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1010Activity 10.1 (page 184): Manpower planning at Cameron Sweets Ltd

1 Defi ne the term ‘workforce planning’. [3]

Workforce planning is the process of forecasting the number of employees • required and the skills they will need to meet the future needs of the business. At Cameron Sweets Ltd, Roman Kauls is analysing future employee needs • and has to take into account a range of factors, such as the staff applying for maternity leave and the suggested labour law regarding working hours.

2 Explain the possible consequences to fi rms, such as Cameron Sweets, of not having a workforce plan for the future. [7]

A workforce plan identifi es future employee needs and the skills needed to meet a fi rm’s objectives. Without a workforce plan, there are a number of potential consequences including:

Inappropriate staffi ng levels due to a failure to recruit the right number of • staff − if there is insuffi cient staffi ng, then there may be bottlenecks in production and diffi culty in meeting the demands of customers. Th is could lead to a loss of goodwill and market share. If there are too many staff , it may lead to an increase in costs, making the product less price competitive or reducing the profi t margin. Inappropriate range of employee skills available − new complicated machinery • is being installed and if Cameron Sweets does not plan its future labour needs, it may result in there not being workers with the right skills to maintain and programme the machinery. Th is could delay production if the machinery malfunctions, as there will not be appropriate staff on site to solve problems.

3 Outline fi ve factors from the case study that will infl uence either the number of workers or the skill levels of workers needed by the business over the next year. [10]

Relative wages and working conditions − three workers have been attracted • away from the fi rm by higher wages and better conditions elsewhere, thus increasing Cameron’s need to recruit new employees.Sales − if sales increase, then this may mean an increase in the number of • employees required. Sales will be infl uenced by a range of factors, including the marketing decisions of competitors and Cameron Sweets Ltd.New machinery − this is fully automated and will, therefore, reduce the number • of employees needed. Th e extent to which production can be automated will be signifi cant. New machinery − this is complicated and will, therefore, need skilled • employees to maintain it and reprogramme it.

Human resource management

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Age and gender profi le of the workforce − two women from the materials • preparation department will be applying for maternity leave over the next three months. Cameron Sweets Ltd will need to arrange temporary cover for employees on maternity leave.Legislation − if the proposal to limit the working week to 48 hours is legislated • for by the government, then this will increase the number of employees needed by Cameron Sweets Ltd if their workforce currently works more than 48 hours per week.

4 To what extent will it be possible to accurately predict the workforce needs of Cameron Sweets over the next 12 months? [10]

As there are a large number of variables that will aff ect the workforce needs of Cameron Sweets in the future, it is diffi cult to make an accurate prediction. Th e longer the time period, the more diffi cult it is to predict accurately workforce needs. However, 12 months is a relatively short time frame, so it should be possible to make good predictions so long as Roman Kauls approaches the problem systematically. Th e following will enhance the accuracy of the prediction.

It is important to conduct a thorough workforce audit to identify, for example, • the characteristics of employees in terms of their age and length of service.An estimate of labour turnover will be needed to predict how many of the • existing staff will leave due to retirement or for other reasons. Using historical records may be useful to identify trends in labour turnover.It will be necessary to liaise with all departments to identify and analyse • proposed changes, such as the introduction of new automated machinery. An assessment will need to be made of the impact on productivity and skills needed.Th e marketing department will need to be involved to identify likely future • sales.An analysis of the external business environment will also be needed. Future • competition will aff ect sales. Th e proposal to change labour laws will infl uence employee needs.

Evaluation may consider:However, given that forecasts are only estimates, their accuracy will be dependent on the quality of the information available and whether the HR manager is able to identify all of the relevant factors.

Activity 10.2 (page 185)

1 Draw up a job description for the headteacher’s or principal’s post at your school or college. [10]

A job description should include the following:job title• details of the tasks to be• performedresponsibilities involved• place in• the hierarchical structure

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working conditions• how the job will be assessed and performance• measured.

HEADTEACHER JOB DESCRIPTION

Shaping the future Th e headteacher should be able to demonstrate the ability to develop a shared vision, which inspires and motivates pupils, staff and all other members of the school community. Th is vision should include core educational values, moral purpose, and be inclusive of all stakeholders’ beliefs and values.

