Chapter 43- workforce planning, human resource objectives and strategy

Question 1

Human resource objectives

Answer 1

• the sorts of issues that need to be planned with clear objectives in mind include:
• recruitment
• induction
• ongoing training
• pay rates
• appraisal
• changes in employment law
• customer service
• human resource objectives can’t be set in isolation: they need to be governed by the businesses overall objectives

Question 2

Without clear objectives for Human Resources being set, what are the businesses managers likely to find themselves at?

Answer 2

• firefighting problems resulting from a lack of employees with the right skills to carry out the work
• might mean increased overtime working or the use of agency staff or the work might not get done at all causing problems in terms of reputation and possibly cashflow

Question 3

The human resource strategy

Answer 3

• concerned with how a business forecasts its needs for the quantity and quality of Human Resources that are required to achieve the objectives of that business

Question 4

Meeting the needs of the business

Answer 4

• to meet the needs of the business the workforce needs to be effective and efficient
• there are only so many workers who will fit the needs of a particular business so ensuring the right staff are employed is vital to avoid a high turnover of staff as well as meeting consumers’ needs
• without an appropriate skill level and the correct number of employees the business may not be as efficient or effective and this will have a detrimental effect upon its stakeholders

Question 5

Age

Answer 5

• if all workers are aged over 50 some of them may be planning to retire and there will be no one to replace them
• if the entire workforce were under 25 there may be a possible lack of experience and authority

Question 6

Innovation

Answer 6

• good to have long standing and experienced members of staff
• a problem in that there are no new employees to bring enthusiasm, fresh ideas and innovation to the business

Question 7

Skills

Answer 7

• different jobs require different skills and will need different training and working conditions to help the business achieve its objectives
• providing these will help the retention rates of staff and help reduce labour turnover

Question 8

Factors affecting human resource needs

Answer 8

• changing needs of the business: change in sales trends may mean the business needs to increase the production of one product and decrease another. As a consequence, there will be a need for more workers of one particular skill
• increased sales may mean there is a need for more staff overall
• when staff leave, they have to be replaced. Staff may leave due to retirement, promotion or being discontented with the job or the environment in which they have to work
• improved technology means that there is less need for human labour or the existing workforce have to be retrained to work with the new technology
• change in the method of production: may mean that the workforce will need retraining
• level of budget may alter the number of employees that can be employed
• unforeseen circumstances e.g. natural disasters and terrorist activities have greatly affected the human resource needs of the business
• state of economy will affect demand for labour

Question 9

Factors affecting the ability of a business to meet its human resource needs

Answer 9

• availability of potential workers
• skills of the potential workers
• nature of the work required
• demand for workers from other businesses: will affect availability and level of wages expected
• location of the business
• cost of living in the locality of the business
• government legislation

Question 10

Strategies adopted by business to meet their human resource needs- outsourcing

Answer 10

• refers to the contracting jobs to external labour
• instead of a business having to hire its own labour it will use another business to undertake a specific job
• saves a business the difficulty of hiring staff
• business will save money by not incurring additional costs of having permanent staff
• staff can be used as and when required
• particularly important for businesses where trade is irregular
• in a competitive market outsourcing is a way of reducing costs

Question 11

Flexible working hours/ practices (flexi-time)

Answer 11

• Many potential employees may prefer a choice of hours
• allows the employees to work to suit their own particular lifestyles
• may be more expensive to administer and operate as the place of work may need to be open for more hours
• business may save some money by gaining or keeping good staff and therefore wont need to spend money on recruitment and training

Question 12

Term time working

Answer 12

• simply where the working hours mirror term time days
• employee will work as normal during term time but will not work during the school holidays to look after children
• employee will still be classed as employed

Question 13

Structured time off in lieu

Answer 13

• part of some flexible working practices firms may encourage it
• where there are peaks and troughs for how busy a business may be
• employees may be asked to work longer hours during busy periods with the number of additional hours being recorded to enable the employee to take time off in compensation (in lieu) during less busy periods

Question 14

Benefits to operating a Job sharing scheme

Answer 14

• employees are able to work the hours or days that suit them and therefore a business can gain the staff it needs
• if one of the job sharers are absent the business still has some of the tasks covered by the other job sharer who may even be able to take on the extra work if it. Is for a short period of time

Question 15

Downside of job sharing

Answer 15

• additional administrative costs of employing two people instead of one
• careful planning may be required to ensure the job sharers take a similar approach to a given task so that there is consistency within the role
• if the job sharers have managerial responsibilities different leadership styles may confuse staff under their supervision

Question 16

Remote working

Answer 16

• involves allowing the employees to work away from the business premises
• now a lot easier due to the level of communications technology in place

Question 17

Advantages of remote working

Answer 17

• productivity of employees have increased as there are fewer distractions and interruptions than at the place of work
• allowing employees to work at home saves valuable commuter time and allows the employee to choose when to work
• lower level of abenteeism has been recorded

Question 18

Disadvantages of remote working

Answer 18

• it is harder to check that employees are actually working
• initial set up cost of providing the necessary technology

Question 19

Zero hours contracts

Answer 19

• allows employers to hire staff with no guarantee of work
• staff only work when they are needed which can be at short notice
• no guaranteed hours for the employees
• employees are called for when they are needed so they do not have any security of employment
• no obligation on behalf of the employers to offer a set number of hours
• actual hours offered will reflect the demand for the goods/services being offered
• no obligation for employees to accept the offer of work

Question 20

Advantages of zero hour contracts

Answer 20

• reduces the administrative costs of employing labour on a full time basis
• more cost efficient for employers as labour is only hired and paid when needed
• cheaper than using agency staff
• easier for employees to have breaks between jobs
• not having to accept offers of work allows employees greater flexibility

Question 21

Disadvantages of zero hour contracts

Answer 21

• no certainty of employment
• no guarantee of job security for employees
• no certainty of hours worked and therefore amount of total pay will vary

Question 22

Compressed hours

Answer 22

• an attempt to provide an alternative working week in terms of the number of days per week actually worked by employees

Question 23

Advanatges of compressed hours

Answer 23

• working one day less potentially reduces commuting costs for the employees
• may ease congestion on the roads
• allows employees greater flexibility
• reduced costs of child care
• may enable employers to reduce costs
• staff morale may improve due to extra day off so productivity may increase

Question 24

Disadvantages of compressed hours

Answer 24

• longer working day for employees
• productivity may fall as the working day is longer
• greater loss of production/service provision if staff have a day off

Question 25

Annualised hours

Answer 25

- where employees work a total number of hours for the year as a whole with a degree of flexibility to how these hours are undertaken - usually a set number of hours are allocated per week and the residue of hours is worked on an employers need basis in order to meet demand - employees will be paid on the basis of the hours to be worked and therefore there will be less or no need at all for overtime pay as the residue would have been included in the basic wage

Question 26

Advantages of annualised hours

Answer 26

- allows the employers to use the workforce when needed - there is no need for employers expensive overtime rates therefore reducing costs and thus helping the business remain competitive - allows employees flexibility

Question 27

Disadvantages of annualised hours

Answer 27

- being on call may be restrictive for employees - some uncertainty when the employees may be called - opportunity for employees to do overtime is usually lost - there is an additional administrative cost for employers to calculate and operate such a system

Question 28

Workforce planning

Answer 28

The process used to plan the number and quality of employees that will be required both in the short and long term

Question 29

Outsourcing

Answer 29

- the usage of external labour to undertake a specific job or contract