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Understanding the Impact of Employment Legislation on Workforce Planning and Business Practices

This guide explores the critical aspects of human resource planning, focusing on the changing work patterns and practices influenced by employment legislation. It covers the importance of recruitment, training, and appraisal in meeting workforce planning goals, as well as the consequences of non-compliance with legal employment rights, using Wal-Mart's case as a key example. Additionally, it examines Handy’s Shamrock organization theory and measures success through labor turnover, absenteeism, productivity, and product wastage metrics.

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Understanding the Impact of Employment Legislation on Workforce Planning and Business Practices

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  1. Topic 2Human Resources Human Resource Planning

  2. Learning Objectives • Describe reasons for and consequences of changing work patterns and practices • HL – Analyse the impact on business of legal employment rights • HL – Examine how recruitment, training and appraisal can help achieve workforce planning targets • HL – Analyse the consequences of changing work patterns and practices on business • HL – Apply Handy’s Shamrock organisation theory

  3. Employment Rights Mostdevelopedcountrieshavethefollowingemploymentlegislation: • Antidiscriminationlegislationprovidesequalopportunities • Avoiddiscriminationagainstindividualsbecause of theirgender, religion, disability, marital status, ageorrace • Sex discrimination • Racial discrimination • Disabilitydiscrimination • Positive discrimination (isallowed in certaincircumstances)

  4. Employment Rights • Equal Pay Legislation • Illegal to pay people differently for the same work. • Health and Safety at Work • Business must provide a safe working environment • Health and safety is a necessary hygiene factor (Herzberg) • Statutory Benefits • Legally required benefits such as IMSS, aguinaldo • National Minimum Wage NMW • Usually an hourly rate • The minimum that an employee can be paid Daily minimum wage in Mexico City = 57.46 Mexican pesos

  5. Case Study Global retailer Wal-Mart waschargedwithbreaking local labourlaws in late 2006. Wal-Mart hadbeenfoundguilty of exploitingemployeesin Pennsylvania, USA byforcingthemtoworkduringtheirrestbreakswithoutpay. Thecourtsdemanded Wal-Mart pay $78 million in damages. Thefollowingyear, approximately 1.6 millionfemaleworkersalsofiledfordiscriminationcharges, claimingthat Wal-Mart haddeniedthempromotionduetotheirgender. Theyalsoclaimedthat Wal-Mart paidmalecounterpartshigherwages. • Outlinethemeaning of discrimination in thecontext of the case study. • Justifywhyemployerssuch as Wal-Mart needto be aware of employmentlegislation.

  6. How can HR help achieve workforce planning targets • Ensures the business is recruiting the right people • Ensures the right skills are coming into the business

  7. How do we measure our success? Labour turnover of how many people leave work each year • (number of staff leavers  total number of staff) x 100% Absenteeism of staff not coming to work • (number of absent staff  total number of staff) x 100% Productivity of output per staff • Total output  Number of workers Wastage of the products made • (Waste  Total output) x 100%

  8. The Kellogs Factory: Do the maths! In 2010, out of 85 workers, there were 15 workers who quit their job. In 2010, a period of 365 days, out of 85 workers, there were a total of 40 absenteeisms. In 2010, the workers produced 1,300,000 boxes of cereal. Out of those boxes, there was a wastage of 2,000 boxes of cereal that were contaminated.

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