Duties and responsibilities

Strategic direction and development of the sixth-form college:to work with the governing body, to develop a strategic view for the sixth • form in its community and analyse and plan for the future needs and further development of the sixth form within the local, national and international contextto formulate the overall aims and objectives for the sixth form and to develop • policies for their implementationto create an ethos and educational vision and direction which secure • eff ective teaching and successful learning by pupils, that encourage sustained improvement in their spiritual, moral, cultural, mental and physical development and prepare them for the opportunities, responsibilities and experiences of adult lifeto develop with staff , pupils, parents and governors a race-equality policy • relevant to the needs of the sixth form.

Leading and teaching:to work with the governing body to secure and sustain eff ective teaching and • learning throughout the sixth form and to monitor and evaluate the quality of teaching and standards of pupils’ achievement, using benchmarks and setting targets for improvementto ensure that all pupils receive a good-quality education through a programme • designed to promote a stimulating style of learning in a safe and healthy sixth-form environmentto ensure a consistent and continuous sixth-form-wide focus on pupils’ • achievement, using data and benchmarks to monitor progress in every child’s learningto be able to implement strategies which secure high standards of behaviour • and attendance.

Leading and managing staff : to lead, motivate, support, challenge and develop staff to secure improvement• to maximise the contribution of staff to improve the quality of education • provided and standards achieved and to ensure that constructive working relationships are formed between staff and pupilsto plan, allocate, support and evaluate work undertaken by groups, teams and • individuals, ensuring clear delegation of tasks and devolution of responsibilities in a manner consistent with their conditions of service, ensuring a reasonable

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balance for teachers and other members of staff , in work carried out in the sixth form and elsewhereto implement and sustain eff ective systems for the management of staff • performance, incorporating appraisals and targets for teachers, including targets relating to pupils’ achievements.

Effi cient and eff ective deployment of staff and resources: to deploy people and resources effi ciently and eff ectively to meet specifi c • objectives in line with the sixth form’s strategic plan and fi nancial contextto work with governors and senior colleagues to recruit staff of the highest • quality availableto work with senior colleagues to deploy and develop all staff eff ectively in order • to improve the quality of education providedto advise the governing body and implement decisions in relation to staffi ng• to advise the governing body on the adoption of eff ective procedures to deal • with the competence and capacity of staff .

Accountability:to be accountable for the effi ciency and eff ectiveness of the sixth form to the • governors and others, including pupils, parents, staff , local employers and the communityto provide information, objective advice and support to the governing body to • enable it to meet its responsibilities for securing eff ective teaching and learning and improved standards of achievement, and for achieving effi ciency and value for moneyto report to the governing body on the discharge of the headteacher’s functions • and the aff airs of the sixth form.

2 Draw up a detailed person specifi cation for this post. [10]

Th is is a detailed list of the qualities, skills and qualifi cations that a successful applicant will need to have.

PERSON SPECIFICATION: HEADTEACHER

Qualifi cations Th e candidate must have:a recognised teaching qualifi cation• a recognised professional headship qualifi cation. •

Experience Th e candidate must have:successful experience of sixth-form leadership, preferably at headteacher level. •

Personal qualities Th e candidate must have:good interpersonal skills• enthusiasm and drive• a clear and coherent educational vision• the ability to build a collaborative and creative learning culture• eff ective communication skills• a commitment to raising standards across ability and age ranges •

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the ability to provide planning for the long-term future of the sixth form • the ability to tackle diffi cult issues and take diffi cult decisions and convey • outcomes clearly and sensitively.

Strategic leadership Th e candidate must demonstrate the ability to:manage the sixth form’s fi nances eff ectively and effi ciently, including an • awareness of all funding sources create and lead a united successful management team • show a commitment to collaborative decision making. •

Promoting excellence and achievement Th e candidate must be able to demonstrate:

a track record of eff ective management behaviour • a good understanding of issues which aff ect quality in educational achievement, • including target setting, assessment, diversity and inclusion strategies sound experience of handling sixth-form performance data: collation, • evaluation, reviewing and taking appropriate action.

