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This report is based on Human Resource Planning of General Motors. This study includes the brief description regarding the importance of human resource planning that aligns itself with the business strategies to gain competitive advantage. Effects of Environment in General Motors on the staff, recruiting and selecting employees, dismissal and grievance processes and overall organizational culture works with the human resource planning. This planning makes sustainable goals. In short, without human resource planning an organization cannot survive.
HUMAN RESOURCE PLANNING
About Human Resource Planning
Human resource planning is a practice by which managers of the organizations ensure that they have right number of competent, proficient and skilled employees working at specific positions at the right time. Through this planning, the organizations can avoid losses and can deal with contingencies which will eventually result in profitability (Robbins and Coulter, 2006). In other words human resource planning helps organization to hire skilled and knowledgeable employees who can meet the needs of the organization in this competitive world. It helps in assessing the current needs of the organization as well as it meets the future needs of the organization (Beauregard and Fitzgerald, 1999).
Global overview on Human Resource Planning
Human resource planning has enabled human resource department to align with organization’s strategic goals and to achieve operational excellence. Now the organizations can also evaluate the employee performance and can deal with the employee performance issues in this dynamic market environment (Winter, 1999). By amalgamation of human resource plan with organizational goals, the organization can have a flexible, customized and integrated approach to deal with its workforce planning needs (Robert, 1997).
GENERAL MOTORS Human Resource Planning
The organization that has been selected for this assignment is General Motors. It is the largest automaker company in the world. It is a multinational company. It does business in more than 120 countries. GM employs 209,000 people in every major region of the world because of strategic human resource planning. GM is well aware of the environmental negative impacts so it works with the environment and makes its future plans and projects accordingly (General Motors, 2011).
Human resource planning in General Motors is a much emphasized area. They hire 209,000 people in every major region of the world. General Motors hire skilled, optimistic, engaged and competent employees who share innovative ideas and produce best vehicles. Due to human resource planning it keeps assessing and evaluating the employee performance and give growth opportunities to talented employees. General Motors gives extra benefits to its employees like medical plans and investment options because it knows how to decrease the turnover ratio and keep accelerating the employees for better performance in a competitive and dynamic environment. It knows that they have right number and kind of skilled and competent employees working at right positions at right time (General Motors, 2011).
This assignment is divided into five parts from A to F. Section A would discuss the brief introduction of human resource planning and its global overview, section B would discuss that how human resource plan of General Motors supports organization strategic objectives, section C would define the General Motors staffing process that what should be the legal frameworks for hiring the employees, section D is about the effects of General Motors organizational environment on staff, section E would define the General Motors grievance, dismissal and discipline process and lastly section F would discuss the conclusion and final impressions based on the analysis.
HR PLANS OF GENERAL MOTORS SUPPORTS ITS STRATEGIC OBJECTIVES
Because of new technology and strategies the environment is becoming more competitive so the General Motors have adopted different approach from traditional human resource practices to meet the strategic goals of the organization by selling human resource services to outside clients hence generating an additional income for the organization (Phillips, 1999).
(B.1) STRATEGIC SIGNIFICANCE OF CURRENT, FUTURE AND EXPECTED HR REQUIREMENTS
General Motors strategic capability
General Motors is one of the growing and profitable organizations in the world; its main tool for achieving long term goals is reward system that is giving incentives or bonuses to the employees. It gives growth opportunities to all the talented employees. The main business strategy for long term profitability is the development of senior executive talent. General Motors does not offer jobs, they offer career. These all human resource strategies have a major effect on individual performance and on long term profitability of an organization (Tichy, Fombrun and Devanna, 1981).
Its mission is to hire the competent, skilled and empowered employees who have a clear vision and ground-breaking ideas and who remain committed to work. Employees have a career in General Motors with valuable benefits (General Motors, 2011).
