Unit 2.1 Lesson 1: Human Resource
PlanningPage 167-202
IB Business & Management
1. Focus Questions
• 1. Describe what is meant by supply of human resources and demographic changes?–2. What is workforce planning and
how can it help a firm achieve its aims and objectives?• 3. How does a firm go about recruiting and selecting employees?
• …
2a. A thousand workers, a thousand plans.
~ Chinese proverb• What are the four factors of
production?– Natural resources, capital
resources, entrepreneurs and…– LABOR resources.
• Businesses seek to employ the right people to achieve its aims and objectives.– In order to do this, a firm needs
to use Human Resource Planning.• A.K.A – Workforce
planning.• People are important to a firm
because they add value to its output.– Increasing productivity, – Improving quality, – Producing new ideas and – Better customer service.
• …
Photo:http://hrappliedsolutions.com/hr03.jpg
2b. An Overview
• So, what do firms look at when trying to anticipate their organization’s current and future staffing needs?
• …
Technologicalchanges
Demographicchanges
LabourTurnover
rates
Sales andincome levels
HistoricalData and
trends
Looking For…
3a. Supply of HR and Demographic Changes
• Demographic changes affect the supply HR within a country.– What is
demography?• A statistical study
of population characteristics.
• A business will need to understand the following changes in demographics…
• …
Mobility oflabour
Women
unemploymentFlexibility
Of the workforce
RetirementAge
NetMigration
Rate
NetBirthRate
Changes indemographics
3b. Supply of HR and Demographic Changes
• Also, the supply of human resources to a firm will depend on…
• …Rate of
unemployment
CostAnd
AvailabilityOf transportation
Cost ofLiving
Competition
Internalworkforce
Supplyof
HR
3c. Supply of HR and Demographic Changes
• If there is a surplus of human resources, then business have two choices (example during an off-peak season):– 1. to make workers
redundant (job disappears).
– 2. to redeploy (relocate) workers to other departments.
• A major demographic change is the increased life expectancy of the population.– There are several
effects caused by an ageing population…• …
ChangeIn employment
patterns
ChangesIn
Consumptionpatterns
ReducedLabourMobility
IncreasedDependentPopulation
Effects ofAn ageingPopulation
Workforce Planning
• Can be short term or long term– Short term deals with the current
demands, ie. covering shifts for maternity, retirees
– Long term looks at HR needs of the future, ie. training employees months/years before
Workforce Planning
• Firm must consider level of demand
• Level of demands depends on:
Derived Demand
WorkStudy
Capital Intensity
Flexibilityand
Workload
Historical Data
Level ofDemand
4a. Workforce Planning• The demand for labour
may also decrease, due to natural wastage.– When someone leaves a
job.• Workforce planning uses a
lot of time and money, but can save you that and more in the long term.– In order to help save
time and money, HR managers will conduct a job analysis.
– Will create two important documents:• 1. job description• 2. person
specification• …
Rewards neededTo recruitAnd retain
QualificationsAnd personal
qualities
Skills andTrainingrequired
JobAnalysisEntails…
4b. Workforce Planning• Many companies have a
high turn over rate. Such as Wendy’s and Burger King.
• Think about it: – Why would people
leave their jobs?• CLAMPS
• So how do you retain staff?– Offer training
• Professional and development courses.
JobSecurity
PridePrestige
$$ Money $$
Advancement
Location
Challenge
Why leaveYourJob?
Unit 2.1 Lesson 2: Recruitment &
SelectionPage 167-202
IB Business & Management
1. Focus Questions
• 1. How vital is the recruitment and selection process for a business?–2. What is the application process?• 3. How do firm’s select employees?
• …
2a. Recruitment and Selection
• It is a vital part to the running of a business.– Hiring the right people ensures that the
business can function effectively.– Recruitment is time consuming and very
expensive.• So, how does this process begin?
– A vacancy become available.• Due to expansion of the business.• Replacement of staff.
