IB Business & Management

Unit 2.1
Human Resource Planning
 What is Human Resource Planning?
• The process of anticipating the organisation’s current and
future staffing needs

• Working out:
– The number of staff required
– The type of staff
– What skills workers need

• Putting systems in place to meet these needs

 Why is human resource planning so important?

• Businesses seek to employ the

right people to achieve its aims
and objectives.
• People are important to a firm
because they add value to its
output.
– Increasing productivity
– improving quality
– producing new ideas
– better customer service.
 What information is needed?
• Historical data and trends
• Sales forecast
• Labour turnover rates
• Demographic changes
• Technological changes

How would each of these factors affect the level of staffing

required
 Labour Mobility
Labour mobility consists of changes in the location of
workers both across
•physical space (geographic mobility) this can be national or
international
•and across a set of jobs (occupational mobility)
• Occupational mobility refers to the ease with which a
worker can leave one job for another in a different field.
 Demographic changes
How might changes in these
areas offer opportunities or
threats for firms?
IB Business & Management

Unit 2.1
Recruitment & Selection
 Why is recruitment important?
• The success of a firm depends to a great extent on the people it
employs – why?
• Labour is usually the single biggest cost a firm has
• The recruitment process is time consuming and can be
expensive
• It is therefore essential that the firm recruits the right people
 Why do firms recruit?
• Expansion – more workers required.
• Change – new workers are required
with different skills
• Replacing workers who have left
the organisation
• Replacing workers who have been
promoted

Why might workers leave an organisation?

 Why do workers leave?
• Retirement
• Move area
• Better pay
• Better job security
• Promotion in another firm
• dismissal
 Task - Recruiting new workers

Create a Flow Chart to show

the step by step process that
firms have to go through in
order to hire a new member
of staff.
Have you missed out any of these?

Shortlist
Advertise the Draw up Person
applicants
job specification

Decision that
Appointment
new staff are needed

Read
Draw up Job
applications Interviews
Description
THE JOB ANALYSIS PROCESS
 Job Analysis
• The process of scrutinising the job and verifying:
• The roles and responsibilities of the job
• The skills, qualifications and attributes needed
• The rewards needed to attract the right candidates
• From this analysis the job description and person
specification are drawn up
 Job Descriptions
• Job descriptions are a document that is drawn up to include
details about a job
• What details might be included?
• Working hours
• Pay
• Line Manager
• Duties
 A job description might look like this……

Innocent Ltd
Job title: Cow van mechanic
Department: Operations
Hours of work: 40 hours per week
Salary: £12,000 – £16,000
Duties & responsibilities:
1. Fix mechanical problems with the ‘cow’ vans.
2. Service, maintain and clean the vans regularly.
3. Keep records logging all problems and fixes to the vans.
 Person Specifications
Writing a person specification involves looking
at the job description and then thinking about
the characteristics needed of the person to do
the job
This could include:

qualifications (necessary and desirable)

experience (what jobs they should have done before)
skills (teamwork, good organization, typing, etc.)
attributes (personal qualities and characteristics).
 Task
• Look at the example job description and person specification
• Write a job description/person specification for a job you
would like to do when you have first finished in education
• BE REALISTIC!
Example Job Adverts
 What is included in a job advert?
A job advert usually summarises the details included in the job
description and the person specification:

the name of the business or

organization
job title and (sometimes)
salary
a description of what the job
involves
how to apply.
 Job adverts should be:
• Truthful
• Relevant
• Accurate
• Positive
• Short
 Homework Task
• Write a job advert for the job that you wrote the job
description and person specification for
• This should be done in Word or Publisher and should be one
A4 side.
• Think carefully about the format and the wording you use
 Advertising the vacancy
• The firm now has to decide where to advertise the job
• This will depend on whether they are going to recruit
internally or externally
THE APPLICATION PROCESS
 Applications are normally made by a
combination of:
• Application Form
• Curriculum Vitae
• Covering Letter

