DP IB Business Your notes

Management: SL
2.1 Introduction to Human Resource
Management
Contents
Human Resource Planning
Recent Trends in Workplace Change
Resistance to Change & Change Management

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Human Resource Planning
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An introduction to human resources

In common with all resources, a businesses employees , known as its human resources,
need to be managed
Effective human resource management is important as
It ensures that the organisation has the right people in the right roles with the right
support and with opportunities to succeed, as well as a positive work environment
This will lead to higher productivity, improved efficiency and a competitive
advantage

Effective human resource management

How effective human resource management can provide a competitive advantage

Staff represent both an asset and a cost to a business

Staff are an asset to a business as they bring knowledge, skills, and expertise to the
business
Staff can increase productivity, drive innovation and enhance customer service,
all of which contribute to the success and profitability of the business
Staff can help to build a positive reputation for the business through their
interactions with customers, suppliers, and other stakeholders
Staff also generate costs for a business and, for many businesses, staffing costs are
one of the largest costs they have. These costs include
Hiring and training workers
Managing workers as managers have to be hired
Paying the salaries and wages staff
Additional benefits such as company cars, pensions, healthcare, etc
Letting workers go often requires (redundancy payments)

Human resources planning

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 Human resource planning focuses on identifying how many and what kind of
employees are needed
Your notes
It looks at how employees will be
Recruited and deployed (used)
Developed and trained
Motivated, managed and led
Staff costs can make up a large proportion of a businesses costs
Careful planning and objective monitoring of employee performance are key
elements of effective financial and operational control

Human resources metrics

Metric Explanation

Labour Labour productivity is a measure of output per employee over a

productivity specified period of time
Businesses aim to increase the level of labour productivity to
improve competitiveness

Labour Labour turnover measures the proportion of employees leaving a

turnover business during a specific time period
High levels of labour turnover can indicate poor motivation,
ineffective recruitment procedures or attractive alternative
opportunities for workers

Labour Labour retention measures the proportion of employees

retention remaining with a business during a specific time period
High levels of labour retention can indicate effective motivation
and recruitment procedures or few alternative employment
opportunities for workers

Absenteeism The absenteeism rate is a measure of the proportion of staff

absent from work during a specific period of time (e.g. a day,
week or month)
High levels of absenteeism can cause problems
Sick pay and the hiring of temporary staff to cover for those
absent increases costs
Output is likely to be temporarily reduced
Other staff may become demotivated if they have to cover for
absent workers

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Internal factors that influence human
resource planning Your notes

There are factors inside and outside of the business which can impact on the human
resources planning process

Internal factors that impact HR planning

Factor Explanation

Business The business's goals, objectives, and long-term plans

objectives and influence the required workforce skills, competencies and size
strategy
Entering a new market may require changes to be made to
the number and type of employees required
E.g. UK cafe chain Prêt à Manger plans to double the size of
its business by expanding into five new markets, which will
require the recruitment of at least 3,000 Team Members
and Baristas by the end of 2023

Financial situation Budget constraints may influence decisions related to hiring,

training, pay and benefits
Businesses in financial difficulty may struggle to offer attractive
packages to attract employees
To raise their salary offer, they may have to reduce
spending on training and development
E.g. Alphabet plans to make significant savings as a result
of slowing sales growth by reducing its global workforce
by 12,000 and changing how often equipment - such as
laptops used by workers - is replaced

Organisational The structure of the organisation, including its hierarchy,

structure reporting relationships and departmental divisions
Changes in the organisational structure may require changes to
workforce planning, such as redeployment, redundancy or
additional recruitment
For example, Consumer goods company Unilever
announced its intention in January 2022 to cut 1,500 jobs
as part of a restructure of its global operations

Labour relations The relationship between managers and workers and whether
workers are members of trade unions can have a significant
impact upon the workforce planning process

