Human Resource Planning Involves Forecasting Business Essays

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

It involves the development of strategies for matching the size and skills of the workforce to organizational needs. Human resource planning assists organizations to recruit, retain, and optimize the deployment of the personnel needed to meet business objectives and to respond to changes in the external environment. The process involves carrying out an analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This also includes the development of training and retraining strategies.

OBJECTIVES OF HUMAN RESOURCE PLANNING:

Following are the main objectives considered while carrying out human resource planning:

To recruit sufficient number of skilled employees who can contribute in achieving organizational goals.

To make the best use of the available human resource.

To ensure employee satisfaction and developing of their skills.

To forecast the human resource requirements and to be able to meet them.

To ensure that employees are getting full chance to use their potential.

To keep monitoring and evaluating the human resource planning

PROCESS OF HUMAN RESOURCE PLANNING:

The following diagrams show the process of human resource planning:

Human Resource demand forecast

How many?

What kind?

When?

Where?

Human Resource supply forecast

Present supply

- Wastage

± Change in hours

± Change in availability of labor

Organizational Objectives

The Human Resource Plan

Recruitment

Redundancy

Training

Transfer

Promotion

Pay

Accommodation

Figure 1: Process of HRP

(Source: Jewell, 2002)

STEP 1: CHECK HUMAN RESOURCE DEMAND:

First of all the evaluation is to be made to determine the amount of human resource that is required so that this evaluation serves as an information for department's strategic objectives. In the evaluation all types of functions are considered such as:

Must be done functions

Newly introduced functions

Functions that are no longer operated

This step would entail the forecasted assessment of the departments. It would help the organization to determine their human resource needs.

STEP 2: CHECK HUMAN RESOURCE SUPPLY:

In step two the organization checks their current position of workforce. It analyzes the present resources such as; the internal HR supply, external HR supply, forecasted HR supply and the analyses of human resource utilization.

STEP 3: GAP ANALYSIS:

Step three involves analyzing any differences between the need and supply of human resources in the organization. It involves identification of gaps between the current work force of the organization and the required workforce in future.

STEP 4: HUMAN RESOURCE PLANNING:

Step four involves developing a strategy or plan to meet your human resource needs. The employers need to develop a plan to address the gap between existing human resource capacity and the future human resource requirements within the financial resources available. This should ideally take the form of a comprehensive human resource plan with various dimensions such as; organizational redesign, outsourcing, recruitment, training, promotion, redeployment, staff reductions etc. Not all of these elements might be required at a given point in time. Hence only the priority matters would then be incorporated into the plan.

STEP 5: MONIOTRING AND EVALUATION:

Step five involves monitoring and evaluation of the organization's progress on the implementation of the plan on an annual basis and taking corrective steps where necessary. Ensuring that they have an information system to provide them with information on how the strategy is operating in practice.

HUMAN RESOURCE PLANNING OF CYBERNET

Just like any other organization the objectives of HRP for CYBERNET is to forecast and plan for the acquisition, retention, utilization, improvement and disposal of the human resource of the organization.

CYBERNET does not have any proper HR department so they lack qualitative human resource planning. Although the planning is carried out because it is essential for any organization but it is not up to the mark because of the lack of HR professionals.

Following are different situation for which CYBERNET carries out different human resource planning.

Forecasting the work force for future and dealing with downsizing: In case of expanding its business, when CYBERNET decides to open a new branch at some location, so forecasting is carried out in order to know how much work force they would need for that specific branch. There is one HR employee at the head office; the employee after discussing the future requirements with the managers of different departments makes a report of the forecasted workforce; which is later considered while hiring. In addition, in order to determine that how many employees they need to hire or lay off, they consider their competitors strategies as well because they affect their business to a quite a great extent. For example; recently because their competitors are offering low prices so before CYBERNET considers to offer lower prices than it's competitors; the Business development department, Chief Technical Officer and COO at Karachi decided to decrease the number of work force because cutting off their prices would affect their revenue and with less revenue generation they can not afford to have a greater number of employees because it would increase their expenses. Therefore they merged two departments of customer support and formed one department. They terminated some employees and reduced the duration of working hours. Now the main call centre is at Karachi and the technical staff here is just required for paying visits to customer's home in case of some problem.

