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Term Paper:
Environmental Factors and Challenges
Affecting Human Resources Planning
Function in Commercial Bank of Africa
Tanzania Limited
Prepared by:
MAUREEN GIDEON
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Human Resources planning and Management Term Paper
5 Conclusion............................................................................................................................ 13
1 INTRODUCTION
This paper is presented to explain the human resources planning function with a particular focus on the
environmental Factors and Challenges Affecting Human Resources Planning function in Commercial
Bank of African (Tanzania) Limited.
There are growing changes and challenges in the society in which we live and in which our work
organisations operate. There are also growing changes and challenges taking place inside work
organisations themselves. These changes and challenges are having an impact upon the management of
people inside the work organisations and the performance of these organisations on the one hand, and
upon the environment in which work organisations must exist on the other hand.
2 OVERVIEW OF HR PLANNING
Planning is very important to our everyday activities. Several definitions have been given by different
writers what planning is all about and its importance to achieving our objectives. It is amazing that this
important part of HR is mostly ignored in HR in most organizations because those at the top do not know
the value of HR planning. Organizations that do not plan for the future have less opportunities to survive
the competition ahead. This article will discuss the importance of HR planning; the six steps of HR
planning that is : Forecasting; inventory, audit, HR Resource Plan; Actioning of Plan; Monitoring and
Control.
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Human Resources planning and Management Term Paper
(1)
(3)
(2)
Key: (1) Into the organisation (2) Within the organisation (3) Out of the organisation
Importance of HR Planning
The importance of any management function can best be discussed from the point of view of the
advantages derived from its effective and efficient performance. Accordingly, a good and well
implemented human resources plan enables the organization to reap the following major benefits:
(1) It enables the organization to maximize the utilization of its human resources.
(2) It enables a better achievement of the organization’s objectives by ensuring that management efforts
are made in good time to avail the requisite labour power for the organization’s performance
processes.
(3) It enables the organisation to economize on its recruitment function.
(4) It enables the organisation to organize successful exit plans for the advantages of the employees and
the organisation.
(5) It increases the organisation's information base to the advantage of the human resources department
and other departments.
(6) It enables the organisation to make a more effective and efficient use of the labour market
(7) It facilitates career or personal development.
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Human Resources planning and Management Term Paper
CBAT human resources planning process is derived from organisation objectives. The size of the
manpower of CBAT depends on expected business volume. Each department is allocated target business
volume which they are to achieve during a year. Heads of departments are the onces who determine the
number of manpower required within each department thus forming the initial process of manpower
planning in the bank. After determining the number required, then they take their requirements to the
Human resources people for the facilitation of finding the required workforce and include them in the
overall organisation human resources planning. Human resources are involved in conducting internal and
external environment in order to incorporate them in their human resources planning.
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Human Resources planning and Management Term Paper
Commercial Bank of Africa (T) Limited (CBA) is an offspring of United Bank of Africa Limited (UBA)
that was incorporated in Dar es Salaam, Tanzania in 2001. UBA was fully owned by First American Bank
of Kenya Ltd. In 2005 First American Bank of Kenya Ltd, was acquired by Commercial Bank of Kenya
Ltd. After acquisition, in October, 2007 the name was changes to Commercial Bank of Africa (Tanzania)
Limited.
The bank’s objective is to provide banking services to corporate and businesses, private individuals,
government and non-government institutions, non-profit institutions and others. CBA is a profit making
institution while its strategic direction is based on its established.
Over the past 6years of its existence, the bank has grown significantly from a capital of USD 1.5 to USD.
4.0 million. The size of the bank also improved drastically from total assets worth TZS. 13.0 billion in
2005 to TZS. 146.0 billion at the end of 2009. Profitability of the bank is also one of the major areas of
improvement as the bank shifted from a loss to a profit making one. In 2008 the bank made a profit of
TZS. 1.7 billion, while in 2009 it made a profit of TZS. 2.08 billion.
CBAT is currently employing about 96 employees in various departments. CBAT expansion program is
to have more branches in 2010.
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Human Resources planning and Management Term Paper
CBAT is currently employing about 96 employees in various departments. CBAT expansion program is
to have more branches in 2010.
3.5 CBA Activities
• Corporate Banking
• Lending Solution – here they have asset finance, overdraft and term loans
• Trade Finance Services – they have letter of credit, documentary collection, bonds and
guarantee, Collateral management, post import loans, Export bills and invoice discounting,
Pre export financing
• Treasury and Institution Banking
• Treasury products and services
• Investment and deposits services
• Foreign exchange services
• Personal Banking
• CBA deposits and lending products
approach of discussing the two environmental camps by using the same names of elements.iii We have
adopted this approach because we are convinced that it is more straightforward for our readers. The
author has conveniently used this approach to teach this topic with great satisfaction for many years.
Employers must maintain consistent conversance with the changes and challenges in both
environments, as a basis for making correct decisions pertaining to the effective management of people in
their organisations. This conversance will enable employers to cope with and influence the external
environment to the best advantage of their organisations.
