Student Work Book

2nd Edition
Manage workforce planning

BSBHRM504A
Student Workbook
Student Workbook
BSBHRM504A Manage workforce planning

2nd Edition 2010
Part of a suite of support materials for the
BSB07 Business Services Training Package
Acknowledgment
Innovation and Business Industry Skills Council (IBSA) would like to acknowledge
Impact Training & Development Solutions for their assistance with the development of
this resource.
Writer: Bradley Corcoran
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Published by: Innovation and Business

Industry Skills Council Ltd
Level 11
176 Wellington Parade
East Melbourne VIC 3002
Phone: +61 3 9815 7000
Fax: +61 3 9815 7001
e-mail: reception@ibsa.org.au
www.ibsa.org.au
ISBN: 978-1-921788-50-5
Stock code: BSBHRM504A2CL
First published: March 2010

2nd edition version: 1.0
Release date: June 2010
Printed by: Fineline Printing
130 Browns Road,
Noble Park North
VIC 3174
Table of Contents
Introduction ............................................................................................................. 1
Features of the training program ..................................................................... 1
Structure of the training program .................................................................... 1
Recommended reading .................................................................................... 2
Section 1 Assess Supply and Demand............................................................... 3
What skills will you need? ................................................................................ 3
Workforce planning and the business plan .................................................... 4
Reviewing staffing budgets as a result of workforce changes..................... 25
Section summary ............................................................................................ 26
Further reading................................................................................................ 26
Section checklist ............................................................................................. 27
Section 2 Develop Workforce Objectives and Strategies ............................... 28
What skills will you need? .............................................................................. 28
Establishing objectives for workforce change and retention ....................... 29
Managing high turnover and the retention of skilled labour ....................... 30
Sourcing skilled labour ................................................................................... 36
Gaining endorsement and communicating objective targets ...................... 37
Contingency planning ..................................................................................... 39
Section summary ............................................................................................ 40
Further reading................................................................................................ 41
Section 3 Support Workforce Planning Objectives .......................................... 42
Supporting agreed objectives ........................................................................ 43
Managing change............................................................................................ 47
Succession planning ....................................................................................... 50
Employer of choice .......................................................................................... 53
Section summary ............................................................................................ 55
Further reading................................................................................................ 55
Section 4 Monitor and Evaluate Workforce Trends ........................................ 57
Reviewing the workforce plan ........................................................................ 57
Processes to assist in workforce plan review activity................................... 60
Monitoring labour supply and demand trends .............................................. 61
Gauging organisational climate ..................................................................... 64

Refining workforce plans and objectives ...................................................... 66
Implement and evaluate changes ................................................................. 68
Section summary ............................................................................................ 69
Further reading................................................................................................ 69
Glossary ................................................................................................................. 71
Appendices ............................................................................................................ 72
Appendix 1 Buon Appetite Patisserie - Business plan extract .................. 72
Appendix 2 Employee survey ...................................................................... 77
Student Workbook
Introduction
Introduction
Features of the training program
The key features of this program are:
Student Workbook (SW) Self-paced learning activities to help you to

understand key concepts and terms. The Student Workbook is broken
down into several sections.
Facilitator-led sessions (FLS) Challenging and interesting learning

activities that can be completed in the classroom or by distance learning
that will help you consolidate and apply what you have learned in the
Student Workbook.
Assessment Tasks Summative assessments where you can apply your

new skills and knowledge to solve authentic workplace tasks and
problems.
Innovation & Business Skills Australia has licensed the use of over 200 video
vignettes from the Channel 9 television program, Your Business Success. The
videos have been carefully selected and embedded into relevant learning and
assessment resources in order to assist education providers and students in the
learning process.
Each video is accompanied by a learning activity. Videos can be found on IBSAs
YouTube channel at <http://www.youtube.com/ibsachannel>.
Structure of the training program

This Training Program introduces you to planning workforce strategies to achieve
organisational goals and objectives. Specifically, you will develop skills and
knowledge in the following topic areas:
Assess supply and demand (SW Section 1/FLS Session 1)
Develop workforce objectives and strategies (SW Section 2/FLS Session 2)
Implement initiatives to support workforce planning objectives (SW Section 3/FLS
Session 3)
Monitor and evaluate workforce trends (SW Section 4/FLS Session 4).
Note: the Student Workbook sections and session numbers are listed next to the
topics above.
Your facilitator may choose to combine or split sessions. For example, in some
cases, this Training Program may be delivered in two or three sessions, or in
others, as many as eight sessions.

Page 1 of 80
Introduction
Student Workbook
Recommended reading
Some recommended reading for this unit includes:
Jones, R., and Jones, J., 2003, HRM Fundamentals, Tertiary Press,
Croydon.
McConnell, C. R., Brue, S. L., and MacPherson, D. A., 2007, Contemporary

Labour economics, 7th edn, McGraw Hill, Boston.
Clarke, L., 1994, The Essence of Change, Prentice Hall, New York.
Compton, R. L., and Nankervis A. R., 1997, Effective Recruitment &

Selection Practices, CCH Australia Ltd, Sydney.
Griffin, R. W., 1994, Management, 4th edn, Houghton Mifflin Company,

Boston.
Anthony, W. P., Kacmar, M. K., and Perrewe, P. L., 2002, Human Resource
Management A Strategic Approach, 4th edn, Thomson Learning, Miami.
Australian Bureau of Statistics, 2010, viewed June 2010,

<http://www.abs.gov.au>.
Australian Government, 2010, The Treasury, viewed June 2010,

<http://www.treasury.gov.au>.
myfuture, 2010, myfuture: Australias career information service, viewed

June 2010, <http://www.myfuture.edu.au>.
Australian Government, 2010, Department of Employment and Workplace

Relations, viewed June 2010, <http://www.deewr.gov.au>.
HRworkbench, 2010, viewed June 2010,

<http://www.hrworkbench.com>.
LexisNexis, 2010, HR Leader Compass Awards, viewed June 2010,

<http://www.hrawards.com.au>.
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Student Workbook
Section 1 Assess Supply and Demand

This section covers the skills and knowledge required to review and analyse the
organisations labour needs, in line with business plans, to evaluate the current
workforce capacity, and to review and research the external labour market in
order to meet anticipated business needs.
Scenario: Buon Appetite Patisserie
The Buon Appetite Patisserie is a small specialist bakery business. It is a familyowned business that was started 19 years ago. Two years after its inception, a
general manager was appointed. When the General Manager took over
management of the business, it operated from only one shopfront in an
unfashionable suburb of the city.
One of the first things he did was to change the service and product profile of
the business and, eight years ago, he opened a second store in rural
Johnsonville, a small village approximately 85 km from the city. Until recently,
the Buon Appetite Patisserie was the only bakery in town.
Johnsonville is a popular weekend spot for tourists, and the business picks up a
good share of the trade at weekends. Three years ago, the General Manager
moved the suburban business to new premises in a suburb that is closer to a
major shopping precinct and has a larger customer base than the previous
location. This move was very successful in increasing the business turnover.
The General Manager is constantly looking for ways to responsibly improve the
profile of the business, and actively promote products and services through his
large network of contacts. He has now declared that he wants the business to
expand and become a true patisserie. In the most recent business plan, he has
added new product lines and services to the business profile. He has also
stated that he wants Buon Appetite Patisserie to become a supplier of
preference in a marketplace that features singles, families, young couples,
tourists and people who enjoy gourmet breads and pastries, and want to take
their time to enjoy a chat and a coffee, meal or gourmet snack.
What skills will you need?

In order to work effectively as a human resources manager you must be able to:
identify labour requirements to meet business plans
analyse existing workforce to determine areas where there are excesses or
shortages
identify and plan to meet the organisations requirements for diversity in
the workplace
research and review current and predicted external labour supply data,
demographic data and economic data, to forecast human resources supply

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Student Workbook
analyse organisational structures and determine suitability to meet

organisational needs
forecast external labour supply.
Workforce planning and the business plan

Workforce planning has been defined in a number of ways but all definitions
agree on the basics of the process. The definition adopted in this workbook is
purely functional and is as follows:
Workforce planning is a systematic process for identifying the human capital
required to meet organisational goals, and then developing strategies to meet
these requirements.
Essentially, as this definition implies, workforce planning is about two things.
Firstly, it is about looking at an organisations business objectives within a specific
time period, and identifying and accessing the human resources they will need to
achieve these objectives.
Secondly, workforce planning is about effective management of human
resources, planning activities and avoiding the impacts of peaks and troughs in
terms of the human resources required to run a business.
This second point is important because careful planning enables an organisation
to avoid the traumas associated with retrenchments when business demand
drops. It also enables an organisation to access the required resource base when
demand for products and services rises.
The basic role of the workforce plan is to ensure that a business is continuously
supplied with the skills, capabilities and staff it requires, and to ensure that the
actions necessary to achieve this goal are planned for and anticipated.
Specifically, workforce planning focuses on identifying and confirming:
the staff that are required
the skills and experience that are required
the time and place that these skills and experience are required.
Having identified these resources, the workforce plan seeks to initiate actions to
ensure the business has the right people with the right skills, in the right place at
the right time, at the right cost. This may mean recruiting or promoting people, or
it may simply mean maintaining the status quo and ensuring that the business
retains all of its current employees.
In addition to this primary focus, workforce planning also identifies and defines
the management activities necessary to achieve this.
There are a number of possible approaches to conducting workforce planning
activities, but overall the essential steps in the process are:
Analyse the business plan Analysis is undertaken to identify the directions,
goals and objectives of the business, and the activities and resources required to
achieve these. Even if the direction of the business and its goals and objectives
may not influence any changes, it is still essential to conduct this analysis.
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Confirm current workforce profile Confirm all aspects of your current workforce
profiles including the roles, skills, capabilities, strengths, weaknesses and status
(i.e. full-time, part-time) of each person.
Forecast future workforce needs (also known as demand analysis) Normally
carried out after an analysis of the business plan, and the identification of
proposed workforce changes that emerge as a result of changes to the business
profile.
Supply analysis Assess your current human resource profile against future
requirements, and identify supply requirements. There are two key elements to
this step. Firstly, you must identify the current supply both internally and
externally and secondly, you should use trend data to identify past, present and
potential future needs.
Gap analysis Identify any current or potential gaps in the workforce profile.
These should be assessed against factors such as staff turnover rates, pending or
potential retirements and possible changes to the business when a different skill,
knowledge experience profile is required in the workforce. As part of the gap
analysis, it is useful to develop a vision for the future of the business. This assists
in projecting the organisations needs into the future and facilitates development
of effective workforce plans which can, in turn, minimise the risk of a business
ending up with an ineffective workforce profile.
Develop strategies Develop strategies for obtaining the workforce resources
required by the business to achieve the goals and objectives identified in the
business plan.
Implement strategies Implement the programs and actions required to develop
and maintain the capabilities of the workforce required by the business.
Monitor and Evaluate As with any organisational activity, there is a need to
monitor and evaluate the plan to ensure that it is facilitating the outcomes the
organisation wants.
Workforce planning is not a stand-alone activity that exists within a vacuum. It is
intrinsically linked to the organisations business and work practices and is set
against a profile of the organisations current and future or desired operating
environment. In this context, workforce planning is linked to the organisations
business plan.
Therefore, in order to undertake the activities required to develop, implement and
manage workforce planning activities, it is critical to begin with an understanding
of business plans and, in particular, the organisations business planning process.
Business plans
Business plans are an organisations map to the future for a specified period of
time. They reflect a business goals, strategies from an operational and resourcing
point of view, and how the business will measure success. Developing a business
plan involves:
setting goals for the organisations desired future

identifying whether the goals include expansion, downsizing or
maintenance of the status quo
defining and explaining specific objectives derived from these goals
mapping out plans for achieving these goals and objectives

