Free Essay

Hr Planning Case 2

In: Business and Management

Submitted By scorrs
Words 567
Pages 3
Clipper Products
Forecasting is a process of predicting or estimating the future based on past and present data. Forecasting provides information about the potential future events and their consequences for the organisation. It may not reduce the complications and uncertainty of the future. However, it increases the confidence of the management to make important decisions. Forecasting is the basis of premising. Forecasting uses many statistical techniques. Therefore, it is also called a Statistical Analysis.
In this case for Clipper Products it was noted that the organization has decided to not renew their Service Contracts when they expire within the next year however they will continue to support the contracts until expiry. Upon my calculations, to summarize, at 6 months there will be 6 Account Managers, 188 cleaners and 11 supervisors. Clipper Products has decided to not renew 30 of 50 contracts that are due to expire. The contracts have been reduced by 60 % therefore the workforce should be reduced by 60 % based on the metrics required to fill each contract. A hiring freeze has been invoked at this time as we know now we have an HR Surplus. An HR Surplus is when my internal workforce exceeds the required demand required. A surplus requires downsizing efforts by the organization in order to maintain the established budget. The strategy will consist of invoking a hiring freeze, natural attrition, reducing hours and shifts, layoffs and lastly termination with severance packages. Natural attrition is the process of reducing the workforce to decline naturally due to the normal pattern of human resource supply losses associated with retirement, death, voluntary turnover etc. At 1 year, I anticipate the remaining staff to consist of 2 account managers, 75 cleaners, and 5 supervisors. As we know at this time the remaining staff will be terminated. Below I have provided my calculations for the service contracts Clipper Product will continue to manage in the next year.
Position Staff level for 50 contracts First 6 months @ 50
Contracts therefore at 6 months I will have Proposed Staff
@ 20 contracts@ 6 months reduction of 60% of workforce Remaining @ 1 year with 0 contracts
Account Manager

5

Turnover Rate 20% 5 x (20 %) = 1

Therefore 5+1= 6 AM required for first 6 months. Therefore at 6 months I will have

6 Account Managers 50 contracts / #of Acc Man (5) = 10 therefore
10 contracts per acct manager = 2 Account Managers, then add 20% turnover rate (.4) =2.4 therefore = 2 account managers remain after 6 months 2 Account Managers

as the turnover rate doesn’t dictate I require any further hires
Cleaners

150

Turnover Rate 25% 150 x 25% = 37.5

Therefore 188 cleaners required to maintain 50 contracts for the first 6 months therefore I will have 188 cleaners at 6 months

188 x 60% = 113 to be terminated/reduced after 6 months

150 emps / # of contracts (50) = 3 employees per contract therefore
3 x 20 = 60 employees for 20 contracts plus 25 % =75 after 1 year 75 employees

60 x 25% = 15 plus 60 employees leaves me with 75 employees at 1 year

Supervisors

10

Turnover Rate 10% 10 x 10% = 1

Therefore 11 supervisors required for first 6 months 150 employees/# of supervisors
150/10 = 15 employees per supervisor 60/15 = 4
4 x turnover rate (10%) =
4 - .4 = 4.4 therefore 75 employees / 15 employees per supervisor = 4 therefore 4 supervisors remain at 1 year

Similar Documents

Premium Essay

Human Resource Planning

...Human Resource Planning ^ Brian J. Smith, John W. Boroski, and George E. Davis - INTRODUCTION Human Resource (HR) planning is the formal process of linking business strategy with human resource practices. Approaches to human resource planning can be arrayed along a continuum ranging from an "add-on" to business strategy to a separate planning process (Figure 1). At one end of the continuum, HR planning is little more than a postscript to a business planning process. After engaging in an extensive business planning process in which business product, market, and technological directions are defined, questions about HR practices are raised. These questions deal with the structure, competencies, accountabilities, organization, and leadership required to make the strategy work. At this end of the continuum, HR issues are an afterthought to business strategy. They receive relatively little attention and become an appendage to business planning. In the extreme, line managers consider the HR questions as an afterthought to "real" planning efforts. At the other end of the continuum, HR planning is a distinct and separate planning process. The HR department not only initiates the effort for HR planning, but executes and administers the plan. In this case the HR plan is more a process for shaping priorities for the HR function than for the business. In extreme cases, HR plans are created with little or no awareness or input by line managers. While the outcome may be an elegant document...

