2.1 Human Resources Chapter 10

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.

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

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

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 ?

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

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.

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

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.

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”

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.

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

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.

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)

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

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

HL – Advantages to Part-time/Temp Staff CompanyWorker 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

HL – Disadvantages to Part-time/Temp Staff CompanyWorker 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

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

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

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