Documente Academic
Documente Profesional
Documente Cultură
MAY / 2018
BBPR 2103
Human resources are the set of individuals who make up the workforce of an organization. The
effective management of human resources requires sound Human Resource Management
systems. In order to develop a sound HRM system, the organization should have effective
Human Resource Management practices. Human resource management refers to practices that
influence employees’ abilities, motivation and performance (Noe et al., 2008). Human resource
management enables organizations to achieve expected organizational performance and
competitiveness by achieving desired employee performance (Barney, J. B., & Wright, P. M.
(1997). Successful human resource management differentiates successful organizations from
unsuccessful organizations (Marchington and Wilkinson, 2005). It is obvious that applied
practices in human resource management affect the ability of any organization to achieve
expected performance and competitiveness through achieving desired employee performance.
For the purpose of this paper we will identify the environmental factors and assess the influences
of those factors on human resource planning.
Organization chosen:
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VISION
Our business describing the desire long-term future state of “The Company”
MISSION
To deliver our quality services to our customer to their satisfaction, in a cost effective
with safe & sound
Building Partnership
Technological Innovations
No of employee: 25
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2. HUMAN RESOURCE PLANNING PROCESS IN THE SELECTED COMPANY
Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource. APEX GLOBAL has used consideration
technique in their human resource supply forecast, specifically the executive evaluation. Every
quarter of the year, general meetings will be held where workers KPI is presented individually to
see if they manage to achieve the set target. After this presentation, they will be individually
evaluated by their supervisors to determine whether they will be promoted, re-assigned, re-
skilled or even dismissed.
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d) Gap analysis
Small business owners planning for growth and new business opportunities examine their
capabilities in terms of equipment, facilities, finances and suppliers. Another critical piece of
their planning puzzle involves people. In order to achieve its goals, a business needs a workforce
with the right skills. Conducting a gap analysis for human resources gives leaders a reading on
future employment requirements by identifying the competencies their vision requires and
comparing them to those available from current employees.
e) Action planning
An organization has to plan to overcome its manpower shortage and excess. The gap data will
act as a basic input for action planning. Action planning always involves staffing and other
human resource activities.
Determine objective
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3. HOW THE ENVIRONMENTAL FACTORS AFFECT HUMAN RESOURCE
PLANNING
When it comes to human resource management there are several factors that affect day-to-day
operations. So HRM practices differ from one organisation to other organisation and from one
country to another. Ozutku and Ozturkler (2009), suggested that external and internal factors
affecting HR practices differs significantly across countries. There are various factors internal
and external that has their impact HRM practices.
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on training and development activities. Rosman et al. (2013) found that, HR department practices
in health care sector are majorly affected by top management interference.
Line managers are those managers to whom individual employees or teams directly report and
who have responsibility to a higher level of management for those employees or teams. Line
Management participation in designing and implementing HR activities is the key to
organizational success. Due to the small size of the company, the top management and line
managers are present most of the time to HR practices in their work and promote good work
practice. Since they knows the requirement and necessities of their team and department, they
play an important role in structuring effective HR policies. Rosman and colleagues (2013)
argued that, managerial style is one the important elements shaping the policies HR department.
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3.2.1. Economic Conditions
One of the biggest external influences is the shape of the current economy. Not only does it
affect the current talent pool in the organisation, but it might affect the complete selection, hiring
ability, compensation structure of the organisation. Satow & Wang (1994) found that due to
development in global economy, the international dimension of HR practices has become more
and more significant. The current economic crises resulted in decrease of employment in APEX.
Employees are required to play multiple roles and multitask. Some project that supposedly
requires a site engineer has been sub-contracted due to lack of manpower. Rosman and
colleagues (2013) stressed the significant interference of national economy on HR policies.
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3.2.3. Workforce demographics
One of the most powerful forces affecting work and organizations is changing worker
demographics. Demographics include factors such as gender, age, ethnicity, occupation,
seniority, salary levels, marital and family status. Shenhav & Haberfeld (1992) pointed out that
while diversity was always there in workforce in terms of age and skill but this diversity has
grown more over the last two to three decades. The number of women in the work force has
increased significantly, as have the proportion of different ethnic groups.
APEX is a small engineering firm often working on projects that requires their engineers to do
site-work and travel. For this purpose, APEX needs to hire people that wouldn’t mind working in
this environment. To compensate, APEX provide interesting mileage compensation, several on
site allowance and long maternity leave (for woman staff). However, due to the size of the
company is very small, the staff is also comprising of almost all malay causing the dynamics of
the company to reduce productivity. To curb this, the HR has decided to diversify their
workforce and open the employment to non-malays.
