REPORT TO BOARD OF DIRECTORS OF PROFESSIONAL MANUFACTURING LTD
HR planning and strategic importance
Every time when we talk about running a company successfully the only question come into our mind, have we got the enough resources to support the strategic objective? As we all know that Professional Manufacturing looking for the expansion of its actual business and its simply straight forward that they also need manpower including other resources as well.
First a bit of clarification:
Human Resource Management is commonplace in larger companies. HRM focuses mainly on HR Research and Information Systems, Union/Labour Relations, Employee Assistance, and Employee Compensation/Benefits.
Human Resource Development, according to Chang, includes Career Development (helping individuals align their career planning), Organizational Development (helping groups initiate and manage change), and Training and Development (designing / developing, and delivering training to ensure people are equipped to do their jobs).
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Where the two tend to overlap are Selection and Staffing, Organizational/Job Design, Human Resource Planning, and Performance Management System.
What's important to note about HR overall is that too often it is omitted from participation in key strategic decisions. This mistake can be quite detrimental to effectively achieving strategic goals. Here are some reasons to include HR in the planning process (as well as in meetings of top management):
1. Selection and Staffing: When goals are set, its people who work to fulfil those goals. Having the right people in the right places is vital, and if new hiring is to occur, finding the right people is equally vital. HR folks are usually on top of the employee market, and decisions will be more effective if HR knows firsthand the clear direction of the company. They can immediately speak to any potential conflicts between what a company wants and what is truly realistic in HR terms, thus helping ensure the plans are workable right from the start.
2. Organizational Development: Strategic planning often encompasses change in workplace systems or processes. Although individual departments are likely aware of the status of their own departments, HR folks are often aware of group initiatives and changes that has occurred company-wide. Accordingly, they will be able to speak to OD issues with unique insights on how changes may impact systems and processes already in place.
3. Training & Development: Research shows that only 20% of the workforce has the skills that will be required ten years from now. That means training and development are guaranteed to be needed at some point of the strategic growth process. Again, HRD folks will be able to speak instantly to any issues, and possibly provide input that could help a company achieve its goals faster.
More reasons exits, but we'll stop there.
The main point is that HR is often thought of as the place to go for employee conflict, employee assistance, or compliance issues. But HR is much more than that, and top management would do themselves and their organizations well if they included HRM and HRD professionals in their strategic planning. There is nothing to lose by doing so, and plenty to gain.
Anticipation of HR:
Human Resource Activities
Different human resource activities should be integrated in order to enhance the value of human resources. Planning should help ensure the balance of all the human resource activities of the organisations. These sets of activities are based on the recruitment and selection of the right candidates, pay scale determinants, employee appraisal, and many more. Organisations that base their pay on performance don't necessarily perform better than those that don't, and organisations that select people very carefully don't necessarily perform better than those that select less.
Benefits of HRP
There are a lot of benefits associated with good human resource planning techniques. These benefits are primarily centred on the work quality or output and the general welfare of the workforce of the organisation. It helps in the proper distribution and assignment of jobs to the right personnel. It helps the organisation manage variations in staffing and recruitment. It also provides other relevant information about how the current human resources of the organisation are contributing to the successes or failures of key business processes.
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Milkovich and Boudreau (2002, p. 147) emphasizes the role of human resource planning in the framework of organisational competitiveness by finding new ways to increase the quality of human resources. According to them, sustainable competitive advantage derives from a resource-based view of organisations. Organisations influence the quality of the resources available to them and these resources do not necessarily move easily between organisations. A good human resource plan which cannot be easily copied sustains the competitiveness of organisations.
Steps in HRP
The entire human resource planning process can be defined in the following steps (Virtual University-Pakistan):
Determine the impact of organisational objectives on specific organizational units. By looking at the general objectives and how it affects the different entities and departments of the organisation, firms can start to identify the manpower concerns and needs in different departments and set their priorities.
Determine the skills required to meet objectives. Changing business processes influenced by technological advances require new sets of skills in order to fulfil some of the organisation's objectives. It is important to determine which skills are more appropriate for future HR expansions and utilisations.
Determine additional human resource requirements in light of current requirements. It is not only appropriate to determine the labour supply and demand. There are intangible requirements for today's diverse workforce. Workers demand new benefits and compensation packages. Businesses demand new sets of skills and commitments from their employees. Determining these requirements for the formulation of the HR plan needs to consider both sides of the labour relationship. Trade unions demand new provisions in their collective bargaining agreements.
Develop action plans to meet the anticipated HR needs. Should there be emergencies and unexpected disruptions, the HR plan should be able to provide the appropriate actions to meet these crises as they arise. Organisations in general are not complacent about events that might occur in the future. Workers should be able to provide the immediate needs of the organisation and the organisation should be able to provide the right remuneration packages to their workers.
