In this assignment I will discuss the internal and external factors to consider when planning human resource requirements. I will also discuss how employee’s skills are identified and explain why human resource planning is important to a business.
An organisation such as Apple may in the future look at different ways to widen their market by thinking of an idea that hasn’t been touched upon yet. If Apple decided to do so then Apple would require hiring certain staff for the job. These employees may need to speak another language or possible be able to work in a completely different location. Before hiring any of these employees Apple will have to plan how they will get these employees in and think of the factors that will affect this. There are two types of factors which are internal and external.
One factor could be organizational needs. If the organization changes then the need for employees will increase. For example the demands for a product or a service will have a detrimental effect on the amount of employees required. An organization will have to plan for the release of new products and see whether they will need more staff. An organization will make changes by either contracting or expanding. Contracting is the reduction in the number of employees and expanding is the increase in the number of employees. Therefore if the organization had made a change and the product or service required a high demand by customers then they would have to hire more employees. Before they hire people they will have to look at what skills you will require to carry out the role. If the organization needs people to carry out the jobs then the business is labour intensive. If the organization needs more machinery to meet the high demands then the business is capital intensive. For example Apple have just launched the new iPhone 4s, there was an extremely high demand for this phone. This will have resulted in Apple possibly having to both invest in machinery and employees. The machinery could make the phones and the employees could serve more customers at the Apple store and also speed up the process of sales. If the business is capital intensive then they will require trained staff that can use the machinery. They will not need large amounts of new staff like labour intensive because labour intensive largely uses employees in the production. This means that certain skills will be required in different sorts of organizations. Workforce profiles are also another factor that could help in human resource planning. A workforce profile will include age, gender, ethnicity, qualifications and skills. These work force profiles will help the business or organization to pre-empt any possible problems. Business can see the age of an employee this will help because they can see what people are more than likely to retire. If they had a group of people all retiring at one point then the business would need to counteract this and employ more people. The workforce profile is an advantage to businesses because the business can then plan ahead. It will also allow the business if needs be hire and close the age range within their organization. Skills and qualifications will also be at an advantage to a business because they can see what employees have and if they will require any more qualifications or skills the carry out their role. The business can then see that if their employees have not got the skills or qualification then they could train their employees up.
One external planning factor is the supply of labour. The supply of labour relies on the unemployment rates and types of skills required. Meaning that if so many people are being made unemployed then there future employees with the skills a business may need. Due to unemployment this allows the business to have more employees to choose from. Another factor is the cost of...