Resourcing

1
Part 2

• Resourcing

2
Employee Resourcing Can Often -
Slide 4.1

• Be a reactive activity without any link to
  organisational strategy
• Lack internal coherence
• Resourcing strategy should be proactive
  facilitating the future direction of the business
  and providing choices for managers

3
The Employee Resourcing Environment
Slide 4.2
The labour market or pool of available talent
that employers compete to recruit and retain
staff
4
Major Trends in the UK Labour Market
Slide 4.3

• Demographics
• Diversity
• Skills qualifications

5
Demographic Trends (1 of 2)
Slide 4.4

• 2003 UK population 59.25 million
• 2003 27.9 million UK population in work
• Overall population is increasing even though
  birth rate falling

6
Demographic Trends (2 of 2)
Slide 4.5

• The number of people who are economically active
  is increasing
• Over longer term the proportion of population
  that is of working age will shrink in comparison
  to total population

7
Demographics Implications for Employers
Slide 4.6

• Will become harder to recruit and retain the more
  talented younger workers
• State pension provision will become more
  difficult to source so people will look more at
  the organisational occupational pensions being
  provided

8
Diversity
Slide 4.7

• Increased female workforce participation has been
  one of the most significant social trends over
  recent decades
• Most recent Government figures indicate 84 men
  and 73 women are either in work or actively
  seeking work

9
Growth of Female Workforce Participation
Slide 4.8

• More women with young children have decided to
  work whilst men have taken more early retirement
• Growth of part time work

10
Mapping Diversity Trends
Slide 4.9

• In 1980 employment rate for women of working age
  59 - figure has risen steadily since then
• Gender gap in overall pay levels - womens
  average salary is 82 of mens salaries
• Early 1980s 4.5 of employees were from ethnic
  minorities - early 2000s 6.5 of employees are
  from ethnic minorities
• 1980 two thirds of workplaces employed no-one
  from ethnic minorities - now over half of
  workplaces employ an ethnic minority

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Diversity Challenges For HR Managers
Slide 4.10

• Taking into account needs of dual career
  families
• Compliance with discrimination laws
• Challenging and removing sexual and racial
  harassment in the workplace

12
Job Growth Areas In Recent Years
Slide 4.11

• These have been in
• Managerial and professional
  occupations
• Service industries

13
Declining Job Areas In Recent Years
Slide 4.12

• Manufacturing
• Agricultural sectors

14
Demands For Graduates
Slide 4.13

• Strong increase over the last twenty years for
  graduates
• Graduate unemployment much lower than rest of
  population

15
Skills Shortages
Slide 4.14

• There are insufficient people with high level IT
  and scientific qualifications entering the labour
  market
• There are too many people lacking basic numeracy
  and literacy skills
• An estimated 20 of UK adults are innumerate and
  only able to read at the most basic level

16
Ways of Analysing Labour Markets
Slide 4.15

• Geographical differences
• Tight versus loose
• Occupational structure
• Generational differences

17
Geographical Differences
Slide 4.16

• For most jobs in most organisations the relevant
  labour market is local
• Comparison required of what is being offered by
  competitors in local area
• Travel infrastructure will affect the working
  population in local area

18
Tight Versus Loose
Slide 4.17

• Tight labour market where it is difficult to
  recruit and retain staff
• Loose labour market few problems in finding and
  retaining staff of required calibre

19
Approaches Depending on Degree of Tightness
Slide 4.18

• Relatively loose labour market- little employee
  resourcing effort - intelligent organisations
  sought people with capacity to innovate and
  develop their roles
• Tight labour market- many organisations just
  muddled through- intelligent organisations
  restructured, introduced flexible working
  practices, etc
• (Windolf 1986)

20
Occupational Structures
Slide 4.19

• Craft
• Organisation career
• Unstructured
• (Mahoney 1989)

21
Craft Structure
Slide 4.20

• People tend to be more committed to their
  occupation over the long term
• People tend to be less committed to their
  organisations
• To develop their career they will move from
  organisation to organisation
• Remaining in one organisation for too long is
  viewed as damaging to their careers
• (Mahoney 1989)

22
Organisation Career Structure
Slide 4.21

• Progress is made by climbing the promotion ladder
  within an organisation
• Movement between organisations is less frequent
• People will stay with an organisation whilst
  their careers are progressing in the right
  direction
• (Mahoney 1989)

23
Unstructured Market Structure
Slide 4.22

• Consists of lower skilled jobs for which little
  training is necessary
• Professional advancement opportunities are
  limited
• People move in and out of jobs for many different
  reasons
• (Mahoney 1989)

24
Generational Differences (1 of 2)
Slide 4.23

• Veterans are attracted to workplaces that offer
  stability and which value experience
• Boomers place a high value on effective
  participation
• Xers enjoy ambiguity and are at ease with
  insecurity
• Nexters are wholly intolerant of all unfair
  discrimination
• Xers require a proper work life balance

25
Generational Differences (2 of 2)
Slide 4.24

• Veterans are loyal to employers and less likely
  to look elsewhere
• Xers are strongly resistant to tight control
  systems and set procedures
• Nexters prefer to work for ethical employers
• Xers and Nexters work more easily with new
  technology than Veterans and Boomers

26
Flexible Resourcing Choices
Slide 4.25

• Numerical flexibility
• Temporal flexibility
• Functional flexibility
• Financial flexibility

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Numerical Flexibility
Slide 4.26
Figure 4.1  Atkinsons model of the ?exible ?rm
(Source J. Atkinson (1984) Manpower strategies
for ?exible organisations, Personnel Management,
August. Used with the permission of the author.)
28
Temporal Flexibility
Slide 4.27

• Concerns varying patterns of hours worked to
  respond to business demands and employee needs
• Increased use of part-time work, job sharing and
  flexible working hours
• Increased use of this approach in recent years

29
Functional Flexibility
Slide 4.28

• Where employees have capacity to undertake a
  variety of tasks as opposed to specialising in
  one area
• Horizontal flexibility involves staff becoming
  multi skilled so that they can be deployed as and
  when required at any time
• Vertical flexibility capacity to undertake work
  previously done by those higher or lower down the
  organisational hierarchy

30
Flexibility Debates
Slide 4.29

• Atkinsons flexible firm is it a description of
  trends or a prescription for the future
• Managers aspire to adopt the flexible firm
  approach but the extent to which it has been
  actually adopted is questioned
• The drive for economies of scale has led some
  companies to become more bureaucratic
• Flexibility used in a pragmatic and opportunistic
  way rather that as a strategic HRM manner

31
Desirability of Flexibility Debate
Slide 4.30

• Theoretical advantages arise from productivity
  gains
• Many equate flexibility with insecurity
• Staff turnover is likely to increase in response
  to flexible working practices, recruitment of
  talented people will be harder
• Too much flexibility can have damaging longer
  term economic consequences

32
Ready Made or Home Grown
Slide 4.31

• External labour market - Make use of talent
  available
• or
• Maximise opportunities in internal labour market
  -Invest heavily in training and development and
  career systems

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A Typology of Career Systems
Slide 4.32

• Relates entry and exit movements of staff with
  promotion and development
• Fortress organisations
• Baseball team
• Club
• Academy
• (Sonnenfield et al 1992)

34
Summary
Slide 4.33

• A strategic resourcing approach takes into
  account changes occurring in the labour market
• Individual labour markets vary in key respects
• The key respects of the different labour markets
  need to be considered when formulating the
  resourcing policy