BUSINESS & MANAGEMENT

1. BUSINESS & MANAGEMENT Unit 2.1 Human Resource Planning Pg 165 – 202 (1st Edition) Pg 147 – 178 (2nd Edition) 1/60

2. KEY TOPICS Standard Level • Supply of human resources and demographic changes • Domestic and international labor mobility • Workforce planning • Recruitment, appraisal, training and dismissal • Changes in work patterns and practices: home working, teleworking and portfolio work Higher Level • Employment rights and legislation • Handy’s Shamrock Organization Note: Higher Level students will need to be able to analyze reasons for changes in work patterns and practices and the consequences for employers and employees. 2/60

3. HR Planning Human Resource Planning is the management process of forecasting an organization’s current and future staffing needs. 3/60

4. Key questions a business must ask itself HR PLANNING Strategic Objective Corporate Strategies Company-Wide Aligned with Corporate Strategy Departmental Generic Strategies Where do we want to be? How do we get there? Integrated Approach Long-Term Focus Organizational Tactical Strategies Tactical Objective Where are we now? How do we know we are there? Functions of Organizational Objectives Better Customer Service Control Ethical Objectives Specific Specific Measurable Measurable Motivate CSR Achievable Appraisal Achievable Appraisal Direct Realistic Realistic Time-Specific Time-Specific 4/60 This chapter deals with the second to fourth question.

5. Human Resource Planning • Elements of Workforce Planning • Long term focus • Aligned with Corporate Strategy • Company wide • Integrated Approach • Communication • Departmental • Organizational • Businesses seek to employ the right people to achieve its aims and objectives. 5/60

6. Human Resource Planning • Stages of Workforce Planning • Assessment of Current Workforce • Forecast of Future Requirements • Short and Long Term • Alignment with Corporate, Generic & Tactical Strategies • Consider External Factors • Gap Analysis • Recruitment/Downsize Planning Assess Recruit/ Downsize Forecast Gap Analysis 6/60

7. Human Resource Planning • Poor or no HR Planning can result in: • An inability to hire the right people at the right time • Poorly trained staff • Falls in motivation and the quality of output. • Increasing levels of absenteeism. • Higher levels of labor turnover • Increasing costs 7/60

8. The nature of business activity EXTERNAL INFLUENCES POPULATION TRENDS GOVERNMENT ECONOMIC CLIMATE WORLD AFFAIRS SOCIAL FACTORS PRODUCTION MARKETING RESOURCES GOODS AND/OR SERVICES LAND OUTPUT BUSINESS ACTIVITY LABOR FINANCE RESEARCH & DEVELOPMENT CAPITAL WASTE FUNCTIONS ENTERPRISE HUMAN RESOURCES ADMINISTRATION LEGISLATION AND REGULATION TECHNOLOGY COMPETITION CONSUMERS ENVIRONMENTAL FACTORS EXTERNAL INFLUENCES Businesses face challenges from both inside and outside their organization 8/60

9. Human Resource Planning • In order to fight external influences and internal challenges, Labor is important to an organization because they add value to its output by: • Increasing productivity, • Improving quality, • Producing new ideas and • Better customer service • A thousand workers, a thousand plans. ~ Chinese proverb Photo: http://hrappliedsolutions.com/hr03.jpg 9/60

10. Supply of HR and Demographic Changes Q: What is demography? Demographic changes can affect the supply of HR within a country. A: It is the statistical study of population characteristics. Domestic Mobility of Labor Legal Political Educational Relocation Costs Ability Businesses need to understand these demographic changes Women Physical (Geographical) Net Birth Rate Unemployment Net Migration Rate Flexibility of the Workforce Retirement Age 10/60

11. International Mobility of Labor Q: What affects the supply of HR from abroad? A: The following are factors affecting international mobility of labor. Educational Factors Affecting International Mobility of Labor Language Immigration Barriers Cultural Differences Fear of the Unknown 11/60

12. Occupational Mobility of Labor Experience Acquired Attributes Education Training Qualifications Skills Race Factors Affecting Occupational Mobility of Labor Age Gender Religion 12/60

13. Anticipation of Staffing Needs (Current & Future) Population Historical Data & Trends Demographic Changes Sales & Income Levels Anticipation of Staffing Needs – What do firms look for? Technological Changes Labor Turnover Rates > NOTE: An organization’s objectives and/or strategies may change according to changes in one or more of these factors. Changes in Staffing Needs 13/60

14. Supply of HR and Demographic Changes Factors affecting the supply of HR to an organization. Cost and Availability of Transportation Internal Workforce Businesses need to understand these factors Rate of Unemployment Cost of Living Competition 14/60