Importance of HRP
There is little evidence to suggest that many organisations actually operate strategically rather than making resource decisions on an informal basis. They view the role of human resource functions within organisations as one of the most importance factors that influence certain strategies and decisions. They add that for human resource planning to be strategic, it need to take place within an organisation where human resource issues are seen as central to business strategy, which is closely related to issues to do with the status and power of the human resource functions within the organisation.
There has been a marked increase on emphasis on HRP in recent years. Recent global developments in the economic and political front calls for the need to adapt to new requirements in skills, labour costs, labour demands and supplies, and business practices. The liberalization of trade and globalization of businesses has been one of the key factors pushing for the need to concentrate on adapting the human resource management and policies to the needs and trends of the world economy. New technologies and how these are slowly being incorporated into the overall corporate plans of large and small organisations are changing the face of planning approaches at a rate where planning is no longer confined to traditional methods for achieving results.
Above is the planned journey in other words or is a taylor made strategic plan of HR for the Professional Manufacturing Ltd, the solution described above as a newly appointed HR Manager to help company plan for future and current anticipation of HR.
Organisational framework for recruitment:
These are those issue which can be a success for company or can be a disaster for a company so basically its depend on the HR management of organisation how effectively they manage, if we take a deep look into the Professional Manufacturing scenario the employee called Marry are getting paid less than the male employee and Marry is saying she is in a same role as her male workmate. As we can see it's a direct issue of sex discrimination, if Marry want she can actually take this issue in court and there is a potential for company to lose their reputation as well and respected client and their business as well. In order to make sure HR is planning all recruitment in line with policy of company and legal requirement, HR manager needs to make sure on a regular basis the company is adhering the policies which do not affect their going concern. So as a newly appointed HR manger there is a proposed system of selection and recruitment.
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Here are some legal requirement has to be followed by the Professional Manufacturing Ltd under any scenario to avoid the potential damages to the company name and business discussed below:
Recruitment and selection procedures must comply with the IPCC's Diversity Policy. This procedure incorporates compliance with the following legislation:
â€¢ The Sex Discrimination Act 1975
â€¢ The Race Relations Act 1976, along with the Race Relations Act 1976 (Amendment) Regulations 2003
â€¢ The Disability Discrimination Act 1995
â€¢ The Employment Equality (Sexual Orientation) Regulations 2003
â€¢ The Employment Equality (Religion or Belief) Regulations 2003
Additional legislation that requires observance during the recruitment and selection process is:
â€¢ The Asylum and Immigration Act 1996
â€¢ The Rehabilitation of Offenders Act 1974 (Exemptions Order 1975 and Amendment Orders 1986)
â€¢ The Data Protection Act 1998
RECRUITMENT AND SELECTION FRAMEWORK
OVERVIEW OF PROCESS
â€¢ Assess the need for the job and ensure there is adequate funding for it
â€¢ Review the job description to ensure that it meets the present and future requirements
â€¢ Review the person specification to ensure it meets the requirements of the job description
â€¢ Design the selection process
â€¢ Draft the advertisement and select the advertising media
â€¢ Short list using the person specification only
â€¢ Interview and test short-listed candidates
â€¢ Validate references, qualifications and security clearances
â€¢ Make appointment
Managers hold the responsibility for ensuring this framework is followed. HR is available for advice and will assist in general administration of the recruitment process.
Assessment of current requirement for HR:
Assessing current HR capacity of Professional Manufacturing Ltd
Based on the organization's strategic plan, the first step in the strategic HR planning process is to assess the current HR capacity of the organization. The knowledge, skills and abilities of your current staff need to be identified. This can be done by developing a skills inventory for each employee.
The skills inventory should go beyond the skills needed for the particular position. List all skills each employee has demonstrated. For example, recreational or volunteer activities may involve special skills that could be relevant to the organization. Education levels and certificates or additional training should also be included.
An employee's performance assessment form can be reviewed to determine if the person is ready and willing to take on more responsibility and to look at the employee's current development plans.
Forecasting HR requirements
The next step is to forecast HR needs for the future based on the strategic goals of the organization. Realistic forecasting of human resources involves estimating both demand and supply. Questions to be answered include:
How many staff will be required to achieve the strategic goals of the organization?
What jobs will need to be filled?
What skill sets will people need?
When forecasting demands for HR, you must also assess the challenges that you will have in meeting your staffing need based on the external environment.
How will the external environment impact on our HR needs?
The next step is to determine the gap between where your organization wants to be in the future and where you are now. The gap analysis includes identifying the number of staff and the skills and abilities required in the future in comparison to the current situation. You should also look at all your organization's HR management practices to identify practices that could be improved or new practices needed to support the organization's capacity to move forward. Questions to be answered include:
What new jobs will we need?
What new skills will be required?
Do our present employees have the required skills?
