Examining The Effectiveness Of Accounting Systems Accounting Essay

Examining The Effectiveness Of Accounting Systems Accounting Essay The assignment begins with an attempt to find out the effective of accounting systems within a business and the analysis of management control systems of a business. Research: I used a mixture of primary and secondary research methods to complete this assignment. I have provided references at the end where necessary and used a variety of books and notes. Along with that I consulted a few websites, details are on the references. TASK 1 Introduction of accounting Accounting is all about providing financial and economic information. Accounting information is economic information, it relates to the financial or economic activities of the business. Accounting information shows the financial position of a business. This is done by the set of accounts, based on a system known as double-entry bookkeeping. One of the first complete documentation about how to keep books of accounting was written by the professor of mathematics in Rome Luca Pacioli in 1494. This documentation described the double-entry system of accounting. It was adopted and still used today around the world. Users of Accounting: there are two type of users. F:DocumentsDownloadsch1_accounting_types_users.gif http://simplestudies.com/introduction-to-accounting.html Types of accounting There are two types of accounting 1: Financial accounting Financial accounting tells us about the financial position of Business it is used to prepare financial statement. This gives all the finance related information to its users and on the basis of that information a user will be able to do comparison and analyse the position of the company and it takes part in important decision making process. 2: Management accounting On the other hand management accounts deals with the budgeting, business expenses and cost analysis it is used to make planning and control the business expenses. Accounting systems Computerised accounting system Manual accounting system These days computerised accounting system is widely used in all type of businesses. The result of this system is more convenient and accurate then manual accounting system. The question arises how this system operates, this system operates by computer software which has to install in the computer. Accounting packages softwares which is used in these days it is used to get payroll packages sales ledger purchase ledger and fixed assets. There are lots of accounting softwares are available one of the famous software name is off the shelf software it generates the document by getting commands by coding this software is very easy to use because of this software we dont need any professional accountant who set up the account it is very convenient to use one of the example of such software is sage which is very common in these days and easy to operate and it generates the accounts information by its self by coding and another kind of software is called as BESPOKE software its a customised software most of the bigger size organisations are using this software. It gives them customised entries in the books of accounts. Coding Computer operates on the bases of dose commands to performs its tasks for the accounting software coding is used to make the software more easy to use e.g. 05 for purchases 15 for interest 25 for profit and loss accounts Untitled sssss.jpg Manual accounting system Manual accounting systems are the traditional form of maintaining a businesss accounts and records this includes different steps like ledgers cash book petty cash book income statement and balance sheet which includes all the day to day transactions and sell purchase accounts this accounting system needs skills and knowledge to full fill its requirements. 1.1 Effectiveness of accounting system within a business: Information generated from the accounting system can be effective in decision making process sale and purchase of assets and in investments. Quality and benefits of accounting system is evaluated from the performance evaluation, internal control and proper records of transactions. Effectiveness of accounting information is depend on time management which have a great effect on accounting systems effectiveness, there for the accounting records should be maintain on time and with accuracy of accounting information it have a great impact on the effectiveness of accounting system. Generally accounting information system provide the information about financial position on daily and weekly basis the effectiveness of accounting system not only depend upon the propose of such system it also depend on the contingency factors ( factors like culture understanding of organisation and outer atmosphere) accounting information is said to be effective when the information is complete and according to the system users effectiveness of accounting system is subject to many researches from a long time. Accounting information is usually divided into two categories (1) the information that facilitate decision making (2) Information that influence decision making. 