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identifying resources infrastructural, physical, financial and human required in order to achieve these goals and objectives
identifying and confirming strategies for obtaining the necessary resources
identifying and confirming how resources will be managed and maintained
to ensure performance achievement
identifying the costs associated with all activities included in the business
plan.
When developing a business plan, an organisation will need to answer a range of

questions such as which sector are we in?, what is our desired future? and
which financial and other resources will we need?.
This last question serves as the primary linkage between workforce planning and
the business plan.
Almost all soundly managed organisations have goals and objectives which are
embedded in a business plan. It is this plan which directs the activities and
priorities of an organisation and specifies the targets to be achieved. It also
specifies the period of time in which these targets are to be achieved.
In terms of information useable in workforce planning activities, the business
goals and objectives can provide value in terms of identifying whether the
business wants to expand or downsize, whether it wants to restructure or diversify
and, therefore, alter its skills, knowledge and experience profile, or whether the
human resource profile will remain the same. In any event, the business plan
insinuates the focus required for the workforce planning effort and identifies
whether effort is to be applied to recruitment, development, retention or
downsizing of the current workforce.
Other information relevant to workforce planning is contained in strategic plans
and operational plans, which, while they are linked to business plans can, in some
instances, differ in terms of tactical objectives. For example, where the business
plan requires a performance standard to be met through the application of
specified human resources; the operational plan might identify that performance
requirements can now be achieved through the application of new technology,
rather than additional human resources or skills profiles.
The workforce planning process
The steps in the workforce planning process include the following.
Analyse the business plan
Having accessed the business plan, the human resources manager must analyse
it to identify and define the workforce requirements of the organisation.
Essentially, workforce requirements will be defined by:
the goals and objectives of the organisation
any changes in the direction of the business from previous years
the service and/or product profile of the business
any changes to the budgetary framework of the business.
This is not an exhaustive list, but is included to indicate that there are a number
of areas in the business plan that can impact upon the workforce plan.
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A human resources manager or team must review and analyse the business plan
with some rigour in order to identify any areas that may influence their planning
activities. We will now address each of these issues in some more detail.
The goals and objectives of the business
The goals and objectives of the business should clearly indicate what the
business is trying to achieve, and the required actions.
For example, if one objective in a local government organisations business plan is
to establish a working shopfront in the Smithfield shopping centre to improve
customer service levels, the business should identify the implications of this for
their workforce profile. If it does not currently have a specific customer service
capability, they will need to establish this and either develop or recruit people to
meet this need. If the business has the capability but doesnt have sufficient
resources, they will need to develop or recruit additional customer service people.
Either way, this objective will impact on Councils current workforce profile.
Changes in the direction of the business from previous years
Where the business plan identifies a change in direction for the business, this
may indicate the need for a revised workforce profile.
For example, where a construction business decides to provide a home and
building inspection service for home owners, prospective home buyers, and
property investors, this change may require a modification to the current
workforce profile. If the business is currently providing construction-only services,
they may need to expand their workforce and employ specialists in this area if the
uptake of the service by customers is strong. There is also the consideration of
whether the business already has the expertise required and the necessary
accreditation, or whether it needs to recruit new staff (with the expertise and
accreditation) into their organisation.
The service and/or product profile of the business
Where the business has identified services or products in the business plan, this
can also serve as an indicator of workforce requirements in terms of numbers,
skills profiles and capabilities, work status (full-time/part-time) and the critical
nature of those resources. Where changes to the service or product profile of the
business are identified in the business plan, there is a need to conduct a detailed
analysis to establish whether those changes require subsequent modifications to
the workforce profile. There is also a need to identify and specify the nature of
those changes.
Changes to the budgetary framework of the business
Another source of information for use in the workforce plan is the budgetary
framework contained in the business plan. Specifically, the information contained
in aspects such as sales or income forecasts, staffing budgets, profit and loss and
cash flow statements can provide an indication of the need for staff and the type
of staff required. They can also provide human resources with boundaries in
terms of staff costs. This, in turn, may impact on the salaries payable to staff and
the costs of training and or recruiting additional staff and in this way, impacts on
the workforce plan. Having identified and confirmed potential changes arising
from the business plan, we now need to take the next step and begin
development of the workforce plan. The first step is to confirm our current
workforce profile.
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Confirm current workforce profile

To manage both business growth and downturn it is essential for the leaders of a
business to assess the nature of its workforce. The assessment should seek to
identify areas of skill and knowledge surplus as well as shortfalls so that
necessary steps can be taken when the business is required to change in some
way. This analysis should include each job and job category in an organisation.
The analysis should also include the amount of people the business expects to
lose from these job categories over a set period of time.
As a starting point in this process, it is necessary to access and review an
organisations structural chart to map their current business and workforce
profile. By doing this, the human resources manager is able to identify and
attribute numbers and subject specialisations to various parts of the organisation.
What this does is provide the business with a demand perspective for your
workforce. That is, the demand for human resources throughout the business as
evidenced by the staffing profiles in each function. The organisation chart for
Buon Appetite Patisserie, included below, reveals the functions of the business
and indicates the capabilities required for each. When staffing numbers in each of
the clusters are added to this structure, the business will be able to establish the
basic workforce profile based on the demand for resources in each function.
This provides the business with half of the information they need for their current
workforce profile. To further enhance this profile and make the information more
meaningful, they need to delve deeper behind the numbers and establish the role,
responsibilities and capabilities and the business risks attached to each role. To
achieve this level of analysis, we begin by asking the following key questions:
In what way does this role contribute to the achievement of the business
goals?
Is this role critical to the success of the business?
What is the key responsibility of each role?
What level of experience is required to successfully carry out the
responsibilities of this role?
Which competencies and skills underpin this role?
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The answers to the first three questions can determine the job rating for a
particular role. Traditionally, job ratings range from 1 to 3. A score of 1 indicates
that the aspect is core or critical, 2 indicates an important aspect and 3 indicates
a required aspect.
Once the business has been obtained, confirmed and recorded this data, they will
have developed the profile of their current workforce.

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Student Workbook
Current Workforce Profile for Buon Appetite Patisserie Base Data

Employee name
Age
Years
Years in
with
industry
business
Job title
Job
Additional information
rating* about employee
Status Comments
John Ibbotsen
54
17
28
General Manager
Looking to retire at 55
years
1 EFT
B.Comm
Barbara Brown
43
12
12
Administrative
Manager
Ambitious wants to
progress
1 EFT
Certificate in
Business Studies
Elena Visintini
29
Secretary/PA
Good organiser
interested and wants to
progress in business
1 EFT
Currently studying
accounting
Annie James
35
Supervisor West City 1
Good organiser runs

tight ship
1 EFT
Good customer
management skills
Beth Harrison
39
Supervisor
Johnsonville
Happy in role does good

job
1 EFT
Good people
manager, but light
on where gourmet
skills are concerned
Jerry Welsh
49
34
Pastry Cook West

City
Good at what he does but

not sure of longevity with
business
.5 EFT
Not ambitious
does what is
needed. Not
interested in making
fancy pastries
Stephanie
James
20
Pastry Cook
Johnsonville
Good worker and prospect

for future creative flair
.5 EFT
Interested in
learning and
currently studying.
Light on experience
in pastry making
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Employee name
Age
Years
Years in
with
industry
business
Job title
Job
Status Comments
Mario Adamo
41
24
Baker West City
Good employee likes his

job
1 EFT
Good at his craft

not comfortable
dealing with
customers. Makes a
limited variety of
breads
Alf McKenzie
44
29
Baker Johnsonville
Good employee likes his

job and location
1 EFT
Good all-rounder
handles all tasks
equally well
Marie Walker
19
18
months
18
Months
Assistant baker - West

City
Wants to progress and

become a Pastry Chef
1 EFT
Studying for
qualification
Esther Hibbert
41
Assistant baker Johnsonville
Happy with current role &

location
1 EFT
No quals but
interested in
learning
Debra Allen
31
Shop assistant - West

City
Steady enjoys job and

environment
.5 EFT
Good customer
service skills. Nil
experience with
preparation of meals
Marie Tkachuck
49
11
15
Shop assistant - West

City
Steady long serving

employee
.5 EFT
Excellent knowledge
of
industry/products.
Makes standard
sandwiches not
keen on gourmet
foods

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Employee name
Age
Years
Years in
with
industry
business
Job title
Job
Status Comments
Phil Ahmad
23
Shop assistant Johnsonville
Enthusiastic and stable

employee
.5 EFT
Studying for degree.

Inexperienced but
will try anything
Eileen Munari
39
15
Shop assistant Johnsonville
Steady employee with good

knowledge and skills
.5 EFT
Hours suit her

personal situation.
Good relations with
customers
Mark Jones
20
Accounts - West City
Wants more work and

challenge
.25
EFT
Currently studying
for finance degree
Elsa Verbroek
27
Accounts Johnsonville
Wants more work
.25
EFT
Has Certificate in
Business Studies
Key:
Job rating = importance of role: 1 = Core, 2 = Important, 3 = Required.
Status = Full-time (1 EFT) or Part-time (0.5 or 0.25 EFT).
Key to role requirements:
Baker = Requires trade background or extensive bakery experience.
Assistant Baker = Requires skills and capabilities to make and bake breads and bread products. The assistant baker must be able
to work within standardised work processes and procedures and needs to be able to undertake work with minimal supervision.
Pastry Cook = Must be trained in preparing and making basic pastry products such as assorted pastries, pies and pasties and
quiches.
Shop Assistant = Must be able to serve customers efficiently and effectively. Role includes the preparation and serving of
packaged sandwiches and bread rolls. The shop assistant is also required to sell patisserie products and assorted products such
as milk and soft drinks to customers.
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Forecast future workforce needs (also known as demand analysis)

After completing our review of the business plan, identifying any changed
business requirements and confirming our current workforce profile, the business
needs to assess and forecast their future workforce needs. At this point, the
business should begin assessing any changed business requirements and assess
the capacity of the existing workforce profile to meet revised needs. Changes
invoked by activities incorporated in the business plan can range from an
increased range of the services or products a business provides, the addition of
new services or products to the existing business profile or the scaling back,
withdrawal or realignment of unprofitable services, products or activities.
This step is also known as demand analysis and includes identification of the
capabilities required by the business and those people who may be lost to the
business because of retirement, resignation, maternity leave or termination.
Human resource needs forecasting
The human resource needs forecast is a table that allows the human resource
professional to ascertain the number of people available to occupy key positions
in an organisation. It also allows the user the opportunity to plan for structural
changes and the loss of employees by way of resignation, termination, retirement
and maternity leave. The end result is an indicator of whether there is a shortage
or surplus in a key position within the organisational structure. The tables for
Buon Appetitie Patisserie are available in Appendix 1 at the end of this workbook.
Diversity needs
As a part of this forecasting activity, there is also a need to look at workforce
diversity within a business. Diversity in this sense is broader than that which is
enshrined in legislation and which includes things such as:
age
gender
race or cultural background
religious beliefs
sexuality.
In terms of workforce planning, diversity also includes skills mix, education, life
experience, vocational background and physical abilities. It can also mean
attributes such as thinking and problems solving approaches or styles and
interpersonal skills.
Diversity is often considered to be an organisational equity issue. However, an
astute observer will note that diversity can contribute to an organisations
competitive advantage. If competitive advantage is defined as being those things
that a business does well and which are difficult for competitors to replicate
easily, then a diverse workforce is certainly a contributing factor. Diversity goes
beyond employment equity to create an environment that values the differences
and maximises the potential of all employees. It will stimulate employee creativity
and innovation and this may well translate into competitive advantage.

