Booklet 9 : Investing in People

Question 1

Define People Investment Planning (PIP) and state three advantages and three disadvantages of this method (8)

Answer 1

PIP views all staff as a key quality in a business, managers must ensure all staff roles are aligned with the business plans across the functional areas (2)

Advantages
1. It enables the business to employ the right number of staff with the appropriate skill set
2. Allows the business to know what areas need improvement and training
3. Enables the business to operate with minimal disruption and to meet customers needs

Disadvantages
1. Costs may increase due to the competitiveness of the business
2. Many businesses tend to react to external changes as opposed to planning effectively to gain competitive advantage
3. Changes in the external environment can make it difficult to accurately predict requirements, changes in the economic climate can result in periods of recession

Question 2

Define succession planning (2)

Answer 2

This process aims to facilitate the identification and training of selected staff to undertake key roles in the future, it is achieved through the training and development of a member of workforce enabling them to easily assume their role when appointed (2)

Question 3

Define skill audits (2)

Answer 3

Skills audit is to review all skills, experiences, qualifications and related factors that the workforce possesses compared to anticipated needs by identifying strengths and weaknesses (2)

Question 4

Define staff training requirements (2)

Answer 4

Staff training requirements is used as a summary of the training needs of the current workforce to enable them to meet business objectives (2)

Question 5

Define future needs of the organisation (2)

Answer 5

Taking into account the future needs is to anticipate gaps in workforce skills sets compared to the current skills audit, which can also identify staff training requirements (2)

Question 6

Define induction training, and state three advantages and three disadvantages of this method of training (8)

Answer 6

Induction training is training given to new employees to familiarise them with the working environment and what they will be doing on the job (2)

Advantages
1. Can help an employee settle into a firm with minimal disruption
2. It is inexpensive
3. Improves an employees understanding to an organisation quickly

Disadvantages
1. May discourage new workers
2. May bombard the employee with too much information
3. It may require absence from the workplace which slows down productivity

Question 7

Define on-the-job training, and state three advantages and three disadvantages of this method of training (8)

Answer 7

On-the-job training refers to when trainers teach employees to work efficiently as they carry out tasks (they learn by doing) (2)

Advantages
1. Trainees learn by doing, which allows them to gain familiarity with their daily tasks with minimal distribution
2. Output is being produced
3. Cheaper than other forms as it doesn’t require outside businesses delivering

Disadvantages
1. Output may be lost if trainee makes mistakes
2. Workplace could be too noisy or stressful to conduct effective training
3. May be stressful for the worker, particularly if working with other more experienced employees

Question 8

Define off-the-job training, and state three advantages and three disadvantages of this method of training (8)

Answer 8

Off-the-job training occurs when employees are trained away from the normal workplace e.g training centres of further education colleges. (2)

Advantages
1. Output is not affected if mistakes are made
2. Workers learning is not distracted as the training is outside the regular workplace
3. Experts conduct the training

Disadvantages
1. No output cause employees are away from the workplace
2. Some off-the-job training is expensive if provided by specialists
3. Some aspects of work cannot be taught off-the-job and learning doesn’t take place in the workplace so it may be difficult to apply to their job

Question 9

Define Continuing Professional Development (CPD), and state three advantages and three disadvantages of this method of training (8)

Answer 9

CPD is the process of tracking and documenting the skills, knowledge and experience that is gained both formally and informally from work beyond training, it is a written portfolio documenting the employees learning (2)

Advantages
1. CPD focused on learning from both positive and negative experiences
2. Encourages reflective learning and self evaluation
3. Defines an employees personal goals and objectives

Disadvantages
1. Time consuming, may require commitment from employees
2. It may be expensive and mandatory for some professionals e.g accountants and lawyers
3. It has little worth when done as a task for management rather than a task to improve the individual

Question 10

Define internal recruitment, and state three advantages and three disadvantages of this method of training (8)

Answer 10

Internal recruitment is the recruitment process of applicants inside the business (2)

Advantages
1. Applicants familiar with the business culture, systems and processes
2. Opportunity for promotion, which improves staff morale and motivation
3. Cheaper than external recruitment because advertising is internal

Disadvantages
1. Limited number of applicants
2. Promotion of one internal candidate requires their replacement
3. Possible staff jealousy if they do not get the job, demotivating staff

Question 11

Define external recruitment, and state three advantages and three disadvantages of this method of training (8)

Answer 11

External recruitment refers to recruitment outside the organisation (2)

Advantages
1. Wider variety of candidates with more qualifications
2. Might not have an existing employee interested in a job
3. An external candidate may bring new ideas to the role

Disadvantages
1. More expensive to advertise
2. An external candidate is less familiar with the business so they require induction and training
3. The process to shortlist CVs and interview candidates is time consuming

Question 12

Define the application process (2)

Answer 12

The application process include methods such as: Application Form, Letter of Applications, CV and Shortlisting to find out the suitable candidate (2)

Question 13

Define psychometric testing (2)

Answer 13

Psychometric testing can be used to assess a candidates specific personality traits and attitudes, providing an indication of a candidate’s ability to perform their role.

Question 14

Define appraisal and state three advantages and three disadvantages of this method (8)

Answer 14

Appraisal is the process of assessing an employee’s performance in their job, providing feedback and an agreement of key objectives for the future, feedback can include discussions on adjusting the employee’s performance (2)

Advantages
1. Assists in measuring the employees performance to achieve their targets
2. Makes sure that they receive training if necessary, helps the firm to plan an effective training program
3. Helps increase staff competence and overall productivity

Disadvantages
1. The appraiser may be biased towards specific employees and therefore may treat them more or less favourable
2. The employee may not see the benefit in the system if they lack motivation
3. It is difficult for the person to be appraised, a worker may want to discuss problems but is likely to be cautious about what they say in case they jeopardise any possible pay rise

Question 16

State three advantages and three disadvantages of using online technology for recruitment and selection (6)

Answer 16

Advantages
1. Allows a business to attract a large pool of candidates at a cheap cost, as opposed to printing advertisements
2. Less time-consuming, which improves efficiency of the process
3. Gives the candidate access to apply 24/7

Disadvantage
1. Expensive if the technology required for online recruitment has to be invested in
2. If a large number of applicants apply, it will be more time-consuming to shortlist because there is likely a range of unsuitable candidates
3. Some applicants may find it difficult to complete an online application

Question 17

State three advantages and three disadvantages of using online technology in relation to appraisal (6)

Answer 17

Advantages
1. Businesses can use a rating system for employees, which allows the business to put the forms into a database and rank employees
2. Managers are more willing to be more straightforward and honest than delivering appraisal face-to-face
3. They can be accessed 24/7 which allows the employer to do it at a time that suits them

Disadvantages
1. Expensive to set up technology online instead of using a paper form
2. Without personal interaction, a critical rating system can seem much worse than the manager intended, a certain problem may not across that way to an employee
3. Impersonal, the employee receives the results on their computer with no face-to-face explanation

Question 18

State three advantages and two disadvantages of using online technology in relation to training (5)

Answer 18

Advantages
1. Cheaper as it reduces expenses such as travel if the employee was completing training courses
2. The employee can work at their own pace
3. It allows for the use of video at the desktop to illustrate key points visually which can aid in information retention

Disadvantages
1. Lack of human interaction, some trainees may prefer a hands-on approach when being taught
2. Eliminates the benefit of gaining insight from other employees through group discussions at training courses