15. Supply of HR and Demographic Changes Advances in medical science and healthier living has increased the life expectancy of human beings. THIS HAS CAUSED A MAJOR DEMOGRAPHIC CHANGE Change In Employment Patterns Increased Dependent Population Effects of an ageing population Reduced Labor Mobility Consumption Pattern Changes 15/60

16. Ageing Population Demographics by Category 16/60

17. Supply of HR and Demographic Changes How Demographic Changes Can Affect Labor Labor Supply Labor Productivity Labor Demand 17/60

18. Level of Demand Derived Demand Historical Data Natural Wastage Capital Intensity Firm must consider level of demand. Level of Demand depends on … Work Study Flexibility & Workload NOTE: An organization’s objectives and/or strategies may change according to changes in one or more of these factors. This is especially true for organizations that are labor intensive (e.g. factories & restaurants). > Changes in Staffing Needs 18/60

19. DOWNSIZING CONSIDERATIONS • Redundancies • Voluntary • Involuntary • Restructuring • Redeploying redundant workers to other departments and/or locations (e.g. other cities/countries). Some training may be involved. • Job Share (Planned Ahead?) • Part time (Trained/Untrained) • Contractors (Outsourcing) 19/60

20. Workforce Planning(Human Resource Planning) • Can be short term or long term • Short term deals with the current demands, i.e. covering shifts for maternity, retirees, training & etc. • Long term looks at HR needs of the future, i.e. training employees months/years before. 20/60

21. Job Analysis HR Planning requires a lot of time and money but it is worth it in the long term. To do this, HR Managers will have to do a Job Analysis. Job Analysis Entails … Skills & Training Required Two important documents will be created: • Job Description • Person Specification Qualifications & Personal Qualities Rewards Needed to Recruit & Retain 21/60

22. Why Do People Leave Their Jobs? Challenge Job Security Pride or Prestige Location Why do people leave their jobs? Money $$$ Advancement Natural Wastage occurs when a person leaves his job voluntarily,but the position is not filled. How do we retain staff? SO, • Fair Compensation & Benefits • Good Working Environment • Training & Skills Upgrading • Better Pay $$$? > Many organizations like Wendy’s and Burger King have high labor turnover rates. Q: Why do people leave their jobs? 22/60 A: CLAMPS!

23. 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 (1st Edition) or Pg. 153 (2nd Edition). 23/60

24. Recruitment Steps • Job Analysis • Confirm Job Description • Person Specification • Recruitment channel(s) • Internal • External • Local/Global • Media Options • Screen Applications and shortlist suitable candidates • Confirm interview and selection procedure • Interview (single, group, multiple, etc.) • Reference review • Psychometric tests • Assessment Center • Offer the job to the best candidate • Sign the contract of employment • Carry out induction of new recruit 24/60

25. Job Description • Job Title • Purpose • Department • Duties • Location • Working Conditions • Benefits 25/60

26. Person Specification • Education • Experience • Knowledge • Skills • Personality • Physical 26/60

27. Recruitment and Selection • Once the job analysis has been performed, several things will happen: • The HR manager will the following decision: • Internal or External Recruitment? • If External Recruitment is selected, the following decisions will be: • Local or Global Recruitment • Media Options (TV, Newspaper, Magazine, Job Fairs, Internet and etc.) • A job advertisement will be produced; including: • 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://www.jobstreet.com.sg/jobs/2012/9/default/20/3216087.htm?fr=L&utm_source=others&utm_medium=linaalerts&utm_campaign=150 • Also see Box 2.1c for a list of skills sought by employers. 27/60

28. Recruitment and Selection • Once the job advertisement has been finalized, what is the next step? • ADVERTISE the job according to the media options. • 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? 28/60

29. Recruitment and Selection • They should consider the following 5 TRAPS when designing an job advertisement. • 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 just necessary information. 29/60

30. 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 or Letter of Application • More common today to apply online, using online forms or just sending your CV via email. • A short list will be chosen. 30/60

31. 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 candidatesto interview. • 3 main methods of selecting the best candidates are: • Interview • Testing • References 31/60

32. The Selection Process • 1. Interviews: • Types of Interviews: • Telephone • A video-conferencing interview • A Face-to-Face interview in person • Ways interviews are conducted: • One on One • Panel • Multiple Interviews • Why conduct interviews? • 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) • Two commonly used checklist models used in interviews can be found on Box 2.1c (Pg. 177, 1st Edition; Pg. , 2nd Edition) • See pg. 178, Box 2.1d for a list of common interview questions. • What to do during interviews? • Review the Do’s and Don’ts for interviews on the same page. 32/60

33. The Selection Process • 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. 33/60

34. The Selection Process 34/60

35. The Selection Process Written statements about an applicant from a previous employer. 3. References Will usually confirm the strengths and weaknesses of an applicant. Serve as a security check. 35/60

