The human resource function

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                Christy Stephens        

HUMAN RESOURCES INTRODUCTION

The human resource function is one of the most important functions of a business, along with many others. The function has many different duties including:

 Manpower Planning – Having a clear understanding of the nature of the workforce.

Recruitment and Selection  The recruitment process, where an interviewer will look at application forms and consider qualifications, skills and personality in choosing a person to fill a job.

Training and Development – Looking at the available training systems including induction, coaching and apprenticeships.

Performance management  A system used to make sure that workers are performing effectively and to the best of their ability.

 All these duties are important to a business as they insure that the Human Resources are being organised effectively. In a large organisation, there will be a specialist Human Resources department. In the medium sized businesses, they may only have one person to cover all these sections and for self employed workers, they will carryout many of these tasks themselves as-well-as managing their own business.

                                                                           

I have been assigned to produce an analytical report on how a medium-sized business manages its Human Resources. To gather more information my fellow students and I travelled to Swansea to visit a city centre chemist (Boots PLC).

  We were lucky enough to have an interview with the Personnel Manager, Sue Williams who was very interesting to talk to. Not only is she the Personnel Manager of the Swansea Boots, which alone employs 500 people, but she is also The Area Personnel Manager responsible for 21 other stores throughout west Wales.  This means that she is the person to whom all the managers of the smaller Boots stores will turn when they have personnel problems.

    Boots is structured in such a way that Swansea is the Head Office of the West Wales region, Haverfordwest is a much smaller branch called a hub store, which will have a Shop Manager and a Personnel Manager. Whilst smaller satellite branches such as Fishguard and Milford Haven will only have a shop manager who will deal with personnel problems as they arise, but will be able to refer to Haverfordwest in the first instance and ultimately to Sue at Swansea for problems that they can’t solve.

    Sue is responsible for recruitment and training in the Swansea store, she is also an expert on employment law and a member of the Institute of Personnel Officers. One of her roles in Boots is to recruit the senior staff managers, whilst her deputy recruits the shop floor workers and cleaning staff.

MANPOWER PLANNING (Human Resource Planning)

Businesses and their managers of Human Resources will have to look carefully at the organisation to see if the number of employees held is the right amount to cover all the businesses wants and needs. To ensure that the business can do these efficiently, they will need to have an awareness of the labour market in which they operate, have a clear understanding of the organisations aims and objectives and discover the pattern of workforce they will need to achieve the businesses aims and objectives.

    Manpower planning tries to forecast the demand for staff and to balance this to supply. It is imperative for the organisation to get this correct as if there were too few staff which is known as undermanning this would mean that staff will not be available to sever customer, thus giving the company a bad reputation and destroying the loyalty of their customers. Too many staff will make the business ineffective and the organisation will be paying staff that they do not need to be working, thus creating higher expenses.

RECRUITMENT AND SELECTION

It is important for all businesses to employ the right type of staff for the right jobs. There are many different reasons for employers to recruit new staff – these include:

  • The growth or restructuring of the business.
  • Changing job roles within the business.
  • Filling vacancies created by resignation, retirement and dismissal.
  • Internal promotion.

The recruitment process can often be very expensive for a business, particularly if we include costs associated with recruiting poor performing staff. A business that recruits the wrong type of staff will be adding to its costs because this may lead to poor performance. This in turn will result in a need for re-training programmes and possible dismissal procedures. This means this is really important to select the correct people for interviewing. It will also be costly to train and develop the new staff, current workers will have to spend time showing the new employees the ropes and keeping an eye on them for mistakes. The HR managers have to have a clear idea of the person they want to employ and have to make it clear in advertisements what is needed by the employer. They do this by – preparing person specifications and job descriptions. These are important for advertisements, as they don’t want to be wasting valuable time interviewing someone who isn’t right for the job opening. When advertising for a new member of staff, they must think carefully about when and where that advertisements will be placed. They must look carefully at the strong points and weak points of the application forms, curriculum vitae and application letters received.

The Human Resource department must carefully plan interviews and must use appropriate methods of assessments to make decisions on each interviewee.

It is important for a business to recruit and maintain a flexible workforce if the organisation is to remain competitive.

TRAINING AND DEVELOPMENT

This is a very important need for a business and allows them to maintain their competitiveness. The HR department must look at the current staff and analyse them to see if any of them need any specific training. They must carryout a training audit to see what skills already exist in the workplace and where skills are needed. They must look for the training gaps and concentrate their time on the people who fall within these gaps. The HR department must have a clear understanding of the organisations aims and developments so they can train people more suitably for their work role.

It is extremely important for staff to be trained at their jobs as it maintains the quality of the business reputation.

The HR department will use different types of training methods for different people. For example, new employees will have to be completely trained for their specific job. This will involve induction training which can be done either whilst the business is in working hours of after working hours are over. Either way the business will have to have a professional worker training the new employees, which costs time and money. Apprenticeships is another way of training new employees, this involves the new recruit to start work with their employer straight away and pick the skills up as they go along, they will be monitored and taught different skills by their employer whilst they are working. Self-employed workers such as carpenters and builders often use apprenticeships, as it can be cheap labour for them.

Some businesses which take on permanently unskilled workers such as home care assistants don’t initially need any training to gain their jobs, and they now offer a range of NVQ’s and GNVQ’s to their employees. This will make the business a lot better, as the staff will be qualified and will gain a better reputation and customer loyalty, also it raises staff morale.

    All these different ways of training cost considerable amounts of money but in the long run are a great use to a company, as it will create a better work force and better quality of staff and production.

   The Human Resources function is essentially important to a large business, as there are a wide variety of needs for them to fulfil. Without this function, the business may not be employing, training the staff in the correct way, which could cause a downfall in sales and production.

