HUMAN RESOURCE MANAGEMENT

IB Business Management

Mr MC
 LEARNING OUTCOMES
 Compare present human resources with future requirements and evaluate
strategies for developing future human resources
 Identify the constraints and opportunities provided by demographic change
 Discuss the significance of changes in labour mobility, both domestic and
international
 Describe methods of recruitment, appraisal, training and dismissal
 Discuss advantages and disadvantages of different methods of recruitment,
appraisal and training.
 Analyse the impact on the firm of legal employment rights.

Mr MC
LEARNING OUTCOMES (CONTINUED)
 Examine how recruitment, appraisal, training, dismissal and
redundancies enable the firm to achieve workforce planning targets.
 Describe reasons for changes in work patterns and practices and the
consequences of these changes for employers and employees, for
example, working from home, teleworking and flexitime.
 Analyse reasons for changes in work patterns and practices and the
consequences of these changes for employers and employees, for
example, working from home, teleworking and flexitime.
 Apply appropriate management theories such as Handy’s shamrock
organization.

Mr MC
Reading focus
 Paul Hoang 3rd Edition
Business Management
 Chapter 2
 Unit 2.1
 Pages 109 – 140

 Paul Hoang 2nd Edition

Business and Management
 Chapter 2
 Unit 2.1
 Pages 148-178
Mr MC
 FUNCTIONS AND EVOLUTION OF HRM
 Starter for CEO’s:
 Question:

 which one of the 7 features is MOST important in

your company team members ? Why ?

Starter for Company team members:

Question:
- which one of the 15 skills of leaders is the MOST
important ? Why ?
 HUMAN RESOURCE PLANNING
H.R.M : A management function of utilizing and developing
people to achieve the objectives of the organization
 Main Functions of H.R.M Department
 Recruitment
 Development/training
 Promotion and relocation of staff
 Review of performance and remuneration
 Disciplinary and grievance procedure
 Exit management

Mr MC
 HUMAN RESOURCE PLANNING
 Workforce Planning should…
 focus on long term targets
 be communicated clearly in terms of
 Departmental H.R needs
 Organizational H.R needs
 have an integrated approach
 Both genders
 Consider both capital and labour approaches
 be planned for the whole organization
 be aligned with corporate strategy (vision of the firm)

Mr MC
HUMAN RESOURCE PLANNING
Anticipating the H.R needs of a firm can be carried out by
looking at
• historical data and trends
• sales and income levels
• labour turnover rates
• demographic changes
• technological changes

What factors can Miss. Talisca

look at when projecting her
future H.R needs?

Mr MC
Miss. Talisca
Miss. Talisca operates a beauty parlour in downtown
Athens. Her clients are the working class women of the
Athena district. Due to the recession in Greece, she has had
fewer and fewer bookings however, Talisca has been able to
maintain her profit margins by expanding her portfolio. She
now also operates a low cost children’s clothes and toys
store. The business gets an average of 10 clients a week
who check in for beauty services. The children’s store is
located in a small outlet by the corner of the street. Talisca
is planning to reduce her human resource costs as a way to
stay profitable

Help her plan H.R needs to stay profitable

Mr MC
 SUPPLY OF LABOUR: MAIN CAUSE
 Demographic changes
 Net birth rate
 Net migration rate
 Retirement age
 Flexibility of the workforce
 Entrance of women into the workforce
 Mobility of labour

Mr MC
LABOUR SUPPLY: LABOUR MOBILITY
 Cause of labor mobility barriers
 Physical (geographical barriers)
 Abilities (skills, physical ability and
experience)
 Educational barriers
 Legal factors
 Political barriers

Mr MC
 LABOUR SUPPLY ALSO DEPENDS ON:

 The flexibility of the internal workforce

 The cost of living in a particular area

 The Cost and availability of transportation

 The rate of unemployment

 The ageing population

Mr MC
 GROUP DISCUSSION

 Hoang 2nd Edition

 Page 150

 Question 2.1.1

 All parts (a,b)

Or
Paul Hoang 3rd Edition
Page 111
Questions 2.1.1

Mr MC
EFFECTS OF POOR HUMAN RESOURCE
PLANNING

Mr MC
 HUMAN RESOURCE PLANNING

 Poor planning can result in:

 An inability to hire the right people at the right time
 Poorly trained staff
 Falls in motivation and the quality of output.
 Increasing levels of absenteeism.
 Higher levels of labour turnover
 Increasing costs

