CCHRM-UK

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HRM PRACTICES IN UK Presented by Nayna Garg January 3, 2011 1

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AGENDA Meaning of HRM HRM practices in UK Work permission and eligibility to work in UK Terms and conditions of employment Working environment Compensation, benefits and performance management Laws in UK January 3, 2011 2

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Human Resource Management means managing people effectively in order to achieve the goals and objectives of any organizations, small or big. HRM involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization. Corporations today have increased their attention towards managing human capital effectively. Human Resource Management practices can make an important, practical difference in terms of three key organizational outcomes: productivity, quality of work life, and profit. WHAT IS HRM? January 3, 2011 3

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Work permission and Eligibility to work in UK: If you're not from the UK or the European Union, you'll need permission to work (often called a work permit). Your employer will need to know if it is legal for you to work in the UK and whether you need a work permit or visa. You will need to show proof of your right to work. If you have to get a visa, you'll need to be cleared by officials at a British Overseas Mission in your country of origin. Once cleared, the entry clearance certificate, or visa, will be put into your passport or travel document. HRM practices in UK January 3, 2011 4

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Terms and conditions of employment: Most people who work in the UK are 'employees', with a contract of employment. The law says this must have certain terms, and it can usually only be changed with your agreement. All employees having a contract of employment, are entitled to a written statement of the main terms within two months of starting work. The contract is made as soon as you accept the job offer, and both sides are then bound by its terms until it’s properly ended (usually by giving notice) or until the terms are changed (usually by mutual agreement). The written statement should include the following: • pay • hours of work • holiday entitlement • sick pay arrangements • notice periods • information about disciplinary and grievance procedures January 3, 2011 5

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Working environment: Lack of trust on managers: The attitudes of British employees towards senior managers are significantly more negative than those of their counterparts in the USA, with fewer than a third expressing trust and confidence in their leaders. Compensation, benefits & performance management: National minimum wage: All workers in the UK aged 16 or over are legally entitled to be paid a minimum amount per hour. This is regardless of the kind of work they do or the size and type of company. There are different levels of National Minimum Wage, depending on the age of the worker. January 3, 2011 6

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Eligibility for national minimum wage: Almost everyone who works in the UK is legally entitled to be paid the National Minimum Wage. For example, you're entitled to receive the minimum wage if you're: • employed by an agency • a home worker • a part-time worker • a casual worker • a pieceworker • a worker on a short-term contract Compensation of top managers: UK senior managers are beaten only by the Swiss when it comes to the highest pay levels in Europe January 3, 2011 7

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Benefits: Workers are entitled to a minimum of 24 days paid holiday a year. For agricultural workers working in England and Wales working 5 days a week, the minimum is 31 days, including public holidays. Workers don’t have to work for more than 48 hours a week unless s/he has agreed in writing to do so. Workers are protected any unauthorized deductions being made from their wages. Workers are protected from discrimination on grounds of race, sex, disability, marital status, age religion or membership/non membership of a trade union. Workers must be provided with a safe and healthy work environment. January 3, 2011 8

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Types of benefits: Benefits for people of working age Benefits for people who have retired or who are planning to retire Benefits for families and children Benefits for disabled people and careers. January 3, 2011 9

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Performance management: Almost 80% of UK companies now operate a performance appraisal system. 55 percent of the organizations conduct appraisals annually, 7 percent quarterly and the rest semi-annually. Performance is measured on the basis of competency and accomplishments against goals or objectives. 9 out of 10 organizations use self appraisal forms as the part of performance appraisal. Results of performance appraisal are used in case of salary increase, bonus and promotions January 3, 2011 10

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Laws in UK Employment Rights Act Occupational safety and health Health and Safety at Work etc. Act Sex Discrimination Act 1975 Race Relations Act 1976 Disability Discrimination Act 1995 Employment Equality (Age) Regulations 2006 January 3, 2011 11

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