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An example of cultural diversity providing competitive advantage is where a

business like Buon Appetite Patisserie employs a pastry cook with significant
experience in Europe, and who brings with them the ability to produce pastry
products that expand the existing product range and possibly even draw in
customers who either want to enjoy products from the old country or who have a
preference for European breads and pastries.
Learning activity: Analyse the business plan and identify/assess possible
changes which can impact on the workforce profile
You are a human resources consultant, hired by the Buon Appetite Patisserie
business to assist them in identifying workforce planning requirements they
may have in their business.
In their new business plan, they have identified a number of planned service
and product changes and now need to know whether these will have any impact
on their current workforce profile in terms of the skills, knowledge and
experience required. Using the business plan extract at Appendix 1 and the
current workforce profile for this business (provided above) complete the
following tasks:
Read through the business plan extract provided at Appendix 1.
Identify any proposed changes to the business profile contained in the plan and
record your findings in the worksheet below.
Identify whether these changes have the potential to impact on the workforce
profile in terms of the skills, knowledge, experience and workload capability of
the current workforce and what these changes might be.
Proposed change
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Potential impact on workforce profile

Student Workbook
Supply analysis
Once the business has identified and confirmed its future workforce needs, it then
has to consider how it will fulfil those needs, especially if additional staff or
capabilities are identified as a requirement. Supply analysis is an important
activity because it informs the business of some of the workforce access issues it
may confront. The business is therefore able to develop strategies to reduce the
potential negative impacts a shortage of resource supply could have in critical
skills areas.
Supply analysis will not necessarily apply to all roles or positions within a
business. It should, as a priority, focus on roles and positions critical to the
continuity and success of the business. It may also focus on:
roles and positions which, while not necessarily critical to the business in
the current environment, may become critical in the future because of
projected skills shortages or technological change
roles which have a high turnover rate or which are affected by impending
retirements
roles that are traditionally difficult to fill or where a capability is not readily
available.
The sources of supply can be either external or internal and both sources need to
be accessed and analysed.
External sourcing
Where resources are to be accessed externally, it may be necessary to access
relevant labour market information from reliable sources to assist in this process.
Some reliable sources of information include:
Australian Bureau of Statistics, Statistics by Topic, viewed June 2010,

<http://www.abs.gov.au/AUSSTATS/abs@.nsf/viewcontent?readform&vie
w=ProductsbyTopic&Action=expandwithheader&Num=1#
Population/People>.
Department of Education, Employment and Workplace Relations (DEEWR):

Resourcing the future: National resources sector employment taskforce
discussion paper, viewed June 2010,
<http://www.deewr.gov.au/Skills/Programs/National/nrset/Documents/
NRSETReport.pdf>.
Job seeker compliance data March quarter 2009, Department of

Education, Employment and Workplace Relations Australian
Government, viewed June 2010,
<http://www.deewr.gov.au/Employment/ResearchStatistics/JobSeekerCo
mplianceData/ComplianceData/Documents/PCDMarchquarter0809.pdf>.
In Australia, the Treasury Department, as part of the Federal Government, often

commissions reports based on Australias demographic makeup and associated
trends. Recently, the Treasury Department commissioned a report entitled
Australias Demographic Challenges supporting more flexible work options. The
report can be found by typing in the following web address and following the link:
Australias Demographic Challenges Supporting more flexible work

options, Treasury Australian Government, viewed June 2010,
<http://demographics.treasury.gov.au/content/_download/australias_de
mographic_challenges/html/adc-02.asp>.

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Information about trends in the labour market can be useful when framing the
business workforce plan, and setting the objectives that drive the plan. There are
two discrete activities attached to the external labour market aspect of supply
analysis. The first is the identification of the possible availability of resources,
using externally-based trend data that deals with the following aspects:
employee turnover patterns in a particular business sector

projected availability of skills and capabilities
numbers of people taking up educational opportunities in a particular field
projected attrition rates in various occupations
projections dealing with technological and legislative changes, and their
impact on the current workforce
projections regarding the costs of labour.
When considering workforce changes and planning for the future, it is important
for businesses to understand the nature of the labour market and to access
relevant labour market information.
The second is the identification of current sources of labour supply that are
reliable, and can provide the necessary quality and number of resources required.
These sources include industry bodies, industry skills councils, reputable labour
supply agencies and recruitment agencies. In relation to these sources, another
important factor that should be considered is the cost of obtaining the necessary
capabilities.
Learning activity: Labour market data
Having read the report Australias Demographic Challenges supporting more
flexible work options, identify what you think are the three most important
points under each of the following subheadings.
Part-time work:
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
Extending peoples work life:
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
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Learning activity: Labour market data

3. ________________________________________________________________
__________________________________________________________________
Tailored wages and conditions:
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
Internal sourcing
Where resources are gained internally, this is usually done through a succession
planning process, where the business identifies a number of positions within the
organisation, establishes their criticality, and, where the position is assessed as
critical to the success of the business, then establishes a succession profile for
that position. An example of a succession chart or plan is included in Section 3 of
this workbook.
The key to effective succession planning is to create an alignment between the
business future needs, the aspirations and capabilities of individual employees
and their readiness for promotion.
A robust succession planning process is of immense value to a business, in that it
increases retention of high potential and high quality employees because they
recognise that the time invested in skills development is an acknowledgement of
their work efforts.
Where a business establishes a succession plan, it obligates that business to
undertake a number of activities to support the people identified in the
succession plan. This includes providing relevant training and development
opportunities for a person in the succession stream, monitoring their progress
and providing constructive feedback at regular intervals.
Without this supporting effort, a succession plan is often rendered ineffective.
An alternative to a formal succession plan for internal sources is to treat all staff
as part of a talent pool and, as such, eligible for promotion or re-deployment to
new, more challenging roles where opportunities or changes in the business arise.
However, as with the succession planning process, a robust training and
development is required to support the development and maintenance of skills
and capabilities.
The benefits of employing an internal sourcing approach include:
People are known to each other and possibly to key stakeholders. The
retention of staff in the business reduces any downtime in this respect.

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Service and product knowledge will be retained within the business.
Creation of a positive, reward-focused environment can be created in

which people see that those who contribute receive opportunities for
growth.
Two of the downsides of internal sourcing are:
There is an inability to import new ideas when they are needed.
Where staff turnover is low or business growth is slow, opportunities can

be reduced. Some staff may become disheartened at this and begin
looking elsewhere for their development opportunities.
Learning activity: Labour supply sourcing

Reflect on the processes and practices in your own organisation and identify:
their sources of labour supply
if these are internal or external or a mixture of both
how they access these sources
if they utilise external sources of labour market information.
If they do use external sources, identify and access those sources and explain
the type of information gathered from each source.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Gap analysis
Gap analysis is the process of comparing the outcomes of the supply analysis with
the business existing workforce profile and the forecast/demand analysis and
analysing the gaps between the two.
There are three possible outcomes of such an analysis.
Firstly, the status quo may be maintained, meaning that further resources are not
required, except in the case of resignations (which cannot always be anticipated).
Secondly, the analysis may demonstrate that there is or will be a skills shortfall.
This is known as a resource gap. The third possible outcome is that the business
identifies a demand profile that will create excess employees in one activity or
activity area. This is known as a resource surplus. This third outcome generally
arises when a business changes, reduces or closes down a service or function
and no longer requires the same number of employees or the same skills mix.
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Where resource gaps are identified, the business should specify:
the nature of the gaps
the importance of the role or position
the need for specialised knowledge and skills.
Some key questions to ask in the gap analysis are:
Which roles are critical to the business?
Are the skills of the people who fill those roles attractive to our
competitors?
Which roles hold information or skills critical to our success?
What employees are likely to leave or retire in the next 2-3 years?
What does our overall workforce profile look like now?
What do we want our workforce profile to look like in the future (5 10

years)?
There are a number of other questions that underpin those listed above and
which will need to be addressed. These include:
Which technological changes are mooted and what role will they play?
How might our service or product profile change in the next few years?
If this profile changes, what impact will it have on our skills profile?
By undertaking this process, the business is identifying potential areas for

change, the priority for succession or replacement of a skill or employee which will
enable the development of strategies that include countermeasures for all
identified eventualities.
The business also analyses the strengths and weaknesses of their structure and
their resourcing profile in relation to their desired profile. One tool that provides
useful support in this process is the SWOT analysis.
SWOT analysis
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities and Threats that might appear in the business. It
involves specifying the objectives of the business, identifying the new or desired
future business profile and identifying the internal and external factors that are
favourable or unfavourable to achieving the desired change. The technique is
credited to Albert Humphrey, who led a convention at Stanford University in the
1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. In
the case of workforce planning and the analysis of a current structure it is simply
a process of identifying:
Strengths: attributes of the person or company that are helpful in achieving

the objective.
Weaknesses: attributes of the person or company that are harmful to

achieving the objective.
Opportunities: external conditions that are helpful in achieving the

objective.
Threats: external conditions which could do damage to the objective.

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Develop strategies
This step involves planning and developing strategies to address the current or
potential gaps and possible surpluses identified in the analysis of the business
plan. Resources must be matched to business demand. When developing an
organisations strategies, it is important to consider the following questions:
What are our business goals and objectives?
What are the actual workforce gaps and issues?
What are our priority issues to address?
Will the strategies complement other aspects of the business?
Will the strategies we develop be difficult to implement given the

organisations culture?
The broad strategies needed here include a focus on:
retention of existing capabilities
development of new or upgraded capabilities
recruitment.
Each of these strategies is then translated into specific actions that will support
its successful implementation.
In terms of retention and development within the current climate, businesses
regarded at the cutting edge employ a range of developmental activities
including:
mentoring
coaching
job rotation
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traditional educational programs, both formal and informal
formalised structured feedback processes which are planned, organised

and carried out regularly and to a high standard.
These organisations also tend to try new approaches to development such as

special workplace assignments, which are a form of action learning, and are
targeted towards developing new capabilities or strengthening an employees
current competencies. These assignments are generally designed to resolve an
identified problem within the business or to improve an aspect of the business
work processes and practices.
Strategies also need to focus on management practices in the organisation. The
issue of management is an important influence on staff retention and turnover
rates. Any strategy focused on these two areas will, by definition, need to be
addressed. It may be that the management standards and practices adopted by
the organisation need to be revised to support the other strategies developed
within the revised workforce plan.
If recruitment is required, it is usually achieved through a targeted recruitment
process.
Targeted recruitment is different from a general approach to recruitment.
In a general recruitment activity, which is still useful in some cases, an open
advertisement for a vacancy is placed either in the press or on websites. These
advertisements are open to anyone who believes they have the capabilities or
potential for the position. The client organisation then goes through a long
process of short listing and interviewing before making a final decision.
Targeted recruitment, on the other hand, focuses on the specific capabilities and
characteristics required for a particular business. This is usually achieved by
utilising networks and targeting those people who are known to already possess
the capabilities and inviting them to register their interest.
Succession planning in action
When organisations employ the activities listed above, including targeted
recruitment, they are usually connected to, or embedded in, a succession plan.
The succession plan focuses on two things.
The first is to identify people with potential, to assign them to a position in

which they might progress and then provide them with development
opportunities to achieve that progress. This plan is also supported by the
provision of constructive feedback, usually provided by a mentor who is
assigned to the staff member.
The second focus of a succession plan is to ensure that the organisation

has capability coverage for all of the positions which are critical to its
success.
For example, a critical position in our example business, Buon Appetite Patisserie,
would be that of the baker. If Buon Appetite Patisserie were to lose the baker
suddenly from their Johnsonville shop which is based in a rural location, they may
have problems getting a quick replacement in such a rural location unless they
have someone else trained as a back-up resource. Therefore, it makes sense for
them to develop a succession capability for this role.

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The succession plan is based on an analysis of the position, the identification of

the characteristics and capabilities that fulfil the position requirements and the
competency profile that underpins the position.
In this way, the succession plan assists in recruiting the right people into an
organisation or business where an internal capability does not exist.
In this case, right means someone with the capabilities or potential required who
also fits with the cultural profile and mores of the business. This is important as
recruitment is an expensive activity and if a new recruit does not meet the cultural
profile of the business, they will most likely leave after a short time.
Learning activity: Achieving the right fit
Review your own work history and identify a job or role you were in or an
organisation you worked for where you felt uncomfortable.
Reflect on this and try to identify what it was about that job or that organisation
that caused you to feel the way you did.
Explain how this situation might have been avoided by the organisation or
yourself.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Implement strategies
This step is simply about implementing the strategies and actions you identified in
the previous step to develop and maintain the capabilities of the workforce
required by the business. Implementation involves assigning responsibilities and
timelines for actions to be successfully concluded. Where responsibility for an
action is assigned, it is assumed that the responsible person has the
organisational authority to fulfil the requirement. For example, if a change of
management practices is included in the organisations strategies, it may be
necessary to assign responsibility for the implementation and monitoring of this to
a senior manager in the organisation. A junior manager or member of staff may
not have the necessary formal authority or experience to successfully influence
change at the management level.
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Learning activity: Analysing existing workforce planning issues and strategies

Apply this activity to your own organisation or an organisation with which you are
familiar.
Reflect on the workforce planning issues in the organisation you have selected
and answer the following questions.
For what reasons might an employee vacate a position in your business?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
For what reasons does your organisation declare positions redundant and in
what organisational documentation is the analysis contained?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
What strategies does your organisation engage to make up a shortfall?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
What strategies does your organisation engage to manage a surplus?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

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Monitor and evaluate

Once the strategies in the workforce plan have been implemented, it must be
ensured that the required activities have been implemented and are producing
the desired results.
A key part of the monitoring and evaluation process is to ensure a flow of
feedback about the entire workforce planning process, especially where resource
shortages or surpluses in the labour market might appear and impact upon the
business capability sustainment efforts.
Learning activity: Specialty Baker Business
You are a human resources consultant hired by the Morningstar Bakery to help
them identify any workforce planning requirements they may have in their
business. In their current business plan, they have identified a number of
planned service and product changes and now need to know whether these
have any impact on their current skills, knowledge and experience profile.
The case study is located here:
BPlans.com, Specialty Baker Business Plan, viewed June 2010,

