RUNNING HEADER: BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN

RESOURCE MANAGEMENT PLAN

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN
BUSINESS

PLAN

CONCEPT

DESCRIPTION

&

HUMAN

RESOURCE

MANAGEMENT PLAN
1. BUSINESS CONCEPT / DESCRIPTION
The objective of this report is to identify a business concept for being developed into a
business plan. In addition to the business concept, the report shall the detail a Human
Resource management plan for the said business concept as part of the business plan.

The business concept identified relates to a financial institution that shall cater to the
various financial services need for customers like investment advisory, investment
banking and deposit services. The services shall be offered over online as well as offline
platforms. The business intends to focus on few major cities and then later expand as per
the review of its performances, scope and experiences after one of year of its operations.
2. HUMAN RESOURCE MANAGEMENT PLAN
The human resource department is one of the critical support function of organization
and relevant and plays highly significant role at all times of an organizations evolution
and state. The chief responsibilities of the human resource function ranges as follows, (i)
sourcing and recruiting employees, (ii) Designing the review and interview process, (iii)
design of compensation model, (iv) consistently motivating and empowering the
employees, (v) training and development of employees, (vi) performance review and
performance appraisal design, implementation and periodical driving of the process,
(vi) Establish controls / processes and monitor compliance with all applicable labor,
work place, etc. statutory regulations and laws, (vii) Design and implement internal
policies and procedures, and (viii) Design, implement and setup appropriate
organizational structure for the entity.

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN
Broadly the Human Resource management plan shall be developed by classifying the
plan in to following heads, (i) Recruitment / Compensations / Related Process, (ii)
Initiatives for motivation and empowerment, (iii) Training and Development, and (iv)
Organizational Structure (Chaneta, 2014).
2.1. Recruitment / Compensations / Related Process
The initial process step relates to job analysis for the various positions, the roles and
responsibilities. While there are various models in this regard, the most suitable given
the nature of the business and the model that shall yield maximum effectiveness is
the Functional Job Analysis model (FJA). The said model aids the collection as
well as saving of information related to the jobs to the maximum extent possible.
This FJA model is utilizing for establishing tasks affiliated statements. The model
was initially propounded by Fine, S. in collaboration with others, this methodology
supports for determining the intricacies with respect to duties / responsibilities which
is encompassed within any specific role. This work focused methodology is
undertaken over the basis of relatedness of job data where the intricacies of any roles
are determined along the range of various scores offering to any specific role. The
low levels of the scores show high issues (Armstrong & Taylor, 2014).
Next is the methodology of the recruitment process for the business venture. At the
outset, four different recruitment methodologies are commonly used for recruitment
of human resources and they comprise, (1) Internal Recruitment Methodology, (2)
Direct Recruitment Methodology, (3) Indirect Recruitment Methodology, & (4) Third
Party Reliant Recruitment Methodology (Bratton & Gold, 2012).
In the instance of this case, methodology relevant for the recruitment process in
relation to human resources shall be undertaken by use of internal recruitment
methodology in combination with the third party reliant methodology for all

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN
recruitments. This internal methodology includes the sourcing of candidates through
internal resources, that is, inside the entity for the openings related to any jobs. The
third party reliant methodology can be seen as an external channel, in which the
entity sources candidates by way of an aid or else liaising support from external third
party recruitment entities, advisors / consultants, etc. (Bratton & Gold, 2012).
On the basis of the nature of the business and the nature of the organization, the
recruitment needs and the selection of the human resources shall be undertaken by
the following selection methodologies, (1) Preliminary screenings, (2) Direct person
to person interviews, and finally (iii) Selection check for cultural fit (Buller &
McEvoy, 2012).
The system for compensation provides for a robust basis for any organization. In
order to pave way for seamless operation of an organization in smooth and also
successful manner, it is very much imperative for a compensation system that is
adopted by the organization benefits both the employer and employees. The pay
model in relation to compensation systematically sets up strategic policy and related
procedures, methods, and other techniques in order to establish compensation terms
for the overall business venture to achieve numerous goals like that of efficiencies
with respect to performances, quality, customers, stockholders value and costs and
further additionally goals like that if fairness and compliance (Hendry, 1995).
The design of the pay model for this organization shall incorporate the following,
Consistency of the pay model and related strategic policies with that of

organizations overall goals and strategies (Milkovich & Newman, 2002).

Making sure the optimal trade-off / balance when deriving the suitable
proportions in terms of weightage to factors like performances, experience,
and merit, etc. that aid in determining each employees compensation
(Milkovich & Newman, 2002).

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN

Ensuring the compensation terms seem fair and equitable in terms of market
scenario of the same and packs enough factors to attract employees
(Milkovich & Newman, 2002).