Now here lies the main flaw in the HRP conducted for this situation. As its quite obvious that they copied the strategy of Mobilink, Pizza Hut etc, as they also have one main call center now. But in case of Pizza Hut, it's simple because the customers just have to place an order, inquire about the menu or to the most has to complaint. Then in Mobilink; as telecommunication deals with voice data mostly so it is easy to solve the problem from one point but as far as CYBERNET is concerned, being an ISP it deals with data that has many complications and technicality. When the problem does not get solved on phone so then they transfer the call to Peshawar branch; now this procedure takes long and the customer has to explain and discuss his problem twice. Moreover the bounding between customers and employees gets weak. Now if they had carried out proper planning and if they had discussed it on regional level or if they had HR departments on regional level so they would have had better understanding of the situation and more suggestions to improve their plan.

Employee Turnover Rate: This year the employee turn over rate has been high as compared to other years and that is because of the lack of qualitative human resource planning. Seven employees have resigned just at the Peshawar branch. The COO of the company did not pay attention to employee satisfaction; he did not properly work on human resource planning for almost two years. Then after when he resigned because he had some business plans so new COO was hired. The company was facing loses and the new hired COO did not had a clear image of the situation, he took it at the lower management's part and terminated a number of employees. Now this uncertainty and lack of job security with dissatisfaction made the employees look for better opportunities. Four of them resigned because they had better opportunities to avail. Now this is also a weakness at the HRP side because if proper HRP was carried out with ensuring employee satisfaction so the experienced employees would have never turned over.

Technologically Competent Employees: Being an ISP company, one of the objectives of HRP is to hire technologically competent employees. For this purpose CYBERNET tries to recruit the best available employees and then train them in order to keep them up to dated. If they introduce some new technology then they properly plan to train their employees. In case any department has some problem in compatibility with the new technology so they train them as well. For example; when CYBERNET Peshawar branch was established, so the technical team here, dealing with all the networking were having problems in understanding the systems. Therefore CYBERNET gave them training of CCNA (Cisco Certified Network Association) and to reduce the training costs they trained them locally at some institution because if they had trained them at Karachi so it would have increased the expenses of training. On the other hand they do carry out expensive trainings while training their managers and incharges. Recently a training of two months was arranged for the managers which was for RS 1200, 0000/-. The only flaw it has is that when they arrange some training for a couple of departments, they invite two to three employees from every department and train them, then the employees invited further train the other employees at the branch, which results in quality training for some employees but for the others the guidance can lead anyway; resulting in misguidance.

To ensure employee satisfaction: One of the main objective of any organization's HRP is to ensure employee satisfaction because it is very important to give your employees job security and to keep them hooked to your company because when they spend time with you they get to know about the organizational structure and culture, they get trainings and their skill level improves with time and after all this, if the company does not offer them enough to keep them loyal to their company then they are losing something very important and are providing other companies with the experienced and skillful employees. As far as CYBERNET is concerned, as already mentioned above that the employee satisfaction level is very low from a couple of years. They are offering them low salaries and are not giving them other incentives besides a little cash. The whole organization structure is weak having no proper distribution of work and weak job descriptions. There are no proper promotions. In fact there is no increase in the salary of the old employees. Recently a new customer care executive was hired at the Islamabad branch; her salary was more as compared to the customer care executive officer at Peshawar, who has been working here from more than three years. Now it explains the level of demonization. Moreover there is no room for employees to use their potential for self recognition. Most of them do not have any role in decision making.

RECOMMENNDATIONS

Human beings are the most important asset of any organization. The functionality of all the processes require efficient, capable and effective workforce.

