(To be completed by student while submitting the assessment and by the faculty when
reporting the outcome of the students work)
SECTION A: TO BE FILLED BY THE STUDENT
Project 2
5/1/2015
Learning
Outcome
Feedback
L04. Human
Resources
Planning
Yes /No
Yes /No
Yes /No
Yes/ No
Yes/ No
development
of workforce
skills
( )Distinction
( )Merit
( )Pass
( )Repeat
Date Issued :
Declaration
I declare that the assignment here submitted is original except for source material
explicitly acknowledged, the piece of work, or a part of the piece of work has not
been submitted for more than one purpose. I certify that the work submitted for this
assignment is my own and research sources are fully acknowledged.
Date: 30/12/2014
Acknowledgement
I am using this opportunity to express my gratitude to everyone who supported me
throughout the course of this SHRM project. I am thankful for their aspiring guidance,
invaluably constructive criticism and friendly advice during the project work. I
express my warm thanks to my faculty Ms. Heena Bulchandani for the support and
guidance and all the people who provided me with the facilities being required and
conductive conditions for my SHRM assignment.
Assignment 2 SHRM
Case study 1
1. What is the main purpose/role of workforce planning at British Gas?
Workforce planning-Workforce planning is a set of procedures that an organization can
implement to maintain the most efficient employee/management team possible, maximizing
profits and ensuring long-term success. Workforce planning falls into two broad categories:
Operational
Strategic
Operational workforce planning functions on a person-to-person level and streamlines
employee-related operations day by day. Examples include:
Identifying functional needs and hiring new workers to meet those needs
Strategic workforce planning deals with broad-based issues that evolve over months and
years and can encompass all the aspects of an enterprise. Examples include:
Implement strategies
1. Understand the business strategy-The first step in the strategic workforce planning
process is to have a clear understanding of the business strategy. As British gas want
to grow more and more in the competitive market it should be aware of their current
position and its vision so it will help the company to plan the strategic work force.
2. Understand the labour market- BG has to know what the market demands are? What
kinds of people are required and whether it will be easy for them to find that kind of
people in the market? That is the reason managers at BG conduct a programme of
forecasting to predict how much he UK market for domestic gas engineering service
will grow. This helps the company decide how many additional engineers it will need
in the future.BG makes detailed forecast of its demand for engineering for one year in
advance and makes more general estimates for a further two years into the future.
3. Understand the future talent demands- At British Gas, workforce requirements are
driven by two different demands. First, there are contract customers that have service
agreements with the company. Second, there are customers who call for one-off
assistance if they have a specific problem. Demand for both these services has grown.
In the last three or four years, the need for engineers has expanded accordingly. This
has meant that it has had to recruit more staff.
4. Assess the current talent inventory- Once the future demand is understood then the
amount of change needed, and the optimal timing of that change is clear. The
company should inventory the current talent pool. This will help to determine how to
eventually transition people into new roles. It will also give the company insight into
who won't fit into the new organization and help to create an exit plan.
5. Identify talent gaps and strategies to close them- After assessing the internal talent
inventory now BG must have a clear understanding of the new strategy, missing gaps
and must create tactics for closing the gaps. For example, BG Engineering skills need
to be constantly updated. Apart from regular formal training to close skill gaps to
ensure engineers stay up to date with technical matters, British Gas can alert
engineers about technical changes via field radio or text messaging also.
6. Implement your strategies- The last step is to run scenarios in order to understand
how the availability of these critical roles or segments impacts the rest of business
plan. Then determine how the workforce plan will be impact. Timing is important,
which is why we examined the labour market earlier in the process.
2.
Human resource planning is a proactive process used to identify the best way to allocate
resources and adapt to employment changes. In general, the purpose is to align employment
needs and recruitment to the goals of the organization.
AdvantagesAnticipating future requirement:Through this process of HRP, the company is able to find out how many people will be
required in future. Based on this requirement the company could take further actions. This
method also helps the company to identify the number of jobs which will become vacant in
the near future. British gas mostly uses the following channels for advertisement of jobs
vacancy.
Specialist sky channel like parliamentary project TV, which focuses on careers.
Passion TV, which is aimed at the black community.
Print media etc.
British gas is a diverse and multinational company. Managing a successful large business it
needs good employees who have the right skills to achieve the companys aims and
objectives. This means it actively seeks new recruits from a wide range of background.
The need to recruit a diverse engineering workforce is seen as critical by British Gas. It plans
recruitment to ensure it has a socially inclusive workforce. This is important as it will enable
British Gas to reflect the diversity of its customer base.
