Human Resources.

M1 HUMAN RESOURCES ANZAL AL

Human resources involves a wide variety of activities related to the arrangement and implementation of organisational policies, the requirement of opportunities for monitoring, evaluation and change and the application of resources to the fulfilment of organisational ends.

Aspects of ‘people management’ include:

The recruitment, retention and dismissal of staff.

The training, development and promotion of staff.

Liaison with employee organisations and trade unions.

These are areas with which the human resources staff is involved. The overall purpose of the human resources function can for that reason be identified as:

To attract and retain good high-quality staff.

To ensure that the organisation operates within the law in relation to employment and health and safety.

The Philip Markham organisation believes they will not be successful if they do not have the commitment of all staff and intend to look after all their employee’s needs through the functions of the human resources department.

Finance

The overall contribution of the finance function can be grouped in to three main areas:

Preparing accounts.
Preparing wages and salaries.

Obtaining capital and resources.

Philip Markham employs ten members of staff in the finance department. The department makes sure internal customers receive the money they are owed and customers pay their bills. To keep control of finances the organisation allocates different department budgets and expects them to keep to there planned levels income and expenditure.

Finance also has the task of preparing all the accounts each year so that they comply with legal responsibilities to the Inland Revenue. They also complete VAT returns to HM Customs and Excise. Pete Martin the management accountant at Philip Markham is responsible for checking that production levels and sales are on target. He advises all internal customers who are the directors, about the current financial health of the organisation on a weekly basis. An additional responsibility for the finance function is advising the organisation about more money for the purpose of expansion to buy raw materials or expensive equipment so it can remain competitive obtaining extra finance, called CAPITAL at the best rates possible.

Production

The contribution production makes to the overall business is to make a product and provide a service. The core function of the production department is to obtain the resources required by the organisation and transform those into a product. The production function is also concerned with organising the resources to produce the goods and service in the most appropriate way.

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Philip Markham carry out three different operations in their production department, these are as follows:

Purchasing

Manufacturing

Despatch

The layout of the production area has been designed to maximise the flow of materials when producing the shirts from cutting to finishing. The cutting area is near to the stores so that materials can be transported the minimum distance. Quality control is extremely important to Philip Markham and each team cutters, machinists and finishers is responsible for ensuring that quality is right at every stage of the process.

The shirts and ties pass to the packing department, ...

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Philip Markham carry out three different operations in their production department, these are as follows:

Purchasing

Manufacturing

Despatch

The shirts and ties pass to the packing department, which is part of despatch. All items are boxed and labelled and goods linked to the correct paperwork and the dispatchers that each box includes the correct delivery note and advice note for the haulier. Also part of the production function is purchasing staff and the designers. Purchasing is responsible for obtaining the best quality fabrics at the best prices and making sure all raw materials are delivered on time.

Sales and Marketing

The contribution sales and marketing makes to the overall business is to identify what the customer needs and providing it.

The activities of sales and marketing include:

Market research – to find out what customer’s need and customer opinions on proposed and existing products or services.
Promotion – to inform the customers that their particular organisation can fulfil these needs.
Sales – to provide the goods or service the customer thinks he or she needs.

The contribution of sales and marketing is vital in that it directly influences the number of sales that are made and as a result the profitability of the company.

Each functional area operates to support the business aims and objectives and a range of activities goes on in each one. How the functional areas interact with one another is important. For an organisation to be efficient and effective there must be links between the people who work in different functional areas, especially when their activities overlap.

Philip Markham is aiming to set up an e-commerce site to sell classic menswear and their objective is to be the leading British supplier of this type of clothing on the Internet within the next two years and double sales home and abroad within the same period.

In order to achieve such a particular set of aims and objectives the organisation will need the support of a representative from finance, production and sales and marketing. The finance representative can present all the facts and figures that need to be considered when exploring this venture. The overall budget set-aside for web-page development and marketing is £80,000 in the first year. Tina the financial manager believes this is generous given the financial position of the company. She believes it will be vital to control costs of setting up this new venture and to focus on those products that will bring in the most profit for the company.

Her key consideration is that the site should be secure (identified by a padlock symbol), as payments will be made over the Internet. She has also advised that because VAT regulations differ, a separate order form would need to be completed by purchasers from abroad. The site would have to have a communications link with finance as all payments must be logged, collected and recorded by finance before orders are fulfilled by dispatch. Finance would have to notify dispatch when payments had been received. Only then can goods can be sent. The production representatives Tariq Choudrey (Production Director) and Marsha Webb (Manufacturing Manager) have concerns about the Internet site.

