P1- Identifying the internal and external factors in human resource planning.In this report I will describe the internal and external factors to consider when planning the human resource requirements of an organisation. Human resource planning is looking at the current workforce skills and motivation techniques that are needed to compare with what is needed in the future.
Businesses need to take account on both inside and outside the business and the skills that are needed with in business to make it a success. Internal: Planning factors:Internal planning can relate to what is already happening inside the business itself. This can include thing like how the organisation can cope with methods of working or new demands made on it, things such as the introduction of using technology and new products and services.
It can be a way of considering how new skills that might be needed for the future and for the employees that already have. Internal: Organisation needsOrganisations are always changing and their human resources workforce need to able to adapt too quickly and efficiently. Demand of goods can affect the number of employees needed in their roles. Organisations need to plan for new products and services to make adjustments.
There are ways of doing this which are by contracting the workforce of expanding it. Organisations don’t stay the same; they are always changing no matter what, therefore the workforce requirements will have to do the same. Organisations look for different ways to increase the business by considering new markets that it may not have thought about. This could be expansion; by expanding into different markets or targeting different groups of people.Another one may be that countries may be part of the strategic plan – they might need new employees for example employees might have to be able to speak another language or to be able to work in different locations. Another could be a change in the number of people involved in distribution; an example is if more staff will be needed to transport goods for the organisation for consumers to buy their products. Technological change can affect working arrangements within the organisation, an example is that you may need fewer staff or employees with additional skills that are needed to do a particular job. There are many different types of staff may also be needed and existing staff may need to move to different jobs as they might not be needed.
Some organisations move their factories or businesses to other countries in order access different skills and cheaper labour. This helps them to be more able cost efficient and potentially to make larger profits. Internal: Skills requiredAccessing the skills of the current workforce is an important part of human resource planning as it enables the business to build up a profile of the training, experience and qualifications that employees already have. This is important whether the business is capital intensive or labour intensive.
Capital intensive means where a business has a lot of machinery involved in the production process. Labour intensive means a business uses a lot of people in the production process. Work changes within an organisation, and so do the skills and requirements that are needed. The organisation needs to measure the skill levels of its workforce so it can plan for future training or recruitment that might be needed to be done. Organisations that have rapid changes in demand for products and services or technological change may need to play for the next 12 months: others with much slower changes will plan for the longer term, such as the next 10 years.
Internal: Workforce profilesDifferent types of people work for organisations and these needs to be taken into account when planning workforce. Producing a workforce profile means that business managers can view and monitor types of employees working for the business. Workforce profiles can include details such as gender, ethnicity and ability. Knowing the age of the workforce can help managers plan for workforce problems and recruitment periods.
By profiling the workforce it is possible to see the number of older and younger workers that are employed in the organisation. If it’s found that there are any major gaps between age groups, then recruitment practices can be put in place to reduce it. Gender and ethnicity are included within the workforce profile.
Measuring these two factors profiling the qualifications, skills and experience or skills of employees shows the level of ability within an organisations workforce. An organisation sometimes uses an online humanresource information system to keep a record of all employee training, experience and skills so that training gaps can be identified and measured. External: planning factors:External planning factors can to what is already happening outside the business itself.
These factors include the type and availability of employees to work for organisations and the amount of money that is needed to pay them. Government policy, labour market competition, and the changing nature of work and employee expectations are also examples of external factors that are affecting in human resource planning in organisations. External: Supply of labourIt is important and needed to consider what it is happening to the supply of labour on a local, national and international scale.
Organisations can only recruit employees who are available to work. The HR departments will consider employees availability on a local nation and international scale. The supply of labour is dependent on trends in unemployment and the types of skills that are needed by employees.
If suitable employees are not available for organisations, it is important that the government and employers to invest in training and education. This will help the unemployed people become more employable and get jobs. International labour supply has implications for UK employers, because people from other countries are becoming more likely to move into the UK to find work. International supply of labour can affect level of wages; organisations might need to offer to attract the right candidates for the type of training, skills that may be needed for the new workers. Employers may consider employing people from countries outside the EU however there are restrictions placed on these types of workers.
The type of employment international employees may have changes depending on the skills that are required by the country at the time. Trends in supply of labour can be short term or long term. Short term trends mean what is happening in the next year or two with the number of employees. Employees may need to put in place emergency measures like training or temporary contracts to cope with the changes. Long term trends are changes that are likely to occur within the next 5 to 10 years. Organisation needs to make sure in the future the right people are availableto work with appropriate skills and qualifications.. External: Government policyGovernment has a big impact on human resource planning.
This is because the introduction of policies for education, work and training has the number of potential employees available. Setting out legalisation which affects how organisations plan their HR requirements. Although governments worth with leading employers and universities to identify skills gaps and areas to improve on. By the government providing the correct education and training to improve the level of skills that is needed, it will help put the organisations a lot. External: Labour market competitionAs a business plan its workforce needs for the future and so do businesses within the same industry. If the industry is expanding they might not be enough potential employees to work for the business.
A lack of potential employees leads to a shortage. Organisations in industries with labour shortages are likely to have problems recruiting employees they are more likely going to have pay higher wages in order to attract the right people in other organisations. If a company has to pay higher wages to attract and keep their original staff, this will affect the profits of the company if they want to keep the right people in their business. If a company continues to this they may become out of business as trying to keep their employees to make their business have a good reputation. In conclusion I think that each internal and external factor in human resource planning is very important when coming to running an organisation. The human resources department in every organisation needs to consider all these factors and how it might affect the business overall by following these factors of not follow these factors.
If the businesses do not take into account all of these factors their business will not be a success.