The Human Resource Planning Process for the Magnificent Miniature - Essay Example

Colours R Us’ Case Study Design a process for recruiting and selecting the new employees for the “Magnificent Miniatures” line. The Human Resource(HR) planning process for the Magnificent Miniature lines should occur in three stages, according to Bateman and Snell (2007, p.322), who suggested that the HR process should start with planning, followed by programming, and evaluating. Planning is the stage when HR managers determine the business plans of a particular organization in order to plan its HR requirements. This involves the analysis of organizational goals viz a vis HR requirements and the resources that have to be made available in a given time in order to ensure the continuous and uninterrupted business operations of the company. Programming, on the other hand, is the actual implementation of the HR plan. Programming involves “recruitment, training, and lay-offs” (Bateman and Snell, 2007, p.332). The third stage, which is the evaluating stage, measures the effectiveness of HR plans in “producing the results needed to contribute to the organization’s business plan”. It measures such indicators as “productivity, quality, innovation, satisfaction, turn-over, absenteeism, health” (Bateman and Snell, 2007, p.322). It is assumed that the company “Colours R Us” has already undergone planning as the first stage of its HR planning process for its Magnificent Miniature lines. It has determined that it will need 30 persons for its latest product ordered by its main client, the Home Style Innovations. Probably, the company has already conducted a demand forecast, where it determined “how many and what type of people are needed” for this new product line. Before the company starts its recruitment and selection process, it must have a thorough job analysis for the positions being opened. Job analysis, as defined, is where HR managers determine what the job is all about – including the tasks involved, the duties it entailed, and the accompanying responsibility (Bateman and Snell, 2007, p. 324). This is what is usually referred to as job description. Job analysis also determines the corresponding human requirements to match the specifications in the job description, such as “skills, knowledge, abilities, and other characteristics needed to perform the job” (Bateman and Snell, 2007, p. 32). This set of characteristics which is required from a prospective applicant is referred to as job specifications. When the company has already done a thorough job analysis, the programming stage of the HR planning can now commence. This stage begins with the recruitment and selection process. Recruitment is described by Bateman and Snell as the “development of a pool of applicants for jobs in an organization” (2007, p. 324). Accordingly, recruitment can be done either through internal or external recruitment. Internal recruitment considers applicants that are already employed by the organization, while external recruitment is conducted to get applicants from outside the company. Some of the advantages and disadvantages of internal and external recruitment are, The advantages of internal recruiting are that employers know their employees, and employees know their organization. External candidates who are unfamiliar with the organization may find they don’t like working there…. Recruiting from outside the company can be demoralizing to employees…Internal staffing has some drawbacks. If existing employees lack skills or talent, internal recruitment yields a limited applicant pool, leading to poor selection decisions. Also, an internal recruitment policy can inhibit a company that wants to change the nature or goals of the business by bringing in outside candidates…External recruiting brings in “new blood” to a company and can inspire innovation. (Bateman and Snell, 2007, p. 324-325) Selection, on the other hand, is the process of “choosing from among qualified applicants to hire into an organization” (Bateman and Snell, 2007, p. 326). Selection “builds on recruiting and involves decision about whom to hire” (Bateman and Snell, 2007, p. 326). Among the selection tools being used by most companies include applications and resumes, interviews, reference and background checks, personality tests, cognitive tests, and performance tests. As mentioned above, recruitment is the process of attracting qualified individuals to apply for vacant positions in the organization, while selection is the process of deciding whom to hire from a pool of applicants. Selection involves the process of gathering information about the applicants to hire the appropriate candidates for the job. For the new product line of CRU, this recruitment and selection process will require investment in time and money so as to attract qualified applicants within a reasonable period of time and at minimum cost to the firm – the right persons at the right time. For the Magnificent Miniature lines, the following recruitment and selection process design is being proposed: A. Recruitment 1. The job analysis indicating the job description and job specifications for the new positions for the Magnificent Miniatures line is reviewed by the line managers and approved by the board of CRU as basis for the recruitment and selection process. 2. Sources of applicants will be determined. Applicants can be sourced internally or externally. However, sourcing applicants internally will create a ripple effect, where transferring an employee from his original unit to the new manufacturing line will only create another vacancy, leading to more job movements. 3. Job vacancies will be announced internally through postings at bulletin board or through company newsletters. The same will be announced externally through advertisements in local or national newspapers, local cable TVs and radios, and through company website. Job recruitment websites are also possible avenue for job opening announcements. Middle level managers may also be recruited through executive search companies. In order to attract more prospective candidates, CRU may also participate in job fairs where prospective walk-in applicants may be immediately interviewed for initial screening process. 4. Vacancy announcements will contain job description, job specifications, person to be contacted when replying, email address for on-line applicants, deadline for submission of applications. 