2.2. Initiatives for motivation and empowerment

Motivations is one of the crucial factor that ensures the employee is driven to
undertake his roles / responsibilities, empathize passionately with the goals of the
entity, strive to innovate, etc. in undertaking the job. In summary it can be said that
the employee has to be more than satisfied with respect to the role, organization and
the business environment.
The same shall be achieved in this organization through following approaches,
Effective management of diversity: Diversity can be said to be order of the
day in recent times and ensuring secure, safe and inclusive work place

ensures motivated and high productive work force (Storey, 2015).

Effective and transparent communication: Establishing and implementing
with a committed approach to setup a communication channel that is active,
transparent, effective and two-away among the employees and senior

management (Storey, 2015).

Organization Culture: Gradually and steadily developing an organizational
culture that is aligned with the company goals, inclusive and drive
innovativeness, recognition, and initiative (Storey, 2015).

2.3. Training and Development

Training and development is crucial to constantly advance the skills and abilities of
the employees and in that process empower and motivate them. Further the various
compliances, deriving from external and internal regulations, are trickled down and
trained on a periodical basis. The following training program is proposed to aid the
same,
Employee

Training

Training

Time

Period

Trainer(s)

Mandatory

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN
(HR /
Internal /
External)

/ Optional

Topics

Methodology

period
(days)

All fresh
joiners

History of
Organization,
objectives of
the business,
vision / mission,
context of
industry &
regulatory
environment,
polices, rules,
and others

(1)
Presentations
as well as
group based
activities in
Classroom
based sessions
(2) Reading in
online based
intranet source

3 starting
from
employee
joining
date

NA

HR

Executive
and Trainee

communication
skillsets, i.e.,
oral, written and
presentation

NA

HR

NA

HR

NA

NA

Internal

HR /
Internal

Roles

Assistant
Manager
Executives /
Trainee /
Assistant
Manager

Manager

Presentations
as well as
group based
activities in
Classroom
based sessions
Presentations
communication as well as
skillsets, i.e.,
group based
oral, written and activities in
presentation
Classroom
based sessions
Respective
knowledge from Training while
operations and
at Job
functions
Presentations
Management of as well as
teams,
group based
Leadership
activities in
skillsets, and
Classroom
others
based sessions

Manager

Respective
knowledge from Training while
operations and
at Job
functions

Manager

Respective
knowledge from External
operations and
Seminars
functions

Organization Mandatory
wide
trainings over

Desktop level
self-trainings

90
(program
based)

NA

NA

Internal

1 to 3

Yearly
Once

External

NA

NA

Less than
1 (30 to 60

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN
regulatory
guidelines,
procedures,
policies, and
others
Online based
Organization course at the
wide
intranet of the
organization
Senior
Team specific
Management
Organization
Team specific
wide

(online
intranet &
delivery via
email to
desktops)
Desktop level
self-trainings
(online
intranet &
delivery via
email to
desktops)
External
Seminars and
Conferences
External
Seminars and
Conferences

minutes
each topic)

Less than
1 (30 to 60
minutes
each topic)

NA

Internal

NA

Yearly
Once

External

External

over
discretion
of the heads
of
Functions

NA

NA

2.4. Organizational Structure

The organizational structure shall be maintained to be flat with very minimal levels
of reporting structures to aid a clutter free, open, less bureaucracy based structure to
aid in easier decision making, swift operation and empowerment of employees to
drive innovation, initiative and a performance based culture (Lynch and BucknerHayden, 2010)

BUSINESS PLAN CONCEPT / DESCRIPTION & HUMAN RESOURCE

MANAGEMENT PLAN

References
Armstrong, M. & Taylor, S., (2014), Handbook of Human Resource Management- Practice.
Editions. Michael Armstrong
Bratton, J. & Gold, J., (2012), Human Resource Management- Theory and Practice. Editions.
Palgrave Macmillan
Buller, P. F. & McEvoy, G. M., (2012), "Strategy, human resource management &
performance- Sharpening line of sight", Vol. 22(1), pp 43 - 56
Chaneta, I., (2014), "Human resource planning", International Journal of Management, IT
and Engineering, Vol. 4 (2)
Hendry, C., (1995), Human Resource Management. Edition. Routledge
Milkovich & Newman, (2002), Compensation. Editions. McGraw-Hill Irwin
Storey, J., (2015), New Perspectives on Human Resources Management. Edition. Routledge
Revival
Lynch, K., & Buckner-Hayden, G., (2010), Reducing the new employees learning curve to
improve productivity. Retrieved from:
http://www.ncbi.nlm.nih.gov/pubmed/20151373