1.2: Accounting records All of the documents and books includes in the preparation of accounting records includes journal, ledger, trial balance, cash books, invoices or any document which help in to make accounts. In accounting records a cycle is used which is called as accounting cycle it determines the steps of financial statement. ACCOUNTING CYCLE F:DocumentsDownloadsaccounting-cycle4.jpg http://basiccollegeaccounting.com/what-is-an-accounting-cycle-and-the-steps-involved/ Purpose and use of accounting records: All accounting records are very useful and had a great value for its respective business without a proper accounting records it is very difficult to run a business successfully. The purpose of maintaining accounting records to evaluate how much capital and assets a business have and also maintain the records of creditors and debtors or buyers and sellers by the respect of that records a user can have a clear eye on the business and watch the losses and profits in the business whether the business doing well or not and on the basis of that records business can take decisions whether business have to invest or take out all the investments or run the business as it is these record help to make more accurate and satisfied decision making which help to make business more profit and also used for calculating tax liability and give the information to the investors who are willing to buy the shares of that company. Accounting concepts Accounting concepts is very important, it is used to support the application of the true and fair view, and accounting has adopted certain concepts which help to ensure that accounting information is presented accurately and consistently. (1) Going concern: it is assumed that the business entity for which accounts are being prepared is solvent and variable, and the business will continue its operations for the foreseeable future. This has important implications for the valuation of assets and liabilities. (2) Accruals concept: revenue and expenses are taken account of when they occur and not when the cash is received or paid out. (3) Prudence concept: revenue and profits are included in the balance sheet only when they are realized and liabilities are included when there is a reasonable possibility of incurring them it is also called conservation concept. Profits are not recognised until a sale has been completed. In addition, a cautious view is taken for future problems and costs of the business (they are provided for in the accounts as soon as there is a reasonable chance that such costs will be incurred in the future. (4) Consistency concept: once an entity has chosen an accounting method, it should continue to use the same method, except for a solid reason to change. Any change in the accounting method must be disclosed. Transactions and valuation methods are treated the same way from year to year, or period to period. Where accounting policies are changed, companies are required to disclose this fact and explain the impact of any change. (5) Entity concept: accounting records reflect the financial activities of a specific business or organization, and not of its owners or employees. (6) Matching concept: transactions affecting both revenues and expenses should be recognized in the same accounting period. (7) Materiality concept: relatively minor events may be ignored, but the major ones should be fully disclosed. (8) Realization concept: any change in the market value of an asset or liability is not recognized as a profit or loss until the asset is sold or the liability is paid off (discharged). (9) Money measurement concept: accounting process records only those activities that can be expressed in monetary terms (with some exceptions, as in cost-accounting). (10) Separate entity concept: Business is the separate entity from its owner. (11)Relevance concept: This implies that, to be useful, accounting information must assist a user to form, confirm or maybe revise a view usually in the context of making a decision (e.g. should I invest, should I lend money to this business? Should I work for this business?) 1.3: Factors Affecting Accounting System There are lots of factors which affect the accounting system the major factor are which affect the organisation is the (1) nature of business and (2)size of organisation and 3the structure of the organization if the organization is a multinational company then the accounting system of that organisation is on a very high level and very complex and they have separate department for all the accounting related work if a small company going to increase its size then they should have to change the accounting method and adopt the new method because of large amount of transactions are also taken place in the business on which the old method can no longer apply, and the other factor which affect the accounting system the change in IAS if in IAS some new rules are coming in then the business have to adopt that rule and adopt in the business and make there strategy according to it. 2.1: Business risk: Business risk cannot be eliminated but must be managed by companies. There are several ways to minimize the business risk by proper planning. Determining Business Risk: Developing the Business Risk Model It is important for an organization to identify the business risks that exist in the environment in which it operates. To identify those risks, organizations must look at their external environments. External business risks are economic, political, social, environmental, technological, and other external conditions. An organization cannot fully understand its business risks unless it also understands its business objectives, strategies, and processes. Interrelationships between business objectives, strategies, processes, and business risk http://www.clir.org/pubs/reports/pub90/appendix1.html Types of risk: Operational risks: Operational risks are associated with your business operational and administrative