• What would be the benefits of using an application form

rather than CV?
 Task
•Have a look at the application forms for:
•Starbucks
•McDonalds
•Tesco
Which one is the best? Why
THE SELECTION PROCESS
 The selection process includes:
• Shortlisting
• Interviews
• Testing
 Short listing
– 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.
• …
 Interviews
• Telephone
• Video conferencing
• Face to Face
• Panel
 The purpose of Interviews:
• To find out more information about the candidate
• To see if the candidate will fit in with the company culture
• To assess if the candidate has the personal qualities needed to
do the job
 Good Interviews:
• All candidates are asked the same core questions
• Additional questions maybe added to query details on the
application
• Ask behavioural and situational based questions
Some typical interview questions for a
teaching job…..
• Why have you applied for the job?
• What can you offer the school?
• Give an example of a successful lesson that you
have taught
• Where do you see yourself in 5 years time?
• What are your strengths and weaknesses?
• What would you do if……..?
 Things Interviewers are looking for?
•Physical appearance
•Attainments
•Intelligence
•Skills
•Interests
•Temperament and disposition
•Motivation
•Circumstances
What are the limitations of the interview process?
 Task
• Two of the group will take the
positions of HR managers for Tesco
• You will need to prepare 6 questions
to ask the applicants
• The other applicants will apply for a
job
• Who will be shortlisted? Who will
impress at Interview?
 Testing
• Psychometric Tests
• Aptitude tests
• Intelligence tests
• Trade tests
 References
• These are 2 referees who can vouch for the candidate.
• A final security check
• Can be written or verbal

• Why might a previous employer give a good reference to an

unsuitable candidate?
Selecting and appointing the candidate

After the interview process, each candidate is reviewed and the

business selects and appoints the most suitable person.
This can involve a lot of discussion if there have been several people
involved in the recruitment process

Successful and unsuccessful

candidates will be informed of the
decision
 Contract of Employment
• Job title
• Job role
• Date of commencement (and sometimes end date)
• Hours and days of work
• Rate and method of pay
• Holiday and sick pay entitlements
• Pension plan details
• Disciplinary procedures
• Notice period
• Names and signature of employer and employee
IB Business & Management

Unit 2.1
Internal and External Recruitment
 Internal Recruitment

This refers to the filling of job

vacancies from within the business
- where existing employees are
selected rather than employing
someone from outside.
 How would a business go about recruiting
internally?

Intranets
Staff meetings
Staff notice boards In house Email notifications
magazines and
newsletters
WHAT ARE THE ADVANTAGES
AND DISADVANTAGES OF
RECRUITING INTERNALLY?
 Ads and Disads of internal recruitment

Advantages Disadvantages
Gives existing employees greater
1. opportunity to be promoted 1. Not as many people apply

May help to retain (keep) staff 2. External candidates might be better

2. who might otherwise leave suited / qualified for the job

3. Another vacancy will be created that

3. Requires a short induction has to be filled
training period Internal Politics
4.
4. Employer should know more
about the internal candidate's 5. Dead Wood
abilities

5. Usually quicker and less

expensive than recruiting from
outside
 External Recruitment

This refers to the filling of job vacancies from outside the

business.
 How would a business go about recruiting
externally?

Headhunters Advertising
Personal
Recommendation Employment/ Job centres
Milk Round
Recruitment agencies
 Ads and Disads of internal recruitment

Advantages Disadvantages
New Blood
1. 1. Time Consuming

Wider Experiences 2. Expensive

2.
3. Larger degree of uncertainty
3. Larger Pool
IB Business & Management

Unit 2.1
Appraisals
 What is an Appraisal?
• An Appraisal is a form of assessment.
• What does it assess?
– An employee’s performance.
– Usually carried out on an annual basis
– Carried out usually by someone more senior in the
organisation

