Table of Contents
Human Resource Planning
| Human Resource Planning | involves analyzing and forecasting the numbers of workers and the skills of those workers that will be needed by the organization, e.g. new recruits are needed as a business expands or because current employees leave |
Human Resource Planning involves an analysis of historical data relating to the size of the workforce, the workload and mobility of employees, labor turnover rates and demographic trends in society.
HR Planning also deals with absenteeism.
| Absenteeism | the number of staff away from work as a percentage of the firm’s total workforce per time period |
Labor Turnover
| Labor Turnover | the rate of change of human resources within an organization per period of time |
Formula
Causes of High Labor Turnover
- Better pay and working conditions of competitor firms
- Unhappy and discontented workforce
- Staff being inadequately trained so feel incompetent and demotivated
Having a high labor turnover rate would lead to higher costs of recruitment and retention. It will also use up a large amount of management time.
The higher the labor turnover rate, the lower the stability and continuity of the business.
Internal and External Factors That Influence Human Resource Planning
Demographic Change
Demographic change refers to developments and trends in the population that influence workforce planning. For example:
- average age of the population
- gender distribution
- eucational attainment levels
- average household incomes
Lower brith rates, falling death rates and increased life expectancy in a lot of more economically developed countries has led to an ageing population, which means an increase in teh average age of the population. This led to several implication on workforce planning:
- reduced labor mobility
- lower labor productivity levels
- changing consumption patterns
Change In Labor Mobility
| Occupational mobility | ease and flexibility of workers in moving from one job to another due to their ability and willingness to switch |
On the other hand, occupational immobility is the inability of workers to move from one job to another, due to a lack of skills, expertise or qualifications.
| Geographical mobility | the extent to which workers are able and willing to relocate to another area for employment purposes |
By contrast, geographical immobility is the reluctance of workers to move to another location. This may be caused by factors including:
- family ties
- relocation costs
- property prices
- higher costs of living in new locations
International labor mobility is even more difficult to achieve. Expatriate workers are often highly remunerated as an incentive for them to relocate overseas.
Labor mobility can be improved by the business offering training and development programs to its employees.
New Communications Technologies
New communications technologies make it easier for larger businesses to recruits globally through their websites and video-conferencing facilities, leading to reduced costs of online advertising, recruitment and interviews.
The technologies make it possible to train and develop workers in a more efficient manner, for instance, through online training courses or webinars. Computerized testing programs also elp firms assess the understanding and progress of trainees.
Clearly, new communications technologies reduce the costs of business meetings and seminars due to the growing use of high-quality video conferencing services.
Standard Process of Recruitment
Job Analysis
| Job Analysis | process of identifying what a particular job entails, for example, the tasks, roles, responsibilities and skills required. From the analysis, the job description and person specification documents can be created. |
Job Description
| Job Description | document that provides details of a particular job. For example, the job title, roles, duties and responsibilities. |
Person Specification
| Person Specification | document that gives the profile of the ideal candidate for a job. For example, a description of the qualifications, skills, experience, knowledge and other attributes. this is used as part of the selection process for shortlisting candidates for interview. |
Application Process
Candidates need to complete an application form for the job. They may also need to include a curriculum vitae (or resume) – a document which outlines the applicant’s educational achievements, professional qualifications, employment history, skills, accomplishments, hobbies and interests.
Shortlisting
| Shortlisting | systematic process of identifying and selecting the few most suitable candidates from all the applicants for an interview, because they best fit the profiles in the job description and person specification. |
Shortlisting eliminates unsuitable candidates from the recruitment process. The ones who are selected are then invited for interviews and testing in order to select the most suitable candidate for the job.
Testing
Testing is done to ensure the best candidate for the job.
- Aptitude testing: a method of assessing the skills and ability of a candidate to do a particular job, for instance, typing speed for a receptionist or driving ability fr a driving instructor
- Psychometric tests: used to assess the attitudes and personality traits of candidates, for example, their level of drive and their ability to deal with stressful situations to ensure that they are good matches to the organizational culture
- Trade tests: industry-specific assessments used to examine the candidate’s skills and expertise in a specific profession
- Intelligence tests: used to assess a candidate’s skills of numeracy, literacy and general knowledge
Background checks are carried out by referees who are most likely to be the current or last employer, to ensure information declared by the applicant is truthful and to get a character reference so the business can assess the suitability of the candidate.
