Functions of HRM

Unit 2.1 IB Business

95- 1 08
Page
Human Resource Planning Topics

- How many workers?

- Short term staffing needs?
- Long term staffing needs?
- Seasonal variations?
- Variations within the week? Within the day?
- What historical data is available?
- What is the labour turnover rate?
- What is the flexibility of the workforce?
- What is the mobility of the workforce?
 Labour Turnover (p 110)

Labour turnover rate = (# staff leaving) / (Total staff)*100%

If Antonio’s Gym has a staff of 50 workers and they have to hire 20 workers in a
particular 12 month period, we can conclude:

The turnover rate = (20)/(50) *100%

= 0.4

= 40%

A 40% turnover rate implies the average worker stays for (1/0.4) = 2.5 years
 Labour Turnover (p 110)

Labour turnover rate = (# staff leaving) / (Total staff)*100%

If a McDonalds has a staff of 50 workers and they have to hire 150 workers in a
particular 12 month period, we can conclude:
At McDondalds, the managerial
The turnover rate = (150)/(50) *100% turnover was at 20% globally while that
of the crew members averaged between
= 3.0 80 percent and 90 percent. Some
locations report to be as high as 400%!!
= 300%

A 300% turnover rate implies the average worker stays for (1/3.00) = 1/3 of a year
(AKA 4 only months!)
Labour Turnover (p 110)

Labour turnover rate = (# staff leaving) / (Total staff)

If a private school has 3 staff members who need replacing in a year, and they
have 60 total staff, calculate the turnover rate and how long the average employee
stays with the organization

The turnover rate = (3/60) Now y

ou calcula
= 0.05
te it
= 5%

A 5% turnover rate also implies the average workers stays for (1/0.05) = 20 years.
1. Why is labour turnover different for managers
and crew members at McDonalds?

2. Why is is much lower at the WECDSB than it

is in fast food?
ct ion
Re f le
3. What negatives are affiliated with a high
Why high labour turnover is a problem
● The costs of replacing staff - recruiting, interviewing, selecting and training are
costly

● The transition costs - including induction programmes, certifications, etc

● Lower quality and output rates for people who are still learning the job

● Indirect costs (possible involving a loss of customer service whilst new

workers are trained and gain relevant work experience).
Labour Market
Now that we have PLANNED our staffing needs,
we must consider factors in the labour market:

- How many people are seeking jobs?

- Are job seekers qualified?
- What are competitors labour needs?
- What is a competitive wage rate?
- Are demographic changes going to impact
the labour market?
- Education levels
- Mobility of labour
- Occupational
- Geographic
HR Planning is done. Labour Market is analyzed….
Now we must Recruit workers (and hopefully they stay!)

The Royal Canadian Air

Force had success in
their recruiting of pilots,
but had trouble keeping
them

Lets consider the impact

of Retention & Bonuses
For the RCAF, summer
camps and other
businesses
Recruiting
HRM Recruiting M
ad Libs What method would
you use to recruit in the
following industries?
- Local restaurant
- Engineering firm
- Nurse
- Local factory
Recruiting Workers (114)
Forbes: Recruiting leaders

Job Analysis
Job Advertising
Job Description (what tasks you will do)
Person Specification (describe ideal
candidate)
Job advertisement - 5 "TRAPS"
Truthful
Relevant
Accurate
Positive
 Compare and contrast
recruiting issues for Apple
and Barrick Gold Co.
 Compare and Contrast Recruiting Videos
Apple Both Barrick
Companies
● Hire the best skilled workers
● Collaboration - people
already experts
● Mellow background music
● Clean
● You can be part of a bigger
movement
● Teamwork promoted
● Talked about final product
● Innovation
 Compare and Contrast Recruiting Videos
Apple Both Barrick
Companies
● Hire the best skilled workers ● We can mold you into
● Collaboration - people becoming the best
already experts ● Teach people how to do the job
● Mellow background music ● Upbeat, tempo in music
● Clean (appeal to men)
● You can be part of a bigger ● Dirty
movement ● Talked about the process
● Teamwork promoted ● Showed machinery, equipment
● Talked about final product ● You have to live in the middle
● Innovation of nowhere and might die
● Change perceptions about the
industry
 Compare and Contrast Recruiting Videos
Apple
● Hire the best skilled workers
● Collaboration - people
already experts
● Mellow background music
● Clean
● You can be part of a bigger
movement
● Teamwork promoted
● Talked about final product
● Innovation
Both
Companies
● Present unique working
environment
● Challenge/problem solving
● Growth - reach your full
potential
● Long term workers
● Diversity
● Global recruiting
● Overwhelmingly positive
Barrick
● We can mold you into
becoming the best
● Teach people how to do the job
● Upbeat, tempo in music
(appeal to men)
● Dirty
● Talked about the process
● Showed machinery, equipment
● You have to live in the middle
of nowhere and might die
● Change perceptions about the
industry
Selecting Workers (116)
Application forms
Curriculum Vitae (aka Resume)
Cover Letter (here is mine)
Shortlisting

Interviews - Costanza/Yankees
Video Conferencing
Telephone interviews
Face to face interviews
Group interviews
Worst interviews in movies...

