For this chapter, you should be able to...

1. define HUMAN RESOURCE PLANNING
2. explain the concept of LABOR TURNOVER
3. identify INTERNAL and EXTERNAL FACTORS that influence human resource planning
4. outline steps in the process of RECRUITMENT
5. outline types of TRAINING
6. define different types of APPRAISAL
7. explain the concept of DISMISSAL, TERMINATION and REDUNDANCY


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1. Human resource planning

  • Human resources(HR) = All the people working in a business
  • Workforce/HR Planning = a process that identifies current and future HR needs to ensure that staffing is sufficient, qualified and competent enough to achieve the organization's objectives (employees are assigned to jobs that they are trained and best suited for.)​

4 Key parts of HR planning: 
  1. Recruitment- how the business hires the right person for the right job
  2. Training - how the business ensures that an employee receives proper professional development
  3. Appraisal - how the employee's job performance is evaluated
  4. Termination or Dismissal = how the business manages the situation when the employees leave

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2. LABOR TURNOVER

Labor turnover = a measure used in HR planning off how many people leave a business over a given period of time, usually expressed as a percentage of the total labor force.

High labor turnover suggests = business has labor problems, and reasons why staff do not stay in the firm for a long period of time. 
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3. factors influencing hr planning

External Factors
  • Technological change
  • Government regulation
  • Demographic change
  • Social trends
  • The state of economy
  • Changes in education
  • Labor mobility
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Internal Factors
  • Changes in business organization
  • Changes in labor relations
  • Changes in business strategy
  • Changes in business finance

4. recruitment process

Recruitment is the first stage of HR planning.
It can be split into 3 parts: Identification, Application, and Selection
  1. Identification: The business realizes that it needs a new employee because of a change in its internal factors                              Job description -> Person specification -> Internal or external recruitment
  2. Application: The business has to decide how to find the best applicants for the job                                                                      Job advert -> Application form or resume (CV) -> Internal or external agency
  3. Selection: The final part of the process where the business selects the best application for the job                                           Shortlisting -> Testing -> Interviews
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5. TRAINING PROCESS

Training is the second stage of HR planning that can:
  • improve the quality of the work
  • lead to greater productivity
  • motivate the employee
  • reduce labor turnover

Types of Training:
  • Induction = focuses on making a new employee familiar with the way the business functions and with lines of authority
  • On-the-job = done while the employee is doing their normal job (e.g. shadowing)
  • Off-the-job = happens outside working hours, where the employees are being trained away from the job (workshops, conference, etc)
  • Cognitive training = focuses on helping employees develop their thinking and processing skills
  • Behavioral training = focuses on helping employees develop certain interpersonal skills such as management, communication, dealing with emotions, etc.

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6. appraisal 

Appraisal is the third stage of HR Planning, which occurs when the performance of the employee is reviewed and assessed.
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For an employee, appraisal can :
  • be motivating
  • be instructive 
  • help employees progress along their career path
  • lead to a change in career direction
For the business, appraisal can: 
  • act as a check on performance
  • help to review new initiatives
  • be useful to record and document performance
  • be motivating a s it formally recognizes good performance
Four appraisal strategies:
  • Formative = an ongoing process that focuses on giving the employees recognition for what they have done well and indicating possible mistakes so that they can lean from the.
  • Summative = measures an employee's performance based on standards set by the business, making it easy for the business to sum up how a particular employee performed against the standards.
  • 360-degree = feedback on the employee's performance is not only received from the manager, but also from coworkers
  • Self-appraisal = employees reflect on their own performance by rating themselves on various performance indicators. 
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7. dismissal, termination and redundency

These are the final stage in HR Planning, when an employee leaves the business.
  • Dismissal happens when an employee has broken some of the terms of their contract, which could be due to missing work, poor discipline, dishonesty etc.
  • Termination happens when employees leave the business at the end of their contract because they want to work on their professional development, change career, retire, etc.
  • Redundancy happens when a job is no longer required, making the employee redundant through no fault of her own.