The internal environment is to an organisation more controllable than the external environment. By
effectively managing their internal environment, organisations acquire the basis and strengths with which
to influence variables in their external environment. Let us now proceed to discuss the elements in the
internal environment in detail.
4.4.1 The Physical Element
The physical element of the internal environment of CBAT consists of such items as size of the office,
lighting, humidity, heating, cooling, noise,
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Human Resources planning and Management Term Paper
CBAT has adequate size of their office to enable all employees to work comfortably. lighting, humidity,
heating, cooling are all well controlled and maintained to allow confortable environment. The building is
sound proof and no internal noise according to the nature of the organisation and other items that affect
the health, safety, and comfort of the employees at their workplaces. A good physical environment
contributes to higher employee morale, productivity, and reduces employee turnover. Managers must
take deliberate measures to create and maintain a conducive physical environment for their employees.
Consideration for a conducive physical element should be made when managers are designing
organisational buildings, deciding on location, and designing work processes.
4.4.2 The Technological Element
The technological element of the internal environment has a close relationship with the physical element.
It consists of the processes by which the different kinds of work in the organisation are performed. It also
comprises the machines, tools, and equipment that are used in performing work. These items affect how
the work must be designed.
CBAT has well equipped in the sense that each employee has telephone extension, computers, printers,
photocopy machines and banking software where by the office is well networked to reach every staff.
The type of technology employed directly influences interaction and interpersonal relations among
employees at the workplace. It determines the formation of work groups, and the degree of co-operation
or destructive conflict among the employees. Technology influences the levels of job satisfaction among
employees.
The type of technology employed by an organisation also determines how work is to be performed plus
the requirements or description of who does what and thus who earns what. It finally determines the size
of the manning levels in as much as it is a manning criterion in its own right.
Managers ought to take appropriate care in their choice of the right technology to use in the performance
processes of their work organisations. Modern technology increases work speed, accuracy, and output,
but in so doing, it also reduces the role of human labour in many work processes: it is for this reason a
sensitive matter which labour unions and even government seek to influence in work organisations. The
human resources department must therefore influence the organisation's choice or design of technology to
be used, due to its impact on human resources utilisation and welfare.
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Human Resources planning and Management Term Paper
create and maintain a favourable physical and technological environment that attracts and retains good
employees. The diligent work of its employees and the skilful management of its resources determine the
organisation’s financial strength.
According to the HR Head of CBAT, social environment is very conducive for employee to work and
interact comfortably and to increase productivity. All workers present themselves respectifully and with
high discipline. They are hardworking and results-oriented.
An organisation's social climate is created by personalities of their employees, but depends particularly on
the interest and initiatives of the management. An organisation's social climate does not automatically
become favourable to the employees and thus suitable for organisational performance. It must be created
and maintained by management.
A favourable social climate is one that is fair, objective, transparent, respectful, trustful, disciplined,
cheerful, loving, hardworking, progressive, and results-oriented, to mention just a few characteristics. A
favourable social climate should be distinguished from sheepish obedience, quietness, bootlicking
behaviour among employees. These attributes do not represent true peace and tranquillity; they represent
a deceptive social climate that is divisive and destructive to the performance and survival of the
organisation.
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Human Resources planning and Management Term Paper
CBAT is comprised of people of differing experiences, interests, behaviours and capabilities. CBAT has
low degree of organisational politics or "politicking", CBAT has high productivity with dynamic
activities which does not give chance to rumour mongering, and a high rate of employee turnover.
Organisational politics, which Mintzberg defines as "individual or group behaviour that is informal,
ostensibly parochial, typically divisive, and above all, in the technical sense, illegitimate - sanctioned
neither by formal authority, accepted ideology, nor certified expertise " is a negative but necessary feature
of organisational life, which managers must keep under strict control.v
A work organisation whose work environment has a high degree of organisational politics or
"politicking", usually has low productivity, a fragmented work force, intriguing, rumour mongering, and a
high rate of employee turnover, even if it may be paying its employees highly. The encouragement of
secret channels of communication and secret and shorter ways of transacting official business mainly fuel
organisational politics. If not skilfully diminished to minimum levels organisational politics are capable
of effectively displacing the official organisational structure, rules and procedures, and destroying not
only the organisation’s internal environment, but also its productivity. Organisational politics are a
natural outcome of the coming together of human beings: they cannot be completely removed, they can
only be diminished and held at minimum levels.
We stated in section 2.3 above, that the external environment consists of five elements, i.e.
physical, technological, economic, social and political elements. In this section we will discuss the
elements of the external environment in detail.
4.5.1 The Physical Element
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Human Resources planning and Management Term Paper
The physical element of the external environment includes all physical characteristics of the
location of the organisation, i.e. climate, water, soil fertility, distance from the city centre, physical
infrastructure etc. Items in the physical element of an organisation can have a positive or negative impact
on the organisation's ability to attract and retain its employees.
In addition to the above points, population shifts from the villages to towns and cities in developing
countries can be partly explained as the youth's desire live and work in places with a more favourable
physical environment. Unfortunately, such shifts have created population congestion, banditry and other
problems associated to under-employment, unemployment, and population growth in these towns and
cities.