Interview Questions
Behaviour based questioning
Selecting Workers (p 118)
Testing
Psychometric tests
Aptitude tests
Intelligence tests - NFL
Trade Tests

References

Contract of employment
Validity of Selection & the Law
Fire Fighter - Supreme Court Canada
Internal vs External Recruitment (119)
Methods of External Recruitment
Newspaper advertising
Special trade publications
Internet advertising
Commercial employment agencies
Job centres
Headhunting
University visits
Employee referrals
Employee referrals at G
oogle
Why it takes more than just money
to make these programs work
15 Companies with refe
rral programs
Why do you suppose companies pay
$1000s to their current employees
who refer new candidates?
 Advantages of External Disadvantages of External
Recruitment Recruitment
New Blood Greater degree of uncertainty
Wider range of experiences Time consuming
Larger pool of applicants Expensive

Advantages of Internal Disadvantages of Internal

Recruitment Recruitment
Cost Effective Fewer Applicants
Less down time Dead wood
Less risk Time consuming
Motivational Internal politics
Familiar with culture, clients, No new ideas or expertise
products https://www.youtube.com/
watch?v=lwOImySmgik
Training
Training
Objectives of Training (120)
- Enhance efficiency and effectiveness
of staff
- Improve quality of work
- Facilitate career and personal
development
- To develop multi skilled and
productive workforce
- To help staff adapt and change
- Certification, introduce new
information
On The Job Training refers to training carried out while at the workplace. For
example, it can be delivered by a manager or skilled colleague. It is learning on
the job and can be through induction training, mentoring or to update the staff

Advantages of On The Job Disadvantages of On The Job

Training Training
Relevant to firm's needs Might pick up bad habits from trainer
Cheaper - use in house people Internal trainers might lack up to date
and facilities experience and skills

Fewer disruptions (no need to Trainers cannot conduct their normal work
travel) during training

Can establish relationships as On the job training is often piecemeal and

team working is involved incomplete due to lack of resources

Convenient location Productivity is initially low as workers

undergo process of learning new skills
Induction training refers to on-the-job training aimed at introducing
new employees to the organization
Advantages of Induction Training Disadvantages of Induction Training

Establish clear expectations and good Planning, delivering and overseeing an

working habits from the start induction program can be time consuming

Helps new recruits to understand the Key staff needs to be 'freed' from other
corporate culture of the organization tasks to do training

New recruits can contribute to the Information overload

organization more quickly

Morale is boosted when staff feels Length of induction programs can be very
welcomed and more confident in their job long in large firms

Effective induction training - (4 mins)

Mentoring is a type of on-the-job training involving a partnership
between two people: the mentor and the mentee

Advantages of Mentoring Disadvantages of Mentoring

Training Training
Synergy Planning and time consuming
Informal Mismatch can be stressful
Authentic relationship Requires long term commitment from
both parties
Safe environment - honesty, Using internal employees as mentors
openess can be costly

Movie clips on m
entor training
Hamburger University - really!
Consider the economies of scale
(Unit 1.6) enjoyed by McDonalds

Not only can they produce food at

a low cost-per-unit, but they can
also streamline management
training

This assures a higher degree of

quality control (Unit 5.3) versus
fast food restaurants who do not
run this type of training
 Off The Job Training refers to training carried out off-site. This could be at a
tertiary college or hotel conference room. Ex. First aid might require special
equipment that is not available in the business

Advantages of Off The Job Training Disadvantages of Off The Job

Experts not available internally
Wider range of training can be provided
(foreign languages, ICT, first aid, risk
management, etc)
No distractions from colleagues
Networking - meet new people and contacts
Training
Loss of output when going off site
Hiring specialist trainers can be
expensive. Paying for hotels, food, etc
can be costly
Debateable if the content is relevant and
transferable
Finding time for staff to cascade the
information can be tough