Putting together an HR strategy
General Motors collaborate with its competitors. Collaboration is a business strategy of GM to gain competitive advantage. This cooperation is a low cost method for new companies to gain knowledge about the market and technology. Because of collaboration the companies get “win-win” situation. General Motors make purchases of cars and components from Korea’s Daewoo. For the success of collaboration both the companies should have some valuable asset to share like development skills, basic research and so on (Hamel, Doz and Prahalad, 1988). Fuel Efficiency is another business strategy of General Motors; General Motors is trying to enhance fuel efficiency capabilities through its flex fueled cars (Norton, 2010). Cost Cutting is another business strategy of General Motors, as they are reducing its brands so it will save cost which will close the dealership and will ultimately result in cost reduction (Norton, 2010).
The collaboration business strategy is followed by human resource off shoring strategy. The occurrence of off shoring, supporting benefits and joint venture agreements are associated with how investors view a company in the profitability criteria. General Motors have turned to China and India as sources of employment to supplement their full time employees in the United States. Before going for competitive collaboration with other companies the organization must have an off shoring strategy (David, 2009).
The fuel efficiency strategy is followed by High Performance Work System strategy of human resource department. The main focus of High Performance Work System is on the organizing work so that all the employees can participate effectively in decision making which affects on the daily operations of the organization (Azrul, 2011). The workers can make their own decisions to accomplish their goal, which is the basic par of High Performance Work System the use of technology is another component of High Performance Work System (Azrul, 2011).
For cost cutting business strategy the human resource department following strategy is redundancy. If a manager of the company feels that cutback of an employee is necessary so he will straight away contact human resource department (Charles, 2001). General Motors used to have 22 layers of management but later on they learned to reduce the hierarchy levels of management and started promoting team work. Hiring and sourcing decisions are made by teams and the classification of jobs of GM has been reduced from 18 to 7 and workers are responsible for their own training (Swart, Mann and Price, 2005).
Strategic importance of HR requirements
Current HR requirements of General Motors are to reduce the dealerships because it has too large dealership network that is causing obstacles in its viability. In this way GM will be able to retain higher sales and service staff. GM present goals are as follows,
To enable the automakers and subsidies to develop competitive business that can decrease the adverse effects on the environment.
To increase the capability of the auto makers and subsidies to use efficient, aggressive and updated technology for producing vehicles.
To reshape and resize the dealership network.
To recruit the best talent.
To staff employees who can participate in product development and in increasing market share by using their competent skill (Barofsky, 2010).
Future HR requirements of General Motors are to stimulate sales by the use of diversified workers who can incorporate new technology, skills and ideas in this competitive world. General motors’ have always aligned its business strategies with the human resource strategies in order to be competent in this dynamic environment (Brockbank, 1999). In addition GM also focus on compensation strategy to motivate the workers and it will increase it sales by hiring competent workers (Muczyk, 1988).
(B.2) HR PLANNING IMPACTS ON STRATEFIC PLANS
General Motors business plan
GM plan is to make innovation style vehicle with top quality and fuel efficiency features. They carry out environmental friendly practices. GM by reconstructing and strengthening wants to expand in order to share their new and better General Motors not only in U.S but throughout the world (Norton, 2010).
General Motors HR planning process
Demand forecasting in General Motors works for product diversity and design efficiency which leads it to hold a strong position in market. It works in cooperation according to the demand of the people (Norton, 1997).
Supply forecasting is very important. General Motors may also hold back by its suppliers. In 1194 General Motors lost almost two months production of Buick Roadmaster because of late supply of doors and ashtrays (Cachon and Lariviere, 2001).
For Internal movements the managers of General Motors must recruit, hire, train, motivate and organize employees, and in the same way they should acquire and organize material resources for the manufacture of its cars and trucks. General Motors must beat back its competitors by marketing its vehicles. GM increases productivity by giving rewards to the workers (Simons, 1981).
General Motors components of HR plan
Training plans are provided by General Motors to their employees to boost their career and make them able to meet international flexibility (General Motors, 2011).
Growth plans at GM for talented, competent and skilled workers are as wide as the world. It gives the career exposure to the employees and takes them to next gear (General Motors, 2011).
Rewarding plans are on high scale in GM, along with the salary the employees will also get medical facilities as well as investment options (General Motors, 2011).
Promotional plans at GM includes disability benefits, life insurance of employees, it offers paid holidays annually, GM employees and their direct family members can purchase GM vehicles at a significant discount (General Motors, 2011).