Managing staff Th e candidate must be able to:inspire staff to promote excellence in teaching.•

Managing the sixth form Th e candidate must demonstrate:the ability to manage day-to-day running of the sixth form effi ciently and • eff ectively, delegating management tasks and monitoring their delivery experience in ensuring that the management, fi nance, structure and • administration of the Federation support its priorities and objectives knowledge of the legal framework of education policy.•

3 Produce an eye-catching and eff ective newspaper advertisement for this post (use IT if you can), including key features from the job description and person specifi cation. [10]

Burniston Sixth FormHeadteacher required from September 2010

The students, staff, parents and governors wish to appoint an inspirational leader with a clear vision who can build on the success of the current headteacher and lead us from good to outstanding.

You will have a passion to see all our students experience success, the enthusiasm and ability to lead a strongly motivated team and a proven record as a school leader who has the capacity to respond to the changing educational environment.

Salary $78,581−$90,979

Starting date: September 2010

Further details of the post and an application pack may be obtained from the headteacher’s PA; email: Dawn Sharp offi ce@burniston-6-form.com

Closing date: noon on Monday, 23 March 2010

Burniston Sixth Form aims to be an equal opportunities employer.

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Activity 10.3 (page 189): Human resources crisis at the hotel

1 Outline four human resource problems identifi ed in this case study. [8]

Th e hotel was short-staff ed, e.g. no porters were available for a whole week due • to illness. Th is will lead to customer dissatisfaction.Skills and experience of employees were not matched to the responsibilities • being given to them. Th is will lead to poor decision making and failure to complete tasks to the required standard.Th ere was insuffi cient training for the recruits. Hotel rooms were overbooked. • Hot food was served cold. A large number of computer errors were made in reception. Poor management of employees, which will have an eff ect on the motivation of • employees and the quality of customer service they give.Th ere was high labour turnover. Th is will increase recruitment costs for the hotel.•

2 Analyse how each of these four problems might be tackled by a professional HR manager. [12]

Problem Solution

Short-staff ed Workforce planning is required. HR must conduct an • audit of current staff and identify future labour needs.Use of more fl exible employment contracts is needed to • ensure that cover is available for illness.

Employees given too much responsibility

Recruitment procedures should analyse jobs and draw • up suitable job descriptions and person specifi cations to ensure that recruits are capable of performing their roles. Training may also be required to develop skills of employees to meet the responsibilities they are given.

Training Each department needs eff ective induction training to • familiarise staff with, for example, booking systems.

Poor management of employees

Training courses should be run for department heads to • improve their people-management skills.

High labour turnover Better recruitment and selection techniques are needed • to ensure that job applicants understand the pressure they will have to work under.

3 To what extent would the profi tability of this hotel business be improved by more eff ective management of its human resources? [12]

Th ere are many ways in which eff ective management of human resources can help improve the profi tability of this hotel. Answers might outline some of the following:

Eff ective workforce planning will ensure that the business has the necessary • human resources to achieve its goals. Customer service is important in the hotel industry and management needs to ensure that, for example, there are always porters available.Workforce planning will also ensure that there are appropriate contracts of • employment. A hotel will save money by using the right balance of temporary,

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part-time and full-time contracts. For example, the judicious use of temporary contracts will help reduce overhead costs when there is a lack of demand; this will be important to a hotel as it faces seasonal demand.Recruitment and selection of staff must ensure that the business has the right • workers. For example, the hotel needs to recruit suitably qualifi ed chefs for the restaurant. Th is will enhance the hotel’s reputation and help increase revenue as more guests will choose to eat at the hotel. Eff ective recruitment also reduces labour turnover − high labour turnover adds to the costs of a hotel.Th e correct training is important in improving the skills of the workforce. • Training brings a range of benefi ts such as:– Employees will be able to carry out their jobs more eff ectively with the right

training. Th us, the value of work completed by employees will be greater.– Employees feel valued and, therefore, labour turnover will be reduced.

Staff who feel valued stay longer in a company. Th is means that costs of recruitment can be reduced, resulting in cost savings across the organisation.

Eff ective induction training will help avoid costly mistakes, such as over-• booking rooms. Th e hotel’s reputation will be tarnished if it over-books rooms and there may be a direct cost as compensation has to be paid to customers or upgraded rooms provided.

