Human Resource

Management
Business Management | I5
Andrina Brunner
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 Human Resource Management – what is that?
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 Who is the
most
important Creditors

stakeholder?
Government
Sir Richard Branson’s (founder of Virgin Group)
take on the most important stakeholder:

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Quote by Sir Richard Branson

"Clients do not come first. Employees come first. If you take care
of your employees, they will take care of the clients."
- Sir Richard Branson

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Human Resource
Management
(HRM)
• …is the process of employing
and training people,
compensating them,
developing policies relating to
them, and developing
strategies to retain them.
• …fulfills an essential role in the
modern business
environment.

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Human Resource Management (HRM)
Although HRM often forms its own functional area, it is important
to recognize that every manager has some role relating to HRM.

Can you think of examples?:

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Human Resource Management (HRM)
Although HRM often forms its own functional area, it is important
to recognize that every manager has some role relating to HRM.

Can you think of examples?:

- most managers deal with motivation, compensation and
retention of employees

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Key functions of HRM
❑ Workforce planning
❑ Recruitment, selection, and induction
❑ Compensation and benefits management (financial and non-
financial rewards)
❑ Professional development and training
❑ Performance management and appraisal
❑ Employee relations
❑ Worker health and safety
❑ Dismissal and redundancies

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Workforce planning

• …is the process of analyzing,

forecasting, and planning workforce
supply and demand, assessing gaps,
and determining target talent
management interventions to ensure
that an organization has the right
people (who have the right skills in
the right places at the right time) to
meet its strategic objectives.

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Recruitment, selection and induction (HL only)
Recruitment and hiring new talent is one of the most important HR
functions.

Recruitment…is the process of finding and hiring the best and most
qualified candidate for a job opening.

Selection…is the process to chose the best candidate among all

applicants.

Induction…is the process to introduce the new employee to the job,

provide training and helps orientate them with the new work place
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Recruitment and selection process
• Interviews 1. …
• Analysis of job / prepare job 2. …
description 3. …
• Induction & training 4. …
• Choose candidate 5. …
• Job vacancy 6. …
• Applications screening 7. …
• Evaluate new employee 8. …
• Publish open position and find
candidate

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Recruitment and selection process
• Interviews 1. Job vacancy
• Analysis of job / prepare job 2. Analysis of job / prepare job
description application
• Induction & training 3. Publish open position and find
• Choose candidate candidates
• Job vacancy 4. Applications screening
• Applications screening 5. Interviews
• Evaluate new employee 6. Choose candidate
• Publish open position and find 7. Induction & training
candidates 8. Evaluate new employee

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Recruitment
and
selection
process
Recruitment and selection process(HL only)
1. Job vacancy: there is an open position in a company. This is
identified by HR and happens as a result of internal or external
factors.
2. Analysis of job: the HR department conducts an analysis of the job,
evaluating what the new position must be capable of, before
formulating the job description, specifying the role
3. Find candidates: the organization needs to decide on how to find
and attract the best candidates for the job. This involves deciding
where job advertisements are placed, to ensure people will see it.
Sometimes, an external recruitment agency supports this process.
4. Applications screened: once applications are received, the
screening process begins, and candidates are narrowed down
through shortlisting.

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Recruitment and selection process(HL only)
5. Interviews: Shortlisted applicants will be invited to interview. The
interview can be one-to-one, a panel (multiple interviewers), video
conference (online), multi-day (taking place over several days) or
staged (pass one stage move on to the next). Sometimes, interviews are
accompanied by some sort of test (task-oriented activities / personality
tests)
6. Chose candidate: once the successful candidate has been selected,
he will receive a job offer and benefits package
7. Induction and training: Once the new employee starts at the
organization, he/she will receive an introduction, training and support
to get them started.
8. Evaluate employee: the HR department may support employee
evaluations at the end of the training period

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Recruitment and selection process(HL only)
To employee evaluation:
In Switzerland, there is typically a ‘probation period’ of 3 months
at the beginning of a new job. This is also stated in the contract.
During these three months, both sides can decide to cancel the
contract within a few days (of the role does not fit). At the end of
the probation period, both decide together if the job fits well.