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4. PROPOSAL OF FORECASTED ANALYSIS OF SUPPLY AND DEMAND FOR
APPROPRIATE HUMAN RESOURCES IN SELECTED COMPANY
Human Resource Forecasting is the process of projecting the organization future HR need
(demand) and how it will meet those needs (supply) under a given set of assumptions about the
organization policies and the environment conditions where it operate. Without Forecasting we
cannot asses the distinction between the supply and demand.
Forecasting human resource demand is the process of estimating the future human resource
requirement of right quality and right number. Potential human resource requirement is to be
estimated keeping in view the organisation's plans over a given period of time. Analysis of
employment trends; replacement needs of employees due to death, resignations, retirement
termination; productivity of employees; growth and expansion of organisation; absenteeism and
labour turnover are the relevant factors for human resourced forecasting.
Job analysis and forecasting about the quality of potential human resource facilitates demand
forecasting. So, existing job design must be thoroughly evaluated taking into consideration the
future capabilities of the present employees. Due to the fact that APEX is a small company,
qualitative technique is the best way to forecast human resource demand.
a) Managerial Judgement
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of departmental heads. Under the Top-down approach', top management forecasts the human
resource requirement for the entire organisation and various departments. This information is
supplied to various departmental heads for their review and approval. However, a combination of
both the approaches i.e. 'Participative Approach' should be applied for demand forecasting.
Under this approach, top management and departmental heads meet and decide about the future
human resource requirement. So, demand of human resources can be forecasted with unanimity
under this approach.
b) Delphi technique
Delphi technique is also very important technique used for estimating demand of human
resources. This technique takes into consideration human resources requirements given by a
group of experts i.e. mangers. The human resource experts collect the manpower needs,
summarises the various responses and prepare a report. This process is continued until all experts
agree on estimated human resources requirement.
Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource. For forecasting supply of human resource
we need to consider internal and external supply. Internal supply of human resource available by
way of transfers, promotions, retired employees & recall of laid-off employees, etc. Source of
external supply of human resource is availability of labour force in the market and new
recruitment.
a) Succession analysis
Once APEX has forecast the demand for labour, it needs an indication of the firm's labour
supply. Determining the internal labour supply calls 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.
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Demand forecasting helps in determining the number and type of personnel/human resources
required in future. The next step in human resource planning is forecasting supply of human
resources. The purpose of supply forecasting is to determine the size and quality of present and
potential human resources available from within and outside the organisation to meet the future
demand of human resources. Supply forecast is the estimate of the number and kind of potential
personnel that could be available to the organisation.
Figure 1: The above figure illustrates that internal supply forecasting can be estimated based on the following:
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b) Markov analysis
A transition matrix, or Markov matrix, can be used to model the internal flow of human
resources. These matrices simply show as probabilities the average rate of historical movement
from one job to another. Figure 2 presents a very simple transition matrix. For a line worker, for
example, there is a 20% probability of being gone in 12 months, a 0% probability of promotion
to manager, a 15% probability of promotion to supervisor, and a 65% probability of being a line
worker this time next year. Such transition matrices form the bases for computer simulations of
the internal flow of people through a large organization over time.
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5. CONCLUSION
This paper has identified the environmental factors and assess the influences of those factors on
human resource planning of APEX GLOBAL ENGINEERING which is the selected
organization. Human resource planning involve five steps which has been described accordingly.
From this five steps, we notice that From these steps, we note that the internal and environmental
factors can affect the supply and demand forecast of HR. Internal factors includes organization
size, top management and line managers and politics while external factor is more on economic
change, workforce demographic and technological change. Taking into consideration the internal
and external factors, and the five step HR planning, a proposal of forecasted analysis of supply
and demand for appropriate human resources was drawn. Methods of forecasting HR demand
proposed are managerial judgement and Delphi technique, while methods of forecasting HR
supply proposed are succession analysis and Markov analysis.
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6. REFRENCE
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Tsui, A. S., & Milkovich, G. T. (1987). Personnel Department Activities: Constituency
Perspectives and Preferences. Personnel Psychology, 40, 519–537.
Zheng. G & Morrison. M, (2009). Enhancing Chinese SME performance through innovative HR
practices. Personnel Review, 38 (2). CIPD
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