UNIT 8

MARKETING PLAN
HUMAN RESOURCES
 Learning Aims

•Explore the factors that can impact human resource planning in business
•Examine the methods of managing employees performance and how
motivation impacts on business performance
•Examine how effective recruitment and selection contribute to business
success

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What is Human Resources

• The human resources of a business are its employees.

• The People who work to produce goods and service, referred to

as labour in the factors of production.

• Human Resource Management term which implies selecting, 

recruiting, training, appraisals of employees, providing
orientation, benefits, compensation, security & safety in
compliance with labor laws of the particular country or
government.
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 WHAT DOES HR DO?

 The role of human resources management is

to ensure that staff are as productive and
efficient as they can be. This requires good
recruitment processes, structuring and
restructuring the workforce, appropriate
training, methods of motivation and dismissal.

 To begin with the role of HRM is about

developing HR policies and procedures,
building a work culture and creating a best
workplace for all the employees working in
an organization.
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 WHAT DOES HR DO?

• HR is responsible for recruiting new employees

and ensuring that each vacancy is filled by the
best person for the job.
• This is important because the recruitment
process is expensive and time-consuming.
Hiring the wrong person can be costly and
cause problems both for the individual and the
firm.

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 Human Resources As Factor of Production

 There are four factors of production which are the

inputs used to create the outputs of a business.

 The factors are land, labour, capital and enterprise.

 Human Resources are the labor used in production.

 It is the factor most relevant for productivity in any

industry

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FUNCTIONS OF HR

 Advertising job vacancies

 Notifying staff of promotion opportunities
 Receiving and recording all job applications,
 arranging interviews and notifying candidates of the result
 Sending a contract of employment and other essential
information to new staff
 Arranging staff training and encouraging continuous
professional development

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FUNCTIONS OF HR

 Monitoring the working conditions of staff

 Recording sick leave and reasons for absence
 Carrying out company welfare policies, e.g. long-service awards and
company loans
 Advising managers on the legal rights and responsibilities of the company
and its employees
 Keeping records of grievances and disciplinary actions and their outcome
 Monitoring the terms and conditions of employment, including wage rates
 Maintaining staff records
 Liaising with staff associations or trade unions which represent the workforce

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Human Resource Planning
Human resource planning (HRP) describes Human resource planning (HRP) is the
continuous process of systematic planning ahead to achieve optimum use of an
organization's most valuable asset—quality employees. 
 An ongoing, data-driven process in which an organization systematically plans for
the future of human resources. It is a continuous process of maximizing the use of
the workforce.
 Ensures the best fit between employees and jobs while avoiding manpower
shortages or surpluses.
 It identifies key HR initiatives for the time period ahead that will help the
organization achieve its strategic goals and maintain its competitive advantage
without staffing shortages or excesses.
 Assures right quantity and quality of staff to complete operation effectively.
 This is done through a range of activities such as recruitment, motivation and
training.
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 HUMAN RESOURCE PROCESS
There are four key features to the HRP process;

 Analyzing present labor supply, 

 Forecasting labor demand,
 Balancing projected labor demand with supply
 Supporting organizational goals.

HRP is an important investment for any business as it allows

companies to remain both productive and profitable.

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Labour Market Analysis
The process of investigating the supply and demand of labour in different markets and regions.

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What’s the big idea?
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Tools for environmental scanning:

PESTLE Analysis
Porter’s 5 forces framework

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 Models for Labour Analysis

 Pestle analysis
 Porter’s 5 forces
 Scenario analysis
 Gap analysis
 SWOT analysis

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Sources of information for Labour Market Analysis

• UK Government Statistics
• https://www.gov.uk/search/research-and-statistics?
content_store_document_type=upcoming_statistics
• HK Government Statistics
• https://www.censtatd.gov.hk/hkstat/sub/so30.jsp

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FORECASTING LABOUR SUPPLY

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Forecasting is a key element of Human Resource Process

Forecasting involves
• Forecasting the demand for labour
• Forecasting the supply of labour
• Balancing the both considerations

Two Methods of Forecasting

• Quantitative; Utilizing data with figures
• Trend analysis
• Workforce analysis
• Workload analysis

• Qualitative; Expert Forecasts

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Business planning and Human
Resources

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Business planning deals with the mechanisms, strategies and approaches a business utilizes to advance the value of its business assets to deliver impact that matters to its customers and achieve its purpose and objectives.

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Link Between HR and Business Planning

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Factors Involved in HR Planning

 Nature of Work
 Demand for products
 Skill requirements and shortages
 location of a job role
 Workforce profile
 Labour turnover
 Labour productivity ratio

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 GLOBALIZATION
 Globalization can be defined as the ongoing economic, technological,
social, and political integration of the world that began after the Second
World War.

 It also refers to the growing integration of the world's economies

 There are several dimensions to this dynamic process, including the increased
internationalization of economic markets.

 Firms are increasingly operating in different countries and recruiting

staff from overseas. This has an impact of HR planning.

