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M1- Explain why human resource planning is important to an organisation.
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M1- Explain why human resource planning is important to an organisation.
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Benjamin Richardson unit 16 Human resourcesM1)
Task 1c)
Introduction
Human resource planning is one of the most essential elements of running and keeping a
successful business. Employees are also one of the main reasons that Morrisons are so huge
and planning which employees are hired will determine the short term and long-term health
of the business. Human resources planning must be taken into consideration as having staff
being able to compete their duties efficiently and effectively will be a great asset for
Morrisons. Additionally, staff being able to quickly adapt to changes and adding new skills to
their arsenal will allow Morrisons to achieve their aims and goals quicker than usual.
To effectively plan human resources the skill set a staff member has should correlate as
closely as possible to the job they are doing to make sure that the job is done to the highest
standard. The is important so that there as little as skill gaps as possible as otherwise
Morrisons targets may not be met as quickly as they would like them to be. Furthermore, if
Morrisons know the shortages of skills that the staff possess then they can set up training
courses or other resources staff can use to gain the skills needed so that Morrisons can
reach their targets and goals quicker.
Demand for products
To ensure that demand can be met human resources will need to plan how many staff they
need to hire or let go. For example, during holiday periods such as Easter and Christmas,
demand will be a lot higher than usual. This means that Morrisons would have to plan how
many new staff they will need to hire for these periods and what contracts they will all be
on. Many other external affects may help Morrisons such as more housing being built near
the stores or less import tax which would means lower prices and possibly resulting in more
demand. In these instances, Morrisons would again have to plan for this and decide whether
they need to hire more permanent staff and how many. On the flip side, if a competitor such
as Tesco opened up nearby, demand for Morrisons products may drop significantly so staff
may need to be laid off which the human resources team again would have to figure out
who has to go and how many people leave.
On the more analytical side of things the human resource team would have to look into the
surrounding areas of the stores and see what the population statistics in areas are looking
like. For example, if the population is growing, they would have to look at how fast and
adjust staff levels. If the population was growing fast, human resources would have to
create a plan of when they need to hire staff to keep up with the new increasing demand for
Morrisons products. If staff levels are not kept up to a high enough level then Morrisons
could risk customers getting unhappy when shelves are not stacked fast enough or there are
not enough employees at the checkout.
Planning a hiring process to keep costs down
Following on from the increased demand if the demand is so great that Morrisons would
need to hire hundreds more staff they would need to write a plan of who to hire and what
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