Unit 2.1 Introduction to Human resource management

#1 Failing school struggles with HRM

Marco had headed up the HR team at Wickingham High School (an inner city school) that was increasingly failing. OFSTED (the educational regulator) had just downgraded the school to ‘failing’ status!

This encouraged more and more experienced staff to leave and the reputation made hiring people increasingly difficult! Despite high immigration into the UK from elsewhere, the school struggled to hire qualified, experienced teachers (especially those for certain jobs like Maths and Physics)!

HR had been Marco’s dream, but working solo in a busy and struggling school was taking its tole! Not only was recruitment and retention a problem, but the school was also increasingly having to ‘let staff go’ (firing staff) who had lost motivation because of the tough environment, low pay to living costs within London and difficult general work conditions!

Marco’s job was increasingly difficult as the components of the job grew and grew. He was tasked with recruitment, induction, examining retention, appraisals, absenteeism, dismissal, training and development and performance appraisals!

Whilst Marco was well trained to deal with all of these aspects, low morale and a recruitment crisis was making the job harder and harder and less enjoyable.

Recruitment of new staff was harder now because COVID had encouraged people to move out of the city and locate to cheaper housing locations (like the North of England). Spiralling costs of living in London was also encouraging people not to move or stay in the area. The local council had also tightened their budget, which meant the school (which was government funded) could spend less and less on pay, which meant selecting younger (sometimes less qualified candidates). However, many of the younger potential candidates were interested in working in more glamorous roles, such as high tech! Younger people also tended to be interested in working from home, flexi-time or nicer working conditions that an old, increasingly dilapidated school!

There was also an emotional tole of working in a school that was deemed to be ‘failing’ and plenty of negative chat from teachers and support staff about, ‘now being the right time to leave’!

The problems seemed unending! Younger teachers with high occupational mobility often left the UK to work abroad where pay was often higher! Older teachers who sometimes lacked motivation would stay and hold out for retirement! So, whilst younger teachers were hired, they didn’t always stay, given that pay rises were often only in line with inflation and no bonuses could be paid, which increased the HR workload for Marco and increased staff turnover and added to the costs of the school! Marco felt like the school was trapped in a negative spiral!

QUESTIONS FROM: #1

  1. Suggest the likely organisational type of the school [1]
  2. Identify four problems that Marco faces in his job [4]
  3. List four components of Marco’s job as HR manager [4]
  4. Comment on why pay rises that are linked to inflation may encourage staff to leave their job [2]
  5. Define the term retention in the context of the school [2]
  6. Explain two reasons or factors that encouraged staff to leave the area [4]
  7. Explain two changing work patterns that were making recruitment and retention more difficult [4]
  8. Analyse how workforce planning may be difficult for Marco in his role as HR manager! [5]

#2 Too many applicants

Contrastingly, Excellingham (a top private school had a different set of issues in terms of HR). Located in an expensive, leafy suburb of London, staff were queuing up to work at the school! Its reputation was excellent and because of this, labour turnover was extremely low. In the last year, 3 of the 56 staff had left! Absenteeism was low with an average of 1 day per member of staff missed each academic year. This helped the positive spiral of success helped the private school to meet its objectives and charge higher fees each year. Labour productivity was high as a result and teachers enjoyed coming to work in a positive, supportive environment where they (if they performed well) had a high degree of job security! Because few people left, the academic experience and knowledge built up over time and helped the positive spiral. Students were desperate to attend the school because they had the money to invest in great facilities!

The HR job was also demanding as the number of applicants for jobs outstripped the demand! However, the HR team was duty bound to go through every applicant and weigh up the strengths and weaknesses of each Experience and qualifications were key along with curriculum familiarity! If HR found a particularly strong applicant, they kept their names on file and sometimes even tried to create a job for them! However, many applications were rejected outright!

Motivation was high, though increasingly, some staff talked about wanting performance related pay (because of their increasingly excellent results)! This wasn’t possible, though the school was happy to reward teachers with a range of other non-financial benefits!

Marco decided that this was the job he really wanted!

