Investopedia Describes Human Resorce Management Commerce Essay

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Investopedia, describes human resorce management as "the ongoing process of systematic planning to achieve optimum use of an organizations most valuable asset - its human resources". The objective of HR planning is to ensure the best fit between employees and jobs, while avoiding labour shortages or surpluses. The two key elements of the HR planning process are forecasting and analyzing labour demands, and balancing projected labor demand. 

The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business environment over the longer term. Human resource planning is a continuous process. This research will look in-depth at the cultural and legal environment that affects HR planning, the processes involved in recruitment an selection, training and development and compensation among other factors that surrounds Human resource planning.



Name of company: A1- cleaners and Janitorial Services.

Line of business: We specialize in innovative industrial cleaning of banks, restaurants, cooperate buildings, factories and schools among others.

Mission: To exceed customer's expectations by providing exceptional "A Grade" cleaning service that is affordable.

Goals: To become the preferred choice for cleaning and janitorial service in the local and international market base on an exceptional track record of punctual, affordable and quality service.

To exceed customer's expectations by providing knowledgeable workers to deliver the company's standard of service.

To be the most affordable and innovative cooperate cleaning service company, which utilizes technology in the cleaning process.

Task one: New location Challenges

Due to globalization the introduction of a new business to new and existing markets, in new locations, overseas or otherwise, has become far less complicated as before. However, there are various intercultural challenges that businesses may face, such as technology, government laws and regulations, climate, cost, other business competition, language and numerous cultural differences (beliefs, food norms etc.), and as such, In order for the company to deal with these challenges they would be advised to conduct a new location analysis. This analysis will look at the local environment and the challenges that may arise. This section focuses on how these challenges affect human resource.

Government laws and regulations

Assessing the legal environment in a new location is one of the most important duties the of human resource department. Government laws and regulation differ among countries and what might be legal at the parent company in U.S.A may be illegal at the new subsidiary in Jamaica. This will pose a challenge to HR because they will now have to formulate new regulatory terms and conditions that are in line with that of the new area. The review, assessing and formulation of safety and health measures, employment law and contract, compensation, wages and increases, among other legal woes of the Jamaican environment are some of the obligations that have to be met by the HR before any business can be conducted. Another challenge in getting this done is the fact that it may be costly and time consuming because access to information may be poor, thus making this a difficult task for the HR personnel.


Language may be a major barrier as often time the problem lies simply with translation. The official language of Jamaica is English, but the dialect; patios, is more widely used. The HR manager must be aware of this, so as to effectively facilitate communication. Communication is key, without which a business cannot effectively grow and the language barrier must be eroded for this to happen.

Cultural differences

Norms, values, food, music, the way of life of people defines their culture and this varies across the world. A company looking to open a new subsidiary in a new location must evaluate the local culture. This tells what behavior is acceptable. The challenge of this to HR is adapting, they will have to find ways to adapt to the local culture and plan events that facilitate and up hold the traditions of the society.


In every business environment there exist competitions that may brake or help to build a company. Local competition by previous cleaning companies might pose a challenge to the new subsidiary; however, the company should take a marketing orientation approach towards business ventures. With this approach the competition could be easily eliminated as the business will focus on what the mark needs rather than just providing a service. Through horizontal integration small competitors may also be accumulated.


If the local environment is not equipped with the technological advancement to facilitate business activities this may be a challenge. Technology as simple as the correct spray bottles for chemicals and protective gears for employees, and as complex as industrial cleaning machines and equipment to conduct business, may not be available in the local community, and the company will have to resort to sourcing these from overseas market, accumulating additional expense for the company. .

Task Two-Human Resource Plan

Methods to Forecast HR Requirements

"Many business owners prepare a business plan before starting their business. It is important to properly forecast employment needs. Just as failing to address potential threats in the marketplace can jeopardize the viability of your business, failing to anticipate personnel needs can impact on overall business success. The success of a business is directly linked to the performance of those who work for that business….." (sasknetwork, 2007). The HR plan must be tied to the overall business plan of the company .

