5RST Assignment Example

 

AC 1.1

The labour market determines different factors including cost of production. The labour market affects both the private and public organizations. Organisations make a choice of the production locations based on the state of market labour. The analysis herewith is a comparison of the labour market in the UK and in Saudi Arabia.

With the employment rate continually rising, the UK currently has an unemployment rate of 4.7% (Ons.Go.UK). In regard to the working population, it is estimated that over 29 million people are working with men being 80% and 72% of the women are also working. The percentage of all working people have remained stable over the years from a rate of 70% recorded in the year 2009 to 75% recorded in 2019 (Ons.Go.UK).

Saudi Arabia has a low unemployment rate also stagnating from 4.35% to 6.4% (Aydin & Alquayid, 2019). Over the last ten years, the unemployment rate has increased from 5.0% to 6.04%, which is relatively low. On the other hand, the ratio of the females to the total working force in Saudi Arabia is 15% in the year 2019 (Aydin & Alquayid, 2019). This is a low rate compared to the UK statistic, which stands at 72%. In both countries, the trend on unemployment rate depicts that the labor market is characterized by higher wages due to the low unemployment market (Aydin & Alquayid, 2019). In addition, choice of the working with women is difficult in Saudi Arabia because only 15% of them are working.

AC 1.2

An employer of choice is becoming an organisation that offers fantastic working environment, culture, and employee sensitive in a manner that helps to retain the best talent (Simionescu & Naroş, 2019). An employer of choice is one that is interested in the wellbeing of the employees and customers. An employer of choice exhibits appropriate characteristics that are attractive to the employee. First, the employer provides job security. In this case, employer ensures that the workers are financially empowered and that their positions are secured such that they concentrate on working. Secondly, employees are empowered and have authority when making decisions (Simionescu & Naroş, 2019). In this case, the employer gives them a chance to get involved in the strategic decision making process: goal settings, values, as well as receiving feedback from them. Employers and employees demonstrate mutual respect.

There is an opportunity for growth in the organisation and they feel encouraged to develop their skill. Employers offer performance development, appropriate career paths, training and development opportunities as well as promotional channel. An employer of choice is one who provides the needed work life balance to the employee. Some of the examples of the work life balance are flexible scheduling, allowing undistracted by the family, and minimizing the employees stress to accomplish the life changes (Simionescu & Naroş, 2019). In addition, the employer should have a good performance culture by tying the interest between the employee and employer. In this case, the organisation should have a good compensation system and performance plan. Having an employer of choice has a positive impact on the labour market. First, it makes the organisation a competitive firm in the labour market as it will attract talented employees. Secondly, it makes the organisation have a motivated workforce that acts as ambassadors for the company in retaining the best workforce (Simionescu & Naroş, 2019). The organisation creates loyal employees who do not share trade secrets and other information.

AC 1.3

Tightness or looseness of the labour market is based on the supply and demand as influenced by unemployment levels. A tight labour market is one that is characterised by high demand of labour and low supply, leading to low unemployment rates. In a tight labour market, there are many unfiled job vacancies (Oxford Analytica). On the other hand, a loose labour market is characterised by low demand and a huge supply of the labour. In such circumstances, it is possible to hire a well-qualified workforce at a low cost. Understanding the labour market, whether loose or tight is essential for an organisation as it affects the economy and the profits. Existence of the cheap labour in a loose economy leads to low cost of labour and hence easier for the organisation to generate profits (Oxford Analytica).

