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2.1 Functions and evolution of human resources management 2014

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Deborah Kelly

on 21 February 2016

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Transcript of 2.1 Functions and evolution of human resources management 2014

2.1 Functions and evolution of human resources management
Human resource planning
Labour turnover
Factors that influence HR planning
Recruitment
Training
Appraisal
Dismissal and redundancy
Work pattern changes
Outsourcing, offshoring and re-shoring

Human Resource (HR) Management
or
(HRM)
is the management function of recruiting capable, flexible and committed people, managing and rewarding their performance and developing their key skills to the benefit of a business in order to meet its organizational objectives.
Human Resource (Workforce) planning
- analyzing and forecasting both the current and future number of employees needed and the skills of those employees that will be required by an organization to achieve its objectives. It is a continuous process.
People are a businesses most valuable resource!
Labour Turnover
Labour turnover refers to the movement of employees into and out of a business in a given time period (usually a year) and is an indicator of how stable a business is.
Labour turnover is measured by the following formula:
Labour turnover =
number of staff leaving

total number of staff
x 100
TRY: ISU has 46 overseas hire teachers. This year 9 teachers are leaving. What is the labour turnover rate?
Internal and External factors that influence human resource planning
Many factors can influence an organizations HR plan. Even before a business employs someone, some
external factors
can have an effect on the pool of labour available for potential employment. Also the business itself may change and
internal factors
influence the HR plan in place.
Examples of External Factors
Technological change
- improvements in ICT can lead to more teleworking from home.
Government regulations
- changes in laws or regulations about health and safety, maximum working hours, equality in the workplace and age of retirement.
Demographic change
- such as an aging population, reduced fertility rates, or changes in internal migration pattern.
Social trends
- changes in the role of women, an increase in the number of single parent families or the importance of the "work-life" balance.
The state of the economy
- economic boom vs a recession
Changes in education
- rising or falling education levels and availability of courses/programmes
Labour mobility
- occupational mobility (changing occupations) or geographical mobility (changing locations)
Examples of Internal Factors
Changes in business organization
- an acquisition or reorganization to better meet strategic plans

Changes in labour relations
- unions vs no union

Changes in business strategy

Changes in business finance

Recruitment
The process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates for the job and selecting the best one. There are usually three stages:
Identification/ Job analysis
- Through examining the job components, a
job description
(a document that outlines the details of a particular job) and
person specification
(an outline of the ideal candidate such as their qualifications, skills and experiences) are determined.

Application
- an
advertisement
is created and candidates apply for the job (application form, cover letter and resume). A shortlist of candidates is determined. These are the candidates that meet the requirements and will be interviewed.

Selection
-
Interviews
are held, references checked, sometimes testing occurs as well. A job offer is made to the best candidate.
Getting the right person is essential.
Case Study: Economic downturn results in Electrolux job losses.

Electrolux, a world-leading kitchen appliance maker, made a loss in the first three months of 2008. The company was forced to cut costs because demand for its products was falling, especially in the USA. "Demand for our products has been lower than our forecasts and this has hit our profits." The company planned to cut 400 jobs in its European factories to save $72 million.

1. Explain why HR planning is important to a business such as Electrolux.

2. Apart from a global downturn in demand, explain three factors that could influence the numbers of workers required by Electrolux.
Do Aldi Workforce Planning Questions.
Internal and External Recruitment
1. Draw up a
job description
for a _____________ teacher at ISU.

2. Draw up a detailed
person specification
for this post.

3. Sketch a
draft
of an eye catching and effective
website advertisement
for this job including key features from the job description and person specification.

