A well written, detailed assignment which meets the criteria for P1, P2 and M1 - Unit 16, Human Resource Management in Business. BTEC Level 3 Extended Diploma in Business.
P1 - Describe the internal and external factors to consider
when planning the human resource requirements
of an organisation
P2...
Human Resource Planning and Employee Skills within Tesco
I have been asked to compile a report for HR Solutions which will undertake research on
manpower planning and skills analysis within their organisation. The findings will be
included below. The report will include;
Describe the internal and external factors of the organisation and how they impact
on human resource planning within your chosen organisation (P1)
Describe how the skills that employees require to carry out jobs in the organisation
are identified (P2)
Explain the overall importance of human resource planning within your chosen
organisation (M1)
This task provides evidence for P1, P2 and M1
P1 + M1
Introduction
Human Resource Planning is the planning of labour which is required for the future. For
example, an organisation such as Tesco will need to work out the skills their employees are
required to have as well as how many employees the company needs to operate efficiently
and effectively. Human Resource Planning is extremely important as it helps a business to
meet its aims and objectives and allows a firm to meet its goals more easily, something
Tesco has done successfully. An example of Human Resource Planning carried out by Tesco
would be their strategic plan to hire 20,000 customer service staff in 2012. Tesco’s way of
Human Resource Planning is based around many issues relating to the organisation; such as
to increase profits, to improve the service they provide and to become more competitive
and grow their market share in the retailing industry.
Findings
Internal and external factors in relation to Human Resource Planning
There are different factors which affect the planning of a business. These factors may be
internal or external.
Internal planning factors mean things going on inside the organisation which will impact on
the human resource requirements in terms of numbers and skills required. An example of
an internal factor would be organisational needs. Organisations are constantly changing and
their human resources need to be able to adapt. The demand for products will affect the
number of employees needed in certain roles. For example, when a Tesco store proves to
be particularly busy, they will have to recruit more staff to accommodate the amount of
customers. Three internal planning factors include;
1. Organisational needs. Organisations need to plan for new products and services and
make adjustments either reducing the number of employees of increasing the
number of employees. Tesco have recently introduced new products and services
such as Insurance/Banking and Opticians and this will require specialist knowledge
,Conor Cunningham P1 P2 M1
meaning Tesco will have to recruit specialised staff who know all about the different
departments. Tesco has expanded by considering new markets and expanding into
different countries. They are a company which are constantly targeting different
types of customers through developing new apps and by introducing new shopping
methods such as click and collect, different types of stores and new technologies.
This will require different types of employees and Tesco will have to recruit the most
appropriate people to the certain job roles. Different departments will require
different staff such as people who possess excellent communication skills on the
shop floor, IT skills in the administration department and people who possess
product knowledge in the new departments which Tesco are always investing money
into. These organisational needs encourage Tesco to develop human resource plans
which help Tesco fulfil its aims and objectives and this will ultimately lead to a more
profitable and successful business. It’s extremely important for the human resource
planning that Tesco so that business needs can be met effectively. Specialised staff
may have to be searched for by the human resource department and by doing this
successfully, Tesco can improve their services in specialised services such as
insurance and banking. In this case, the human resource planning of Tesco has
fulfilled its purpose to recruit specialised staff to carry out a job to a higher standard.
2. Workforce profile. A workforce profile means a profile of the current staff. A
workforce profile will include age, gender, ethnicity, experience and personal skills. It
will help the Human Resource management in Tesco to make decisions with regards
to human resource requirements. Different people’s skills will be identified and
these people will be put into different departments which is best suited to them. An
example of workforce profiles being used in Tesco would be to show the age of all
staff. This will indicate to the manager when they need to recruit again if they feel
that people are coming up to the age of retirement. Another example of workforce
profiles being used in Tesco would help the manager identify the dominant gender
of their workforce. This would help with equal opportunities as the manager will be
more aware of the people they are recruiting, especially in this case, the gender.
Having a workforce profile on every member of staff will help Tesco become a more
successful organisation as decisions will be made much more efficiently and
effectively. It’s important for the human resource planning that Tesco update their
workforce profiles regularly as this will help the manager of each store see the
dominant gender, religion and race in the store. The human resource department
can then focus on recruiting people from different backgrounds so that it is evident
that Tesco is seen as an equal opportunities employer. Human resource planning
helps Tesco fulfil its purpose to have an environment which has people from all
different walks of life, from different religions and ethical backgrounds.
3. Skills requirement. Evaluating and assessing the skills of the current workforce in
Tesco is an essential 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 extremely important in a company like Tesco as it is extremely
, Conor Cunningham P1 P2 M1
labour intensive. As the nature of the type of work changes, so do the skills required.
For example, people in the sales department will have to have selling skills. Whereas,
people in the marketing department will have to have marketing skills and ICT skills,
more so than selling skills. As Tesco look at the skills of different employees, they can
place employees into their best suited area of work and this ultimately leads to a
better standard of work and subsequently higher sales and profits for the company.
Tesco would need to measure the skills levels in order to plan for future training and
recruitment. It’s important for the human resource planning that Tesco keep an eye
on the skills required for the different jobs within the business. This will help them
place particular staff into areas which are best suited to their strengths and this will
mean business operations are carried out to the highest possible standard. Human
resource planning in this case helps Tesco to fulfil its purpose in having a working
environment which have all the necessary skills to carry out the job to the highest
standard.
External planning factors mean things going on outside the organisation that will impact on
the human resource requirements in terms of numbers and skills required. Examples of
external planning factors will be looked at below;
1. Supply of labour. Tesco will need to consider supply of labour. This will include
looking at the current situation in the local, regional and national labour markets
and the trends within these. Tesco may be interested in the number of people in the
working age group and the trends, unemployment rates and the trends within this
and the average hours worked and the trends in this. Tesco is a multinational
company and may also look at supply of labour trends in foreign countries (in the
international labour market) in order to determine if they could recruit workers
from those countries. Tesco will typically recruit locally, but will explore other places
and find out the best supply of labour for their company so that they remain as
competitive and successful as possible. Its important for the human resource
planning that Tesco consider who is the most suitable employees for each task
within the organisation. The supply of labour is paramount in any business and if
Tesco’s human resource department plan this effectively, the business is more likely
to be successful as jobs will be carried out to a higher standard and customers will
see this improvement in products and services, making the business more profitable
as sales will increase. As a result of Tesco looking for the best supply of labour, the
human resource planning of the business fulfils its purpose to have the best type of
staff suited for particular jobs.
2. Cost of labour. Labour costs are an extremely important element in human resource
planning, particularly in a labour intensive company such as Tesco. As a result of
Tesco monitoring labour costs, they will be more successful in the future planning of
the business. Tesco should keep a close eye on the current situation of the cost of
labour and future trends which may become apparent. An example of a recent
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