procedures. These include: recruitment supply chain transportation accounting controls IT systems regulations board composition Business should examine these operations, prioritise the risks and make necessary provisions. Financial Risk: Financial risk is the risk made by equity holders by using of firms debt. If the company raises capital by borrowing money, I t must pay back with the interest charges. This increases the degree of uncertainty about the company and it must have enough income to pay back that amount in the future Compliance risk: Compliance risk is the possibility that the business will not comply with laws and regulations in the jurisdictions where it operates or that the organization will break any legally contract. Noncompliance can be dangerous, or it can result from being unaware or local legal requirements. Response to risk: A business can take any given risk. Accept risk: if the risk of loss is minimum then only accept the risk and carry on business according to it. Reduce risk: reducing the risk by better planning and strategies Avoid risk: do not enter into that kind of business in which there is some bigger risk Transfer risk: companies can also transfer the risk by taking insurance policy. 2.2: Describe and evaluate the control system The environment in which business operates and the system it adopts is a process, affected by an entitys board of directors, management and other personnel, designed to provide assurance regarding to the success of objectives in the following areas: effectiveness and efficiency of operations, reliability of financial reporting, and Compliance with applicable laws and regulations. IAS315 gives us an understanding of the entity and its environment and assessing the risk of business and control system of business. ISA identify the five elements of control system, The control environment Risk assessment Information and communication Control activities Monitoring Control environment: Control environment is that in which control system operates. Control environment is defined by the business management. Control environment forming a base for control activities, risk assessment, monitoring, awareness and action of those changed with governance and management. The control environment is the most important component because it sets the tone for the organization. Factors of the control environment include employees integrity, the organizations commitment to competence, managements philosophy and operating style, and the attention and direction of the board of directors and its audit committee. Risk assessment: Risk assessment analyse the identification, analysis, and management of uncertainty in business facing the organization. Risk assessment is relevant to the financial reporting and organization operational objectives. The management have to carry out a risk assessment from auditor which provides information with confidence that company system will not have any error in them. Information system: Information system is the system that processes the information within an organization it includes processing the information and the procedure to initiate record and report on financial statement both manual and computerised. Control activities: Control activities include the policies and procedures maintained by the management of an organization to find risk. E.g. Control activity is a policy requiring the approval by the board of directors for all purchases exceeded from an estimating amount. Control activities are the important element of internal control, this provide satisfaction to prevent wrong decision from occurring. Monitoring: Monitoring refers to the assessment of the quality of internal control. Monitoring activities provide information about potential and actual breakdowns in a control system that could make it difficult for an organization to achieve its goals. 2.3: Fraud Fraud is an intentional mistake by the management, employs or third parties for illegal financial advantages. Or if we talk about an error its an unintentional mistake. Fraud is difficult to be identifying because it is done by complete planning and care so the internal audit is conduct to detect the fraud. THE DIFFERENCE BETWEEN FRAUDS AND ERROR: The distinguishing factor between fraud and error is that action which results in a misstatement of the financial statements it is intentional or unintentional. The term fraud is a broad legal concept, but the auditor is concerned with fraud that causes a material mistake in the financial statements. ISA 240 (Redrafted) defines fraud as: An intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage. And SAS 99 defines fraud as an intentional act that results in a material misstatement in financial statements http://en.wikipedia.org/wiki/Statement_on_Auditing_Standards_No._99:_Consideration_of_Fraud Types of fraud: There are many types of fraud which relates to a business. Ghost employ Miscasting of payrolls, Stealing unclaimed wages, Collusion external parties Teeming and leading Altering cheques and inflating expense claim Stealing assets Issuing false creditor notes Failing to record all sales Prevention of Fraud: Fraud is preventing by implementing the rules and laws in the business some of the points are written below which is very useful for the business to prevent the business from fraud. A good internal control system Continuous supervision of all employees Surprise audit visits Through personal procedure Detection of fraud in the business: Maintaining key control procedure reduce the risk