Why is HR important? Main tasks, the latest trend.

·      One of the main resources needed by businesses to operate. (to provide services, one should be satisfied, loyal, and engaged)

·      Successful businesses are those that retain the best human resources and are capable of providing the best outcomes.

·      (Department) The process of hiring, developing, and retaining human resources (hired HR to keep the employees and not to fire them).

Labour Turnover

The employees into and out of a business in a given period (usually a year)

An indicator of how stable a business is.

Compare to yourself to define healthiness.

External factors: outside the business organization that affect the whole business.

1.     Technological change →improvement or innovation that affects HR activities. (Use LinkedIn to hire employees)

2.     Government regulations/laws →Impact on the structure of a workforce (laws on maximum working hours)

3.     Demographic change →(age, gender, race, income, education, and preferences) Influences the supply of labour. (More Female, ageing, migration, population)

4.     Social trends →Individuals' behavior, reflects competitors’ advantages,

5.     State of the economy →Hire more people/increase salaries to keep the advanced employees when they have a good economic status. (Higher reflects higher sales)

6.     Changes to education →New (more specialized) majors (departments like social media marketing).

7.     Labour mobility →Movements between occupations, movements between locations.

Internal factors: the internal environment impacts on the firm’s current HR plan or employment policies.

1.     Changes in the business organization →New branches = new employees.

2.     Changes to business finance.

3.     Changes in labor reactions. (Salaries & motivations & modify the decisions to keep qualified employees)

4.     Changes in business strategy →New management = higher staff turnover.

The HR (or workforce) plan

Recruitment: to hire the right employees at the right place and time.

Training: to develop employees' skills and knowledge in order to be more qualified.

Appraisal: to evaluate employees’ performance to check if they meet the expected one.

Termination (redundancy) or dismissal: to manage the situation when the employee leaves.

The Process of Recruitment

1.     Identification

Internal recruitment

External recruitment

2.     Application

Application forms/CV

3.     Selection Process

Reduce the list of suitable candidates for interview,

Call for references from previous employees.

Interview

Testing: skills, psychometric, intelligence, achievement, and group situational.

Training

Improve the quality of the work, lead to greater productivity, motivate the employees, and reduce labor turnover.

Forms of Training:

Induction: train directly after hiring them, by outlining aspects such as its mission and culture.

On-the-job (shadowing): learn from experienced colleagues in the workplace by observing them undertaking the role and its tasks. (Direct instructions)

Off-the-job training: Sent to a location to learn a skill or acquire knowledge.

• Removed from work pressure.

• Groups of trainees.

• Effective for developing new skills.

Cognitive training (technical skills): targets intellectual skills rather than specific vocational abilities.

Behavioral training (in general as a worker): Focus on employees’ interpersonal skills. (Communication) Intrapersonal (control your temper).

Appraisal

Check if the employees are on the right track. (Not an award or publishing tool)

Forms of Appraisal

Formative appraisal →Check specific skills, 2-3 times per year.

Summative appraisal →Check general skills that all employees should obtain, once per year.

Self-appraisal →Employees reflect their own performance.

360-degree feedback →Feedback from stakeholders, 8-10 people to describe the individual’s performance. (Manager, customer, subordinate, and co-worker)

Termination, Dismissal and Redundancy

Termination: when an employee chooses to leave.

Dismissal: when the business fired people.

Redundancy: when the employee and the employer agree.

Why should a company have a Low dismissal rate?

• Incomplete duties.

• Demotivate.

• Lower profit, more costs on finding new employees→ High switching cost (time and money)

• Legal issues.

• Brand image. (Affects relationship with the stakeholders)

What leads to Termination (when an employee chooses to leave):

• Career change.

• Professional development.

• Promotion.

• Retirement.

• Lifestyle choice.

• Family reasons.

What leads to Dismissal (when the business fires people)?

• Continuously missing work

• Poor discipline at work→Affect the working environment.

• Drug/alcohol abuse

• Theft or dishonesty

• Criminal

• Unresolvable clash with a co-worker

• The employee refused to implement a change in the business.

What leads to Redundancy (agreement)?

• A drop in demand for the business’s products

• Changing market circumstances

• A recession (the sales of the whole market dropped)

• Restructuring the industry (when machines take employees' jobs)

• Not able to pay.

• Relocated (employees can’t reach the workplace and tend to find another one)

2 Types of Redundancy

Voluntary: Directly approved.

Involuntary: The employer asks, but the employee disagrees. After the communication, they agree.

Changes in the working environment, work practice, and work preferences. 

Changes in the working environment

• Rise of privatization (public sector to private sector →the private sector will get more responsibilities to enhance business productivity and performance)

• Increased migration of potential employees in a country or region and across the globe.

• Increasing participation of females

• An ageing population

• Increasing urbanization and the consequent rise in stress levels.

• Changing educational opportunities.

Changes in work practices

Full-time work →permanent contracts (can work less)

• Flexible Working

• Temporary

• Part-time

• Flextime

• Portfolio working

• Teleworking (homeworking)

Changes in work preferences

• Career breaks

• Job share

• Downshifting→The employees want to have lower positions for lower pressure.

• Study leave

Outsourcing and Off-Shoring Strategies

Outsourcing: to assign an operation to an international company.

• Manage fewer employees.

• Increased efficiency

• Access to skills

• Variable capacity

• Lower labour costs

• Improved focus on core business activities

Off-shoring: transfer of a business function or activity overseas.

• Lower costs

• Easier access to the global workforce

The influence of innovation, ethics, and cultural differences

Impact of Innovation

• Impact of Ethics→Acceptable and unacceptable behavior in the community

• The notice period for dismissal.

• Discrimination

• Restructuring

• Health and Safety

• Rights in privacy

Impact of Culture: significant on the HR plan.

• Different power distance (how the manager can be reached by the employees)

• Individualism