Words: 4115 - Pages: 17

Premium Essay

Human Resource Management

...A RESEARCH REPORT ON HUMAN RESOURCE PLANNING A Study on Selected Organizations in Bangladesh Executive Summary This study investigates the various Human Resource Planning and Development activities and efforts that the telecom and banking industry of Bangladesh undergoes, to deal with the rapidly changing environment, which organizations face in the current globalize market place. It views differences in the strategic and coherent approach to the management of the under-covered bank and telecoms ’ most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. Human resources management comprises several processes. Together, they are supposed to achieve the organization’s goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. The various HR activities which we focused on while doing this report have simply started from the range of Recruiting process, Training Process, Performance Appraisal, Transfer Process, Motivation Process, Employees Retention Programs and Respond to diversity. We surveyed two top telecom companies and one local private company altogether to prepare a high-quality research report. Our objective was to find out the strategic aspect of Human Resource Panning various HR issues that a bank and telecom company focuses for thriving in the market. The results of logistic...

Words: 6336 - Pages: 26

Premium Essay

Analsyis

...INTRODUCTION Human resources planning is a process that identifies current and future human resources needs for an organization to achieve its goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning .As defined by Bulla and Scott, human resource planning is ‘the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements’. Reilly defined workforce planning as: ‘A process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand. Human resource planning includes creating an employer brand, retention strategy, absence management strategy, flexibility strategy, talent management strategy, recruitment and selection strategy. Human resource planning aims at fulfilling the objectives of manpower requirement. It helps to mobilize the recruited resources for the productive activities. The human resource planning is and important process aiming to link business strategy and its operation. The planning processes of most best practice organizations not only define what will be accomplished within a given time-frame, but also the numbers...

Words: 2858 - Pages: 12

Premium Essay

Dessler Hrm

...Is Human Resource Management? 30 Why Is Human Resource Management Important to All Managers? Line and Staff Aspects of Human Resource Management 32 Line Managers' Human Resource Duties 33 Human Resource Manager's Duties 33 New Approaches to Organizing HR 35 Cooperative Line and Staff HR Management: An Example Globalization and Competition Trends 37 Indebtedness ("Leverage") and Deregulation Technological Trends 38 Trends in the Nature of Work 39 35 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 31 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 38 36 • HR AS A PROFIT CENTER: Boosting Customer Service Workforce and Demographic Trends 40 Economic Challenges and Trends 42 40 THE NEW HUMAN RESOURCE MANAGERS 43 Human Resource Management Yesterday and Today 43 They Focus More on Strategic, Big Picture Issues 43 • THE STRATEGIC CONTEXT: Building LL.Bean 43 44 They Use New Ways to Provide Transactional Services They Take an Integrated, "Talent Management" Approach to Managing Human Resources 45 They Manage Ethics 45 They Manage Employee Engagement 45 They Measure HR Performance and Results 45 They Use Evidence-Based Human Resource Management They Add Value 46 They Have New Competencies 47 HR Certification 48 46 THE PLAN OF THIS BOOK 48 48 The Basic Themes and Features CHAPTER CONTENTS OVERVIEW 49 49...

Words: 5053 - Pages: 21

Premium Essay

Bulmash Smple Chapter 2

...CHAPTER PART 2 2 Forecasting Demand and Supply FORECASTING DEMAND AND SUPPLY LEARNING OBJECTIVES • • • • • • Understand and select information required to forecast HRP Identify members of the HR planning team Understand the four steps in the HRP process Apply techniques to forecast HR demand and supply Describe various methods for assessing labour planning (quantitative and qualitative) Discuss key challenges in forecasting HR demand and supply 26 Part 2 | Forecasting Demand and Supply ■ PROFILE The Great Pyramid of Giza The Great Pyramid of Giza has fascinated the world for centuries and is revered as one of the greatest mysteries of time. When it was first built it was 145 metres tall, making it the tallest structure on the earth for over 4,300 years. Egyptologists argue that even with all of the human and computer advancements achieved to date, it would be near impossible to replicate the production of these pyramids. The HR planning scale of the project would be among the biggest challenges to face. Archaeologists have their own methods for determining how many workers (mostly slaves) were employed at Giza, but a majority agree that the Great Pyramid was built by approximately 4,000 primary labourers—quarry workers, haulers, and masons. These primary labourers would have been supported by 16,000 to 20,000 secondary workers—ramp builders, tool-makers, mortar mixers, and those providing back-up services such as supplying food, clothing, and fuel. These estimates suggest...

