2232021 Unit 16 Human Resource Management in Business

2/23/2021 Unit 16 Human Resource Management in Business Miss Haron P 1, P 2, M 1 1

2 2/23/2021 Last lesson We worked on Assignment 1 which includes P 1, P 2 and M 1

3 Learning objectives By the end of today you will - Be able to explain the internal and external impacts on HR - Be able to apply your knowledge of human resource planning to The Warren School. 2/23/2021

4 2/23/2021 Internal factors • Internal planning factors are those that relate to what is already happening inside the business. • The two we will discuss are: 1. 2. Organisational needs Skills requirements

5 2/23/2021 1. Organisational needs • When the organisation as a whole changes direction, e. g. the demand for products and services will change, this will affect the number of employees needed in certain roles. • Organisations may consider entering 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 • Key point – The organisation is choosing to make a change.

6 2/23/2021 2. Skills requirements • • As the nature and type of work changes within an organisation, the organisation will require different skills from its employees. More businesses are changing from being labour intensive 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. Key point – The organisations role is changing – perhaps due to customer demand, trends or changes in technology.

7 2/23/2021 External Planning factors External planning factors are those that influence the business from outside its direct control. Some examples are: 1. 2. 3. 4. 5. 6. Supply of labour Labour costs Workforce skills Government policy Labour market competition Changing nature of work

8 2/23/2021 1. Supply of labour This is the number of employees with the ability to do the job. This could be an issue for HR for example an NHS trust requires 1500 nurses but only employs 900. This shows that there is a limited supply of labour. On a local level - if manufacturing companies shifted abroad and were replaced by service industries, this will cause labour shortages with right skills and training On a national level - the levels of unemployment affects business and supply of labour. On an International level - expansion of EU meant that more and more people are moving to the UK to find work.

9 2/23/2021 2. Labour costs can impact the HR department as for some businesses labour cost is one of the largest costs. Therefore if the cost of labour rises, the business may no longer make a profit and the HR department will make a decision of whether to stop employing people and/or train the current employees to be more effective. Ø 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% National minimum wage/National living wage

10 2/23/2021 3. Workforce skills It is important for new businesses to check that the area they are opening a business in has people with the right skills who are willing to become employees. Businesses can find out the types of skills that are available in their local area/region by accessing published national statistics. E. g. If the local council wanted to open up a new school in rural Wales, they would have to ensure that they could source enough employees to be teachers there. They may look at teachers who currently live in the area or may look at possible commuting route.

11 2/23/2021 4. 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. E. g. if the government introduced a rule that all teachers must have completed a first aid course, the HR department would have to ensure that there were training opportunities available. They would also have to keep a list of who had/hadn’t completed it.

12 2/23/2021 5. Labour market competition As the industry gets bigger, a lack of suitable employees lead to more competition from businesses for employees with specific skills For example: The NHS has grown and therefore demand for nurses has increased however due to a lack of British nurses the government have looked to overseas employment and more attractive benefits.

13 2/23/2021 6. Changing nature of work As the nature and type of work changes within an organisation, the organisation will require different skills from its employees. For example, Supermarket employees will not only need to know how to stack shelves and use a checkout, they now need the new skill of being able to operate the technology in a Self Service checkout.

14 Activity Using your guide sheet, please continue working on Assignment 1. By the end of the lesson I expect you to have at least finished P 1. You should be pushing to finish P 2 this lesson. 2/23/2021

15 2/23/2021 Independent learning The work you should do at home between this lesson and next lesson is to work on this coursework. I expect you to have at least finished P 1 and P 2 before next lesson.

16 Next lesson You will have one more lesson to complete your coursework. This time will be used to finalise M 1. Draft is due Wednesday 23 rd September – End of Period 2. 2/23/2021