• See Box 2.1b on pg. 174.• …
2b. Recruitment and Selection
• Once the a job analysis has been performed, several things will happen:– The HR manager will:
• Produce a job advertisement and this will include…
– A job description: outlines the details of the job– A person specification: gives the profile of the ideal
candidate.• An example of a job advertisement:
http://jobview.monster.ca/getjob.aspx?JobID=63277559&q=marketing&cy=ca&lid=224&jto=1&re=112&pp=25&pg=1&dv=1&AVSDM=2009-05-09+14:49:00&seq=9&fseo=1&isjs=1&re=1000
• Also see Box 2.1c for a list of skills sought by employers.
• …
2c. Recruitment and Selection
• Once the job advertisement has been finalized, the next step is to…what?– ADVERTISE the job.
• The advertisement may include…– hours of work, rate of pay and any fringe benefits.– Include contact points– Address of business – Deadline of the ad.
• A good job advertisement will hopefully attract suitable applicants. So, How do HR managers ensure this?
• …
2d. Recruitment and Selection
• They should consider the following 5 TRAPS when designing an effective ad.– 1. Truthful: do not make false claims– 2. Relevant: be to the point– 3. Accurate: must be precise– 4. Positive: help encourage people to apply– 5. Short: space is expensive, include
necessary information.• …
3. The Application Process
• What are the three methods an applicant will use for applying for a vacancy?– Application form– Curriculum Vitae or CV / Resume– Covering Letter
• More common today to apply online, using online forms or just sending your CV via email.
• …
4a. The Selection Process
• Once the forms have been filled out and the resume send, now what?– 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.• …
4b. The Selection Process• The three main methods in selecting the best candidates
are:– 1. Interviews:
• A video-conferencing interview• A Face-to-Face interview
– Two commonly used checklist models used in interviews can be found on pg. 177, Box 2.1a
• The objective of the interview process is to establish the best match between applicant and the job.– This is done by asking a series of questions:
• Behavior based questions (assesses a person’s behavioral pattern)
• Situation-based questions (evaluates critical thinking)• See pg. 178, Box 2.1d for a list of common interview
questions. • Also review the Do’s and Don’ts for interviews on the same
page.
• …
4c. The Selection Process• The three main methods in selecting the best candidates
are:– 2. Testing:
• Due to the limitations of an interview testing maybe used.
• It is more time consuming, increases the chances of hiring the right person and is cost-effective.
• Four main types of testing:– 1. Psychometric: assesses personality; level of
motivation.– 2. Aptitude: assesses ability and skill; problem
solving and reasoning skills.– 3. Intelligence: assesses mental ability; numeracy,
literacy, and general knowledge. – 4. Trade: assesses specific skills; useful when
standards or skills can not be judged.
• …
4d. The Selection Process
• The three main methods in selecting the best candidates are:– 3. References:
• Written statements about an applicant from a previous employer.
• Will usually confirm the strengths and weaknesses of an applicant.
• Serve as a security check.
• Now once a suitable candidate has been picked, they will receive a contract.– A written statement of the terms and
conditions of employment. See Box 2.1f for more details on pg. 179.
• An finally, induction; new staff receive training for their new role.
• …
Unit 2.1 Lesson 3: Internal and External
RecruitmentPage 167-202
IB Business & Management
1. Focus Questions
• 1. What is internal and external recruitment?–2. What are some methods of appraisal?• 3. How does training effect a company?–4. What are the employment
trends?• …
2. Internal Recruitment
Motivational
Less risk
Less Down time
Cost effective
AdvantagesOf hiringWithin a
firm
InternalPolitics
“Deadwood”
TimeConsuming
FewApplicants
Disadvantages
3a. External Recruitment
DirectContacts
UniversityVisits
HeadhuntingJob
Centres
CommercialEmployment
Agencies
Internet Ads
SpecialistTrade
Publications
NewspaperAds
MethodsOf hiringoutside a
firm
4a. Appraisals
Aid inAssessingSuitability
For promotion
For reflection
Set newgoals
AidProfessionaldevelopment
AssessTraining
needs
Assess&
Recordperformance
ReasonsFor
Appraisals
• Is a form of assessment.
• What does it assess?– An employee’s
performance.– Usually carried out
on an annual basis.
