TOPIC 2HUMAN RESOURCES
Human Resource Planning
“Sonny, when there is more than one of you in your organization, you are in the people business. You are not in the food business, a service industry, the widget business, the medical profession, or whatever other business you may think you are in - you are in the people business. You just remember that boy! “
Learning Objectives• Identify the constraints and opportunities presented by demographic
change• Discuss the significance of labour mobility• Analyse the workforce planning process• Evaluate strategies for developing future human resources• Discuss different methods of recruitment, training, appraisal and dismissal• Describe reasons for and consequences of changing work patterns and
practices• HL – Analyse the impact on business of legal employment rights• HL – Examine how recruitment, training and appraisal can help achieve
workforce planning targets• HL – Analyse the consequences of changing work patterns and practices
on business• HL – Apply Handy’s Shamrock organisation theory
So what exactly is HR?
• http://www.youtube.com/watch?v=m_QCk9NlLQI
Key terms• Human resource management – strategic
approach to the effective management of an organisations workers
• Human resource / workforce planning – analysing and forecasting the number of workers and skills of those workers required
What is Human Resource Management (HRM?)
• Using and developing people• within a business• to meet the objectives of the organization.
WHAT?WHERE?WHY?
What would happen if you had the wrong number / type of staff?
Why HRM has become more important?
• Most businesses now provide services rather than produce goods – people are the critical resource in the quality and customer service level
• Competitiveness requires a business to be efficient and productive – this is difficult unless the workforce is well motivated, has the right skills and is effectively organised
• The move towards fewer layers of management hierarchy (flatter organisational structures) has placed greater emphasis on delegation and communication
HR strategies
Sees people as an unwelcome cost
People are an input to get work done
Managers are the ‘thinkers’ – give
instructions to workers!
HardSees people as those
who can add value to the business.
A business needs to develop their employees skills, interests & abilities
Managers are facilitators – to coach & help staff to
do their work properly.
Soft
HR strategies
Treats employees simply as a resource of the
business.Strong link with
corporate business planning – what
resources do we need, how do we get them and how much will they cost
HardTreats employees as the most important resource
in the business and a source of competitive
advantageEmployees are treated as
individuals and their needs are planned
accordingly
Soft
Evaluation
• What are the benefits of having a ‘hard’ HRM strategy?
• Staff are well monitored• Costs are minimised,• Companies can increase / reduce output when
needed.• Greater centralisation / control by managers
Evaluation
• What are the benefits of having a ‘soft’ HRM strategy?
• High levels of employee participation, • Higher motivation • Greater commitment from staff, • Lower turnover, • Less absenteeism • Greater productivity!
Demographic Change• Potential supply of labour is affected by
demographic changeExample of demographic change
Opportunities Constraints
Natural population growth May be easier to recruit good staff
Increased birth rates may take years before they impact on the working population
Net migration (immigration compared with emigration)
May be easier to recruit good staff at lower rates of payHighly qualified staff might be recruited from other countries
Immigrants may need more training
Ageing population Often claimed that older staff are loyal and reliable
Older staff may be less flexible
Labour mobility
• Occupational mobility of labour – Extent to which workers are willing and able to move to different jobs requiring different skills
• Geographical mobility of labour – Extent to which workers are willing and able to move geographical region to take up new jobs
Labour mobility: How easily can you work in a different place?
Geographical mobility• Depends on where your family and friends live• Depends on the cost of relocation
– Cost of moving to Mexico from Australia = US$19,000 (Flights $2,000; Car $10,000; Luggage $2,000; Furniture and House $5,000)
• Language and cultural differences• Fear of the unknown
Labour mobility: How easily can you change career?
Occupational mobility• Skills of a worker: training, qualifications• Age: Younger people are more mobile• Specialisation: Very specialised people have
trouble complying with regulations in another country
• Discrimination: age, religion, gender, race…
• A high degree of geographical mobility – especially between rural and urban areas can lead to…
• High labour mobility can help achieve economic efficiency by…