<http://www.bplans.com/specialty_baker_business_plan/executive_
summary_fc.cfm>.
For this activity, you are required to access and read the case study and
complete the following tasks.
1. Read through the business plan provided.
2. Identify any planned changes to the business profile contained in the
plan.
3. Identify whether these changes have the potential to impact on the skills,
knowledge, experience and workload capability of the current workforce.
4. If you have identified that the changes proposed in the business plan will
have an impact however minimal on the current workforce, specify
what those impacts are and answer the following questions:
a. What is the nature of the work to be done in terms of duration?
b. What is the volume and type of work to be done?
c. What mix of skills will be required?
d. Use the worksheet at Appendix 1 to assist you in this analysis.
e. Identify whether the current workforce is capable of meeting the
changed requirements.
f. Where changes to the workforce profile are required, identify the
necessary additional skills, knowledge and experience and when
they will be required. Develop an outline of a plan to achieve the
revised human resource profile.
Develop a report, attaching the worksheets at Appendix 1 and Appendix 2 to
support your findings.
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Reviewing staffing budgets as a result of workforce changes

Remember that when considering workforce changes, in particular the impact
that those changes will have on finance budgets, it is important to consider all the
costs associated with a workforce change. These costs will include salaries, oncosts and recruitment costs.
When developing staffing budgets, organisations generally take into account such
things as sales or manufacturing volume projections as a determinant of staffing
requirements. In addition to that, they sometimes use historical data such as
overtime and averaged production or workflow patterns.
In the example of Buon Appetite Patisserie, this historical data may not be as
useful if the changes included in the business plan completely re-shape these
factors.
Learning activity: Workforce changes
Buon Appetite Patisserie have now decided to increase their trading hours in
their two stores, changing their closing time from 5.30 pm to 9.30 pm on
Thursdays and Fridays, It is estimated that this change will require the following
staff in each store:
Store supervisor
Bakers assistant
Pastry cook
One shop assistant.
Store supervisor 1
$28
Bakers
assistant
$23
Pastry cook
$25
Shop assistant
$18
Total per store
Overall total
(Both stores)
Annual total
Weekly total
Payroll tax 6.5%
Super 9%
Net pay
No.
Hours worked
Positions
Hourly rate
Using the table below, estimate the annual cost of the change in hours per store
and then the overall cost for the five stores.

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Section summary
You should now understand how to use business plans to develop a workforce
plan that establishes areas of shortage, surplus and organisation diversity in key
positions. The plan should incorporate economic and labour market data relevant
to the venture, and map the necessary steps required for the organisational
structure to change.
Further reading

Labour Economics, 7th edn, McGraw Hill, Boston.


Boston.



BPlans.com, 2010, Specialty baker sample business plan, viewed June

2010,
<http://www.bplans.com/specialty_baker_business_plan/executive_sum
mary_fc.cfm>.
Department of Education, Employment and Workplace Relations, 2010,

Resourcing the future: National resources sector employment taskforce
discussion paper, viewed June 2010,
<http://www.deewr.gov.au/Skills/Programs/National/nrset/Documents/
NRSETReport.pdf>.
Department of Education, Employment and Workplace Relations, 2009,

Job seeker compliance data March quarter 2009, viewed June 2010,
<http://www.deewr.gov.au/Employment/ResearchStatistics/JobSeekerCo
mplianceData/ComplianceData/Documents/PCDMarchquarter0809.pdf>,
for general trend data.
Australian Government The Treasury, 2009, Australias Demographic

Challenges, viewed June 2010, <http://demographics.treasury.gov.au>.
Australian Bureau of Statistics, 2010, Statistics by Topic, viewed June

2010,
<http://www.abs.gov.au/AUSSTATS/abs@.nsf/viewcontent?readform&vie
w=ProductsbyTopic&Action=expandwithheader&Num=1#Population
/People>.
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Section checklist
Before you proceed to the next section, make sure that you are able to:
identify labour requirements to meet business plans
analyse existing workforce to determine areas where there are excesses or
shortages
identify and plan to meet the organisations requirements for diversity in
the workplace
research and review current and predicted external labour supply data,
demographic data and economic data, to forecast human resources supply
analyse organisational structures and determine suitability to meet
organisational needs
forecast external labour supply.

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Section 2 Develop Workforce Objectives and Strategies
Student Workbook
Section 2 Develop Workforce

Objectives and Strategies
This section is about the skills and knowledge required by professionals to
establish objectives in relation to the modification and retention of the workforce.
These objectives are designed to rectify areas of high turnover and retain skilled
labour. This unit is also about how these objectives are spread between all
stakeholders, so that agreement of targets and contingency plans are well known
throughout the organisation.
Scenario: Buon Appetite Patissserie
Buon Appetite Patisserie have decided to take on several developments that will
have major impacts on the workforce as it now stands. They are as follows:
The business wants to extend their services and product range to include
gourmet breads, pastries and other related foods.
They want to create a caf environment which includes table service in
each of their stores.
In addition to the above changes, they have also decided to increase
their opening hours on four nights of the week. They have just extended
their opening hours from 5.30 pm 9.30 pm on Thursdays and Fridays,
and now want to extend this again to include Sunday and Wednesday
nights.
Additionally, Buon Appetite Patisserie, like most patisserie businesses, suffers

from an inability to recruit reliable staff with the necessary personal
characteristics. They are especially concerned about the prospect of
unacceptable levels of staff turnover as the business expands and grows. This
has happened to a number of other patisserie businesses who have decided to
expand and the management of Buon Appetite do not want to replicate this, so
they have set the following workforce goals in addition to their strategic goals:
Develop a strategy to recruit and train appropriate junior and senior staff.
Create a work environment that supports the retention of skilled
employees.
Develop management practices that will contribute to a minimisation of
staff turnover.

In order to work effectively as a human resources professional, you must be
able to:
establish objectives for the modification and retention of the workforce
define objectives to address unacceptably high staff turnover
define objectives to retain required skilled labour
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define strategies to source skilled labour

communicate objectives and rationale to relevant stakeholders
obtain agreement and endorsement for objectives and establish targets
develop contingency plans to cope with extreme situations.
Establishing objectives for workforce change and retention

Workforce objectives should stem from the objectives set by the organisation.
Once they are specified, communicated and understood by all involved, the
human resource department should specify its objectives with regard to how the
workforce should be organised and developed, given the strategic undertakings
that have been set.
Setting SMART objectives
A good idea when managing is to set goals or objectives which have action plans
that clarify what is expected of team members and when. When setting goals,
whether they are personal or business, you need to follow the SMART format:
Specific: Goals should be clear and specific. When writing specific goals you are
identifying the tasks to be done and the time it will take to complete them.
Measurable: Specific goals provide you with milestones that indicate your
progress. You will learn to estimate the time it takes to achieve the results you
want. When asked to nominate the time it will take to complete a given task, you
will be able to measure your progress against the goals you have set.
Agreed: Each team member should be in agreement as to what is to be achieved.
Realistic: Goals must be attainable. There is no point in setting unreachable
targets. Instead, set goals that might stretch your capabilities a little. Goals that
are too easy to achieve are meaningless and of little value in providing feedback
on personal work performance.
Timeframe: Goals must have deadlines if they are to be effective. If you do not
have a schedule to work to, your goals might be pushed aside by inevitable day-today problems. Setting deadlines helps you to estimate your progress and focus on
your achievements.
Examples of SMART goals
To implement a mentoring and coaching program by 1 July 201X.
To increase sales by 10% by 1 July 201X.
To reduce staff turnover by 15% by 1/7/1X.
To implement new computer system in 90% of business units by 1/7/1X.
To train all Safety Committee team members in OHS consultation using

approved WorkCover accredited Training Program by 1/11/1X.
To sign five new clients to two-year contracts by 20/12/1X.

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Learning activity: Setting objectives

One of Buon Appetite Patisseries key goals for the next two years is to expand
their products and their service range and create an in-store cafe for its
customers.
Develop five SMART objectives relevant to workforce planning (i.e. recruitment,
selection, compensation, training) that you believe are necessary in order to
support this particular goal.
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
4. ________________________________________________________________
__________________________________________________________________
5. ________________________________________________________________
__________________________________________________________________
Managing high turnover and the retention of skilled labour

The constant struggle to deal with employee turnover is a fact of life that plagues
most, if not all, organisations. Unacceptably high turnover or the loss of highly
skilled staff is a problem most executives are aware of, but may not acknowledge
as a potential loss of revenue. The costs associated with high turnover include:
loss of productivity
time and cost of recruitment
time and cost of training new employees
loss of skill and knowledge
reputation damage.
Once an employee decides to leave a position, they will often cease to be

productive in their role. Other employees are usually affected as well, as they may
see the departure of a colleague as a signal of instability, causing them to lose
their own focus.
The loss of productivity caused by a vacant position obviously takes a financial
toll, as does the search for a replacement, recruitment and screening of potential
candidates, possible payment of benefits and/or accrued annual leave,
orientation and training of new employees and other intangible or hidden costs.
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One of the first responsibilities of the human resource function is to prevent

unacceptably high turnover in one or more of its job categories. The difficulty with
this responsibility is finding out why people leave their jobs. This is ordinarily
achieved by conducting an exit interview, however the problem with exit interviews
is that they are not conducted until someone either resigns or leaves. Ultimately
the best way to retain staff is to fix their concerns before they leave or resign.
The top five reasons employees leave their jobs 1
The rapid changes in technology and business conditions have generated
numerous reasons, real and perceived, for employees to leave their jobs at
regular intervals.
Here are some of the most frequently given reasons:
Employees feel unrecognised and unappreciated. They believe they are only
expendable pawns in the greater game who dont even receive a simple thank
you when theyve performed effectively. Lack of appreciation is also often
displayed in the level of remuneration offered.
Employees believe there is little hope for career advancement or career growth.
Unlike the situation some years ago, they feel that there are distinct classes of
employees, and many jobs offer little opportunity to advance, either with their
employer or their career, while they remain in their job.
Employees believe that their current position is not what was represented during
the interview phase. Many employees believe they received an unrealistic or
incorrect job description when they applied for their position. Many employees
have responded that this was a critical reason they began to test the market
again as they felt a general lack of trust in their employer.
Employees are overworked and stressed in their jobs. Many people perceive an
overwhelming lack of respect for themselves and their work/life balance issues. It
is ironic that this perception is one of the primary reasons for leaving employers
when so many are publicising the fact that work/life considerations are a priority
for them. Employees, apparently, have decided that, in many cases, this is more
rhetoric than fact.
Employees perceive a serious lack of coaching and/or mentoring from their
employers. Some experts believe this is a classic case of a perfect storm
situation. The rapidity of technological changes and the focus on short-term
success has caused increased competition for the best jobs and the requirement
for ever more talented employees. This has spurred an increased need for more
feedback, training and mentoring, which many employees feel is lacking from
their current employer. A related common employee complaint is that the majority
of feedback they receive is negative in content, neither encouraging nor
enlightening.
An alternative to exit interviews is a concept called a pre-exit interview or stay
interview. These interviews typically occur while the employee is reasonably
happy with their employment and seek to continue the cultural positives that
employees enjoy about the workplace while eradicating those things that they
dont enjoy.
Kelly Services, 2010, Smartmanager.com.au, 5 Reasons People Leave Their Employer, viewed June 2010,
<http://www.smartmanager.com.au/web/au/smartmanager/en/pages/5_reasons_people_leave_
employers.html>.

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These interviews can be included as part of an organisational climate survey.

