IB Business & Management Unit 2.1 Human Resource Planning

IB Business & Management

Unit 2.1 Human Resource Planning

Learning Outcomes• Compare present human resources with future requirements

and evaluate strategies for developing future human resources

• Discuss the significance of changes in labour mobility, both domestic and international

• Identify the constraints and opportunities provided by demographic change

• Describe methods of recruitment, appraisal, training and dismissal

• Discuss advantages and disadvantages of different methods of recruitment, appraisal, training and dismissal

• Analyse the impact on the firm of legal employment rights (HL)

• Examine how of recruitment, appraisal, training and dismissal and redundancies enable firms to achieve workforce planning targets (HL)

What is Human Resource Planning?

• The process of anticipating the organisation’s current and future staffing needs

• Working out:– The number of staff required– The type of staff– What skills workers need

• Putting systems in place to meet these needs

Why is human resource planning so important?

• Businesses seek to employ the right people to achieve its aims and objectives.

• People are important to a firm because they add value to its output.– Increasing productivity – improving quality– producing new ideas– better customer service.

Task

• How would BSM go about planning their staffing needs for next year?

• What information would they use?

What information is needed?

• Historical data and trends• Sales forecast• Labour turnover rates• Demographic changes• Technological changes

How would each of these factors affect the level of staffing required

Labour Mobility

Labour mobility consists of changes in the location of workers both across •physical space (geographic mobility) this can be national or international•and across a set of jobs (occupational mobility)

Questions to consider

• What might stop a worker being – Geographically mobile– Occupationally mobile

• What could be the negative consequences of a lack of labour mobility

• What factors may have lead to increased– Geographical Mobility (national)– Geographical Mobility (international)– Occupational Mobility

• What are the benefits to firms of increased labour mobility?

Mobility oflabour

Women

unemploymentFlexibility

Of the workforce

RetirementAge

NetMigration

Rate

NetBirthRate

Changes indemographics

Demographic changesHow might changes in these areas offer opportunities or threats for firms?


Unit 2.1 Recruitment & Selection

Why is recruitment important?

• The success of a firm depends to a great extent on the people it employs – why?

• Labour is usually the single biggest cost a firm has

• The recruitment process is time consuming and can be expensive

• It is therefore essential that the firm recruits the right people

Why do firms recruit?

• Expansion – more workers required.

• Change – new workers are required with different skills

• Replacing workers who have left the organisation

• Replacing workers who have been promoted

Why might workers leave an organisation?

Why do workers leave?

• Retirement• Move area• Better pay• Better job security• Promotion in another

firm• dismissal

Task - Recruiting new workers

Create a Flow Chart to show the step by step process that firms have to go through in order to hire a new member of staff.

Have you missed out any of these?

Decision that new staff are needed

Draw up Personspecification

Draw up Job Description

Advertise the job

Read applications

Shortlist applicants

Interviews

Appointment

THE JOB ANALYSIS PROCESS

Job Analysis

• The process of scrutinising the job and verifying:

• The roles and responsibilities of the job• The skills, qualifications and attributes

needed• The rewards needed to attract the right

candidates• From this analysis the job description

and person specification are drawn up

Job Descriptions

• Job descriptions are a document that is drawn up to include details about a job

• What details might be included?• Working hours• Pay• Line Manager• Duties

A job description might look like this……

Innocent LtdJob title: Cow van mechanic Department: Operations Hours of work: 40 hours per week Salary: £12,000 – £16,000 Duties & responsibilities: 1. Fix mechanical problems with the ‘cow’ vans.2. Service, maintain and clean the vans regularly.3. Keep records logging all problems and fixes to the vans.

Person SpecificationsWriting a person specification involves looking at the job description and then thinking about the characteristics needed of the person to do the job

This could include:qualifications (necessary and desirable)

experience (what jobs they should have done before)

skills (teamwork, good organization, typing, etc.)

attributes (personal qualities and characteristics).

