Topic 2: Human Resource Management

2.1 Functions and Evolutions of Human Resource Planning

Workforce/human resource planning:Process of anticipating current and future demand for workers in both the short and long term.Lessens hiring mistakes at the cost of time and money.A workforce plan includes: Careful consideration of current abilities and what will be needed in the future (short-term or long-term) Identifying gaps and considering ways of addressing these Noting any training needs Developing training, recruitment, and other personnel policies (e.g. appraisals, employee welfare) Considers labour demand of an organisation, which depends on: Historical data: average length of service, labour turnover rate, etc. Workload, specialisations, and flexibility of workforce e.g. flexible workforce can deal with sudden shortage of staff Capital intensity (i.e. use of machinery). Work study (time and motion study or efficiency studies), best number of people to complete a job efficiently.Derived demand (from forecast output).Demand for labour depends on demand for product.Natural wastage (aging/retirement).Staff/labour turnoverPercentage of workforce that leaves the company in a time period: (Number of leavers / Total number of staff) x 100Low turnover suggests imcompetent employees and poor job satisfaction.Reason why people leave their jobs: CLAMPS (M.J. Yates): challenge, location, advancement, money, pride, (job) security Poor morale, seen in: militant workforce, frequent union representation to management, low suggestion rates, widespread rumours Factors affecting workforce planSupply of labourDemographic changes: Net birth rate Net migration rate Life expectancy and retirement age Workforce flexbility, skills, and education Women in workforce Mobility of labour (geographic and occupational) Flexibility of internal workforceCost of livingCos and availability of transportationRate of unemploymentGovernmentFinancesStructure of businessEffectiveness of communicationMorale of workforceLeadership style of managersNeed for change/reaction to changeRecruitment processJob analysis: Skill and training required for the job Qualifications and personal qualities needed Rewards needed to recruit and retain the job holder Job description: Outlines the details of the job (i.e. duties and responsibilities) Element of flexibility - not incredibly specific ("Any other reasonable job assigned by employer") Person specification: Profiles ideal candidate E.g. type of engineer, experience, skills Job advertisement:Internal (within company):