1. 2.1 Human Resources
Chapter 10

2. 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.

3. 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

4. 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

5. Labor Mobility
Occupational Mobility Workers are willing and able to move to different jobs requiring different skills
Geographical Mobility Workers are willing and able to move to new regions to take new jobs
High levels of skill and home ownership tend to make workers IMMOBILE. Why?

6. 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

7. Workforce Planning Forecasting the SKILLS of staff required
Keeping pace with technology Production methods, complexity of machinery, computer applications.
Flexible or multi-skilled staff Recruit and train workers with more than one skill to be applied in many ways.

8. 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 person specification
Short list of applicants Review CV’s (curriculum vitae – type of resume)
Conduct Interviews

9. Training
Induction Training Given to all new employees (introduces them to company policies and procedures)
On-the-Job Training On-site job instruction. New employee may be paired with an experienced employee
Off-the-Job Training Training that occurs off of the job site. Includes college courses, training centers, or from a vendor.

10. 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”

11. 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.

12. 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

13. 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 employees and restructuring expenses.

14. 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)

15. 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

16. HL – Charles Handy Portfolio 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

17. 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

18. 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

19. HL – Core VS Peripheral Workers
Temporary
Part-time
Self-employed
CORE
Full-time
Permanent

20. HL – Handy’s Shamrock Core Workers
Strategists, knowledge, and core processes
Outsourced Work
IT or MIS, marketing, payroll, training, franchising
Flexible Workers
Part-timers, contractors, consultants

21. 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