Provide an analysis of the local labour market as well as national trends and explain how these can relate to the ongoing HR Plans.

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Unit 4- Human Resources

Business

Task B                                

Provide an analysis of the local labour market as well as national trends and explain how these can relate to the ongoing HR Plans.

One way to define human resource management function is that it should provide the right kinds of talent to the organisation at the right time. In this context, assuring a supply of qualified labour in a timely fashion becomes a major performance expectation for HRM. The major procedure through which this expectation can be met involves human resources planning. The fundamental process lying under human resource planning is a comparison between the organisations human resources needs and the supply of qualified personnel. This analysis is projected for some period of time into the future. By comparing human resources needs with the supply of human resources, future imbalances can be noted and appropriate actions to remedy those problems can be prescribed. More specifically, the human resources planning process can be divided into a few steps or phases. The first phase is an environmental analysis. This step involves identifying the significant social, legal, economic, political and technological (PESTL analysis) trends taking place in and around the organisation. The purpose of this analysis is to anticipate how the organisation must or will change to remain competitive and successful. It is recommended that the scanning and recognition process be conducted annually. From this environmental sensing process, a list of potential changes, trends and even events is compiled. This list of factors should then be evaluated in terms of four criteria:

  1. Likelihood of important consequence on the business, from significant to not significant
  2. Probability of impact, from high to low
  3. The ability of the organisation to manage the impact from high to low
  4. The reliability and validity of the information sources used to identify the event, from high to low

Following this approach, those events that are judged to come from highly reliable and valid sources that will have significant impact that will probably occur, and that the organisation can manage should become the focus of intense planning and preparation.

Stages in Human Resource Planning

1)                                                    2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

4)                                                           3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

So basically Human resource planning is the method by which the business forecasts how many and what type of employees it needs now and in the future.

There are two aspects to Human Resource Planning. These are:

  1. Internal
  2. External

When creating a human resource plan an organisation, like Asda for example, will need a large amount of data. Some is available internally and externally

Internal

Labour turnover- how many people are leaving your company? Is the labour turnover high or low?

Staff may leave an organisation because:

  • Low morale perhaps due to poor working conditions, unsuitable pay or unsympathetic management
  • Poor recruitment resulting in unsuitable staff and poor induction procedures
  • Poor career prospects allowing little chance of promotion

A high rate of labour turnover can have both negative and positive effects on a firm. The negative aspects would be:

  • The cost of recruitment of replacements
  • The cost of training replacements
  • The time taken for new recruits to settle into the business and adopt the firms culture
  • The loss of new productivity while the new workers adjust

Some degree of Labour turnover is good as it brings in new staff with new skills, new ideas and enthusiasm but it can also be expensive because of:

  • Recruitment, selection and training costs for new staff
  • Efficiency costs caused by disruption and this takes time for new staff to settle in
  • Leaving costs i.e.- redundancy

On balance, then, there is a need for firms to achieve the right level of labour turnover, rather than aiming for the lowest possible level.

At Asda the labour turnover is low as employees there are happy with the way they work. In the near future Asda is going to employ 400 new staff and is going to build 10 new stores. This shows that staff are committed, probably because Asda doesn’t only meet customer needs/satisfaction but also the needs of the staff. Labour Turnover can be calculated as follows:

 Number of leavers in a specified period (usually 1 year) x 100  

Average Number of employees during the same period

How this could be applied to Asda…                               30                   x 100

                                                                                          295

                                                                     =  10.16%

This could be used to predict the likely numbers leaving in the future, and the need to recruit new employees. Similar predictions can be made about the number of employees that are likely to be promoted. It is important that Asda is aware of this information, which could help them with their planning, both long term and short term. Short term planning can be aimed at the immediate needs of the business, such as filling vacancies. It may also help in long term for the future.

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There are various methods that that the business could use when planning for the future 'succession planning'. Below is a list that shows how the business can plan successfully:

  • Changing business aims into employee goals
  • Examining the environment
  • Analysing the current situation
  • Forecasting employee demand
  • Analysing current supply
  • Forecasting internal employee supply
  • Forecasting external employee supply.

The businesses can benefit in many ways if it uses the Labour Turnover Statistics effectively. The business could also use the statistical information for other purposes, which would also be a benefit to them.

Consideration ...

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