5. At least two weeks will be devoted for pooling of applications. Evaluation of applicants, or the selection stage, will commence after a suitable number of applications have been received, or after two weeks from the time of the job opening announcement. B. Selection 1. A selection criteria is devised which will be reviewed and approved by the line managers. An example of selection criteria which assign percentage weight on applicant’s qualifications would look like the following: Criterion Maximum Points Education/Training 25% Work Experience 25% Cognitive Tests 25% Personal Interview 25% Total 100% 2. After sufficient number of applications has been received, initial screening will be done by the HR unit. This step calls for reviewing the resume submitted and culling out those applications which do not match the qualifications required for the job. 3. Short-listed applicants would be contacted to take appropriate examinations to be administered by the HR unit. Those who will pass the exam will be immediately interviewed. 4. The interview process will involve the line managers in order for them to assess the capabilities of the prospective applicants. This will also help ensure that the applicants being recruited and assessed by line managers have good chances in adapting to the company’s culture and work environ, since line managers have been involved in the selection process. 5. Applicants will be ranked based on the scores received. Applicants receiving passing scores and/or ranked among the top percentile of applicants will be hired for the new product line of CRU. 2. Design an Induction Programme for new employees on the “Magnificent Miniatures” line. Induction programme is meant to make the newly hired employees adapt to the corporate culture and new work environment. Induction programme is vital to newcomers on any particular company as it orients employees on company policies, and in companies like CRU, it gives briefings to employees as to health and safety procedures in production/manufacturing sites. Induction programme informs employees of “company background, existing policies or procedures and other job-related information” (Rodriguez and Echanis, 2001, p. 271). Moreover, induction programme “develops a sense of pride and loyalty to the company, create an awareness on who are company competitors, and avoid future misunderstanding about company policies, rules and procedures” (Rodriguez and Echanis, 2001, p. 271). The British Coatings Federation, in describing its induction programme, emphasized the importance of such procedure in bringing in new employees to a particular organization. Its website stated that “people coming into the industry for the first time need a good introduction to company procedures on health, safety and environmental practices, as well as training in their chosen occupations” (Training for the Industry: 2007). An induction programme has been suggested by the British Coatings Federation and would seem appropriate and adaptable for the purpose of Magnificent Miniatures line of products: HALF DAY SITE AND SAFETY INDUCTION PROGRAMME Collect from main gate, take direct to general stores for PPE fitting. Complete medical questionnaire. Introduction to the company Refinish paint manufacture Site safety rules and procedures. Emergency procedures & evacuation points Site road safety rules Notices and signs Rules on smoking Accident and incident reporting Check understanding – Questionnaire The Occupational Health Department – Medical facilities. Skin care at work Check understanding – Questionnaire Personal Protective Equipment procedure. Light eye protection Standard body protection Hard hat policy Safety footwear Hand protection – The correct gloves for the task Check understanding – Questionnaire Issue locker - Amenities block familiarization. Locate evacuation points. Meet Team Leader and work members – view job. Lunch Source: The British Coatings Federation website 3. Show how the line managers will be involved in the recruitment and selection process and the induction programme for “Magnificent Miniatures. HR management functions have been steadily changing over the years, along with other changes brought about by technological developments and the changing nature of the labor market (Smilansky, 1997, p. 2). There is a mounting pressure not only to cut overhead cost by reducing labor but also by “reducing radically the relations between staff and line jobs” (Smilansky, 1997, p. 1). These brought about such concepts as “decentralization, delayering, and empowerment,” which eventually increased the HR-related tasks of line managers. According to Smilansky, these developments have necessarily reduced HR unit’s roles and gradually shifted the tasks to line managers who were in reality “engaged in day to day service provisions with their staff” (1997, p. 2). Line managers necessarily have to be involved in the HR planning process as an effective strategic approach to company objectives. As suggested above in the design for the recruitment, selection and induction programme, line managers are involved in each step in order for them to be able to have a say on the quality of the personnel being employed by the company. At the early stage of the HR planning, line managers are already involved in the job analysis when they review and approve the proposed job analysis by the HR unit. At the selection stage, they are involved in the assessment of the candidates when they conduct interview to screen the applicants. And equally important is the involvement of line managers during induction programme, when new hires are briefed and introduced to the company. New employees get to know the persons running the company, and company officials, managers, and supervisors get to know the new hires who will be working for and with them. 4. Explain why features of the recruitment, selection and induction for “Magnificent Miniatures” are expected to have a positive impact on retention. There are numerous and varied factors that affect retention of employees in organizations. According to McCabe, “motivating and keeping employees requires effective management practices and strong leadership skills” (Motivating and Retaining Employees:2007). He cited several factors that are essential to retain employees in organizations. These factors point out to one general common factor and that is the employee’s sense of stability, predictability, and recognition of his work. Among the factors cited by McCabe were: 1. clear terms of employment upon hiring 2. a positive corporate culture and pleasant work environment 3. a good operating system and adequate training 4. employee recognition 5. sense of autonomy and empowerment 6. proper tools and support to do the job 7. performance-based compensation plan On the other hand, there are factors that were once believed to be the main motivating factors to stay in a company. In a study conducted by Dr. David Finegold of the University of Southern California and presented to the general public in 2001, a multiple regression analysis indicated that there was “no positive correlation between work/life balance and employee retention” (Retaining Key