1.

Significance of Harvard Model of HRM and Guest’s model HRM for

development of HRM theory:
a. The HRM Models
 There are a good number of models that have been postulated by various scholars to
describe the HRM concept.

 However, as shall be seen these various models either fall under the soft or the hard
approach of HRM.

b. The Harvard Model

 The Harvard Model was postulated by Beer et al (1984) at Harvard University.

 The authors of the model also coined it the map of HRM territory.

 The Harvard model acknowledges the existence of multiple stakeholders within the
organization.

 These multiple stakeholders include shareholders various groups of employees,

government and the community at large.

 The recognition of the legitimacy of these multiple stakeholders renders this model a
neo - pluralist model.

 This model emphasizes more on the human/soft side of HRM.

 Basically this is because this model emphasizes more on the fact that employees like
any other shareholder are equally important in influencing organizational outcomes.

 In fact the interest of the various groups must be fused and factored in the creation of
HRM strategies and ultimately the creation of business strategies.

 A critical analysis of the model shows that it is deeply rooted in the human relations
tradition.

 Employee influence is recognised through people motivation and the development of

an organization culture based on mutual trust and team work.

 The factors above must be factored into the HR strategy which is premised on
employee influences, HR flows, reward system etc.

 The outcomes from such a set up are soft in nature as they include high congruence,
commitment, competencies etc.

 The achievement of the crucial HR outcomes has got an impact on long term
consequences, increased productivity, organizational effectiveness which will in turn
influence shareholder interests and situational factors hence making it a cycle.

 It is thus important to note that the Harvard model is premised on the belief that it is
the organization‟s human resources that give competitive advantage through treating
them as assets and not costs.
c. The Guest Model

The Guest model was propounded by David Guest in 1987.

 This model is a fusion of aspects that resemble both a hard and a soft approach of
HRM.

 Guest proposes 4 crucial components that underpin organizational effectiveness.

 These 4 crucial components are: -

1.1.1. Strategic Integration

 This is the ability of organizations to maintain a fit between the HRM strategy and the
business strategy. In other words, there must be congruence between business
strategy and the HR strategy for the organization to achieve its goals.

 Strategic integration shows the harder side of the Guest Model.

 This is precisely because human resources are treated in a similar manner like any
other resource with the prime goal of achieving business objectives.

 Thus there are implications of labour exploitation.

1.1.2. Flexibility

 Flexibility is basically concerned with the ability of the organization and its people to
adapt to the changing business and work environment and to the capacity to
manage innovation.

 Flexibility can be numeric, functional, pay, distancing.

 Flexibility carries both connotations of hard and soft HRM.

 Hard HRM for example can be seen through numeric flexibility where employees are
employed only when their production is required and when their labour is not
required they are discharged.

 This can be exemplified through seasoned work.

 Flexibility can also show the soft side of HRM through the same example given
above.

 Flexibility in this case is not only concerned with the need to achieve business
objectives but also the need to treat its employees as fairly as possible.
1.1.3. High Commitment

 This is concerned with the need to have both behavioural commitment, which is the
ability to go an extra mile, and attitudinal commitment, which is reflected through
a strong identification with the organization.
 2. Quality
Quality is based on the assumption that provision of high quality goods and services results
from a quality way of managing people.

2. HR business partnering is a realistic goal for the HR profession

Human Resources has several strategic goals and objectives in the organization. As a
strategic business partner, it has to contribute to successful delivery of business targets. It has
to identify the potential arising from the enterprise vision and mission, and it has to turn it
into the actionable plan for Human Resources.

Human Resources should not define just tactical objectives like the recruitment goals,
workforce planning objectives or the employee development goals. The tactical objectives
never lead to building the strong and strategic HR Management function in the organization.
The targets of Human Resources needs to be derived from the business strategy and vision so
that they bring the value added. Even the strategic aims need to be measurable. HR KPIs
cannot be measuring the effectiveness of HR Processes; it needs to measure the progress of
the implementation of the strategic HR projects.

