Question number 4

Human Resource Planning 3-Human resource planning 1-Definition of hrp The process that links the human resource needs of an organization to its strategic plan or objective. Also to ensure that staffing is sufficient, qualified, and competent enough to achieve the organization's objectives. HR planning is becoming a vital organizational element for maintaining a competitive advantage and reducing employee turnover. 2- Human resource planning process The process of human resource planning involves assessing the already existing workforce by analyzing individual employee's skills to see if they are a valuable part of the company future. Ultimately, this may include the development of training and retraining strategies. In order to keep up with a competitive market, organizations use human resource planning to create new and innovative strategies designed to recruit new talent and improve employee retention.

3- Application of Hrp to address surplus and shortage Human resources forecasting attempts to determine or plan the demand of resources for the company. It predicts the companys labor demand and supply so that it will not face with shortage problem. Based on the prediction, the company will plan ahead so that the workers and supply will always be in hand and no problems along the way. Planning ahead will also help company reduce challenges and problems.

4- Strengths and limitations of hrp Strengths Evaluating Existing Employees One of the stages of creating an HR plan is to evaluate present employees. This stage is a type of strength for the company, as problematic employees are identified and hardworking employees are recognized. Knowing which employees struggle can help HR plan ahead so the skills and capabilities of the employees are put to good use elsewhere. Internal Opportunities Another benefit of HR planning stages is that present employees are often considered before a new worker when internal opportunities arise. This saves the company time and money, because spending to find new employees becomes unnecessary. It is also a positive stage for existing employees, since it is the qualified and hardworking who get considered for promotions. Limitations 1. The future is uncertain The future in any country is uncertain. For example there are political, cultural, technological changes taking place every day. This effects the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding factor. It is not a sure factor, as changes cannot be avoid. Thus, companies cannot rely too much on it and do every action according to the changes made around them. 4. Time consuming activity For human resources planning, they need to collects information from all departments, regarding demand and supply of personnel. Therefore, this porcess is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time .

Relationship to HR Strategy Surplus is defined as more than is needed, desired, or required. When a company faces this problem, they have a few choices to deal with it. First, by Internal recruitment, where job or vacancies in certain departments are filled by the workers from the company itself, no new or outside workers are recruited. Besides that, company can also give choices to the employees for in compensation, where employee that choose to resign earlier, will get compensation such as bonuses or such. An early retirement will also

help, especially for employees who had work for so long and are looking for an early retirement. These strategies will help both the company and the employees. Meanwhile, Shortage means a state or situation in which something needed cannot be obtained in sufficient amounts. When a company or organization face a shortage in labour, it will immediately affect the companys productivity. Thus, the company should apply external recruitment. This is when the company recruit new workers friom outside to fill in the job vacancies in the company. Besides that, for the employees, often training should be made as it will help increase the employees skills and also increase the companys productivity. Besides that, to motivate more workers, incentives should be offered to the employees as this will motivates them to work harder and indirectly solve the shortage of product

OBJECTIVES OF HUMAN RESOURCE PLANNING To reduce imbalance in distribution and allocation of manpower in organization for various activities. To ensure that the organization is well-equipped with the required Quantity and Quality of manpower on a sustained basis. To anticipate the impact of technology on jobs and resources. To ensure optimum contribution and satisfaction of the personnel with reasonable expenditure. To recruit and retain human resource of required Quantity and Quality. Need for Human Resource Planning Shortage of Skills: These days we find shortage of skills in people. So it is necessary to plan for such skilled people much in advance than when we actually need them. Nonavailability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning. Frequent Labour Turnover: Human Resource Planning is essential because of frequent labour turnover which is unavoidable by all means. Labour turnover arises because of discharges, marriages, promotion, transfer etc which causes a constant ebb and flow in the workforce in the organization. Changing needs of technology: Due to changes in technology and new techniques of production, existing employees need to be trained or new blood injected into an organization. Identify areas of surplus or shortage of personnel: Manpower planning is needed in order to identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be re-deployed, or if there is a shortage new employees can be procured. The process of HRP involves various steps they can be explained with the help of the following diagram.

Advantages of HRP/need/importance/role/benefits 1. Anticipating future requirement:Thru this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future. 2. Recruitment and selection process:The recruitment and selection process is a very costly affair for a company. Many companies spend lots of money on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not. 3. Placement of personnel:Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant. 4. Performance appraisal:-

HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process. 5. Promotion opportunity:HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner. Limitations of human resource planning Although HRP is a very advantageous method it has some limitations which can be explained as follow; The future is uncertain:The future in any country is uncertain i.e. there are political, cultural, technological changes taking place every day. This effects the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding factor. We cannot rely too much on it and do every action according to it. Problem of surplus staff:HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company. Time consuming activity:HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time. Expensive process:The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc. company has to spend a lot of money in carrying out the activity. Hence we can say the process is expensive.

Question 5
Performance Related Pay
The definition or concept of a performance related pay is when an increase in salary or a bonus is awarded to an employee, usually for above average performance. With this method, employees that are above average or in other word, those who are hardworking will get an increase in their pay or salary, as compared to the employees that are just average. Performance related pay systems have several advantages and disadvantages. It is not an appropriate system for all businesses to use.
Performance related pay is when. Under a performance related pay system, an employee that is performing about average may get a percentage increase in their pay that is greater than an employee that is working at an average level. This system is usually used where piece rate systems are not appropriate or able to be used because the work may not be able to be measured in a very precise or accurate way. A decision on whether to award a salary increase or a bonus in accordance with a businesss performance related pay scheme is usually made following an appraisal. This appraisal will assess the performance of an employee and the extent to which their individual targets have been met. Performance related pay systems have several advantages and disadvantages. It is not an appropriate system for all businesses to use.

Advantages of Performance Related Pay

When employees know they are judge based on their work and it affect their salary, it will encourage employees to work harder and to the best of their ability, to help the company to achieve their maximum target.
. Besides that, the motivation of employees will be increase as all employees wants to get the best salary for them, which may lead to a reduction in staff turnover and absenteeism. Performance related pay can be a good system for getting employees to work towards company objectives. This would be done through establishing individual targets for employees at appraisals that are linked to the businesss aims and objectives.

Disadvantages of Performance Related Pay

With this system, it may cause serious conflict between employees . this is because not all employees will get the same pay or bonuses for their effort, thus with conflict between the employees, it will also affect their work, leading to ineffective product. Besides that, this system has on motivation is uncertain. This is because bonuses are usually a very small proportion of an overall salary. Hence, employees are not keen or motivated enough to be their best in their job. Moreover, it is a difficult and a challenging task to measure employees work as every job scope is different. Therefore, different type of assessment is needed. Plus, who are qualified to measure or judge the work of the employees. These remain as the major problem for this system. Another downside of this system is that it does not promote group work as every employees are aiming for their own success.