There are several factors to consider when predicting human resources needs of a company. " the usual process is to forecast revenues and then, from that, estimate the size of the staff required to achieve, this sales volume………other factors such as projected turnover, decision to up-grade (or down grade) products or services, technological changes and the department's financial resources " are also used.

A-1 Cleaners and janitorial Services (new subsisdary) in forecasting it's personnel needs will use a combination of two methods trends analysis and scatter ploting. Trends analysis "means studying variations in your firm's employment levels over the last few year…..the purpuse is to identify trends that might continue in the furture." This will help the company to estimate the staffing needs, for example the trend in Jamaica is that there is an increasing number of women in the workforce. The company will use this to there advanatage to see how employing women, for various positions will increase sales or will be of an advantage to there company. Other current trends in the environment will also be analysed.

"A scatter plot show graphically how two variables-suach as measure of business activity such as sale, and your firm's staffing-are related. , If they are, then you can forecast the level of business activity, you should also be able to estimate your personnel requierments." (Dessler, Planning and Forecasting, 2008). This method will help to calculate approximately how much worker will be needed using the variable such as size, how large of a operation will the business conduct, to determine the amount of staff needed. A considerably small business will not need too much staff as they wont be able to pay them. A1- cleaners and Janitorial services will start as a small subsidiary employing and training a minimum of forty field workers and fifteen administrative staff, however it intends to grow base on cleaning contracts obtained and other partnerships built over time.

Diversify-branch out

Integrate horizontally

Compete via affordability

Company's Strategic Plan Functional Plan

Marketing and sales plan

Production plan

Financial plan

HR Plan

Human Resource Plan

Compensation plans

Labour relations, & security and security plans

Training and development

Recruitment and selection

Personnel planning and forecasting

Trends analysis

Scatter plotting


Labour laws

Safety rules


Attractive salary

Housing allowances

Performance base awards


Work shops

On the job training

Internal and external advertisement

Application forms



Reference checking

Legal Environment

Jamaican Labour Laws

In assessing the legal environment the company will have to look at the laws that govern employment, taking into consideration contracts, safety and security, benefits and overall human rights, example the right for fare wages, leaves and equality among others. Human resources, is the manpower which fuels any industry, and the laws governing such rights in Jamaica must be adhered to in order to conduct business.

Base on the CARICOM Model Harmonization act Regarding Termination Of Employment, (an act which also covers the Jamaican legal sphere) Part two: contracts of employment, section one: Type of employment and sub section two: Employment contract, states " Every person who employs another shall, not later that 14 days from the date on which the employment commences, prepare an employment contract in writing correctly describing the terms and conditions of employment that have been agreed upon by the employer and employee."

According to the Labour Regulations Code, part one section three, subsection one, states "In keeping with the need for management to be productive and responsive to workers and the society in general, good management practices and industrial relations policies which have the confidence of all must be one of management's major objectives." This is to caution employers of how to behave and how to treat workers.

Equality is another big topic in the Jamaican legal environment, and one that the HR manager must be aware of. The employment Act (Equal pay for men and women), section three: Payment Of Equal Pay For Equal Work, subsection one, states "From and after the 1st day of January, 1976, no employer shall, by failing to pay equal pay for equal work, discriminate between male and female employees employed by him in the same establishment in Jamaica" and subsection two: "Subject to subsection (4), any employer who contravenes the provisions of this section in respect of any employee shall be guilty of an offence, and shall be liable on summary conviction in a Resident Magistrate's Court in respect of each offence, to a fine not exceeding two hundred dollars or to imprisonment with or without hard labour for a term not exceeding twelve months and to an additional fine not exceeding twenty dollars for each day on which the offence is continued after conviction therefore. Section subsection two defines, equal pay to " mean a rate or a scale of remuneration for work, in which rate or scale there is no element of differentiation between male employees and female employees based on the sex of the employees;"

The law also speaks to employees right example, the Labour Regulation And Industrial Disputes Act, part two, section three subsection two affirm that , "Every worker shall, as between himself and his employer, have the right -

(a)    to be a member of such trade union as he may choose;

(b)    to take part, at any appropriate time, in the activity of any trade union of which he is a member.