Task

• Look at the example job description and person specification

• Write a job description/person specification for a job you would like to do when you have first finished in education

• BE REALISTIC!

Example Job Adverts

What is included in a job advert?A job advert usually summarises the details included in the job description and the person specification:

the name of the business or organization

job title and (sometimes) salary

a description of what the job involves

how to apply.

Job adverts should be:

• Truthful• Relevant• Accurate• Positive• Short

Homework Task

• Write a job advert for the job that you wrote the job description and person specification for

• This should be done in Word or Publisher and should be one A4 side.

• Think carefully about the format and the wording you use

Advertising the vacancy

• The firm now has to decide where to advertise the job

• This will depend on whether they are going to recruit internally or externally

THE APPLICATION PROCESS

Applications are normally made by a combination of:

• Application Form• Curriculum Vitae• Covering Letter

• What would be the benefits of using an application form rather than CV?

Task

• Have a look at the application forms for:• Starbucks• McDonalds • TescoWhich one is the best? Why

THE SELECTION PROCESS

The selection process includes:

• Shortlisting• Interviews• Testing

Short listing

– The HR manager will sieve through all the resumes and forms and pick out suitable candidates.

– They will create a short-list of people from all the applicants.

– This short-listing process will involve comparing the CV’s of the applicants to the job description.

– From there, you select people to interview.• …

Interviews

• Telephone• Video conferencing• Face to Face• Panel

The purpose of Interviews:

• To find out more information about the candidate• To see if the candidate will fit in with the

company culture• To assess if the candidate has the personal

qualities needed to do the job

Good Interviews:

• All candidates are asked the same core questions• Additional questions maybe added to query

details on the application• Ask behavioural and situational based questions

Some typical interview questions for a teaching job…..• Why have you applied for the job?• What can you offer the school?• Give an example of a successful lesson

that you have taught• Where do you see yourself in 5 years

time?• What are your strengths and

weaknesses?• What would you do if……..?

Things Interviewers are looking for?

• Physical appearance • Attainments• Intelligence• Skills• Interests• Temperament and disposition• Motivation• Circumstances What are the limitations of the interview process?

Task• Two of the group will take the

positions of HR managers for Tesco

• You will need to prepare 6 questions to ask the applicants

• The other applicants will apply for a job

• Who will be shortlisted? Who will impress at Interview?

Testing

• Psychometric Tests• Aptitude tests• Intelligence tests• Trade tests

References

• These are 2 referees who can vouch for the candidate.

• A final security check• Can be written or verbal

• Why might a previous employer give a good reference to an unsuitable candidate?

Selecting and appointing the candidate

After the interview process, each candidate is reviewed and the business selects and appoints the most suitable person.

This can involve a lot of discussion if there have been several people involved in the recruitment process

Successful and unsuccessful candidates will be informed of the decision

Contract of Employment• Job title• Job role• Date of commencement (and sometimes end date)• Hours and days of work• Rate and method of pay• Holiday and sick pay entitlements• Pension plan details• Disciplinary procedures• Notice period• Names and signature of employer and employee


Unit 2.1 Internal and External

Recruitment

Internal Recruitment

This refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside.

How would a business go about recruiting internally?

Staff notice boards

Intranets In house

magazines and newsletters

Staff meetingsEmail notifications

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF RECRUITING INTERNALLY?

Ads and Disads of internal recruitment

Advantages Disadvantages

1.

3.

2.

5.

4.

3.

2.

4.

5.

1.Gives existing employees greater opportunity to be promoted

May help to retain (keep) staff who might otherwise leave

Requires a short induction training period Employer should know more about the internal candidate's abilities

Usually quicker and less expensive than recruiting from outside

Not as many people apply

External candidates might be better suited / qualified for the jobAnother vacancy will be created that has to be filled

Internal Politics

Dead Wood

External Recruitment

This refers to the filling of job vacancies from outside the business.

How would a business go about recruiting externally?

Employment/ Recruitment agencies

Headhunters

Job centresAdvertising

Milk Round

Personal Recommendation

Ads and Disads of internal recruitment

Advantages Disadvantages

1.

