2.1 HR planning

2.1 Human Resource Planning
• Many economically developed countries are
facing an aged population because fertility rates
are falling, life expectancy is rising, and the post
war baby-boomers are getting older.
• Organisations may need to reassess their
recruitment strategies as retirement age will go
• Migration can lead to a ‘brain drain’ from
countries with net emigration as skilled workers
are the ones with greatest mobility.
Nordic Countries Experience Labour Shortages
• In early 2008 Finland, Sweden, Norway, and Denmark introduced a
number of measures to attract skilled foreign workers.
Unemployment in these countries was lower than the European
average and employees were complaining of labour shortages and
rising wage costs that undermined export competitiveness.
• THE Nordic countries have responded to this by introducing a
number of measures including promotional videos, and simplified
and relaxed immigration rules and procedures. This made it easier
and faster for prospective employees to work in those countries.
• However, these changes have been largely unsuccessful, with most
immigrants leaving within a year or so.
Identify four factors that could have contributed to skilled labour
shortages in these countries. (8 marks)
Discuss additional measures that these governments could take top
reduce labour shortages. (10 marks)
Ford Motor Company
• Having laid off almost 34,000 workers in 2006, in early 2008 Ford Motor
Company was offering buyouts and early retirement to 54,000 more
• Ford also said that it would eliminate shift working at four US plants and lay
off some 2,500 workers, or almost 5% of its remaining workforce-as part of an
effort to cut costs and return to profitability in 2009.
• Ford said it would run its Chicago and Louisville, Kentucky, assembly plants on
one shift rather than the current two shifts starting summer 2008.
• Ford reported a loss of US $2.7 billion in 2007.
Define these terms:
Lay off
Early retirement
Shift work (2)
Discuss how the measures taken by Ford could help the company return to profitability. (8 marks)
Using appropriate motivation theory, evaluate the short-run and long-run implications of this strategy
on employee motivation. (10 marks)
Training and Appraisal
A sacked Eton College worker recently won a legal case for unfair dismissal against
her employer. An industrial tribunal ruled that Sarah Forsyth had been unfairly
dismissed after being bullied by her head of department. Eton College had argued
that the reason it did not renew her contract of employment was because Ms
Forsyth was a poor teacher.
The industrial tribunal was critical of art department head Ian Burke, who had a
meeting with Ms Forsyth five months before her dismissal.
The tribunal concluded that Mr Burke undermined and bullied Ms Forsyth,
repeatedly changed his version of events and was inconsistent in his evidence to
the tribunal and in the way he dealt with Ms Forsyth.
The school was criticised for failing to produce any written employee appraisal
procedure for the tribunal.
Tribunal concluded that no appraisal procedure was followed.
Eton College’s head teacher was criticised for not looking independently at Ms
Forsyth’s case.
What procedures would you expect to be in place before an employee is
dismissed? (6 marks).
Explain the steps the employer could have taken to avoid the member of staff
claiming unfair dismissal/ (10 marks)

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