Following are the recommendations for CYBERNET to carry out their human resource planning in a better way:

The prediction of requirement and availability of the work force is considered an essential step in carrying out human resource planning for any organization. CYBERNET should do the forecasting keeping in mind the rapid technological changes that has been taking place and should spend their time in finding technically sound employees, which could be a source of competitive advantage for the organization. They should always look for hiring the quality work force and this can be done effectively by keeping contacts with universities because fresh candidates no matters they are not experienced but they show enthusiasm and commitment in their early jobs to built a platform for their career. So they can hire the fresh candidates and should train them to assist the HR professionals. Moreover the initial step should be the establishment of the HR departments on both head office and regional levels because without proper HR professionals, qualitative human resource planning is not possible; this is discussed in detail in the upcoming topics.

Recruitment and selection process has a pivotal role in making successful H R P policies. In case of CYBERNET before advertising any vacancy they should do proper job analysis which will lead to the development of an effective job description and job specification and will result in attracting potential talented candidates for the job.

They should practice performance management policies, different incentives scheme should be introduced e.g. if a department within the office shows outstanding performance in generating more revenue then the rest of the areas or has performed well in reducing the complaints in that area then should be given some special incentives and should be provided company's certificate for good performance because a company's certificate means a lot to any employee. They should give all of them some role in decision making and should give them chance to achieve their full potential. Moreover job security should be given top priority because if the employee feels being in an uncertain environment and does not feel being a part of that company so he can never perform well, so in order to make them contribute effectively and to fulfill their responsibilities CYBERNET needs to work on job security. In addition, the employees should be promoted and given more benefits and greater responsibility based on their efficiency and experience. All this which will help them in keeping their employees loyal and committed and as a result labor turnover will be low.

Proper training and development keeps an organization ready to face untoward situations and helps them in gaining competitive edge over its competitors. CYBERNET should review the performance of employees after every quarter for this purpose they should make the separate profile of each employee and their performance should be evaluated against the standard performance required for the success of the organization, this will help CYBERNET in finding out key areas for development for that particular employee and accordingly they can assess what his/her training needs are. Moreover in response to the case discussed above, they should invite all the employees for the training programs instead of inviting a couple of employees from every department because all of them deserve to improve and work on their skills and to get better training.

Organization environment and structure is considered as the most critical factor for the success of the organization. in case of CYBERNET the employees suggestions should be given due consideration while making the strategy this will make employee feel as a part of the organization and besides that flexible working hours and family friendly policies should also be introduced.

RECRUITMENT

Recruitment is the process of searching the candidates for employment and encouraging them to apply for jobs in the organization. Recruitment is the activity that links the organizations which are in need of an employee and the job seekers. It is the function preceding the selection, which helps create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process.

PROCESS OF RECRUITMENT:

The recruitment process begins when the human resource department starts receiving requisitions for recruitment from any department of the organization.

The general steps involved in recruiting process are as follows:

Identification of the vacancy.

Preparation of job description and person specification.

Advertising of the vacancy.

Managing the response.

Short-listing.

Arranging interviews of the short listed recruits.

Conducting interviews.

SOURCES OF RECUITMENT:

There are mainly two sources of recruitment:

Internal Recruitment: This is done by filling job vacancies from within the business, by selecting existing employees rather than employing from outside.

External Recruitment: This refers to the filling of job vacancies from outside the business.

The internal sources include:

TRANSFERS: The employees are transferred from one department to another, according to the requirement.

PROMOTIONS: The employees are promoted and given more benefits and greater responsibility based on efficiency and experience.

UPGRADING AND DEMOTION: Upgrading and demotion of present employees according to their performance.

RETIRED & RETENCHED EMPLOYEES: These employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruiting such people save time and costs of the organization because the people are already aware of the organizational culture and the policies and procedures.

DEPENDENTS/RELATIVES OF DECEASED/DISABLED EMPLOYEES: The relatives of deceased/disabled employees are also recruited by many companies so that the members of the family do not become dependent on the mercy of others.