3.

2.

3.

2.

1.New Blood

Wider Experiences

Larger Pool

Time Consuming

Expensive

Larger degree of uncertainty


Unit 2.1 Appraisals

What is an Appraisal?

• An Appraisal is a form of assessment.• What does it assess?– An employee’s performance.– Usually carried out on an annual basis– Carried out usually by someone more senior in

the organisation

Can also be referred to as Performance Management

WHAT ARE THE ADVANTAGES OF APPRAISALS?

The Value of Appraisals…

Advantages• Target setting can

improve performance• Opportunity for

employees to be recognised and praised

• Can get feedback from staff

• Areas for improvement can be recognised

Disadvantages• Time consuming• Only take place

annually• Can be subjective• Lack of training for

appraisers• Can be seen as critical

Methods of Appraisal

MethodsOf

Appraisals

UpwardsAppraisal

EssayAppraisal

360 degreeAppraisal

Rating System

MBOManagement

by Objectives

PeerAppraisal

SelfAppraisal

Task

• Look at the Appraisal for BISS

Task – Peer Appraisal• You are going to Appraise each other as IB

students1.Fill in section A1 – A5 about your self2.Pass to your reviewer who then fills in section

B3 (without looking at sections A1-A5) 3.The reviewer then reads section A1- A5)4.The reviewer and reviewee get together to go

through to discuss, compare results for A3 and B3

5.Targets are agreed and filled in section B4 – these must be SMART

6.The document is signed

The process…..Record

And Report

AppraisalMeeting

WrittenReport

SignFinal

Report

Counter-sign

Implications of a bad appraisal

• Issue an advisory letter• Offer help• Monitor Performance• Dismissal

Task

• Watch the appraisal video• Appraisal “Spot the gaffes”• What are the problems with this appraisal?


Unit 2.1 Training

Training and Development….. The difference?

Training and development….The process of providing opportunities for workers to acquire employment related skills and knowledge

Training – focuses on the tasks and responsibilities of a certain job

Development – focuses on enhancing the personal skills of an employee

All companies will train their staff in some way, some more than others.

Why do you think that firms need to train their staff?

Why do companies need to train their staff?

• To provide workers with the skills to do their jobs

• To create a flexible workforce• To attract good quality applicants• To increase motivation• To keep up with changes in technology• To improve workers skills and

knowledge to make them more efficient• To keep up with changes in the law• To prepare people for promotion

Three types of Training

• Induction• On-The-Job• Off-The-Job

What do you think the difference is between these types of training?

Induction training

• An introduction to a new employee.• Explains the firm’s activities,

customs, procedures• Introduces them to fellow

workers

Task -

• If have been asked to design an induction program for new teachers at BISS

• What type of things would your program involve?• Think of at least 6 things

What are the best ways to train people?

Typical training activities Practical tasks Coaching Research tasks Talks Presentations Watching videos Reading assignments Lectures Role plays shadowing (shadowing another employee to see

how they do it and what's involved).

Induction Training

Aimed at introducing new employees to the organization•Tour of site to help workers find their way around•Information about the firm, it’s history and how it is organised•Conditions of employment explained•Learning about the role of the job•Health and safety and fire training•Introduced to new colleagues and key personnel

Benefits of Induction Training

New Staff feel welcome

Staff settle in quickly

New Staff understand corporate culture

Establishes good working habits

Advantages

Potential disadvantages

Informationoverload

Key PersonnelMust be

free

Planning isTime

consuming

Disadvantages

On the Job Training

On-the-job training

• Training carried out whilst at the workplace• Delivered by a more experienced or senior

member of staff• Often involves ‘Learning by doing’

What are the advantages of On-the-Job training?

Key points…..

