1. Unit 16 Human Resource Management in Business Miss Haron
P1: Describe the internal and external factors to consider when planning the Human resource requirements of an organisation.

2. Human resource planning involves looking at the current workforce skills and motivation techniques and comparing them with what is going to be needed in the future.
Today, we will be looking at internal planning factors.

3. Internal factors
Internal planning factors are those that relate to what is already happening inside the business.
This includes how the organisation is changing to cope with new methods of working or new demands made on it, such as new introduction of technology or new products/services.
It is also a way of considering the new skills that will be needed for the future.

4. Organisational needs
The demand for products and services will affect the number of employees needed in certain roles.
An organisation may look for different ways to increase business. This could be by:
Considering new markets by targeting different countries or target groups. For example; Tesco opening stores in china and Coca cola producing fruitshoot for the younger market.
Changing their distribution channels. For example Dell changing from direct selling to selling in PC World
Technological change

5. Skills requirements
As the nature and type of work changes within an organisation, so do the skills requirements.
More businesses are changing from being labour intensive (business using a lot of people in the production process) to capital intensive.
For example; Car manufacturers are using more and more machinery in their production process and less employees. Therefore, they are cutting back on employees and training the rest with skills needed to operate machines.

6. Power point presentation - Group work (15 mins)
Consider one of the following businesses:
The Warren school, Tesco’s, Ryanair, Apple and explain how their human resource planning has changed over the years due to internal factors.
Consider how the organisation is changing to cope with new methods of working or new demands made on it, such as new introduction of technology or new products/services.
Are there any likely future changes which will affect the skills of their existing employees?

7. Workforce profiles helps a business to view and monitor the types of employees working for the business.
Profiles usually include details such as age, gender, ethnicity and ability
How is this helpful for Thorpe Parks human resource planning?

8. External Planning factors
External planning factors are those that influence the business from outside its direct control. Some examples are:
Supply of labour
Labour costs
Workforce skills
Government policy
Labour market competition
Changing nature of work

9. Supply of labour Consider local, national and international scale.
Local: for example; if manufacturing companies shifted abroad and were replaced by service industries this will cause labour shortages with right skills and training
National: how the levels of unemployment affects business and supply of labour.
International: expansion of EU meant that more and more people are moving to the UK to find work.

10. Labour costs
Labour costs depend on whether the business is labour or capital intensive.
For example; in Schools, around 70% of costs are labour costs
and in capital intensive organisations, labour costs can be as low as 20%
Labour costs also depend on the national minimum wage and this will have a big impact on the way businesses plan their human resources

11. Workforce skills
Businesses can find out the types of skills that are available in their local area/region by accessing published national statistics.
Why?

12. Research Tasks
Using online statistics identify the UK employment and unemployment levels in the last 8-10 years. Explain what is happening to the supply of labour and identify the likely effects on businesses such as: Tesco’s
Using online websites identify the changes in employment/supply of labour in the EU. What is happening to the employment levels? What does this mean for UK Businesses in the travel industry?
Using the UK national statistics website ( look at what is happening in your neighbourhood by doing some research using your postcode. Click the “regional statistics” tab and then follow the “Neighbourhood statistics” link your part of the UK. This will give you information about employment levels and the types of jobs people have in your area. You can also look at national statistics, including the number of hours worked on average and the type of employment for the nation as a whole.

13. Government policy
When government introduces new policies for education, work and training it has implications for the number of employees available, as well as their ability and skills level.

14. Labour market competition
As the industry gets bigger, a lack of suitable employees lead to more competition from businesses.
For example:
lack of maths, science and English teachers
lack of nurses leads to overseas employment and more attractive benefits.

15. 6. Changing nature of work

16. Forecasting Employee Demand
How many workers will we need in the future?
Historic Data
Worker Productivity
Work Study
Business & Management Expertise
Calculating Staff Loss

17. Simpler Internal impacts on HR
Factors
Promotion
Staff Development & Training
Staff Loss & Retirement
Flexibility
Legal Factors

18. Simpler External impacts on HR
Factors
Housing
Transport
Competition
Unemployment
Government Training/Subsidies
Demographics
Legislation

19. Plenary Find two examples for each Internal planning factor
Organisational needs
Skills requirement
Find two examples for each External planning factor
Supply of labour
Labour costs
Workforce skills
Government policy
Labour market competition
Changing nature of work

20. P1 Assignment prep task
In your own words, describe the internal & external factors to be considered when planning the HR needs of an organisation.
Give an example for each factor – you can use the examples you found for Lesson 1 Homework
Use your notes, this PowerPoint and the textbook to help.
Internal planning factors
Organisational needs
Skills requirement
External planning factor
Supply of labour
Labour costs
Workforce skills
Government policy
Labour market competition
Changing nature of work

21. Assignment 1 – P1, P2, M1