2.1 Functions and Evoluutions of Human Resource Management
Human resource pluanning (workforce pluanning)
Need to calculate the future staffg feeds of the busifess to try to avoid havifg too few or
too mafy staf or staf with the wrofg skills.
Must respofd to the corporate plaf of the busifess afd the objectves this coftaifs.
The startfg poift for HR plaffifg is always a workforce audit.
Ideftfyifg the skills the orgafisatof will feed if the future
Ifvolves two maif stages:
Forecastfg the fumber of employees required:
o Forecastfg demafd for the frmms product: iffuefced by market cofditofs,
seasofal factors, compettorsm actofs, afd trefds if cofsumer tastes.
o The productvity levels of staf: if productvity is forecast to ifcrease, thef fewer staf
will be feeded to produce the same level of output.
o The objectves of the busifess: if the busifess plafs to expafd, staffg fumbers will
have to rise. If the frm iftefds to ifcrease customer service levels, thef more workers
might feed to be recruited.
o Chafges if law regardifg workersm rights: if the goverfmeft decides to pass laws
which establish a shorter maximum workifg week or iftroduce a mifimum wage level,
thef there will be a cofsiderable impact of the workforce plaf. A shorter workifg week
might lead to a greater demafd for staf to efsure that all the available work is
completed of tme. A mifimum wage might efcourage frms to employ fewer workers
afd substtute with machife.
o Labour turfover afd absefteeism rate: the higher the rate at which staf leave a
busifess, the greater will be the frmms feed to recruit replacemeft staf. The higher the
level of staf absefteeism, the greater will be the frmms feed for higher staffg levels to
efsure adequate fumbers are available at afy ofe tme.
Forecastfg the skills required:
o The pace of techfological chafge if the ifdustry: the applicatof of IT if ofces has
meaft that traditofal typists or clerks are fow rarely required afd skilled computer
operators afd
desigfers are if greater demafd thaf ever.
o The feed for fexible or multiskilled staf: workers caf become overispecialised,
ffdifg it difcult to adapt whef demafd cofditofs chafge. Most busifesses feed to
retraif staf or traif them with more thaf ofe skill. This gives the frm greater
adaptability to chafgifg market cofditofs afd makes jobs more rewardifg.
Labour Turnover
Labour turfover: measures the rate at which employees are leavifg af orgafisatof.
Measured by: fumber of employees leavifg if 1 year/average fumber of people employed x
100.
If the labour turfover is high, afd ifcreasifg over tme, it ifdicates employee discofteft, low
morale, afd possibly a recruitmeft policy that leads to the wrofg people beifg employed.
High labour turfover is more likely if areas of low ufemploymeft as there may be beter
paid afd more atractve jobs if the local area.
Also possible if specifc ifdustries such as fast food, where studefts get part tme jobs, so
labour turfover rates caf exceed 100%.
Human resource pluanning (workforce pluanning)
Need to calculate the future staffg feeds of the busifess to try to avoid havifg too few or
too mafy staf or staf with the wrofg skills.
Must respofd to the corporate plaf of the busifess afd the objectves this coftaifs.
The startfg poift for HR plaffifg is always a workforce audit.
Ideftfyifg the skills the orgafisatof will feed if the future
Ifvolves two maif stages:
Forecastfg the fumber of employees required:
o Forecastfg demafd for the frmms product: iffuefced by market cofditofs,
seasofal factors, compettorsm actofs, afd trefds if cofsumer tastes.
o The productvity levels of staf: if productvity is forecast to ifcrease, thef fewer staf
will be feeded to produce the same level of output.
o The objectves of the busifess: if the busifess plafs to expafd, staffg fumbers will
have to rise. If the frm iftefds to ifcrease customer service levels, thef more workers
might feed to be recruited.
o Chafges if law regardifg workersm rights: if the goverfmeft decides to pass laws
which establish a shorter maximum workifg week or iftroduce a mifimum wage level,
thef there will be a cofsiderable impact of the workforce plaf. A shorter workifg week
might lead to a greater demafd for staf to efsure that all the available work is
completed of tme. A mifimum wage might efcourage frms to employ fewer workers
afd substtute with machife.
o Labour turfover afd absefteeism rate: the higher the rate at which staf leave a
busifess, the greater will be the frmms feed to recruit replacemeft staf. The higher the
level of staf absefteeism, the greater will be the frmms feed for higher staffg levels to
efsure adequate fumbers are available at afy ofe tme.
Forecastfg the skills required:
o The pace of techfological chafge if the ifdustry: the applicatof of IT if ofces has
meaft that traditofal typists or clerks are fow rarely required afd skilled computer
operators afd
desigfers are if greater demafd thaf ever.
o The feed for fexible or multiskilled staf: workers caf become overispecialised,
ffdifg it difcult to adapt whef demafd cofditofs chafge. Most busifesses feed to
retraif staf or traif them with more thaf ofe skill. This gives the frm greater
adaptability to chafgifg market cofditofs afd makes jobs more rewardifg.
Labour Turnover
Labour turfover: measures the rate at which employees are leavifg af orgafisatof.
Measured by: fumber of employees leavifg if 1 year/average fumber of people employed x
100.
If the labour turfover is high, afd ifcreasifg over tme, it ifdicates employee discofteft, low
morale, afd possibly a recruitmeft policy that leads to the wrofg people beifg employed.
High labour turfover is more likely if areas of low ufemploymeft as there may be beter
paid afd more atractve jobs if the local area.
Also possible if specifc ifdustries such as fast food, where studefts get part tme jobs, so
labour turfover rates caf exceed 100%.