Here are some of the action take into consideration while recruiting and selectingPlacement of personnel:Since the HRP process is conducted for the entire organization. Firstly, the company must
identify the requirements for each and every department. Based on the requirement, the
company can move their existing employees and place them on those jobs which are vacant.
Performance appraisal:HRP make performance appraisal more meaningful. Since feedback is provided in
performance appraisal and employee is informed about his future chances in same company,
in this way employees are motivated, becomes adaptable and perform better. Information for
all this is collected from HRP process.
Promotion opportunity:HRP identifies vacancies in the entire organization including all the branches of the company.
Therefore when the company implements promotion policy it can undertake its activities in
a very smooth manner.
Recruitment and selection at British Gas is driven by the need to maintain the competitive
position of the company within the energy market. Great care is also taken of future staff
needs. This drives the recruitment and selection process to ensure British Gas is seen as
offering dynamic and exciting career paths for people of all backgrounds. By developing and
nurturing its people, British Gas ensures that new recruits have the right qualities to help the
business to compete.
Training
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Successful HR planning includes training models and procedures. This training includes newhire training to teach new employees about the company culture, internal databases, software,
and the skill sets necessary for specific positions. The benefit of this type of training is that all
employees are taught the same thing in the same manner, which creates consistency and
accuracy in daily work. Other training models include information about new company
initiatives, new product roll outs, and career progression classes.
Staffing Efficiency
HR planning is especially useful in organizations that deal with cyclical business, constant
employee transition or turnover and variable workforce demand. With effective planning, the
companies increase its ability to have the right number of workers in the right locations and
jobs at any given point in time. Additionally, HR can spend time determining what skills and
experiences qualify a candidate for each particular job.
Talent Management
Talent management is a big part of an HR planning process. This involves mapping out the
employee needs for the organization based on strategic objectives. In the race for top talent,
companies that use HR planning know what they need from employees and what workers
expect in exchange for their abilities and performance, giving those businesses a talent
management advantage.
Disadvantage of HR planning
Costs
A primary drawback of an HR planning system is the costs. It typically takes more human
resources personnel or dedicated time to proactively plan for employment needs than to react
to situations as they come about. Additionally, HR planning is often managed through human
resources information systems. These programs aid in aligning talent to company job needs,
but require investing in the necessary software and hardware.
Overlooking the Need for Change
The HR department is committed to the plans it has made, the company may not be aware of
the unexpected coming. The needs could change, so the plan could change with the company
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needs and the market. For example, British Gas want to hire more technical skilled engineers
as it is expanding and to meet the customers demand. But the Market demand keeps on
fluctuating so might be other types of employees may be necessary in response to changing
industry practices.
Overlooking Industry Changes
No matter how well HR plans for training, still there will be competency gaps in workforce.
The disadvantage of a training plan is that it makes assumptions about skills that will be
needed. British Gas must keep a track of the competition and changes in industry to make
sure the skills the HR department has planned for are still relevant.
Too Much Planning
One of the risks of proactive planning is that the company may go too far and create worse
problems. In HR planning, the risk is that company overestimate staffing needs and end up
hiring more employees than required for production. This explains the attraction behind HR
involvement with strategic management. If company poorly defines the competencies
required for success in given jobs, it may end up aggressively pursuing employees and offer
strong compensation with little potential for effective performance.
3.
Discuss the factors that influence the techniques in forecasting demand and
supply.
Demand forecasting is the scientific and analytical estimation of demand for a product
(service) for a particular period of time. It is the process of determining how much of
what products are needed when and where.
Demand methods are divided into two categories:
1) Quantitative
2) Qualitative
Quantitative- involves the prediction of activity of particular firms, branded products,
commodities, markets, and industries. This method is much more reliable than
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macroeconomic methods because the dimensionality of factors is lower and often can easily
be incorporated into a model.
Quantitative Methods are:
TIME SERIES MODELS
-Trend analysis
-Moving averages methods
-Exponential smoothing
CASUAL MODELS
-Regressions models
Qualitative- involves the prediction of economic aggregates such as inflation,
unemployment, GDP growth, short-term interest rates, and trade flows. This method is very
difficult because of the complex interdependencies in the overall economic factors.
Qualitative Methods
-Survey of buyers intensions
-Experts opinion method
-Delphi method
-Market experimentation method
-Collective opinions method
Supply forecasting- Supply forecasting identifies future HR supply requirements is to
determine the number of employees required for each job and their knowledge, skills,
abilities, and other characteristics. HR supply forecasting is essential in determining the
characteristics of hiring sources within the predetermined planning horizon in order to
establish whether future HR supply is sufficient to match future HR demands.