• Can be relatively cheap• Trainee is still at work so less disruptive• Convenient locationHowever…..• Trainees may pick up bad habits• Internal trainers may not be the best

qualified• Trainers may not be able to do their

own work while training

Off-the-job training

• Training is carried out away from the workplace• This could be at a local college, training provider, or

hotel• Can be delivered by internal trainers or external

organisations• Often delivered to key members of staff who are then

expected to cascade the information to other workers

Key Points

• Trainers are experts• No distractions• Networking can take placeHowever…..• Can be very expensive• Loss of output whilst the employee is

away• May not be totally appropriate or

transferable

Task

• Look at the video of staff training at Starbucks.• What type of training is this?• How will this training benefit the company?

Having looked at the reasons why firms train their staff and different types of training

Are there any potential drawbacks to a firm of training their staff?

Drawbacks of Training

• Can be very expensive• Staff could leave and take their skills to another

firm• Loss of productivity whilst staff are being trained• Staff may demand higher wages• Can effectiveness be judged?


Unit 2.1 Dismissal and Redundancies

Dismissal & Redundancy

• As well as recruiting employees, the HRM department also deals with the termination of employment.

• This could be due to:

– 1. Dismissal– 2. Redundancy– 3. Retirement– 4. Resignation

What is the difference between these 4 terms?

DISMISSALS

Dismissals

• When the employee is sacked due to incompetence or a breach of contract.

• We would also call the being sacked or fired• This has to be done in a fair manner

Legitimate reasons for Dismissals

• Incompetence • Misconduct – unacceptable behaviour

such as persistent lateness, harrassment, behaving in an unprofessional manner. A series of warnings will be given

• Gross Misconduct – Major misdemeanors such as theft, fraud, dangerous behaviour. Dismissal will be instant

• Legal requirements – If an employee does not have the necessary skills, qualifications or licenses to do their job

When dismissal is considered wrong……

• Unfair Dismissal – When an employee is dismissed without a valid reason

• Wrongful dismissal – When the employee has been dismissed in a way that does not follow the correct procedures

• Constructive dismissal – When a worker has not been dismissed but has been forced to resign

REDUNDANCIES

What is a redundancy?

Occurs when the employees job ceases to exist. This may be because:–The company can no longer afford to pay the employee–The company is relocating–The company is downsizing–Technology has replaced the worker–The company is changing its operations–A merger or takeover

Often referred to as retrenchments or lay-offs.

Task

• Read the newpaper articles.• For each article summarise:• Which business is involved• How many redundancies are being made?• What are the main reasons for these

redundancies?• Which jobs are going to be affected• How are the redundancies going to be made?• You will have 4 minutes for each article and

then pass it on to the next pair

Who gets laid off?

What methods could a company use to decide who gets laid off?•Voluntary redundancies•LIFO•Retention by merit- what factors could be considered?An alternative to redundancies is to reduce pay or to redeploy staff to other areas of the company


Unit 2.1 Changing Work Patterns

Changing Employment Patterns and Practices

Flexitime

Part-timeemployment

PortfolioWorking

Homeworking

Teleworking

FlexibleWork

Structures

AgeingPopulation

Employmentsector

ChangesIn

EmploymentPatterns

Employment Sectors

• Changing proportions of workers working in Primary, Secondary and Tertiary Sectors.

Aging Population

• Falling birth rate• Longer life expectancy• Increase in retirement age• Companies have to be more prepared to employ

and train older workers

Flexible Work Structures

• In order to cut costs and improve efficiency, companies are trying to make their workforce more flexible

• This could involve:• Flexible organisation structures• Flexible working hours• Temporary contracts• Multi-skilling

Handy’s Shamrock Organisation

Charles Handy proposed the concept.A Shamrock organisation will have:Core Staff – Full time Staff -Vital but becoming an increasingly smaller groupPeripheral Workers – part-time, casual, temporary and portfolio workersOutsourced Workers – Workers not employed by the organisation but paid to complete specialist tasks

Teleworking and Homeworking

• Both are when workers are working outside of the workplace and communicating using electronic forms of communication