QUESTIONS FROM: #2 Too many applicants

  1. Suggest 2 likely objectives of the school, Excellingham [2]
  2. Identify evidence from case study that the school is a for-profit run business [2]
  3. Calculate the labour turnover of Excellingham [2]
  4. Explain one problem that the HR department faced at Excellingham [2]
  5. Compare and contrast the two schools in terms of their HRM [5]

KEY TERMS FROM THE CASES

recruitment

induction

retention

appraisals

absenteeism

labour turnover

 

dismissal

redundancies

training and development

performance appraisals

workforce planning

Human Resource Management (HRM) is a crucial aspect that focuses on managing and maximizing the potential of an organization’s workforce. HRM involves a variety of functions and responsibilities aimed at effectively utilizing human resources to achieve organizational goals. Here’s an overview of HRM and some roles typically included, aligning with the syllabus:

  1. Recruitment and Selection:

    • Identifying staffing needs
    • Creating job descriptions
    • Conducting interviews
    • Selecting and hiring suitable candidates

  2. Training and Development:

    • Assessing training needs
    • Designing training programs
    • Implementing employee development initiatives
    • Monitoring and evaluating training effectiveness

  3. Performance Management:

    • Setting performance standards
    • Conducting performance appraisals
    • Providing feedback and coaching
    • Addressing performance issues

  4. Compensation and Benefits:

    • Developing and administering salary structures
    • Managing employee benefits (healthcare, retirement plans, etc.)
    • Ensuring fair and competitive compensation

  5. Employee Relations:

    • Handling employee grievances
    • Mediating conflicts
    • Facilitating communication between employees and management
    • Promoting a positive work environment

  6. Workforce Planning:

    • Anticipating future staffing needs
    • Planning for succession
    • Analyzing workforce trends
    • Implementing strategies for workforce optimization

  7. Health and Safety:

    • Ensuring a safe work environment
    • Compliance with health and safety regulations
    • Implementing safety programs and training

  8. Legal Compliance:

    • Ensuring adherence to employment laws and regulations
    • Handling legal aspects of employment contracts
    • Mitigating legal risks related to HR practices

Workforce planning is a strategic process that involves anticipating and managing an organization’s current and future staffing needs. It aims to ensure that the organization has the right people, with the right skills, in the right positions, at the right time. Here’s an overview of workforce planning and examples from both a large organization and a smaller organization to highlight potential difficulties:

Workforce Planning Overview:

1. Forecasting Demand:

  • Large Organization Example: A multinational corporation expanding into new markets might need to project workforce needs based on market growth, product demand, and regional expansion.
  • Smaller Organization Example: A local startup experiencing rapid growth might need to forecast staffing requirements to meet increased production or service demands.

2. Assessing Current Workforce:

  • Large Organization Example: A global technology company might assess the skills and competencies of its current employees to identify gaps and areas for development.
  • Smaller Organization Example: A small manufacturing company might evaluate the skills of its workforce to determine if additional training is required to enhance productivity.

3. Identifying Talent Gaps:

  • Large Organization Example: A pharmaceutical company developing new drugs might identify a need for specialized researchers and scientists, requiring recruitment or training initiatives.
  • Smaller Organization Example: A boutique design agency may recognize a shortage of graphic designers, prompting efforts to hire or upskill existing employees.

4. Succession Planning:

  • Large Organization Example: A multinational bank might implement succession planning to ensure a pipeline of qualified leaders across different regions and business units.
  • Smaller Organization Example: A family-owned business may face challenges in succession planning, as there might be limited options for leadership roles within the family.

5. Mitigating Workforce Risks:

  • Large Organization Example: A global retail chain might analyze geopolitical and economic factors to mitigate risks associated with workforce availability and mobility.
  • Smaller Organization Example: A local restaurant might face challenges in workforce continuity if key staff members leave unexpectedly, requiring contingency plans.

Difficulties in Workforce Planning:

1. External Factors:

  • Large Organization Difficulty: Complex global economic conditions can make it challenging to predict future staffing needs accurately.
  • Smaller Organization Difficulty: Limited resources and access to comprehensive market data may hinder effective forecasting.

2. Rapid Changes:

  • Large Organization Difficulty: Mergers, acquisitions, or sudden market shifts can lead to unexpected changes in workforce requirements.
  • Smaller Organization Difficulty: Rapid growth or unexpected downturns in a small business may result in difficulties aligning workforce size with demand.

3. Talent Scarcity:

  • Large Organization Difficulty: Highly specialized roles may face a shortage of qualified candidates, requiring proactive talent development strategies.
  • Smaller Organization Difficulty: Limited access to a pool of diverse talents in a specific industry or location may pose recruitment challenges.

