Bm Chapter 2.1 Human Resource Planning
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Bm Chapter 2.1 Human Resource Planning



IB Business and Management (Standard Level)

IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007



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Bm Chapter 2.1 Human Resource Planning Bm Chapter 2.1 Human Resource Planning Presentation Transcript

  • IB Business & Management
    Unit 2.1
    Lesson 1: Human Resource Planning
    Page 167-202
  • 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.

  • 2b. An Overview
    So, what do firms look at when trying to anticipate their organization’s current and future staffing needs?

  • 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…

  • 3b. Supply of HR and Demographic Changes
    Also, the supply of human resources to a firm will depend on…

  • 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…

  • 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

  • 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?
    So how do you retain staff?
    Offer training
    Professional and development courses.
  • IB Business & Management
    Unit 2.1
    Lesson 2: Recruitment & Selection
    Page 167-202
  • 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:
    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.

  • IB Business & Management
    Unit 2.1
    Lesson 3: Internal and External
    Page 167-202
  • 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
  • 3a. External Recruitment
  • 4a. Appraisals
    Is a form of assessment.
    What does it assess?
    An employee’s performance.
    Usually carried out on an annual bases.
  • 4b. Appraisals
  • 4c. Appraisals
  • 4d. Appraisals
    The performance appraisal will include the following steps:
  • 4d. Appraisals
    If an appraisee has an overall rating below “moderate”, the following actions can be taken:
  • 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.
  • 5d. Induction Training
  • 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.”
  • 5f. On-the-job Training
  • 5g. Off-the-job Training
  • 6a. Dismissal & Redundancy
    Employee contracts can be terminated in several ways:
    1. Dismissal
    2. Redundancy
    3. Retirement
    4. Resignation
  • 6b. Dismissal & Redundancy
    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.
  • 6c. Dismissal & 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.
  • The End.