Personal Examples: IB Conferences, Roundtables, 'Hockey School', Niagara for OTC

Training (p124)
Behavioural Training
● Team building
● Health & Safety training
● Ethical business practice
Disability Training
● Emotional intelligence
● Motivational training
● Conflict resolution
● Stress management
● Anger management
● Leadership skills
● Business etiquette

Cognitive Training - help improve memory,

attention, listening, logic, and problem solving skills
 Performance Appraisals (P 125)
Advantages of Performance Appraisals
Set targets, leading to professional development
Appraisals allow managers to praise staff for
accomplishments
Managers can use appraisals for constructive
feedback - areas for improvement
Managers can, in turn, get a sense of the needs of
their employees company wide
It shows management what type of training and
development programs they should invest in
Can be an opportunity to discuss changes in pay,
responsibility, training programs, etc
Disadvantages of Performance
Appraisals
It can be a tense time for all parties
involved
It can be time consuming, labour intensive
and costly
Without follow-up action, the process is
pointless
The subjective nature of appraisals and
work relationships can skew results
Confidentiality issues
Suggestions might offend the employee
 Types of Appraisals (p 126)
● Formative
● Summative
● 360 Degree Feedback
Involves feedback from superiors, subordinates,
suppliers, customers, colleagues and/or other stakeholders
● Self Appraisal - Bracken’s ALP

Appraising Appraisals Stress, blindsides & tears :(

Funny Appraisals: Awkward ,Angels, Scrubs, Penny, Mad TV, Obama (Onion)
Types of Appraisals (p 126)

Performance Appraisal Activity - 5 situations

Want to see my last appraisal?

My preparation notes
Compensation Methods will be covered in 2.4 Motivation
Dismissal of Workers (128)
Valid Reasons
Incompetence
- Lack of job ability. Underperformance

Misconduct
- Unacceptable behaviour (lates, rudeness, missing deadline, etc). A series of
verbal and/or written warnings are provided before termination

Gross Misconduct - George and the maid. George attempt at gross misconduct
- Egregious acts which can result in immediate termination (violent acts, theft,
etc)

Legal Requirements
- if someone lies about their qualifications you can let them go
 Dismissal of Workers (128)
Unfair dismissal
Discrimination
Constructive Dismissal -Handicapped George again! Play now #3

Redundancies (retrenchments or lay-offs)

Voluntary redundancies
Compulsory redundancies (involuntary) See seniority list & WECDSB Stats
How it feels losing a job Up in the air vid #2 GM Strike & Lakeside Plastics

Redeployment - GM - Windsor workers to Oshawa

Personal Experiences: I was let go 5 times at WECDSB. We fired a manager at OTG

Changing Employment Patterns & Practices (130)
Employment sector changes
Homeworking (132) Working from Home News

Ageing Population

Flexible work structures at EBay

Organizational restructuring
Flextime
Changing recruitment practices
Retention of core staff
Training

Onion: Tom Coughlin retires from family

Teleworking (often working on the road, visiting clients)
Changing patterns in education too!
 Advantages of Teleworking & Disadvantages of Teleworking
Homeworking & Homeworking
- Job opportunities for people in - Depends on ICT working
remote areas - Often people work extra hours
- Suitable for those with young kids - Social isolation
For the
- Flexible hours - Less job security and union
Employees
- Less commute, travel, expense representation
- Autonomy - Distractions at home
- Tax benefits for home expenses - Lack of training opportunities
- Info. Comm. Techn. is affordable

- Reduced office overhead - Set up costs for ICT can be high

- Flexible hours extended to - Tight control in recruiting - initiative,
For the customers self motivation
Employers
- Continuity for those with children - Hard to manage and motivate
- Lower absenteeism - Technology breakdowns are
- Flexible with laws - breaks, work problematic
conditions etc - Confidentiality issues
- Lack of unity/culture - Yahoo
- Customer relations
 Alternate working
arrangements
Portfolio Working
- Career is a series different jobs, often carried out
simultaneously

Part Time Employment

Flexitime
- Core hours + flexible hours

Migration of Workers

Microsoft 4 day workweek

Flexible Work Spaces
People living at Google?!?!
Outsourcing & Offshoring (p 134)
Why outsource?
Outsourcing vs Offshoring
The school board - grass cutting and snow removal

Offshoring - How it is different from outsourcing

Re-shoring - In Britain
When to outsource: http://www.entrepreneur.com/article/238185

Organizations frequently outsource Paladin security, IT, cleaning, catering, training

(The Office: tech, first aid, diversity training, etc)
Outsourcing Stories
Would http://onthebeachvolleyball.com/ need a full time bouncer?