Human Resources Functions

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Sarah Straughton        26302        3049

E1 - Human Resources Functions

Human Resources Planning 

The Human Resources Department (HRD) is responsible for Human Resources Planning at ‘Alstom’ and most other big businesses. This means they have a number of main responsibilities to make sure that the business is planned and running well. At ‘Alstom’ the HRD have to plan ahead and make sure they have the correct number of suitable employees for the business. In order to do this ‘Alstom’ set out to fully understand the demand on the labour market in their area. The main things ‘Alstom’ look at are:

  • Availability of labour
  • Competition for employment and placements
  • Local employment trends
  • Skills shortages

These are all very important as they highlight what is going on in the labour market and what may affect the running of ‘Alstom’. Availability of labour shows just how many people there are on offer for employment in ‘Alstom’s’ area, which reveals to them how many people there are to choose from when recruiting. Competition for employees shows whether demand for labour is increasing because competitors are expanding or whether demand is dropping because competitors are having to make redundancies. This also can affect wage rates when recruiting, because as demand increases salary rates are caused to rise. This is because it is harder to recruit the right sort of employees and so companies have to offer better pay conditions in order to attract the right candidates to their business. Local employment trends imply how much labour is available and suggest whether it will be easy or difficult to recruit. It also shows if a local competitor is discarding labour and so provides an advantage for ‘Alstom’ as they can employ these who have been made redundant, as they will have the skills and the experience needed. Skill shortages are very important statistics to ‘Alstom’ as they reveal when the skills needed in their industry are dropping in the labour market, which can be very costly to the business when it comes to recruiting. If the skills they need such as degrees in manufacturing and engineering begin to fall, then wage rates will rise and the competition between ‘Alstom’ and other companies to recruit these graduates will become quite fierce. However, to help this problem ‘Alstom’ are quite fortunate as they have already set up their own training scheme to make sure they are achieving the skills they need.

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At ‘Alstom’ they also review how labour is progressing within the business. They calculate:

  • Succession
  • Sickness rates
  • Accident rates
  • Age
  • Skills & training
  • Wastage rate – labour turnover

This is very important because by using and understanding these factors and statistics it can be seen where ‘Alstom’ may need improving and where things may have to change. For example, if accident rates are high, they may look into why people are so many accidents and what from, etc. By doing this they see if there is anything they can do to help this situation and prevent ...

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