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 up.

• 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.

1. Identify four factors that could have contributed to skilled labour shortages in these countries. (8 marks)

2. 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 employees.

• 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.

1. Define these terms:1. Lay off (2)2. Buyout(2)3. Early retirement (2)4. Shift work (2)

2. Discuss how the measures taken by Ford could help the company return to profitability. (8 marks)3. 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.

1. What procedures would you expect to be in place before an employee is dismissed? (6 marks).

2. Explain the steps the employer could have taken to avoid the member of staff claiming unfair dismissal/ (10 marks)