of fraud occurring and increases the risk of detection control over cash transaction are more important this is the main area in which mostly frauds are happen. Cash receipts: Keep eye on all transactions which are placing in the business. Divide the duties between different functions, in other words more than a person. There are following point which is very useful to detect the fraud. Receipts by post: Safeguard to prevent interception of mail between receipts and opening. Appoint person to supervise mails Protection of cash and cheques Control over cash sales and collection: Restriction of receipts received Evidence Clearance of cash officer and register Investigation of cash storage and surpluses Paying into bank Daily banking Make up and comparison of paying in slips and receipts Banking receipts record Condition and events: Particular financial reporting pressure in an entity; Inadequate working capital due to declining profit or too rapid expansion Increases sales on credit this area should be check to find out if anything is going wrong is that department. Unusual transaction: If unusual transaction is take place especially at year end that gives any significant effect on earnings. Complex transaction or accounting treatment. Task 3 3.1: Auditors Duties, rights and liability; What is an audit? An audit is an examination of a companys financial statements prepared by the directors of the company. Its purpose is to give the company shareholders an independent, professional and informed opinion on the financial statements: à ¢Ã¢â€š ¬Ã‚ ¢ It has been prepared according to the Companies Acts, any other relevant legislation and relevant accounting standards. à ¢Ã¢â€š ¬Ã‚ ¢ It gives a true and fair view of the condition of the company on financial statement. Who is an auditor? An auditor is an independent professional person who is qualified to audit a companys financial statements. What does an audit involve? In carrying out an audit, an auditor will usually: à ¢Ã¢â€š ¬Ã‚ ¢ Identify the data of the financial statements that have some errors. à ¢Ã¢â€š ¬Ã‚ ¢ check the transactions record, account balances and disclosures. à ¢Ã¢â€š ¬Ã‚ ¢ Give suggestions on companys accounting policies are reasonable. à ¢Ã¢â€š ¬Ã‚ ¢ Test that the companys internal controls are effective. à ¢Ã¢â€š ¬Ã‚ ¢ write management letter if any problems discovered during the audit and advise on how to deal with that. à ¢Ã¢â€š ¬Ã‚ ¢ write and issue the auditors report to the members of the company. What are the duties of auditors? Duty to provide an audit report: The main duty of auditors is to report to the shareholders on whether in their opinion the companys financial statements give a true and fair view. They may give: à ¢Ã¢â€š ¬Ã‚ ¢ A qualified opinion this says that the financial statements give a true and fair view of the companys state of affairs except for certain stated circumstances. à ¢Ã¢â€š ¬Ã‚ ¢ A disclaimer of opinion this shows that the auditor is unable to give an opinion whether the financial statements gives a true and fair view or not. à ¢Ã¢â€š ¬Ã‚ ¢ An adverse opinion it says that the financial statements do not give a true and fair view. What are the rights of auditors? Auditors have the right to: à ¢Ã¢â€š ¬Ã‚ ¢ Access the books and accounts of the company and its subsidiaries; à ¢Ã¢â€š ¬Ã‚ ¢ Access information and explanations from the companys directors and employees. à ¢Ã¢â€š ¬Ã‚ ¢ be notified of company general meetings and address the meetings. à ¢Ã¢â€š ¬Ã‚ ¢ explain in general meeting the circumstances of any condition to remove them as auditor. Liabilities of auditor: Give a true and fair view on financial statement and deliver the right information to the general public and shareholders to prevent them from loss 3.2: Internal and external audit: The External Auditor: the external auditor tests the transactions record that takes part in the  financial  statements. The  internal Auditor: The internal auditor, on the other hand, deals with its major operations, risk management and internal controls.   The Main Differences There are many key differences between internal and external audit. The external auditor is an external contractor how does not belongs to the organization, company hire the he auditor for auditing firms. The external auditor seeks to provide an opinion on whether the accounts show a true and fair view. Whereas internal audit forms an opinion on the adequacy and effectiveness of systems of risk management and  internal control, many of which are outside the main  accounting  systems.   The 3 Key Models of Organization Activities Involves Internal and External Audit 3 Key Models of Organization Activities involves Internal Vs External Auditor Difference and Similarities of Internal Auditor Vs. External Auditor Here is a  list of  Internal  Audit Versus  External Audit in detail: Internal Auditor Vs External Auditor   http://accounting-financial-tax.com/2008/08/differences-and-similarities-of-internal-auditor-v-external-auditor/ 3.3: Planning of auditing In auditing of any organisation, auditor has to consider certain things before audit. First is scope In any audit should be to determine its scope and the auditors general approach. Audit strategy: Auditor has to make some strategy for the auditing and place it with auditing documents which defines the major areas on which auditor has to take extra care and the difficulties associate with audit and the auditing clients points of concerns. Documents accounting system: Auditor has to collect all