4. (2)   Any person who -

(a)    prevents or deters a worker from exercising any of the rights conferred on him by subsection (1); or

(b)    dismisses, penalises or otherwise discriminates against a worker by reason of his exercising any such right, shall be guilty of an offence and shall be liable on summary conviction before a Resident Magistrate to a fine not exceeding two thousand dollars."

There are various other laws that regulates and constitute the legal environment of Jamaica and that will hamper the effective functioning of HR if not revise properly. Some laws are just for regulatory purposes while other are punishable by law.

Recruitment and Selection

"The aim of recruitment is to ensure that the organization's demand for employees is met by attracting potential employees (recruits) in a cost effective and timely manner. The aim of selection is to identify, from those coming forward, the individuals most likely to fulfill the requirements of the organization. Recruitment is concerned with assembling the raw materials, and selection is concerned with producing the right blend for the organization at a particular point" (Cole, 2004). Therefore, recruitment is the general collection of resumes and ptential skills set while selection is, taking the most suitable persons for the job, from those who were recruited.

"Recruitment policies constitute the code of conduct which the organisation is prepared to follow in its search for posible recruits…..some example of these are; In matters of recruitment this company will:

Advertise all vacancies internaly befor making use of external sources

Always advertise under the company name when advertising……" (Cole, 2004)

The researcher would also apply these approaches to to supply the new subsidary with staff, as a part of it overall strategy. This would give previous emplyees various options of taking a promotion, relocation (if disiered) among other advantages. The recruitment and selection strategy the researcher coined for this company is one that will take into consideration existing employees, new recruits, potential staff and those who will leave. Therefore, the new subsidiary will be first staffed by existing employees who are willing to relocate. They will have the chance of taking on managerial positions such as Human resource manager, administrative assistant, chair person ect. Other technical personell will be recruited on site at the new location from its labour market, predominantly by way of jod advertisment. advertising is an effective way of recruitment, its effectiveness may be judge by the number of responses. Advertising is an essential part of the recruitment process, and can tap into the labour market with attractive offers of employment. "the main source of job advertisment are: local news paper, national newspaper, technical/ professtional journal, via the internet, via job centers, via other angencies, posters…." (Cole G. , 2002). The add for the compnay will specify the job discription and that short listed persons with pervious knowledg of cleaning and equipment operations are to apply. This will lead to an easy selection process.

The selection process is the assessing and final acquisition of personnel from the recruited batch, the compamy will sort apllication, identify the most suitable aplicants, call them to fill out an official application form and for an interview, followed by an aptitude test, a second interview, a phisycal test (depending on the area applied for), wiill then be done. Refernces will be checked and leading up tho the final decsion of wheather to hire or not. Up on complesion of this they will be orientated for a week, teaching them the them what is expected of them, the standards of the company and its background. This process will lead directly to the training and development process.

Training and development

"training means giving new or present employees the skills they need to perform their jobs…… any case training is the hallmark of good manaegment" (Dessler, 2008). The vast use of technology in the cleaning company's line of business will requier for employees to be introduced to formal and technical training. They will need to become knowledgable of various chemicals and their purpose and how to operate various cleaning equipment. "The goal of training is is for employees to master the knowledge skills, and behaviours emphasised in training programs and to apply them to their daily-to-day activities" (etal, 2006) "The scope of training and development activities, as in most other activities in an organisation, depends on the poilicy and strategies of the organisation" (Cole, 2004). Development is the continual up grade or teaching of employees, it is an extended version of training.

A1 cleners and Janitorial service company intends to train new staff via the following procedures;

Needs analysis: "identify the specific job performance skills needed, assess the prospective trainees's skills and development specific, measurable knowledge and performance objective." This is where the company will look specifically at the numbers needed to fill carry out specific task in the company.

Instructional design: "decide on, compile, and produce the training program content". (Dessler, 2008). Here the compnay will plan workshops, lecturs or on the job training sessions to facilitate the easy pass-on knowledge or skills requierd by new employees. The technicallity involved with a cleaning job however, would requier a more hands on approach, such on-the-job training rather than lecturs ect.