Mr MC
 HUMAN RESOURCE PLANNING
 When planning to recruiting workers, consider;
 the current labour market dynamics in terms of
 Market size
 Skills

 Demographics

 the Competitors
 the Costs of recruitment
 Labour mobility

Mr MC
 LABOUR TURNOVER
 Measures the percentage of the workforce that leaves the
business in a given time period
 Formula: number of staff leaving x 100

total number of staff

Main reasons why workers leave a business
- challenge
- advancement
- money
 prestige

 job security

Task: examine the costs and benefits of high LT

 RECRUITMENT STEPS
 Confirm Job Description
 Person Specification
 Recruitment channel(s)
 Internal (within)
 External (outside the business)
 Local/Global

 Media Options

 Confirm interview and selection

procedure
 Interview (single, group, multiple, etc)
 Reference review
 Psychometric tests
 Assessment Center

Mr MC
JOB ANALYSIS: JOB DESCRIPTION
 Job Title
 Purpose

 Department

 Main duties
In your groups prepare a job description for
 Location (optional) one of the following positions
• Primary school teacher
 Working Conditions
• Bus driver
 Benefits • Factory floor supervisor

Mr MC
JOB ANALYSIS: JOB/PERSON SPECIFICATION
 Education levels
 Experience level

 Knowledge of the job in hand

 Skills
 Life skills (e.g. driving, first aid e.t.c)
 Social skills (e.g. organization, speaking e.t.c)
 Personality
 Physical strength

Mr MC
 APPLICATION
 Application forms
 Curriculum Vitae

 Letter of Application

 Most of these are now in

electronic format

 A short list will be chosen

Mr MC
 INTERVIEW
 Almost every selection process will include
an interview.
 An interview can be conducted through
 A telephone
 Video conference
 In person
 One on one
 By a panel of experts
 Multiple interviews

See box 2.1.b and box 2.1.c on page 117

Mr MC
 SELECTION
 It could also include tests
 Psychometric
 Performance
 Aptitude
 Intelligence

 All managers involved in the recruitment process

usually have input in selecting the candidate

Mr MC
 EXTERNAL RECRUITMENT
 More expensive
 Longer recruitment times

 Can have more risk

 New ideas brought into the

company
 More choice of candidates

 Outsource to recruitment
firms (head hunters)

Mr MC
 ACTIVITY – DEBATE
1. The class has been chosen to determine the
recruitment channel for the new Business
and Management teacher for NFLS

?
2. However half the class wants to use internal
recruitment and the other half wants to use
external

3. Prepare your arguments to support your

position

Mr MC
 TRAINING
 Training is the process of
instructing staff on performing
the tasks of their current job
 Development is the process of
enabling an employee realize
their full potential
 Investment in one of the
company’s most valuable asset.

Mr MC
 TRAINING OBJECTIVES
 To enable new employees reach level of experienced employees
 To ensure there is a broad base of skills available to the organization
for both current and future needs (cognitive skills)
 To develop knowledgeable and committed workforce (cognitive +
behavioral skills)
 To deliver high quality products and services

Mr MC
 TRAINING
 Impact of no training
 Higher recruitment costs
 High labor turnover
 Low productivity
 High mistakes and wastage
 Low moral
 Safety issues (poor attitude)

Mr MC
METHODS OF TRAINING
Advantages Disadvantages
 Productive Faster  Not on job first days
Induction  Good first impressions

 Specific to the job  Disrupts normal business

On the Job  Easier to organize  Trainer must have the right skills
 Cost effective

 Specialized and focused  Might not be applicable to current job

Off the Job  No workplace distractions  More expensive
Exchange new ideas  Employee not on site

 On the job training  the mentor must be chosen carefully

Mentoring  very cost effective
 Leverage experience of exiting staff

Mr MC
TOK – LET’S DEBATE
Selecting the right managers is a critical decision for many
organizations.

The use of evidence is much more critical than logic and

intuition when hiring new staff.

To what extent do you agree with the above statement?