4. What are some
interview questions
Mr. Stearns should ask?
TASK: Let's help Mr. Stearns with his upcoming recruitment.


Internal recruitment
is when the business looks to fill the vacancy from within its existing workforce.
External recruitment
is when the business looks to fill the vacancy from any suitable applicant outside the business.
+ cost effective
+ less down time
+ Less risk
+ Motivational
- fewer applicants
- "Dead wood"
- time-consuming
- internal politics
+ "new blood"
+ wider range of experiences
+ larger pool of applicants
- greater degree of uncertainty
- time-consuming
- expensive
Training
After recruitment comes training. This can help an employees professional development (PD). It can keep the employee up to date with the latest ideas and technologies. It may lead to an employee finding a new career path by being re skilled.
Training is important for a business. It can:
improve the quality of the work
lead to greater productivity
motivate the employee
reduce labour turnover
Types of Training
Induction
- training that focuses on making an employee familiar with the way the business functions and with the lines of authority (who to report to). A good induction program helps to ensure that new employees settle in quickly.

On-the-job
- when employees are trained while they are doing their normal job. Often this occurs throught mentoring which is when an experienced employee guides the employee being trained. This could be "shadowing" where an employee follows or "shadows" another to learn a new skill.
Off- the-job
- when an employee is given time off from work to attend training away from the job. The training may be a workshop, conference or course run by consultants, or educational institutions. Often companies support further education through MBA programs or university courses.
Another way to think about training is not how and where it occurs but rather what the aim of the training is. Most often, training is about learning skills or knowledge to enhance job performance. Other forms of training help employees in other ways such as:

Cognitive training
- this is training that helps employees develop their thinking and processing skills. The assumption is that they will be able to make quicker and more effective decisions.

Behavioural training
- this helps employees develop their interpersonal skills (how they work with others) and intrapersonal skills (how they manage emotions). Behavioural training is useful for employees working in project teams and positions of leadership.
Appraisal
Appraisal is the formal assessment of an employee's performance in fulfilling his/her job based on the tasks and responsibilities set out in their job description.









Under an appraisal system employees may respond to or even initiate discussion. Communication is two way and managers include constructive feedback in order to foster a positive and inclusive working environment. Appraisal is supposed to be a non-threatening, non-judgemental and supportive process.
Do Aldi training and development questions.
Online shoe retailer Zappos and their hiring process.
Types of Appraisal
formative
summative
360-degree feedback
self-appraisal
Formative
- because appraisal is intended to be a learning process, often it is a continuous. The focus is to five employees feedback when they have done well and also in areas in which they have had difficulties. The idea is to help employees improve.

Summative
- this measures an employee's performance according to set standards. A summative assessment has an element of making a judgement of whether an employee has passed or failed. Summative assessments tests employee's knowledge and skills against clear and explicit criteria and then sums up how an employee has performed against the standards. Summative appraisal is usually conducted at the end of a project, a contract or specific goal. Failure does not necessarily lead to to termination.
360 degree
- this method provides each employee with the opportunity to receive performance appraisal not only from their line manager but also from four to eight co-workers, subordinates and even customers or clients. It is a complex appraisal as it has multiple perspectives. It is commonly used with CEOs and other executives who interact with several groups of stakeholders.
Self-appraisal
- this can be used as part of the. Individual employees reflect on their own performance. Usually this is done with the help of a self-appraisal form on which employees rate themselves on various performance indicators. Typically employees can also indicate training needs, and discuss their accomplishments, strengths, weaknesses and any problems faced. It can be used by itself or with other performance appraisal processes.
The Office UK - Big Keith's appraisal
Termination, dismissal and redundancy
The final stage in the HR plan is when an employee leaves the business. This happens because:

resignation
- an employee chooses to leave the business
dismissal
- the business decides that the employee should no longer work there
retirement
- when workers because of their age retire from the workforce.
redundancy
- (layoffs) the job ceases to exist
Dismissal
- when a worker is told to leave the job because of inappropriate behaviour or they have repeatedly failed to carry out their duties.

Incompetence
- a lack of ability or effectiveness in carrying out the job.
Misconduct
- unacceptable behaviour (late, harrassment of ees, rude to customers...)
Gross misconduct
- theft, fraud, sexual harrassment, alcohol use at work
Legal requirements
- if they do not have the necessary skills or requirements for the job (perhaps falsified documents)
In order to dismiss an employee (except for gross misconduct which is immediate), there are usually three steps:

First
- an initial warning - can be verbal or in writing.