However, the profi tability of the hotel is not solely a function of the quality of human resource management. Human resources is just one of the functional areas of the business and must work in association with fi nance, operations and marketing to create a successful hotel business. Other factors, such as the quality of the rooms, competition from other hotels and the economic environment, will also aff ect profi tability.

Activity 10.4 − research activity.

Activity 10.5 (page 191): British Airways (BA) – has outsourcing gone too far?

1 Explain two benefi ts to BA from outsourcing many of its operations. [8]

Benefi ts include:Reduction in overhead costs − by outsourcing operations, BA will no longer • have to pay staff salaries and will thus reduce its overheads.Increased fl exibility − BA will be able to adjust provision of services to match • passenger demand without incurring some of the costs.Using specialist fi rms to provide services − for example, the use of Indian IT • companies for ticketing and internet operations may be more effi cient than employing staff directly. As the fi rms specialise in these services, they should be more effi cient and, therefore, be able to off er cost savings to BA. Gate Gourmet will benefi t from economies of scale because it provides airline meals on such a large scale.Reduces responsibilities as an employer − if BA employs its own staff to fulfi l • operational services, then it would have to fulfi l all of its legal responsibilities to

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its staff . such as maternity rights. BA will not have responsibility for recruitment and selection of staff for provision of operations.

2 Analyse three possible problems for a business of reducing its core staff to an absolute minimum and using fl exible workers and outsourced suppliers. [12]

Problem Commentary

Loss of control over quality of operational service

BA staff are no longer responsible for provision of services, such as airline food. Consequently, BA is losing some of its direct control over quality. Although service contracts will set minimum standards, it is BA’s reputation that will be damaged if service is of poor quality. BA will be locked into a contract to use, for example, Gate Gourmet. If they are dissatisfi ed with the service provided, it may be diffi cult for BA to eff ect change in the quality of service or to end the contract to fi nd another supplier.

Increased cost of providing service

Th e service suppliers have to make a profi t, so it may be more expensive to outsource supplies. Th ere will also be the cost of transition as BA employees are made redundant.

Impact on motivation of core staff

As BA changes toward outsourcing more and more supplies, their employees may be demotivated as they fear for their own job security.

Exposure to problems faced by service suppliers

Th e strike at Gate Gourmet is a good example of how BA is negatively aff ected by problems that are now beyond its control. BA is dependent on Gate Gourmet for providing food for fl ights rather than on its own staff . Th us, the dispute at Gate Gourmet results in dissatisfi ed BA customers and yet BA can do nothing to resolve the cause of the problem.

Activity 10.6 − answer provided on Student’s CD-ROM.

Revision case study 1 (page 193): Recruitment, selection and training at E and B Engineering

1 Explain the HR problems this fi rm is facing. [8]

Shortage of staff − due to a new customer order, there is a shortage of suitable • staff . Th is is, in part, due to poor communication between the functional areas of the business.Informal groups − the new supervisor does not have the support of the other • workers. Th e existence of informal groups at E and B Engineering has made it diffi cult for the supervisor to infl uence employees.Labour turnover − a recently trained employee has left the fi rm, having received • a better off er from another company. Insuffi cient time to recruit suitably trained staff for the new order − the • machinery is complex and, consequently, the job centre staff are unsuitable.Overworking of existing staff − it may be necessary to get existing staff to work • more overtime to fulfi l the order. Th ere is a danger that this will alienate staff .

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Poor recruitment and selection procedures − there is too much dependence • on the job centre due to poor forward planning. Inappropriate advertising is attracting too many applicants.Poor induction procedures for new recruits − Harryo gives recruits a quick • session on the machines and then just hopes that they pick it up.

2 Th e business has no HR department. How would an HR manager help the fi rm deal with the problems it is facing? [8]

Appropriate workforce planning − a human resource manager would ensure • that workforce needs are analysed in advance, so that there are the right number of staff with the right skills available. Th is would prevent potential problems of overworking the existing employees.Conducting a workforce plan − the HR manager would liaise with all • departments to ensure that workforce needs would be met.Eff ective recruitment and selection of employees• − this would avoid the problem of informal groups ignoring the supervisor. Th e HR manager would recruit employees able to carry out their responsibilities. Alternatively, the HR manager might have identifi ed that internal recruitment would be preferable.Eff ective retention strategies for staff − by ensuring that employee needs were • being met, the manager would reduce the incidence of newly trained staff leaving E and B Engineering. An HR manager would ensure that suitable payment packages and working conditions exist to retain staff .Appropriate advertising − the HR manager would ensure that job • advertisements were designed to attract the right sort of employees with the right skills for the job.Appropriate training to induct recruits into the organisation − this would help • new recruits settle within the organisation.