4b. Appraisals
FeedbackFromstaff
ProvideConstructive
criticism
To praiseStaff
objectively
Used toSet targets
Advantages
Confidentialfeedback
AppraisalsLinkedTo pay
AppraisersLack
experienceStaff
May getOffended
By comments
Hurt peoplesFeelings
Andrelationships
Is aDaunting
experience
RegularMonitoringIs difficult
TimeConsuming
Disadvantages
4c. Appraisals
MethodsOf
Appraisals
UpwardsAppraisal(employeeAppraisesA senior)
EssayAppraisal
(write aboutStrengths
AndWeaknesses)
360 degreeAppraisal(collect
OpinionsFrom people
You workWith)
Rating System
(rate specificsAbout the
Job)
MBOManagement
by Objectives(assessing
Your objectives)
PeerAppraisal
(same levelOf employeeAppraisal)
SelfAppraisal
(you AppraiseYourself)
4d. Appraisals
• The performance appraisal will include the following steps:
Record And
Report
AppraisalMeeting
WrittenReport
SignFinal
Report
Counter-sign
4d. Appraisals
• If an appraisee has an overall rating below “moderate”, the following actions can be taken:
Issue anAdvisory
letter
Offercounselling
Discussconsequences
Monitorthe
performance
No Improvement-
Dismissemployee
5a. Training
• What is training?– The process of providing opportunities for workers to
acquire employment related skills and knowledge.• Can you think of any jobs which require constant training or
upgrading of skills and knowledge?• The objectives of training:
– Adapt to change– Develop multi-skilled workers– Improve quality of work– Enhance efficiency– Facilitate career and personal development– …
5b. Training
• In order to develop a flexible workforce training and development are crucial.– Creating workforce flexibility refers to the ability of
workers to mulitask.– The benefits of this are:
• Flexible and productive• Financially successful
– The limitations:• Can be costly• Loss of output• No guarantee that training will solve business problems
5c. Induction Training
• Induction training: is aimed at introducing new employees to the organization.
Meet KeyPersonnel
TourThe
PremisesLearnAbout
Job role
Look atCompanypolicies
MentorIs
introduced
5d. Induction Training
Morale isboosted
Settle inquicker
Helped toUnderstandCorporate
culture
CreateGood
Workinghabits
Advantages
Informationoverload
Key PersonnelMust be
free
Planning isTime
consuming
Disadvantages
5e. On-the-job Training
• Is training carried out at the work place.• It involves learning by doing.
– “I hear and I forget. I see and I remember. I do and I understand.”• Confucius
5f. On-the-job Training
Convenientlocation
EstablishWork
relations
FewerDisruptions
Of dailyoperations
Training isrelevant
cheap
Advantages Trainers
Will be takenAway from
Theirjob
TrainersMay lack
experience
Can pickupBad
Working habits
Disadvantages
5g. Off-the-job Training
Networking
No distractions
WiderRange oftraining
ExpertsGive
training
Advantages
EmployeesMay leave
After gainingtraining
Skills andKnowledge
May notBe useful
LossOf
output
Veryexpensive
Disadvantages
6a. Dismissal & Redundancy
• Employee contracts can be terminated in several ways:– 1. Dismissal– 2. Redundancy– 3. Retirement– 4. Resignation
6b. Dismissal & Redundancy
• Dismissal:– You are fired, sacked
due to incompetence.– Many reasons for a
dismissal.• Not all cases of
dismissal are justified.– Discrimination and– Constructive
dismissal.• When your
employer has made it difficult for the worker to continue their job.
Legalrequirements
Grossmisconduct
misconduct
incompetence
Dismissal isFair when…
6c. Dismissal & Redundancy
• Redundancy:– Occurs when the employer can no longer afford to
employ the worker.• Often referred to as retrenchments or lay-offs.
• When you lay workers off, two methods can be used:– 1. Voluntary redundancy:
• When the employer asks the employee to be laid off.– 2. Compulsory redundancy:
• When the employer has to choose which workers to make redundant.
– Two ways to do this:• A. LIFO method: last in, first out.• B. retention by merit method: least productive
workers are made redundant.• Some larger business may want to redeploy its staff.
– Is this always the best strategy?
7a. Changing Employment Patterns and Practices
• Employment patterns change overtime.
• Here are a list of these trends.
Flexitime
Part-timeemployment
PortfolioWorking
Homeworking
Teleworking
FlexibleWork
Structures
AgeingPopulation
Employmentsector
ChangesIn
EmploymentPatterns