Words: 13612 - Pages: 55

Premium Essay

Hrm Book by Garry

...Is Human Resource Management? 30 Why Is Human Resource Management Important to All Managers? Line and Staff Aspects of Human Resource Management 32 Line Managers' Human Resource Duties 33 Human Resource Manager's Duties 33 New Approaches to Organizing HR 35 Cooperative Line and Staff HR Management: An Example Globalization and Competition Trends 37 Indebtedness ("Leverage") and Deregulation Technological Trends 38 Trends in the Nature of Work 39 35 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 31 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 38 36 • HR AS A PROFIT CENTER: Boosting Customer Service Workforce and Demographic Trends 40 Economic Challenges and Trends 42 40 THE NEW HUMAN RESOURCE MANAGERS 43 Human Resource Management Yesterday and Today 43 They Focus More on Strategic, Big Picture Issues 43 • THE STRATEGIC CONTEXT: Building LL.Bean 43 44 They Use New Ways to Provide Transactional Services They Take an Integrated, "Talent Management" Approach to Managing Human Resources 45 They Manage Ethics 45 They Manage Employee Engagement 45 They Measure HR Performance and Results 45 They Use Evidence-Based Human Resource Management They Add Value 46 They Have New Competencies 47 HR Certification 48 46 THE PLAN OF THIS BOOK 48 48 The Basic Themes and Features CHAPTER CONTENTS OVERVIEW 49 49...

Words: 5053 - Pages: 21

Premium Essay

Ch02 Eim Belcourt-7ce

...Chapter 2: Strategy and Human Resources Planning If nothing else, my students should learn that… • It is important for HRM to align its policies and processes with the business strategy in order to provide value to the organization (external fit), and that the policies and processes are mutually reinforcing (internal fit). HR planning follows the same pattern as organizational strategic planning, and hence the two processes are complementary. • In order to evaluate the effectiveness of strategy, it is imperative to take the ‘people side’ into consideration. Sole reliance on financial documents (e.g., financial statements, cash flow statements, income statements) largely ignores investment in human capital. Learning objectives • Identify the advantages of integrating human resources planning and strategic planning. • Understand how an organization’s competitive environment influences its strategic planning. • Understand why it is important for an organization to do an internal resource analysis. • Describe the basic tools used for human resources forecasting. • Explain the linkages between competitive strategies and human resources. • Understand what is required for a firm to successfully implement a strategy. • Recognize the methods for assessing and measuring the effectiveness of a firm’s strategy. Why is this chapter important? The purpose of this chapter is to highlight the nexus of strategy and HR planning. It...

Words: 4959 - Pages: 20

Premium Essay

Shrm

...Human Resource Management). Which is better? Use any short case examples to illustrate your discussion? The best answers will be offering a sharp definition, discussion of the key differential factors associated with the models and a critique of the issues and tensions organizations face. The best answers will introduce the strategy process behind the models, planning, competence and the flow from the business strategy. They will be able to focus around the vision of the organization the values and how this is worked through with better examples. 2. How are Human Resource Departments responding to the challenge of SHRM? Answers will use the Ulrich or similar framework and assessing the challenges HR faces with respect to becoming strategic actors and business partners. They will be able to offer more contemporary information / discussion updating progress toward becoming business partners and change agents with some examples beyond the basic module guide. This will offer a critical and challenging view point. They will offer a comprehensive update on what it means to measure HR value added, develop the function around consultancy and basic service functions and be able to offer more on audit and the relationship with other line managers; advisory, policy and support etc. 3. Outline the main principles of Human Resource Planning. Answers must be confident on the requirement for better longer term planning as a central focus for a strategic approach. They will...

Words: 1091 - Pages: 5

Premium Essay

Hr of Honda

...assignment Student: Nguyen Anh Vu Class: EMBA10A Subject: Human Resource Management in Honda Vietnam – Planning and Job design 1. Honda HR planning Human resource planning uses data from the analysis of labor supply and demand to forecast the shortages and surpluses of labor force. In order to build an effective human resource planning, “the organization needs to identify the appropriate goals” and “formulate and implement a planning process gathered”. A model overview the whole planning process has been developed: Figure 1: Overview of human resource planning process (De Cieri, Kramar) At Honda Vietnam (HVN), the manpower plan is often made twice per year. It is one integral part of business & HR strategy. In order to implement the business strategy, they need the skilled workforce. Together with that, the learning & development is also reported to the BOD so as to get approval for budget. “The power comes from inside”, the workforce planning will foresee the sufficient manpower to enforce the company power including the market-share & brand power stand in the automobile market which are its business strategies. “Manpower is the key driver of Honda automobile competitive advantage in automotive industry” Mr. Gan Kok Seng – the deputy general director said to the Vinh phuc Social Invalid & Labor Department in Feb 2009. Referring to the very successful case study “Human resource management in Australia of St. George Bank” Honda Vietnam actually applied same...