Job offer
| Job offer | when the job is offered to the most suitable candidate prior to issuing a contract of employment |
Types of Recruitment
Internal Recruitment
| Internal Recruitment | hiring of people from within the organization to fill a job vacancy. It is usually used for targeting suitable employees for supervisory or management positions. |
Advantages and Disadvantages of Internal Recruitment
| Advantages of Internal Recruitment | Disadvantages of Internal Recruitment |
| lower risks as the employer already knows the strengths and suitability of the existing worker | ‘dead wood’ (outdated practices) might exist in the organization so an external candidate could bring in new ideas |
| relatively lower costs of recruitment compared to external recruitment | similarly, external candidates may be more skilled or better qualified |
| it is generally faster than external recruitment | a lower number of applicants can mean the employer has fewer candidates to choose from |
| it strengthens the loyalty of employees as there are career development opportunities within the organization | it can create unnecessary internal competition and conflict between existing workers who apply for a particular job |
External Recruitment
| External recruitment | hiring of people from outside of the organization. It requires placing job advertisements using a range of media to attract potential applicants, for example, newspapers, websites and trade magazines. |
Advantages and Disadvantages of External Recruitment
| Advantages of External Recruitment | Disadvantages of External Recruitment |
| ‘New blood’ – people hired outside the organization can bring in new ideas and ways of thinking. | Greater degree of uncertainty – when hiring external recruits, managers take a risk as they do not really know the candidates or their ability to do the job effectively |
| Wider range of experiences – external recruits might be more qualified or more suitable than any of the internal candidates, perhaps because they have gained the experiences and skills required by the business. | Time-consuming – advertising, shortlisting, interviewing and checking references all take up valuable management time. |
| Larger pool of applicants – businesses will have a wider range and larger number of people applying for the job. | Expensive – costs of job adverts in newspapers are usually high. There is also the time used up by managers involved in the recruitment process. |
Methods of Training
| Training | process of teaching a particular new skill or knowledge in order to develop a person’s competence in the workplace. The sole purpose is to match the skills of employees with the needs of the business. |
General Objectives of Training
- enhance the efficiency of staff
- improve the quality of work of employees (including customer service)
- facilitate career and personal development of employees
- develop a multiskilled and productive workforce
- help staff adapt to change (e.g. technological organizational, social and legal)
Benefits of Training
- better skilled and more flexible workforce
- improved competence
- better productivity and efficiency of workers
- higher staff morale and chances of promotion
- quality of output and level of customer service increase
- higher flexibility/easier to adapt to changes in the organization
On The Job Training
| Induction | type of training intended for employees who are new to the organization. It aims to support new staff in getting acquainted with the people, plans, policies and processes of the firm. |
| Mentoring | process of an adviser or mentor providing support to less experienced workers in various aspects of their job role, for example, a head of department providig advice and training to new employees |
Advantages and Disadvantages of On The Job Training
| Advantages of On The Job Training | Disadvantages of On The Job Training |
| cheapest form of training if then firm uses in-house specialists to provide the training | trainees may pick up bad working habits from the trainer |
| fewer disruptions to daily operations as the trainee is still at work | internal staff may lack the necessary skills, confidence and experience to deliver the training |
| can help to build better relationships at work due to team working | internal trainers cannot get their own work done whilst planning or delivering the training |
Off The Job Training
| Day Release | Distance Learning | Seminars |
| Employees take time off work to attend training at a local college, training centre or conference centre | employees undertake self-study courses to improve their skills and qualifications, perhaps by attending evening classes or following an online training course | staff attend a lecture or meeting as part of their professional learning and training |
Advantages and Disadvantages of Off The Job Training
| Advantages of Off The Job Training | Disadvantages of Off The Job Training |
| a wider range of skills and qualifications can be obtained | it is more expensive than on the job training e.g. training program fees |
| staff can learn from outside specialists or experts who may not exist within the organization | lost productivity during time when staff attend the training |
| employees are not distracted from the daily operations in the workplace | employees new skills and qualifications may decide to leave the firm for better jobs elsewhere |
Cognitive Training
| Cognitive Training | exercising and developing the mental skills of employees so as to improve their performance and productivity. It focuses on improving memory, attention, perception, reasoning, judgement and general learning skills. |
Behavioral Training
| Behavioral Training | seeks to change or improve the patterns of behavior at work based on the desired outcomes. |
Examples include:
- team building
- conflict resolution training
- anger management
- stress management
- leadership training
- mindfulness
- emotional intelligence courses
- health and safety training
Types of Appraisal
| Appraisal | formal assessment of an employee’s performance with reference to the roles and responsibilities set out in the job description |
Reasons For Conducting Appraisals
- assessing an employee’s performance against pre-agreed targets
- identify training needs of the individual employee
- helping the management to reward high achieving employees
Formative Appraisal
Formative Appraisal takes place on an on-going basis to enable employees to improve their job performance.
