2.1 Human Resources

Chapter 10

Human Resource Management The strategic approach to the effective

management of an organization’s workers so that they help the business gain a competitive edge.

Human Resource Planning Get the right number of people With the right skills With the right experience With the right competencies In the right jobs At the right time At the right cost

Demographics Affect Labor Supply Changing demographics can affect businesses: Birth rate Migration rate Retirement age Unemployment/Underemployment Mobility of workers Flexibility of workers Education level of workers Women working/returning to work Aging population

Labor Mobility Occupational Mobility

Workers are willing and able to move to different jobs requiring different skills

Geographical MobilityWorkers are willing and able to move to new regionsto take new jobs

High levels of skill and home ownership tend to make workers IMMOBILE. Why?

Workforce Planning Forecasting the NUMBER of staff required

Change in demand for product Staff productivity Business objectives Economic and business outlook Changes in employment law Technological changes Historical trends Changes in employee skills available for hire Changing tastes in fashion

Workforce Planning Forecasting the SKILLS of staff required

Keeping pace with technologyProduction methods, complexity of machinery,computer applications.

Flexible or multi-skilled staffRecruit and train workers with more than oneskill to be applied in many ways.

Recruitment What is the nature of the job vacancy?

Create a job description What skills are needed of the applicant?

Create a person specification Advertise

Include the job description and personspecification

Short list of applicantsReview CV’s (curriculum vitae – type of resume)

Conduct Interviews

Training Induction Training

Given to all new employees (introduces them to company policies and procedures)

On-the-Job TrainingOn-site job instruction. New employee may be paired with an experienced employee

Off-the-Job TrainingTraining that occurs off of the jobsite. Includes college courses, training centers, or from a vendor.

Training & Poaching Training can be expensive. Why?

NOT training can be expensive. Why?

Well-trained staff can be recruited by other firms and leave for better paying jobs. This is called “POACHING”

Appraisal of Staff Usually completed annually – 1 X per year An appraisal form is used. Why? Employee and Manager discuss employee

performance. Employee and manager establish career

plans and skills to develop the employee. MBO – Management by Objective

Developing skills in and with employee agreement that furthers the objectives of the company.

Dismissal Employee is unable to perform job duties

to the standard required by the company Employee may have broken a condition of

employment (example: failed random drug test)

Unfair dismissal may lead to lawsuits HR must assist employee with

improvement efforts before dismissal can occur to avoid lawsuits for unfair dismissal

Retrenchment (Downsizing) A company policy of reducing

expenditures or redirecting focus to particular market, product, or service to become more financially secure.

This usually involves layoffs of employeesand restructuring expenses.

Redundancy (Layoff) A workers job is no longer required by the

company. A replacement employee will not be hired. Causes of redundancy:

Job no longer required by the company Budget cuts Reduction in workforce

(RIF – Reduction in Force)

HL - Employment Contracts Legally binding documents that outline the

employer & employee responsibilities during the employment

Includes: Working hours Pay rate Vacation, sick, personal time Number days notice

HL – Charles HandyPortfolio Working Portfolio Working: a work pattern that

involves a person working several employments simultaneously.

Reasons for change: Competitiveness in the global workplace Cutting overhead labor costs Greater opportunity to outsource Changing social demographics allowing work-

from-home

HL – Advantages to Part-time/Temp Staff

Company Worker

Staff can work busy periods or not work slow periods

Ideal for some workers: students, parents with young children, elderly

More staff available when needed

Can combine more than one job with different companies

Staff can be “tried” before offering full-time contract

Telecommuting offers flexibility

Staff can telecommute

HL – Disadvantages to Part-time/Temp Staff

Company Worker

More staff to “manage” Earn less than full-time workers

Effective communication is more difficult

May be paid lower than full-time workers

Motivation is more difficult

Lower job security

Telecommuting can produce lower productivity in workers

Less social contact when telecommuting

HL – Core VS Peripheral Workers

CORE

Full-time

Permanent

Peripheral

Temporary

Part-time

Self-employed

HL – Handy’s Shamrock

Core Workers

Strategists, knowledge, and core processes

Flexible Workers

Part-timers, contractors, consultants

Outsourced Work

IT or MIS, marketing, payroll, training, franchising

HL – Types of Workers Temporary employment contract

Contract that lasts for a FIXED period of time Part-time employment contract

Less hours per work than full time (usually less than 40 hours per week)

Flexi-Time contract Allows workers to be called on at any time (busy times

of day or seasons) Outsourcing

Using an outside agency to perform a business function (payroll, marketing)

Teleworking Working at home and keeping in touch with the office

via electronic methods