3 Discuss the suitability of recruitment and selection policies used for the new machine operators. [10]

A number of observations might be made including:Th e use of the job centre appears to be ineff ective. Th e job centre does not • understand the needs of the operations manager and is sending unsuitable candidates. However, the job centre is likely to be cheap to use and can provide workers at short notice.E and B needs to communicate more eff ectively with the job centre about its • particular needs. Alternatively, it could use a specialist recruitment agency, although this might prove expensive.Poor selection procedures mean that unsuitable workers start at E and • B Engineering before it fi nds out what they are really like. E and B Engineering makes do with whoever happens to be available from the job centre.Advertising is not eff ective at fi ltering out unsuitable applicants. Job adverts • should identify clearly the skills and experience expected from applicants. However, advertising in the local media will be relatively cheap.Recruitment and selection have been left to the operations manager. It might be • more eff ective to use an HR specialist. However, this will be more expensive.

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4 Evaluate the importance of staff training to E and B Engineering. [10]

Training includes:induction training• on-the-job training• off -the-job training.•

Staff training may provide a number of benefi ts to E and B Engineering, including:Training will develop the skills of employees and, therefore, increase their • productivity. Th is is important to E and B as it will help them remain competitive.Improved skills will ensure that employees produce better-quality output, • leading to increased customer satisfaction.Training will encourage employees to be loyal to the business as it demonstrates • the commitment of the business to the employee.Training will prepare employees for promotion and enable them to take on • more responsibility.Th e computer-controlled machinery used at E and B Engineering is complex • and requires training in using it properly.

However, there are a number of disadvantages to training, including:Th ere would be lost output as employees are taken out of production in order • to be trained. Th is may be signifi cant, e.g an apprentice may have regular time away from the workplace to attend vocational training at a college.Th ere would be the cost of providing the training, e.g. payments to the provider • of the training. E and B Engineering sent one of its employees on a long training course last year. Expenses paid to employees to attend training will also add to costs.• It takes time and eff ort to organise and review training.• Businesses may not always get the benefi t of the training, as employees may • move to another employer once they have been trained. Th is has happened to E and B Engineering.

Th e importance of staff training may depend on a number of factors such as:How competitive is the industry that E and B Engineering competes in?•

Evaluation may contrast the short-term costs of training with the long-term benefi ts. It may be observed that training is oft en one of the fi rst things to be cut during recessions as businesses look to make cost savings.

5 Discuss the links that might exist, using this case as a starting point, between eff ective HR management and staff motivation. [10]

Human resource management is an approach to managing people that emphasises the importance of planning and developing the workforce. It is a strategic approach to the eff ective management of a business’s workers to ensure that they aid the business in gaining a competitive advantage.

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Th ere are many links between eff ective HR management and motivation that can be illustrated through E and B Engineering. A number of these links are shown in the table below.

Effective HR

management Link to staff motivation

Workforce planning

Th is ensures that the right number of employees are • available to the organisation. It will avoid overworking employees, a problem faced by E and B. Th is is a hygiene factor identifi ed by Herzberg. Overwork may demotivate employees at E and B Engineering.

Recruiting and selecting appropriate staff

If E and B take on inappropriate recruits sent by the job • centre, this will have a negative eff ect on existing employees as they will have to give extra support to the new recruits or may have to put right the mistakes that are made by them.

Training Eff ective induction training will help new recruits settle at E • and B Engineering. Harryo has little idea how to introduce recruits to the organisation and is unprepared for his role.Training improves skills and provides new challenges for • employees. Developing skills may help employees achieve their esteem needs within Maslow’s hierarchy of needs.

Contracts of employment

Short-term contracts indicate a lack of commitment to the • employee. Eff ective HR management must ensure that there is a balance between the need to create fl exibility and the need to motivate staff .