It helps to identify an employee’s strengths and weaknesses in a specific role or the progress made in a particular task or project.
Additionally, it helps the business identify the training needs of an individual employee.
Summative Appraisal
Summative Appraisal take place periodically, for instance, every year (annually) or every three months (quarterly), conducted by the line manager who summarizes the personal performance and achievements of the appraisee.
The goal of summative appraisal is to evaluate the contribution of workers by comparing this with a predetermined standard or benchmark to make a professional judgement of a worker’s competency and to identify areas in need of improvement.
360-degree Feedback
360-degree feedback is an appraisal system that involves getting comments, opinions and information about an appraisee form the various groups of people who work with that person, e.g. peers, line managers and subordinates.
This type of feedback is usually obtained through:
- questionnaires
- surveys
- observations
- interviews
Self-appraisal
Self-appraisal involves employees evaluating themselves against a predetermined set of criteria. The appraisee reflects on their strengths and weaknesses in order to set new targets for themselves.
Usually, the self-appraisal is compared to the assessment carried out by the line manager and then used as a basis for subsequent discussions.
Processes of Dismissal and Redundancy
Dismissal
| Dismissal | the termination of a worker’s employment due to incompetence or a breach of contract. |
Dismissal is usually seen as being fair in the following situations:
- incompetence
- misconduct
- gross misconduct (theft, fraud, endagering others)
- legal requirements
Dismissing a worker usually consists of three steps:
- initial verbal warning about misconduct or unacceptable conduct at work
- official written warning for repeated misconduct
- any further repeated cases of misconduct results in immediate termination of contract/being dismissed
Redundancy
| Redundancy | when a firm can no longer afford to employ a worker, when a job ceases to exist due to the completion of a project, or a lack of available work |
Redundancies can be voluntary or compulsory.
Voluntary redundancies are often associated with generous compensation packages such as severance pay.
Involuntary redundancies happen as a last resort, often causing low staff morale and instability in the organization.
Changing Employment Patterns and Practices
Teleworking
| Teleworking | employees working away from the office by using electronic forms of communication. For example, telephone, the internet or mobile technologies. |
Teleworkers can benefit from autonomy in decision making and the absence of strict company policies, such as dress codes.
However, productivity can be a problem due to the distractions at home or the lack of control when working outside of an office environment.
Flexitime
| Flexitime | variable work schedule requiring employees to work a set number of hours but giving employees |
Flexitime can help improve employee morale and productivity by improving the way they operate.
However, flexitime has cost implications for the business as managers need to supervise and monitor the hours actually worked by all flexitime employees.
Migration For Work
Migrants usually move to other countries in search of employment opportunities.
Migration refers to the movement of a person or people from one country, locality, place of residence, etc., to settle in another.
Clearly, due to increasing globalization, the migration of skilled workers has increase and internet technologies enable better flows of information to workers looking for job opportunities overseas.
Part Time
Part time is an employment practice that hires workers for fewer hours per week than those with a full-time job.
Of course, part-time and shift workers have greater flexibility in their operational hours.
However, part-time jobs do not qualify for the same employment benefits as those on full-time contracts.
3 Human Resource Strategies
Outsourcing
| Outsourcing | the use of external providers for certain non-core business activities, for instance, cleaning, catering and security. |
Most organizations outsource their non-core activities to third party firms to reduce costs and to focus on their main business functions.
The outsourcing firm gives specialist services on a contract basis and at highly competitive prices. They also help improve the quality standards of products or services provided by businesses.
Offshoring
| Offshoring | practice of relocating business functions or activities abroad. It is pursued mainly because of lower production costs by using cheaper labor in less economically developed countries and lower operational costs e.g. lower training costs. |
Countries such as India, Vietnam and Philippines have seen a sharp rise in MNCs choosing to offshore their operations such as customer service call centres, accountancy services, and computer software development.