Mr MC
 APPRAISALS
 A formal assessment of the
performance of a member of
staff
 Establish clear objectives for
each employee
 Usually an annual one-on-one
discussion to review previous
year performance and set next
year’s objectives

Mr MC
 BENEFITS OF APPRAISALS

 Improve employee
performance
 Provide feedback

 Determine future training

needs
 Employee career planning

Mr MC
METHODS OF APPRAISALS

 Observational Feedback/formative
 Formal Discussion

 Performance reports

 Testing/summative

 360 degree

 Self appraisal

Mr MC
360° APPRAISALS
 A method of appraisal to provide
a more complete assessment of
performance Customers

 Feedback from ALL the

employees key contacts Self Suppliers

 Usually obtained via a

questionnaire Employee

 Might not be appropriate for all

organizations Senior
Subordinates
Management
 The sources must be considered
when reviewing the feedback
Peers

Mr MC
 REDUNDANCIES
 Reducing workforce as a part of
workforce planning
 Workers are not being fired but laid
off
 A worker is not replaced with a
person doing the same job
 Redundancies usually are as a result
of conditions of the business
environment:
 Poor economic conditions
 Financial loss
 Improvement in technology
 As part of a business Strategy
 Workers require legal protection and
redundancy pay
 Can be voluntary or forced

Mr MC
 DISMISSAL
 When the employee’s contract is
terminated as result of:
 Incompetence
 Negligent
 Broken terms of contract
 Illegal act

 Released immediately
 Legal protection against unfair
dismissal

Mr MC
 EMPLOYMENT RIGHTS
 Anti-discrimination
 Equal Pay
 Health & Safety
 Statutory Benefits
 Minimum Wage
 Redundancy and Dismissal
 Impact on the organization
 Productivity
 Profit
 Morale
 Corporate Image

Mr MC
 STATUTORY BENEFITS

•Statutory sick leave

•Statutory maternity leave
•Statutory paternity leave
•Statutory holiday leave
•Retirement pension schemes

Mr MC
 CONTRACTS

 Legal binding documents

 In some countries, all employees must be given contracts

 In some, a verbal agreement can be acceptable

What types of contracts do businesses use?

 Read the common contents of an employment contract in box

2.1.d on page 118

Mr MC
 ASSIGNMENT

 Hoang 2nd Edition

 Page 190

 Question 2.1.5

 All parts (a,b)

Or
Paul Hoang 3rd Edition
Page 130
Question 2.1.5

Mr MC
 CHANGING PATTERNS & PRACTICES OF
EMPLOYMENT
 From traditional work practices and patterns (8-5pm)
 Organizations are evolving to meet the ever changing business
environment
 Employment sectors have evolved (now there are four; primary,
secondary, tertiary and quaternary sector)
 Employment practices are also changing:
 Working from home
 Tele-working
 Flexi-time
 Part-time + portfolio workers
 Job Sharing
 Contract workers

Mr MC
 HANDY’S “SHAMROCK
 ORGANIZATION”
Page 172
 Charles Handy argues in his book, The
Age of Unreason, that the organization of
Outsourcing
the future will resemble a three-leafed Vendors
shamrock. Professional
 New organizations must build change Core
into their organizational structure.
Contingent
 It delineates three separate and distinct Workforce
elements that will each employ the
knowledge worker.

Mr MC
 HANDY’S “SHAMROCK
ORGANIZATION”
 Professional Core
 People essential to the business
 Provide competitive advantage
 Compensated very well, with very expectations

 Outsourcing Vendors
 Take over non-core competencies
 Should be cost effective and more efficient
 Examples; Information Technology, Shipping, Accounting

 Contingent Workforce (contract workers)

 Fastest growing area
 Flexible, just in time workforce

Mr MC
 ASSIGNMENT
 Paul Hoang 2nd Edition
 Page 176

 Question 2.1.8

 All parts (a,b)

Or
Paul Hoang 3rd Edition
Page 136
Questions 2.1.7

Mr MC
 CLASS DISCUSSION IN GROUPS
ACHIEVING WORKFORCE TARGETS
Can an organization achieve its,
 recruitment targets

 training targets

 appraisal targets

And can it avoid or minimize

 dismissal…???

 redundancies…??

Trainers and appraisals always consider KASH when conducting

appraisals
Knowledge, Attitude, Skills and Habits

Mr MC
 CUEGIS LINK
H.R. PLANNING AND BUSINESS STRATEGY
In H.R. management, managers need to;
 plan for short and long term H.R needs for the organization
 find ways of increasing labor productivity and efficiency

H.R. managers may find challenges such as;

 higher recruitment costs

 conflict management

 low motivation

 poor corporate image

 High staff turnover

H.R. managers are increasingly keen to know why staff leave through
the use of exit interviews
To keep staff, organizations need to continuously train workers and
find ways of motivating them
Mr MC
 End of Unit
Next Unit: Organizational Structures

Mr MC