information to potential recruits x Selection of candidates on the basis of suitability, without discrimination FA S T F O RWAR D [...]... and qualifications in an international work force Managing co-operative working in ethnically diverse teams 4.2 Diversity policy Ingham (2003) suggests the following key steps in implementing a diversity policy taking into account all the equal opportunity requirements Step 1 Analyse your business environment (a) (b) Step 2 Define diversity and its business benefits (a) (b) (c) Step 3 Internally – does... interviewee who must answer them (a) (b) (c) (d) (e) 'So, you're interested in a Business Studies degree, are you, Jo? 'Surely you're interested in Business Studies, Jo?' 'How about a really useful qualification like a Business Studies degree, Jo? Would you consider that?' 'Why are you interested in a Business Studies degree, Jo? 'Why particularly Business Studies, Jo?' Answer (a) (b) (c) (d) (e) Closed (The... effective employees Training and development Topic list Syllabus reference 1 The learning process F4 (a)–(c) 2 Development and training F4 (d)–(f) 3 Training needs and objectives 4 Training methods 5 Responsibility for training and development F4 (d) F4 (d) F4 (c) (d) 6 Evaluating training programmes F4 (d) 7 Development F4 (e) Introduction The development of people to meet current – and changing – job demands... meet current – and changing – job demands is a key leadership task In Section 1, we describe how people learn, and in Sections 2-6, we look at key aspects of a systematic approach to training: identifying training needs, selecting training methods and designing training that suits how people learn Evaluating the effectiveness of training is also very important There are detailed procedures and models... (f) (g) Tolerance of individual differences Communicating effectively with (and motivating) ethnically diverse work forces Managing workers with increasingly diverse family structures and responsibilities Managing the adjustments to be made by an increasingly aged work force Managing increasingly diverse career aspirations/patterns, flexible working etc Dealing with differences in literacy, numeracy... discrimination – as well as genuine (though often unintended) inequality There is always a risk that disappointed job applicants, for example, will attribute their lack of success to discrimination, especially if the recruiting organisation's workforce is conspicuously lacking in representatives of the same ethnic minority, sex or group The following guidelines should be borne in mind Part F Recruiting... population begins to narrow itself down The information contained in the advertisement should deter unsuitable applicants as well as encourage potentially suitable ones 4.3 Advertising media FAST FORWARD A number of print, electronic and interpersonal media are used for job advertising Media for recruitment advertising include the following (a) In- house magazine, noticeboards, e-mail or intranet An organisation... well have some influence on how the interviewers assess a candidate's interest in and understanding of the job Moreover, there is information that the candidate will need to know about the organisation, the job, and indeed the interview process 7.4 Types of interview 7.4.1 Individual interviews Individual, one-to-one or face-to-face interviews are the most common selection method Advantages include: (a)... encourage people from disadvantaged groups to apply for jobs and training, and to compete for vacancies (Note that this is not positive discrimination.) Examples might be: using ethnic languages in job advertisements, or implementing training for women in management skills In addition, there may be awareness training, counselling and disciplinary measures to manage sexual, racial and religious harassment... outline the candidate's claim to suitability) 7.3 Conduct of the interview Questions should be paced and put carefully The interviewer should not be trying to confuse the candidate, plunging immediately into demanding questions or picking on isolated points; neither, however, should the interviewee be allowed to digress or gloss over important points The interviewer must retain control over the information-gathering . 6 Selection methods in outline F1 (d) 7 Interviews F1 (e) 8 Selection testing F1 (e) 9 Other selection methods F1 (e) 10 Evaluating recruitment and selection practices F1 (e) 352 15: Recruitment. (HR) function in recruitment and selection may include: x Assessing needs for human resources (HR planning) x Maintaining records of people employed x Keeping in touch with trends in the labour. behaviour. Co-ordination requires that organisations formalise behaviour so as to predict and control it. (c) Training in skills and indoctrination in organisational values. Belbin ( 199 7) described