IB2 SL Business Management: Introduction to Human Resource Management

2.1 Introduction to HRM

Brainstorm

GROWTH

TOGETHER

Benefits

Skill

Promotion

Career

TEAMWORK

Vision

Y

30% Travel

1

Book

INER

+

Ath care

HUMAN

RESOURCESIB Learning Outcomes

• Know and understand the role of human resource management
• Evaluate: Internal and external factors that influence human resource planning (for example demographic change, change in labour mobility, immigration, flexi-time, gig economy)

EMPLOYEE

STRATEGIC

OBJECTIVES

TRAINING

HRM

HUMAN RESOURCE

MANAGEMENT

SUCCESS

EMPLOYEE

RECUITMENT

$

BUSINESS

VALUE

REWARDING

Need for Human Resource Planning

Employment

Unemployment

Technological

Change

Demographic

Change

Skill Shortage

Governmental

Influences

Legislative Control

Impact of the

Pressure Group

Systems Approach

=

-

Lead Time

What is HRM?

Defined: Human resource management (HRM) is the strategic approach to the effective management and development of an organisation's workers, so that they help the business to achieve its organisational objectives and gain a competitive advantage.

What sort of things do you think are some of the functions of HRM?

• HRM includes functions such as:
• Human resource planning (also called workforce planning)
• Recruitment, selection, and induction of new employees
• Training and development of staff
• Performance management and staff appraisals
• Reviewing pay and remuneration packages
• Disciplinary and grievance problems

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https://youtu.be/zqcXlpMa3wI

Human Resource Management in 10 Minutes

https://youtu.be/bI9RZjF-538?si=tKpS0eIInne5USMU

Human Resource Planning Defined

Defined: Human resource planning (or workforce planning) is the management process of analyzing and forecasting an organization's current and future staffing needs (# of staff needed and skills required) to achieve its objectives.

Effective

HR Planning

Right

People

Right

Capabilities

Right

Time

Right

Place

The HRM Cycle

➔

Human resource planning is an ongoing / continuous process.

◆

It NEVER stops!

Monitor &

Evaluate

Workforce

Analysis

Implement

Strategies

Workforce

Planning

Framework

Forecast

Future Needs

Develop

Strategies

Analyse

Gaps

Human Resource Planning: Short-term and Long-term

• Short-term workforce planning deals with existing and upcoming demand of a firm

What may this include?

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• Long-term workforce planning deals with human resource needs of the business in the foreseeable future

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(e.g. Walt Disney recruited and trained employees up to 2 years before Hong Kong Disneyland was opened).

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2 Main Stages of HR Planning

1. Forecasting the # of employees required

This depends on several factors such as:

• Forecasting demand for the firm's product
• The productivity level of staff
• The objectives of the business
• Labour turnover and absenteeism rates

2. Forecasting the skill required

This depends on factors such as:

• The pace of technological change in the industry
• The need for flexible or multi-skilled staff

CAREER

BUILDER

TRAINING

SKILL

ADVANCED

TRAINING

COMPETENCE

LEARNING

VNOWLEDGE

The HR Plan (workforce plan)

Defined: The HR plan or workforce plan is the framework for how to get the most from their human resources.

Open new

product line

Develop staffing

for new

installation

Recruit skilled

workers

2

3

Recruiting and

training

programs

feasible

1

Open new

factory and

distribution

system

Develop technical

training programs

·Production

workers

·Supervisors

Transfer

managers from

other facilities

· Technical staff

·Other managers

4

Develop

new

objectives

and plans

Recruit

managers from

outside

3.

Too costly to

hire from

outside

5

• In large businesses, this plan will almost always be a written document that can be referred to.

Transfers

infeasible

because of

lack of

managers with

right skills

• With smaller businesses, the plan may not be written but decided upon by and remain in the head of the director of HR or the owner of the small business.

HR and Innovative Technologies

• HR managers increasingly rely on innovative technologies as part of their work.

Can you think of ways in which this may happen?

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ing

3+

J

➔

The huge popularity of social media networks has created opportunities for organisations to attract workers.

★

LinkedIn, for example, is being increasingly used by businesses to headhunt employees.

in

Linked in

ACTIVITY: Google's Innovative Culture

Watch this Wall

Street Journal

video clip about the

innovative culture

at Google.

The company

prides itself on

being innovative,

so hiring

employees who are

free to be highly

creative individuals

is vital.

WSJ

Inside Look at Google's New York Offices

Ļ

Watch later

Share

WSJ

Watch on

YouTube

https://youtu.be/bpm_LIyMtMY

HRM and Business Objectives

• Effective HRM is vital for any org. to achieve its business objectives.
• The effectiveness of workforce planning has a major impact on the current and future success of the org.
• HR managers play a vital role in ensuring that the right people in the right numbers are hired, at the right time and deployed in the right place.
• There are numerous internal and external factors that influence human resource planning.