Words: 832 - Pages: 4

Premium Essay

Human Resource Planning

...INDEX Sr. No. 1 1.1 1.2 1.3 2 2.1 2.2 3 3.1 3.2 4 4.1 PARTICULARS CHAPTER 1: INTRODUCTION TO HRP OBJECTIVES, NEED & IMPORTANCE OF HRP EVOLUTION OF HRP CONTEMPORARY APPROACH TO HRP CHAPTER 2: HRP PROCESS DEVELOPING A HR PLAN ADVANTAGES AND DISDVANTAGES OF HRP CHAPTER 3: INTERNAL FACTORS AFFECTING HRP EXTERNAL FACTORS AFFECTING HRP IMPACT OF TECHNOLOGY ON HRP CHAPTER 4: A SCOTTISH POWER CASE STUDYINTRODUCTION FACTORS AFFECTING WORKFORCE PLANNING AT SCOTTISH POWER 4.2 SCOTTISH POWER’S RESPONSE TO WORKFORCE CHALLENGES 4.3 4.4 EMPLOYEE CASE STUDY CONCLUSION CONCLUSION BIBLIOGRAPHY 37 39 40 41 34 Page No. 1 4 7 8 11 15 17 21 26 29 31 33 CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE PLANNING Human resource planning (HRP) is the first step in the Human Resource Management (HRM) process. The real HRM process starts with the number and kind of people required by the organization for the coming period. HRP is also known by other names such as “Manpower planning”, “Employment planning”, “Labor Planning”, “Personnel Planning” etc. HRP is a sub-system in the total organizational planning. In other words, HRP is derived from the organizational planning just like production planning, sales planning, material planning etc. Planning the right man for right job and developing him into effective team member is an important function of every manager. It is because HR is an important corporate asset and performance of organizations depends upon the way it is put in use. HRP is a deliberate strategy...

Words: 12141 - Pages: 49

Premium Essay

Management

...Taipei Toronto Amsterdam Delhi Cape Town Mexico City Sao Paulo Hong Kong Singapore Tokyo Contents Preface xxiii Acknowledgments xxvii Introduction to Human Resource Management 2 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? What Is Human Resource Management? 4 Why Is Human Resource Management Important to All Managers? 5 Line and Staff Aspects of Human Resource Management 6 Line Managers' Human Resource Duties 6 Human Resource Manager's Duties 7 New Approaches to Organizing HR 9 Cooperative Line and Staff HR Management: An Example 9 Moving from Line Manager to HR Manager 10 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 10 Globalization and Competition Trends 11 Indebtedness ("Leverage") and Deregulation 12 Technological Trends 12 Trends in the Nature of Work 13 Workforce and Demographic Trends 14 Economic Challenges and Trends 15 IMPORTANT TRENDS IN HUMAN RESOURCE MANAGEMENT 16 The New Human Resource Managers 16 Strategic Human Resource Management 18 High-Performance Work Systems 19 Evidence-Based Human Resource Management 19 19 • EVIDENCE-BASED HR: Why Should You Be Evidence-Based? Managing Ethics 20 HR Certification 20 THE PLAN OF THIS BOOK 21 The Basic Themes and Features 21 CHAPTER CONTENTS OVERVIEW 22 Part 1: Introduction 22 Part 2: Recruitment and Placement 22 Part 3: Training and Development 22 Part 4: Compensation 23 Part 5: Employee Relations 23 The Topics Are Interrelated 23 4 VII viii CONTENTS CHAPTER SECTION SUMMARIES...

