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.