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Task:
• Pick a company of your choice and go to their website
• Try to find a page called ‘job vacancies’ or ‘job openings’ or ‘work
with us’
• Chose a job description, download it and send it to Ms Brunner
through teams
• Read the job description that you chose

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Key functions of HRM
❑ Workforce planning
❑ Recruitment, selection, and induction
❑ Compensation and benefits management (financial and
non-financial rewards)
❑ Professional development and training
❑ Performance management and appraisal
❑ Employee relations
❑ Worker health and safety
❑ Dismissal and redundancies

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Compensation and benefits management
These can be financial and non-financial rewards.

On your yellow post-it, write down one idea for a financial reward
you can give your employees (excluding basic salary) and on your
pink post-it, write down one idea for a non-financial rewards.

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Compensation and benefits management
These can be financial and non-financial rewards.

The HR team is responsible for:

- establishing salary ranges for job roles
- placing employees in the relevant salary band based on their
qualifications, experience, and achievements
- keeping up to date with current labor market trends
- benchmarking the remuneration packages against the going market
rate for similar jobs in the industry
- monitor wide benefits package, such as annual leave entitlement and
healthcare provisions

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Key functions of HRM
❑ Workforce planning
❑ Recruitment, selection, and induction
❑ Compensation and benefits management (financial and non-
financial rewards)
❑ Professional development and training
❑ Performance management and appraisal
❑ Employee relations
❑ Worker health and safety
❑ Dismissal and redundancies

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Professional development and training
On-the-job training
• …is delivered while the individual is working normally. Used to broaden the employees skillset and
to increase productivity.

Off-the-job training
• …employees learn more about their job and latest advancements in their field at a location away
from the workplace

Behavioral training
• …develop skills and abilities needed to perform well in a professional setting

Cognitive training
• …improves our brain skills, such as: think, read, learn, remember, reason, pay attention.

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Professional development and training

Examples for behavioral trainings: Top 10 most demanded skills:

• Communication
• Conflict resolution
• Self-improvement
• Time management
• Stress management
• Patience
• Empathy
• Decision-making
• Problem-solving
• Balance between work and life

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Top 10 most
demanded skills
Key functions of HRM
❑ Workforce planning
❑ Recruitment, selection, and induction
❑ Compensation and benefits management (financial and non-
financial rewards)
❑ Professional development and training
❑ Performance management and appraisal
❑ Employee relations
❑ Worker health and safety
❑ Dismissal and redundancies

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Employee relations
Two groups. Jointly decide on one sentence to explain what you
think employee relations are.

The HR Manager or team is responsible for maintaining positive relationships with employees
ensures that a pleasant work environment is created, which should lead to increased levels
of productivity.

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Key functions of HRM
❑ Workforce planning
❑ Recruitment, selection, and induction
❑ Compensation and benefits management (financial and non-
financial rewards)
❑ Professional development and training
❑ Performance management and appraisal
❑ Employee relations
❑ Worker health and safety
❑ Dismissal and redundancies

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Worker health and safety
Providing a safe and healthy work environment is a critical
function of HRM. What could this include?

• Create safety guidelines

• Provide employee wellness programs (like access to gym and
gym classes, vouchers for health services / premiums)
• Conduct emergency planning (what happens in the event of an
electricity outage, fire,…)
• Provide safe work clothing / equipment

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Key functions of HRM
❑ Workforce planning
❑ Recruitment, selection, and induction
❑ Compensation and benefits management (financial and non-
financial rewards)
❑ Professional development and training
❑ Performance management and appraisal
❑ Employee relations
❑ Worker health and safety
❑ Dismissal and redundancies

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Dismissal and redundancies
The HR department oversees dismissals and redundancies in the
workplace.

Dismissal: happens when the employer terminates a contract due

to the employee’s actions. The HR department ensures the
dismissal is fair, otherwise it can be challenged at a court.

Redundancy: a type of dismissal when the job role is no longer

needed.