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Managerial Judgment
Trend Analysis
Ratio Analysis
Delphi technique
Regression Analysis
Econometric Models
HR Budget and Planning Analysis
Job analysis
Managerial JudgmentThis technique is very simple. In this, managers sit together, discuss and arrive at a figure
which would be the future demand for labor. The technique may involve a bottom-to-top or
top-to-bottom approach.
Trend Analysis
Method which forecast employments requirements on the basis of some organizational index
and is one of the most commonly used approaches for projecting HR demand.
Business Factor Annual Volume of Sales. (N.U)
Total Number of Employees.
Compare the Productivity Ratio.
Calculate Human Resources demand.
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Regression AnalysisRegression analysis identifies the movement of two or more inter-related series. It is used to
measure the changes in a variable as a result of changes in other variables. Regression
analysis determines the relationship between Y variables such as the number of employees
and X variables such as service delivery by actually measuring the relationship that existed in
the past. Use of the method begins with a series of observation each costing of a value for the
Y variable plus a value for each X variable.
Econometric Models-An econometric model is one of the tools economists use to forecast
future developments in the economy. In the simplest terms, econometricians measure past
relationships among such variables as consumer spending, household income, tax rates,
interest rates, employment, and the like, and then try to forecast how changes in some
variables will affect the future course of others.
HR Budget and Planning AnalysisIt is a three-step process budgeting, planning and forecasting for determining and detailing an
organization's long- and short-term financial goals. It uses accumulated historical data to
predict financial outcomes for future months or years.
Job Analysis
Job analysis helps in finding out the abilities or skills required to do the jobs efficiently. A
detailed study of jobs is usually made to identify the qualification and experience required for
them.
Techniques for supply forecasting
There are several techniques for supply forecasting. Here are some of them.
Trend analysis
By examining the trends of the past, the HR department can predict the effect of the
same activity on the future of the organization, because it is assumed that these
patterns will remain stable. This method of forecasting assumes past trends and ratios
in employee movement stability to indicate future trends and ratios in employee
movement. This is the simplest methods of forecasting future HR supply.
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Competency Model
Competency model is a future-oriented model that first reviews competencies that are
aligned with an organizations mission, vision, and strategy, and then aims to identify
an ideal workforce in terms of these competencies. Skills/competency models focus
on matching the right skills or competencies needed for each job with the skills
available within the organization
Replacement chart
A chart used to estimate vacancies in higher level jobs and identify how potential HR
supply can fill these vacancies via internal movement from lower levels jobs. It
provides identification of potential replacements for vacancies within an organization.
Staffing table
A clear graphical view of all organizational jobs and the current number of employees
at each job.
Staffing tables are graphic representations of all organizational jobs, along with the
numbers of employees currently occupying those jobs and future (monthly or yearly)
employment requirements, which can be derived from demand forecasts.
Succession planning
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It determines the internal labour supply for a detailed analysis of how many people
are currently in various job categories or have specific skills within the organization.
The planner then modifies this analysis to reflect changes expected in the near future
as a result of retirements, promotions, transfers, voluntary turnover, and terminations.
Markov analysis
Markov Analysis is the statistical technique used in forecasting the future behavior of
a variable or system whose current state or behavior does not depend on its state or
behavior at any time in the past in other words, it is random.
This technique help to predict internal employee movement from one year to another
by identifying percentages of employees, who remain in their jobs, get promoted or
demoted, transfer, and exit out of the organization. By tracking and predicting
employment movement within an organization, the Markov analysis allows for the
development of a transition matrix to forecast internal labour supply.
A transition matrix, or Markov matrix, can be used to model the internal flow of
human resources. These matrices simply show as possibilities the average rate of
historical movement from one job to another. It determines probabilities of job
incumbents remaining in their jobs for the forecasting period.
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1. Organization's environment
If the BG is operating in fairly stable environments then it may be able to quantify the
expected values of variables in their models, which means they can use statistical
forecasting models. Conversely, for firms operating in unstable environments,
quantitatively based predictions are likely to be highly tentative, since both the
variables and their expected values are difficult to specify accurately by historical
data so they should use different model.
2. Organization size
Some of the larger organizations tend to use more sophisticated, quantitative
techniques than do smaller ones. This relationship is particularly strong among
government, mining, forestry, transportation, communications, and utilities.
Organizations that traditionally have had high internal stability due to low turnover
among their employees.