4. Organizational Culture:

  • Large Organization Difficulty: Ensuring a consistent organizational culture across diverse locations can be challenging.
  • Smaller Organization Difficulty: Maintaining a unique and cohesive culture becomes crucial as the organization grows.

Human Resource Managers often face various challenges in workplace planning. These challenges can impact the overall effectiveness of HRM strategies and the organization’s ability to meet its staffing needs. Here’s an overview of some common problems in workplace planning from the perspective of HR managers, along with real-world examples or suggestions:

  1. Uncertain Economic Conditions:

    • Challenge: Economic fluctuations can make it challenging to predict staffing needs accurately. Economic downturns may lead to downsizing, while rapid growth phases may require quick scaling up.
    • Example: During a recession, a manufacturing company might face reduced demand for its products, necessitating layoffs. In contrast, a tech startup experiencing rapid growth might struggle to hire enough skilled developers.

  2. Talent Scarcity and Skills Gap:

    • Challenge: Finding qualified candidates with the right skills for specific roles can be difficult. There may be a shortage of talent in certain industries or for specialized positions.
    • Example: In the IT sector, there might be a scarcity of cybersecurity experts. HR managers may need to invest in training programs or adopt creative recruitment strategies to address the skills gap.

  3. Employee Turnover:

    • Challenge: High turnover rates can disrupt workforce stability and impact productivity. Identifying the causes of turnover and implementing retention strategies become crucial.
    • Example: A retail company with a high turnover among sales associates might analyze employee feedback, improve training programs, and enhance employee engagement to reduce turnover.

  4. Demographic Changes and Diversity:

    • Challenge: Changes in demographics and the need for diversity and inclusion require HR managers to adapt workforce planning strategies to ensure a balanced and inclusive workplace.
    • Example: A multinational corporation expanding into diverse markets may need to consider cultural nuances, language diversity, and inclusive hiring practices to create a globally representative workforce.

  5. Technological Advancements:

    • Challenge: Rapid technological changes can render certain skills obsolete while creating a demand for new, tech-savvy talents. HR managers must stay ahead to ensure the workforce remains relevant.
    • Example: A traditional manufacturing company transitioning to automation may need to reskill its workforce or hire individuals with expertise in robotics and automation.

  6. Legal and Regulatory Compliance:

    • Challenge: Adhering to evolving employment laws and regulations requires ongoing vigilance to avoid legal issues. Failure to comply can lead to fines, legal actions, and damage to the organization’s reputation.
    • Example: Changes in labor laws regarding remote work may require HR managers to update policies, contracts, and practices to ensure compliance.

  7. Globalization and Mobility:

    • Challenge: Managing a global workforce involves dealing with cultural differences, time zone challenges, and varying labor laws. Ensuring effective communication and collaboration across borders is crucial.
    • Example: A consulting firm with offices in different countries may face challenges in coordinating projects due to time zone differences. HR managers may implement technology solutions and flexible work arrangements to address this.

  8. Succession Planning:

    • Challenge: Identifying and grooming future leaders within the organization is essential for continuity. However, many organizations struggle with effective succession planning.
    • Example: A family-owned business may face difficulties in succession planning if there’s no clear path for leadership transition. HR managers may need to work closely with leadership to identify and develop potential successors.

SUGGESTED ANSWERS

  1. The probable organizational type of the school is a government-funded school, as mentioned in the case study that the school is government-funded.

  2. Four problems that Marco faces: a. Recruitment difficulties due to the school’s failing status and a negative reputation. b. High staff turnover and experienced staff leaving. c. Challenges in hiring qualified teachers, especially for subjects like Maths and Physics. d. Budget constraints leading to the selection of younger, sometimes less qualified candidates.

  3. Four components of Marco’s job as an HR manager: a. Recruitment b. Induction c. Examining retention d. Performance appraisals

  4. Pay rises linked to inflation may encourage staff to leave because they do not provide real increases in purchasing power. If the cost of living is rising faster than inflation, employees may feel financially strained, leading them to seek higher-paying opportunities elsewhere.

  5. Retention, in the context of the school, refers to the ability to keep qualified and experienced staff employed at the school and prevent them from leaving.

  6. Two reasons or factors that encouraged staff to leave the area: a. Spiraling costs of living in London. b. The emotional toll of working in a school labeled as ‘failing’ with negative sentiments among teachers and support staff.