Climate surveys are conducted on an annual basis and are designed to assess,
amongst other things, how staff feel about the organisation and people/systems
within the organisation.
An effective climate survey methodology usually includes a survey instrument or
questionnaire and a follow-up interview. These interviews can be conducted
individually or in a focus group situation. The follow-up interview component is
critical because it allows staff to discuss in detail any concerns or issues they may
have identified in the questionnaire. Using the results of these detailed
discussions, issues can be specified and resolved before staff leave the
organisation.
It is important to note, however, that staff turnover is not always negative.
Sometimes it is necessary, desirable and even inevitable. Particularly in this
modern age, it is quite rare for employees to remain in the same position for their
entire working career. Factors that influence inevitable staff turnover include the
age profile of the workplace and a change in personal circumstances (e.g. starting
a family). There are also times when employees leave their positions for positive
reasons such as a job promotion. Promotion within an organisation is a positive
achievement for both an employee and an employer.
Learning activity: Retaining staff via staff stay surveys
Utilising the idea of staff stay surveys, come up with 10 generic questions you
think would be effective in defining the reasons why employees enjoy their
workplace.
Hint: A great website that may help is People Pulse,
People Pulse, viewed June 2010, <http://www.peoplepulse.com.au>.
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
4. ________________________________________________________________
__________________________________________________________________
5. ________________________________________________________________
__________________________________________________________________
6. ________________________________________________________________
__________________________________________________________________
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7. ________________________________________________________________
__________________________________________________________________
8. ________________________________________________________________
__________________________________________________________________
9. ________________________________________________________________
__________________________________________________________________
10. ______________________________________________________________
__________________________________________________________________
Retaining skilled labour
Regular training and learning opportunities are investments that help employees
to prosper and develop their careers while giving the organisation a highly skilled
workforce and a competitive advantage in the market.
It would seem that organisations with lower staff turnover spend the most on
training and education.
Minimising employee turnover will benefit the organisation. As it has already been
said, replacing staff is a costly process skills are lost, resources are disrupted
and recruiting new personnel takes time and money.
Employees who receive ongoing training are more likely to commit to their
employers because:
completion of the training develops their careers
the training enables them to take on greater responsibility and more highly
paid work.
job rotation is an important developmental activity that incorporates

training and broadens and develops an individuals knowledge. Effective
use of this strategy involves rotating people within meaningful positions
that stretch their current capabilities.
Care should be taken where job rotations are used as part of a staff
members development as the effectiveness of the job rotation approach is
minimised if staff members are rotated into jobs which do not present
them with a challenge.
If organisations are serious about minimising staff turnover, managers must

realise that money isnt everything. Of course, it is important, but financial
incentives will usually encourage employees to stay only over the short term.
Employees also need opportunities for growth in the long term.
Organisations need to offer a solid foundation for growth. Employees need to
know specifically where they can go in the company and what they need to do to
get there. A clear path is very much a plus.

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Other proven techniques for ensuring that people stay longer are:
Praise employees when theyve done a good job.
Provide constructive feedback that is targeted towards identifying and

addressing specific performance issues.
Create a good working relationship with employees individual workers

are less likely to leave if they feel they are valued members of a team.
In some situations and industry sectors, it is possible for management to

minimise the cost of staff turnover through remote office solutions that allow
employees the flexibility to work at home, with full access to corporate
applications and systems.
To minimise staff turnover, forward-thinking organisations go to great lengths to
help employees balance work and life demands. In addition to lower turnover, this
strategy generates greater employee loyalty, creativity and productivity.
One greatly valued work-life initiative in some industries (i.e. retail) is the
introduction of family-friendly shifts. For instance, a 9.30 am to 2.00 pm workday
can be tailored to allow parents to be with their children before and after school.
Such an approach to being family-friendly is appreciated by employees with
family responsibilities, and an approach that is paying handsome dividends for
certain employers. Such employers can attract motivated, permanent part-time
professionals with very positive effects.
Companies with serious staff turnover issues can consider turning managers into
retention champions.
Apart from managing the business, a retention champion is someone who listens
and is supportive. Such a manager will ask employees for input, will empower
people to make decisions and go a long way towards making work fun.
Transforming managers into retention champions actually changes the
atmosphere in the workplace. Creating a positive atmosphere is perhaps the
single most important way to combat staff turnover.
People might seek out a job because of pay or benefits, but if their boss makes
them miserable every day, they wont stick around no matter what the
compensation.
Learning activity: Managing high turnover and retaining skilled staff
In the earlier scenario concerning Buon Appetite Patisserie, it was mentioned
that patisserie businesses suffer from high turnover of staff. A closer look at this
situation reveals that the turnover occurs at mostly at the junior, part-time and
casual levels where employees are working 1216 hours per week, typically at
night and on weekends. Turnover at this level can be incredibly costly as
employees are often rostered during peak trading times. Having conducted exit
interviews, the three main reasons for this turnover are:
Employees receive little or no recognition for work done well.

The rosters/number of hours available change constantly to appease
full-time employees.
Employees see no valid career path or opportunity for career
enhancement.
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In light of this, Buon Appetite Patisserie has developed the following goals:
Limit the amount of turnover in the junior, part-time and casual employee
categories to 1015%. Develop a work environment that supports the
retention of skilled employees.
List five objectives that you believe will have an impact in the next 12 months
on the turnover of juniors within Buon Appetite, as well as their retention as
skilled labour.
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
4. ________________________________________________________________
__________________________________________________________________
5. ________________________________________________________________
__________________________________________________________________
Learning activity: Managing workforce change successfully

Watch the video BSBADM311A: Callaghan collision centre business resources
on IBSAs YouTube channel at <http://www.youtube.com/ibsachannel>.
Answer the following questions.
The owners of Coffee Guru want to focus more on the growth and development
of their business. In order to do this they need to make some big changes to the
current workforce. How did Andrew Walker and Glenn Keys from Aspen Medical
manage change in their workforce when they expanded their business from two
projects to five?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

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How does Glenn Keys suggest Coffee Gurus go about getting the best team
together? Explain the example he gives to demonstrate what he means.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
What advice does Andrew Walker give the Coffee Gurus with regards to
obtaining skilled labour despite the tight labour market?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Sourcing skilled labour

From time to time it will be necessary for an organisation to attract already skilled
labour from an external source. The reasons for this type of strategy might be
expansion into new geographic areas or expansion into new markets where the
skill sets required are completely new to the organisation. The traditional
approaches to sourcing skilled labour were typically via:
external advertising
recruitment and selection agencies
using a head-hunter
Job Network providers
educational institutions
websites, i.e. MyCareer <http://mycareer.com.au>.
However, with such competition for skills within the Asia Pacific region, many HR
professionals are talking about tapping into social networking and digital media
as a means of attracting talent. Social network pages such as Facebook, LinkedIn
and MySpace all offer organisations a free opportunity to tap into a mass of skill,
knowledge and, ultimately, talent. There is also a greater shift towards recruiting
overseas as labour markets domestically dry up in some business sectors.
Simply put, the candidate is often the party with all the power when skill shortages
exist. Therefore it is up to the organisation to differentiate themselves and find
new and innovative ways to attract the best talent to their business.
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Learning activity: Sourcing skilled labour

Buon Appetite Patisserie has decided on an expansion plan and needs to
source some skilled labour. What strategies would you suggest they use to
compete for skilled employees in the city and rural Johnsonville?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Gaining endorsement and communicating objective targets

Developing objectives and targets
In larger organisations, numerous people need to be involved in the endorsement
of objectives, especially when it involves workforce planning. The larger the
organisation, the more complex it can be. Therefore, many people need to be
involved in setting up plans so that the plan includes all components of the
organisation. The following people may be involved:
human resources manager
general managers
operations manager
financial controller
financial manager
production manager
supervisor.
Why do all these people need to be involved?
different expertise
understanding of finance
understanding of production or manufacturing costs
understanding of labour costs
understanding of employment laws
understanding of organisational behaviour principles
understanding of advertising and marketing costs.

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Providing access to objectives and workforce plans

It is vital for a business to allow all stakeholders access to the objectives and
workforce plans so that there is some sort of buy-in at the development stage and
during ongoing management.
Why would it be important to disclose workforce plans to all stakeholders?
The more the stakeholders know about how the organisation is developing,
the easier it is for them to manage development in accordance with what
the organisation needs.
Your team is more likely to become motivated and to understand
limitations and development opportunities.
Team members will have a clear understanding of where the organisation
is headed in relation to skills and knowledge required.
Prioritise your stakeholders

You may now have a long list of people and organisations that need to be
informed of your plans. Some of these may have the power either to block or
advance it. Some may be interested in what you are doing, others may not care.
Map out your stakeholders on a power/interest grid as shown in the figures
below. Classify them by their power over your plans and their interest in your
plans. Be sure to include more external stakeholders, such as members of the
board or committee of management, statutory authority, etc.
Power/interest grids for stakeholder prioritisation
For example, your boss is likely to have high power and influence over your
projects and high interest. Your family may have high interest in your projects, but
are unlikely to have power over them. A persons position on the grid shows you
what actions you have to take with them:
High power, interested people: These are the people you must fully engage
with and make the greatest efforts to satisfy.
High power, less interested people: Put enough work in with these people
to keep them satisfied, but not so much that they become bored with your
message.
Low power, interested people: Keep these people adequately informed and
talk to them to ensure that no major issues are arising. These people can
often be very helpful with the detail of your project.
Low power, less interested people: Again, monitor these people, but do not
bore them with excessive communication.
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Learning activity: Communicating and gaining endorsement

Imagine you are an HR consultant supporting Buon Appetite Patisserie who
have recently detailed their objectives for minimising turnover, retaining skilled
staff and sourcing labour. Answer the following questions.
1. How would you communicate your objectives to the organisation as a whole?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2. Whom would you seek to gain endorsement for objectives and targets?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. What rationale would you use to seek their endorsement?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Contingency planning
In order to reduce the impact of risks associated with the retention of the
workforce, it is always a good idea to develop contingency plans. This is action we
take just in case or making a plan B. This is similar to how we would organise
an outdoor barbeque if it rains, we could provide an alternative indoor venue.
Our risk management system may hint that there is a problem looming that is
deemed to be serious enough to warrant contingency action. In many cases, the
contingency action would be guided by the contingency plan to develop as part of
the planning process.

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Listed below are some workforce contingencies we may need to plan for:
severe illness among a section of the workforce
introduction of government regulation
increases in custom due to new product or service
downturn in custom
disaster.
Learning activity: Contingency planning

Two days after the annual Christmas party at a reception centre near
Johnsonville, five employees from the Johnsonville store were forced to call in
sick with food poisoning.
It seems that some of the food at the reception centre wasnt at the standard
that it should have been. The worst affected employees are the baker and shop
assistants. Christmas is approaching, so it is not the time to be educating new
staff.
Come up with alternatives you think would resolve the situation, given that the
food poisoning problem is predicted to last only 24 hours.
1. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Section summary
You should now understand how to set workforce planning objectives to reduce
high turnover, retain skilled staff and source skilled labour. Additionally, you
should now know how to communicate your objectives to stakeholders after
having gained their endorsement and how to plan for contingencies that might
occur.
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Further reading



Boston.

Australian Government The Treasury, viewed June 2010,


Australian Government Department of Employment and Workplace


People Pulse, 2010, viewed June 2010,

<http://www.peoplepulse.com.au>.
MyCareer, 2010, viewed June 2010, <http://mycareer.com.au>.
Section checklist
establish objectives for the modification and retention of the workforce
define objectives to address unacceptably high staff turnover
define objectives to retain required skilled labour
define strategies to source skilled labour
communicate objectives and rationale to relevant stakeholders
obtain agreement and endorsement for objectives and establish targets
develop contingency plans to cope with extreme situations.

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Section 3 Support Workforce Planning Objectives
Student Workbook
Section 3 Support Workforce Planning

Objectives
This section is about the skills and knowledge required to support workforce
planning objectives.
Along with its proposed plans to expand its stores in City West and Johnsonville,
Buon Appetite Patisserie has chosen three locations in which to open new
stores in 12 months time. One of these stores is in the city centre, and the
other two are in rural locations which are major tourist destinations.
As the human resources consultant working with Buon Appetite, you have
developed objectives and strategies which have been endorsed and
communicated to key stakeholders. In addition to the expansion plan they have
just announced, management have also decided to close one of the existing
stores within the nominated timeframe.
They want to trade from only four locations in the future as this as they believe
that this will help them to creating a market brand, maintaining quality
standards and accessing their target markets.
The objectives:
To develop a HR needs forecast for each role required in each store, a

minimum of three months prior to the store opening date, considering
internal transfers and promotions.
To close store X with the view to redeploying desirable staff to a new or

existing store within two weeks of the closing date.
To ensure that redundancies do not exceed 10% of the total workforce at

the closing store.
To recruit and select adequately skilled staff for each of the additional
stores a minimum of 12 weeks prior to each store opening date.
To develop a 12-week training plan for each new staff member that
ensures all new staff are adequately trained prior to the store opening
date.

