Unit 5 Human Resources Management Assignment
Human resource management plays an important role in the growth of organization. The company cannot achieve its goals and objectives without effective work force. In the given scenario there is a high staff turnover which means the human resource management does not effectively adopted in the company. There is lack of human resource planning in the company which is estimation by the human resource manager about the requirement of staff and demanded qualities in the applicants. The finance manager is playing the responsibilities of the HR manager which is creating the problem of lack of motivation and direction in the employees and leads to decrease the ratio of employee retention. There are no policies for any human resource planning and recruitments are done by telephone interview before the face to face interviews. Human resource management is a process in which planning, staffing, training and development, and compensation are included.The initial stage of human resource management is planning. In which a data is analyzed and predefined for the requirement of staff in the organization and there should be a benchmark set for the applicants, these standards can be based on their degrees and diplomas and experience.To understand the importance of effective planning and selection we will study this report. The companies taken for the study of human resource management are two big FMCG Companies, Amway and Body Shop International having their business all over the globe (Bach, S. & Edwards, 2013).
2.1 Analyzing the reasons for human resource planning.
Human resource is a technique to optimum utilization of human resources in a company. It is a direction for the achievement of goals and objectives. For an effective management of work force in the organization planning is required and has its benefits in managing the work force. Planning is a futuristic approach and includes an estimation and analysis of data and makes a framework for the entire process of human resource management. In the companies like Amway and Body Shop International, human resource plays crucial role. The effective manpower generates more profits and increases the productivity of the company. The requirement of human resource planning can understand by following points (Bach, S. & Edwards, 2013).
- Ensure the required work force: A company cannot achieve its objectives without the adequate and efficient work force. If there is excess in the number of employees then the cost of production will be high of company as in the compensation is one of the largest costs of any company, and if the number of employees will be less than the required then it will reduce the productivity of the company.So there should be effective estimation of the required work force in the company. Amway and Body Shop International are Multinational companies so the need of work force is estimated by analyzing the requirements by different techniques.
- Cope up with changes: In today’s business environment where there is globalization, privatization and liberalization is there in the market, every company have to change itself with the change in the business culture. These changes are necessary for the growth of the company.Amway and Body Shop are multinational companies and have to plan according to the culture of every country. These changes can be organizational, cultural, technological and legal (Bach, S. & Edwards, 2013).
- Expansion and diversification of organization: Amway and Body Shop International are most profit earning companies of UK and have so many opportunities for expanding and diversifying their business. For applicability of these strategies and plans there are required many resources, and human resource is one of them. Human resource planning helps to manage these resources for these plans.
- Optimum utilization of resources: When the work force is effective and work efficiently it leads to the effective and optimum utilization of other resources.Goals and objectives cam be achieved by these effective utilization of resources.
The above points are the reasons and importance of human resource planning in the process of human resource management.
2.2 Outlining the stages involved in planning human resource requirements.
Planning – planning can be defined as a technique by which it is ensure that right candidate is for right job. In the planning process the requirement is estimated of number of work force by following the process which is given below.
- Analyzing the organizational goals and objectives: It is essential to analyze goals and objectives of organization, which will help to estimate the required work force to achieve these goals. The priority must be identified of company which will help to categorize the resources.Goals and objectives are wide of Amway and Body Shop and they analyze the motive which will influence human resource management (Mitchell, R., Obeidat,et al 2013).
- Gap identification by analyzing existing human resources: Analysis is done to identify the existing human resources and then gap is identified by calculating difference between goals and existing resources.it is an estimation of demand and supply of human resources. Companies like Amway and Body shop International keep analyzing their demand and supply of human resources in the company which helps to maintain the requirement of man power.
- Developing the plan: A plan is developed to fill this gap by recruitment of employees in the company. The plan includes all the decisions related to the methods and strategies going to be used in the human resource management, the prioritized aspects of the organization in the process of human resource management.Budgetary control and methods of communication and marketing are also defined in the plan of human resource management.
- Control: Control can be expressed as the monitoring of the activities of human resource planning. The process should be monitored effectively which helps to evaluate the variation in the performance and identify the reasons for that. Amway and Body shop controls their process of human resource planning by monitoring all the activities (Mitchell, R., Obeidat,et al 2013).
2.3 Compare the current recruitment and selection process in the organization with another organization you recommending.
Amway and Body shop International are taken for the comparison of recruitment and selection process. Both companies are FMCG companies of UK.
Recruitment is the technique to maintain the work force in the company by giving right job to right candidate. On the other hand selection can be defined as a process of choosing the appropriate candidate by analyzing the required qualities among the applicants. The process of recruitment and selection can be done by using various sources. Every source has its merits and demerits. Every company chooses sources by analyzing the goals and objectives of the company. In Body Shop International the current recruitment procedure is to take telephonic interview of the candidates and then shortlist them and call for face to face interview. We can see that the company is focusing on the external sources for the recruitment. External recruitment can be done by advertising the vacancy, placements from educational institutions, recommendation of existing employees.And selection from the applicants is done by choosing the appropriate candidate. This is an expensive technique for recruitment and time consuming also. There are advantages of collection of new talents in the company (Aravamudhan, & Krishnaveni et al 2015). On the other hand the recruitment policy of Amway is less expensive and effective also. The company adopts internal sources for recruitment of work force. Internal sources include promotion and demotion of existing employees, transfers in different departments and recommendations of existing employees. This approach for recruitment and selection is less time consuming and also removes the requirement of orientation period and initial training requirements.
2.4 Evaluating how effectiveness is the organization recruitment and selection techniques with another organization you recommending.
There are two types of techniques and sources for recruitment and selection process, internal sources and external sources.The Body shop is doing recruitments by external source in which the advertisements are given in newspapers, blogs, websites and trade publication announcements. The company is taking telephonic interviews to shortlist applicants and then face to face interview of remaining candidates. In the external technique of recruitment the time and money consumption level is high as in there is also required proper training about the work in the company and expenses over advertisement activities (Aravamudhan, & Krishnaveni et al 2015). Amway has adopted both the sources of recruitment in which the company tries to fill the gap by internal sources of recruitment but for the other requirements they applied for external sources. Internal sources include promotion and demotion, transfer of existing employees. This is a cost efficient approach to fill the gap in the work force. The company organizes promotions and transfers time to time to manage the human resource in the company.External sources are also used to appoint the managing human entrepreneurship managers in the company. The benefits of internal sources results as cost efficiency in the company and more productivity.This leads to the growth of the organization.
By doing this analysis we can conclude that in the process of human resource management, planning plays an important role to cover the gap in the quality and quantity of the human resource in the company.The study of two companies recruitment and selection policies are done to understand the effective and efficient methods of human resource planning.
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