Topic 2: Human Resources Management
2.1 Introduction to Marketing
Role: deploying and developing people within an organization to meet business objectives
Functions of HRM:
o Workforce planning
o Process of anticipating/meeting firm’s current and future staffing needs
o Recruitment and selection
o Training and development
o Performance management
o Pay and renumeration
o Discipline and grievances
o Employee welfare
Risks of bad workforce planning:
Recruitment
o Higher costs of recruitment, induction, training
Resources
o Directed at solving HR problems
Instead of meeting company objectives
Reservations for existing staff
o Lower morale
o Higher uncertainty levels
Returns
o Lower levels of productivity/profits
Reputation
o Poor corporate image if firm cannot retain employees
External Factors that Affect HR Planning
Demographic changes
o Net birth rate
o Net migration rate
o Retirement age
o Female workforce participation rates
o Aging population
Labor mobility changes
o Extent to which labor can move locations (geographical mobility)
Limitations:
Ties to family/friends
Relocation costs
Fear of the unknown
Costs of living in new area
Language/cultural differences
o Extent to which labor can change to different jobs (occupational mobility)
Limitations:
Worker’s qualifications, skills, experience, training, education etc.
Older workers tend to take less risks
Highly specialized employees
Discrimination from employers
Immigration
o Pay and renumeration
o Employment opportunities
o Seasonal factors
o Domestic instability
o Higher living standards
Flexitime
System where staff determines working hours
Subject to them meeting deadlines regardless
Two common forms:
Teleworking: – working away from the office through electronic communication methods
Homeworking: – when employees work from home instead of office
Flexitime Implications for Employees
Advantages Disadvantages
Job opportunities Higher reliance on use/reliability of tech.
Suitable for people with family commitments Workers often exceed contracted working hours
Flexible working hours Social isolation/boredom
Little/no commuting Less job security and trade union
Improves resource allocation efficiency representation
(less wasted time) Workers don’t interact as much as they
would in the office
Autonomy in decision-making Distractions at home; less focus
Possible income tax allowances Lack of authentic training and career
Increasingly affordable with lower tech prices development opportunities
Flexitime Implications for Employers
Advantages Disadvantages
Reduced overhead costs (rent, utilities etc.) High set-up costs
Flexible/extended working hours can be used to Recruitment must be very controlled
attend to clients Ensure employees are self-sufficient
Adjustable for peak/off-peak seasons Harder to manage, control , monitor staff
Tech. issues can cause major disruptions
Lower absenteeism rates Not always possible due to lack of working
space at home, or security for sensitive data
Gig Economy
Labor market where workers work short term, flexible and temporary contracts
Independent contractors provide services on-demand
Do not have permanent contracts
Advantages Disadvantages
Flexible for workers, businesses, consumers No regular income, job security, fringe benefits.
Flexibility of working for a variety of employers No clear career path, support from co-workers
Lower business costs Need to file their own tax returns; bureaucratic
Contractors/freelancers make extra income Burnout is common due to multiple jobs/tasks
Risked firm’s reputation if outsourced
More control over work-life balance
contractor provides poor quality services
Resistance to Change
4 main reasons:
Self-interest
Low tolerance
Misinformation
Different points of view
2.2 Organizational Structure
Organizational structures arrange employees to show the following info:
o Job titles
o Accountability
o Responsibility
Delegation: – passing on of control to others within firm
– essential for growth
– one manager can’t effectively control every aspect of a
firm
Span of control: – number of people directly accountable to one manager
Levels of hierarchy: – levels of the organizational structure based on ranking system
– most skilled/senior employees appear at the top
Chain of command: – formal line of authorities through which orders are passed down
Bureaucracy: – execution of tasks governed by official administrative/formal rules of firm
– often introduce inefficiencies