Words: 4865 - Pages: 20

Premium Essay

Paper

...PEST Analysis in strategic Human Resources Planning Hamid Reza Qasemi Islamic Azad University of Iran, Aligoodarz Branch Hamid-reza@myway.com Abstract: The present complex world require as far as is feasible, it consider impact of important factors related to organizations in strategic planning. The strategic planning of business includes all functional subdivisions and forwards them in a united direction. One of these subsystems is human resource management. Strategic human resource management comes after the strategic planning, and followed by strategic human resource planning as a major activity in SHRM. In strategic human resource planning, it can use different analytical methods and techniques that one of them is PEST analysis. This paper introduces how to apply it in a new manner. This manner is result of practical case of application of SHRP in an organization. Key words: PEST Analysis/ Strategic Human Resource Planning/ Strategic Human resource Management. 1. Introduction: Planning is about change and change management is a difficult. Rise and fall of strategic planning indicates organizations find tools to help to navigate organization's ship into the uncertain water of change. Success of a program is difficult to assess, as changing objectives and goals and the results are not simply measurable (Martinez: 1999). The organizations always are attempting to coordinate their resources, feasibilities, tools and capital in certain framework for...

Words: 2107 - Pages: 9

Premium Essay

Hris

...technology, information systems, new technology, and data security. With the changing world and constant new technology that is available, managers need to be aware of the technology that will increase effectiveness in their organization. 2. Introduction HRIS refers to software packages that address HR needs with respect to planning, employee information access, and employer regulatory compliance. The following text begins with a discussion of human resource planning, followed by human resource management systems. Human Resource Information Systems (HRIS) have become one of the most important tools for many businesses. Many firms do not realize how much time and money they are wasting on manual human resource management (HRM) tasks until they sit down and inventory their time. HRIS is advancing to become its own information technology (IT) field. It allows companies to cut costs and offer more information to employees in a faster and more efficient way. Especially in difficult economic times, it is critical for companies to become more efficient in every sector of their business; human resource (HR) is no exception. HRIS has gone from a basic process to convert manual information keeping systems into computerized systems, to the HR Information Systems that are used today. Human resource professionals began to see the possibility of new applications for the computer. The idea was to integrate many of the different human resource functions. The result was the third generation...

Words: 1270 - Pages: 6

Premium Essay

Human Resources

...informative and descriptive presentation which explained the department’s duties, organization’s job titles, organizational relationship ( who is reporting to whom). For instance, there is a scheme which shows buyers firstly contact with the Planning Department for receiving budget. Then buyers visit suppliers and the main brands for selecting products according to given budget. After logistic department provides bought products to reach our warehouse. Then buyers contact with Production/ Studio Department for having products screened on the website. The other slides show the organizational relationship implying every team members’ job titles. For instance, as an assistant buyer, i was reporting to Buying Manager. A sales assistant was reporting to me. The buying manager was reporting to Head of Buying Manager and she was reporting to CEO. * As there are types of strategies in strategic HR management, our department played little role in these strategies. The website mainly consists of textile products, then shoes and cosmetics. As a merchandesing department, we proposed for opening life style category at the web site. Our buying and head of branded manager exposed this idea to HR at a meeting named strategic planning. ( The meeting included planning,...

Words: 2681 - Pages: 11

Premium Essay

Recruitment

...my friends who was always there for me in completing this report. I would like to thank all who was with me to make this report a success. Table of Contents Acknowledgement 2 Table of charts 4 Table of tables 4 1.0 Introduction to the company BK Steel 5 1.1 Organizational chart for the company BK Steel 6 `2.0 Sight on the case as a HR student. 7 2.1 Differences between Human Resource Management and Personnel Management. 8 2.2 Training and Development. 9 2.3 The role of the Personnel Department in preventing the loss of loyal and senior workers. 11 2.3.1 Labour Turnover. 11 3.0 Human Resource Management. 13 3.1 Preventive methods of labour turnover. 14 3.1.1 HR Planning. 14 3.1.2 Recruitment . 15 3.1.3 Selection. 16 3.1.4 Induction and training. 17 4.0 Misconduct 19 5.0 Impact of the Misconduct to the company. 20 6.0 Disciplinary Procedure. 21 7.0 Show cause notice. 24 8.0 Recommended types of punishments. 25 9.0 Reference. 26 Table of charts Chart 1 (organizational chart of BK steel) 6 Chart 2 (Training cycle) 10 Chart 3 (HR planning process) 14 Chart 4 (Recruitment process) 15 Chart 5 (Selection process) 16 Chart 6 (Disciplinary procedure) 21 Table of tables Table 1 (Differences between HRM and PM) 9 Summary of the case study BK Steel is a single owned company who engaged in aluminum and steel productions which are designed for office...

Words: 4560 - Pages: 19