In a loose labour market, due to the level of inflation and other macro-economic factors, there is an effect on the wages.  In loose labour market, due to the high demand of labour, organisations pay lower wages while in tight labour market, the cost of labour is high. In addition, a tight labour market requires that the organisation becomes more competitive by offering improved working conditions, competitive remuneration, flexibility, and other aspects (de Pedraza, Guzi & Tijdens, 2020).  In tight labour market, it is possible to have unfilled positions for an organisation due to the low supply of labour.  However, in loose labour market, due to high supply, cases of mismatch of skills are rampant

AC 1.4

To meet the labour demand requires the input of the different stakeholders: government, employer, and trade union. The government plays a role of facilitating for the apprenticeships. An apprenticeship system is one that provides for the practitioner and professional skills through the necessary experience. Through a proper apprenticeship system, the government is able to provide licenses and accreditation for the professionals in their respective positions (Institute of Apprenticeship and Technical education). The government of the UK has facilitated an apprenticeship through the apprenticeship levy that facilitate for training needed to impart skills. The apprenticeship levy that is collected from tax on employers allows employers to offer comprehensive training. The government also helps in identifying the necessary skills gaps in the labour market (Institute of Apprenticeship and Technical education).

Employers have a role they play in ensuring that there is a continued development of skills in the labor market. Employers may provide opportunities for internships to learners for them to gain skills and experience needed for the labor market (TUC). Through the learning and development division of the HR, employer continuously improves the skills and competence of the employee in line with the market demands. As such, employers should identify the training needs for the employers and act to bridge the gap thereby bridging the gap in the skill levels (TUC). Employers should also give feedback on the preparedness of the tertiary institutions on the level of skills provided by the organization.

Trade unions are known for their bargaining power for the workforce. In pursuit of their objective, they also fight for employees to be well trained and provided with proper working conditions- which allow them to continually improve their skills (TUC). They also have an input on the level of education that should be offered by tertiary institutions as they prepare the workforce for the provision of labor (TUC). In particular, they liaise with such institutions to improve their delivery skills and knowledge for the preparation in labor market. Trade unions influence policy development for better working relationship.

AC 2.1

Workforces planning are the strategies that are applied to meet the specific needs through proper employee positioning and finding the best placed people to take up the roles. Effective succession planning and management for an organisation helps in identification, development, and retention of the key skilled employees that will help to attain the business objectives (De Bruecker, 2015). Workforce planning is because an organisation requires specific labour needs and it planning helps to meet such needs.

An example of a workforce planning principle is involving top management, employees, and other stakeholders who are in development and implementation of the strategic workforce plan. Involvement of the key stakeholders is imperative in ensuring direction and goals of the management ate met based on the employment process. The top management helps in understanding the needs in the organization and based on their objectives, they can estimate the number of employees that they require later in future (De Bruecker, 2015). Having proper workforce planning is crucial as it established a communication strategy that will ensure a critical issue on timely manner. This approach enables communication of the goals and strategies that are critical in workforce planning.

There are different tools that are used in workforce planning. Workforce strategy map is a map that shows how the workforce planning activities aligns with the larger organisational goals. The board of directors sets the strategy for the organisation and it is derived from the following factors: demand and supply in the labour market; products and services the firm is already producing, and what the competition is doing (De Bruecker, 2015). Another tool is the 9 grid potential matrix, which assess the current and the future potential of the employees in ensuring that there is a proper assessment (De Bruecker, 2015). This is done to assess the current potential, which categorises into four stages: development potential; insufficient, sufficient, good or excellent state. If the performance assessment indicates low level, it necessities improvement, as part of the workforce planning.

AC 2.2

Succession plan

The succession plan is developed to ensure that there is continuity in provision of HR services. In this case, the based on the level of qualification and experience, the HR manager succeeds the HR director due to the high level of experience and qualifications. The HR manager is succeeded by HR advisor, who can be succeeded by the HR assistant. This helps in ensuring that there is business continuity. The succession plan is attached in Appendix A.

Career Development Plan

The HR manager who is the possible successor to the position of the HR director needs to improve the skills through training. Some of the essential skills that he needs to acquire include conflict management, use of technology in HR, and policy development. The Career development plan by the manager is attached in Appendix B.