The changing role of Human Resources brings new challenges and initiatives, and changes
require an adjustment of general HR goals and objectives. HR topics of the past are about the
administrative expertise; the HR issues of the future are about the strategic contribution of
Human Resources. The modern HR Management has two primary goals and objectives in the
organization:

Productivity and performance; HR Visibility.

The most strategic goals of Human Resources are always broadly covered in the HR Strategy
that is approved by the Leadership Team of the company. HR has to split the key objectives
into smaller yearly goals and put them into the right stream. HR has to make sure that all
smaller goals are aligned and linked together. It has to balance the approach; it cannot choose
just one stream to focus on. The HR Department cannot focus just on the visibility of Human
Resources in the organization. The goal must be supported by activities and projects from the
second stream to make the visibility in the organization a real and sustainable success. Vice
versa, HR cannot focus just on the performance and productivity of the business. The high-
performance organization needs the human face. Otherwise, it cannot attract top talents
because it has no HR story. It does not advertize positive career opportunities.
HR Goals in Productivity and Performance

The most changes in the organization

do not just happen as a business-as-usual. The leadership team always manages and leads
internal changes so that the company is ready to accept external and internal challenges. The
company plans changes and introduces them through strategic projects. Human Resources
has to run strategic projects that improve or kick the performance and productivity of the
organization. The Chief HR Officer needs to convince and engage the leadership team, and
they have to support HR initiatives in divisions or departments through the company.

The first strategic goal of Human Resources is the strategic HR project management and
strategic HR projects and initiatives. HR Leader has to convince the leadership team to
support key HR initiatives during the year. They have to accept risks and manage them
during the year. HR has to prepare the list of initiatives, reach status quo among leaders in
the organization and communicate with all stakeholders properly.

The other strategic HR objective is affecting the performance positively is the full
engagement of employees. Employee engagement is one of key drivers of employees‟
creativity and willingness to contribute to business results. Engagement is not important in
moments when the company grows. However, it is essential when the organization is stuck in
troubles. HR should always design processes that allow employees share ideas freely across
the enterprise.

The proper and regular reporting of HR KPIs is another strategic objective for Human
Resources. HR cannot measure the progress of changes in the organization and the quality of
provided HR services without the regular measurement of HR KPIs. HR has to identify right
KPIs for each strategic initiative of the leadership team. It has to present measures and report
any issue or the negative trend to the team. This is a real value added.

HR Visibility as the HR Goal

The executive presence of Human Resources is another strategic aim for Human Resources.
The successful team is widely visible in the business. The invisible team does not reach the
corporate targets. Nobody cares about the team, and the best employees start to leave the
company. HR Managers have to be visible in departments, and they need to be well
recognized by internal clients. They have to provoke discussions and lead them to actionable
outcomes. They have to follow up their promises. This is an extremely strategic HR
Objective.

Additionally, HR has to develop the external visibility of the organization. It makes the
position of the company on the job market secure. Top talents know the company, its brand,
products, and they have no worries to apply for the vacancy.

3. Contribution of balanced scorecard to the development of SHRM

a. HR Balance Scorecard
The HR Balanced Scorecard includes four perspectives:

Strategic Perspective

• Measures success in achieving the five strategic thrusts. Since the basis for the HR
Balanced Scorecard is achieving business goals, the aligned HR Strategic objectives are
the drivers for the entire model.

Operations Perspective

• Measures HR‟s success in operational excellence. The focus was primarily in three
areas: staffing, technology, and HR processes and transactions.

Customer Perspective

• Includes measures of how HR is viewed by the key customer segments. Survey results
were used to track customer perceptions of service as well as assess overall employee
engagement, competitive capability, and links to productivity.

Financial Perspective

• Addresses how HR adds measurable financial value to the organization, including

measures of ROI in training, technology, staffing, risk management, and cost of service
delivery.