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 Where worker organisation is strong, human resources are
more likely to meet the demands of employees with regards to
pay and conditions Your notes
In 2022, unionised workers at the Port of Felixstowe who
had engaged in a series of disruptive strikes were rewarded
with a pay increase of 15.5 per cent over two years
Where there is little or no worker organisation, human resources
are likely to have more flexibility over these changes

Organisational The organisational culture may include a strong work life

culture balance resulting in a higher likelihood that additional workers
will be recruited when the demand is there
A recent study by TalentLMS of U.S. tech industry
employees revealed that 45% of employees who
experience a toxic work environment plan to quit their job
because of it

External factors that influence human

resource planning
A range of factors beyond the control of a business can also impact the human
resources planning process

External factors and HR planning

External factors that affect human resources planning

Economic conditions
The state of the economy, including factors such as economic growth, inflation,
and unemployment rates
During periods of economic growth, a business may need to focus on
attracting and retaining staff to meet increased demand

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 During economic downturns, they may need to implement cost-cutting
measures such as redundancies or hiring freezes
Labour market Your notes
The supply of suitable employees and the impact of factors such as skills shortages,
labour mobility and immigration
Spain recently changed its migration laws to recruit more foreigners from
overseas for industries with labour shortages and its primary focus for 2023 is
to hire carpenters, plumbers, electricians and other workers involved in
construction
Technological advancements
Rapid technological change can disrupt industries and job roles, affecting HR
planning
Automation, artificial intelligence (AI), and other emerging technologies can
lead to changes in job requirements, skills needed and workforce composition
HR planning must anticipate these shifts and consider re-skilling or up-skilling
to meet future workforce needs
Legal and regulatory environment
Laws and regulations related to employment, labour relations, health and safety
and immigration
In 2021, changes to employment law in Greece provided workers with the right
to flexibility to the eight-hour working day where employees are allowed to
work up to 10 hours on one day and fewer on another or take time off, as well as
the right to not have to respond to emails after hours
Social and cultural factors
Social and cultural factors such as societal values and demographic trends
Workforce diversity and inclusion, flexible work arrangements, work-life
balance and employee wellbeing are examples of areas where social and
cultural factors are external factors that influence workforce planning
French laws recognise the custom for a long lunch break and provide for five
weeks paid time off for employees, as well as protecting the limit of a 35 hour
working week - companies can’t force employees to work overtime and if they
do, they’re well-compensated for it
Political factors
Changes in government policies, political stability and geopolitical factors
Shifts in labour laws, changing tax regulations and immigration policies and
cross-border trade agreements are often political focuses which can impact
human resources planning
Australia is currently experiencing a national skills shortage in a number of
occupations and its governments plan to fill this gap with a combination of

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 training local Australians and recruiting immigrants - current in-demand skills
include construction, civil engineering and nursing
Industry-specific factors Your notes
Different industries may face unique external factors
Healthcare organisations need to consider factors such as changing
regulations, demographic shifts, and advancements in medical technology
Competitive landscape
The environment in which a business competes for labour and the actions and
strategies of competitors influence workforce planning
HR planning should consider the organisation's position in the market and align
recruitment strategies so that the pay and benefits reflect that
In the UK, businesses recruiting hospitality, health and social care workers and
professional services staff and are starting to seek talent outside traditional
sources by focusing on candidates’ skills and potential rather than
qualifications and industry experience to widen the pool of candidates

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 Recent Trends in Workplace Change
Your notes

Recent trends in workplace change

Both internal and external factors have contributed to a range of developments in the
working arrangements adopted by businesses around the world
External factors include the desire amongst workers to achieve a better work-life
balance and rapid technological developments
Internal factors differ from business to business and may include changes in
organisational structure, business objectives and attitude to meeting stakeholders'
needs

Changes in the working environment

Recent changes in the working environment

Changes in working patterns

For many years, employees were locked into a system of working from the office for the
hours of 9-5
Recently, a number of factors have changed the working patterns of many employees