Staff:2001). While surveys among information technology professionals tended to indicate that retention factors included job security, financial rewards, career satisfaction and degree of influence over work, the same employees in actuality valued other factors than what they indicated in the survey, such as career advancement, financial rewards based on company performance (stock options), innovation, and risk (Retaining Key Staff:2001). In the case of the proposed recruitment and selection process for the Magnificent Miniature line, it is expected that with the streamlining of the process, it will significantly impact on the retention of employees in the company. Firstly, a thorough job analysis done by the HR unit, reviewed and approved by the line managers and the board of CRU, should thoroughly spell out the job required and the personnel to match the job. This is the first step towards identifying, recruiting and selecting personnel who will match the job and will have good chances of staying in the company. Secondly, line managers will be involved in the selection itself. This will surely create a positive impact on retention. According to Noe et al, a study of applicants being interviewed for prospective jobs would “tend to view line personnel as more credible than personnel specialists” or HR people (2000, p. 172). Thus, involving line managers in the selection process tend to increase the credibility of the company, making applicants feel confident towards their career growth within the company. Thirdly, in the induction programme, employees are warmly welcomed by the company where thorough briefing about company policies, job benefits and rewards, work environment, etc will be given them, allowing them to visualize a bright future ahead of them --- in terms of career growth, financial rewards, and a comfortable working environment. 5. Report your finding to the Board on improving retention in all areas of the business. Among the facts that were cited in the case as contributing to the overall high turn-over and difficulty in retaining employees of CRU particularly among women and those working in shifts in the manufacturing and packing units were: the industrial estate, despite being readily accessible to most workers, is not a particularly attractive place to work, as there are no shops or other amenities in the area. there is no childcare provision nearby the estate is not a pleasant place to be when the late shifts finish the other employers on the estate are mainly call centres or software houses who tend to offer higher rates of pay than CRU (therefore there is competition for labor supply). Liverpool is following a national trend of relatively high employment and CRU is finding it increasingly difficult not just to attract and recruit but also to retain staff. Based on the above reasons, the company can implement several measures that would improve the working conditions within the company. For example, it is very apparent that women could not stay for more than three months on the average probably because of the absence of child care facilities within the company or even within the area. It was also cited that the place, while accessible to public transport and with ample parking spaces for those who drive cars to work, is not quite pleasant to be in at past the evening shifts. CRU has, to improve its retention abilities, invest on facilities improvement and other related activities. The following remedies are therefore suggested: Current conditions Proposed solutions The industrial estate, despite being readily accessible to most workers, is not a particularly attractive place to work, as there are no shops or other amenities in the area. Provision of company store which sells basic items for household such as grocery supplies, school supplies, etc. This will especially attract working mothers who have to go to grocery after work to pick-up supplies for their family/household. The company can also provide gym/sports facilities/recreation room as added incentives for employees. There is no childcare provision nearby. The company can provide a child care center in order to attract working single parents. However, this may or may not be provided for free by the company. This provision is meant to ease pressures on working single parents. The estate is not a pleasant place to be when the late shifts finish (probably because of safety issues, or availability of public transport at past 11 pm) Provision of shuttle service to ferry employees to nearest and safest area outside the estate where public transport can be easily accessible to employees. Provision of sleeping quarters and conditions for stay-in employees may not be a remote possibility as well. The other employers on the estate are mainly call centres or software houses who tend to offer higher rates of pay than CRU (therefore there is competition for labor supply). The only factor to consider here is the economic value of labor being rendered by prospective applicants. Naturally, employees would tend to favor companies offering higher pay. However, CRU can compete by providing better amenities, better benefits, and better working conditions and company facilities. Liverpool is following a national trend of relatively high employment and CRU is finding it increasingly difficult not just to attract and recruit but also to retain staff. CRU has to consider the above suggestions if it is to attract and retain employees to the company. While the above improvements in the working conditions and other amenities to be provided necessitate investments, a cost and benefit analysis must be done since such investments may give good returns in the long run in terms of employee attraction and retention to the company. References Bateman, T.S. & Snell, S.A. 2007 Management: leading & collaborating in a competitive world. New York: McGraw-Hill McCabe, C. E. Motivitating and retaining employees. 2007. ZeroMillion.com [Online]. Available: http://www.zeromillion.com/business/employee-motivate.html [25 November 2007] Noe, R.A., Hollenbeck, J.R., Gerhart, B., and Wright, P.M. 2000. Human resource management: Gaining a competitive advantage. United States: McGraw-Hill Nielsen, J. Retaining Key Staff: What High-Tech Employees Say versus What They Do. Jakob Nielsen’s Alert Box March 4, 2001. [Online]. Available: http://www.useit.com/alertbox/20010304.html [25 November 2007] Rodriguez, R.A. & Echanis, E.S. 2001. Fundamentals of Management. Manila: Diwata Publishing Smilansky, J. 1997. The new hr. London: International Thomson Business Press Training for the industry: Key and core skills training for the industry. 2006. The British Coatings Federation. [Online]. Available: http://www.coatings.org.uk/default.asp?edit_id=386&nav=385&branch=2 [25 November 2007] Read More