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 turnover
Percentage of workforce that leaves the company in a time period: (Number of leavers / Total number of staff) x 100
Low 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 plan
Supply of labour
Demographic 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 workforce
Cost of living
Cos and availability of transportation
Rate of unemployment
Government
Finances
Structure of business
Effectiveness of communication
Morale of workforce
Leadership style of managers
Need for change/reaction to change

Recruitment process
Job 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):

	Created by Chloe Schuster over 7 years ago

International Baccalaureate (IB) Business Management (Human resource management) Note on Topic 2: Human Resource Management, created by Chloe Schuster on 24/02/2017.