4. VRIO framework strategic HRM

Human resources value.

Human resources development is essential, as it must be in accordance with the changes that
occur in the environment (development of technology, changes in customers‟ preferences,
and fluidity of boundaries between industries). Human resources may be considered valuable
if they enable the elimination of threats from the environment and use opportunities that
arise, on one hand, or use the other resources in an efficient manner, on the other hand.
Specifically, if the human resources make the company efficient, consumer-oriented and
focused on innovation and quality they can be considered valuable.

Human resources rarity.

 Value of human resources is necessary, but not sufficient condition for gaining competitive
advantage. If human resources in the companies that are competitors have the same
characteristics, then these features cannot form the basis for competitive advantage for any
company. Valuable, but common characteristics allow the company only equal position
compared to competitors. If the resource is not rare it cannot ensure the achievement above
the average profits. Therefore the company has to develop and exploit those rare, special
characteristics of employees in order to gain competitive advantage. The issue of resources‟
rarity refers to how many Book of Proceedings – TMS Algarve 2012 vol. 2 579 competing
companies (direct and indirect competitors) have the knowledge and abilities that
characterize the employees of specific company.

Human resources inimitability.

The issue of imitation is a logical extension to the previous element – human resources rarity.
If the acquisition or development of certain human resources involves high costs or if there is
no or negligible possibility for imitation, resources will retain their “rarity”. Valuable and
rare employees‟ features provide opportunity for the company to achieve above average
profitability in the short term. However, if competitors can imitate the characteristics of
employees in order to gain competitive advantage, then this will, over time, be a basis for
competitive equality, but not for competitive advantage. Inimitability is the element of VRIO
framework which is most difficult to examine and analyze, given that with enough time and
money almost every resource can be the object of imitation.

Human resources organization.

In order for any characteristic of a firm‟s human resources to provide a source of sustained
competitive advantage, the firm must be organized to exploit the resource. Organization
requires developing the systems and practices that allow human resources characteristics to
bear the fruit of their potential advantages.
The VRIO framework enables business people in HR to transform the HR function into a
contributor to firm performance rather than a drain on firm resources.

5. On-The-Job Training
https://www.hr.com/en/communities/training_and_development/list-of-training-
methods_eacwezdm.html

Jumping right into work from day one can sometimes be the most effective type of training.
Here are a few examples of on-the-job training:
 Read the manual - a rather boring, but thorough way of gaining knowledge of about a
task.
 A combination of observation, explanation and practice.
 Trainers go through the job description to explain duties and answer questions.
 Use the intranet so trainees can post questions concerning their jobs and experts within
the company can answer them.
On-the-job training gives employees motivation to start the job. Some reports indicate that
people learn more efficiently if they learn hands-on, rather than listening to an instructor.
However, this method might not be for everyone, as it could be very stressful.
Example: New trucking employees could ride with experienced drivers. They could ask
questions about truck weigh stations, proper highway speeds, picking up hitchhikers, or any
other issues that may arise.

1. Coaching/Mentoring

Coaching/mentoring gives employees a chance to receive training one-on-one from an

experienced professional. This usually takes place after another more formal process has taken
place to expand on what trainees have already learned.
Here are three examples of coaching/mentoring:
 Hire professional coaches for managers (see our HR.com article on Understanding
Executive Coaching)
 Set up a formal mentoring program between senior and junior managers
 Implement less formal coaching/mentoring to encourage the more experienced
employees to coach the less experienced.
Coaching/mentoring gives trainees the chance to ask questions and receive thorough and honest
answers - something they might not receive in a classroom with a group of people.
Example: Again, truck drivers could gain valuable knowledge from more experienced drivers
using this method.

2. Lectures

Lectures usually take place in a classroom-format.