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 Internal and external factors that
influence human resource planning

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Internal and external factors that influence
human resource planning

A variety of factors can affect an organization’s HR plan. Changes

within the business can mean internal factors are an influence,
whereas external factors can affect the pool of labor available for
employment.

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HOMEWORK
• Open your e-book
• Go to Chapter 2.1, pages 56-58
• Read about all internal and external factors influencing HR
planning until Thursday
• You are assigned one internal or external factor
• Prepare one slide explaining your factor until tomorrow evening
and send it to me through teams
• We will present on Thursday

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Internal and external factors that influence
human resource planning
Internal factors External factors
• Change in business organization • Demographic change /
• Change in business strategy immigration
• Change in business profitability • Technological change
• Change in labor relations • Government regulations
• Socio-cultural trends
• The state of the economy
• Labor mobility
• Emerging industries
• Gig economy

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 A change in business
organization
• It is one of the internal factors that can
influence Human Resources planning
• This is because as the structure of a business
changes, the jobs needed to be filled will also
have to change to accommodate
• Example: acquisitions and mergers lead to
organizational changes and almost always to
changes in HR planning

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Change in
business
strategy
• Business change strategies, also known as
change-management strategies, are plans of
action that help organizations transform,
evolve, and adapt to changes, opportunities,
and disruptions that are likely to unfold in the
future.
• Strategic change can take on many forms, such
as: Changes in Organizational Structure: This could
involve restructuring departments, merging roles
 Introduction:
• Brief overview of the relationship between business
profitability and HR planning.

Benefits of increased profitability:

Change in
• Achieve workforce expansion.
• Benefits in offering competitive salaries.

business
• Ability to attract high quality employees.

profitability
There are several things that can lead to changes in the
profitability of a business

•Changes in income: an increase in sales or income can have

a positive effect on profitability. This can be the result of
increased sales, higher prices or the introduction of new
products or services.
Change in Labor
Relations

Labor relations refer to the interactions and

negotiations between employers and employees,
encompassing the establishment and maintenance of
workplace conditions, wages, and other terms of
employment. The definition of labor relations has
evolved over time, reflecting changes in societal norms,
legal frameworks, and the dynamics of the modern
workforce.
• Relations between employer and employees can
be influenced by the decision to unionize.
• If existing trade union power reduces, this
could add a degree of flexibility to the business in
dealing with the workforce.
Hotel Workers Union strike
Internal and external factors that influence
human resource planning
Internal factors External factors
• Change in business organization • Demographic change /
• Change in business strategy immigration
• Change in business profitability • Technological change
• Change in labor relations • Government regulations
• Socio-cultural trends
• The state of the economy
• Labor mobility
• Emerging industries
• Gig economy

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Demographic change/immigration
• Falling birth rates, an aging
population, or rising net migration In other words: anything that affects
levels can impact the number of the population will inevitably affect
potential employees available in the amount of potential employees you
the labor pool. (as a business) could find

Immigration +/or Aging +/or Faliing birth rates = Change in(delta) potential
employees

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 TECHNOLOGICAL CHANGE
Improvements in technology can lead to
more remote working. It has become
increasingly common over recent years
for business to add video conferencing
and remote working technology to their
everyday practices. The rise of social
networking may also change the way
business communicate with employees.
An example for a change in government
regulations:

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 Socio-Cultural
trends

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State of the
economy

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Labor Mobility

Labor mobility measures the extent to which workers have the

ability and willingness to move between geographical locations
and/or occupations for their employment. There are two ways in
which this applies:
• Occupational mobility is how with how much ease a person can
change to a different job (broad skillset).
• Geographic mobility refers to how easily you are able to
change locations.
Both of these two factors influence the overall labor mobility of a
workforce and affects the labor pool of a country.
• Labor Mobility is an external factor and to summerize:
• Labor mobility consists of changes in the location of workers
both across physical space (geographic mobility) and across a
set of jobs (occupational mobility)

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 Energy Industry
The energy sector or industry includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, and refining. The energy industry
also includes integrated power utility companies such as renewable energy and coal.