• Home-working specifically refers to when workers work from home

• What would the advantages and disadvantages be

Portfolio Working

• A portfolio worker is one who is employed by a variety of different businesses/customers simultaneously

• They will undertake projects for different companies

• They can charge per hour or per project• This is known as Adhoc employment

Part time Employment

• An increasing number of workers work Part-time in developed economies

• Why do you think this is?• Part-time staff in Europe have the same rights as

full time staff• Labour turnover tends to be higher – why?• Some companies use Job-sharing

Flexi-time

• A movement away from the traditional work time of 9-5

• An alternative to this is:• Shift work – Some businesses work 24

hours per day• Flexitime- Workers have a contracted

number of hours and can work then when they wish to within certain parameters

What are the benefits of this to the business?

Task

• Read the case study “Flexible working at Lloyds TSB’

• Answer the questions


Unit 2.1 Employment Rights - HL

What is Employment Legislation?

• The range of laws aimed to protect workers from being exploited

Coverage

• Anti Discrimination/Equal opportunities• Equal Pay Legislation• Health and Safety• National Minimum Wage• Working Hours• Statutory Benefits

Basic Employees Rights• A Contract of Employment - A written statement

of the terms and conditions of employment (after 13 weeks)

• An itemised pay slip. • Fair notice of termination of employment.• The guaranteed payment of wages/salary.• A safe working environment. • Be treated fairly • A reasonable amount of time off for public or

trade union duties.• Statutory sick pay. • Compensation if made redundant.• Maternity/paternity benefit and the right to

return to work

Equal Opportunities

Equal Opportunities

• Businesses must recruit, train and promote staff without discriminating on the grounds of gender, age, race, religion, sexual preference or disability

• What does the term positive discrimination mean?

Group Task – Statutory Benefits

Maternity Leave/Pay

Paternity PayWorking hours per week

Sick Pay

Write a statement outlining what you think would be a fair policy in the following areas of Employment Law

Holiday Entitlement

Rest Breaks

Minimum Wage

Working Hours

Working Time Directive 1998

Designed to protect employees from a requirement to work excessive hours, the WTD provides workers with the following statutory rights:

• four weeks' paid annual leave • a limit on average weekly working time to 48

hours (although this can be averaged out over 4 months and there are some exemptions)

• rest break after 6 consecutive hours of work• 11 hours' rest between working shifts• at least a day's rest per week• a limit on night workers' average daily working

time to 8 hours

Minimum Wage

The minimum wage

• The NMW rates are reviewed each year by the Low Pay Commission and from 1 October 2011:

• the main rate for workers aged 21 and over will increase to £6.08

• the 18-20 rate will increase to £4.98• the 16-17 rate for workers above school

leaving age but under 18 will increase to £3.68

• the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60

What point is this cartoon trying to make?

Maternity Rights

Maternity Rights• Pregnant employees have four key rights:• paid time off for antenatal care• maternity leave• maternity pay benefits• protection against unfair treatment or dismissalMaternity Pay:• for the first six weeks at 90 per cent of average

gross weekly earnings • for the remaining 33 weeks at the lower of

either the standard rate of £128.73, or 90 per cent of average gross weekly earnings (which ever is lower)

Paternity Rights

Paternity Rights• Ordinary Statutory Paternity Pay is paid for up to two

consecutive weeks, depending on how long you choose to take Ordinary Paternity Leave for. The current weekly rate is £124.88 (£128.73 from April 2011) or 90 per cent of average weekly earnings, if that is less.

• As of April 2011, fathers may qualify to take an additional 26 weeks of unpaid paternity leave if their partner has gone back to work

Sick Pay

Statutory Sick Pay

• Nothing for the first 4 days• After this you can claim statutory sick pay for 28

weeks• The rate is currently £81.60 per week

Task -

• Research a country and find out the legal requirements for:

• Holiday Pay• Sick Pay• Maternity leave• Paternity Leave• Minimum Pay• Maximum working hours• Rest breaks

•

Documents

IB Business & Management Unit 2.1 Human Resource Planning