Re-shoring
| Re-shoring | transfer and relocation of a firm’s overseas operations back to its country of origin due to cost or competitive advantages. |
There has been an increase in re-shoring in countries such as the UK and USA due to incentives offered by domestic governments for relocating production back to home countries.
Additionally, the increasing cases of unethical labor practices, product recalls and low quality output from off-shored production units has negatively impacted the reputation of multinational firms, thereby forcing them to pull out of their overseas operations.
How Innovation, Ethics, and Cultural Differences May Influence Human Resource Practices and Strategies In An Organization
Innovation
Human resource managers are increasingly relying on the use of information communications technologies (ICT) in workforce planning, e.g. the use of company websites to advertise job vacancies or video-conferencing facilities to conduct job interviews.
Social media and networks such as LinkedIn, Facebook, and Instagram are also used as part of the recruitment process.
Ethics
The unethical treatment of workers has huge consequences, e.g. lower staff morale, negative corporate image and costs of possible lawsuits.
Unethical business practices of some off-shored firms, such as the use of child labor mean that more businesses are choosing to re-shore their operations.
Culture
Organizations with high rates of labor turnover may suffer from poor human resource management and a weak corporate culture.
The culture of some firms surrounding how they manage their human resources, for instance, are viewed as a long-term investment so training and development become integral to their business strategy.
Simple Review Questions
- What is meant by human resource management?
- What is labor turnover and how is it calculated?
- State 2 demographic changes and how do they influence human resource management!
- How do new communication technologies influence human resource planning?
- Identify the common steps in the recruitment process!
- Differentiate between internal and external recruitment!
- State 3 objectives and benefits of training!
- Explain the differences between formative appraisal, summative appraisal, 360-degree feedback and self-appraisal.
- What is the difference between dismissal and redundancy?
- Describe any 3 changing work patterns and practices.
- Why do business use outsourcing and offshoring while other prefer re-shoring?
Past Paper Review Questions
Question 1
Answer
(a) Labour turnover is a measure of personnel effectiveness and refers to the percentage of a firm’s workforce that leaves the organization per time period, usually one year. A relatively low labour turnover rate is generally desirable as this reduces the time and money needed to recruit new staff.
Award 1 mark for a vague understanding of labour turnover.
Award 2 marks if the concept of labour turnover is clearly understood with appropriate terminology and examples likely to be used.
(b) Reasons why businesses, such as the Trump Organization, may need to recruit more workers include:
- Expansion – as an organization grows, so does the need to hire more workers, e.g. the 6000 jobs created by Trump’s golf development in Scotland.
- Labour turnover – to replace staff who have left the organization.
- Restructuring – new job opportunities may exist within the organization due to a restructuring of staff roles and responsibilities.
Award 1–2 marks for a vague answer that lacks detail and/or depth. Only one reason might be provided.
Award 3–4 marks if there are good explanations of two reasons why a business, such as the Trump Organization, might need to hire new/more workers. Examples are appropriately used.
(c) It is important for a business, such as the Trump Organization, to be aware of and understand the labour turnover within its organization for several reasons, including the following:
- A high labour turnover rate will add to the costs of recruiting, inducting and training new staff. Knowledge of turnover rates will inform managers about trends and aid their workforce planning.
- High labour turnover can affect the corporate image of an organization in a negative way, e.g. potential recruits will wonder why so many people have left the business.
- Controlling labour turnover is essential as it ensures the business can continue to run smoothly, thereby helping to maintain its competitiveness.
Award 1–2 marks if the answer lacks detail and/or substance. The answer might be presented in a list with no or minimal explanation.
Award 3–4 marks if there is a good commentary on the importance of understanding labour turnover in business organizations. At the upper end, appropriate examples are used to substantiate the answer.
Question 2
Answer
(a) An ageing population occurs when the average age of the workforce rises, perhaps due to a combination of:
- A lower birth rate (largely due to the opportunity cost of raising children)
- Longer life expectancy (linked to improved health technology)
- Flexible working practices that enable people to work beyond retirement age
Award 1 mark for a vague understanding of ageing population.
Award 2 marks if the answer shows a good understanding of ageing population, with appropriate use of business management terminology.