those documents associated with audit e.g. financial statement, transactions record, receipts, and other related documents. Auditor need these documents to analyse it and find all the aspects of transactions to find out whether the financial statement have any error or not or is there any possibility of fraud is there or not and whether it gives a true and fair view or not. System and internal controls: At this stage the objective is to determine the flow of documents and the facts related to the documents and the operational system in the organisation. At this level auditor has to find the facts related to documents and the documents flow in the departments including sales, purchases, cash and stock and accounts personal. This is the good way to find out the rough estimate of system, after that which will be converted into formal record. Audit Risk: Just like risks in business some risks are also relates with the auditing. Audit risk is defined as: Audit risk is the risk that that auditor may give an inappropriate opinion on the financial statement Components of audit risk: Audit risk has three components: Inherent risk: Inherent risk is the risk that auditor may be misstated because of lack of knowledge and insufficient information available for it. Auditor has to use their professional practice and available knowledge about the item to asses inherent risk if no such information is available then the inherent risk is high. Control risk: Control risk is the risk that organisation control system fails to detect the material misstatement. And the financial statement do not prepare according to the IAS. Detection risk: Detection risk is the risk that auditor will fail to detect the material misstatement of accounting system. Detection risk relates to the knowledge, practice and the experience of the auditor. Materiality: Materiality is relates to the financial statement, it is an expression of the relative importance of a particular matter on the mean of financial statement as a whole or as an individual. A matter is material if its omission or misstatement could influence the economic decision of the users which basis on that financial statement. Materiality depends on the size operations of organization. ISA 320 tells the auditor to consider materiality and its relation with risk at the time of conducting an audit. 3.4: Audit testing and uses In developing overall audit plan, auditors uses five types of audit tests to find out whether financial statement are truly stated or not. Procedures to Obtain an Understanding Auditors perform this by a system called walkthrough to obtain understanding it applies on the transactions and entire process is operated like this. Tests of Controls procedure used to obtaining an understanding about internal control, it contains followings evidences Make inquires of client personal Examine documents, records and reports Observe control activities Reform client procedure Test of Control is used to determine whether the control system is effective or not and usually involves a testing of transaction. Substantive Tests of Transactions Procedures designed to test for dollar misstatements of financial statement balances. Analytical Procedures To indicate possible misstatements To reduce tests of details of balances Tests of Details of Balances Focus on ending G/L balances It is used to find out whether the balance of the financial statement is accurate. 3.5 Records Auditing process AuditProcessFlowchart.gif http://www.window.state.tx.us/taxinfo/audit/auditfun/5procedures.htm Audit test: In the large company with sophisticated internal control and low inherent risk therefore auditor perform extensive test and it relies on the client internal control to reduce substitutive test because of the emphasis on test of control and analytical procedure, this audit can be done comparable in inexpensive. This audit likely represents the mix of evidences used in integrated audit of public company financial statements and internal control over financial reporting. TASK4 4.1: Purpose of Audit Report Audit report is that report in which external auditor express their opinion about the true and fair view of the financial statement of the organisation. The audit report is published for the shareholders, management or directors and also for general public. There are two key differences between the report to shareholders and to report for the management. The shareholders report is to show whether the financial statement shows a true and fair view And the private report for the management and directors which contain comments and recommendations on the financial statement Contents of audit report: Auditor report on financial statement contains clear opinion based on the assessment of record. Audit report draw on a complete pattern which gives the clear view to its users. The main contents of audit report as follow. Untitled contents.JPG 4.2: Different qualifications in report: There are two types of reports one is unqualified or unmodified report and the second is qualified or modified report. 