An example could be The oil and gas industry (eni)that includes the process of exploratio,extraction, refining, transportation and product marketing to reach the
people
Emerging
Industries
Industries experiencing an above
average growth level must hire
additional staff at a rapid pace.

In 2021, Forbes identified artificial

intelligence , virtual reality,
renewable and alternative energy,
big data analytics, cyber security,
and cloud computing as the 6
biggest emerging industries for
investment.

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Internal and external factors that influence
human resource planning
Internal factors External factors
• Change in business organization • Demographic change /
• Change in business strategy immigration
• Change in business profitability • Technological change
• Change in labor relations • Government regulations
• Socio-cultural trends
• The state of the economy
• Labor mobility
• Emerging industries
• Gig economy

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 Gig economy

• The gig economy (sometimes referred to as the on-

demand economy) refers to labor markets in which
workers are given short-term or one-off contracts, such
as freelance work, rather than long-term or permanent
jobs.
• A growing sector in many parts of the world. In 2021, a
report by the McKinsey Global Institute suggested that
more than 5 million people in the UK worked in the gig
economy (around 15.6% of the total full and part-time
workforce in the country)
• Examples?

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Gig economy: examples

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Gig workers
Gig workers (sometime referred to as platform workers) are on-call,
independent contractors who enter into formal agreements with on-demand
businesses to provide certain services to the firm's customers. This is usually
done through an online platform or mobile app. Gig workers are paid for
each individual job (or "gig") they do, instead of traditional payment
methods such as wages per hour or salaries per month. Essentially, workers
in the gig economy are more like entrepreneurs (self-employed) than
traditional employees of a business.

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 Important Information from School
Management
To the school it is increasingly important to have a stronger school community and
to feel more as one school despite the two programs and diverse backgrounds. For
that reason, the school will implement the following measures from next school year
onwards:

• School exchange weeks between IB & Matura -> get to know the other program
• Three out of four weekends per month are spent at the school in the form of
community weekends, together with Matura students. The program is mandatory
for all
• Students are more involved in planning the community weekends
• No more dinner offered at the cafeteria, to support community building students
cook themselves in different group kitchens
• To reduce screen time / screen addiction, weekends are phone-free times from
Saturday 9am to Sunday, 9pm

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Key Concept
Reasons for resistance to change in the
workplace

Change can be unsettling for people, regardless of the scenario,

and this is no different in the workplace. It is not uncommon for
managers to come up against resistance from employees when
looking to implement changes that upset the status quo.

What might be some reasons why employees may push back

against change?

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Reasons for resistance to change in the
workplace
• Loss of job security -> cause of fear as their job might be at risk
• Prior change experience -> if the organization managed
changed poorly in the past and negative experiences are
connected to change, people will resist change
• Poor rewards system -> “how does this benefit me?” -> an
unclear answer is unsatisfying
• Surprise and fear of the unknown -> lack of transparency and
communication -> employees are not informed nor prepared
• Loss of control -> new routines take time to get used to

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Reasons for resistance to change in the
workplace
• Fear of failure -> people are comfortable with what they know
and may fear being unable to adapt to new requirements
• Not understanding the need for change -> resistance
stronger if the sense of urgency is not created
• Mistrust -> managers should establish a climate of trust, if that
is non-existent, resistance may arise

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HOMEWORK TASK
Human resource strategies for
reducing the impact of change
and resistance to change
Understanding why people resist change in the workplace is the first step to
helping managers overcome it. Having an idea of the key reasons why
employees may rebel against change means strategies can be developed to
overcome the resistance.

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6 strategies to reduce negative impact of
change and resistance to it
1. Communicating and educating on the change -> inform well!
2. Participative strategy -> let employees take part in designing
the change
3. Support -> as a company, offer support, to acquire new skills
4. Incentives -> could include extra pay, improved benefits
package or structured career plans
5. Co-opting -> bring the most resistant employees into central
roles in the implementation of change initiatives
6. Coercion -> if speed of change is critical, coercion (= force /
persuasion) my be the only option

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A model to support change

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 Ethical
debates
Perks of a
creative
workspace
 REMEMBER: they Key Concepts

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