In order to work effectively as a human resources professional, you must be able
to:
implement action to support agreed objectives for recruitment, training,
redeployment and redundancy
develop and implement strategies to assist the workforce to deal with
organisational change
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implement a succession planning system to ensure desirable workers are

developed and retained
implement programs to ensure the workplace is an employer of choice.
Supporting agreed objectives

Once objectives have been set, the plan should move to a micro level that details
exactly what needs to be done, who is going to do it and by when. This is better
described as action planning. An action plan is simply a list that chronicles what
has been agreed to be done in order to support the objectives.
Given the five objectives in the scenario concerning Buon Appetite Patisserie, if
we were to consider that the first new store was within a reasonable distance of
the store that was closing, and that the four events (opening of three new stores
and closure of one store) are likely occur within three months of each other, what
activities would you add to an action plan under the four headings below?
Recruitment
Redeployment
Training
Redundancy.
Hints:
Remember that workforce planning requires you to look at the resources

you already have available before you turn elsewhere.
Consult a human resource needs forecast and organisation structure.
Remember to address any relevant legislation Work Fair, EEO, antidiscrimination, redundancy.
Consider internal transfers.
Develop recruitment and selection alternatives and strategies.
Consider training and development needs: trainer and assessor, training

plan.
Consult relevant awards and other industrial instruments.

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Learning activity: Buon Appetite Patisserie

Recruitment
Redeployment
Training
Redundancy
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Learning activity: Action planning

Utilising the brainstorming activity you just undertook, develop an action plan
that places each activity in order of when it should be undertaken, keeping in
mind due dates. Assume that the store closure is 15 weeks from today and the
store opening 18 weeks from today.
As part of the project, you should incorporate the following members into your
project team:
general manager
administration manager
the supervisors of the two current stores
the prospective supervisors of the new stores.
Team objective:
No.
To execute a plan that requires the opening of a new store within 18

weeks incorporating at least 60% of the staff of a store closing within 15
weeks. The plan will include a comprehensive 12 week training plan for
new staff as well as details relating to the redeployment and
retrenchment of employees from the closing store.
Activity

By whom
By when
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No.
Activity
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By whom
By when

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Managing change
When people from within a workplace are faced with change, especially a change
as large as redeployment, there is always going to be some resistance to that
change. In some cases though, employee attitudes can range from early adopters
to passive acceptance or shock. As a human resource professional, it is your job
to help the employee settle into their new environment by making the changes as
non-confrontational as possible.
When developing a plan for managing change, it is important to understand the
range of emotions people make experience when a change occurs.
Source: Kelley and Conners The Emotional Cycle of Change, from The 1979 Annual
Handbook for Group Facilitators.
One approach to understanding this dynamic is the emotional cycle of change. In

this approach, people experiencing change go through the following stages:
Uninformed optimism This is where people go into the change process with a
belief that it will be good for the organisation or for themselves. It is an optimism
based around the individuals perception of the outcomes, rather than detailed
information about the change.
Informed pessimism After the change process has commenced, a form of
reality surfaces and the individual is able to see some of the drawbacks in the
process. Initial optimism is now coloured by the individuals experiences which
may not be all that they had hoped for.
Hopeful realism This stage is where people are able to develop a picture of the
change which is closer to the actual reality and see more clearly the process and
the outcomes.
Informed optimism By this stage, the individual has developed a pragmatism in
relation to the change and can see an end to the change process.
Rewarding completion The individual can see the end result and may be
satisfied with the outcomes from a change project perspective. It can also be an
expression of relief that the change process is concluded and people can get
back to normal.
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Learning activity: Managing change

Do some research, either at a local library or on the internet, using the sources
listed in the further readings of this section. Firstly, find a model that you think
best illustrates the process by which people confront, resist and finally accept
change. Draw it below.
Next, come up with three reasons for why people resist change. Finally, provide
an example of a work-related change that you either resisted or embraced and
why you did so:
1. ________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
Example
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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How can we overcome resistance to change?

The change agent can access and review a model and ask a range of questions
about any potential resistance to the change, including peoples perception of the
change goals and process. Having identified these, the change agent can develop
countermeasures to either prevent issues or minimise their impact should they
eventuate.
The following strategies and actions provide the basis for minimising resistance to
change and are based in dealing with the impacts of change:
Communicate effectively:
Keep people fully informed.
Give them the facts that are relevant to them.
Use technology if appropriate.
Involve people:
Raise potential issues and ask for input and suggestions.
Ask for help when implementing change.
Mentor and coach people through the change:
Provide support and encouragement.
Provide training and coaching.
Provide reassurance to overcome fears.
Reframe peoples perceptions:
Encourage people to see the advantages of the change and the

disadvantages of not changing.
Reframe peoples perceptions and reduce their fears by helping them to

put the change and its effects into perspective.
Learning activity: Changing perceptions

Your organisation has just advised you that you will now be required to wear
new uniforms to work each day. They are bright orange overalls with large
pockets and glow-in-the-dark stripes on the sleeves. They have long sleeves, are
easy to iron and are machine washable.
What are the positives of the change?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

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Succession planning
As discussed earlier, succession planning is a process that identifies and
develops internal personnel with the potential to fill key or critical business
positions. It ensures the availability of experienced and capable employees who
are prepared to assume these roles as they become available.
Succession planning also accelerates the transition of qualified employees from
individual contributors to managers and leaders.
Succession planning:
prepares current employees to undertake key roles
develops talent and long-term growth
improves workforce capabilities and overall performance
improves employee commitment and therefore retention
meets the career development requirements of existing employees
improves support to employees throughout their employment
counters the increasing difficulty of recruiting employees externally
focuses on leadership continuity and improved knowledge sharing
provides more effective monitoring and tracking of employee proficiency

levels and skill gaps.
Succession planning is a necessary part of an organisations ability to reduce the

risk of labour turnover, create a proven leadership model, ensure smooth
business continuity and improve staff morale.
There are four stages to developing an effective succession plan:
identifying roles for succession
developing a clear understanding of the capabilities required to undertake

those roles
identifying employees who could potentially fill and perform highly in such
roles
preparing employees to be ready for advancement into each identified

role.
This process has the added advantage of helping human resource professionals
to identify how many people are ready or are being developed for key roles in a
business.
An example of an abbreviated succession planning chart is contained on the
following page.
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Example: Using and reviewing the succession plan

All organisational plans should be regularly reviewed and modified where
necessary. Succession plans are no different from other plans and should be
subject to regular review and modification. Earlier we considered the human
resource needs forecast in the context of Buon Appetite Patisserie opening
three new stores. In addition to replacing the outgoing General Manager, it was
revealed that the business would need to employ the following core personnel
within the next 12 months to meet expanded business needs:
two, possibly three new store supervisors
at least two more bakers.

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Your tasks:
Priority 1:
Focusing on these positions, identify strategies for promoting those

employees already working in the business who have high potential or
are ready for promotion.
Assess all positions and identify all core positions. If you need to, you
may add assign core status to new positions and add them into the
succession plan.
Identify which roles that can be filled from within and which will require
the recruitment of new staff.
Identify strategies for recruiting new people into core roles if a suitable
successor is not already identified.
Priority 2:
Re-develop a succession plan outline, focusing on the new roles required.

Assess the current staff not already considered for promotion as part of
Priority 1 and see who may be suitable for development in a particular
area.
Use the Current Workforce Profile for Buon Appetite Patisserie Base
Data sheet included in Section 1 of this workbook to develop your
understanding of the characteristics of the current workforce.
Explain your reasons in a brief report.
Learning activity: Succession planning

Having completed the succession plan activity, reflect on the process you have
worked with and your own workplace experiences and list some of the benefits
of undertaking succession planning activity:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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Learning activity: Securing expertise after succession

Watch the video BSBADM311A: Callaghan collision centre business resources
on IBSAs YouTube channel at:
<http://www.youtube.com/ibsachannel>.
Answer the following questions.

Robert Dalton from Ernst & Young has seen the devastation caused as a result
of having no succession plan. What mistake does he say family businesses
make when handing the business over to the next generation?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
What criticisms does Robert Dalton make about small, emerging businesses?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
What does Mr. Dalton say is the consequence of not dealing with succession?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
According to Mr. Dalton, what is the most important thing for Omega Corporate
Security and their families during this process?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Employer of choice
A difficult question for many organisations is, How do I become an employer of
choice? Is it simply a matter of paying people more than everybody else?. The
answer to the second question is No!. Being an employer of choice has more to
do with competitive advantage than most people think. Providing an employment
environment that is desirable on the employees behalf and difficult to replicate
quickly is the essence of an employer of choice.

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When an organisation is intent on becoming an employer of choice, it often does

not have a specific idea in mind about what this really means. The organisation
knows it wants some degree of competitive advantage, to be more attractive than
its peers in either its industry or its geographical region, but the steps on how to
achieve this or what benefits to offer is less clear.
Employers of choice typically provide their employees with the following key
benefits:
an opportunity to do more and experience more

engagement with the employee from day one rather than alienating them
helping new employees to become involved with their co-workers from day
one
fair treatment
well designed and thorough recognition programs
opportunities to learn more
demonstration of trust by giving employees authority in certain areas
a work environment that balances personal life with business
requirements
job security.
Learning activity: Employer of choice

Each year the HR Leadership Awards are distributed for employers of choice.
Past and present winners of the series of awards are listed on the HR Leaders
website:
HR Leader Compass Awards, viewed June 2010,

Look up the website and identify below the judging criteria that are used to
determine the winner of each years employer of choice award.
How do you think your employer would fare competing against these criteria?
Identify which criteria your organisation would do well in and which need
improvement.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
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Section summary
You should now understand how to develop and implement action plans that
support workforce planning objectives. You should also understand how to
implement a succession planning process that ensures employees are constantly
being developed for more senior roles, all the while supporting initiatives that
endeavour to promote the ideal of employer of choice. Additionally, you should
know how to facilitate the change process employees are confronted by during
redeployment.
Further reading



Boston.
Jones, J., and Pfeiffer, J., (eds), 1979, The 1979 Annual Handbook for
Group Facilitators, Pfeiffer & Company, San Diego.

Australian Government The Treasury, viewed June 2010,





Section checklist
implement action to support agreed objectives for recruitment, training,
redeployment and redundancy
develop and implement strategies to assist the workforce to deal with
organisational change

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implement a succession planning system to ensure desirable workers are

developed and retained
implement programs to ensure the workplace is an employer of choice.
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Section 4 Monitor and Evaluate Workforce Trends
Section 4 Monitor and Evaluate

Workforce Trends
This section is about the skills and knowledge required to monitor and evaluate
workforce trends.
Having developed strategies and objectives for the workforce in relation to new
store openings, upgrades and expansion into new markets, Buon Appetite
Patisserie is hit by a global economic problem that has now restricted some of
their capacity to borrow funds.
It is decided that the service and product upgrades are still viable. However, the
new store openings will have to be reviewed and may have to be postponed for
another 12 months.
The decision has also been made to close two stores instead of one to protect
against any financial losses being incurred by the business.

