2.1 Human Resources

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2.1 Human Resources

• Chapter 10

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Human Resource Management

• The strategic approach to the effective
  management of an organizations workers so that
  they help the business gain a competitive edge.

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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

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Demographics Affect Labor Supply

• Changing demographics can affect businesses
• Birth rate
• Migration rate
• Retirement age
• Unemployment
• Mobility of workers
• Flexibility of workers
• Education level of workers
• Women working/returning to work
• Aging population

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Labor Mobility

• Occupational MobilityWorkers are willing and
  able to move to different jobs requiring
  different skills
• Geographical MobilityWorkers are willing and
  able to move to new regionsto take new jobs
• High levels of skill and home ownership tend to
  make workers IMMOBILE. Why?

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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

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Workforce Planning

• Forecasting the SKILLS of staff required
• Keeping pace with technologyProduction methods,
  complexity of machinery,computer applications.
• Flexible or multi-skilled staffRecruit and train
  workers with more than oneskill to be applied in
  many ways.

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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 CVs (curriculum
  vitae type of resume)
• Conduct Interviews

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Training

• Induction TrainingGiven to all new employees
  (introduces them to company policies and
  procedures)
• On-the-Job TrainingOn-site job instruction. New
  employee may be paired with an experienced
  employee
• Off-the-Job TrainingTraining that occurs off of
  the jobsite. Includes college courses,
  training centers, or from a vendor.

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Training Poaching

• Training is 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

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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 ObjectiveDeveloping skills
  in and with employee agreement that furthers the
  objectives of the company.

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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

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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)

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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 employeesand
  restructuring expenses.