1: An unqualified audit report gives assurance to its users and gives true and fair of the financial statement and there is no material mistakes are in it. An unqualified report extract by laws and rule under companies act 1985. Which contain followings? Proper accounting records All information and explanations Details of directors benefits Particulars of loans and other transactions 2: Qualified report: On the qualified report auditor give two types of opinions. Matters that affect the auditors opinion Matter that do not affect the auditors opinion Matters that affect the auditors opinion Auditor may not be give appropriate opinion because of some circumstances like insufficient material of financial statement. And others factors are as follow. There is any limitation of scope in auditors work. It may be material or pervasive Disagreement with management it may be material or pervasive These two factors farther divide into two branches. A limitation of scope may lead to disclaimer of opinion. A disclaimer opinion should be expressed when the limitation of scope is so material or pervasive when auditor do not obtain any evidence related to that to express his opinion on the financial statement. Disagreement may leads to adverse opinion. It should be expressed when effect of disagreement is material and pervasive when some misleading or incomplete information in the financial statement. Matters that do not affect the auditors opinion In some circumstances auditor may give unqualified opinion because of the uncompleted information in the financial statement in this case auditor write a paragraph is called as emphasis of matter describing a fundamental uncertainty and then give an opinion on that. 4.3: Management letter: MANAGMENT LETTER The Board of Directors, ABC CO Alpha Co Limited, certified accountants 15 Essex Road 29 High Street, London, EC1N 2HB

Short Story evaluation template

A good short story includes the following: Interesting & appropriate title plot Theme / message Narrative style: telling a story Structure: Introduction, development, conflict, climax, resolution / conclusion Strong Introduction & conclusion: Introduction hooks the reader, conclusion leaves a lasting Impression on the reader. Conflict/ Issue / problem: Introduced & resolved. Suspense: The story must hold the reader's Interest.The problem presented early In the story Is developed steadily so that the reader's curiously Is stimulated; the reader then becomes more and more Involved In the story. Suspense reaches the highest point at the climax: this is the point where the problem Is resolved In some way. This then leads to the resolutions of the story. Tense: clear and consistent Distinctive tone: formal, informal, chatty, lively, exciting etc.. Strong, interesting and varied characters Narrator: who tells the story?Clear point of view: first / third person Paragraphs Good punctuation, spelling & grammar Setting: time & place Varied range of expression: adjectives, verbs, similes, metaphors, sensual images language, color, varied sentence length (short & long: allows description and creates tension & suspense) Dialogue: gives a good insight into characters, life styles, personalities, relationships Proof read: have you answered who, what, when, where, why & how questions Resolution: open or closed ending.

Human Resource Planning

HR Planning: * The process for ensuring that the HR requirements of an organization are identified and plans are made for satisfying those requirements. * Planning for the personnel needs of an organization based on internal activities and external environment * How many people? What sort of people? Definitions: * HRP determines the human resources required by the organization to achieve its goals. It is â€Å"the process of ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements† – Bulla & Scott. It is the process, â€Å"including forecasting, developing and controlling, by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right time doing the work for which they are economically most useful† – E. B. Geisler. * It is a strategy for the acquisition, utilization, improvement and preservation of the human resources of an enterprise. It is the activity of the management to coordinate the requirements for and the availability of different types of employees.This involves ensuring that the firm has enough of the right kind of people at the right time and also adjusting the requirements to the available supply. Objectives of HR Planning: * To ensure quality and quantity of HR at the right time and the right place * To ensure optimum utilization of human resources * To avoid understaffing and overstaffing Importance: * Reservoir of Talent * Expansion/ Contraction * Cutting costs * Succession Planning MANPOWER PLANNING MAKES FOR DIFFERENT PURPOSES AT DIFFERENT LEVELS: MACRO-LEVEL NATIONAL SECTOR – WISE INDUSTRY – WISE MICRO- LEVEL ORGANISATION LEVELOrganizational Objectives & Policies: * Downsizing / Expansion * Acquisition / Merger / Sell-out * Technology up gradation / Automation * New Markets & New Products * External Vs Internal hiring * Training & Re-training * Union Constraints HRP includes four factors: * Quantity- How many people do we need? * Quality- Which skills, knowledge and abilities do we need? * Space-Where do we need the employees? * Time-When do we need the employees and for how long do we need them? Steps in HRP: * Forecasting future people needs * Forecasting the future availability of people * Drawing up plans to match supply with demandHR Demand Forecast: Process of estimating future quantity and quality of manpower required for an organization. * External factors – competition, laws & regulation, economic climate, changes in technology and social factors. * Internal factors – budget constraints, production levels, new products & services, organizational structure & workforce factors. Forecasting Techniques: * Expert forecasts * Trend Analysis * Workforce Analysis * Workload Analysis * Job Analysis Supply