1. 6.3.2 M AKING HUMAN RESOURCE DECISIONS : IMPROVING ORGANISATIONAL DESIGN AND MANAGING THE HUMAN RESOURCE FLOW AQA Business 6 D ECISION MAKING TO IMPROVE HUMAN RESOURCE PERFORMANCE What do you think is meant by the term human resource flow? How do staff flow in to a business? How do they flow within the business? How do staff flow out of a business?

2. 6.3.2 M AKING HUMAN RESOURCE DECISIONS : IMPROVING ORGANISATIONAL DESIGN AND MANAGING THE HUMAN RESOURCE FLOW  In this topic you will learn about  How managing the human resource flow helps meet human resource objectives Can you remember what the HR objectives are?

3. H UMAN RESOURCE FLOW  Human resource flow is the movement of employees into the business, around the business and out of the business  This includes:  Inflow e.g. recruitment and selection  Internal flow e.g. training and redeployment  Outflow e.g. resignations and redundancies

4. H UMAN RESOURCE FLOW HR flow HiredFiredTransferredPromotedResignsRedundantRedeployedRetiredTerminated Decisions need to be made to match the needs of the business and the employee. Decisions need to be made to help meet the human resource objectives. Human resource flow includes: Human resource plan Recruitment Training Redeployment Redundancy

5. H UMAN RESOURCE PLAN  The process of assessing current and future staffing needs  Allows management to be proactive and plan for any changes in the future size or nature of the workforce Current workforce: Size and skills Future workforce: Size and skills How? What steps can a business take in preparation? Where are we now? Where do we want to be in the future? How are we going to get there?

6. H UMAN RESOURCE P LANS  A detailed plan of the strategies that the HR department will undertake to ensure that future workforce needs are met  Future workforce needs may be more or less than the current provision  Strategies may include:  Training  Redeployment  Internal promotion  External recruitment  Natural wastage  Relocation  Restructuring

7. H UMAN RESOURCE PLANS Step 1 Analysing the current situation Internal staff auditLabour market trends Skills audit Existing skills Under utilisation Personnel performance indicators Nature of workforce Age Ambitions Life stage Number and skills of entrants Qualifications Skills shortages Changing demographics Net migration Ageing population EU directives and UK legislation Working time directive Age discrimination

8. H UMAN RESOURCE PLANS Step 2 Predicting likely future changes Impact of internal and external audits and trends Are existing staff likely to leave? Who will be available in the market? Review of corporate and functional objectives What staff will be needed to achieve these? Will staff cuts help achieve these? Analysis of future requirements Detailed plan of what staff will be needed in the future How many? What skills? Where?

9. H UMAN RESOURCE PLANS Step 3 What steps will be taken? Having gone through the process of working out what will be needed in the future the business can now decide on the strategies needed to make the transition as smooth as possible What strategies should be taken: to ensure existing workforce meet future needs? to ensure any additional requirements can be fulfilled?

10. R ECRUITMENT  Recruitment is the steps undertaken by a business to identify a vacancy and attract suitable candidates; this can be internal or external  Selection is the actions taken by a business to help identify the best candidate for a job  The recruitment and selection process involves:  Identifying the vacancy  Job description – a recruitment document that outlines the tasks and responsibilities of the job  Person specification a recruitment document that outlines the characteristics of the person required to do the job e.g. qualifications and experience  Advertising the vacancy  Receiving applications  Short listing and References  Assessing candidates  Offering the position

11. I NTERNAL R ECRUITMENT Internal recruitment occurs when candidates for a position are recruited from within the organisation. Benefits include:Disadvantages include: Lower recruitment costs Improved promotion prospects Known abilities of candidates Quicker process Shorter induction period Reduces talent available Limits the number of applicants Can cause friction between internal candidates To what extent should internal candidates be considered, against external candidates, for all leadership roles?

12. E XTERNAL R ECRUITMENT External recruitment occurs when candidates for a position are recruited from outside of the organisation. Benefits include:Disadvantages include: Increases the talent available Increases the number of applicants Can provide new sources of ideas to the company Higher recruitment costs May upset internal candidates that have been overlooked Not able to see candidates at work over a period of time Sometimes added incentives are needed to attract candidates. Can you think of any other examples where a skills shortage leads to a golden hello?

13. S ELECTING THE BEST E MPLOYEES Methods of selection include:  Interviews  Assessment centres:  Multiple tasks, exercises and meetings held over a period of time, often 2 days, where candidates are measured against a set of competencies  Tests might include:  Psychometric testing involves a mixture of the following: Aptitude – measures the ability to develop skills and acquire knowledge Attainment – measuring levels of understanding e.g. maths Personality – measuring aspects of a candidate’s behaviour

14. T RAINING  Training is the process of equipping employees with the skills and knowledge necessary to carry out their job effectively  Training can fulfil different roles within a human resource flow:  Incentivise applicants to apply for a job  Lead to internal promotions influencing the internal flow  Result in trained employees seeking alternative jobs elsewhere  Methods of training include:  On-the–job where an employee learns in the workplace from experienced employees  Off-the–job which is any form of education that takes place outside of the workplace  Induction which is introductory training for employees new to an organisation Recap. What is the distinction between training and talent development?

15. I N PAIRS  Complete the table below to show the possible advantages and disadvantages of on-the-job and off-the-job training AdvantagesDisadvantages On-the-job Off-the-job Should teacher training be provided on-the- job or off-the- job?

16. R EDEPLOYMENT  Redeployment is the process of offering employees whose jobs are at risk the opportunity to move to alternative suitable positions within an organisation  Helps keep talented employees within the business  Reduces negative publicity in response to change  Lowers redundancy costs  Motivates existing employees who feel the business cares for their well being  Reduces conflict with trade unions  However this may not always be an option How does redeployment affect the perceptions of key stakeholders including community, customers and employees?

17. R EDUNDANCY  Redundancy is a form of dismissal when an employee’s contract of employment is terminated because the job no longer exists  This may occur as a result of a change in the businesses needs including:  Closure  Restructuring  Relocation  New technology  Rationalisation What are the rights of an employee facing redundancy? Make up a scenario for a person being made redundant. How old are they? How long have they worked for the business? What is their rate of pay? How much redundancy payment would they be entitled to?

18. T AKE IT IN TURNS TO TAKE ONE TERM FROM THE LEFT HAND COLUMN AND ONE FROM THE RIGHT AND EXPLAIN A LINK BETWEEN THE TWO CHOSEN TERMS.  Human resource objectives:  Employee engagement and involvement  Talent development  Training  Diversity  Alignment of values  Number, skills and location of employees  Human resource flow:  Human resource plan  Recruitment  Training  Redeployment  Redundancy

19. 6.3.2 M AKING HUMAN RESOURCE DECISIONS : IMPROVING ORGANISATIONAL DESIGN AND MANAGING THE HUMAN RESOURCE FLOW  In this topic you have learnt about  How managing the human resource flow helps meet human resource objectives