1. International HRM: 2015 Block 2: Human Resource Planning: Macro Level - Labour market trends - Labour markets & HR strategy - Flexibilisation of employment - Externalisation 1

2. Also known as Workforce Intelligence Planning 2

3. Economic and competitive context of HRP 2010s – markets for products and services: globalised sharp and frequent variations intensely competitive shorter product life-cycles 2010s – public sector services 30% funding cuts: Doing more & better with less: “3 Es” Implications for firms / public sector organisations: Flexible response to changes in demand Implications for firms’ / organisations’ staffing decreasing the size of their internal labour markets increasing their use of external labour markets To: Reduce costs Increase responsiveness 3

4. Sources of labour and HRM approaches  Organisations:  Cultivate their internal labour markets  or  Draw upon external labour markets … Depending on: 1)The uniqueness of the labour required 2)The strategic value of the labour to the organisation’s core competence 4

5. 5 Modelling Workforce sources and HRM approaches

6. Labour markets & HR approaches The best-fit / alignment approach to Strategic HRM, suggests that the four contrasting types of workforce require contrasting approaches to HRM: 1.The management of those groups who are unique but of low strategic value will be:  Relational – collaborative 2.The management of those groups who are both unique and of high strategic value will be:  Relational – commitment based 3.The management of those groups who are of high strategic value but not particularly unique will be:  Transactional – productivity based 4.The management of those groups who are both of low uniqueness and of low strategic value will be:  Transactional – compliance based 6

7. Labour markets and knowledge flows  The contemporary organisation relies for sustained competitive advantage or best value public service delivery through building human capital, that is through managing knowledge flows:  Within the organisation  Into the organisation from the external, idiosyncratic, labour market  Thus, the organisation needs:  to nurture its relationship with “Alliance partners” to draw their idiosyncratic knowledge into the organisation  to ensure high retention of “Knowledge employees” to ensure that human capital is built and maintained and not lost, through employee-turnover, from the business 7

8. Types of workforce  In the case of a car manufacturer such as : 1)Knowledge employees  Examples? 2)Alliance partners  Examples? 3)Job based employees  Examples? 4)Contract workers  Examples? 5)Identify 3 advantages and 3 disadvantages of BMW directly employing staff? 8

9. Employee-less “organisation” Virtual or Network “organisations” the “Beneton model” Such organisations – have almost no direct employees based on networks bringing individuals and groups together for specific projects Commercial contracts replace employment contracts ① Identify the advantages and disadvantages of this organisational form ② Overall what factors influence an organisation’s / unit’s mix of core and peripheral employees and peripheral workers? 9

10. Labour market trend: externalisation Firms no longer employ their own staff to perform jobs that are not “core” functions for the business.... For example cleaning, catering, routine administration These services are bought in from external, specialist companies Manufacturing firms off-shore work or outsource work design work in home country production / service delivery work in developing country with own staff (off-shoring) production / service delivery work in developing country with 3 rd party staff (outsourcing) Chinese manufacturers are themselves outsourcing to firms in lower wage economies such as Vietnam: http://video.ft.com/v/1496733752001/Vietnamese-manufacturing 10

11. Labour market trend: externalisation The “dark-side” of outsourced production are becoming clear &here’s the case of Apple’s supplier, Foxconn: http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human- costs-for-workers-in-china.html?_r=1&pagewanted=all http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human- costs-for-workers-in-china.html?_r=1&pagewanted=all 1.What are the advantages of global supply-chains for consumers and for workers in economically-developing countries? 2.What are the business problems and the HRM problems with global- supply chains? 3.What role should International HRM departments have in ameliorating the risks and problems in global supply-chains? 4.Specifically, list 7-8 metrics which International HRM departments should use in auditing global suppliers? Explain why these metrics are important for workers in economically-developing countries, for consumers and for shareholders. 11

12. Labour market trend: externalisation Service sector firms off-shore activities Offshoring is no longer just about minimising rent and labour costs: http://video.ft.com/v/1467137390001/Rich-pickings-for-outsourcers http://video.ft.com/v/1467137390001/Rich-pickings-for-outsourcers What are the advantages / disadvantages of off-shoring? 12

13. Workforce agility Core employees working standard working weeks and years... now account for less than 50% of all employees in EU These core employees in the internal labour market are now expected to be: Functionally and Temporarily flexible Core employees: Well trained in firm specific skills... flexible, “can-do” Highly productive Key behaviours: problem solvers, creatively developing the business Career prospects Relatively well paid – pay dependent on performance Availability – annualised hours assumptions 13

14. Drivers for agility Flexible working arrangements were introduced primarily as productivity or efficiency measures, although it is increasingly recognised that these strategies have implications for Work-Life Balance … family friendly policies Of particular relevance to WLB are practices such as: Flexi-time (40% of UK organisations … low compared to EU average) Home working (30% of UK organisations for selected jobs) However, “flexible working arrangement without cultural change have limited impact” … are flexible workers really valued in cultures of “presenteeism” There is considerable debate regarding the extent to which work and life should be regarded as separate spheres: what do you think? 14

15. Work-life balance responses 15 It is argued that “Generation Y” (1990s born) desire a better WLB than their predecessors. What are your own preferences?