Can also be referred to as Performance Management

WHAT ARE THE
ADVANTAGES OF
APPRAISALS?
 The Value of Appraisals…
Advantages
• Target setting can improve
performance
• Opportunity for employees
to be recognised and praised
• Can get feedback from staff
• Areas for improvement can
be recognised
Disadvantages
• Time consuming
• Only take place annually
• Can be subjective
• Lack of training for
appraisers
• Can be seen as critical
 Methods of Appraisal
Methods
Of
Appraisals

MBO
Essay Rating
Upwards 360 degree Management Peer Self
Appraisal System
Appraisal Appraisal by Appraisal Appraisal
Objectives
 Task
• Look at the Appraisal for BISS
 Task – Peer Appraisal
• You are going to Appraise each other as IB students
1. Fill in section A1 – A5 about your self
2. Pass to your reviewer who then fills in section B3 (without
looking at sections A1-A5)
3. The reviewer then reads section A1- A5)
4. The reviewer and reviewee get together to go through to
discuss, compare results for A3 and B3
5. Targets are agreed and filled in section B4 – these must be
SMART
6. The document is signed
 The process…..
Record
Counter-
And
sign
Report

ign
Appr
inal
Mee
eport

Written
Report
 Implications of a bad appraisal
• Issue an advisory letter
• Offer help
• Monitor Performance
• Dismissal
 Task
• Watch the appraisal video
• Appraisal “Spot the gaffes”
• What are the problems with this appraisal?
IB Business & Management

Unit 2.1
Training
 Training and Development….. The
difference?
Training and development….
The process of providing opportunities for workers to acquire
employment related skills and knowledge

Training – focuses on the tasks and responsibilities of a certain job

Development – focuses on enhancing the personal skills of an

employee
All companies will train their staff in some way, some more than
others.

Why do you think that firms need to train their staff?

 Why do companies need to train their
staff?
• To provide workers with the skills to do their jobs
• To create a flexible workforce
• To attract good quality applicants
• To increase motivation
• To keep up with changes in technology
• To improve workers skills and knowledge to
make them more efficient
• To keep up with changes in the law
• To prepare people for promotion
 Three types of Training
• Induction
• On-The-Job
• Off-The-Job

What do you think the difference is between these types

of training?
 Induction training

• An introduction to a new
employee.
• Explains the firm’s activities,
customs, procedures
• Introduces them to fellow
workers
 Task -
• If have been asked to design an induction program for new
teachers at BISS
• What type of things would your program involve?
• Think of at least 6 things
What are the best ways
to train people?
 Typical training activities
 Practical tasks
 Coaching
 Research tasks
 Talks
 Presentations
 Watching videos
 Reading assignments
 Lectures
 Role plays
 shadowing (shadowing another employee to see how they do it
and what's involved).
 Induction Training
Aimed at introducing new employees to the
organization
•Tour of site to help workers find their way around
•Information about the firm, it’s history and how it is
organised
•Conditions of employment explained
•Learning about the role of the job
•Health and safety and fire training
•Introduced to new colleagues and key personnel
Benefits of Induction Training
Establishes good
working habits

New Staff
feel welcome Advantages New Staff understand
corporate culture

Staff settle
in quickly
 Potential disadvantages
Planning is
Time
consuming

Disadvantages

Key
Information Personnel
On the Job Training
 On-the-job training
• Training carried out whilst at the workplace
• Delivered by a more experienced or senior member of staff
• Often involves ‘Learning by doing’

What are the advantages of On-the-Job training?

 Key points…..
• Can be relatively cheap
• Trainee is still at work so less disruptive
• Convenient location
However…..
• Trainees may pick up bad habits
• Internal trainers may not be the best qualified
• Trainers may not be able to do their own work
while training
 Off-the-job training
• Training is carried out away from the workplace
• This could be at a local college, training provider, or hotel
• Can be delivered by internal trainers or external organisations
• Often delivered to key members of staff who are then expected
to cascade the information to other workers
 Key Points
• Trainers are experts
• No distractions
• Networking can take place
However…..
• Can be very expensive
• Loss of output whilst the employee is away
• May not be totally appropriate or transferable
 Task
• Look at the video of staff training at Starbucks.
• What type of training is this?
• How will this training benefit the company?
Having looked at the reasons why firms train their staff and
different types of training
Are there any potential drawbacks to a firm of training their
staff?
 Drawbacks of Training
• Can be very expensive
• Staff could leave and take their skills to another firm
• Loss of productivity whilst staff are being trained
• Staff may demand higher wages
• Can effectiveness be judged?
IB Business & Management