Appropriate pay systems

Pay is considered by many commentators to be fundamental • to motivating staff , e.g. Taylor. If pay systems are inappropriate, then employees will be demotivated and are more likely to leave the business.

Essay1 a Defi ne what is meant by human resource management. [5]

Human resource management (HRM) is a strategic approach to the eff ective • management of a business’s workers to ensure that they aid the business in gaining a competitive advantage.HRM is about more than the traditional role of the personnel department. A • personnel department is simply focused on recruiting, training, disciplining and maintaining the welfare of workers. HRM is broader in scope. It involves, among other things:

– workforce planning– appraisal and development of staff – measuring staff performance.

b Examine the importance of workforce planning to a service industry, such as hotels. [10]

Answers may include:To maximise the quality and effi ciency of the workforce to meet the future • needs of the business requires eff ective forward planning. Workforce planning

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fulfi ls that role; it involves analysing and forecasting the number and skills of workers that will be required by the business to achieve its objectives.A hotel will need to carry out workforce planning on both a short-term and • long-term basis. Short-term planning is needed to ensure that there is, for example, suffi cient cover for staff on holiday. Longer-term planning is needed to ensure that the workforce is able to meet the strategic goals of the business. For example, Abu Dhabi National Hotels announced in 2009 that it was to open eight new hotels in the UAE. Th us, the business will have to ensure it is able to recruit or train staff to meet their needs.Workforce planning involves assessing the current workforce through a • workforce audit and analysing future workforce needs, taking into account factors such as labour turnover and future demand for the service. Hotels will need to determine the number of chefs, waiters, receptionists and • cleaning staff in order to operate eff ectively. Failure to recruit the right number of staff will lead to customer dissatisfaction.It is a competitive industry and customer service may be critical to the success • of a hotel. Th erefore, it is essential that the right employees are available at the right time. Some of the jobs are skilled within the hotel trade, e.g. chefs, and, therefore, • planning in advance is essential as it is oft en diffi cult to recruit staff at the last moment.Th ere may be seasonal variations in demand; this means that it is important to • hire the right number of staff during each season and ensure that contracts are appropriate to give fl exibility to the hotel.

c Should fi rms make staff training one of their priorities? Justify your answer. [10]

Answers may include: Defi nition of training: the process of teaching employees new skills or developing

the skills they already possess.

Labour is one of the most important resources that a business has and training may be essential to maximise the effi ciency of that resource. Consideration should be given to the diff erent types of training, such as on-the-job and off -the-job training.

Training brings a range of benefi ts, such as:Th ere will be higher labour productivity and, therefore, an increased value of • work undertaken by employees A better-quality product or service will be supplied as employees will be able • to carry out their jobs more eff ectively. Th us, the value of work completed by employees will be greater.Staff will be more motivated as they are learning new skills and work will be • more challenging.Labour turnover will be reduced as employees feel valued. Staff who feel valued • stay longer in a company. Th is means that costs of recruitment can be reduced, resulting in cost savings across the organisation.Th e number of accidents in the workplace will be reduced as employees are • more familiar with good working practices.

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It may be benefi cial for businesses to train their own employees rather than • recruit from other fi rms. Th is ensures that employees do things the company way.Well-trained staff are an asset to the business and help to retain customers.•

However, it may also be noted that training does impose certain costs on the business including:

Th ere will be lost output as employees are taken out of production in order to • be trained. Th is may be signifi cant, for example an apprentice may have regular time away from the workplace to attend vocational training at a college.Th ere would be the cost of providing the training, e.g. payments to the provider • of the training. Expenses paid to employees to attend training will also add to costs.• It takes time and eff ort to organise and review training.• Businesses may not always get the benefi t of the training, as employees may • move to another employer once they have been trained.

Th e importance of staff training may depend on a number of factors:how competitive the industry is• the nature of the business − for example, in the high-technology sector it may • be essential to have employees with excellent levels of skill, knowledge and capability in engineering.

Evaluation may consider:Evaluation may contrast the short-term costs of training with the long-term benefi ts. It may be observed that training is oft en one of the fi rst things to be cut during recessions as businesses look to make cost savings. Benefi ts of training depend greatly on whether newly trained staff remain loyal to the business.