Marsha believes there is a limit as to how much production rates can increase to meet additional orders without sacrificing quality.

Details which need to be addressed are as follows:

The cutting tables – new tables have been requested for two years. They are essential if orders increase at a cost of £15,000 each.

The eleven sewers produce on average five shirts a day each. The maximum which can be produced without additional staff is seven unless quality is sacrificed.

The three finishers spend a lot of time on special orders. More staff will be needed in this area unless the website only allows for ‘standard orders’.

The despatch manager advises unless more mechanisation is introduced more staff will be needed if orders have to be completed quickly.

It would be easier to sell knitwear and overcoats on the website most of which are supplied by other companies. However the suppliers of knitwear and overcoats would need at least two months notice if the volume of orders were going to increase substantially.

The manufacturing manager supports the overall ideas but stresses it is absolutely no use trying to sell goods which cannot be produced in a reasonable time period as this would do more harm than good to the company’s reputation. Production need to be involved in the communication process at all times unless they are fully aware of what is happening at all times there wont be any goods to sell.

The sales and marketing function are excited by this new venture. Jade Marsh (sales and marketing director) would like to see the task of setting the website given to a professional web development firm who are likely to charge £40,000 to £50,000 for a site with multi-media images. This will be vital to show the type of fabric that can be selected, the colour and the designs especially for the ties.

The site must be user-friendly quick to access and use and that it can cope with a large number of ‘hits’ without crashing. She believes the key date for it to be finalised is September, so that the company can benefit from Christmas orders. In order for the site to be marketed it will cost money, it must be registered with good search engines. She would like to have special offers to tempt visitors to return again. All stationary must be reprinted to include the website address. During the first year the site needs advertising as widely as possible. The sales and marketing director believes that the e-commerce should be located in marketing (as it is a method of selling goods). Ideally she would like two more staff, one to join the mail-order team and be responsible for Internet orders and another to join customer services in case there are any problems with goods sold over the Internet. She believes this would minimise communication problems as all sales will be controlled in one area. She estimates that the company could sell 200,000 shirts and 150,000 ties if a good job of setting up and marketing the website was accomplished.

The human resources function is concerned about three main aspects.

Where the website operations will be controlled.

How the website will be developed.

Kim Fields the administration and IT service manager believes she should have control of website operations as she is IT manager especially as computer staff are responsible to her. She believes maintenance of the site will be crucial, it is important to set it up fairly quickly and then it can expand. Kim considers the most sensible route for website development would be to hire their own multi-media web developer to set up the page and sub-contract specialist parts to an outside firm if needed. In addition a programme/copywriter would be needed. The software and other associated costs would be about £10,000. Having these staff would mean that the website could be continually updated in house. Keith is concerned about the effect on staff, he is anxious that the mail-order clerks should be trained to be able to print off and process orders arriving through the website as well as carrying out their current job. He thinks they will need extra help at busy periods such as Christmas. If the website is to be successful than eventually another member of staff may be required. He believes it to be more sensible to move this group of staff to the HR/Admin department so there would be better communications with the computer staff. Keith considers any communication problems during planning the stages can be solved by regular meetings between the IT and sales staff. Finance will also need to be included.

Philip Markham has always aimed to produce menswear of excellent quality at affordable prices. The fabric used for shirts is of highest quality and designers aim to produce new designs each year. The functional areas which relates to these aims is the production department, finance department, human resources and sales and marketing. The first action to take would be in human resources the company needs to recruit the best people for the job including cutters, machinists, and finishers and look after them whilst they work. The finance function make sure that a budget is maintained when buying materials, paying wages and embarking in market research when embarking on achieving these particular aims. The finance function can give up-to-date information on the level of expenditure at any time.

The production function uphold quality control at Philip Markham ands each team cutters, machinists and finishers is responsible for ensuring that quality is right at every stage of the process. Production is responsible for obtaining the best quality fabrics at the best prices and making sure all raw materials are delivered on time

Human resources relates to these aims because their function is to recruit and train staff to meet all customer needs in relation to providing a service. The function incorporates company policy to treat employees fairly and equally in all aspects relating to their employment. A content workforce will achieve a friendly atmosphere and staff are keen to help consumers as well as each other.