It seems the only advantage to a lecture is the ability to get a huge amount of information to a lot
of people in a short amount of time. It has been said to be the least effective of all training
methods. In many cases, lectures contain no form of interaction from the trainer to the trainee
and can be quite boring. Studies show that people only retain 20 percent of what they are taught
in a lecture.
Example: Truck drivers could receive lectures on issues such as company policies and safety.

6. Group Discussions & Tutorials

These most likely take place in a classroom where a group of people discuss issues.
For example, if an unfamiliar program is to be implemented, a group discussion on the new
program would allow employees to ask questions and provide ideas on how the program would
work best.
A better form of training than lectures, it allows all trainees to discuss issues concerning the new
program. It also enables every attendee to voice different ideas and bounce them off one another.
Example: Truck drivers could have group discussions and tutorials on safety issues they face on
the road. This is a good way to gain feedback and suggestions from other drivers.

3. Role Playing

Role playing allows employees to act out issues that could occur in the workplace. Key skills
often touched upon are negotiating and teamwork.
A role play could take place between two people simulating an issue that could arise in the
workplace. This could occur with a group of people split into pairs, or whereby two people role
play in front of the classroom.
Role playing can be effective in connecting theory and practice, but may not be popular with
people who don´t feel comfortable performing in front of a group of people.
Example: Truck drivers could role play an issue such as a large line-up of trucks is found at the
weighing station and one driver tells another that he might as well go ahead and skip the whole
thing. Or role play a driver who gets pulled over by a police officer and doesn´t agree with the
speeding charge.

4. Management Games

Management games simulate real-life issues faced in the workplace. They attract all types of
trainees including active, practical and reflective employees.
Some examples of management games could include:
 Computer simulations of business situations that managers ´play´.
 Board games that simulate a business situation.
 Games surrounding thought and creativity - to help managers find creative ways to solve
problems in the workplace, or to implement innovative ideas.
Example: In a trucking business, managers could create games that teach truckers the impact of
late deliveries, poor customer service or unsafe driving.

5. Outdoor Training

A nice break from regular classroom or computer-based training, the usual purpose of outdoor
training is to develop teamwork skills.
Some examples include:
 Wilderness or adventure training - participants live outdoors and engage in activities like
whitewater rafting, sailing, and mountain climbing.
 Low-impact programming - equipment can include simple props or a permanently
installed "low ropes" course.
 High-impact programming - Could include navigating a 40-foot "high ropes" course, rock
climbing, or rappelling.
Outgoing and active participants may get the most out of this form of training. One risk trainers
might encounter is distraction, or people who don´t like outdoor activities.
Example: As truck drivers are often on the road alone, they could participate in a nature-training
course along with depot personnel to build esprit de corps.

6. Films & Videos

Films and videos can be used on their own or in conjunction with other training methods.
To be truly effective, training films and videos should be geared towards a specific objective.
Only if they are produced effectively, will they keep the trainees attention. They are also
effective in stimulating discussion on specific issues after the film or video is finished.
Films and videos are good training tools, but have some of the same disadvantages as a lecture -
i.e., no interaction from the trainees.
A few risks to think about - showing a film or video from an outside source may not touch on
issues directly affecting a specific company. Trainees may find the information very interesting
but irrelevant to their position in the company.
Some trainers like to show videos as a break from another training method, i.e. as a break from a
lecture instead of a coffee break.
This is not a good idea for two reasons. One: after a long lecture, trainees will usually want a
break from any training material, so a training film wouldn´t be too popular. Two: using films
and videos solely for the purpose of a break could get expensive.
Example: Videos for truckers could show the proper way to interact with customers or illustrate
preventive maintenance techniques.

7. Case Studies

Case studies provide trainees with a chance to analyze and discuss real workplace issues. They
develop analytical and problem-solving skills, and provide practical illustrations of principle or
theory. They can also build a strong sense of teamwork as teams struggle together to make sense
of a case.
All types of issues could be covered - i.e. how to handle a new product launch.
Example: Truck drivers could use case studies to learn what issues have been faced in the
trucking industry in the past and what they could do if a similar situation were to occur.

