ib business & management

Unit 2.1 Lesson 1: Human Resource

PlanningPage 167-202

IB Business & Management

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?

• …

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:http://hrappliedsolutions.com/hr03.jpg

2b. An Overview • So, what do firms look

at when trying to anticipate their organization’s current and future staffing needs?

• …

Technologicalchanges

Demographicchanges

LabourTurnover

rates

Sales andincome levels

HistoricalData and

trends

Looking For…

3a. Supply of HR and Demographic Changes

• 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…

• …

Mobility oflabour

Women

unemploymentFlexibility

Of the workforce

RetirementAge

NetMigration

Rate

NetBirthRate

Changes indemographics

3b. Supply of HR and Demographic Changes

• Also, the supply of human resources to a firm will depend on…

• …Rate of

unemployment

CostAnd

AvailabilityOf transportation

Cost ofLiving

Competition

Internalworkforce

Supplyof

HR

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…• …

ChangeIn employment

patterns

ChangesIn

Consumptionpatterns

ReducedLabourMobility

IncreasedDependentPopulation

Effects ofAn ageingPopulation

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

Workforce Planning• Firm must

consider level of demand

• Level of demands depends on:

Derived Demand

WorkStudy

Capital Intensity

Flexibilityand

Workload

Historical Data

Level ofDemand

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 neededTo recruitAnd retain

QualificationsAnd personal

qualities

Skills andTrainingrequired

JobAnalysisEntails…

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.

JobSecurity

PridePrestige

$$ Money $$

Advancement

Location

Challenge

Why leaveYourJob?

Unit 2.1 Lesson 2: Recruitment &

SelectionPage 167-202

IB Business & Management

1. Focus Questions• 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?

• …

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.• …

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:

http://jobview.monster.ca/getjob.aspx?JobID=63277559&q=marketing&cy=ca&lid=224&jto=1&re=112&pp=25&pg=1&dv=1&AVSDM=2009-05-09+14:49:00&seq=9&fseo=1&isjs=1&re=1000

• Also see Box 2.1c for a list of skills sought by employers.

• …

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?

• …

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.• …

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 email.

• …

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.• …

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.• …

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.• …

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.

• …

Unit 2.1 Lesson 3: Internal and External

RecruitmentPage 167-202

IB Business & Management

1. Focus Questions• 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?• …

2. Internal Recruitment

Motivational

Less risk

Less Down time

Cost effective

AdvantagesOf hiringWithin a

firm

InternalPolitics

“Deadwood”

TimeConsuming

FewApplicants

Disadvantages

3a. External Recruitment

DirectContacts

UniversityVisits

HeadhuntingJob

Centres

CommercialEmployment

Agencies

Internet Ads

SpecialistTrade

Publications

NewspaperAds

AdvantagesOf hiringWithin a

firm

4a. Appraisals

Aid inAssessingSuitability

For promotion

For reflection

Set newgoals

AidProfessionaldevelopment

AssessTraining

needs

assess&

Recordproformance

ReasonsFor

Appraisals

• Is a form of assessment.

• What does it assess?– An employee’s

performance.– Usually carried out

on an annual bases.

4b. Appraisals

FeedbackFromstaff

ProvideConstructive

criticism

To praiseStaff

objectively

Used toSet targets

Advantages

Confidentialfeedback

AppraisalsLinkedTo pay

AppraisersLack

experienceStaff

May getOffended

By comments

Hurt peoplesFeelings

Andrelationships

Is aDaunting

experience

RegularMonitoringIs difficult

TimeConsuming

Disadvantages

4c. AppraisalsMethods

OfAppraisals

UpwardsAppraisal(employeeAppraisesA senior)

EssayAppraisal

(write aboutStrengths

AndWeaknesses)

360 degreeAppraisal(collect

OpinionsFrom people

You workWith)

Rating System

(rate specificsAbout the

Job)

MBOManagement

by Objectives(assessing

Your objectives)

PeerAppraisal

(same levelOf employeeAppraisal)

SelfAppraisal

(you AppraiseYourself)

4d. Appraisals

• The performance appraisal will include the following steps:

Record And

Report

AppraisalMeeting

WrittenReport

SignFinal

Report

Counter-sign

4d. Appraisals

• If an appraisee has an overall rating below “moderate”, the following actions can be taken:

Issue anAdvisory

letter

Offercounselling

Discussconsequences

Monitorthe

performance

No Improvement-

Dismissemployee

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– …

5b. Training

• 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

5c. Induction Training

• Induction training: is aimed at introducing new employees to the organization.

Meet KeyPersonnel

TourThe

PremisesLearnAbout

Job role

Look atCompanypolicies

MentorIs

introduced

5d. Induction Training

Morale isboosted

Settle inquicker

Helped toUnderstandCorporate

culture

CreateGood

Workinghabits

Advantages

Informationoverload

Key PersonnelMust be

free

Planning isTime

consuming

Disadvantages

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

5f. On-the-job Training

Convenientlocation

EstablishWork

relations

FewerDisruptions

Of dailyoperations

Training isrelevant

cheap

Advantages Trainers

Will be takenAway from

Theirjob

TrainersMay lack

experience

Can pickupBad

Working habits

Disadvantages

5g. Off-the-job Training

Networking

No distractions

WiderRange oftraining

ExpertsGive

training

Advantages EmployeesMay leave

After gainingtraining

Skills andKnowledge

May notBe useful

LossOf

output

Veryexpensive

Disadvantages

6a. Dismissal & Redundancy

• Employee contracts can be terminated in several ways:– 1. Dismissal– 2. Redundancy– 3. Retirement– 4. Resignation

6b. Dismissal & Redundancy

• 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.

Legalrequirements

Grossmisconduct

misconduct

incompetence

Dismissal isFair when…

6c. Dismissal & Redundancy

• 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?

7a. Changing Employment Patterns and Practices

• Employment patterns change overtime.

• Here are a list of these trends.

Flexitime

Part-timeemployment

PortfolioWorking

Homeworking

Teleworking

FlexibleWork

Structures

AgeingPopulation

Employmentsector

ChangesIn

EmploymentPatterns