(b) Constraints include:
- The sustainability of USA’s high population (and population growth), e.g. quicker depletion of the world’s scarce resources
- Impacts of an increased dependent population, e.g. higher taxes
- Problems of overpopulation (e.g. congestion) and their negative impact on businesses Inflationary pressures caused by rising levels of demand/spending in the economy.
Opportunities include:
- A larger population means a greater potential customer base for businesses operating in and exporting to the USA
- The demographic changes create opportunities for workforce planning, e.g. a greater pool of workers to choose from
- As the only industrialized country with significant population growth, the USA could attract a huge amount of foreign direct investment
- Much of the population growth is attributed to migrants; thus there might be business opportunities to cater for these various ethnic groups
- Greater opportunities for flexible working practices with a growing and ageing workforce
Award 1-2 marks for a vague answer that lacks detail and/or depth. Award up to 2 marks if only opportunities or constraints are outlined. Award 1 mark for a list-like answer that lacks clarity.
Award 3–4 marks if there is a good outline of both constraints and opportunities of the demographic changes mentioned in the case study. Relevant examples are used with appropriate use of business management terminology.
Question 3
Answer
(a) It is important to produce effective job descriptions because well-defined job descriptions help attract the right potential applicants, e.g. an educational assistant who is patient, shows initiative and works collaboratively. By contrast, poorly defined job descriptions can lead to inappropriate candidates applying for jobs and/or lead to conflict about what the job actually entails.
In addition, an effectively produced job description can prevent (too many) people calling or emailing for more information, thereby allowing current staff not to be distracted from their work. Effective job descriptions will therefore provide sufficient detail to inform the targeted group of recruits, e.g. a qualified educational assistant to work in the Learning Support Department.
Job descriptions are often used in appraisal meetings with the Head of Department. Well-defined job descriptions therefore provide useful documentation to assess the extent to which a worker has fulfilled the duties they were hired for.
Award 1–2 marks if there is some understanding of the reasons why job descriptions are of importance to a business, although these may not be appropriately developed or explained.
Award 3–4 marks for a thorough explanation of the reasons why effective (well-defined) job descriptions are of importance to businesses such as Fonthill Primary School. There is appropriate use of examples and business management terminology.
(b) The given job advertisement provides a good amount of detail about the job, e.g. job title and working hours. There is also a brief outline of the person specification, e.g. patience, initiative and experience. A broad overview of what the job entails is provided, with details of the closing deadline. There is also mention of a contact name (the school principal). This should provide sufficient information for potential candidates.
However, the advertisement does not really stand out and there is a lot of text all squeezed together (making it more difficult to read). It would also be useful to include the school website address, an email or telephone contact for the school (there is no mention of how to get an application form). Finally, to prevent inappropriate candidates from applying, it may also be helpful to have any professional qualifications that are needed for the job.
Award 1—2 marks if the answer lacks detail/is vague and may be presented as a list, with no/little relevance to the issue in question.
Award 3—4 marks if the answer is sound but lacks detail or substance in certain areas. There is adequate use of business management terminology, although the answer may be one-sided, i.e. lacks balance.
Award 5—6 marks if there is a balanced examination of the job advertisement. The answer is detailed and probing, with good use of business management terminology.
Question 4
Answer
(a) The existence of low wages and few opportunities for (career) promotion may create problems for hoteliers because:
- Low wages and few opportunities can prevent a sufficient pool of workers being attracted to the industry
- They can reduce morale and motivation in the workplace, thus creating problems for the hotels, e.g. poor customer service
- Existing workers might be attracted by higher wages being offered in other industries Existing workers may choose to leave due to the lack of promotional opportunities.
Award 1–2 marks if some potential problems are identified although the answer lacks detail/depth. The answer might be no more than a list of reasons without any explanation.
Award 3–4 marks if relevant potential problems are adequately explained (with reference to both low wages and few opportunities for promotion). There is good use of examples and application of these problems to the hotel industry.
(b) The view that training and development are burdens so should be minimized can be substantiated to some extent because:
- Training and continuous professional development are expensive
- Planning and delivering training can also be very time consuming
- There is no guarantee that staff who are trained and professionally developed will remain with the organization
- It might be difficult to justify the costs of training for low-skilled hotel staff
- Not all training programmes, or aspects of the training, may be suitable or relevant.