In order to work effectively as a human resources professional, you must be
able to:
review workplace plan against patterns in existing employee and workforce
changes
monitor labour supply trends for areas of over- or under- supply in the
external environment
monitor effects of labour trends on demand for labour
survey organisational climate to gauge worker satisfaction
refine objectives and strategies in response to internal and external
changes and make recommendations in response to global trends or
incidents
regularly review government policy on labour demand and supply
evaluate effectiveness of change processes against agreed objectives.
Reviewing the workforce plan

One of the key issues in an organisations planning system is to determine when a
plan or strategy requires review and change. An organisation must identify and
monitor key measures in each plan and assess their performance in the context
of both their goals and the environment in which the organisation operate.
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Workforce Plan and factors

to be reviewed
The relationship and relevance of the workforce plan to the business plan should
be regularly analysed and reported upon. The heart of the organisations planning
system is ensuring relevance and value and in this sense, it should be
continuously reviewed.
A general framework for conducting reviews is included below:
Environment changed?
Assess needs and

threats
Early warning signs
Confirm revised
needs
Assumptions
Business profile change
Changed requirements
Many businesses which have workforce plans tend to review them at the same
time they conduct reviews of their business plans.
Ongoing review and analysis of the workforce plan should identify and review the
key characteristics that formed the plan.
Early warning signs
There are a number of indicators that can serve as early warning signs in the
review and analysis process relating to the workforce plan. These signs include:
indications of dissatisfaction with key aspects of the organisation resulting

from a climate survey
increased staff turnover rates in one service area or across the entire
organisation
the organisation is struggling to recruit new staff due to lack of current

knowledge of labour supply and demand a recognition that other firms
could provide some of your non-core services more cost effectively
the organisation is expanding its services, products, or the number of its

stores/outlets
sudden downturns or upswings in the economy
the organisation has little data and knowledge about the effectiveness of
their human resource function.
Steps to undertake when reviewing your workforce plan

Review the business environment
Review the business environment and develop an appreciation of any changes to
the business environment that may have occurred since the workforce plan was
originally developed. Some of the changes may not have had any influence and
can be put to one side.
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In cases where the changes do impact on an organisation, they need to be

assessed to identify the precise influences so that countermeasures can be
developed to address the changes.
Review objectives, targets and results
Next, the organisation should review their workforce plan and ask fundamental
questions as part of this review.
Where a review is conducted as part of a normal review process in an unchanged
operating environment, the key question is What did the organisation plan to
achieve?
For example:
reduce labour turnover
identify the number of vacancies filled
calculate the amount of training to be delivered
reduce labour costs
offer new incentives or rewards.
The organisation should then ask the most fundamental question of all:
Did we achieve what we had planned?
If not, then the objectives and targets should be reviewed and modified where
required.
When a significant change is identified in the organisations operating
environment, the reviewer should ask questions such as:
What are the strategic impacts of this change on the business?
What specific impacts will they have on our business profile?
What impacts do they present for our workforce profile and the subsequent
objectives and targets in our workforce plan?
Are there any changed workforce resource needs and what revised
strategies do we need to adopt?
What revisions do we need to make to our objectives and targets?
In a changing environment, additional questions may need to be asked about the

organisational structure, systems and the overall culture to ensure that they work
together in harmony to achieve the organisations business goals.
Revise the strategies, objectives and targets in the workforce plan
After completing the above steps, the organisation should be in a position to
revise their workforce plan and to re-develop it to meet any new requirements. As
with the initial plan, any changes should focus on capitalising on the strengths of
the organisation, addressing any identified weaknesses and making the most of
opportunities that might benefit the organisation.

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Processes to assist in workforce plan review activity

Formal review meeting
A formal review meeting, regarded by many as a part of a normal management
routine, is the main way to conduct reviews of organisational plans. These
meetings should include the managers of all areas within an organisation and
should focus on business changes and emerging business needs. These are
structured activities and involve the following steps:
Assessment of current plan to confirm performance outcomes.
Analysis of current business environment and business profile to identify

and confirm any changes.
Confirmation of any changed resource requirements.
Assessment of any threats and identification of priorities for change.
Development of revised goals, strategies and targets.
Confirmation of outcomes and development of a revised workforce plan.
In addition to the formal meeting, other steps include the following.

Consult the workforce
Consult with people in supervisory and frontline positions to gain a first-hand
perspective of how the organisations plans are progressing and where changes
should be made. This is a good way of gathering real time information which can
then be compared to the management level inputs gathered in the formal review.
Care should be taken when talking to the workforce to ensure the consultation
doesnt create or raise unrealistic expectations amongst the staff.
Hold focus groups and team discussions
Hold formal or informal group discussions regarding the organisation and its
business direction. Identify any potential problems or threats and possible
countermeasures. These focus groups could be conducted as part of regular staff
meetings, or incentives could be offered for staff to participate in focus groups
conducted outside office hours.
The outcomes of focus group activities should be recorded and copies provided to
group members to assure them that their inputs have been recorded accurately
and are being seriously considered.
This is important. If people believe their input is being modified without their
approval or isnt being taken seriously, they probably wont participate in further
focus group activities.
Employee surveys
Conducting organisational climate surveys enables staff to give feedback
regarding all aspects of their working life. Surveys can be used to measure job
satisfaction, to determine employee work intentions, receive feedback about work
processes and systems and obtain recommendations for improvements to these
systems and processes. Survey feedback can provide an informed understanding
of employee perceptions about the workplace and provide suggestions for
retaining existing staff and attracting new staff.
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Learning activity: Review objectives

List three techniques you would use to review an organisational structure
change that introduced a quality manager to oversee the standard of bread
produced at a local bakery.
1. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Monitoring labour supply and demand trends

Constant review of changes occurring to labour supply and demand is an
important part of a human resource managers role, as it can impact on the
organisations workforce plan. This has been made a lot easier with the internet
now in common use, not just for business and communication, but also as a
research tool.
Earlier we referenced the Australian Bureau of Statistics, the Australian
Government Treasury Department and the Chamber of Commerce as excellent
hubs for acquiring information about workforce trends. In addition, the following
recruitment websites are excellent sources for commentary on workforce trends:
Hot Jobs <http://hotjobs.yahoo.com>
MyCareer <http://mycareer.com.au>
Seek <http://www.seek.com.au>
Byron Employment <http://employment.byron.com.au>.
Subscribing to the Australian Human Resources Institute (AHRI) and Australian

Institute of Management (AIM) monthly magazines, and their associated
publications, is also a good of way of staying in tune with workforce trends.

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Learning activity: Monitor industry and government sources to determine labour

supply and demand trends Part 1
A human resource professional should routinely plan to monitor the information
sources referred to above. In the list below, write down the different websites
above and determine how often you think they should be referred to in order to
keep informed of current labour market demands and supply. Feel free to add
any other sources not already mentioned.
Information source
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Weekly/monthly/etc.

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Learning activity: Monitor industry and government sources to determine labour

supply and demand trends Part 2
Evaluate the impact of these trends on your organisation.
Nominate three sources you have identified and explain the labour supply and
demand trends those sources reveal that may be relevant, and the impact they
might have on your organisation.
Source: ___________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Source: ___________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Source: ___________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

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Gauging organisational climate

There are a variety of tools managers can use to measure the satisfaction of
employees. The most common of these tools are climate surveys and employee
opinion surveys.
Climate surveys
As discussed previously, a climate survey is a particular type of questionnaire that
provides information on the views of staff members within an organisation and
how they see the workplace. Climate surveys measure the internal climate and
the general feel of how people view their work and workplace.
The types of issues covered in a climate survey may include (amongst others):
physical work environment
enjoyment of work
rewards and recognition
management practices
leadership, including vision
understanding of the business
opportunities to develop
promotional possibilities, career progression
customer focus of the business
relevance of work to business objectives
compliance with legislation in regard to employment (safety, EEO).
The survey is a useful tool for providing management with a snapshot of the
general feeling of the staff. By including demographic information in the collection
of data, the organisation has the ability to drill down into locations or business
units, or even across gender or age groups (for example), to analyse the data to
identify areas requiring managerial input.
Climate surveys are used to provide management with information to assist in
decision-making and provide alerts about areas requiring urgent attention. It is
recommended that climate surveys be conducted electronically, preferably as an
outsourced process, in order to remove suspicion about privacy, confidentiality
and the use of results and to provide a trusted environment. This is essential to
ensure that the staff answer the survey honestly, thereby giving the best possible
information.
Measurement will de-motivate staff if no action is apparent after the survey.
Managers must ensure that the views of staff are acted upon, areas requiring
improvement are addressed and any actions taken are communicated clearly to
staff.
It is best practice for the survey results to be transparent and publishing the
results for staff to view is very motivating. The climate survey should be run
periodically as a pulse survey to be able to show that improvements have been
achieved and to focus attention on the need for continual improvement.
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Employee opinion surveys

Many management teams assume that they know what their staff are thinking,
simply because they communicate daily. They might engage staff in the tasks
relating to the achievement of work, but rarely take the time to discuss how staff
feel about a range of other factors that influence motivation in the workplace.
A good indicator is a high staff turnover. How high is too high? As it is industry
specific and impacted on by many factors, it can easily be rationalised. Employees
will readily give their opinions, but there are some dangers. When employees take
the time to highlight their concerns, they expect managers to act on those
concerns. If employee opinions are collected and nothing changes, this will be a
de-motivating force in the workplace, but if you act on these opinions, employees
will be motivated and will begin to deliver sustainable gains in productivity.
The periodic collection of employee opinions is an important management
practice, not only to view the current status of the view of employees, but also to
monitor the trends in those opinions. It aids in decision-making on a range of
operational and people management issues, and gives good general insight into
management practice.
Learning activity: Review objectives
Construct an employee survey for Yellowstone Supermarkets in the space
provided below, by placing one question under each heading. Use Appendix 1 as
an example if you get stuck.
Physical work environment:
__________________________________________________________________
__________________________________________________________________
Enjoyment of work:
__________________________________________________________________
__________________________________________________________________
Rewards and recognition:
__________________________________________________________________
__________________________________________________________________
Management practices:
__________________________________________________________________
__________________________________________________________________
Leadership, including vision:
__________________________________________________________________
__________________________________________________________________

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Understanding of the business:

__________________________________________________________________
__________________________________________________________________
Opportunities to develop:
__________________________________________________________________
__________________________________________________________________
Promotional possibilities, career progression:
__________________________________________________________________
__________________________________________________________________
Compliance with legislation in regard to employment (safety, EEO):
__________________________________________________________________
__________________________________________________________________
Refining workforce plans and objectives

In recent times there has been a great deal of global political and economic
unrest. This has resulted in an environment that is volatile in terms of
marketplace and economic trends.
Examples of this include the war on terror, the Iraq and Afghanistan situations,
and the global financial crisis. The earlier collapse of established international
businesses such as WorldCom, Enron and local entities such as HIH and Ansett,
also created an element of uncertainty in labour markets around the world at the
time.
The potential volatility that underpins the marketplace, leading to marked
changes in customer expectations, has increased a need for vigilance in terms of
reviewing and refining all plans produced by a business, especially their business
and workforce plans.
A competent and informed human resources professional will appreciate the
value of constant review mechanisms that evaluate the success of workforce
plans and the initiatives within it. This includes refining or changing an objective
or strategy where necessary.
Some of the reasons workforce plans and associated objectives should be
regularly reviewed have been discussed earlier in this section. However, the need
for refinement of plans and objectives is based in the following logic:
Business planning requires organisations to forecast and plan strategically,

based on the current business and economic climate.
While this might be the right path at the time of planning, conditions and
circumstances can change.
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It is important to review workforce planning objectives and strategies to

reflect the new business direction or circumstances.
Changes can come from internal business activities such as:

o takeovers or mergers
o new management
o new product lines or services
o financial or budgetary issues.
Changes may also be as a result of circumstances external to the business

such as:
o economic downturn
o competitor activity
o legislative changes.
o The refinement of plans and objectives also requires support from
across the organisation.
o For instance, if the refinement of the workforce plan or objectives
impacts on a particular business area, it is sound change
management strategy to include a representative from that area as
a participant in the refinement activity. This enables the
representative to understand fully reasons for any required
refinements and to understand the implications of the refinements
for their area. They will also have an opportunity to make
suggestions. It also makes sense for the human resources manager
to get input from their customers so that they can develop their
understanding of customer issues, needs, perceptions, and the
impact any proposed refinements may have on their customers.
Learning activity: Objectives

In the wake of a financial crisis that limited the capacity for businesses to
borrow money, Buon Appetite Patisserie needed to change their objectives. In
order to reduce potential debt, their plans for growth reverted to rescheduling
and reduction by closing two stores that were only marginal profit-making
entities.
Two of the new organisational objectives are:
to close two stores prior to the end of the financial year
to defer the opening of two new stores by another 12 months.
Write four human resources or workforce planning objectives that consider

redundancy and retrenchment, redeployment, store closing, communication
process and keeping staff motivated prior to the close.
1. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________

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2. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. ________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Implement and evaluate changes

Once changes to the workforce plan have been implemented, they should be
monitored and evaluated to establish whether the revised objectives are meeting
required targets. The process employed to implement the changes across the
organisation should also be reviewed and evaluated.
Evaluation is a part of the monitoring process and, in this context, involves
observing how the revised objectives and workforce plan are performing.
Evaluation is not a hit and miss activity. It is a structured activity that is based on
an assessment of relevant performance data gathered from reliable sources.
One of the first steps in the process of evaluation is to identify the data needed to
conduct a robust evaluation.
The second step is to decide what will be done with the outcomes of the
evaluation. Unfortunately many organisations conduct reviews or evaluations but
dont act on the outcomes or focus their attention on things that are not important
to their business effort. If an organisation is going to gather evaluation data, they
should act on all of the outcomes that data produces.
Evaluating changes to the workforce plan
Some of the things you will be looking for when evaluating the changes to the
workforce plan are:
alignment of the changed objectives with the business plan
compliance with government policies on labour demand and any changes

or mooted changes to government policy
compliance with organisational human resources policies
effectiveness of the changes in meeting their objectives
overall contribution to the business.
The questions that will assist in generating relevant data about the performance
of changed plans and objectives, in the context of the above issues, are:
Do the changes cover all of the issues they should?
Are the revised objectives achieving what we need, and in an efficient

manner?
Do the people who are implementing the changes fully understand them?
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Evaluating the process used to introduce the changed workforce plan

The second part of the evaluation is to assess the effectiveness of the process, to
review and revise the workforce plan and implement change. This change process
includes:
how the participant group was identified and what the reasons were for
their participation
who assisted in the review/revision process and how their participation

was obtained
how the changes were decided and agreed upon
how the organisation was notified of the changes
the process used to implement the changes
who was involved in the evaluation process and how their participation was
obtained.
These are indicative issues only, but they all focus on evaluating the process and
identifying the interpersonal dynamics involved.
Section summary
You should now know how to adapt to changes that occur within the labour
market. Modifying the workforce plan is achieved by monitoring the labour market
for changes in supply and demand, which can be done by analysing data brought
forward by the sources mentioned. Additionally, the use of succession plans as
part of the workforce plan creates a great deal of flexibility when external factors
force changes to the workforce.
Further reading



Boston.