 Under going globalization presents the necessity to investigate global

human resource development and its differences from domestic human 52
resource development appears.
The impact of globalization on human resource
planning.

• Cultural norms are the expected rules, behaviours and conduct shared by
a group of people.
• Managers may find that staff from other countries have different norms
when it comes to working hours, punctuality, dress codes, levels of
formality and relationships with superiors.
• A good place to start when trying to understand the differences in cultural
norms in different countries is Hofstede’s power distance index.
• If an employee comes from a country with a higher power distance index,
they will be used to and likely more comfortable with a more formal
relationship with their superior.
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The impact of globalisation on human resource planning.

• Mobility of labour refers to how easily workers can move between

different jobs. Geographic mobility refers to the ease to which workers
can move to jobs in different locations and occupational mobility refers to
how easily workers can move to jobs in another industry.
• Location of a business has been affected by globalisation. Firms may
decide to locate different parts of their operations based on the benefits
that different countries offer.
• Language differences in HR planning must considered with globalisation.
• Work visas are permissions given by the government of one country to
citizens of another country to enter and work
• Regional employment legislation differs from country to country. When
operating internationally, firms need to be aware of the differences in
employment law to ensure that they adapt their company policies and
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MANAGEMENT ACTIONS TO ADDRESS
HR ISSUES AT AN OPERATIONAL LEVEL
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Workplace stress refers to the emotional strain that can be caused as a result of
pressures related to a person’s job. Workplace stress can be caused by a range
of issues such as lack of job security, heavy workload, feeling unsafe in the
working area, not feeling confident in how to complete tasks, tight deadlines and
poor relationships with managers.

Motivation in the workplace is the drive that employees have to complete their
work to the best of their ability. Motivated workers bring energy and enthusiasm
to the workplace and are generally more productive, efficient and innovative as a
result.

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Engagement with business culture refers to how on board employees are
with the aims, mission and values of an organisation. When employees are
disengaged there is a Culture Gap

Employee satisfaction refers to the extent to which employees are content in

their workplace. Employee satisfaction is not the same as motivation as
motivation refers to how employees feel about the job itself, whereas
satisfaction is related to the work environment and conditions.

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Absenteeism refers to time employees take off work that is unexplained. It refers
to chronic or habitual workplace absence, often unplanned and unannounced
without good reason.

Absenteeism is often calculated in 2 ways;

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Implications of high staff turnover

Higher Costs ; Increased recruitment & training costs

Disruption to production or productivity
More pressure on remaining staff
Quality and standards of service could be affected leading to
Customer dissatisfaction

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 FACTORS THAT AFFECT STAFF TURNOVER

 Nature of Business  Working conditions

- Seasonal businesses  Standards of recruitment

 High temporary staff requirement
 Quality of communication
 Job roles
 Competitor actions  Labour mobility

 Opportunities for promotion and - How transferable are staff skills?

advancement
 Economic Conditions
 Employee engagement and loyalty
 Compensation, pay and rewards - Boom, Downturn, recession
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Labor productivity
also known as workforce productivity, is defined as output per unit of labour input.

Labour productivity is concerned with the amount (volume) of output that is obtained from each employee

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FACTORS AFFECTING HR PLANNING IN
ORGANIZATION.
• Internal Factors
• Micro External Factors
• Macro External Factors
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Internal factors affecting Human Resource Planning

1. Nature of organization
2. Organizational structure
3. Human resource mobility; turnover/attrition.
4. Business Strategy
5. HR Policies
6. Approach of Organization towards Planning
7. Organizational Growth Cycle
8. Time Horizon / Time span of HR Planning
9. Outsourcing HRM
10.Time Horizon & uncertainty
11.Type and quality of forecasting information
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External factors affecting Human Resource Planning

1.Labour Market
2.Economy
3.Industry factors; growth, attractiveness, competition
4.Technological changes or emergence of new technologies.
5.Demographic factors
6.Social & Cultural factors
7.Government policies & legal landscape
8.Pressure groups.
9.Regulatory Framework.
10.Environmental uncertainty.
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Techniques to meet skill requirements
Recruitment refers to the process of analysing the skills requirements of an organisation,
advertising a job position, interviewing and selecting an appropriate candidate to offer a
position to.
Changing job roles such as when a person gets promoted or if production methods
change due to automation or changing demand for products may lead to a need for a
different skill set.
Restructuring refers to the reorganisation of staff. This may be as a result of a merger,
changes in processes, changes in technology or preferences of management. When
changing job roles, staff will need to develop the skills required for that role.

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Outsourcing refers to using another company to provide goods and/or services for a fee
rather than a business producing them themselves. This may be preferred when managers
feel that the outside company have a better skillset and as a result, may produce goods
and services of a better quality.

Upskilling/reskilling/training are all methods of developing the skills of existing staff

in order to meet a skill requirement that is lacking. Existing skills may become out of
date as the working environment changes due to changes in technology, ways of working
or the actual product being produced.

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THANK YOU!