What can these include?

Demographic Changes

Change in Labour Mobility

Immigration

Flexitime

The gig economy

Internal Factors that Influence HR Planning

What kind of things could this include?

Remuneration to its staff.

What does this mean?

What Is Remuneration

Companies/Businesses

Monetary compensation

Non-monetary compensation

Full Time/Part-Time Employees

Independent Contractors

->

Remuneration

WallStreetMojo

Examples of such interrelated internal factors that influence human resource planning include:

size?

of the org - The larger the firm, the more involved it needs to be in HR planning.

- They recruit more workers, are more involved in training, appraisals and other HR matters.

Internal Factors that Influence HR Planning: Business Focus and Structure

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focus

project

process

confusion

journey ž

destination

planning

dilemma

diagram

consulting

Innovation

direct

education

development advertisement

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communication

compass

advice

vision

solution investment

revenue inspiration

choosing plan goal decision

path success

marketing opportunity

strategy

direction

choice D

successful

achievement

commerce design

➔

For example, if growth is a priority, the org will plan to recruit more workers and internally promote some employees to senior positions.

➔

A clear org structure helps workforce planning.

E.g., the HR manager can identify vacant positions and jobs that are redundant, thus can plan how best to address these gaps in the firm.

Organizational Structure

MD/CEO

DIRECTOR-

OPERATIONS

DIRECTOR-

MARKETING

DIRECTOR-

ACCOUNTS &

FINANCE

DIRECTOR-

HUMAN

RESOURCES

GM -

MANUFAC

TURING

GM

QUALITY

GM- SALES

GM - CRM

GM

ACCOUNT

S

GM-

FINANCE

GM- HR

CHIEF

PLANT

MANAGER

CHIEF

QUALITY

MANAGER

CHIEF

MANGER-

SALES

CHIEF

MANAGER

- CRM

MANAGER

ACCOUNT

S

CHIEF

MANAGER

FINANCE

CHIEF HR

MANAGER

MANAGER,

WORKERS

MANAGER

AND

WORKER

MANGER

SLAES,SALES

EXECUTIVE

MANGER

CRM,CRM

EXECUTIVE

MANGER

ACCOUNTS,

ACCOUNTS

EXECUTIVE

MANGER

FINANCE,

MANGER

HR

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$

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FINANCE

➔

Effective workforce planning cannot happen without sufficient funding.

What elements of HRM require financial assistance?

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problem

perspective

profitability

structure

brade

organization guidance

management

leadership

finance

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strategic

motivation

teamwork

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Internal Factors that Influence HR Planning: Motivation and Culture

motivation

>

The higher the level of motivation, the more productive workers tend to be, and the lower the labour turnover.

>

The HR department needs to keep records of why people leave the org. in order to retain their employees.

➔

This influences its approach to HR matters such as working hours, flexitime, teamworking, appraisals, job sharing, training and professional development opportunities, dismissal and redundancies, outsourcing, and the internal promotion of staff.

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CULTURE

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88ATL Activity - Thinking Skills

London receptionist 'sent home for not wearing heels'

11 May 2016

https://www.bbc.com/news/uk-england-london-36264229

Read the following

articles and consider

what your views are of

these HR issues

Construction firm Mears bans workers from having beards

https://www.theguardian.com/business/2017/jun/01/construction-firm- mears-bans-workers-from-having-beards

Workers must be clean shaven to wear dust masks effectively, firm tells staff

EU workplace headscarf ban 'can be legal', says ECJ

( 14 March 2017 . com.https://www.bbc.com/news/world-europe-39264845

External Factors that Influence HR Planning

What kind of things could this include?

EU

21 out of 27 EU Member States have a national minimum wage

332 BG

500 LV

EUR per month

515 RO

<1 000

542 HU

1 000 -1 500

624 HR

>1500

646 SK

no minimum wage

652

CZ

654 EE

655 PL

730 LT

774 EL

792 MT

823

PT

1 074

SI

1 126

ES

1 603

FR

1 621

DE

1 658

BE

1 725

NL

1 775

IE

2 257

LU

Cartography: Eurostat - IMAGE, 01/2022

Administrative boundaries: @ EuroGeographics O UN-FAO O Turkstat

ec.europa.eu/eurostat

Profits

EMPLOYMENT LAW

Benefits

Skill

Promotion

COMPENSATION

Career

WORKING

HOURS

Travel

.+

Safety

Bonus

AGREEMENT

Why is this considered external?

Minimum wages

January 2022

External Factors that Influence HR Planning: Demographic Change

Demographic

change

>

1. Demographic changes

• This is the study of populations and their trends
• It impacts the supply of human resources in a country.
• Changes in the average age, net birth rate, ethnic makeup and distribution, average household incomes, the retirement age, gender distribution, educational achievements, etc. can all dramatically impact a firm's HR planning.
• This can also impact consumption patterns, which will also impact a firm's workforce planning.