3. Labour markets and economy uncertainty
In particular, more sophisticated techniques will be discontinued if perceived
uncertainty increases to a point where techniques are no longer feasible, or if
perceived uncertainty decreases to a point where techniques are no longer needed.
4. Competition
It also depends on the level of competition in the market. If the organization operate
within predictable product markets may use a technique which may be different than
other organization that does not operate in predictable product market.
Case study 2
1. Give the hotels stated employees preferences, what recruiting sources
would you suggest they use? And why?
Recruitment Process- A Recruitment Process is an organization-specific model of how the
sourcing of new employees is undertaken. Typically the ownership of the recruitment process
resides within the Human Resources function; it differs depending on the specific
organizational structure.
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Suggestion- I would suggest hotel the use the external source because it
1.
2.
3.
4.
5.
6.
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A job profile should states the necessary and desirable criteria for selection. Increasingly such
specifications are based on a set of competencies identified as necessary for the performance
of the job. Include:
External methods: There are many options available for generating interest from individuals
outside the organisation.
Online recruitment
Press advertising
Networking
Open days
Advertising remains the most common means of attracting and recruiting. Advertisements
should be clear and indicate the:
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There are two main formats in which applications are likely to be received: the curriculum
vitae (CV) or application form. It is possible that these could be submitted either on paper or
electronically and the use of e-applications (Internet, intranet and email) is now part of
mainstream recruitment practices
.
5. Selecting candidates
Selecting candidates involves two main processes: short listing and assessing applicants to
decide who should be made a job offer.
Short listing
The process of short listing involves selecting those candidates which the company wish to
take forward to the more detailed assessment phase of the selection process.
Each application can then be rated according to these standards, or a simple scoring system
can be used.
Assessment
A range of different methods can be used to assess candidates. These vary in their reliability
as a predictor of performance in the job and in their ease and expense to administer. Typical
methods include:
General interview
Competency based interview
Role play
Presentation
6. Making the appointment
Before making an offer of employment, employers have responsibility for checking that
applicants criminal records.
Contract
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Offers of employment should always be made in writing. But it is important to be aware that
an oral offer of employment made in an interview is as legally binding as a letter to the
candidate.
References
A recruitment policy should state clearly how references will be used.
Medical examinations
It is reasonable to require completion of a health questionnaire where good health is relevant
to the job. Any particular physical or medical requirement should be made clear in the job
advertisement or other recruitment literature.
7.
Induction
Induction is a critical part of the recruitment process, for both employer and new employee.
An induction plan should include:
Job Advertisement
Title- Customer service representative (CSR)
Company-Etisalat is a telecommunication company. It has it headquarter is in Abu Dhabi,
United Arab Emirates. Etisalat deals with products and services and they have customer
oriented policy.
JOB DESCRIPTION:
1. Interacting with the customers to provide information in response to inquiries.
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Organizations can use some or all of the metrics to measure against depending on their needs
and the driving focus behind recruitment strategy. Four common metrics include:
Cost Per Hire - (Advertising costs + Consultancy Fees + Total Interview Costs/ Total Hires)
Cost per hire measures how much a company is spending on hiring individuals. It helps
organizations to understand how much they are currently spending and if they are using
enough resources.
It measures the effectiveness of recruitment efforts and helps organizations to understand how
much they are spending per hire and which recruiting sources are working the best. Once the
total cost per hire is known organization can then plan and set a budget for the future.
Time to Fill (Total Days to Fill/ Total Hires)
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Time to fill analyses the average time it takes to fill a vacancy and uses this to measure the
efficiency of the recruitment process.
The rationale here is that vacant positions cost money and the faster a position is filled the
better the organization is being served.
Quality of Hire - (Average performance score of headcount within 0-1 years of
services/Average performance rating of total headcount [exc. temp staff)
Tracking performance of new hires against other employees in similar positions, quality of
hire helps to set performance benchmarks and measures the return on investment. Reviewing
performance also identifies training needs and development pathways for employees.
Offer Acceptance Rate- (offers accepted / offers extended)
This ratio helps to measure and tell HR something about how productive recruitment system
is, but also may show the competitiveness of HR systems as a whole. Also called as "hit rate"
Satisfaction Index
I believe that in order to add value to the bottom line, HR must conduct satisfaction surveys,
analyze the results and take action towards it. Satisfaction from the recruitment activities must
be followed on a yearly basis.
References:
www.google.ae
www.scribd.com
www.slideshare.net
www.britishoilgas.com
www.ukessay.com
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