CBAT is located at the city centre which makes it easily accessible by its target market. Also, the location
is well connected in terms of transport and communication. All utilities are easily available
With CBAT technology is the key to its success. CBAT uses advance technology in all its banking
activities and is well balance in terms of workforce and technology. That is no unemployment happened
due to it
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Human Resources planning and Management Term Paper
Theoretically, the financial strength of an organisation accords it competitive clout among its fellow
organisations in the external environment; and internally, it determines its ability to pay its employees
well, and to create and maintain a motivating environment for them.
Since CBAT is financially strong is able to compete within the banking industry. It has been expanding in
its operations since its inception 8 years ago, it has now triples in manpower with 3 new branches in place
and other 3 branches in the pipeline.
CBAT offers various banking services to the society with high integrity valuing each customer as they
come
Also CBAT fulfil its obligation to the members of the society by donating both material and financial
assistance to the needy
The government at its various levels takes interest in the ways different work organisations in the country
manage their human resources. Government therefore seeks to influence the different functions of human
resources management by laws, regulations, directives, and policies promulgated at the district, regional,
and state levels. Through these laws, regulations, directives, and policies the government requires work
organisations to fulfil specific human resources responsibilities to employees, society, and the
government. Employers feel this government involvement at the central, regional, and district levels. It
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Human Resources planning and Management Term Paper
enforces compliance by carrying out routine inspections, requiring organisations to submit reports and
through law courts. Failure to comply carries with it specific penalties.
CBAT makes sure that it complies with laws, regulations, directives, and policies issued by the
government regarding HR, society and the government as a whole.
5 CONCLUSION
A substantial body of theoretical literature argues that human resources planning play an important role in
the creation of competitive advantage within firms, and that the use of contemporary or progressive
human resources planning practices is crucial for selecting, developing, motivating, and retaining
requisite human capital. When an organization plans for the future success it must take into account the
environmental factors and challenges which affect the organization. A company’s ability to compete will
be affected by how well the management have learned to identify those factors, to demonstrate their
company’s significance, and to estimate the extent or magnitude of each of the factor’s impact on the
corporate strategy.
According to our study which is based on CBAT, it has been indicated that CBAT plans for the
manpower according to the expected business volume budgeted for the particular period. CBAT human
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Human Resources planning and Management Term Paper
resources planning is done by departmental heads that are in charge of the business units and facilitated
by HR department. Human resources manager aligned the process with CBAT policies and procedures.
In view of the above we fill that CBAT manpower planning does not take into account environmental
factors since heads of department determine the manpower requirement based on business volume
without taking into account environmental factors which are the major obstacle in planning for
manpower. Although CBAT has been successful in overall performance, we believe they could do better
if they can take into account environmental factors during the process of planning for manpower
requirements.
Overall, Increasing environmental instability, demographic shifts, changes in technology, and heightened
competition among the banking industry are changing the need for and the nature of human resource
planning in leading organizations. Planning is increasingly the product of the interaction between line
management and planners. In addition, organizations are realizing that in order to adequately address
human resource concerns, they must develop long-term as well as short term solutions. And therefore, in
order to develop their long term and short term goals they have to consider both environmental factors
and challenges affecting human resources planning as they form part of the oraganisation success. As
human resource planners involve themselves in more programs to serve the needs of the business, and
even influence the direction of the business, they face new and increased responsibilities and challenges.
According to Mwanalushi:
...the business environment of the twenty first century and beyond will
make the practice of management more challenging and demanding, and
will require people with leadership qualities, in addition to the ability to
manage, to run organisations effectively. It will increasingly call for
organisational leaders who are entrepreneurs - men and women who are
visionaries, with a global view of the markets, technology, customers and
the competition; and are able to develop a shared vision in the work
force.vii
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Human Resources planning and Management Term Paper
6 REFERENCES
i
Compare: WERTHER W.B. and DAVIS K., “Personnel Management and Human Resources”,
McGraw-Hill Book Company, New York, 1987 p.92.
CHRUDEN H.J. and SHERMAN A.W., “Managing Human Resources”, South-Western
Publishing co., Cincinnati, 1984 p.101.
WOODMAN R.W. and SHERWOOD J.J., “A Comprehensive Look at Job Design”, Personnel
Journal August 1977, pp.384-385.
ii compare CHRUDEN H.J. and SHERMAN A.W., "Managing Human Resources" South Western
Publishing Co., Cincinnati, 1984 p.23.
iv GLUECK W.F. and JAUCH L.R., "Business Policy and Strategic Management" McGraw-Hill
International Book Company, Auckland, 1984 p.95.
v MINTZBERG H., "Power in and Around Organisations", Prentice-Hall Inc., Englewood Cliffs, New
Jersey, 1983, pp.243-290.
vi PARSONS T., "Structure and Processes in Modern Society", New York, 1960.
vii
MWANALUSHI M., "Motivation for Development: Enhancing Organisational Effectiveness"
Mission Press, Ndola, 1992 p.118.
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