Remote, hybrid and flexible working

During the Covid pandemic, many organisations shifted to remote work to maintain
business operations and protect employee health
Employees worked from home and many continue to do so even post-pandemic
Flexible work arrangements such as flextime and compressed workweeks (e.g.
completing full-time hours in four days) have become more widespread
Many companies have adopted hybrid work models, where employees work remotely
for part of the week and attend the office for meetings or collaborative tasks
These changes give employees greater control over their schedules and working
environment

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Gig economy and freelancing
A growing number of people are choosing freelance or contract work over traditional Your notes
employment
Digital platforms have made it easier to access freelance jobs and connect with clients
globally
Workers benefit from greater flexibility and autonomy, allowing them to choose projects
and set their own working hours

Emphasis on work-life balance

Employees are prioritising flexible working arrangements that allow them to better
balance personal and professional responsibilities
In response, many employers have introduced policies that support work-life balance
These include wellness programmes, family-friendly policies and access to mental
health resources

Changes in occupations
Technological advancements have reduced the demand for certain roles, including
telephone operators, word processors and travel agents
At the same time, there is a growing need for workers in digital fields, particularly
software programmers and digital marketers

Changes in working preferences

Workers are increasingly moving away from the traditional pattern of a full time,
continuous career with the same employer
There are numerous ways in which employees are making changes to their working
patterns

Changes to working patterns

Examples of changes to working patterns

Job sharing involves two or more employees work at different times to complete the
tasks required for one job

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 Work is typically shared on a weekly basis, with job sharers communicating regularly
to ensure tasks are not missed
Your notes
This provides employees with flexibility whilst the employer benefits from the task
being completed
Employees may take a career break where they decide to stop working for a period of
time before returning to work in the same career
New parents often take career breaks until children are old enough to commence
formal education
A sabbatical is a formalised career break, frequently used by employees to study or
engage in other developmental activity such as travel
Downshifting involves a senior employee relinquishing their position to move to a
lower-paid position with fewer responsibilities
Downshifting may occur when individuals change career or as workers approach
retirement

Changes to working practices

The nature of work routines has changes significantly in recent years
Full-time roles with permanent contracts are in decline
A range of alternative work routines are growing in popularity

Changes to working routines

Examples of alternative working routines

Teleworking involves working at home or from any other location away from the
traditional workplace
Advances in communications technologies have allowed workers to work anywhere
with a reliable internet connection

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 Worker may attend a workplace from time to time for meetings or other essential
purposes
Flexitime allows employees to work a specific amount of hours of work at times of their Your notes
own choosing
Workers can fit work tasks around their other responsibilities such as childcare
Part-time work is where employers work for fewer hours than those expected in a full
time role
Employees on temporary contracts work for a business for a specific period of time,
often through an employment agency
There are increased calls for businesses to offer the opportunity for employees to fulfil
hours of work over four days of the week, rather than five
Between 2015 and 2019, Iceland ran a large 4-day workweek pilots with close to
2,500 people participating
The trial was considered an overwhelming success among researchers, with
employees reporting improved well-being, work-life balance and productivity

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 Resistance to Change & Change Management
Your notes

Reasons for resistance to change in the

workplace
Businesses operate in a continuously changing business environment
Changing internal factors such as business growth, new business ownership or
internal restructuring
Changing external factors such as changes to the market or technological
advancements
Resistance to change is a common phenomenon in the workplace
This is especially true when employees have little say in the design and
implementation of the change
The existing organisational culture can also play a significant role in resistance to
change, e.g. if the business culture is deeply rooted in tradition, resistance to
change is more likely whereas an innovative and flexible culture may mean that
employees are more receptive to change
The following factors contribute to employee resistance

Reasons for resistance to change

Factors that contribute to employees' resistance to change

Fear of the unknown

Many individuals find comfort in familiarity and could be worried about how the
change will affect their roles, responsibilities, and job security
New technologies, systems or processes often require employees to learn
unfamiliar new skills

