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Managing the Human Resource Flow
3.6 Decision Making to Improve Human Resource Performance
What you need to know
• Recruitment • Training & development • Redeployment • Redundancy & dismissal
Managing the Human Resource Flow Links Closely With
Human Resource Flow
Capacity
Customer Service
Quality Labour produc>vity
Something
Something
Reasons to Recruit Staff
• Business expansion due to – Increasing sales of exisEng products – Developing new products – Entering new markets
• ExisEng employees leave: – To work with compeEtors or other local employers – Due to factors such as reErement, sick leave, maternity leave
• Business needs employees with new skills • Business is relocaEng – and not all of exisEng workforce want to move to new locaEon
Changes in Employment PaLerns
• The way we work is changing rapidly: – Increase in part-‐Eme working – Increases in numbers of single-‐parent families – More women seeking work – Ageing populaEon – Greater emphasis on flexible working hours – Technology allows employees to communicate more effecEvely whilst apart
– People rarely stay in the same job for life • Businesses need to understand and respond to these changes if they are to recruit staff of the right standard – and keep them!
Part-‐Eme Staff + Flexible Working
• Increased numbers of people in the UK are working part-‐Eme
• Advantages – Cheaper to employ as entitled to less benefits – More flexible workforce (easier to reduce labour hours
when sales fall or add hours when demand increases) – Wide range of potential recruits (e.g. working mothers who
want to restrict the number of hours they work) • Disadvantages
– Employees feel less loyal to business and therefore less motivated
– Harder for managers to control and coordinate workforce
Recruitment Methods
• Internal recruitment – Jobs given to staff already employed by
business – Involves promotion and reorganisation
• External recruitment – Job centres – Job advertisements – Recruitment agencies (offline and online) – Headhunting – Personal recommendation
Internal Recruitment
• Advantages – Cheaper and quicker to recruit – People already familiar with business and how it
operates – Provides opportunities for promotion with in business
• Disadvantages – Business already knows strengths and weaknesses of
candidates – Limits number of potential applicants – No new ideas can be introduced from outside – May cause resentment amongst candidates not
appointed – Creates another vacancy which needs to be filled
External Recruitment
• Advantages – Outside people bring in new ideas – Larger pool of workers from which to find best
candidate – People have a wider range of experience
• Disadvantages – Longer process – More expensive process due to advertisements
and interviews required – Selection process may not be effective enough
to reveal best candidate
Costs and Benefits of Training
Training costs can be significant in any business. Most employers are
prepared to incur these costs because they expect their business to benefit from employees' development and
progress
PotenEal Benefits of Training (For the Business)
• BeLer producEvity • Higher quality • More flexibility through beLer skills • Less supervision required • Improved moEvaEon -‐ through greater empowerment
• BeLer recruitment and employee retenEon • Easier to implement change in the business
Why Businesses Need Training
• To support new employees • Improve producEvity • Increase markeEng effecEveness • Support high standards of customer service and producEon quality
• IntroducEon of new technology, systems or other change
• Address changes in legislaEon • Support employee progression and promoEon
Business Issues that Training Cannot Solve
• Poor management (although management training might help!)
• Poor job design • IneffecEve or inefficient equipment • Poor producEon organisaEon • Recruitment
Reasons Why Businesses Neglect Training
• They fear employees will be poached by compeEtors (who will then benefit from the training)
• A desire to minimise short-‐term costs • They cannot make a jusEfiable investment case
• Training takes Eme to have the desired effect • SomeEmes the benefits of training are more intangible (e.g. morale) than tangible
InducEon Training
• What it involves – Introducing new employees to job, their new colleagues, premises and to values, and aims of business
• Length and type depends on: – Size and type of business – Complexity of job – Level or posiEon of job within business
Typical InducEon Programme
• Learning about duEes of job • MeeEng new colleagues • Seeing layout premises • Learning values and aims of business • Learning about internal workings and policies of business
On-‐the-‐job Training
An employee receives training whilst remaining in the
workplace
Methods of On-‐the-‐job Training
• Demonstra>on / instruc>on -‐ showing the trainee how to do the job
• Coaching -‐ a more intensive method of training that involves a close working relaEonship between an experienced employee and the trainee
• Job rota>on -‐ where the trainee is given several jobs in succession, to gain experience of a wide range of acEviEes (e.g. a graduate management trainee might spend periods in several different departments)
• Projects -‐ employees join a project team -‐ which gives them exposure to other parts of the business and allow them to take part in new acEviEes. Most successful project teams are "mulE-‐disciplinary"
Benefits and Drawbacks of On-‐the-‐job Training
Advantages Disadvantages
Generally most cost-‐effecEve
Employees are actually producEve
Opportunity to learn whilst doing
Training alongside real colleagues
Quality depends on ability of trainer and Eme available
Bad habits might be passed on
Learning environment may not be conducive
PotenEal disrupEon to producEon
Off-‐the-‐job Training
Employee training that takes place away from
the work place
Methods of Off-‐the-‐Job Training
• Day or part-‐Eme aLendance at college
• Professional development courses or conferences
• Online training / distance learning
Benefits & Drawbacks of Off-‐the-‐job Training
Advantages Disadvantages
A wider range of skills or qualificaEons can be obtained
Can learn from outside specialists or experts
Employees can be more confident when starEng job
More expensive – e.g. transport and accommodaEon
Lost working Eme and potenEal output from employee
New employees may sEll need some inducEon training
Employees now have new skills/qualificaEons and may leave for beLer jobs
Main Types of Off the Job Training
• Day release (employee takes Eme off work to aLend a local college or training centre)
• Distance learning / evening classes • Block release courses -‐ which may involve several weeks at a local college
• Sandwich courses -‐ where the employee spends a longer period of Eme at college (e.g. six months) before returning to work
• Sponsored courses in higher educaEon • Self-‐study, computer-‐based training
Link between Training and MoEvaEon
• Assuming training is effecEve: then… • Employees feel more loyal to firm • Shows that business is taking an interest in its workers
• Provide employees with greater promoEonal opportuniEes
• Enables employees to achieve more at work – perhaps gaining financially from this
Redeployment
Redeployment involves moving employees to
different jobs, departments or locaEons within the
same business
PotenEal Benefits of Redeployment v Redundancy
Maintains job security for employee
Business retains skills & experience
Labour resources are allocated more effecEvely
Reduced costs of recruitment and selecEon
Redundancy
Where an employee is dismissed because the
job / role no longer exists or is required.
HR OpEons to Avoid Costly Redundancies
Freeze on recruitment – jobs lost through natural wastage
Short-‐Eme working or job-‐sharing
Pay cuts or overEme bans to reduce wage costs
Redeployment
Encouraging early reErement
