Bm Chapter 2.1 Human Resource Planning


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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

  1. 1. IB Business & Management<br />Unit 2.1 <br />Lesson 1: Human Resource Planning<br />Page 167-202<br />
  2. 2. 1. Focus Questions<br />1. Describe what is meant by supply of human resources and demographic changes?<br />2. What is workforce planning and how can it help a firm achieve its aims and objectives?<br />3. How does a firm go about recruiting and selecting employees?<br />…<br />
  3. 3. 2a. A thousand workers, a thousand plans.~ Chinese proverb<br />What are the four factors of production?<br />Natural resources, capital resources, entrepreneurs and…<br />LABOR resources. <br />Businesses seek to employ the right people to achieve its aims and objectives.<br />In order to do this, a firm needs to use Human Resource Planning.<br />A.K.A – Workforce planning.<br />People are important to a firm because they add value to its output.<br />Increasing productivity, <br />improving quality, <br />producing new ideas and <br />better customer service.<br />…<br />Photo:<br /><br />
  4. 4. 2b. An Overview <br />So, what do firms look at when trying to anticipate their organization’s current and future staffing needs?<br />…<br />
  5. 5. 3a. Supply of HR and Demographic Changes <br />Demographic changes affect the supply HR within a country.<br />What is demography?<br />A statistical study of population characteristics.<br />A business will need to understand the following changes in demographics…<br />…<br />
  6. 6. 3b. Supply of HR and Demographic Changes <br />Also, the supply of human resources to a firm will depend on…<br />…<br />
  7. 7. 3c. Supply of HR and Demographic Changes <br />If there is a surplus of human resources, then business have two choices (example during an off-peak season):<br />1. to make workers redundant (job disappears).<br />2. to redeploy (relocate) workers to other departments.<br />A major demographic change is the increased life expectancy of the population.<br />There are several effects caused by an ageing population…<br />…<br />
  8. 8. 4a. Workforce Planning<br />The demand for labour may also decrease, due to natural wastage.<br />When someone leaves a job.<br />Workforce planning uses a lot of time and money, but can save you that and more in the long term.<br />In order to help save time and money, HR managers will conduct a job analysis.<br />Will create two important documents:<br />1. job description<br />2. person specification<br />…<br />
  9. 9. 4b. Workforce Planning<br />Many companies have a high turn over rate. Such as Wendy’s and Burger King.<br />Think about it: <br />Why would people leave their jobs?<br />CLAMPS<br />So how do you retain staff?<br />Offer training<br />Professional and development courses.<br />
  10. 10. IB Business & Management<br />Unit 2.1 <br />Lesson 2: Recruitment & Selection<br />Page 167-202<br />
  11. 11. 1. Focus Questions<br />1. How vital is the recruitment and selection process for a business?<br />2. What is the application process?<br />3. How do firm’s select employees?<br />…<br />
  12. 12. 2a. Recruitment and Selection<br />It is a vital part to the running of a business.<br />Hiring the right people ensures that the business can function effectively.<br />Recruitment is time consuming and very expensive.<br />So, how does this process begin?<br />A vacancy become available.<br />Due to expansion of the business.<br />Replacement of staff.<br />See Box 2.1b on pg. 174.<br />…<br />
  13. 13. 2b. Recruitment and Selection<br />Once the a job analysis has been performed, several things will happen:<br />The HR manager will:<br />Produce a job advertisement and this will include…<br />A job description: outlines the details of the job<br />A person specification: gives the profile of the ideal candidate.<br />An example of a job advertisement:<br />Also see Box 2.1c for a list of skills sought by employers.<br />…<br />
  14. 14. 2c. Recruitment and Selection<br />Once the job advertisement has been finalized, the next step is to…what?<br />ADVERTISE the job.<br />The advertisement may include…<br />hours of work, rate of pay and any fringe benefits.<br />Include contact points<br />Address of business <br />Deadline of the ad.<br />A good job advertisement will hopefully attract suitable applicants. So, How do HR managers ensure this?<br />…<br />
  15. 15. 2d. Recruitment and Selection<br />They should consider the following 5 TRAPS when designing an effective ad.<br />1. Truthful: do not make false claims<br />2. Relevant: be to the point<br />3. Accurate: must be precise<br />4. Positive: help encourage people to apply<br />5. Short: space is expensive, include necessary information.<br />…<br />
  16. 16. 3. The Application Process<br />What are the three methods an applicant will use for applying for a vacancy?<br />Application form<br />Curriculum Vitae or CV / Resume<br /> Covering Letter<br />More common today to apply online, using online forms or just sending your CV via email.<br />…<br />
  17. 17. 4a. The Selection Process<br />Once the forms have been filled out and the resume send, now what?<br />The HR manager will sieve through all the resumes and forms and pick out suitable candidates.<br />They will create a short-list of people from all the applicants.<br />This short-listing process will involve comparing the CV’s of the applicants to the job description.<br />From there, you select people to interview.<br />…<br />