However, there are counter-arguments because:
- Without adequate training, staff may be unable to perform their jobs
- Continuous professional development is required in order for workers to be equipped with new skills to cope with changes in the external business environment and to maintain their level of motivation in the workplace
- A firm that does not train and develop its staff will tend to experience relatively higher rates of labour turnover
- A more productive workforce (through training and development) can bring competitive advantages to a business
- It can also be harder to attract employees to an industry (such as the hotel trade) without adequate training.
Award 1–2 marks for a generalized answer that lacks detail or is presented in a list-like manner.
Award 3–4 marks if there is sufficient depth, although the answer lacks a balanced argument. At the lower end,
there is little if any application to the hotel industry.
Award 5–6 marks if there is a good discussion that considers both the costs and benefits of training and development, with appropriate examples and application made to the hotel industry. For full marks, the candidate must address the extent to which training and development should be minimized.
Question 5
Answer
(a) Redundancy exists when a business, such as MySpace, retrenches workers because they are no longer needed as the firm can no longer afford to employ them. This is largely due to the growing popularity of Facebook, its main rival.
By contrast, dismissal occurs when a worker has been removed (sacked or fired) from his or her position, usually because of misconduct and/or underperformance in the job.
Award 1–2 marks if the terms are defined although they lack detail/clarity. Examples might also be missing. There may be no attempt to distinguish between the two terms.
Award 3–4 marks if both terms are clearly defined and a distinction is made. There is good use of examples and proficient use of business management terminology.
(b) Workforce planning will require MySpace to prepare its human resource needs by looking at the current and future staffing requirements. Given the situation facing MySpace, retrenchment of half its workforce in the USA would allow the online firm to better meet its human resource planning targets, especially due to the huge and growing popularity of Facebook. In addition, personnel needs will probably have to change following MySpace’s diversification to ‘allow unsigned musicians to post and sell music on their website’. This could involve MySpace having to hire, train and develop appropriate staff to facilitate the new service.
Since MySpace faced reduced demand for its services, there is clearly a need to cut costs. Retrenching staff means that the firm lets go of staff who are surplus to needs, especially those at the lower end of the hierarchy. They are usually the easiest (and cheapest) target group to make redundant. If the situation improves for MySpace, following its diversification strategy, it would also be relatively easier to recruit low-paid staff to meet its future workforce needs.
In addition, rival social network sites, such as Facebook and Twitter, had reduced MySpace’s market share. The hiring of excess staff would simply add to its costs without any corresponding increase in revenues. Hence, with declining demand for its services, it would not be rational for MySpace to retain its current workforce.
Award 1–2 marks for a generalized answer that is descriptive, or lacks substance/relevance (to MySpace). The answer might appear in a list-like format.
Award 3–4 marks if there is an examination of the reasons for retrenchment, but the answer might lack detail and/or application to the case study.
Award 5–6 marks if there is a thorough analysis of the reasons why retrenchment would be suitable for MySpace, with reference to its workforce planning targets. Appropriate business management terminology is used in the context of the case study.
Question 6
Answer
(a) Flexible work structure refers to the use of a more flexible workforce, i.e. staff with the ability to multitask (carry out a range of different tasks or jobs) and to adapt to changes in the business. For example, Charles Handy’s theory of the shamrock organization suggests that businesses such as McDonald’s will increasingly use fewer core staff in order to improve their flexibility by employing more part-time workers.
Award 1 mark for a vague understanding of flexible work structures.
Award 2 marks if flexible work structures is clearly understood with appropriate development and examples used.
(b) The costs and benefits of flexible work structures to employers, such as McDonald’s, and their employees include those outlined below:
- Higher staff turnover as there tends to be less employee loyalty among the non-core staff
- Lower remuneration packages for part-timers (a cost to the employee but a potential benefit to employers)
- Relatively easier to employ part-time staff
- Job creation opportunities, mainly for university students and women, who can choose their own hours of work to suit their lifestyles, i.e. university studies and childcare
- Flexibility has allowed McDonald’s to open for extended hours, and even 24/7 in some of their restaurants There is often less job security and less trade union representation for part-time workers
- With more flexible work structures, management control is made more difficult as the number of peripheral staff increases whilst the core staff are reduced.
Award 1–2 marks for a generalized answer that is descriptive or lacks substance. There is some understanding shown.
Award 3–4 marks if there is an examination of both the costs and benefits of flexible work structures, although it lacks depth/clarity. Award up to 3 marks for a one-sided answer.