Implementation: "the actual training the target employment group" (Dessler, 2008) whatever instructional design is formulated by the company it is implemeted via various means.

Evaluation: (Dessler, 2008) "management assesses the program'd success or failure". Was this training method effective?

The above training would be carried out by utalising existing employees from the parent company. The development of employees whould also follow ma simular process however is would be more strategic rather han operational.

Employment contract

"When a person is offered employment in return for wages and accepts the offer that is a contract of employment." (labour Board, 2010). A person employed by an organization is either employed under a contract of service, and is therefore an employee or under a contract for service and is then an independent contractor" (Cole G. , 2004). The former is the contract of employment and legally bind employees to the benifts and rule of an organisation. There are various types of employment contracts example, ongoing (permanent), Fixed Term, part-time and casual among others. A1 cleaners and janitorial service propose the use of an ongoing contract, this is one with no termination date specified, and meaning employment is maintained indefinitely. This can be in the form of an individual contract. This would be used to ensure that the company has a continuous and steady labour force. This contract facilitates continuity and termination would be dependent on breach of its term by the employee or employer, mutual agreement ect.

The company will also apply a part-time contract for workers who are not fully employed to the company but are paid for the hours they put in. A part time contract is one where the worker is paid wholly or partially by reference to the time that he works, and cannot be identified as a full-time worker when compared to other workers as the benefits and term differ greatly. This contract will be used for workers who will work only on weekends, three days per the week and for those who are contracted ect. This is also because of the anticipation that not at all times the company will be fully operational in terms of getting a steady supply of business.

Compensation and Reward system

"Employee compensation refers to all forms of payment going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (benefits like employer-paid insurance and vacation)" (Dessler, 2008). A combination of compensation strategies will be used by this company to facilitate all types and class of employees. A home-base salary plan will be used for previous employees, who are mostly in managerial position of the company and that will be transferred to the new location temporarily. While, a host base compensation plan will be used for those that will be permanently relocated. The home base salary plan is "an international transferee's base salary, that reflects his or her home country salary. The employer then adds allowances for cost of living differences-housing and schooling cost for instance. And the host-base salary plan is when the firm ties an international transferee's base salary to the host country's salary structure."

Managers will receive a steady salary. New employees will be compensated differently. These employees will get pay hourly, along with this the company will ensure that each worker, especially those out in the field, has health insurance benefits as they will be working with chemicals and highly advanced cleaning machines that may cause injury while on the job. Other benefits will include fuel vouchers for employees who drive and grocery vouchers for those who don't; this will be use as a motivational strategy. Additional reimbursement packages that are performance based will be awarded to employees who are recommended the most by the company's client. This will be used to keep employees continuously engaged in competitive, yet profitable activities that will benefit both the company and the employees.

Performance Evaluation methods

The work of employees may be judge in numerous ways. Management likewise employees, needs to know how well and at what level the job is being done. Performance evaluation provides employees with an opportunity to change methods and correct mistakes. Performance evaluation also known as performance appraisal may be conducted directly by the boss, by peer evaluations, self-appraisals, and even via from all daily contacts that an employee may have.

Many other methods exist, however, A1 cleaners and janitorial service will use an appraisal feedback form along with observation to evaluate workers. This is so because the company's business is cleaning and observation is one of the best ways to judge that a worker has done a good job. The appraisal feedback form will be completed by clients that the company serve, this will help to not only evaluate the employees but also help to give the company an idea of how satisfied the customers are and how to better pleases them.


Human resource planning is important and companies should adopt this strategy, it helps to formulate and plan techniques how to obtain manpower for an organization, how to deal with issues related to the labour force. Human resource planning is not universal as it facilitates cultural and legal differences and varies across the world.


human resorce management is "The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources". Human resource managaements invovles forcasting personnel needs, recruitment and selection, training and development, compesation plans, safety and security plans and assesing, adopting and obaying the labour regulations of an environment.

A1 cleners and janitorial service is an emerging compny that seeks to utalise effective HR planning that is aligned with its parent company''s startegic palns, to effectively staff it it self as a new subsidiary in a new location.