  18. 18. 4b. The Selection Process<br />The three main methods in selecting the best candidates are:<br />1. Interviews: <br />A video-conferencing interview<br />A Face-to-Face interview<br />Two commonly used checklist models used in interviews can be found on pg. 177, Box 2.1a<br />The objective of the interview process is to establish the best match between applicant and the job.<br />This is done by asking a series of questions:<br />Behavior based questions (assesses a person’s behavioral pattern)<br />Situation-based questions (evaluates critical thinking)<br />See pg. 178, Box 2.1d for a list of common interview questions. <br />Also review the Do’s and Don’ts for interviews on the same page.<br />…<br />
  19. 19. 4c. The Selection Process<br />The three main methods in selecting the best candidates are:<br />2. Testing: <br /> Due to the limitations of an interview testing maybe used.<br />It is more time consuming, increases the chances of hiring the right person and is cost-effective.<br />Four main types of testing:<br />1. Psychometric: assesses personality; level of motivation.<br />2. Aptitude: assesses ability and skill; problem solving and reasoning skills.<br />3. Intelligence: assesses mental ability; numeracy, literacy, and general knowledge. <br />4. Trade: assesses specific skills; useful when standards or skills can not be judged.<br />…<br />
  20. 20. 4d. The Selection Process<br />The three main methods in selecting the best candidates are:<br />3. References: <br /> written statements about an applicant from a previous employer.<br />Will usually confirm the strengths and weaknesses of an applicant.<br />Serve as a security check.<br />Now once a suitable candidate has been picked, they will receive a contract.<br />A written statement of the terms and conditions of employment. See Box 2.1f for more details on pg. 179.<br />An finally, induction; new staff receive training for their new role.<br />…<br />
  21. 21. IB Business & Management<br />Unit 2.1 <br />Lesson 3: Internal and External <br />Recruitment<br />Page 167-202<br />
  22. 22. 1. Focus Questions<br />1. What is internal and external recruitment?<br />2. What are some methods of appraisal?<br />3. How does training effect a company?<br />4. What are the employment trends?<br />…<br />
  23. 23. 2. Internal Recruitment<br />
  24. 24. 3a. External Recruitment<br />
  25. 25. 4a. Appraisals<br />Is a form of assessment.<br />What does it assess?<br />An employee’s performance.<br />Usually carried out on an annual bases.<br />
  26. 26. 4b. Appraisals<br />
  27. 27. 4c. Appraisals<br />
  28. 28. 4d. Appraisals<br />The performance appraisal will include the following steps:<br />
  29. 29. 4d. Appraisals<br />If an appraisee has an overall rating below “moderate”, the following actions can be taken:<br />
  30. 30. 5a. Training<br />What is training?<br />The process of providing opportunities for workers to acquire employment related skills and knowledge.<br />Can you think of any jobs which require constant training or upgrading of skills and knowledge?<br />The objectives of training:<br />Adapt to change<br />Develop multi-skilled workers<br />Improve quality of work<br />Enhance efficiency<br />Facilitate career and personal development<br />…<br />
  31. 31. 5b. Training<br />In order to develop a flexible workforce training and development are crucial.<br />Creating workforce flexibility refers to the ability of workers to mulitask.<br />The benefits of this are:<br />Flexible and productive<br />Financially successful<br />The limitations:<br />Can be costly<br />Loss of output<br />No guarantee that training will solve business problems<br />
  32. 32. 5c. Induction Training<br />Induction training: is aimed at introducing new employees to the organization.<br />
  33. 33. 5d. Induction Training<br />
  34. 34. 5e. On-the-job Training<br />Is training carried out at the work place.<br />It involves learning by doing.<br />“I hear and I forget. I see and I remember. I do and I understand.”<br />Confucius<br />
  35. 35. 5f. On-the-job Training<br />
  36. 36. 5g. Off-the-job Training<br />
  37. 37. 6a. Dismissal & Redundancy<br />Employee contracts can be terminated in several ways:<br />1. Dismissal<br />2. Redundancy<br />3. Retirement<br />4. Resignation <br />
  38. 38. 6b. Dismissal & Redundancy<br />Dismissal:<br />You are fired, sacked due to incompetence.<br /> Many reasons for a dismissal.<br />Not all cases of dismissal are justified.<br />Discrimination and<br />Constructive dismissal.<br />When your employer has made it difficult for the worker to continue their job.<br />
  39. 39. 6c. Dismissal & Redundancy<br />Redundancy:<br />Occurs when the employer can no longer afford to employ the worker.<br />Often referred to as retrenchments or lay-offs.<br />When you lay workers off, two methods can be used:<br />1. Voluntary redundancy:<br />When the employer asks the employee to be laid off.<br />2. Compulsory redundancy:<br />When the employer has to choose which workers to make redundant.<br />Two ways to do this:<br />A. LIFO method: last in, first out.<br />B. retention by merit method: least productive workers are made redundant.<br />Some larger business may want to redeploy its staff. <br />Is this always the best strategy?<br />
  40. 40. 7a. Changing Employment Patterns and Practices<br />Employment patterns change overtime. <br />Here are a list of these trends.<br />
  41. 41. The End.<br />