Business Management Unit 2.1 (Human Resources)

Human resources planning

Human resources planning

Describe the overall management of an organization’s workforce. It is a systematic process that assesses the current and future needs of an organization’s workforce and sets out actions necessary to meet these human resource needs through recruitment, training, financial and non - financial rewards, and organizational structures.

How can resource planning be achieved?

• Historical data and trends

• Sales and income levels

• Labor turn over rate - number of employees leaving the organization

• flexibility and workload of employees

• Demographic changes - changes in population, skills in labor force, changes in the number of graduates helps forecast

Problems that HR may face

1. Recruitment

2. Resources - waste resources in dealing with personal problems

3. reservation - lower the moral, lead to less productive employees

4. Returns - lower level of return to the business, profit and competitiveness of business will be affected

5. reputation - cannot motivate the staff

Internal and external factors that affect human resources planning

1. Size of the organization - more involvement in HR as the organization expands, more strategic

2. The strategic direction of the organization - related to the size of the organization

3. Organizational structure - the blueprint, it outlines who does what and how information flows within the organization (how responsibilities are structured in the organization)

4. finances of the organization - budget

5. Motivation in the workplace - if employees have higher motivation they will be more productive to the work

6. Corporate culture of the organization - set rules and policies in a organization

External factor that influence HR planning - beyond the control of the organization

1. Demographic change

2. Change in labor mobility

3. Immigration

4. Flexi time (Teleworking and Homeworking)

5. Gig Economy

Demographic Change

the study of population and population trends, (Indcludes: the average age of population, net migration rate, gender distribution, educational attainment levels, average household income).Labor mobility measures the extent to which workers have he ability and willingness to move between geographical locations and/or occupations for their employment. Increasing and maintaining labor mobility ensures a more efficient allocation of human resources

Change in labor mobility

Labor mobility measures the extent to which workers have he ability and willingness to move between geographical locations and/or occupations for their employment. Increasing and maintaining labor mobility ensures a more efficient allocation of human resources

Occupational - employees are willing to work on another career path/job

Geographical - employees are willing to work on another location

encourage workers to move for work purposes

Geographical - employees are willing to work on another location

Immigration

encourage workers to move for work purposes

Flexi time

Is a form of flexible work practice that enables employees to work a set number of core hours per week, often at the office during peak periods of the day and/or week.

Gig economy

refers to labor markets where workers are typically on short-term, flexible and temporary contracts. It also includes people who carry out freelance work as independent contractors.

Reasons for resistance to change in the workforce

1. Self interest

2. Low tolerance and inertia

3. Different assessment of the situation

4. Misinformation and Misunderstanding

Human resources strategies for reducing the impact of change and resistance of change

• Communicating as early as possible

• Involve direct managers and team leaders to link for personal change

• change activities

• provide and safe forum for two-way communications for clarifications to the employee

• keep track of how people are adapting to change and support them

• have a clear possible picture of the future

• provide feedback and reinforce

Forcefield analysis

driving forces - factors that push for or support change

restraining forces - factors that act againts or obstruct change

Reasons for resistance to change in the workforce

• Self-interest - People wish to protect their own self-interest. Some may resist change because they think they will be worse off. They may lack the knowledge or skills required in the new world or they may be worried they will lose their bonuses, their jobs, or their status within the business. “Why would we change what we believe in and value?”

• Low Tolerance and Inertia - Many people need security predictability and stability of their work. Disrupts the normality and comfortability

• Different assessment of the situation - Disagreement about the need for change or what the change needs to be, they feel they have a better solution

• Misinformation and Misunderstanding - Misinformed about the position of the business. People may not understand why change is needed. Employees may not appreciate there is a need for change and think that everything is fine as it is.

Human resources strategies for reducing the impact of change and resistance of change

• Self-interest - People wish to protect their own self-interest. Some may resist change because they think they will be worse off. They may lack the knowledge or skills required in the new world or they may be worried they will lose their bonuses, their jobs, or their status within the business. “Why would we change what we believe in and value?”

• Low Tolerance and Inertia - Many people need security predictability and stability of their work. Disrupts the normality and comfortability

• Different assessment of the situation - Disagreement about the need for change or what the change needs to be, they feel they have a better solution

• Misinformation and Misunderstanding - Misinformed about the position of the business. People may not understand why change is needed. Employees may not appreciate there is a need for change and think that everything is fine as it is.