Work study- This technique involves looking at no historical business trends or totally new business projects and processes are being planned.
Time series analysis coupled with productivity analysis- involves with the improvements in productivity over past years are factored into the calculations and projected to future years. Essentially it removes the assumption that the ratio of staff to work will remain constant over time.’’
Gallagher P, p26 (2000)
Forecasting Future internal supply of Human resources
This strategy has the number of involvement to analyse any deflects and surpluses. This strategy helps to identify overall internal staff turnover and any wastage of staffs within the organisation. There are two most useful methods of predicting staff turnover those are wastage analysis and stability analysis. Human resource planners use wastage analysis to calculate turnover as a percentage of total population.
Number of leavers in a specific period X 100
Average number employed in the same period
Stability analysis is used to utilise wastage rates more effectively. Most importantly this method helps to examines turnover from a different perspective such as concentrating on the proportion of human resources retained than on the last numbers lost.
Number of employees with x years’ service at a given date X 100
Number employed x years ago
Forecasting Future external supply of Human resources
External forecasting identify the gap exist between demand for staff and the internal supply within the organisation. This strategy indicates the demand for staff for evaluating external supply in terms of both quantity and quality. Most
labour market is locals therefore it is important for human resource planners to gather a number of key statistics including:
- Unemployment rate
- Skills levels
- Age profile
- Number of school leavers
- Proportion with Higher Education
- Population density
Businesses also operate in an external in which as well as competition from rivals businesses have to take account of political, economical, social and . This is also known as PESTLE analysis.
A PESTLE (Political, Economic, Social, Legal, Technological) analysis is often carried out by business planners which enables them to develop more informed strategies (i.e. long plans).
This involves the influential changes in the business made by the government . These are the facts that impact on other parties such as competition, new planning permission.
Economical factors
This involves with the changes in the wider economy. A growing economy provides greater opportunities for businesses to make profits, so businesses welcome rising living . These include things like expenditure in the business.
Social factors
This involves with the change in society and social structures. These changes occur in trends and attributes, consumers’ lifestyles and buying behaviour and the type of population.
This involves with providing new opportunities for businesses to adopt new breakthroughs, innovations, and inventions to cut costs and develop new products. The examples are using I.T skills, e-commerce, trained staff etc.
This involves with the changes in . Businesses must stay within laws and regulations to anticipate ways in which changes in laws will affect the way they must behave.
Environmental factors
This involves with the concerns and responsibilities that needs to be carried out in order to get safer environment. These environmental issues include recycling, outsourcing, and safer bags.
Question 2b- What aspects he might need to consider in order to grow the business?
In order to develop the business, Mr Will chase will need to devise a human resources plan. Mr Will chase has used good business strategy in order to achieve its objectives.
Mr Chase says: "We targeted shops like Harrods, Selfridges and Villandry, and they all took us on - partly, I think, because of the product and partly because of the story. The chips are not made on an industrial estate like other brands. Part of the magic is that the potatoes are actually grown on the farm where the chips are made."
Hirchkorn, J. 08.04.2008
Forecasting Future demand for Human resource
The company has now established not only with new chip flavours but by adding new vegetables- such as parsnips and beetroot to its product range. Mr Chase believes that the new fresh ideas are the key factors to company’s future success. This also demonstrates the good use of forecasting future demand for human resource planning. As the company’s chairman, Mr Chase has good ambitions of expanding its business; he will need to consider how human resource plan would actually help its business to achieve its goals and objectives. The human resource planning involves carrying out in the context of business plan and resourcing strategy. This means Tyrrells will need to attract and retain the number of people required with the appropriate skills, expertise and capabilities. The company would be needed to develop a well trained and flexible workforce thus contributing to the organisation’s ability to adapt an uncertain and changing environment. Tyrrells now employs 40 staffs, so the company must ensure that it improves the utilisation of its employees by introducing more flexible systems of work. Tyrrell’s new strategy is to produce vodka out of potatoes. The company plans to make vodka from potatoes grown on its farms but which are too small to turn into crisps. Tyrrells will need future forecasting demand for their new strategy. From people aspects, Tyrrells will need to know what they need to produce to make vodka chips. How many producers they would need?
Forecasting Future internal supply of Human resources
In regards to Tyrrells case, this strategy can be very useful. It would help Tyrrells to indicate the systematic approach to developing resourcing strategy, scenario planning, and demand and supply forecasting and labour turnover
analysis. The business strategic plan will help to define future activity levels and initiatives demanding skills.
Tyrrells chips also aims to diversify its product range into the related category such as cereals biscuits and muesli. Recently in 2004, they have launched their new root vegetables and apple flavour chips. By developing new flavours and higher value products, the business creates further opportunities for growth.
This segment will help the business to identify the analysis of its current resources. This involves internal supply of labour i.e staff turnover rate, age profile, skills profile and promotability.
This strategy identifies planning to achieve competitive advantage by developing intellectual capital. This would help Tyrrells by employing more capable and skilful people than rivals, ensuring the special knowledge and skills are developed and taking steps to become the employer of the year.
Forecasting Future external supply of Human resources
This strategy is useful for Tyrrells to identify its local labour target market.
‘’Tyrrells has a rationale for selling through such stores where they serve a cross-section of consumers, including the less price-sensitive ones, who use them for "top-up" purchases of smaller snack items.
With this strategy, Mr Chase aims to double sales each year. Yet he faces the challenge of expanding rapidly without devaluing his brand. One line of attack is to expand overseas, again targeting the best stores first.’’
Clegg, A. 10.04.2008
Mr Chase tends to supply its products to the best stores that have less-price sensitive consumers. The company uses price skimming strategy in order to achieve its business aims and objectives. Most labour markets are local, so it is crucial for Tyrrells to gather key statistics before they choose its staff in order to get good response. This strategy will help the business to identify how many externally staff needed, where are they going to come from and what location they would be situated in.
Forecasting Reponses to the forecasts
This strategy involves with considering the gap between supply and demand and thus the option to fill the gap. In regards to Tyrrells case, the response would be recruiting staff locally with most skills, age profile and low unemployment rate. It would also help to attract more labour staff by offering them high salaries.
Bibliography
Gallagher, P. (2000) Human Resource Planning, Kent, Scitech Educational. Ch 7-2 pp9-30.
Armstrong, M. (2006) A Handbook of Human Resource Management Practice, London, Philadelphia Kogan page. Ch 25, pp363-389.
Torrington, Hall and Taylor. (2008) Human Resource Management, Harlow, Financial Times Prentice Hall. Ch 3, pp78-90
Clegg, A. (2005) BUSINESS LIFE: Crisp profits at the potato farm (Assessed 10.04.2008)
Hirchkorn, J. (2004) Starting out (Assessed 08.04.2008)
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