36. The Selection Process • Now once a suitable candidate has been picked, they will offer the job to the candidate. • If the candidate decides to accept the job offer, the candidate will receive a contract to be signed. • A contract is a written statement of the terms and conditions of employment. See Box 2.1f for more details on Pg. 179 for the 1st Edition or Box 2.1e on Pg. 157 for the 2nd Edition. • An finally, induction; the new staff receive training for their new role. 36/60

37. Internal Recruitment Cost Effective Less Down Time Motivational Advantages of Internal Recruitment Less Risk Disadvantages of Internal Recruitment Time Consuming Internal Politics “Deadwood” Few Applicants 37/60

38. External Recruitment Newspaper Ads Direct Contacts Specialist Trade Publications University Visits Methods of External Recruitment Headhunting Internet Ads Job Centers Commercial Employment Agencies 38/60

39. Appraisals Assess Training Needs Assess & Record Performance Set New Goals • Is a form of assessment • What does it assess? • An employee’s performance. • Usually carried out on an annual basis. NOTE: HL Candidates must be able to examine how appraisal enables a firm to achieve workforce planning targets. Reasons for Appraisals Aid In Assessing Suitability For Promotion Aid Professional Development For Reflection 39/60

40. Appraisals Confidential Feedback Time Consuming Regular Monitoring Is Difficult Appraisals Linked To Pay To Praise Staff Objectively Disadvantages of Appraisals Is A Daunting Experience Provide Constructive Criticism Advantages of Appraisals Hurt Peoples’ Feelings & Relationships Appraisers May Lack Experience Staff May Get Offended By Comments Feedback From Staff Used To Set Targets 40/60

41. Appraisals Peer Appraisal (Appraisal By Colleagues Of Same Level) Upwards Appraisal (Appraiser Appraises A Senior) Self Appraisal (You Appraise Yourself) Methods of Appraisals Essay Appraisal: Write About Strengths & Weaknesses MBO (Management By Objectives) Assessing According To Your Objectives 360 Degree Appraisal (Collect Opinions From People You Work With Rating System (Rate Specifics Of The Job) 41/60

42. 360°Appraisals Customers • A method of appraisal to provide a more complete assessment of performance. • Feedback from ALL the employees’ key contacts (e.g. Customers). • Usually obtained via a questionnaire. • Might not be appropriate for all organizations. • The sources must be considered when reviewing the feedback. Suppliers Self Employee SeniorManagement Subordinates Peers 42/60

43. Appraisals Use Employee’s Past Year’s Records And Reports Employee Counter-signs • The performance appraisal includes the following steps: Appraisal Meeting Appraiser Signs Final Report Appraiser Completes Written Report 43/60

44. Appraisals Issue Advisory Letter To Employee DismissEmployee If No Improvement • If an appraisee has an overall rating below “moderate”, the following actions can be taken: Closely Monitor Employee’s Performance Offer Counseling Discuss Consequences 44/60

45. Training • What is training? • Training is 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? • Examples are: IT Consultant, Political Analyst, medical practitioners & etc. • The objectives of training: • Develop multi-skilled workers • Develop knowledgeable & committed workforce. • Ensure that there is broad range of skills available to the organization for both current and future needs. • Improve quality of work • New employees reach level of work of experienced employees. • => High quality of products & services • Enhance efficiency • Adapt to change • Facilitate career and personal development 45/60

46. Let’s recap: Trainingis the process of instructing staff on performing the tasks of their current job. Training • Development is the process of enabling an employee realize their full potential. • HENCE, • Investment in T&D (Training & Development) is one of the company’s most valuable asset. 46/60

47. Training In order to develop a flexible workforce(i.e. multi-skilled workforce), training and development are crucial. • Creating workforce flexibility refers to the ability of workers to multitask. • The benefits of Training & Development are: • Better Skilled and More Flexible Workforce • Improved Competency Reduces Wastage & Reworking • Higher Morale • Good Reputation for Training & Development of Staff • Better Levels of Customer Service • Successful Training & Development Means Employees Are Better Able To Cope With Organizational Change • Firm Will Be Financially Successful • The limitations: • Can be costly • Loss of output • No guarantee that training will solve business problems • The Ultimate Question: • Do the benefits outweigh costs & limitations? If it does, then it is financially justified for the company to invest in the training programme for the employee. 47/60

48. Training • What is the impact of no training? • Higher recruitment costs • Low productivity • Low moral • Safety issues • What will ultimately happen if this situation continues? 48/60

49. Methods of Training Induction On the Job Off the Job Mentoring 49/60

50. Induction Training Meet Key Personnel Mentor Is introduced • Induction training: is aimed at introducing new employees to the organization. Look at Company policies Tour The Premises Learn About Job role 50/60