8. Planned Reading

Basically planned reading is pre-stage preparation to more formal methods of training. Some
trainees need to grasp specific issues before heading into the classroom or the team-building
session.
Planned reading will provide employees with a better idea of what the issues are, giving them a
chance to think of any questions beforehand.
Example: Here we may be stretching if we think that truckers are going to read through a lot of
material the training department sends them.

6. The Supply of Labor

„In being bought and sold in the labor market, labor becomes a commodity‟ (SCER, 2001: 5). It
follows those firms in competition with one another for labor will be interested in the current and
future availability of this commodity. Conventionally the process of human resource planning
involves forecasting the supply and demand for labor so that suitable plans can be put in place to
address situations of labor shortage or surplus.

Population

The supply side of the labor market derives from the country‟s population, specifically men aged
between 16 and 65 years and women between the ages of 16 and 60 (working age). Information
on the total size of the current population and predictions of future patterns of population growth
and decline are thus important in estimating the current and future supply of labor. Population is
affected by birth and death rates. When live births exceed the number of deaths a net natural
population increase arises and when mortality rates exceed birth rates a net natural decline in
population occurs. Population change is also influenced by net migration; that is the effect
caused by people moving into and out of the country.
The Workforce

A proportion of those over the age of 16 will not be in work or seeking work; this portion of the
workforce is classified as economically inactive. There are a number of reasons why people
might be economically inactive. This group typically includes those with caring responsibilities
for children or other dependents, those who have retired from work, students, people who are
incapacitated through ill health or disability and those choosing not to work or seek work. People
within this group may voluntarily decide to enter (or re-enter) the labor market once their
circumstances alter. Others may need to be enticed back to work through incentives and/or
government-orchestrated benefit reforms directed at this purpose. Those seeking work are
typically registered as unemployed but could also be those who have recently left work but are
not eligible to claim unemployment benefit, for example, those who have been made redundant.
Job seekers might also include recent school leavers and those completing programs of study in
further and higher education. The term unemployed is used to describe those people who are
currently not in work but would like to be. To remain in receipt of unemployment benefit
unemployed workers must be able to show that they are actively seeking work. The unemployed
group comprises people affected by different types of unemployment:
 Long-term unemployment or structural unemployment – those unemployed as a result
of the demise of whole industries or distinct occupations, for example mineworkers,
shipbuilders, textile workers.
 Frictional unemployment – those temporarily out of work because they are between
jobs.
 Seasonal unemployment – those made jobless as a result of seasonal fluctuations in the
availability of work. Seasonal unemployment is typically experienced by land workers
and those whose work is connected with holiday seasons.

The changing labor market

How the labor market works is of crucial importance for material well-being and the
performance of economies. It has long been a central focus of CEP research – and the
resulting analysis and evidence have had a major impact on the public understanding of
unemployment, inequality and key policy interventions like the UK‟s National Minimum
Wage and the New Deal.

a. Tackling unemployment

Twenty-five years ago, many people thought that high unemployment was inevitable. Some
saw it as the outcome of technological change, which would gradually produce the „end of
work‟. Others were less extreme but believed that the number of jobs was unaffected by the
number of people looking for work. CEP research provided a clear framework for thinking
about unemployment, which came to be known as the Layard-Nickell model (Layard et al,
1991, 2005). The core idea of this analysis indicates that in the short run, unemployment is
always determined by aggregate demand, but in the medium term, there are institutional
(„supply-side‟) limits to the level of demand that is consistent with stable inflation. Examples
of such limiting institutions are benefit systems and systems of wage determination.
By making this separation between supply constraints and demand, CEP researchers focused
attention on the need for:
• Serious efforts to improve the supply side.
• A quite separate mechanism for regulating demand, eventually justifying the independence
of the Bank of England so that it, rather than the Treasury, is responsible for setting short-
term interest rates.