A business needs to plan in advance the next twelve months of their business year. They need to consider whether they will need to recruit new employees.  They want to know if the business is planning to expand, adapt new products or enter new markets. Once they have considered all these aspects, they can then decide whether or not they will need to be recruiting people.

If so, they will first look at their internal labour market - they will look at statistics such as the labour turnover, number of employees, age of employees. With this information they can predict situations such as a number of employees leaving due to retirement, taking maternity leave.  

If the demand for employees does not match the supply, there will be a gap in the workforce and the business will have look to recruit from the external labour market.

    All Businesses are effected by the external characteristics of the labour market in which they operate. Often businesses have no control over what goes on within their labour market. The study of these factors is called a PESTEL analysis, this is because the factors fall under six categories:

Political Economical social Technological Environmental Legal

These six categories cover all the different aspects of the external labour market and help a business to plan strategies

The Labour Market information that they will use in their planning includes:

  • Number of people in region-This will tell them the total number of people in the working population and the level of employment. This will give them and idea about whether there are labour shortages. If unemployment is low, there might be a problem finding new workers. 

  • Gender- they need to be aware of the gender balance. It is useful for them to know if the activity rate of women is high or low. If only a small percentage of women in the area work, then they will know that they could attract workers from this group, and could focus their recruitment on them.
  • In Swansea 32% of workers are part time women, 23% are full time women workers – women make up 55% of the workforce.
  • Since 1971, the female labour force has increased by 40%.

 

  • Age- the trends for different age groups will affect their plans to recruit. There has been a huge increase in the number of women aged between 25-44 who want to work. However, the actual rate amongst 16-24 year olds has fallen as more people are continuing with higher education instead of employment. This affects who they should recruit from.

  • The percentage of unemployment-This is a very important factor for the business to find out. If there is a high percentage of unemployment, it could help by making the pool of workers available bigger. This way they can find the correct people to interview instead of wasting time and money. If a person has been unemployed and on the dole for three years, they will know not to even interview that person this is because people lose their work skills when they are out of work. Whereas, if a person has only been unemployed for a few days, he/she will be at the top of the interviewing list.

                                             

  • Average rates of pay- Finding this information out will help the business decide what to pay their customers. If their main competitors are paying their checkout operators £3.60 an hour, they will either use the same rate or top it up to something like £4.00, this way, people will want to be employed by them and they will attract and retain good quality workers.

  • Qualifications/skill shortages- They will need to know this as they will be more likely to employ someone with previous rather than no at all. If there is a skill shortage in the county, they will have to employ someone to train they new employees and therefore will have to be recruiting people with not many qualifications, but be willing to train them.

A business will use all this information about the labour market to plan their recruitment strategy.

The Swansea population consists of over 229,531 people. Of this number, 80,500 of the population are employees.

 With results from a survey carried out in 1998, it shows that the majority of Swansea people work within the service sector, which covers 22% of the population. The main sectors are Wholesales/Retail (19%), Health and Social work (16%) and Financial and Business services (12%). This means that Boots will be able to draw from a large pool of people who have service skills.

Note: This data includes self-employed.        

From the table above, you can see that since 1997 to present, the demand for Managers and Administrators have been constantly growing.

The Clerical and Secretarial sector has been slowly declining. This could be because a number of reasons, including-low wage forcing people to look elsewhere,

From the Graph above, you can see that the level of unemployment in Swansea is the second highest out of the four listed. It is a fair bit lower than West Wales but higher than Wales. This can affect Boots. The level of unemployment has gone down, - so more people in work, fewer available to take new jobs which could be a problem for Boots. But this suggests that it is easier to recruit workers than places like London where unemployment rates are lower and the pool of available workers is smaller.

Just over a quarter of the total people unemployed in Swansea are under the age of 25.

Other results show that 59% of the total unemployed in Swansea have been so for six months or less as compared to the 61%of West Wales unemployed, this is a good point for Swansea as it shows that the majority of people, must try to get work as soon as they lose it in one way or another.

26% of the total unemployed in Swansea have been so for over 12 months. This is well above the 19.6% for West Wales as a whole, and is not good.

This suggests for some reason people find it difficult to acquire a new job – which could be linked to a decline in manufacturing – many of the jobs lost recently were ‘blue collar jobs’ (manual jobs like production lines etc). Sometimes unemployed men want to find a ‘real’ job.

Labour Market intelligence for Swansea

Age structure of Labour Force West Wales.

Thousands

Age Group                        1997                        2001                %Change

  1. 44                        45.4                0.7

25-34                                72                        68                -6

35-44                                69                        72                4

45-59                                85                        88.4                4

60-64                                10                        10.5                5

65+                                5.9                        5.8                -2

Total                                285.9                        290.1                1

The table above shows the changes in the age of the labour force in Swansea as you can see form the results, there was a 1% increases, this means that there were more people available for employment, unfortunately the other hand, unemployment rates fell in the same period. This meant that there were fewer people available in the pool of unemployed. This could have caused concern they like to recruit people between the ages of 25 and 34. However, the increase in the older age groups cancelled this problem out. Therefore Boots recognised that their advertisements would have to address some of the older age groups and – perhaps they could focus on recruiting that age group, as there were more available for employment.

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The small increase in the youngest age group (16-24) was not a lot of help to Boots as most of the people will be in further education thus making them only available for working part time hours and not full time. Although this was a hindrance, these younger people could be employed over the holiday periods, especially the summer when all the mothers who are employed will want time off to spend with their children.

Destination of Year 11 Pupils

% Of age group

                                        West Wales                Swansea

Further Education                        75                                73

Trainees                                7                                6        

Employment                                7                                9

Unemployed                                7                                8

Unrecorded                                4                                4

As you cam see from ...

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