Are employees currently in positions that use their strengths?
Are current HR management practices adequate for future needs?
Culture and environmental effect on staff:
Organizational culture is possibly the most critical factor determining an organization's capacity, effectiveness, and longevity. It also contributes significantly to the organization's brand image and brand promise.
Change brings some concerns to staffs which are discussed below:
We have to understand the main reasons for the employee's resistance to change:
1. Self interest - They enjoy the workflow and position, and change threatens these.
2. Habit - The comfort of working the same way day after day has a certain appeal to people. Changes in personnel, workflow, structure, or technology threaten the continuation of pattern or set of habits.
3. Fear - Change introduces uncertainty and a degree of fear. People fear having to learn a new way or to become accustomed to a new leader, and possibly failing.
4. Peer pressure - Peers often apply pressure to resist change.
5. Bureaucratic inertia - A large business organization has a built-in resistance because of the traditional rules, policies and procedures. The refrain is "This is how we have done things for these few years". Bureaucracy, red tape and traditionally built-in way of conducting business are difficult to overcome.
Management should take some measures to reduce resistance to change, though it is hard to achieve 100% comfort for the employee in frequent changes:
1. Education and communication
Explaining the need or the logic of change to individuals, groups and even the entire organization.
This is commonly used when there is lack of information or inaccurate information and analysis.
Advantage is that once persuaded, people will often help implement the changes.
Disadvantage is that it can be very time consuming if many people are involved.
2. Participation and involvement
Asking members of organization to help design the change.
This is commonly used when the initiator does not have all the information they need to design the change and others have considerable power to resist.
Advantage is that people who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan.
Disadvantage is that it can be very time consuming if participants design an inappropriate change.
3. Facilitation and support
Offering retraining programs, time off, emotional support and understanding to people affected by the changes.
This is commonly used when people are resisting because of adjustment problems.
No other approach works as well with adjustment problems.
Disadvantage is that it can be very time consuming and expensive and still fail.
4. Negotiation and agreement
Negotiating with potential resisters; even soliciting written letters of understanding.
This is commonly used when some people or groups with considerable power to resist will clearly lose out in a change.
Sometimes this approach is a relatively easy way to avoid major resistance problems.
Disadvantage is that it can be too expensive if it alerts others to negotiate for compliance.
5. Manipulate and co-optation
Giving key persons a desirable role in designing or implementing change's process.
This is commonly used when other tactics do not work or are too expensive.
The advantage of this approach is that it can be a relatively quick and inexpensive solution to resistance problems.
Disadvantage can be that it leads to future problems if people feel manipulated.
6. Explicit and implicit coercion
Threatening job loss or transfer, lack of promotion, etc.
Speed is essential and the change initiators possess considerable power.
Advantage is that it is speedy and can overcome any kind of resistance.
Disadvantage is that it can be risky if it leaves people angry with the initiator.
To avoid or reduce the resistance, management shall always deliver the change message till the bottom line. And as an employee we shall hold the belief "Continuous improvement goes hand in hand with everything. It is everybody's role. It does not stop for anybody or anything". Continuous improvement means you are truly never satisfied with whatever level you reach. It absolutely never stops!
Working life and changing patterns of practices:
Working life and daily practices change according to the need of individual, their desire to succeed and most of all their interests in the relevant change so now we go to elaborate some issue which are actually practical concerns.
Your work culture is often interpreted differently by diverse employees. Other events in people's lives affect how they act and interact at work too. Although an organization has a common culture, each person may see that culture from a different perspective. Additionally, your employees' individual work experiences, departments, and teams may view the culture differently.
Your culture may be strong or weak. When your work culture is strong, most people in the group agree on the culture. When your work culture is weak, people do not agree on the culture. Sometimes a weak organizational culture can be the result of many subcultures, or the shared values, assumptions, and behaviours of a subset of the organization.
Grievance, dismissal and discipline policy of Professional Manufacturing:
We know from the scenario, the employee called Mary Jones, employed as a part time sales administrator has recently raised a grievance. Mary claims that her male colleagues in similar roles are paid higher salaries than her, and is claiming that this is indirect sex discrimination. In that case Professional Manufacturing should deal with this confidentiality to avoid the damages to the ethical position of company. HRM of company should try to consult with the Marry about this grievance and try their best to consult with some sort of external consultant who are actually in a position of giving unbiased advice. To look into this matter Professional manufacturing should follow the grievance procedure which is elaborated below:
Essential elements - the standard procedure
Below are the steps, which must be complied with when handling employee grievances and which must, as a minimum, be set out in the company grievance procedure:
Step one: statement of grievance
The employee must set out the grievance in writing and send it to the employer.
Step two: meeting
The employer must invite the employee to attend a meeting to discuss the grievance.