Forecasting: * Internal Supply ( Skill Inventory) * Age, gender, education, experience, training, job assignments, past perfor mance, future potential. External Supply Important barometers of Labor Supply: * Net migration into and out of the area * Education Levels of the workforce * Demographic Changes in the population * Technological developments and shifts * National and regional employment rates * Actions of competing employers * Govt. policies, regulations and measures * Economic forecasts for the next few years * Attractiveness of the area/ industry THE PROCESS OF HUMAN RESOUCE PLANNIG GENERAL OVERVIEW: BUSINESS STRATEGIC PLANS RESOURCING STRATEGY PLANNING DEMAND / SUPPLY FORECASTING MANPOWER TURNOVER ANALYSIS WORK ENVIRONMENT ANALYSIS HUMAN RESOURCE PLANSOPERATIONAL EFFECTIVENESS ANALYSIS RESOURCING RETENTION FLEXIBILITY PRODUCTIVITY WORK ENVIRONMENT THE MANPOWER PLANNING PROCESS–FROM THE ORGANISATIONAL VIEW POINT: COMPANY OBJECTIVES AND STRATEGIC PLANS MARKET FORECASTS PRODUCTION OBJECTIVES / CAPITAL PROCESS FINANCE PLAN MANPOWER ANALYSIS INVENTORY EMPLOYMENT PRODUCTIVITY ORGANISATION MANPO WER FORECASTS (FUTURE SITUATION) OVERALL UNIT BUDGET MANAGEMENT MANPOWER MANPOWER APPROVAL MANPOWERFORECAST FORECAST ESTIMATES TOP MANAGEMENT APPROVAL MANPOWER OBJECTIVES AND POLICIES MANPOWER PLANS AND PROGRAMMES RECRUITMENT & SELECTION, CARER PLANNING, PERFORMANCE MANAGEMENT, TRAINING, RETIREMENT ANALYSIS, REDUNDANCIES etc. Formulating HR Plans: * Recruitment Plans * Redeployment Plans * Redundancy Plans * Training Plan * Productivity Plan * Retention Plan Example of the Basic Human Resources Planning Model: Organizational Objectives Human Resource Requirements Human Resource Programs Feasibility Analysis 1 2 3 4 5 Example of the Basic Human Resource Planning Model: Open new product lineOpen new factory and distribution system Develop staffing for new installation Production workers Supervisors Technical staff Other managers Recruiting and training programs feasible Transfers infeasible because of lack of managers with right skills Recruit skilled workers Develop technical trainin g programs Transfer managers from other facilities Develop new objectives and plans Recruit managers from outside Too costly to hire from outside 1 2 3 4 3 5 Forecasting as a Part of Human Resource Planning: DEMAND FORECASTING SUPPLY FORECASTING Determine organizational objectives Demand forecast for each objective Aggregate demand forecastDoes aggregate supply meet aggregate demand? Go to feasibility analysis steps Choose human resource programs External programs Recruiting External selection Executive exchange Internal programs Promotion Transfer Career planning Training Turnover control Internal supply forecast External supply forecast Aggregate supply forecast No Yes Manpower flow in an organization: Inflow Outflow Job Transfers Job recruits Job Relocations Job Hopping Transfers(out) Retirement VRS Scheme Discharge/ Dismissal Termination of service Resignations HR Pool in the Organization Internal Labor Supply: * Analysis of Manning/ Staffing Tables. Replacement Charts- Present incumbents, potential replacements. * Skills Inventory-education, interests, experience, skills, etc. * Succession Planning. * Turnover Analysis. * Wastage Analysis- Retirements, resignation, deaths, dismissals- Labor turnover Index, Stability Index, etc. Trend Analysis: * Projections-Basing it on Organizational Sales * Workforce Analysis- last 5 years * Workload Analysis * Job Analysis Job Analysis: * A systematic process by which information is collected and analyzed with respect to tasks, duties and responsibilities of the jobs within the organization * Job Analysis: What is to be done? How is it to be done? * Under what conditions is the job to be done? * What skills, knowledge and competencies are required to perform the job? * Job Content: Duties, responsibilities, job demands, machines, tools, equipment, performance standard * Job Context: Physical, organizational ad social context, working conditions, work schedule * Human Requirement: Job related knowledge, skills, educatio n, experience, personal attributes Components of Job Analysis: Job Description: written summary of the content and context of the job * Job Specification: Written statement of the knowledge, skills and abilities and other human requirements Questions in Job Analysis Interviews: * What is your job? * What are the major duties of your job? * What are the responsibilities of your job? * What physical locations do you work in? * Under what environmental conditions do you perform your job? * What are the skills, knowledge and experience requirements of your job? * What are the physical and emotional demands that the job makes on you? * What is the performance standards expected on your job? Human Resource Planning Human Resource (HR) Planning is the practice of determining and analysing the requirement for and supply of workforce in order to achieve the organisation’s goals and objectives, fulfil its mission and reach its vision (Mathis & Jackson, 2000). HR planning predicts forces that will affect the availability and requirement of employees in the future. This process will result in top executives having superior analysis of human resource measurement for its decision making; HR expenditure being decreased due to the fact that management can forecast imbalances prior to them becoming costly; additional time will be available to place skills since requirements are predicted and analysed before staffing is done; excellent opportunities