Human Resources Management

Human resources management is using staff as a strategic resource to improve the business performance. This emphasis on recruiting staff needs, skills and training in order to get the best work force to meet the business objectives. The main purpose of human resources management in AJP is to ensure that it is used and develops employees.

Key area of human resources management

. Manpower planning: this identifies needs where skills are needed from hiring to firing.

2. Recruitment and selection: this insures business objectives are met and employ skilled and trained people who are suitable for the job. It also brings new ideas and values to the business.

3. Training and development: this allows new employees to settle down comfortably and quickly in order to start producing for the business, support employees in attempt to achieve personal goals.

4. Appraisals: this decides whether employee will receive pay rise or incentives.

How human resources department in AJP provide its services

Employment law is increasingly complex both in UK and EU level and the department assess and advise on the impact of such changes, making changes to their procedures and recommending policy changes to AJP leadership team and the corporation. They also look at and deal with other issues such as recruitment, employee relations' policy and procedural matters and any staffing related matters.

Introduction E1: E6

In this unit I'll produce an analytical report on AJP Ltd showing how the business manages its human resources. I'll provide a comprehensive overview of the human resources management showing its importance to the business, including all four of following functions:

. Human resources planning

2. Recruitment and selection

3. Training and development

4. Performance management

Human resource planning

Human resource planning encourages employer to develop clear links between their business plans and their Human resources plans. It gives employers effective control of number and cost of staff employed. Human resources can build a skill profile for each employee to work where most value to the company, creates a profile of staff for equal opportunity policy implementation. Ensures staff work is challenging, motivating and stimulating, ensures staff fully utilised for benefit of company and also ensures that staff are qualified to do their job.

Human resource is the most important resource in AJP Ltd and there is a direct connection between the quality of the workforce and commercial success. To succeed, AJP Ltd needs staffs that are committed to meeting its aims and objectives, equipped to do so by enough training and motivated by management to achieve their potential. It is the job of human resources management to recruit, develop and retain quality staff.

AJP Ltd needs to plan carefully to ensure that they have the right number of employees for their needs. In order to do this, AJP Ltd will need to understand:

* The long term aims of their business

* The sort of workforce they will need in order to achieve their aims and

* The labour market in the area in which they operate.

In order for AJP Ltd to decide on how best to achieve this workforce, they will need to look at the available supply of labour. This means being aware of

o The internal information, is the staff that they currently have including how many years of service they have left before retirement, how likely they are to leave, the skills they possess and their potential for acquiring new skills through re-training. In order to ensure that AJP have the right number of employee, they have to plan carefully. For AJP to do this, an understanding of the labour market in the area they operate is required.

o The external labour market from which new staff will be recruited, depending upon the type of work, the skills needed and the size of the business, they may be looking at the local market, the national labour market or even the international labour market.

Human resource planning attempts to anticipate demand for staff and match this to the supply. It is important to get this right because if AJP Ltd has too many staff it will be inefficient; if it has too few it will not be effective.

Human resource plan may consist of:

* Recruitment plan

* Training plan

* Redeployment plan

* Productivity plan

* Redundancy plan or retention plan

In order to create human resource plan, AJP Ltd will need a large amount of data. Some of this will be available internally and some externally.

Internal information available

* Labour turnover which include the rate at which people leave and are replaced, the average length of time staff stay with AJP Ltd, reasons for staff wastage

* Staff absence which include sickness and accident rates

* Ages of staff, skills and experience, training and qualifications

* Succession and promotion of staff

* Flexibility of staff that is whether they are on part time, full time, permanent or fixed term contracts.

Labour turnover is the total movement of employees in and out of an organisation. A high rate of turnover can be expensive because of recruitment, selection and selection training costs for new staff, efficiency costs caused by disruption that means it may take time for new staff to produce high quality work and leaving costs which means it may be necessary to make redundancy payments, pay notice periods or pay for holidays due.

Measuring labour turnover

Labour turnover or labour wastage rate is measured by the formula:

Wastage rate = Number of leavers in period

X 100

Average number of employees in the period

Average number of = (Employees at the start of period + Employees at end of period)

employees

2

labour turnover is normally calculated on a yearly basis. It may be used to measure the turnover of a whole organisation or of groups, or departments within an organisation.

Staff absence does not only include non-attendance but also bad time keeping, arriving late and leaving early; however the main reasons are genuine sickness and industrial accidents.