The meeting must not take place unless:
The employee has informed the employer in writing, of the grievance
The employer has had a reasonable opportunity to consider a response.
The employee must take all reasonable steps to attend the meeting.
The employer must inform the employee of his response to the grievance and notify him of the right to appeal against the decision if he is not satisfied with it.
Step three: appeal
If the employee wishes to appeal, he must inform the employer.
The employer must then invite him to attend a further meeting.
The employee must take all reasonable steps to attend the meeting.
After the appeal meeting, the employer must inform the employee of his final decision.
Disciplinary stages results in dismissal:
The disciplinary actions referred to dismissal are defined below:
a. Verbal counseling - When it appears that an employee understands the work and/or behavioral standards and still fails to perform work or to display conduct in accordance with acceptable standards, the employee's immediate supervisor should counsel with the employee to find out whether the employee understands the rules involved or the standards of work expected.
b. Written warning - If the problem continues after counseling, the supervisor is encouraged to have a more formal discussion confirmed by a letter to the employee, which details how performance or conduct has failed to meet standards and how work performance can be changed to meet acceptable standards.
c. Written reprimand - Like the written warning, the reprimand is a formal expression of disapproval written after repeated attempts to correct the employee's performance or conduct. If a reprimand letter is used, a copy should be sent to the Human Resources Department for the official files. The employee may also file a letter of comment in the official personnel file.
d. Written performance improvement plan - The performance plan is written as a means of corrective action to give the employee a time period to bring job performance up to acceptable standards. The time period can be anywhere from 30 to 90 days depending on the complexity of the job. Periodic work performance reviews can be conducted during and after the performance period to evaluate the employee's progress. A copy of the performance plan should be sent to the Human Resources Department for the official files. A performance plan is written to address performance issues and not conduct issues.
e. Suspension without pay - This is an ordered absence from duty without pay for a prescribed period of time. If misconduct has continued after disciplinary counseling or letters of unsatisfactory work performance, a suspension without pay may be imposed with the concurrence of. Generally, a suspension without pay may range from one to three days.
In some cases, and upon the concurrence of the Director of Human Resources, a vice president, the provost, or the President, administrative leave with pay may be imposed in situations to allow the supervisor time to respond immediately to a suspected but not fully substantiated offense while facts are gathered and corrective actions identified.
Dismissal and Termination of Employment
A supervisor may recommend dismissal of an employee for failure to meet and maintain satisfactory work performance standards or for failure to maintain suitable and acceptable standards of conduct. Concurrence of the Director of Human Resources and the appropriate vice president, the provost, or the president must be obtained prior to dismissing a classified, professional, or administrative employee. The vice presidents, the provost, and the president have the power and duty to approve the dismissal of employment of university personnel within their respective administrative areas of responsibility, in accordance with all applicable policies, rules, and regulations of the Board of Regents , and applicable state statutes, rules, and regulations.
It is recommended that dismissal normally be preceded by verbal counseling, written letters of unsatisfactory work performance, and written reprimands. Dismissal without prior warning may be justified for offenses that are severe enough or when the continuation of employment would be detrimental to normal departmental or organization as a whole.
ACAS and Employment Tribunal Role in grievance, discpline and dismissal:
PRINCIPLES OF REASONABLE BEHAVIOUR (drawn from the ACAS Code of Practice on Disciplinary and Grievance Procedures)
Procedures should be used to encourage employees to improve, where possible, rather than just as a way of imposing a punishment
You must inform the employee about the complaint against him or her; the employee should be given an opportunity to state his or her case before decisions are reached
The employee is entitled to be accompanied at disciplinary meetings
You should not take disciplinary action until the facts of the case have been established
You should never dismiss an employee for a first disciplinary offence, unless it is a case of gross misconduct
You should always give the employee an explanation for any disciplinary action taken and make sure the employee knows what improvement is expected
You must give the employee an opportunity to appeal
You should act consistently
Issues related employment tribunal and their participation:
The interpretation of employment law is moving in favour of the employee, and awards are increasing, so it is important to understand the system and the way tribunals operate.
If the grievance, disciplinary or dismissal procedures are not completed when the case goes to a tribunal the tribunal will decide whether that is the fault of the employee or employer. If it is the fault of the employer the compensation payable will be increased by at least 10% and possibly up to 50%. If it is the employee's fault the compensation will be decreased in the same way. If there is no award, there is no additional penalty.
Be aware that a tribunal can rule that a dismissal is unfair or that a grievance is justified even though you have stuck to the letter of the procedures. The tribunal must be satisfied that you acted reasonably in the circumstances (taking into account the size and resources of your organisation).
Under the whole situation covered by the task four, it's necessary for the Professional Manufacturing Ltd to adhere the policy and procedure related employees in the light of company law and tribunal defined policies, because it's easy to work within framework otherwise company would be end up paying fines and facing summons going against law.