human resource of business
employees
human resource management is important as
ensures that the organisation has the right people in the right roles with the right support and with opportunities to suceed, as well as positive work environment
what does human resource managment lead to
higher productivity, improved efficiency and competetive advantage
HR diagram for competetive edge
higher labour productivity->lower labour cost per unit-> improved efficiency-> competitive edge
what do staff represent
both asset and cost to a business
build productivity, drive inovation and enhance customer service
or cost due to hiring training managing and paying salaries and wages
human resource planning
identfying how many and what kind of employees are needed.
- how many employees
- developed and trained
- motivated managed and led
human resource metrics that are useful in business
labour productivity: measure of output per employee over time-aim to increase
labour turnover: proportion of employees leaving a business during a specific time period- high means poor motivation of ineffective recruitment
labour retention: the proportion of employees remaining with a business during a specific time period- high means effective motivation
absenteeism: measure of the proportion of staff absent from work during a specific period time
what do high of absenteeism mean
increase costs from staff cover
output is likley to reduce
other staf may become demotivated
what are the internal factors that influence human resource planning
business objective and strategy, fincncial situtation, organisational structure, labour relations, organisational culture
business objectives and strategy
the business goals and objectives, and long term plans influence the recquired workforce skills
financial situation
budget constraints may influence decision when hiring, training and paying benefits. + may struggle to attract employees
organisational structure
hierachy, reporting relationships, departmental divisions
labour relations
The relationship between managers and workers and whether workers are
members of trade unions can have a signicant impact upon the workforce
planning process
economic conditions
The state of the economy, including factors such as economic growth, ination, and
unemployment rates
external factors that influence HR
labour market
political factors
economic conditions
social and cultural factors
industry specific factors
competetive ladscape
laws and regulations
techological advances
labour market
The supply of suitable employees and the impact of factors such as skills shortages, labour
mobility and immigration
technological advancents
Rapid technological change can disrupt industries and job roles, afecting HR planning
legal and regulatory environment
Laws and regulations related to employment, labour relations, health and safety and immigration
Social and cultural factors
Social and cultural factors such as societal values and demographic trends. Workforce diversity and inclusion, exible work arrangements, work-life balance and
employee wellbeing are examples of areas where social and cultural factors are external
factors that inuence workforce planning
political factors
changes in government policies, political stability and geopolitical factors
industry specific factors
Dierent industries may face unique external factors
Healthcare organisations need to consider factors such as changing regulations,
demographic shifts, and advancements in medical technology
competetive landscape
The environment in which a business competes for labour and the actions and strategies of
competitors infuence workforce planning
HR planning should consider the organisation’s position in the market and align recruitment
strategies so that the pay and benefits reflect that
reasons for changes in working patterns (5)- 2 examples
remote, hybrid and flexible working- allows working from home, flexible arrangements allow employees to have greater control- companies often adopt hybrid work models
gig economy- freelance contract work: digital platforms made it easier, more autonomy and flexibility
emphasis on work life balance- employees seeking to integrate personal and professional lives
changes in occupations- significant reduction in demand- increase demand for software programmers
changes to working patterns (3)
jobb sharing: two or more employees working at different times to complete same task- provide fliexibility+ employer benefits
career breaks: decide to stop working for period of time before returning to work in same career
downshifting: senior employee move to lower paid position