Marchington and Wilkinson defined Human Resource Planning (HRP) as the process of matching future organisational requirements with the supply of properly qualified, committed and experienced staff in the right place at the right time. These staff can be drawn both from the internal and external labour market.
Human resource planning takes a long term view and works towards preparing an organization in coping with its future needs and achieves its strategic objectives
There are two approaches in looking at Human Resource Planning (HRP). One is the traditional approach where concern are more relating to the investigation and analysis, forecasting to demand and supply, developing action plans and evaluating its effectiveness. Whereas the contemporary approach composes of micro-planning, contingency planning, skills planning and soft human resources planning so as to ensure that organization are more adaptable to changes and uncertainty
The purpose of HRP is to ensure that organizations objectives are met through effective utilisation of human resources. HRP is an ongoing process that focuses on the long term changes in both the external and internal changes of an organization.
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Brown Goods Corporation, an electrical appliances manufacturing organization from US, decided to set up finance and accounting shared services centre for its Asian operations in Singapore. This move needs great analytical process and HRP is essential so as to ensure that the change is a well developed effort.
Opening up a finance and accounting shared service centre for Brown Goods Corporation is a strategic move to expand its businesses in the Asian region. However, Brown Goods Corporation needs to be cautious in analysing whether the opening of the service centre in Singapore is aligning with its business objectives and is benefiting the organization's future needs and expectations.
Staffing is a crucial process for every organization. Brown Goods Corporation needs to analyse the trend of Singapore's labour workforce before embarking on any recruitment drive. Singapore is a good location for businesses due to its good infrastructure, sound political environment and with supply of workforce that are relatively technological savvy. However HRP for Brown Goods Corporation need to discover whether Singaporeans are prepared to work for the organization. Human capital is an asset but it could also act as a threat if the wrong type of personnel is employed.
HRP involves the forecasting of the demand and supply of the labour market, thus Brown Goods Corporation need to ensure that employing 20 accounts assistant is a good number to cater support and creating an avenue of growth in the Asian region for the organization.
Training programmes are essential for any organization. By having a proper training programme laid out, Brown Goods Corporation will be able to mould its new recruited accounts assistant to integrate and have massive confidence in representing the organization. Likewise for the US managers who are going to work in Singapore. Well cut out plan needs to be made available so as to fabricate the managers and their family members to be integrated into Singapore culture.
The function of HRP includes increasing employee's satisfaction and involvement. This can be made possible by being more transparent in its plans for change. People have the need to know and have an understanding of the organization structure that they are supposed to work in (Drucker, 2001). In the case of Brown Goods Corporation, its human resource management should involve its senior managers who are going to contribute their effort in Singapore in its updates and decision making. By getting the key personnel involved in the process, it will create synergies of satisfaction from its staffs.
Data is a great way of looking at businesses' profit and loss. Data gathered can be used to evaluate the effectiveness and progress of the organization's human resource practises. HRP is a complex process involving many techniques. An organization must be clear, positive and open to feedbacks so as to adapt to changes and to grow in this fast changing economy. Proper HRP will go miles in reducing cost, improve overall business planning process, enhances employee's capabilities and allows an organization to anticipate key developments.
As there is creation of new jobs, Job oriented analysis will enable Brown to determine optimal work structure to support its strategic business objectives and employee's needs. It will allow Brown to identify job content (task, duties and responsibility), requirement (knowledge, skills, and abilities) and context (other supporting details) for the accounts assistant position in the shared service centre. After which, Brown can define employee's job responsibility and expertise to perform the job efficiently. All these will clearly establish guidelines for recruitment, selection, performance standards, training program and compensation/benefits etc.
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In order to save cost and increase efficiency, Brown should delegate a Job analyst to carry out job analysis by using Position Analysis Questionnaire (PAQ). PAQ will access the job's information source, processes, physical activities, people relationship, job context and other job characteristics. With the relevant analytical information, Job analyst can produce a consistent job specification and description write out.
Job Description is a written statement providing explanation of what a job holder does, details of how, where and when the work is performed. Job description must reflect clarity and simplicity; duties and responsibilities should reach a common understanding and acceptance. Below are some components of job description for Accounts Assistant which Brown's job analyst can adopt
Position: Accounts Assistant Job Code: ACC
Location: Singapore Reports to: CFO, U.S (Finance Manager)
Division: Singapore Written by: Isabelle Wong, Job Analyst
Department: Shared Service Centre (SSC) Date: 23 May 2010
Approved by: W.J. Smith, CFO, U.S (Finance Manager)
Job Objective: Under the functional guidance of the Finance Manager - Responsible for accounting functions of the company.
Duties and Responsibility:
Handles full-set of accounts.
Assist and report to Finance Manager in accounting matters.
Other admin responsibility delegated by Finance Manager.
Relationship: Reporting under Finance manager and relation with senior line managers within Asia operation.
Know How: Two years experience in handling full set accounts with LCCI or Diploma in Finance or Accounting. Candidates must have pleasant personality and meticulous. Have good communication skills, flexible and able to work in fast paced environment.
Problem Solving: Diverse Culture and economic development within the Asia operation create a tough business environment. Candidates need to be creative yet sensitive to Organisation's requirement.
Accountability/Authority: In charge of accounts for all Asia Operation under supervision of finance manager.
Special Circumstance: Successful candidates will be required to work overtime during month/quarter end closing. Able to adapt quickly to different culture and stressful working condition.
Performance Indicator: Performance expectation will be carried out by finance manager by the use of performance appraisal annually.
In order to prepare for selection process, Job analyst has to undergo a written report of the qualifications, skills and abilities needed to handle the necessary job scope. A sample job specification is as per follows
Position: Account Assistant Department: Shared Service Centre (SSC) Location: Singapore Division: Singapore
Job Code: ACC Date: 27 May 2010
Experience: At least two years relevant experience in handling full set accounts.
Qualifications: LCCI or Diploma in Finance or Accounting.
Skills, Abilities and Knowledge: Proficiency in MS Office Excel.
Knowledge in ACCPAC system.
Personal Qualities: Pleasant personality and meticulous in work attitude.
Flexible and able to work in fast paced environment.
Excellent English communication skills.
Special Requirement: Willing to work overtime.
Ideal Industrial Background/Position: Preferably from diverse environment background.
Remuneration: Salary range from SGD 2200 to 2600 with attractive benefits.
During Brown's recruitment process, an attractive induction program (also known as orientation) will attract potential talents. Without proper staff retention efforts, no selection and recruitment process will be successful. New employees need to be familiarised with their job requirement, colleagues and the organisation. This is to foster necessary competent skills to deal with their job scope and to develop a sense of belonging.
Employee Orientation helps to retain new employees by increasing the bond between them and the organisation leading to cost savings. A well planned orientation program which is conducted upon work commencement will help reduce anxieties, doubts and negative attitude. Studies have shown majority of labour turnover occurs in the first 6 months so orientation is necessary to increase work positivity, job satisfaction, commitment and to gain competitive advantage.
It is recommended for Brown to provide a standard induction program across its world wide organisations to save cost and inconvenience. In order to enjoy the full benefits, a comprehensive orientation program must be developed. Content should include Company's Overview, Health and Safety Guideline, Employee Relation matters, Job Description, Compensation/Benefits Clarification, Organisation Tour and Introduction session. Purpose is increase employment relationship, sense of belonging and establishment of performance benchmark.
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It is also recommended that Brown adopts the formal orientation which consists of involvement, presentation and training by senior management. At the final stage, a follow up interview must be carried out by Finance Manager and HR personnel to ensure effectiveness of the program. It will also serve to clarify any doubts and misunderstanding