AC 2.3

The HR department has been evolving over the years and downsizing has become a common procedure due to the changing economic times. Downsizing is the process of reducing the workforce in a company in an attempt to reduce the cost of labour (Schenkel & Teigland, 2017). Downsizing is done by the human resource department because they are aware of the performance and contribution of every employee. Downsizing is not always the best solution when the company is not performing finically well but it reduces the expenses incurred from employees that underperform. Downsizing should be conducted in a transparent manner. After the organisation has developed a list of the employees to be laid off, the next plan is to communicate the same to the affected workers (Schenkel & Teigland, 2017).  As such, the process should be transparent such that the affected employees together with the management engage in detailed communication and discussion. The management should share about the changing business needs and the possible workforce shifts. The communication should be open such that the employees are able to understand the situation and are properly prepared for the course of action that is taken by the organisation. Right from the start, the management should elaborate the criteria followed reaching the people chosen and the fairness in the process.

The process should also allow educating of the managers, employees, and the wide stakeholders. Once the case is built on a business case, it is imperative to invest time in training senior staffs such as the HR and senior management on how to communicate to the workers. For such a discussion, it is imperative to follow the prescribed legal guidelines and best practices to avoid any unnecessary controversies, which could pose a danger to the company’s image as well as the perception in the industry (Schenkel & Teigland, 2017). The management should also provide leadership by guiding even the affected employees on the new approaches to cope with life. The organisation should show how it has followed the law, maintained equality and fairness in the process (Schenkel & Teigland, 2017). The management should also maintain a managed approach. Further, HR can offer support and implement reengagement strategies after any downsizing has taken place.

AC 2.4

The job description encompasses the detailed elaboration of the qualification of the potential candidate for a certain position. The description should explain the role of the potential candidate, the required qualification. The qualifications cut across the academic, knowledge and planning, communication, problem solving, team work, conflict management, and other necessary skulls. The job description card should also include the behavioural description to explain the kind of behaviour needed. The job description card is explained in appendix C.

AC 2.5

Companies are required to follow a set of rules, most especially those that are compliant with relevant laws. Other laws include the minimum wage requirements, which outline the fact that organization should follow strictly the minimum set wage. The law also protects against poor working conditions and overexploitation.  Further, other laws include protection against biasness, racism, sexual harassment during working conditions. The process of recruitment and selection should be guided by legal requirements and the pieces of legislations that are stipulated in law. The legal requirement explains the obligations of both the employer and the employees. There are different legislature pieces, which cover various aspects including equity, data protection, and other issues.

The Equality Act of 2020 is an act of parliament of the UK, which was primarily formed with the purpose of consolidating, updating, and supplementing the previous regulations that prevent against discrimination. This law is a consolidation of the Equal Pay Act of 1970, Sex Discrimination of the year 1975, Race Relations Act of 1976 and the Disability Act of the year 1995 (Ross, 2018). The law elucidates against discrimination of people base on their gender, sex, age, sexual orientation, religion, or disability. As such, the law is useful in recruitment and selection because the process should be free of any form of discrimination (Ross, 2018).

Data protection Act 2018 was passed through the parliament, which explains on the need to protect the data. This law complements the national law of the European Union, which explains on the obligations of the different stakeholders, including employer on protecting personal data (Carey, 2018). The law states that the employer should have proper measures in handling and protecting against data and privacy breaches of the data. This influences the process of recruitment and selection since the organization is compelled to provide the necessary data protection measures. If the organization does not comply with the Equality Act 2010 and Data Protection Act of 2018, it attracts legal consequences including damages for breach and other legal consequences (Carey, 2018).

AC 2.6

The process of hiring entails recruitment and selection. The process of recruitment encompasses the overall process of identifying and attracting applicants to fill a certain position.  There are different methods of recruitment including direct advertising for the position in the media, talent pool databases such as linked in; employee’s referrals; internal recruitment; and internships and apprentices (Vadeboncoeur, Foster & Townsend, 2018). Adverts are placed on different platforms include on career sites, job boards, social media, newspapers, on print and radio, and industry publications. The process of screening encompasses the process of selecting the most qualified personnel to fill the specified positions (Vadeboncoeur, Foster & Townsend, 2018). There are different methods of selection including: face to face interviews; telephone interviews; cultural fit selection; vetting; and preliminary selection. Every method of selection has its merits and drawbacks.  In person interviews are the face to face interviews where candidates are taken through a narrowed screening process where they demonstrate suitability to acquire the position of interest.

