2.

1 Human Resources Planning

Businesses aim to recruit people who will help them to meet their aims and objectives. HR planning is quite complex and incorporates:

Workforce the labour force of the nation; anyone capable of working. Alternatively, this may be confined to just a single business. Also called the labour force.

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Roles of HR Management Workforce planning Recruitment, selection, induction Training and development Performance management and appraisals Promotion and relocation of staff Reviewing remuneration packages Disciplinary and grievance procedures Staff welfare

People can add value to the business output, especially since they can enhance the purchasing experience for customers.

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Demographic Changes These changes affect the supply of labour. By understanding these changes, the business can respond appropriately.

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Geographical Mobility The ability of people to move locations for work, due to factors such as family ties, costs, language, culture and fear of the unknown. Occupational Mobility The ability of people to move positions or industries, due to factors such as education, experience, age, specialisation and discrimination.

Other things which affect the supply of human resources are: Internal workforce Competition Cost of living Costs and availability of transport Unemployment

Another factor which has begun to emerge recently is the aging population of many countries and areas. This creates many issues because there are a higher number of people who are not able to work, and they become dependent on tax payers to support them. It also reduces the labour mobility of the region because older people are less flexible when it comes to location and re-skilling. This also changes consumption patterns, as the spending habits of young people differ greatly from those of old people. In addition, this also changes the employment patterns, increasing the average age of people entering the workforce and meaning that businesses need to hire people over retirement age.

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Workforce Planning
This is the process of predicting demand for labour in a business, both now and for changes in the future. In the short term, they look at demand in the immediate future with employees moving to another business, retiring or going on maternity leave. In the long term, they need to be able to anticipate the conditions of the labour market in relation to their future growth plans. This depends on:

When there is natural wastage, or people leaving who are not replaced, this causes a decline in demand for labour. This is most common when organisations restructure, or the employee retires or resigns. Of course, it can cost a business a lot of time and money to do all this research and planning, however the long-term benefits of it may pay it off.

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Job analysis is done before workers are employed to identify all aspects of the job in preparation for creating the job description and person specification. It will look at the skills and training needed to do the work, qualifications and personal qualities that suit the job, and the rewards that would be needed in order to recruit and retain the person who fills that position. Firms that employ more part-time and temporary staff tend to have a high staff turnover rate. However, employees may often leave the business for other reasons, such as challenge, location, advancement, money, prestige, and job security. An organisation can reduce its turnover rate by offering more training and development, as this boosts morale, as well as fulfilling their career development needs.

Recruitment and Selection

This is a costly process, both in time and money, so it should be done well to reduce these costs. Once a position in an organisation is made available, a number of steps are followed to recruit the best possible person to perform the roles of that position. These are shown on the next page.

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The job description is created to outline the details of the job. This would include information like the name of the position, responsibilities and roles in the organisation. In a nutshell, it describes exactly what the job requires.

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A person specification details what the ideal candidate for the candidate for the job is like. As such, it includes qualifications, skills and any previous experience that would make a person suitable for the position. Other personal characteristics may also be sought after, such as physical attributes and leadership skills. This is used in conjunction with the job description during the rest of the process in order to select the best candidate, and then later in training and appraisals.

The purpose of a job advertisement is to get the right people to apply for the job. The job description and person specification are used to make sure that necessary details are mentioned. The advertisement should be truthful, relevant, accurate, positive, and short. They should also mention the hours, pay and any fringe benefits, along with business contact details. The advertisement may be placed within the organisation or outside using various media, depending on the nature of the firm and the type of person they are looking for.

From there, the application process can begin. Candidates would submit an application form, CV [Curriculum Vitae] and cover letter. The business can create the application form to suit their needs and ensure they receive the information they need. The CV, or resume, details the employment history, education and skills of the candidate. The cover letter is specific to the position, introducing the candidate, which job they are applying for and why they should be considered. These days, this is frequently done online to save costs.

Once the applications have been received, the business will begin the selection process. They will create a short-list of the most suitable applicants, who are then invited to an interview, testing and checking their references.

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An interview is a two-way process of dialogue between an interviewer and an interviewee. These give the business a chance to meet the candidates face-to-face, and make more informed decisions, if done properly. In addition, the candidate can seek further information. The interview

A good interview should be well planned and conducted professionally. There should be no disruptions, questions prepared, job description and person specification available and the interviewer should have a good knowledge of the candidates CV.

There are many methods available for conducting interviews, especially with current technologies. These can range from face-to-face and video conferencing. However, the main problem with interviews is that they are time consuming, and may not be entirely reliable. Questions may be behaviour-based or situation-based.

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Interviews should be used with other selection methods to ensure reliability of the selection. This may include testing, such as psychometric, aptitude, intelligence and trade tests. In addition, the business may contact references. Once a candidate is selected, they will sign a contract of employment which details the conditions of the job. The business may undertake induction training to help the employee settle into their role in the firm.

Internal and External Recruitment Internal Recruitment

Advantages Cost effective Less down-time Less risk Motivational Disadvantages Fewer applicants Time consuming Old blood Internal politics

External Recruitment
Advantages New blood Wider range of experiences Larger pool of applicants Disadvantages Time consuming Expensive Greater risk and uncertainty

Businesses may use a variety of methods to recruit people, such as newspaper advertising, specialist trade publications, online advertising, commercial employment agencies, job centres, headhunting, university visits and direct contacts.

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Appraisals
These assess an employees performance, training needs, sets new targets and goals, and assessing suitability for raise or promotion. Advantages Set targets for change and progress Objectively praise staff Offer constructive criticism Receive staff feedback Disadvantages Time consuming and costly Regular monitoring is difficult Daunting for both parties Relationships and feelings may interfere Staff may be offended Appraisers may lack experience Anxiety over link to pay Confidential feedback and action in costly

There are many methods for appraisal that may be used, including upwards appraisal, essay appraisal, 360o appraisal, rating system, management by objectives, peer appraisal and selfappraisal. Appraisals take place in the following order: staff records and reports are collected. A formal appraisal takes place, a written report is completed and signed by the appraiser and appraise, then a countersignature is included to ensure validity. If an employee receives only a moderate rating, then:

Warning letter

Conselling and advice

Discussion of consequences

Monitor performance

Employee dismissed if there is no improvement

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