  7. Two changing work patterns making recruitment and retention more difficult: a. Shift in preferences of younger teachers for more glamorous roles, high-tech jobs, and better working conditions. b. Increased interest among younger individuals in working from home, flexitime, or in nicer working conditions, which the old school setting may not offer.

  8. Workforce planning for Marco in his role as HR manager at Wickingham High School is challenging due to various factors, making the job increasingly difficult and less enjoyable.

    1. High Staff Turnover: The school’s ‘failing’ status and downgraded reputation have led to experienced staff leaving, creating a high turnover. This constant departure of experienced teachers, especially in critical subjects like Maths and Physics, makes it difficult to maintain a stable and qualified teaching staff.

    2. Recruitment Difficulties: External factors such as the impact of COVID, increased living costs in London, and the local council’s budget constraints have made recruitment more challenging. People are relocating to cheaper areas, and the school’s reduced budget limits the ability to attract qualified candidates. Younger candidates, in particular, may be drawn to more glamorous roles and better working conditions, exacerbating the recruitment crisis.

    3. Emotional Toll and Morale Issues: The school’s ‘failing’ status has led to low morale among existing staff, contributing to a negative working environment. Negative sentiments and discussions about leaving further contribute to a challenging emotional atmosphere, impacting both retention and recruitment efforts.

    4. Occupational Mobility: Younger teachers with high occupational mobility are opting to work abroad where pay is often higher. This creates a situation where younger teachers are hired but don’t stay, leading to increased turnover and added HR workload.

    5. Financial Constraints: The school’s financial constraints result in selecting younger, sometimes less qualified candidates due to budget limitations. The inability to offer competitive pay and bonuses further affects staff retention, as younger teachers may seek more financially rewarding opportunities elsewhere.

    6. Mismatched Work Preferences: The preferences of younger teachers for flexible working conditions, working from home, and nicer environments clash with the conditions in an old, dilapidated school, contributing to difficulties in retaining and attracting suitable candidates.

    7. Endless HR Responsibilities: Marco’s role encompasses numerous HR responsibilities, including recruitment, induction, retention examination, appraisals, absenteeism management, dismissal, training and development, and performance appraisals. The overwhelming nature of these responsibilities adds to the complexity of workforce planning.

    In summary, Marco faces a multitude of challenges in workforce planning, encompassing recruitment, retention, emotional well-being, financial limitations, and the overall negative perception of the school. These factors create a complex and demanding environment that hinders effective HR management.

  1. Suggest 2 likely objectives of the school [2]

    • The two likely objectives of Excellingham could be:
      1. Maintaining a Positive Reputation: Given the emphasis on the school’s excellent reputation and the positive working environment, one objective could be to uphold and enhance the school’s positive image.
      2. Financial Growth: Since the school charges higher fees each year and has a positive spiral of success, a financial growth objective is likely, focusing on increasing revenue and sustaining high fees.

  2. Identify evidence from the case study that the school is a for-profit run business [2]

    • The evidence suggesting that Excellingham is a for-profit business includes the mention of “charge higher fees each year.” The pursuit of financial growth and the ability to increase fees indicates a profit-driven motive.

  3. Calculate the labour turnover of Excellingham [2]

  4. Explain one problem that the HR department faced [2]

    • One problem faced by the HR department is the overwhelming number of job applicants, surpassing the demand. This implies a highly competitive job market, making the selection process challenging and time-consuming for the HR team.

  5. Compare the two schools in terms of HRM [5]

    • Similarities:

      • Both schools focus on attracting and retaining qualified staff.
      • HR teams in both schools evaluate applicants based on experience and qualifications.

    • Differences:

      • Staff Attraction and Turnover: Excellingham faces a low turnover with high demand for jobs, while the first school (not explicitly mentioned) appears to have a higher turnover and may struggle with staff attraction.
      • Motivation and Pay: Excellingham’s motivation is high, and staff express interest in performance-related pay. In contrast, the first school’s motivation strategy doesn’t involve financial benefits like performance-related pay.
      • Reputation and Image: Excellingham emphasizes its excellent reputation, while the first school’s reputation is not explicitly discussed. Excellingham’s positive image contributes to low turnover.

    • Overall Comparison: Excellingham seems to have a more positive HR environment, with low turnover, high motivation, and a reputation that attracts applicants, contrasting with potential HR challenges in the first school.