In seeking to identify the key supply-side influences, two general points became clear:
• First, a bigger labor force does not increase unemployment – jobs do respond. Thus, for
example, unemployment cannot be blamed on immigration.
• Second, higher productivity does not increase unemployment – so improved technology is
not the problem.
One of CEP‟s biggest contributions to the understanding of unemployment was to introduce
evidence on vacancies. By 1985, vacancies in the UK had risen to their 1975 level, but
unemployment was three times higher. So clearly, there was a failure to mobilize the
unemployed to fill the vacancies that were available. And it was the vacancies that were
keeping inflation so high.
The research traced this „mobilization failure‟ to changes in the way unemployed people
were treated at benefit offices and job centers. This led to the recommendation of something
close to the New Deal as it was eventually implemented in 1998 as well as a series of other
„welfare-to work‟ measures intended to move those reliant on benefits into relative financial
independence through paid work. The basic principle was much more help for unemployed
people plus the requirement that they take advantage of it.

d. Minimum wages

Another policy carefully scrutinized by CEP research is the National Minimum Wage, which
was introduced nationally for the first time in UK history in 1999. This is the most significant
labor market intervention since 1997. The minimum wage is part of a wider package of
reforms designed to „make work pay‟. The centerpiece of these reforms is a tax credit that
boosts low wage workers‟ take-home pay. The minimum wage is an integral part of these
reforms because it stops employers from cutting wages knowing that workers will not be any
worse off.
The potential employment effects of the minimum wage are its most controversial feature.
The traditional economist‟s view of this issue is that when faced with increases in the price
of labor due to the minimum wage, firms will reduce the quantity of labor they employ (the
„law of demand‟). Labor costs will rise due to wage hikes of those previously below the
minimum wage and through „knock on‟ effects as those higher up the distribution seek to
maintain wage differentials.

e. Increasing inequality

The central aim of the UK‟s minimum wage has been to deliver a fairer wage to low paid
workers without limiting their employment opportunities or harming the efficiency of
business. But while many workers have benefited from the policy, overall wage inequality
has not fallen significantly – although it is likely that inequality would have risen by even
more in the absence of the minimum wage.
A great deal of CEP research has focused on this issue of rising wage inequality – on the
processes of wage determination that drive it and, in particular, on shifts in the structure of
wages. Wage inequality can be beneficial where it creates work incentives, but too much
wage inequality can actually damage incentives, as Richard Freeman‟s work at CEP has
recently indicated. Wage inequality may also be a concern if some workers are receiving
more than their market value, a question recently raised with respect to CEO‟s, and if
workers who improve their productivity find they are „stuck‟ and cannot move up the wage
distribution.
Early work in the area provided descriptive material on the nature of rising wage inequality
and coincident shifts in the demand for skilled vis-à-vis unskilled workers (Machin, 1996a
and 1996b). It is now widely recognized that wage inequality has risen since the 1970s, with
rapid increases in the 1980s followed by a slowdown in the 1990s. Stephen Machin‟s
research showed rising wage gaps in the 1980s between those at the higher end of the wage
distribution and those at the bottom. It also showed that more educated and skilled workers
were improving their relative position, both in terms of wages and employment, compared
with their less educated and less skilled counterparts.

7. Difference between performance management and performance

appraisal
Performance management is the process of identifying, measuring, managing, and
developing the performance of the human resources in an organization.
Performance appraisal, on the other hand, is the ongoing process of evaluating employee
performance.
There are all kinds of ways to think of the difference between the two. Performance
management is about what you‟re going to do to help an employee continue in their
development to become increasingly better in their performance for your organization.
Performance appraisal is how you evaluate the progress being made by assessing or
measuring the employee‟s actual performance on a regular basis over time.

