IB Business & Management

Unit 2.1 Functions and Evolution of HRM

Human Resource Planning (Workforce Planning)

Learning Outcomes

• Human Resource Planning (Workforce Planning) AO1

• Internal and External factors that influence HR planning (such as demographic change, change in labour mobility, new communication technologies) AO3

• Labour Turnover AO2• Outsourcing, Off Shoring and Re-shoring as

human resource strategies (AO3)

HUMAN RESOURCE PLANNING (WORKFORCE PLANNING)

What is Workforce Planning?

What is Human Resource Planning?

• The continual process of anticipating the future workforce needs of the organisation.

• Identifies the size, type, and quality of workforce needed to achieve  objectives.

• Determines what mix of experience, knowledge, and skills is required. 

• Sequences steps to get the right number of right people in the right place at the right time. What might this involve?

Workforce Planning involves…..

Why is workforce planning so important?

• Businesses need to employ the right people to achieve its aims and objectives.

• Recruitment/training staff takes time

• A proactive rather than reactive approach will ensure that the organisation responds to changes in the internal/external environment

Task

• How would BSM go about planning their staffing needs for next year?

• What information would they need?

What information is needed?

• Historical data and trends• Sales forecasts• Labour turnover rates• Demographic changes• Technological changes

How would each of these factors affect the staffing needs of an organisation

LABOUR TURNOVER

What is labour turnover?

Labour turnover is defined as the number of workers leaving a company per year as a percentage of the average number of workers employed during that period of time

Why might employees leave an organisation?What might an increasing labour turnover indicate?What problems does a high labour turnover cause for an organisation?Why is labour turnover important for workforce planning?What can organisations do to reduce their labour turnover

INTERNAL AND EXTERNAL FACTORS INFLUENCING WORKFORCE PLANNING

Demographics?

What demographic changes might occur within a population?

Demographic changes

• Age structure of population• Changes in retirement age• Increase in working women• Levels of unemployment• Increase in flexible working• Net migration rates

How might changes in these areas impact workforce planning?Are they opportunities or threats?

Labour MobilityLabour mobility refers to the ease with which labourers are able to move around within an economy in terms of:•Location (geographic mobility) this can be national or international•Industry (occupational mobility)

Labour Mobility…. Questions to consider

• What might stop a worker being – Geographically mobile– Occupationally mobile

• What could be the negative consequences of a lack of labour mobility

• What factors may have lead to increased– Geographical Mobility (national)– Geographical Mobility (international)– Occupational Mobility

• What are the benefits to firms of increased labour mobility?

New Communication Technologies

How can communication technologies impact on workforce planning?

HUMAN RESOURCE STRATEGIES: OUTSOURCING, OFFSHORING AND RESHORING

Offshoring

Offshoring is the relocation, by a company, of a business process from one country to another

typically an operational process, such as manufacturing, or supporting processes, such as accounting or customer services 

What would be the benefits of using offshoring?What difficulties could be encountered?In what situations would offshoring be the most suitable?

Outsourcing

Outsourcing is an allocation of specific business processes to a specialist external service provider.

What type of processes could be outsourced?What would be the benefits of using outsourcing?What difficulties could be encountered?In what situations would outsourcing be the most suitable?

Can work be outsourced offshore?Can you think of any examples? In what circumstances would offshoring be a desirable HR strategy?In what circumstances would outsourcing be a desirable HR strategy?

Reshoring

Reshoring is the practice of bringing outsourced personnel and services back to the location from which they were originally offshored.

Why are businesses starting to re-shore?Find a recent newspaper article about re-shoring. What reasons were given for the decision?

Human Resource Planning – CUEGIS?

CONCEPT RELEVANCE TO HUMAN RESOURCE PLANNING THEORY

CHANGE

CULTURE

ETHICS

GLOBALISATION

INNOVATION

STRATEGY