Second
- an official written warning and a formal meeting with the employer. An action plan and time frame for improvement are put in writing.

Third
- any further cases of misconduct result in dismissal
Note that not all cases of dismissal are justified.
Unfair dismissal
occurs when an employee is dismissed without a valid or legal reason. If the employee can prove they were wrongly dismissed they can get their job back or financial compensation.
Redundancy
- occurs when a business no longer has any work for the employee.

Why?
a drop in demand for the business's product
changing market circumstances
a recession
the business becomes insolvent or bankrupt
the job a person was doing is replaced by a machine
relocation of the business
restructure or reorganization of the business
a merger or takeover
If an employee loses a job through no fault of their own, they normally receive a redundancy package.

When a large number of positions are made redundant, deciding which employees to retain can be difficult for managers. There would normally have two options to offer:

Voluntary redundancy
- some employees chose to be redundant.

Involuntary redundancy
- it could be based on age, years of service or other criteria.
Changes in work patterns, practices and preferences
Over the past 50 years there have been many changes in work patterns stemming from external factors such as social trends to have a better work-life balance and many businesses are trying to respond to the desires of employees.

Other factors are:
privatization and the move from public to private sector employment
increase migration in a country, and across the globe
increasing # of females in the workforce
changing educational opportunities
increasing urbanization and rise in stress levels
an aging population and increasing average age of workforce.
Changes in work patterns
The types of jobs required by businesses as well as the types of jobs people want has changed.
Top 10 least sought after
jobs in the US
1. News reporter
2. Lumberjack
3. Military personnel
4. Actor
5. Oil rig worker
6. Dairy farmer
7. Meter reader
8. Mail carrier
9. Roofer
10 Flight attendant
US 10 most popular
careers for 2015
1. Network Systems Analyst
2. Physician's Assistant
3. Medical Office Assistant
4. Medical Records Assistant
5. Software Engineers
6. Physical Therapists
7. Fitness Trainers
8. Database Administrators
9. Veterinary Technicians
10 Dental Hygienist
Changes in work practices
Work practices in decline:
Full-time work
- when employees work the maximum hours per week accepted by the law.


Permanent contract
s - An employee who has been hired for a position without a predetermined time limit.
Work practices on the increase:
There is greater demand for more flexible working practices such as:

Part-time work
- employees work less than the full time maximum hours.
Temporary
- work that is on a fixed term contract of a temporary nature.
Freelance
- when someone who is self-employed works for several different employers at the same time.
Teleworking
- work taking place from home or a telecommunications center. Often requires a core number of hours in the center.
Homeworking
- an employee works from home. There is usually an expectation for some core time in the office.
Flexitime
- work involving a set number of hours of the employees own choosing. Often there is a core period that they have to be at the office and the rest is up to them.
Casual Fridays
- an employee is allowed to wear less formal dress on Friday's.
Three-day weekend
- Instead of working 5 - 8 hour days, the employee works 4 days of 10 hours and has a 3-day weekend.
Changes in work preferences
Instead of working continuously for 20 - 30 years for the same company, many employees are adapting their work routines to suit changing lifestyles.

Career breaks
- an employee decides to stop working for a time , usually one year before returning to work in the same career. The employer agrees and will offer a "sabbatical".
Job share
- two or more employees decide to share a job in order to free up time for other activities.
Downshifting
- an employee gives up a senior position or highly paid position in order to career change into another lower-paid field or area of interest.
Study leave
- an employee is granted time off work to acquire a new qualification such as an MBA.
Work Life Balance in France

In 2000, the French government reduced the number of hours in the work week from 39 - 35 hours. Now under a new deal, French employers have a legally binding agreement that requires employers to make sure staff "disconnect" outside of working hours.

The deal, which affects ~ 250000 employees in the technology and consultancy sector (Including French Google, Facebook, Deloitte and PwC), means that employees will have to resist the temptation to look at work-related material on their computers or phone during their free time. Companies must ensure that their employees come under no pressure to do so.

