Chapter 8 - Recruitment, Selection and Training of Workers
Learning Objectives: To understand how and why to downsize
It goes without questioning that training workers is important for businesses success. Not all training offered to workers, however, are the same. There are three main types of training:
Induction training;
On-the-job training;
Off-the-job training.
Induction Training:
Targeted to new recruits;
Introducing to people they will work with;
Explaining organizational structure;
Showing around the building;
Clarify health and safety issues;
Emergency procedure;
- During the training period workers are not producing any output (costly).
On-The-Job Training:
Carried out by HR managers or experienced staff;
Focus on how the job should be performed;
Output is being produced during the training period.
- Existing bad habits will be passed on to new recruits;
- There might be up-to-date methods that are being missed out;
- It may increase waste as workers being trained make more mistakes;
- Output of experienced workers (trainers) is reduced during the training period.
Off-The-Job Training:
Outside of the workplace;
Paid by the company (expensive);
Focus on acquiring new skills and knowledge not yet available within the organization (up-to-date);
No output created during the training period.
Activity 8.5 (p. 116)
Sometimes, however, companies may need to reduce their workforce: It is needed when:
Demand for the business' products fall making it impossible to keep all workers;
Introduction of technology in production (automation) leading to replacing workers for cheaper machinery/equipment;
Business relocation to other areas to take advantage of other opportunities;
The workforce of a business can be reduced through different manners:
1. Resignation:
Workers leaving the business on their own will;
Workers leave their jobs for different reasons (e.g. found another job, better pay, less working hours, etc.);
High turnover rate is generally negative for business unless the business has already been trying to reduce its workforce.
2. Retirement:
When the employment contract ends because the worker reached a certain age;
Retirement is compulsory in certain countries;
Can be positive for a business trying to reduce its workforce;
The business might lose valuable human resource assets.
3. Dismissal:
Situation in which the worker is fired for breaking employment/contract rules;
Reasons for dismissal include: lateness, missing work, inappropriate language or behavior, stealing, etc.
4. Redundancy:
When the employment contract is ended by the employer because the worker is no longer needed;
When the business is closing down branches;
Business relocating to a different area;
Replacing workers by technology.
How do you think businesses choose which worker to make redundant first?
Last-in / First-out: the worker who joined the company last is made redundant first;
Productivity Measure: a business might choose to let go of workers who are less productive and keep the most productive ones;
Lateness and Absenteeism: companies may take such numbers into account when making workers redundant;
Age: usually workers who are closer to retire are made redundant first than younger ones.
To-Do-List:
Exam Practice Question #1 (p. 105)
d only
Exam Practice Question #2 (p. 105)
a, b, and e
Chapter 8 - Recruitment, Selection and Training of Workers
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