Organisational Design and Workforce Planning (AQA A-Level Business): Revision Notes

Managing the HR Flow to Meet Objectives

Introduction to human resource flow

Every business needs to ensure it has the right employees with the appropriate skills working in the correct positions at the right time. This is achieved through effective management of the human resource flow, which involves carefully planning and controlling how employees move through an organisation throughout their employment journey.

Human resource planning is the process that identifies the current and future human resource needs of an organisation in order to achieve its objectives. This forward-thinking approach helps businesses anticipate their staffing requirements and prepare accordingly.

Human resource flow is the movement of employees through an organisation including recruitment, promotion and employment termination. Managing this flow effectively involves creating a human resource plan and overseeing all stages of an employee's time with the business, from their initial recruitment through to when they eventually leave.

When businesses manage their HR flow effectively, they can meet their objectives more successfully because they have the workforce capacity and capability they need at any given time.

Recruitment and selection

Recruitment and selection is the process of finding and appointing the right people to fill vacancies within a business. This is the first stage of the HR flow and sets the foundation for having a capable workforce.

The recruitment process

The recruitment and selection process follows a systematic series of steps:

1. Determine the number and type of employees needed - This comes from the workforce plan and identifies what roles need filling
2. Construct a job description and person specification - Create detailed documents outlining the role and ideal candidate
3. Advertise internally or externally - Decide whether to recruit from within the business or look for external candidates
4. Receive applications - Collect applications from interested candidates
5. Draw up a shortlist - Match applications against the person specification to identify the most suitable candidates
6. Select candidates for interview - Interview shortlisted candidates and select the best person for the role

Job descriptions and specifications

When recruiting, businesses need to clearly define what they're looking for. This involves two key documents:

A job description sets out the duties and tasks associated with particular posts. It explains what the employee will actually do in their day-to-day work, outlining their responsibilities and the activities they'll be expected to complete.

A job specification (also called a person specification) sets out the qualifications and qualities required of an employee. This defines the skills, experience, education and personal attributes needed to perform the role successfully.

Internal versus external recruitment

Businesses can choose to advertise vacancies in two ways:

Internal recruitment means advertising the position to existing employees within the organisation. This approach is typically cheaper and means new ideas are less likely to come into the business, but it can be an effective way to motivate staff and fill positions quickly with people who already understand the company.

External recruitment involves advertising to people outside the organisation. Whilst this tends to be more expensive, it brings fresh perspectives and new ideas from candidates who haven't worked for the business before. External recruitment widens the pool of potential applicants.

Training

Once employees are recruited, they need to develop the skills required to perform their roles effectively. Training is the provision of job-related skills and knowledge.

Almost all employees receive some training when they first join a business. This initial period is known as induction training, which is designed to familiarise new employees with the business procedures and policies. It helps them understand how the organisation operates and what's expected of them.

Training can continue throughout an employee's career to improve their skills and knowledge. This may take place:

• On the job - learning whilst carrying out work tasks, often from an experienced colleague
• Off the job - attending training at a college or external training agency away from the workplace

Effective training ensures employees have the capabilities needed to meet business objectives and can adapt to changing job requirements over time.

Appraisal and promotion

As employees develop within an organisation, their performance needs to be monitored and evaluated. Performance appraisal is a systematic and periodic process that assesses an employee's job performance in relation to established criteria.

The performance appraisal process involves managers examining and evaluating an employee's work by comparing it to set standards. The results are documented and used to provide constructive feedback to employees, showing them where improvements could be made.

Uses of performance appraisal

Performance appraisals serve several important purposes in managing HR flow:

• Identifying training needs - Appraisals reveal areas where employees need to develop their skills further
• Identifying promotion candidates - They help identify which employees are performing well and might be ready for advancement
• Supporting internal recruitment - Promoting existing employees from within the business is an example of internal recruitment, and appraisals provide evidence of who deserves progression

Regular appraisals ensure businesses can develop their workforce strategically and retain talented employees by offering them career progression opportunities.

Redundancy, redeployment and termination

The final stage of HR flow involves employees leaving the organisation. There are several ways employment can end, and businesses must manage these processes carefully and legally.

Redundancy

Redundancy occurs when an employee is dismissed due to their job no longer existing. This situation typically arises when:

• A business introduces new technology that replaces certain roles
• The business relocates to a different area
• The company closes down
• There's a reduction in demand for the business's products or services

Redeployment

As an alternative to redundancy, businesses may offer redeployment, which is the process of moving existing employees to a different job or location. However, this option isn't always popular with employees because it may involve:

• A change of location, potentially requiring relocation
• Changes in the conditions of work, such as different hours or responsibilities

Redeployment allows businesses to retain experienced staff rather than losing their skills and knowledge through redundancy.

Dismissal

Besides redundancy, employees may be dismissed (fired) in the following circumstances:

Gross misconduct - Serious violations such as violence towards a customer or colleague, or theft. These are severe breaches that warrant immediate dismissal.

Persistent minor misconduct - Regular minor violations such as consistently turning up late for work. Dismissal for this reason can only occur after the business has followed set procedures including verbal and written warnings.

A substantial reason - Situations such as an employee not agreeing to new reasonable terms of employment that the business needs to implement.

Natural wastage

It's important to note that employment may also be terminated by the employee themselves. Natural wastage is the loss of employees from a business due to retirement, resignation or death.

Every business expects a certain number of employees to leave through natural wastage, and this forms part of normal workforce planning. Businesses anticipate these departures and plan recruitment accordingly.

The importance of effective HR flow management

Efficient management of the human resource flow - ensuring the right employees with appropriate skills are in the right place at the right time - enables businesses to meet their objectives more effectively. Each stage of the HR flow, from recruitment through to termination, needs careful planning and management to maintain an effective workforce.

Remember!