Award 5–6 marks if there is a thorough examination of both the costs and benefits of flexible work structures to organizations and their employees. Appropriate business management terminology is used and there is reference made to the case study.
(c) The shortages of labour (largely due to ageing populations) has meant that firms such as McDonald’s offer more flexible and attractive employment options to their workers. The consequences of such changes in working patterns include:
- attracting women and part-time employees by offering flexible working hours
- cutting the number of core staff and hiring more part-time and peripheral workers (Handy’s shamrock organization)
- organizational restructuring resulting from a reduced core staff and more part-time staff (and in some cases teleworkers or homeworkers)
- offering training opportunities to allow some employees to work from remote locations, e.g. their own homes
- appointing and/or retaining more mature workers who have the necessary skills
- offering training opportunities to develop the skills of existing employees, and to boost their morale in the workplace
- offering training opportunities to internally promote certain members of staff (important for motivation and staff retention)
- outsourcing non-essential activities.
Given the need for more flexible working structures, businesses need to adjust their staffing needs and alter the way in which they recruit and train their workers. Due to labour shortages in many economically developed countries, staff retention becomes more crucial, so the recruitment, training and continuous professional development of staff need to be managed effectively.
Award 1–3 marks if the answer lacks detail and is limited in scope. It is unlikely that all three components (workforce planning, recruitment and training) have been covered.
Award 4–6 marks if answer shows some understanding of the consequences of flexible working patterns, although the answer might not cover all three areas (workforce planning, recruitment and training).
Award 7–9 marks if the discussion covers the consequences for workforce planning, recruitment and training, written in the context of flexible working patterns. There is good application of the stimulus material. At the top end, there is clear evidence of critical thinking and evaluation.
Question 7
Answer
(a) Outsourcing is the practice of subcontracting non-core activities to external firms or agencies as a method of reducing costs and improving efficiency. In this case, Ashmount Primary School is outsourcing aspects of its teaching to BrightSpark Education.
Award 1 mark if the answer shows some understanding of outsourcing, although the answer might lack clarity.
Award 2 marks if outsourcing is clearly defined, with the use of an example related to the case study likely to be used.
(b) Arguments in favour of Ashmount Primary School outsourcing some of its teaching to tutors in India include:
- It is far cheaper to use tutors from BrightSpark Education in India, costing £12 an hour for each student compared to hiring private tutors at a cost of £40 an hour (over three times more expensive).
- Online education also helps to cut costs for Ashmount Primary School as there is no need to pay for/ rent a physical building and the associated running costs (e.g. lighting and heating).
- The corresponding increase in the quality of teaching (of mathematics) provides further justification.
- The Maths graduates are fluent in English and have the correct expertise/experience to tutor the students of Ashmount Primary School.
However, the disadvantages of outsourcing for the school include:
- There is controversy about whether outsourcing the school’s core activity (teaching) is in the best interest of the organization and its students.
- There will naturally be concerns about quality assurance issues at BrightSpark Education, given the cultural gap between tutors (and students) in the UK and India.
- Outsourced tutors in India need to be monitored to ensure that deadlines and quality standards are met. This will increase administrative costs to Ashmount Primary School.
- The benefits of outsourcing are subject to changes in the external environment, e.g. rising labour costs in India will reduce the financial benefits of outsourcing to BrightSpark Education.
- Lack of local knowledge – can the graduate tutors in India really address ‘local’ educational issues of students in North London?
Award 1–2 marks for a generalized answer that is descriptive or lacks substance. The answer might appear in a list-like format.
Award 3–4 marks if the answer lacks coherence or is unbalanced. Relevant examples might be missing.
Award 5–6 marks if there is good discussion of both the arguments for and against Ashmount Primary School using a subcontractor. Appropriate terminology has been used with some reference to the case study. No evaluation has been attempted.
Award 7–8 marks if there is a thorough discussion of the arguments for and against outsourcing, written in the context of Ashmount Primary School. There is a justified conclusion about the decision to outsource some of the teaching to tutors in India.
Command Terms
References
- https://www.amazon.com/International-Baccalaureate-Business-Management-Hoang/dp/1921917245
- https://www.amazon.com/Business-Management-Diploma-Study-Revision/dp/1471868427
- https://www.ibbookshop.co.uk/product/business-management-answer-book-for-3rd-edition-downloadable-pdf/
English