Performance appraisal Performance management

Operational
Top-down assessment
Retrospective for corrections
Typically once or twice per year
Often uses ratings or rankings
Rigid structure/system
Not linked to business needs
Usually takes a quantitative approach
Individual
Often linked to compensation
Often very bureaucratic with a focus on
paperwork/documents
Usually housed in HR department
Strategic
More likely to involve dialog
Future-oriented for growth
Ongoing or continuous review, interspersed with
formal reviews
Less likely to involve ratings
Flexible process
Linked to business needs
Combines quantitative and qualitative approaches
Collective
Not usually linked to compensation
Less concerned with documentation
Conducted by managers and supervisors
https://keydifferences.com/difference-between-performance-appraisal-and-
performance-management.html

8. Factors influencing selection techniques

Many small businesses depend on the expertise of their human resources department to make
important hiring decisions on behalf of the company. Selecting the right candidates to fill a
job position within a company can be challenging, but some common factors exist that
influence the HR selection method. A business owner and her HR staff should understand
and value the same factors so that employees they hire meet the qualifications and fit within
the company‟s culture.

Relevant Experience

Relevant work experience is likely the most important factor that influences the HR selection
method. The relevant work experience required by an employer depends largely on the
available job position and the level of skills required to carry out the duties of the position.
HR personnel initially look at job candidates' relevant work experience by reviewing their
resumes. Applicants without relevant work experience are typically eliminated from the job-
selection process. Employers desire to hire candidates with relevant experience because it
saves the company time and money in training an employee. Employers also seek to reduce
employee turnover by hiring qualified applicants.

Education

Educational achievements also play a role in a company‟s hiring decisions. Some job
positions require certain industry knowledge that is often obtained through the completion of
a degree program. For example, a company desiring to hire a registered nurse will most
likely require that candidates possess a nursing degree for employment consideration by the
HR department. Educational achievement not only acts as a factor in making hiring
decisions, but for some employers, the mode of education is also a factor. Some companies
prefer to hire candidates who graduated from certain top-ranking institutions, or a company
may prefer not to hire candidates who earned degrees through online-degree programs.

Relocation

One of the factors that influence the selection process for the human resource department is
the geographical location of the job candidate. Most employees prefer to hire employees
living in the local area. Employers prefer to hire local candidates because it hastens the hiring
process and saves the employer money on the interviewing process and on relocation fees.
Although most employers look to hire local candidates to save time and money, some
employers choose to make the application process open to individuals living in other states.
If local candidates fail to meet the employer‟s qualifications for the job, HR typically seeks
regional candidates next before widening the search to national and global candidates.

Salary Requirements

The salary requirements of a job candidate influence the HR employment-selection process.

Employers typically set a maximum salary for an open job position. Candidates who require
a salary greater than what the employer offers are typically eliminated from the selection
process. Some companies choose to negotiate the salary with attractive candidates because
they desire to retain their talents and skills. HR managers also consider the present salary of a
job candidate. If the candidate‟s current or previous salary is not competitive enough, an
employer may not consider the candidate for the job.

9. Distinguish between contractual and statutory employment rights

Contractual Rights
Contractual rights derive from your contract of employment, but they do not necessarily have
to be stated in writing in your contract or even verbally.
A contract of employment is an agreement made between an employer and an employee. The
agreement can be a verbal or a written one.
Contractual rights will usually include express rights (the right to payment of salary, the
right to holiday entitlement, the right to notice of termination of employment etc.)
and implied rights (the right to be treated in a manner consistent with mutual trust and
confidence).
Sometimes contractual rights arise from “custom and practice” as well as what is written into
the contract.

