Unit 16 Human Resource Management in BusinessMiss HaronP1: Describe the internal and external factors to consider when planning the Human resource requirements of an organisation.

Human resource planning involves looking at the current workforce skills and motivation techniques and comparing them with what is going to be needed in the future.

Today, we will be looking at internal planning factors.

Internal factors• Internal planning factors are those that

relate to what is already happening inside the business.

• This includes how the organisation is changing to cope with new methods of working or new demands made on it, such as new introduction of technology or new products/services.

• It is also a way of considering the new skills that will be needed for the future.

Organisational needs• The demand for products and services will affect

the number of employees needed in certain roles.

• An organisation may look for different ways to increase business. This could be by:

• Considering new markets by targeting different countries or target groups. For example; Tesco opening stores in china and Coca cola producing fruitshoot for the younger market.

• Changing their distribution channels. For example Dell changing from direct selling to selling in PC World

• Technological change

Skills requirements• As the nature and type of work changes within

an organisation, so do the skills requirements. • More businesses are changing from being labour

intensive (business using a lot of people in the production process) to capital intensive.

• For example; Car manufacturers are using more and more machinery in their production process and less employees. Therefore, they are cutting back on employees and training the rest with skills needed to operate machines.

Power point presentation - Group work (15 mins)• Consider one of the following businesses:

• The Warren school, Tesco’s, Ryanair, Apple and explain how their human resource planning has changed over the years due to internal factors.

• Consider how the organisation is changing to cope with new methods of working or new demands made on it, such as new introduction of technology or new products/services.

• Are there any likely future changes which will affect the skills of their existing employees?

Workforce profiles helps a business to view and monitor the types of employees working for the business.

Profiles usually include details such as age, gender, ethnicity and ability

How is this helpful for Thorpe Parks human resource planning?

External Planning factors External planning factors are those that

influence the business from outside its direct control. Some examples are:

1.Supply of labour2.Labour costs3.Workforce skills4.Government policy5.Labour market competition6.Changing nature of work

Supply of labour Consider local, national and international scale.

Local: for example; if manufacturing companies shifted abroad and were replaced by service industries this will cause labour shortages with right skills and training

National: how the levels of unemployment affects business and supply of labour.

International: expansion of EU meant that more and more people are moving to the UK to find work.

Labour costs Labour costs depend on whether the business is

labour or capital intensive.

For example; in Schools, around 70% of costs are labour costs

and in capital intensive organisations, labour costs can be as low as 20%

Labour costs also depend on the national minimum wage and this will have a big impact on the way businesses plan their human resources

Workforce skills Businesses can find out the types of skills

that are available in their local area/region by accessing published national statistics.

Why?

http://neighbourhood.statistics.gov.uk/dissemination/LeadAreaSearch.do?a=1&r=0&i=1001&m=0&p=1&q=1&s=1441352415818&enc=1&areaSearchText=rm66sb&areaSearchType=13&extendedList=false&searchAreas=

Research Tasks Using online statistics identify the UK employment and unemployment

levels in the last 8-10 years. Explain what is happening to the supply of labour and identify the likely effects on businesses such as: Tesco’s

Using online websites identify the changes in employment/supply of labour in the EU. What is happening to the employment levels? What does this mean for UK Businesses in the travel industry? www.europa.eu

Using the UK national statistics website (www.ons.gov.uk) look at what is happening in your neighbourhood by doing some research using your postcode. Click the “regional statistics” tab and then follow the “Neighbourhood statistics” link your part of the UK. This will give you information about employment levels and the types of jobs people have in your area. You can also look at national statistics, including the number of hours worked on average and the type of employment for the nation as a whole.

Government policy When government introduces new

policies for education, work and training it has implications for the number of employees available, as well as their ability and skills level.

Labour market competition As the industry gets bigger, a lack of

suitable employees lead to more competition from businesses.

For example: lack of maths, science and English

teachers lack of nurses leads to overseas

employment and more attractive benefits.

6. Changing nature of work

Forecasting Employee DemandHow many workers will we need in the

future? Historic Data Worker Productivity Work Study Business & Management Expertise Calculating Staff Loss

Simpler Internal impacts on HR

Factors Promotion Staff Development & Training Staff Loss & Retirement Flexibility Legal Factors

Simpler External impacts on HR

Factors Housing Transport Competition Unemployment Government Training/Subsidies Demographics Legislation

Plenary

Find two examples for each Internal planning factor1.Organisational needs 2.Skills requirementFind two examples for each External planning factor1.Supply of labour2.Labour costs3.Workforce skills4.Government policy5.Labour market competition6.Changing nature of work

P1 Assignment prep task• In your own words, describe the internal & external factors

to be considered when planning the HR needs of an organisation.

• Give an example for each factor – you can use the examples you found for Lesson 1 Homework

• Use your notes, this PowerPoint and the textbook to help.Internal planning factors1.Organisational needs 2.Skills requirementExternal planning factor1.Supply of labour2.Labour costs3.Workforce skills4.Government policy5.Labour market competition6.Changing nature of work

Assignment 1 – P1, P2, M1