Employee utilization plan at GM gives employees more responsibility and authority to make decisions and accomplish their goals accordingly and then hold them responsible (General Motors, 2011).
Impact of HR plan on strategic plan
High performance work system is a flexible and team based system, General Motors have work teams and performance based wages system (Rouse, 2000). By recruiting the talented and operative employees the General Motors can boost its productivity and profitability and can achieve its long term goals (Azrul, 2011). The compensation strategy that is giving rewards to the employees based on their job performance also helps organization to achieve long term goals (Muczyk, 1988).
ORGANIZATIONAL AND LEGAL FRAMEWORKS FOR THE EMPLOYMENT OF STAFF
(C.1) CURRENT LEGAL REQUIREMENTS INFUENCING HR PLAN
Fairness in recruitment and hiring
General Motors recruits on the basis of an employee’s own self interest area. At GM they are interested in an individual abilities and skills. They assess in a fair and accurate way each and every quality of an applicant in relation with the demands of the post. General Motors follows a behavioral based interview process, they evaluate the personal and professional competencies that individual possess which can be the success factor the open position (General Motors, 2011).
Fairness and protection during employment
GM is committed to creating a diverse workplace. They have a policy on equal employment opportunity and harassment. Harassment based on age factor, cast, ethnicity, color, gender, disability, gender identity/expression is a violation of this policy. Harassment is an offensive act which is strictly prohibited (General Motors, 2011).
Leaving the organization
In 2009, General Motors needed to re size the organization therefore dismissed the employees and decided to eliminate 10,000 salaried employees. It employed 243,000 salaried and hourly workers at the end of 2008 but in 2009 it plans to cut about 47,000 salaried and hourly jobs worldwide (LaReau, 2009).
(C.2) RECRUITMENT AND SELECTION OF NEW STAFF
Legal and organizational requirements
Organizations must hire “right ones” and reject “wrong ones”. As employees are the asset so you must choose asset rather than liability (Hacker, 1997). The organizations must have proper procedures for attracting the employees. Recruitment is about future predictions so while recruiting the company should hire a person whose interest and goals can be aligned with organization goals (Bach, 2005).
Planning how to find and attract candidates- recruitment is the process of hiring those people who can contribute to the organizational goals. First review of a company is necessary then analyzes the requirements. It is necessary for choosing the assets and differentiating the right fit and wrong fit. Attract candidates by giving job requirements plus benefits (Bach, 2005).
Defining requirements- it is necessary to define the requirements for job that what skills, knowledge, abilities, input, desired output and job context is needed (Bach, 2005).
Job description, person specifications and competencies- the next stage is job description which defines what is the job, purpose of job, what tasks are to be done, standards, duties, responsibilities, reporting relationships. It is all about the job itself. Then next stage is to examine a person specification that is the worker psychological characteristics (Bach, 2005).
Advertising the vacancy- the next step is to advertise the vacancy, this is a very creative task and needs lot of skills therefore many companies do outsourcing (give advertising work to advertise agencies). Newspaper, radio, television and e-advertising are the common sources (Bach, 2005). General Motors uses its own website for recruitment (General Motors, 2011).
Reviewing the effectiveness of recruitment- at the end the HR department evaluates the effectiveness of recruitment method by the response of individuals (Bach, 2005).
Sifting candidates- after recruitment the employer will filter the candidates who best matches with the job requirement (Bach, 2005).
Short-listing candidates- in this step employer choose the candidates who are reliable and competent (Bach, 2005).
Selection, interviewing and testing- many candidates are selected on the basis of their CV’s, their past experiences and achievements (Wingrove et al., 1984). Interviewing is done which is not a reliable method because some time the interviewer and interviewee views regarding jobs may differ (Bach, 2005).
Contract of employment- this contract is made between an organization and candidate. It includes job specifications, salary, benefits, time duration, working hours and other details (Bach, 2005).
Inducting new employees- the final step is of introducing the new worker to the organization (Bach, 2005).