Statutory Rights
These are rights which are given to employees by Parliament and set out in primary or
secondary legislation. They include the following:
1. The right not to be unfairly dismissed. This is usually only available to employees
with at least two years‟ service.
2. The right to a statutory redundancy payment. This is only available to employees
with at least two years' service.
3. The right not to suffer unauthorised deductions from wages.
4. The right not to be discriminated against. Discrimination on the following grounds is
prohibited: sex, maternity, marital status, gender reassignment, racial origin, national
origin, disability, sexual orientation, religion/belief, age etc.
5. The right to receive the minimum wage.
6. Protection against unfair treatment or dismissal for whistleblowing, trade union
membership or union activities.
7. Various maternity and paternity rights.
Some rights that are covered by contract and also by statutory rights will overlap.
10. Different types of employment contracts
Your employment contract could vary depending on a number of different factors
Generally, it will be determined by how many hours you work, but that may not always be
the case. And before you sign anything, it‟s always vitally important to understand all the
available options.
To help find out which one works best for you, here‟s our guide on the different types of
employment contracts:

Full-time contracts
The most common type of employment contract is full-time.
These contracts are generally offered for permanent positions, and usually set out the
employee‟s salary or hourly wage. Other details included within a full-time contract include
holiday entitlements, pension benefits, parental leave allowances, and details on Statutory
Sick Pay (SSP).
There is no set minimum number of hours that you must work on a full-time contract.
However, most employers recognize full-time work as 35+ hours per week.

Part-time contracts
A part-time worker works fewer contracted hours than a full-time employee.
However, they generally also hold permanent positions, and their contract contains many of
the same details as their full-time counterparts. The number of hours they‟re scheduled to
work per week should be clearly visible within the contract, but they may have the option to
work overtime, if and when desired.
Benefits of part-time employment include a more flexible schedule, allowing individuals to
fit their work around other commitments, and the opportunity for people to try out new roles
without having to give up vast amounts of your time.

Fixed-term contracts
Fixed-term contracts last for a specific amount of time, which has been set and agreed in
advance.
In some instances, fixed-term contracts may not include an exact timeframe, but will instead
end when a specific task has been completed or fulfilled.
Fixed-term employees enjoy all of the same rights and benefits as with any other permanent
contract, although factors such as holiday entitlement will depend on contract length.
Depending on the role, and an individual‟s performance, fixed-term contacts can sometimes
lead to longer term positions.

Temporary contracts
Similar to fixed-term, temporary contracts are offered when a contract is not expected to
become permanent.
Usually they would have some form of end date included, however, these may be subject to
change. As such, temporary workers may have their contracts extended in line with demand
and availability.
Despite their short-term status, temporary workers are entitled to the same rights as any other
member of staff. Benefits of temporary contracts include increased flexibility, the ability to
manage work around study or other interests, and building experience within a specific
sector.

Agency contracts
Agency staff has their contracts agreed and managed by a recruitment consultancy or
employment agency.
They usually work on a temporary basis, and the length of their contract will depend on
demand from the employer, as well as their availability.
It will be the agency‟s responsibility to make sure their employees‟ rights are protected.
However, NI contributions and Statutory Sick Pay will be paid by the employer to the agency
you work for.
After 12 weeks‟ continuous employment in the same role, agency workers are then entitled to
the same rights as permanent employees of the company.

Freelancers and contractors

When working on a freelance or contracted basis, contracts may vary from position to
position.
However, individuals working in this way are generally considered self-employed, meaning
that it‟s their responsibility to look after tax and NI contributions. Contracts may include start
and end dates, or the salary may be based on set projects or pieces of work, meaning the
contract effectively end upon delivery.
Freelance and contract workers may also not be entitled to the same rights as more
permanent members of staff, although they do get to manage their own schedule, and
negotiate their own terms.

Zero hour contracts

Also known as casual contracts, zero hour contracts specify that an employee works only
when required by their employer.
The employer is under no obligation to provide a set amount of hours to work. And,
similarly, the employee does not have to accept any work that is offered to them.
Zero hour workers are, however, entitled to the same annual leave as permanent workers, and
their employer must pay them at least the National Minimum Wage to work.
Individuals on a zero hour contract may also seek employment elsewhere. In fact, their
contract would not be valid if it prevented them from looking for, or accepting, work from
another employer.