IB Business & Management

IB Business & Management Unit 2.1 Lesson 1: Human Resource Planning Page 167-202

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

Historical Data and trends Technological changes Sales and income levels Looking For… Demographic changes Labour Turnover rates 2b. An Overview • So, what do firms look at when trying to anticipate their organization’s current and future staffing needs? • …

Net Birth Rate Net Migration Rate Mobility of labour Changes in demographics Retirement Age Women unemployment Flexibility Of the workforce 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… • …

Internal workforce Rate of unemployment Competition Supply of HR Cost And Availability Of transportation Cost of Living 3b. Supply of HR and Demographic Changes • Also, the supply of human resources to a firm will depend on… • …

Increased Dependent Population Change In employment patterns Effects of An ageing Population Reduced Labour Mobility Changes In Consumption patterns 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… • …

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 Historical Data • Firm must consider level of demand • Level of demands depends on: Derived Demand Flexibility and Workload Level of Demand Work Study Capital Intensity

Skills and Training required Job Analysis Entails… Rewards needed To recruit And retain Qualifications And personal qualities 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 • …

Challenge Job Security Location Why leave Your Job? Pride Prestige Advancement $$ Money $$ 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.

IB Business & Management Unit 2.1 Lesson 2: Recruitment & Selection Page 167-202

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. • …

IB Business & Management Unit 2.1 Lesson 3: Internal and External Recruitment Page 167-202

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? • …

Cost effective Few Applicants Motivational Advantages Of hiring Within a firm Less Down time Internal Politics Disadvantages Time Consuming Less risk “Deadwood” 2. Internal Recruitment

Newspaper Ads Direct Contacts Specialist Trade Publications Internet Ads University Visits Advantages Of hiring Within a firm Commercial Employment Agencies Headhunting Job Centres 3a. External Recruitment

assess & Record proformance Aid in Assessing Suitability For promotion Assess Training needs Reasons For Appraisals For reflection Aid Professional development Set new goals 4a. Appraisals • Is a form of assessment. • What does it assess? • An employee’s performance. • Usually carried out on an annual bases.

Used to Set targets Time Consuming Confidential feedback Regular Monitoring Is difficult Is a Daunting experience Feedback From staff Advantages To praise Staff objectively Appraisals Linked To pay Disadvantages Hurt peoples Feelings And relationships Appraisers Lack experience Staff May get Offended By comments Provide Constructive criticism 4b. Appraisals

Methods Of Appraisals Upwards Appraisal (employee Appraises A senior) Essay Appraisal (write about Strengths And Weaknesses) 360 degree Appraisal (collect Opinions From people You work With) Rating System (rate specifics About the Job) MBO Management by Objectives (assessing Your objectives) Peer Appraisal (same level Of employee Appraisal) Self Appraisal (you Appraise Yourself) 4c. Appraisals

Record And Report Counter- sign Sign Final Report Appraisal Meeting Written Report 4d. Appraisals • The performance appraisal will include the following steps:

Issue an Advisory letter No Improvement- Dismiss employee Monitor the performance Offer counselling Discuss consequences 4d. Appraisals • If an appraisee has an overall rating below “moderate”, the following actions can be taken:

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

Meet Key Personnel Mentor Is introduced Look at Company policies Tour The Premises Learn About Job role 5c. Induction Training • Induction training: is aimed at introducing new employees to the organization.

Create Good Working habits Planning is Time consuming Morale is boosted Advantages Helped to Understand Corporate culture Disadvantages Information overload Key Personnel Must be free Settle in quicker 5d. Induction Training

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

cheap Can pickup Bad Working habits Convenient location Training is relevant Advantages Disadvantages Trainers Will be taken Away from Their job Trainers May lack experience Establish Work relations Fewer Disruptions Of daily operations 5f. On-the-job Training

Experts Give training Very expensive Networking Advantages Wider Range of training Employees May leave After gaining training Disadvantages Loss Of output No distractions Skills and Knowledge May not Be useful 5g. Off-the-job Training

6a. Dismissal & Redundancy • Employee contracts can be terminated in several ways: • 1. Dismissal • 2. Redundancy • 3. Retirement • 4. Resignation

incompetence Legal requirements Dismissal is Fair when… misconduct Gross misconduct 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.

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?

Employment sector Flexitime Ageing Population Flexible Work Structures Part-time employment Changes In Employment Patterns Teleworking Portfolio Working Home working 7a. Changing Employment Patterns and Practices • Employment patterns change overtime. • Here are a list of these trends.

IB Business & Management