By the end of the chapter you should be able to … Define human resource (workforce) planning Explain the concept of labor turnover Identify internal & external factors that influence HR planning Outline common steps in the recruitment process Explore and define types of training and appraisal Outline steps in the process of dismissal and layoff Explore changing work patterns and practices Explain outsourcing, off-shoring & re-shoring as HR practices Evaluate how innovation, ethics and cultural differences impact HR practices and strategies

Workforce Planning All businesses depend on having effective workers HR planning is a continuous process for a business Employees must be properly trained and suited for a job Future employment needs must be estimated Labor turnover The movement of employees into and out of a business in a year’s time Labor turnover = number of staff leaving over a year divided by the average number of staff employed in a year * 100

Labor turnover rate What does a high turnover rate mean? Suggests that a business has labor problems Suggests that workers are dissatisfied with the business Business must spend more time and money hiring new employees High turnover can affect motivation Economic conditions can impact turnover rates Some turnover can be good for a business A HR plan should seek to keep turnover at an acceptable level

External Factors that influence HR Planning Technological Change Government Regulations Ex – changes to health & safety; working hours, etc. Demographic change – aging population, etc. Social trends – role of women; single parent families State of the economy Changes in education Labor mobility

Internal Factors that influence HR Planning Changes in business organization Changes in labor relations If labor force chooses to unionize; Changes in business strategy Changes in business finance Business with limited resources may not be able to pay high wages or spend lots on recruiting

The HR (workforce) plan Recruitment Hiring the right person for the job Training Ensuring proper professional development occurs Appraisal Evaluating employees regularly Termination or dismissal How a business deals with employees leaving, OR being fired

The Recruitment Process Identification Job Description; Person Specification; Internal or External Recruitment Application Job Advertisement; Application/Resume; Internal hiring or agency hiring Selection Shortlisting; Testing; Interviews

Training – 2 nd HR function Benefits of training Improve quality of work; Lead to greater productivity; Motivate employees; Reduce labor turnover Forms of Training Induction – new employee training On-the-job – time off to attend workshops or training; today businesses realize the value of education Other Forms of Training Cognitive – helps employees develop thinking skills Behavior – helps develop interpersonal skills

Appraisal – 3 rd stage of HR Appraisal v. traditional “inspection” Inspection - managers review performance; make suggestions; communication only one way Appraisal – More discussion; two-way communication; less threatening Benefits of appraisal For an employee –motivating; instructive; helps an employee progress; leads to change in career direction For the business – check on performance; review new initiatives; record & document performance; motivating – formally recognizes good performance

Appraisal - continued Characteristics of good appraisal systems Not directly linked to pay or promotion Separate from disciplinary systems Require minimal paperwork Provide an honest exchange of views Methods of appraisal Formative – gives feedback at regular intervals Summative – measures performance with standards 360 degree – appraisal from mangers and co-workers Self-appraisal – individuals reflect on their own performance

Termination, dismissal, redundancy (layoff) – final stage Leaving a business occurs in 1 of 3 ways: Termination – when someone leaves employment Change of career; professional development; retirement; promotion, etc. Dismissal – employee is let go, or fired: Poor attendance; non-performance; insubordination, etc. Redundancy (layoff) – business no longer has work Drop in demand; changing market; recession; restructuring; automation; relocation, etc.

Layoff - continued When a layoff occurs, deciding which employees to keep can be difficult. Voluntary layoff – preferred option, less stress; employee may decide to look for a new job. Involuntary – May be governed by a union contract; seniority, etc.

Changes in work patterns, practices, preferences Factors changing the work environment Move to private sector employment; increased migration of employees; more females in workforce; more educational opportunities; increased urbanization = more stress; aging population Changes in work patterns = see tables and Jobs have changed as have work schedules – Increase in part-time & temporary work; flex-time; working from home; tele-working; casual Fridays, etc. Changes in work preferences – job share, etc.

Outsourcing and Offshoring HR costs are significant; so to cut costs: Outsourcing Subcontracting – lower production costs; save on wages and benefit costs; Off-shoring – outsourcing outside your home country. Significant cost savings – page 110

Impacts of innovation, ethics, cultural differences All these have an impact on the HR plan Innovation – usually come from people Ethical considerations – strong connection between HR planning and ethical behavior Cultural differences – significant effect on HR People are culturally diverse HR plans must take diversity into account Power Distance – developed by Geert Hofstede Research the principles!