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 Employees may fear that existing knowledge and skills will become obsolete,
making them less valuable or potentially leading to job loss
Loss of control Your notes
Change often involves a shift in power dynamics and decision-making processes
Employees who are accustomed to a certain level of autonomy and control may feel
threatened by the change
They may be concerned about how the change will impact their decision-making
authority or influence within the business
Disruption of routine
Employees may be comfortable with their current ways of working and are hesitant
to adapt to new methods
They may perceive the change as an inconvenience or an added burden that
disrupts their working life
Lack of trust
If employees doubt the intentions behind the change or have past experiences of
broken promises or inconsistent communication they may be sceptical about the
benefits of the proposed change
Lack of communication and inclusion
When employees feel excluded or uninformed about the reasons for the change,
its implications or how it will be implemented they are more likely to resist it
Perceived losses
Even if the change brings overall benefits, employees may focus on what they feel
they have lost such as reduced autonomy, changed job responsibilities or altered
relationships with colleagues

The pace of change

It's important to find a pace for change that is appropriate for the situation and which
takes into account the needs and concerns of employees
If the pace of change is too fast
It can create resistance from overwhelmed workers who feel unprepared and
that they don't have enough time to adjust
It may not be properly thought through or planned, resulting in poor execution
It may be difficult to communicate effectively leading to misunderstandings
and confusion amongst the workforce
If the pace of change is too slow it can result in
A lack of adaptability and innovation
A loss of momentum leading to delays or even the abandonment of the change

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 Communication efforts becoming stagnant leading to disinterest and
disengagement

Change management strategies Your notes

Change management strategies refer to the approaches and methods adopted to

successfully navigate and implement change in a business

The change management process

Steps in a Change Management Process

There are many different types of strategies (e.g. Kotter's Change Management)
These strategies all have several steps in common and if a business follows these
steps, then it should help to reduce resistance to change and improve the quality
of the transition

Common steps in a change management process

Step Explanation

1. Identify the change Clearly communicate the vision and reasons behind the
and communicate change, its benefits and the expected outcomes
clearly
Regularly update employees at all levels to keep them
informed and address any concerns or questions they may

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 have
Provide support throughout the change process,
recognising that change can be stressful for employees Your notes

2. Plan and resource Ensure that adequate resources are identified and
the change available in order to implement the change
A lack of resources is an indicator that the change has
not been properly planned which may undermine
employees' faith in the proposed change

3. Provide strong Leaders should demonstrate their commitment to the

leadership change and provide a clear vision that inspires employees
to embrace the change
Leaders should also lead by example and be visible
throughout the process

4. Engage stakeholders Identify key stakeholders who will be affected by the

change and involve them early in the process
Seek their input, address their concerns, and actively
engage them in decision-making
This helps build support and ownership for the
change.

5. Train and develop Provide adequate training and development programs to

equip employees with the skills and knowledge needed
to adapt to the change
This could include workshops, seminars, online
courses, or coaching sessions
The goal is to ensure employees feel confident and
competent in their new roles

6. Appoint change Appoint change agents or champions within the

agents organisation who can help drive and facilitate the change
process
These individuals should be enthusiastic, influential, and
capable of supporting and encouraging others during the
transition

7. Provide feedback Gather feedback throughout the change process by

regularly assessing progress, identifying any barriers or
resistance and making adjustments if needed
Collecting and acting on feedback from employees
demonstrates that their opinions are valued and helps to

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 reduce resistance to change

8.Celebrate success Recognise and celebrate milestones and achievements Your notes
along the way
For example, acknowledge individuals and teams for
their contributions and share success stories to
inspire others
This boosts morale, motivates employees, and
reinforces the positive aspects of the change

Large-scale changes can be overwhelming so it's often beneficial to break them down
into smaller, manageable phases
This allows employees to adapt gradually and build momentum as they experience
early successes, helping generate support for further change

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