The process of placing adverts has its merits. First, it gives exposure about the employer to the world, which improves the organisation’s reputation. Secondly, it also gives the organisation an opportunity to select the best placed candidate by accessing a huge number of candidates (Patterson et al., 2016). However, on the downside, placing external advertising is an expensive method of recruitment because it requires a lot of money to place adverts on mainstream media. In addition, if the employer does not target the ads well, it could attract so many applicants while only a few are qualified. Personal interviews are conducted by panelist thereby saving time for the subsequent scrutiny (Patterson et al., 2016). In addition, the process allows for better assessment for one on one interview as candidates are given an opportunity to explain themselves. Further, there is no room for partiality when doing a panel interviews. Further, it allows for a better scrutiny of the candidate. In regard to weaknesses, the organization could lead to delays as the team gets to settle down on a single candidate. The method has a direct impact on the production and it also lead to pressure on the candidate and make him/her not exhibit quality traits on qualifications.

AC 3.1

Dysfunctional turnover encompasses the situation where best talent for the organization leave the firm due to various reasons.  This comes with different costs. Some of the common costs that are incurred due to the dysfunctional employees include cost of advertising, selection costs, and the opportunity costs (Gong & Wang, 2019).  There is the cost of training staff due to the current skill gaps that comes with new employees. There is a danger of the indirect costs including tainted reputation and decreasing the morale of the employees and the overall productivity. The ultimate costs are great loss while understanding that recruitment and selection is time consuming and requires resources. Employees who remain in the organization are best talent encompassed of the best performers (Gong & Wang, 2019).  This happens because of various reasons that include inappropriate actions by the HR department and poor working conditions.

Employees may either stay or leave the organisation due to various reasons.  Employees may stay at the organisation due to provision of working conditions that are favourable, good remuneration, and flexibility at workplace. Indeed, employees make consideration of the work life balance to determine whether to stay or not.  Employees may therefore, decide to leave the organisation if they are not well remunerated, they have poor working conditions, or they are seeking good career growth opportunities (Gong & Wang, 2019).  Indeed, employees are motivated by the remuneration and growth opportunity. In this case, where they are provided with an opportunity to take on greater roles and responsibilities.

3.2

An organization can apply different approaches to help in staff retention and alleviate the huge cost implications that are associated with staff turnover. Some of the commonly applied methods include use of competitive compensation (salaries and benefits), staff interviews, and flexible working conditions (Jang & Kandampully, 2018).

Below is an analysis of each method with elucidation on the pros and cons in a table.

AC 4.1

Processes of dismissal, elimination of redundancies, and retirement in an organization should be conducted in line with the law. The employer should start with a careful investigation on the underlying issues of dismissal.  The process of dismissal should be void of the aspects that amount to discrimination as outlined in Equality Act of 2010. As such, the person being dismissed should be given a fair hearing (Blackham, 2019). The process should be taken through a transparent manner. Further, some of the guidelines as outlined in ACAS include victim should be subjected through training and counseling session to ensure that they are psychologically prepared for the dismissal. Adequate notice should be given to the employees before the dismissal and the terms of engagement should not be changed without the consent of the employer.

It is recommended that the process of redundancy based on the age set. As such, the UK has a default retirement age but the Equality Act of 2010 abolished the default retirement age and this should form basis to the redundancy law (Flynn & Li, 2016). It is, therefore, recommended that the administrators in the organization realize that the legal team should be involved in the process. Organizations that have between one to 20 representatives have no commitment to counsel, however it is acceptable practice to do as such. Organizations that have between 21-99 employees are required to permit a 30 days counsel period to implement the redundancy process (Blackham, 2019). An organization with over 100 employees are allowed a period of 45 days.

Appendix B: Job Description, Specification, and Competency

Organisation X

Job Description, Person Specification, Competency Framework