1. Explain the impact on:
a) employers
b) employees
2. Discuss the impact this change might have on the culture of businesses in France.
Read the articles:

Flexible work hours extended to all (UK)
Flexible working hours can make you ill (+ paternity leave)
Flexible working
practices at
Developing flexible working practices...
Read and respond to the article.
Six important HR lessons from Legendary ex- HR director of Netflix.
Read and respond to the article

"The End of the Office."
Outsourcing
HR costs can be significant for many businesses, particularly for service based businesses in the tertiary or quaternary sectors.
Outsourcing is also known as subcontracting or contracting out work. Often a business will outsource parts of its business operations in order to focus on its core activities. Human Resources is often outsourced as well as production/ manufacturing and distribution. This enables a firm to cut costs and gain a competitive advantage.
Offshoring
An extension of outsourcing is offshoring. This is when a business outsources outside of its home country. With globalization and improved global communication, offshoring has been a growth area is the modern business environment.
Examples of typical business functions that can be outsourced/ offshored:
in
marketing
, using an advertising agency
in
operations management
, licensing a producer to make your product
in
HR
, employing an agency to "headhunt" potential staff
in
finance
, hiring accountants to run an eternal audit.
CUEGIS and Human Resources
Ethics
It is easy to say that, because production costs are cheaper elsewhere, then production should be moved offshore. But there are many ethical implications for businesses to consider.

Think about the people in the original location, and the people in the "offshore" location - what effect will off-shoring have one them.
Innovation
can have a major impact on an HR plan. A business committed to being "innovative" must have a greater strategic focus on HR than any other business function. Innovations come from people. The business will not be innovative unless it recruits and retains the right people.
Google prides itself on being innovative and employing creative individuals.
Globalization
- requires HR managers to think about how ICT contributes to workforce planning. For example, in addition to their own websites, some businesses are also using LinkedIn and Facebook as part of their recruitment practice.

Potential ees too need to think about what is on their FB - employers often do a check before hiring. Other ees have been fired due to FB postings.

Managers in multinational companies use ICT as a tool to improve the capabilities, efficiency and functions of the organization and its global workforce.
Cultural Differences
Culture can have a significant effect on the HR plan for any business that employs a multicultural workforce.

Think about the following cultural differences that could impact a HR plan.
Body language
Personal space
Humor
Dress
Individualism
Power distance
Uncertainty avoidance
Long-term planning
Different cultures have different expectations. Training people to work in diverse workforces can reduce potential misunderstandings and friction that can emerge from cultural differences. As well as take advantage of the benefits of a diverse workforce such as increased innovation and creativity.
2.1 - Knowledge Worksheet
Do:
Read Articles:
workforce planning - The Challenge - Securing the Workforce of Tomorrow
http://www.finextra.com/blogs/fullblog.aspx?blogid=10456
offshoring and reshoring - Why it is time to bring manufacturing back to the US
-http://www.forbes.com/sites/forbesleadershipforum/2015/02/02/why-its-time-to-bring-manufacturing-back-home-to-the-u-s/
Re-shoring
Article: Reshoring Or Offshoring: U.S. Manufacturing Forecast 2015-2016
http://www.forbes.com/sites/billconerly/2014/09/02/reshoring-or-offshoring-u-s-manufacturing-forecast-2015-2016/
Re-shoring is the reversal of offshore outsourcing, ie the transfer of business operations back to their countries of origin. Re-shoring has become more popular as the cost-effectiveness of offshoring has declined for many European and American companies.

Reasons for re-shoring:
Product recalls
Mass media coverage of unethical business practices
China has lost its status as the "workshop factory" of the world
Transportation costs are rising
Domestic governments are supporting reshoring to bring jobs back
What is flexible working?
Malteaser Bunny shortage -
Case Study.
Questions:
1. To what extent do you think Mars was right to
outsource the prodution
of its Malteaser Bunnies? [10 points]

2. Evaluate the issues that might be involved in implementing a
workforce plan
to bring production of Malteaser Bunnies back to the main Mars factory in west London. [10 points]
Read
Full transcript