Age, skills, experience, training and qualification: the age of staff is important because

. older staff may have longer service, they will be more expensive to employ, their length of service may also make them more expensive to make redundant. They may be protected on contracts written some time ago which do not allow for flexibility but they are likely to have valuable experience and transferable skills.

2. younger staff may lack experience and need training but they may be willing to accept new ideas, it is cheaper to employ and can be engaged on flexible contracts of employment.

The age profile of staff is also important because it shows which staff will be retiring in the near future and therefore indicates natural wastage.

Succession and promotion of staff: succession refers to the process of grooming staff for promotion when their time comes.

Flexibility of staff is the speed of events together with growing competition in the business world. This means that AJP Ltd must be efficient and they must be able to respond quickly to change, which means they need a flexible workforce. Employees of AJP Ltd are expected to acquire new skills, adapt to different working methods and agree to changes in their contracts of employment affecting working hours, holidays, job security and so on. Employees will welcome some of this change as an opportunity, some as a threat and this need managing carefully and sympathetically.

AJP human resources department will need to look at the internal supply of the current labour force in order to produce a plan, this will involve looking at the following:

Age distribution: AJP human resources department will look at the age group of the current employees to see if there are older employees that will be retiring soon, then AJP will have to think of recruiting new employees to replace them.

Staff turnover: staff turnover will enable AJP to find out how many employees are leaving and why they are leaving. AJP have a low rate of staff turnover.

Availability skills: the human resources department will look at the skills available, to know if it will be used else where within the organisation.

Skills analysis: AJP the human resources department will carry out a skill analysis to see if the company have the right number of employee with the require skills. A skills inventory of current employee will indicate those who have received recent training and those who will require training.

External information available

AJP Ltd is affected by external factors, which are largely outside of their control. This is known as PESTL analysis because the factors to be considered come under five main headings, which are: Political, Economic, Social, Technological and Legal. All these factors will influence demand for AJP's products and its demand for labour. PESTL will also affect its ability to retain existing labour and its ability to recruit suitable new labour.

Political is the attitudes of the government of the day towards AJP. The government might be in favour of intervention in AJP business or deregulation, regional policy, consumer protection, supply-side policies and so on.

Economic is the likely trends in employment, inflation, interest rates and exchange rates.

Social is the demographic trends e.g. ageing population. Will AJP market change? Do they need a different recruitment policy?

Technological is the training needs, recruitment of skilled staff, reduction in staff through efficiency.

Legal is the laws passed by the UK and EU governments such as; competition law, employment law, industrial relations law, health and safety law, the level of National Insurance contributions etc.

Availability of labour and changes in labour market

If AJP human resources plan shows that labour will need to be recruited from outside the organisation then accurate labour market data is needed to provide details of the pool for external labour available. This data may include:

* number and occupations of people seeking work

* average rates of pay

* numbers of full time and part time workers

* supply of skills locally including the qualifications of school leavers and graduates entering the labour market

* the proportion of the labour force in different age ranges

* the gender and the ethnic mix of the labour force.

Local organisations will compete for the available labour so that skills shortages may not only present difficulties in recruitment but also pose the threat of losing existing skilled employees to competitors. AJP senior posts may be filled by poaching employees with proven ability from other firms. A firm of headhunters may be used to find out who is suitable and to make a tempting offer.

The external labour market

This is when AJP recruit new staffs. Depending on the type of work, skills needed and also because AJP is opening a new branch of their business at King Cross they may be looking at the local labour market, national labour market or even at the international labour market but AJP's external labour market should but made up of potential employees both locally, regionally and nationally.

Trends in size of the working population

One of the factors that will affect the human resources management of AJP is the change in age distribution of UK population. In order for AJP to meet their human resources requirement, the organisation has to look further a field when recruiting new employee. This may involve recruiting from another borough, town or abroad.

Competition for labour

Employee with specific qualification may be offered more attractive wages package than the other member of AJP staff because competition for recruiting this potential employee is high, which means AJP and its competitor R&D compete with each other by offering potential employees with rare qualifications and high wage packages. Most of AJP's competitors outsource their manufacturing operations to smaller firms with significantly lower cost structures. The average age of AJP's unionised workforce is 49 with 25 years of service.
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Overall level of economic activity

The demand for employee can be determine whether the economic is in a boom or recession period. If the employment rate is at low, the economy will be at high. This factor can be extremely difficult for AJP human resources planner to recruit the right employee with the correct skills.

Education and training opportunities

Young people tend to gain more qualification in order to advance higher paid occupation. Over the recent years the level of higher education opportunities has grown, while the level of skilled workers coming into the labour ...

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