The external sources include:

PRESS ADVERTISEMENTS: Advertisements of the vacancy in newspapers are widely used as a source of recruitment. The main advantage of this method is that it has a wide reach.

EDUCATIONAL INSTITUTES: Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc.

PLACEMENT AGENCIES: Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing).

EMPLOYMENT EXCHANGES: Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

UNSOLICITED APPLICANTS: Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization.

EMPLOYEE REFERRALS / RECOMMENDATIONS: Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization.

(ROWC, Date Accessed 14/05/2008)

RECRUITMENT PROCESS OF CYBERNET

As the organization under study is the Peshawar branch of CYBERNET. So the recruitment and selection procedure discussed below is the one practiced at branch level.

The following figure briefly shows the recruitment process of CYBERNET at branch level:

Identification of the Post

Advertise

Internal Checking for potential employees

Requisition sending for the required number of employees

Employee's position requisition form to be filled

Form sent to Head office

Yes

No

Figure-2 : Recruitment Process of CYBERNET

The in charge of each department is responsible for identifying the vacancy at his department. After identification, the in charge of that department informs the branch in charge.

First of all the in charge looks for internal recruitment and checks if there is any potential employee who can fit in the new criteria.

If they find the required employee, the employee is asked to fill the "position requisition form", which is then sent to the Administration manager in Karachi Head Office who further passes it on to COO. See Annexure "D" for the position requisition form.

In case they do not find any potential candidate within the organization so then the branch in charge sends requisition to Head of the department in Karachi.

Head of the Department discusses it with the General Manager.

After getting approval from General Manager, the Head Of the Department and the in charge discusses the job description which has to be advertised in the newspapers. In the job description the job position and specifications are mentioned.

If the employee is required in one location only, so then it is advertised locally and on brightspyse.com and if the employee is required in every branch all over the Pakistan then they advertise nationally in DAWN newspaper, Express News paper and brightspyse.com

The resumes are submitted at Peshawar branch for the local post in this region.

The in charge of the department and branch manages the response.

SELECTION

Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. The main objective of selection is to choose the right person for the vacant job.

The general process of selection is as follows:

Checking each applicant against the criteria given in the job advertisement.

Short listing of Applicants

Notifying Short listed Applicants

Conducting Interviews

Verifying Credentials

Ranking Applicants

Reference Checking

Writing Selection Report

Follow-up procedure for candidates who successfully completed the selection procedure.

Negotiation of terms and conditions of the job.

Formulate up a contract or written conditions of jobs.

Plan initial orientation for the new employees.

Reviewing the un-interviewed possible and marginal list of candidates and putting the potential candidates on hold for future.

Informing the unsuccessful applicants.

(BTEC HRM, 2001)

SELECTION PROCEDURE OF CYBERNET

The following figure shows the selection procedure at branch level for both internal and external recruitment.

Selection Procedure for External Recruiting

Selection Procedure for

Internal Recruiting

NOo

Figure-3: Selection Procedure of CYBERNET

In case of internal recruitment, the form sent to Administration Manager is checked and discussed with HOD, then after approval, the managers interviews the chosen employee and lastly signs a contract.

But in case of external recruitment; an interview call is sent to all the applicants.

Regional manager and In charge of the branch conduct a screening interview after which short listing is done.

In all the interviews, the interview data is recorded, and different factors are rated as excellent, good, fair, poor and unobserved. The skills measured are as follows:

General Appearance

Relevant Experience

Verbal Communication

Relevant Job Skills

Enthusiasm/ Energy

Attitude/ Compatibility

Stress Tolerance

Computer Skills

Lastly an overall summary is written, mentioning whether the employee is acceptable or not.

Then after selecting the potential candidates, the HOD from Karachi comes to Peshawar to conduct the final interviews and if the HOD is unable to come then the selected applicants are requested to go to Islamabad branch for the conduction of interview with HOD through video conferencing because video conferencing facility is so far not available at the Peshawar branch.