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Yahoo! HotJobs, 2010, viewed June 2010, <http://hotjobs.yahoo.com>.
MyCareer, 2010, viewed June 2010, <http://mycareer.com.au>.
Seek, 2010, viewed June 2010, <http://www.seek.com.au>.
Byron Employment, 19952006, viewed June 2010,

<http://employment.byron.com.au>.
Section checklist
review workplace plan against patterns in existing employee and workforce
changes
monitor labour supply trends for areas of over or under supply in the
external environment
monitor effects of labour trends on demand for labour
survey organisational climate to gauge worker satisfaction
refine objectives and strategies in response to internal and external
changes and make recommendations in response to global trends or
incidents
regularly review government policy on labour demand and supply
evaluate effectiveness of change processes against agreed objectives.
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Glossary
Glossary
Term
Definition
Workforce
planning
Workforce planning is about looking at what an

organisation needs to accomplish in a given period of time;
what skills, knowledge and experience are needed to get
the job done; and what type of workforce is required to
provide that mix of skills, knowledge and experience. It
defines the activities necessary to have the right people
with the right skills in the right place at the right time.
Business plan
A business plan is a formal statement of a set of business

goals, the reasons why they are believed to be attainable,
and a plan for reaching those goals. It may also contain
background information about the organisation or team
attempting to reach those goals.
Strategic plans
Strategic planning is an organisations process of defining

its strategy or direction, and making decisions about
allocating its resources, including its capital and people, to
pursue this strategy.
Operational plans
Short term, highly detailed plan formulated to achieve

tactical objectives or organisational goals.
Labour market
The status of the population with the capability of being

employed.

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Appendices
Student Workbook
Appendices
Appendix 1 Buon Appetite Patisserie - Business plan extract
Executive summary
Buon Appetite Patisserie is a specialist bakery business dealing in a range of
breads, pastries, specialty cakes and specialty sweet breads.
Until last year, the business focused primarily on basic bakery products. However
because of a demand for a broader range, especially from the large number of
tourists at the Johnsonville store, this focus has changed.
The decision to broaden our product range and to include meal services and a
caf ambience to our shops has been supported by the findings from customer
surveys and general demand at our two stores. In the past year, several new
products and services were trialled in each store and the feedback was
overwhelmingly positive. There was major support for these products and services
to become a normal part of the business operating profile.
This plan reflects and supports the decision to make this change by the Buon
Appetite Patisserie management.
The future
Vision statement:
Our vision is to continue to be the Patisserie of choice for our existing customers
and to encourage new customers to subscribe to our products and services.
Mission statement:
We will achieve our vision by increasing the standard of all of our products, by
providing a range of products and services unrivalled by our competitors, and by
providing excellence in all aspects of our services to our customers.
Goals
To support the achievement of our vision and mission, our goals in this business
plan are:
To establish the name of Buon Appetite Patisserie as a provider of a

product range and services of the highest quality standards.
To develop a strong presence and recognisable profile in our communities,

which is needed to support and sustain our sales objectives.
To develop a full range of products that meet our quality and product
variety standards by the second quarter.
To develop a full caf service, including a menu, by the end of the first
quarter.
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Appendices
Products and services

Details of products:
Buon Appetite Patisserie provides a wide range of exciting products. Some of
these are listed below.
Breads:
white breads, grain breads and rolls
savoury breads that include flavoured pull-aparts using bread recipes

primarily from France, Ham and cheese bake rolls, garlic bread, herb bread
and cheese breads
breads from Turkey, India, Italy, Germany.
In all, Buon Appetite Patisserie will make and sell 37 different types of breads.
Cakes:
celebration cakes
wedding cakes
special occasion cakes
childrens cakes
off-the-shelf cakes including mud cake, fruit cake, standard sponge cake
and iced sponge cake.
Sweet breads & biscuits:
fruit loaves made from recipes from Germany, Holland, France and
Australia
coffee scrolls, fruit rolls and tarts of various types that include fruit mince
tarts, neemish tarts, apple roll-overs, and fruit pies
a variety of panettone (a sweetbread from Italy)
general biscuits and confectionary from Europe including Italian biscotti,

profiteroles, mignon & dolci (Italian sweet biscuits), almond biscuits,
almond tarts and Dutch and German biscuits.
In addition to these products, Buon Appetite Patisserie will also make cakes,
sweet breads and biscuits to order.
Details of services:
Buon Appetite Patisserie will provide the following services in its shop front cafes:
Full table service for customers who wish to order and dine in. This
includes hot and cold meals.
A full drinks service, including the service of coffees of all varieties and a
full range of alcoholic and non-alcoholic drinks.
A counter service for all products sold by Buon Appetite Patisserie.
A sandwich bar where customers can order sandwiches to suit their tastes
and have these made fresh while they wait.

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Appendices
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A pre-ordered lunch service where customers can phone in their order their
lunch for pick-up prior to pick time.
A special luncheon service where customers can order groups meals to

catered for in our caf. This service is limited to groups of up to 12 people.
Registration details
Business name: JJT Pty Ltd
Trading name(s): Buon Appetite Patisserie
Date registered: 21 June 20XX
Location(s) registered: Australia
Business structure: Company
ABN: 000-111-222-333
ACN: XXXXXXXXXXX
GST: Yes
Domain names: www.buonappetitepatisserie.com.au
Business premises
Business locations:
Buon Appetite Patisserie operates out of two locations both of which are wholly
owned by JJT Pty Ltd.
The metropolitan premises are located at 1240 Sydney Rd, City West in a location
15kms from the city centre. The companys head office is located 14 kms away in
an inner city suburb.
Our rural premises are located at 121 High St, Johnsonville, a flourishing tourist
location 85 kms from the GPO.
Buon Appetite has been at the City West location since 1990 and commenced
business under the name of Etruscan Bakeries, which was JJTs then trading
name. In 2002, the business name was changed to Buon Appetite Patisserie and
a broader range of bread and pastry products was introduced to reflect this move.
Buon Appetite Patisserie has been at the Johnsonville location since December
2002, when the company took over a locally owned bakery that was struggling in
the local marketplace. The Johnsonville shop has always made and sold the
required line of breads, pastries and sweet breads.
Key personnel
Current staff:
The key staff in Buon Appetite Patisseries operations are:
General Manager
Adminstration Manager
Secretary/Personal Assistant
Store Supervisors (x2)
Store Bakers (x2).
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Appendices
There are additional support staff in each store, and these roles are laid out in the
organisation chart below.
All staff, and the key requirements of their current roles, are in the document
tilted Workforce Profile for Buon Appetite Patisserie Base Data chart included
in Section 1 of your Student Workbook.
Summary of sales forecast
Sales
Year 1
Year 2
Year 3
Breads
$79,000
$96,000
$120,000
Coffee/Beverages
$39,400
$56,000
$70,000
Lunch items (meals, soups and

sandwiches)
$94,000
$106,000
$143,000
Pastries
$62,400
$89,700
$123,000
Specialty cakes
$53,000
$71,000
$105,000
Specialty sweet breads and biscuits $35,800
$47,000
$60,000
Total sales
$465,700
$621,000
$363,600

Page 75 of 80
Appendices
Student Workbook
Direct cost of sales
Year 1
Year 2
Year 3
Breads
$24,000
$35,800
$42,500
Coffee/Beverages
$15,900
$19,400
$26,000
Lunch items (meals, soups and

sandwiches)
$38,000
$45,400
$54,000
Pastries
$25,300
$33,600
$45,000
Specialty cakes
$23,700
$30, 500
$42,600
Specialty sweet breads and biscuits $18,900
$26,400
$30,200
Subtotal direct cost of sales
$145.80
$191,100
$240,300
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Appendices
Appendix 2 Employee survey

The intention of this initiative is to enhance managements skills to manage
people with a view to improving the business ability to provide effective customer
service. This survey is designed to determine the overall state of managerial
practice within the business, not the skills of each particular manager. The
following questions are designed to provide you with the opportunity to provide
your view of managerial practice within your working environment. Whilst you are
under no obligation to complete the survey, your valued feedback is considered as
integral to the success of the initiative, as it will provide the business with a
means to measure its success. Please read the definitions offered below and
answer the corresponding questions in reference to your working environment.
Giving and receiving feedback
Within organisations, feedback is the exchange of information between
employees and their managers. It often involves frequent formal and informal
discussions about role performance with the view to improving role effectiveness.
Two-way feedback is something that is valued within my workplace?
(Please circle)
Agree
Disagree
My supervisor hosts formal or informal feedback sessions with me?

(Please circle)
Agree
Disagree
My supervisor hosts formal or informal feedback sessions with me at least on a

monthly basis?
(Please circle)
Agree
Disagree
I have a working relationship with my supervisor that allows me to give them

feedback?
(Please circle)
Agree
Disagree
I am satisfied with the amount of feedback I receive from my supervisor?

(Please circle)
Agree
Disagree

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Appendices
Student Workbook
My supervisor values my feedback?

(Please circle)
Agree
Disagree
My work team is satisfied with the feedback we receive from our supervisor?
(Please circle)
Agree
Disagree
The feedback I receive is always of an objective, impersonal nature?

(Please circle)
Agree
Disagree
I believe that I am well informed of what is happening within NMHG Asia

Pacific?
(Please circle)
Agree
Disagree
Coaching
Coaching is a skill that aims to maximise learning and development within the
workplace. When new equipment, systems and processes are introduced, a good
coach ensures that employees attain the skills required so that motivation and
effectiveness is maintained.
My supervisor spends adequate time coaching me in my role?
(Please circle)
Agree
Disagree
When delegating a new task to me my supervisor coaches me in any new skills

required to do the job?
(Please circle)
Agree
Disagree
When a new task or skill is required coaching is a key concern from my

supervisor?
(Please circle)
Agree
Page 78 of 80
Disagree

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Appendices
During a coaching session allowances are made so that interruptions and

distractions are reduced?
(Please circle)
Agree
Disagree
Empathy, patience, structure and planning are behaviours that are often
displayed with coaching sessions within this workplace?
(Please circle)
Agree
Disagree
I am confident that I have the skills to conduct an effective coaching session?

(Please circle)
Agree
Disagree
My supervisor demonstrates confidence when they conduct a coaching session

with me?
(Please circle)
Agree
Disagree
Performance recognition
Performance recognition is considered the provision of positive reinforcement
when employees complete dramatic, visible accomplishments as well as small
everyday successes. Positive reinforcement can vary from a financial reward or
bonus to a verbal well done or thanks.
Performance recognition is valued within this workplace?
(Please circle)
Agree
Disagree
My supervisor often provides positive reinforcement?

(Please circle)
Agree
Disagree
I am satisfied with the performance recognition I receive from my supervisor?

(Please circle)
Agree
Disagree

Page 79 of 80
Appendices
Student Workbook
Listening skills
Listening is the skill of absorbing information from others and acknowledging
understanding of the information.
My supervisor gives me their full attention when I speak to them?
(Please circle)
Agree
Disagree
Summarising and paraphrasing are skills I use to acknowledge understanding of a

message?
(Please circle)
Agree
Disagree
Communication skills such as listening are skills that are recognised by this
workplace as important?
(Please circle)
Agree
Page 80 of 80
Disagree


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2nd Edition

Manage workforce planning

BSBHRM504A Manage workforce planning

Part of a suite of support materials for the

BSB07 Business Services Training Package

Published by: Innovation and Business

First published: March 2010

Gauging organisational climate ..................................................................... 64