GM ENVIRONMENTAL EFFECT ON STAFF
(D.1) GM CULTURAL EFFECTS ON RECRUITMENT AND RETENTION OF
The concept of organization culture is becoming common everywhere and its gaining attention from the practitioners and intellectual bodies (Schein and H., 1990)
Effect of organization culture on recruitment
General Motors culture is innovative and while recruiting innovation attracts people. At GM employees are encouraged to experiment and rewarded for experimenting new products in the market place (Rao, 2010).
Effect of organization culture on retention
In 1950 general Motors was operating plant in Fremont, California where Chevrolet car was assembled. At that time General Motors declared to leave the United Auto Workers in the upper Middle West and it will not be dealing with them by moving to west. This statement caused the conflicts in the corporation, thus in 1982 the plant was running at disastrous low level, 5000 complaints were filled every year, 21 daily and more than 2000 complaints were unresolved. Due to poor productivity GM collaborated with Toyota and in 1985 they opened plant again and this time due to change in organizational culture only 2 complaints were filled and resolved. The plant was generating profits because of quality, efficiency, productivity, team work and employees decision making authority and none employee left the job (Cameron and Quinn, 1999).
(D.2) ASSESSMENT OF WORK LIFE BALANCES ISSUES AND THE
CHANGING PATERNS OF WORK BEHAVIOUR
Work life balance issues
Flexible workers report low levels of stress and thus increase productivity (Eaton, 2003). Workers who take family tension along with work do not perform well and in the case of downsizing they are demoralized (Vries and Balazs, 1997).
Changing work practices
Firms that are flexible and allow the employees working from home have good work life balance. The firms that are family friendly who allows employees to take time off for children are highly productive. The companies should be friendly practiced, should give time off for the children, job switching should not be an issue and should give time to relax (Bloom, Reenan and Kretschmer, 2009).
GRIEVANCE, DISCIPLINE AND DISMISSAL PROCESS
(E.1) PROCESS FOLLOWED IN GRIEVANCE SITUATION
Employee informs grievance- complain is regarding work place problems and neglected staff.
Informal discussion- the employees is called for the meeting with the manager and manager asks questions what went wrong, what is the matter. In case of harassment the form is filled and sent to the vice chancellor.
Investigating the grievance- company investigates what went wrong and ask the employees.
Making a decision-if the vice chancellor identifies that the objection is frolicsome or out of time so he will stop further process. Normally review is made before 2 months.
Offering the right to appeal- the complainant may appeal. ( Thomas, 2001)
(E.2) STAGES OF DISCIPLINE ISSUES RESULT IN DISMISSAL
Dismissal- the employer dismisses the employees for bad conduct, improper work and inefficiency.
Investigation- the investigation is carried out by HR department that what went wrong, ask questions from other employees.
Meeting- a meeting is settled where employee has to answer.
Decision- the decision is taken whether to fire or not.
Right to appeal- the employee can appeal for the right decision (Thomas, 2001).
(E.3) ROLE OF ACAS
Role of ACAS in grievance, discipline and dismissal process
ACAS provides practical guidance to employers, workers and their representatives on: requirements relating to disciplinary and grievance issues; what constitutes reasonable behavior when dealing with disciplinary and grievance issues; Producing and using disciplinary and grievance procedures; and A worker’s right to bring an attendant to grievance and disciplinary hearings (ACAS R, 2006).
Role of employment tribunals in grievance, discipline and dismissal process
In 2001, the government launched the consultation document Routes to Resolution – its goal were a high skills and high productive economy, the fundamental principles of access to justice, fair and competent tribunals and a modern, user-friendly public service. It talks about the right of the individual and resolves dispute between employer and employee (ACAS, 2006).
Role of other external agencies in grievance, discipline and dismissal process
The Equality and Human Rights Commission works with organizations in the public, private and voluntary sectors to diminish discrimination and promote equal opportunities for all employees, customers and the users of services. Healthy and safety executive concerned with the employees safe conditions at work.
This research defines the human resource planning and the processes involved in it. General Motors is a multinational company which is ranked among 10 profitable countries. Human resource planning is essential because it deals with the business strategies and helps companies to attain long term goals.
Through human resource planning General Motors can align its business strategies with human resource strategies. It gives complete structure of staffing and hiring and issues related to jobs.
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