Presentation is loading. Please wait.

Presentation is loading. Please wait.

IB Business & Management

Similar presentations

Presentation on theme: "IB Business & Management"— Presentation transcript:

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

2 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?

3 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:

4 2b. An Overview Historical
Technological changes Demographic Labour Turnover rates Sales and income levels Historical Data and trends Looking For… So, what do firms look at when trying to anticipate their organization’s current and future staffing needs?

5 3a. Supply of HR and Demographic Changes
Mobility of labour Women unemployment Flexibility Of the workforce Retirement Age Net Migration Rate Birth Changes in demographics 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…

6 3b. Supply of HR and Demographic Changes
Rate of unemployment Cost And Availability Of transportation Cost of Living Competition Internal workforce Supply of HR Also, the supply of human resources to a firm will depend on…

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

8 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

9 Workforce Planning Firm must consider level of demand
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

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

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

12 IB Business & Management
Unit 2.1 Lesson 2: Recruitment & Selection Page

13 1. Focus Questions 2. What is the application process?
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?

14 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.

15 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: Also see Box 2.1c for a list of skills sought by employers.

16 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?

17 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.

18 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 .

19 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.

20 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.

21 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.

22 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.

23 IB Business & Management
Unit 2.1 Lesson 3: Internal and External Recruitment Page

24 1. Focus Questions 2. What are some methods of appraisal?
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?

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

26 3a. External Recruitment
Direct Contacts University Visits Headhunting Job Centres Commercial Employment Agencies Internet Ads Specialist Trade Publications Newspaper Methods Of hiring outside a firm

27 4a. Appraisals Is a form of assessment. What does it assess? & Record
Aid in Assessing Suitability For promotion For reflection Set new goals Aid Professional development Assess Training needs & Record performance Reasons Appraisals Is a form of assessment. What does it assess? An employee’s performance. Usually carried out on an annual basis.

28 4b. Appraisals Feedback From staff Provide Constructive criticism
To praise Staff objectively Used to Set targets Advantages Confidential feedback Appraisals Linked To pay Appraisers Lack experience Staff May get Offended By comments Hurt peoples Feelings And relationships Is a Daunting Regular Monitoring Is difficult Time Consuming Disadvantages

29 4c. Appraisals Methods Of Appraisals Upwards Appraisal (employee
Appraises A senior) Essay (write about Strengths And Weaknesses) 360 degree (collect Opinions From people You work With) Rating System (rate specifics About the Job) MBO Management by Objectives (assessing Your objectives) Peer (same level Of employee Appraisal) Self (you Appraise Yourself)

30 4d. Appraisals Record And Report Appraisal Meeting Written Sign Final Counter- sign The performance appraisal will include the following steps:

31 4d. Appraisals Issue an Advisory letter Offer counselling Discuss consequences Monitor the performance No Improvement- Dismiss employee If an appraisee has an overall rating below “moderate”, the following actions can be taken:

32 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

33 5b. Training The limitations:
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

34 5c. Induction Training Meet Key Personnel Tour The Premises Learn About Job role Look at Company policies Mentor Is introduced Induction training: is aimed at introducing new employees to the organization.

35 5d. Induction Training Morale is boosted Settle in quicker Helped to
Understand Corporate culture Create Good Working habits Advantages Information overload Key Personnel Must be free Planning is Time consuming Disadvantages

36 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

37 5f. On-the-job Training Convenient location Establish Work relations
Fewer Disruptions Of daily operations Training is relevant cheap Advantages Trainers Will be taken Away from Their job May lack experience Can pickup Bad Working habits Disadvantages

38 5g. Off-the-job Training
Networking No distractions Wider Range of training Experts Give Advantages Employees May leave After gaining training Skills and Knowledge May not Be useful Loss Of output Very expensive Disadvantages

39 6a. Dismissal & Redundancy
Employee contracts can be terminated in several ways: 1. Dismissal 2. Redundancy 3. Retirement 4. Resignation

40 6b. Dismissal & Redundancy
Legal requirements Gross misconduct incompetence Dismissal is Fair when… 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.

41 6c. Dismissal & 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?

42 7a. Changing Employment Patterns and Practices
Flexitime Part-time employment Portfolio Working Home working Teleworking Flexible Work Structures Ageing Population Employment sector Changes In Patterns Employment patterns change overtime. Here are a list of these trends.

Download ppt "IB Business & Management"

Similar presentations

Ads by Google