Managers of any business may be asked to forecast their staff requirements. They will do this on the basis of past, present and likely future requirements. Work-study techniques Over the years much work has gone into work-study. Work-study specialists work out how long various jobs take using available machinery and equipment. Provided they know what output/sales are likely to be, they can calculate the numbers of employees required and the hours they will need to work. Supply side
If Marks and Spencer is to work out the supply of labour available the company must examine the numbers of people available to work how long they can work for, their ability to do the required jobs, their productivity (output per head) and other factors. Human Resource Planning (H. R. P) is the process of forecasting the workforce requirements of the business for future years. It looks at how many employees that Marks and Spencer will require in the future, as well as the type of employee that will be required (e. g. graduate trainees, skilled-manual and supervisors).
H. R. P. also ensures that the ‘right’ employee is in the ‘right’ job, to ensure maximum efficiency and effectiveness of the workforce. Clearly the process of H. R. P. requires that the business make estimates of the number of workers that it believes it will require at all levels in the business in the future. This can be done in a number of ways: 1) Using past data (e. g. if the workforce has grown at 4% per year over the past 3 years, this trend may well continue).
2) Analysing the expected levels of customer demand and sales (e. g. more employees will be required if the number of customer orders is estimated to rise significantly). 3) Estimating the level of labour turnover. For example, if the number of employees that are expected to leave the business next year is 50 (due to retirement or transfers), then the business will have to recruit many new employees to replace those that are leaving. 4) The views of the management (the management are often in the best position to estimate the number of new employees that will be required in their department or division).
5) Expected changes in working practices. For example, if a manufacturing business is wishing to change its production technique from labour-intensive to capital-intensive, then it is not likely to require many new employees in the future. It is possible that a business may decide to meet any requirements for employees at the supervisory and management levels from within the existing workforce. Promoting those employees who have already demonstrated their potential and effectiveness in their current posts can do this.
These employees have the advantage of already knowing about the systems and the routines of the business, but they would still require the relevant training and development in order to prepare them for their new, more senior positions. Alternatively, Marks and Spencer may decide to fill these (and more junior) positions from outside the business. There are a number of factors, however, that will affect the availability of external labour for a business: 1) The rate of unemployment in the area.
2) The extent of the infrastructure in the area (e. g.price and availability of housing or availability of public transport). 3) Government incentives and subsidies (paying the training costs for the business). 4) The availability of workers with the necessary skills and qualifications. 5) The number of competitors in the area. However, there are a number of problems associated with Human Resource Planning, including: 1) Will the ‘new’ employees mix effectively with the existing workforce? 2) Changes in the external environment (e. g. a recession) could lead to the business having to make redundant several of the recently appointed employees.
It will always be difficult for Marks and Spencer to accurately forecast the number of new employees that it will require, because both the business-world and the internal requirements of the organisation are very dynamic. 2. 0 Internal and external labour market information Internal labour market The internal labour market deals with Marks and Spencer looking to employ people within the business. They can be done by employees get promoted to higher positions or move to different stores. It can also plan to its workforce.
Weather Marks and Spencer can meet its future workforce requirement from existing employees may depend on a number of factors. An example of this is when Marks and Spencer promote a member staff to a higher position. 2. 1 External labour market This is when Marks and Spencer look to plan to employ workers from outside the organisation. There are also local and national factors that have to be taken into account by Marks and Spencer when planning its external employee requirements. Marks and Spencer would be interested in the local unemployment rates.
Unemployment is the internationally agreed definition of unemployment. The International Labour Organisation – an agency of the United Nations, recommends it. Under ILO guidelines, all people aged 16 and over can be classified into one of three states: in employment; ILO unemployed; or economically inactive. Fig 1. 1 This data is from the official national statistics UK site Above you can see that the unemployment rate shows that, the unemployment is low. Marks and Spencer would also look at the employment rates.
Employment Statistics on employment tell us how many people are employed, the sorts of work they do, there working patterns, as well as the number of jobs and the industries Fig 1. 2 This data is from the official national statistics UK site Above you can see that the employment rate by age is going high. Marks and Spencer may also be interested in the pay and earning of people. Earnings are a measure of gross remuneration people receives in return for work done. It includes salaries and bonuses but does not include non-monetary perks such as benefits in kind.
Fig 1. 3 This data is from the official national statistics UK site On the graph whole average earning is show that it is average pay. Marks and Spencer may also be interested in the vacancies that are available when they are looking to employ externally. A jobcentre vacancy is defined as a job opportunity notified by an employer to a jobcentre or careers office (including ‘self-employed’ opportunities created by employers). Fig 1. 4 This data is from the official national statistics UK site Above you can see that there is an increasing amount of vacancies.
In Marks and Spencer they also give a short test in English and maths before they employ staff. The qualification required by Marks and Spencer is usually GCSE Maths and English. In Marks and Spencer they can look at the government statistics of education in the local market. 2. 3 Analysis of how relevant labour market trends relate to the ongoing human resources planning of Marks & Spencer The relevant labour market trends are very important in human resources planning; because Marks & Spencer have to plan they are able to get right people suitable in the labour market.
The human resources planning have to forecast employees, so in the future Marks & Spencer may need more or less workers or worker with different skills. They use labour market trends, such as external labour market that show the amount of vacancies in a job centres this is shown in Fig 1. 4 they can see if they are able to plan to recruit. By looking at the education level of people Marks & Spencer, can see weather they are able to plan to employ people with the skills.
Once Marks & Spencer has decided on the number and type of employees it needs in future. The next step to ensure if they have the right people at the right time, to meet the work force planning requirements. A starting point for Marks & Spencer to analyses the current position of employees. This is likely to involve calculating the number of employee working in a particular job and identifying their category and function. It may also mean gathering information on their age, length of service, qualification and performance results.
If Marks & Spencer wanted to employ managers may look at the number of graduates on its staff or may look at the amount of graduates that are unemployed this is shown in Fig 1. 1, so they can plan to forecast. It may also be useful to look at the amount of people leaving when planning to new staff; this may be done by the percentage wastage rate. This shows the amount of employees leaving as a percentage. When planning to recruit from external labour market the local employment of age trends in Fig 1. 2 of the amount of people employed, will indicate how mush people are working age group in certain regions.
The unemployment trends will help planning when it gives indication of the general availability of labour and suggest weather it will be easy or difficult to recruit. It is also important to find out more about similar business locality that have been laying off workers. Often when a major employer closes down or discards labour, this provides an opportunity for Marks & Spencer which are able to employ the workers who have been made redundant. These employees might have the right sort of skills or transferable skills that can be applied.