Unit 2.1
Dismissal and Redundancies
 Dismissal & Redundancy
• As well as recruiting employees, the HRM department also deals
with the termination of employment.
• This could be due to:
– 1. Dismissal
– 2. Redundancy
– 3. Retirement
– 4. Resignation

What is the difference between these 4 terms?

DISMISSALS
 Dismissals
• When the employee is sacked due to incompetence or a breach
of contract.
• We would also call the being sacked or fired
• This has to be done in a fair manner
 Legitimate reasons for Dismissals
• Incompetence
• Misconduct – unacceptable behaviour such as
persistent lateness, harrassment, behaving in an
unprofessional manner. A series of warnings will
be given
• Gross Misconduct – Major misdemeanors such as
theft, fraud, dangerous behaviour. Dismissal will
be instant
• Legal requirements – If an employee does not
have the necessary skills, qualifications or
licenses to do their job
 When dismissal is considered
wrong……
• Unfair Dismissal – When an employee is dismissed without a
valid reason
• Wrongful dismissal – When the employee has been dismissed
in a way that does not follow the correct procedures
• Constructive dismissal – When a worker has not been
dismissed but has been forced to resign
REDUNDANCIES
 What is a redundancy?
Occurs when the employees job ceases to exist. This may be
because:
–The company can no longer afford to pay the employee
–The company is relocating
–The company is downsizing
–Technology has replaced the worker
–The company is changing its operations
–A merger or takeover

Often referred to as retrenchments or lay-offs.

 Task
• Read the newpaper articles.
• For each article summarise:
• Which business is involved
• How many redundancies are being made?
• What are the main reasons for these redundancies?
• Which jobs are going to be affected
• How are the redundancies going to be made?
• You will have 4 minutes for each article and then pass
it on to the next pair
 Who gets laid off?
What methods could a company use to decide who gets laid off?
•Voluntary redundancies
•LIFO
•Retention by merit- what factors could be considered?
An alternative to redundancies is to reduce pay or to redeploy
staff to other areas of the company
IB Business & Management

Unit 2.1
Changing Work Patterns
 Changing Employment Patterns and Practices
Employment
sector

Ageing
Flexitime
Population

Changes
Flexible
Part-time In
Work
employment Employment Structures
Patterns

Portfolio Teleworking
Working

Home
working
 Employment Sectors
• Changing proportions of workers working in Primary,
Secondary and Tertiary Sectors.
 Aging Population
• Falling birth rate
• Longer life expectancy
• Increase in retirement age
• Companies have to be more prepared to employ and train
older workers
 Flexible Work Structures
• In order to cut costs and improve efficiency, companies are
trying to make their workforce more flexible
• This could involve:
• Flexible organisation structures
• Flexible working hours
• Temporary contracts
• Multi-skilling
 Handy’s Shamrock Organisation
Charles Handy proposed the
concept.
A Shamrock organisation will
have:
Core Staff – Full time Staff -Vital
but becoming an increasingly
smaller group
Peripheral Workers – part-time,
casual, temporary and portfolio
workers
Outsourced Workers – Workers
not employed by the organisation
but paid to complete specialist
tasks
 Teleworking and Homeworking
• Both are when workers are working outside of the workplace
and communicating using electronic forms of communication
• Home-working specifically refers to when workers work from
home
• What would the advantages and disadvantages be
 Portfolio Working
• A portfolio worker is one who is employed by a variety of
different businesses/customers simultaneously
• They will undertake projects for different companies
• They can charge per hour or per project
• This is known as Adhoc employment
 Part time Employment
• An increasing number of workers work Part-time in developed
economies
• Why do you think this is?
• Part-time staff in Europe have the same rights as full time staff
• Labour turnover tends to be higher – why?
• Some companies use Job-sharing
 Flexi-time
• A movement away from the traditional work time
of 9-5
• An alternative to this is:
• Shift work – Some businesses work 24 hours per
day
• Flexitime- Workers have a contracted number of
hours and can work then when they wish to within
certain parameters
What are the benefits of this to the business?
 Task
• Read the case study “Flexible working at Lloyds TSB’
• Answer the questions
IB Business & Management