After conducting the final interviews. HOD, Regional Manager and In charge of the branch selects the employee on mutual consensus.

The employee is then taken for three months probation and if he performs well then a contract or the required agreement is signed.

EVALUATION OF THE CURRENT RECRUITMENT

AND SELECTION PROCUDURE

The current recruitment and selection procedure has the following flaws:

Time Consuming: The current procedures that CYBERNET has adopted are time consuming because there are a lot of different people involved in selecting the employee and then the involvement and interviewing of employees from the Karachi head office makes it even more time consuming. Moreover because these employees who handle the recruitment and selection procedures are not from an HR department, they have different posts and several responsibilities, therefore it takes them a bit long to spare some time for these procedures as it is not a part of their job description.

Lack of qualitative/ quantitative recruitment: As there is no proper HR department even on the head office level so there so no experienced HR manager and as the employees who recruit and select are also not experienced in the HR field therefore it's hard to ensure qualitative and quantitative recruitment. Moreover, as there is no HR department so the selection of the top level management is not as qualitative as it can be in the presence of HR experts. Therefore the applicants that they select might not be as competent as compared to the current labor market.

Lack of equal opportunity to employees: In the current internal recruitment process, the management selects the deserving employee themselves, which discourages the other employees and deprive them of getting equal opportunity.

No utilization of all the available resources: In the current recruitment procedure the employers do not utilize all the resources that they have, they do not utilize the CVs submitted online on their website, nor do they keep track of previous CVs submitted for some other post.

RECOMMENDATIONS

Establishment of HR department:

It's very essential to establish an HR Department at the head office; having an HR manager, one HR Assistant and the clerical staff because this would help them handle the recruitment, selection, job evaluation, appraisal and firing of employees easily and in an organized way.

Human Resource Regional Managers:

In addition to establishing an HR department at the head office, they should also appoint HR RMs in every region. There should be a small HR department in every region; having one HR manager and some clerical staff. Moreover they should be given enough authority to manage the hiring and firing at regional level. This would not only result in qualitative recruitment but would also be time saving. Moreover the job evaluation would be carried out easily and accurately.

Furthermore, all the line managers should report regularly to the head office in order to keep track of the records and to communicate the results.

Outsourcing Recruitment:

Head hunting is very essential for any organization. After establishing an HR department the HR management should focus on the strategic dimensions of their function and should outsource functions that need expertise, experience, knowledge and best methods and practices. They should transfer some part of the recruitment process to an external consultant providing recruitment services. The entry level job/ lower management and some part of the middle management should be recruited by the organization's HR management, where as the Consecutive level jobs should be handled through outsourcing; such as; recruiting and selecting CEO, MD, GM, HOD, COO, RMs, HR manager etc.

With the experience and expertise of the third party, CYBERNET would be able to improve the quality of the recruits and the speed of the whole process. Also, outsourcing would enable the human resource professionals of CYBERNET to focus on the core and other HR and strategic issues. It would also give them a structured approach to the whole process of recruitment, with the ultimate power of decision making of recruiting with the organization itself. The portion of the recruitment cycle that should be outsourced range from preparing job descriptions to arranging interviews; the activities that consume almost 70 per cent of the time of the whole recruitment process. The results would not only be fruitful but the HR management would also get time to focus on other things like; retention, job evaluation etc.

Advertising:

CYBERNET should properly advertise within the organization instead of choosing the employee by themselves. They should give equal chance to everyone and should not discourage the other employees. They should advertise both internally and externally at the same time so that they can get more choice in recruiting the best employee.

E- Recruiting:

They should also advertise online on their own website so that the job seekers can submit their resumes and applications. And they should also include those resumes while recruiting employees. Moreover they should keep track of previous resumes, which may have been submitted for some other job but were good enough to be considered again for a more appropriate job according to their skills mentioned

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.