Unit 2.1
Employment Rights - HL
 What is Employment Legislation?
• The range of laws aimed to protect workers from being
exploited
 Coverage
• Anti Discrimination/Equal opportunities
• Equal Pay Legislation
• Health and Safety
• National Minimum Wage
• Working Hours
• Statutory Benefits
 Basic Employees Rights
• A Contract of Employment - A written statement of the terms
and conditions of employment (after 13 weeks)
• An itemised pay slip.
• Fair notice of termination of employment.
• The guaranteed payment of wages/salary.
• A safe working environment.
• Be treated fairly
• A reasonable amount of time off for public or trade union
duties.
• Statutory sick pay.
• Compensation if made redundant.
• Maternity/paternity benefit and the right to return to work
Equal Opportunities
 Equal Opportunities
• Businesses must recruit, train and promote staff without
discriminating on the grounds of gender, age, race, religion,
sexual preference or disability

• What does the term positive discrimination mean?

 Group Task – Statutory Benefits
Maternity Leave/Pay Rest Breaks

Working hours per week Minimum Wage Paternity Pay

Holiday Entitlement Sick Pay

Write a statement outlining what you think would be a fair policy in the following
areas of Employment Law
Working Hours
 Working Time Directive 1998
Designed to protect employees from a requirement to work
excessive hours, the WTD provides workers with the
following statutory rights:
• four weeks' paid annual leave
• a limit on average weekly working time to 48 hours (although
this can be averaged out over 4 months and there are some
exemptions)
• rest break after 6 consecutive hours of work
• 11 hours' rest between working shifts
• at least a day's rest per week
• a limit on night workers' average daily working time to 8
hours
Minimum Wage
 The minimum wage
• The NMW rates are reviewed each year by the Low
Pay Commission and from 1 October 2011:
• the main rate for workers aged 21 and over will
increase to £6.08
• the 18-20 rate will increase to £4.98
• the 16-17 rate for workers above school leaving age but
under 18 will increase to £3.68
• the apprentice rate, for apprentices under 19 or 19 or
over and in the first year of their apprenticeship will
increase to £2.60
What point is this cartoon trying to
make?
Maternity Rights
 Maternity Rights
• Pregnant employees have four key rights:
• paid time off for antenatal care
• maternity leave
• maternity pay benefits
• protection against unfair treatment or dismissal
Maternity Pay:
• for the first six weeks at 90 per cent of average gross weekly
earnings
• for the remaining 33 weeks at the lower of either the
standard rate of £128.73, or 90 per cent of average gross
weekly earnings (which ever is lower)
Paternity Rights
 Paternity Rights
• Ordinary Statutory Paternity Pay is paid for up to two
consecutive weeks, depending on how long you choose to take
Ordinary Paternity Leave for. The current weekly rate is
£124.88 (£128.73 from April 2011) or 90 per cent of average
weekly earnings, if that is less.
• As of April 2011, fathers may qualify to take an additional 26
weeks of unpaid paternity leave if their partner has gone back
to work
Sick Pay
 Statutory Sick Pay
• Nothing for the first 4 days
• After this you can claim statutory sick pay for 28 weeks
• The rate is currently £81.60 per week
 Task -
• Research a country and find out the legal requirements
for:
• Holiday Pay
• Sick Pay
• Maternity leave
• Paternity Leave
• Minimum Pay
• Maximum working hours
• Rest breaks