are present to comprise female and ethnic groups in upcoming developments; training of new managers can be improved. The outcomes of these can be calculated and can be used for the evaluation of the accomplishments of HR planning (Mathis & Jackson, 2000). Human resource planning is a course of action that will aim to facilitate the organisation’s plan in recruiting, improvement and training, substitution, cross-functional development and management of programs for benefits and rewards. Subsequently to guarantee in building the best valuable human resource plan, the organisation should analyse the necessity of a strategic business plan, work proficiency plan, workforce planning, training and improvement planning, career development planning and planning for right-sizing (Macaleer & Shannon, 2003). Undeniably because of this analysis in HR planning, it is essential to have a sufficient Human Resource Information System (HRIS). The purpose of this is providing accurate, balance and on time information for the process. Now a computer-based system should provide a form of information about human resources necessary for strategic business decision making. This system reflects the relationship between work requirements, employee’s individual skills and levels of performance. In this instance, the information system serves as simple reflections of reality which will help develop better and effective business decisions which are known results in the codification of knowledge (Liff, 1997). In HR planning, external environmental forces should be considered such as present technology, political climate, economic situation, legal issues, social responsibility and cultural differences. Besides these external considerations are extremely important to HR activities especially, if HR planning is globally implemented. The serious pressures that are involve in a business are scarcity of talents, fast shifting technology, government regulations, environment, health, safety and changes in the market. In this situation, the human resource planning innovations of the company are affected. This will make sure that the organisation has the right work force with the right skills in the right jobs at the right moment. There is no argument that human resource planning should be associated with the strategic goals of the company. Hence, human resource planning is an important factor in managing an organisation competently and successfully. Accordingly, HR planning positively improves organisation performance if the HR plan is strategy-based and human resource is a convincing strategic collaborator (Macaleer & Shannon, 2003). Most parts of the world may be in recession and economies are in disorder will result in worldwide effects on organisations and businesses. Any type of HR planning is presented with a surmountable differences of opinion connected with unpredictable and uncertain times. In this case, if the planning is done by HR professionals who have superior knowledge of magnitude and quality of essential resources needed for revitalization, there is optimism of future positive outcomes. According to Robert A. Simpkins (2009), an organisational adviser and educator, there are two types of plans. One is designed to guarantee ‘business continuity’ in the appearance of manmade or natural catastrophe. Second is a plan that is framed for the ‘uncertainty’ of the business environment. HR planning is the most critical part of the organisation’s strategic plans for the reason that observing and adjusting for environmental changes will make the success of the process. All the drivers of the company’s internal and external environment are altering at an accelerating speed including advancements in technology with respect to hardware, software and connectivity, globalization, shifting of sources and consumers, changing competition, changes in markets, the alteration of demographics, change of population lifestyle, the macro and micro changes in economics and the progressively more bewildering government and international regulations (Simpkins 2009). Businesses have the desire to stay significant in the face of consumers and stakeholders. Mostly, the organisations that maintained their importance have built remarkable HR plans that are continually reviewed and modernized. Regrettably, other businesses build better folders that compose overall strategic human resources plans that are short of any back-up planning, and these stay behind on the shelf gathering dust for years, inappropriate to a present shifting business climate. Finally, Simpkins (2009) concludes that an organisation needs to design a communicable HR plan that is not detailed enough to slow down operation. Since HR professionals are with higher-level of understanding, the group will have the elasticity to adjust what will take place in the future. The solution to a positive result is to keep HR plan flexible (Simpkins, 2009). Human resources issues have been the first among all business issues to affect the outcome of a business organisation. Human resources have risks and these risks are the challenges that resulted from managing your employees, processes and procedures. Therefore by dealing with these risks in HR and finance, one can make positive organisational outcomes. On the other hand, if these issues are not addressed appropriately these possibly will cause major harm to the business (Steffee, 2008). Public personnel management research and practices increasingly focus on creative human resource management (HRM) strategies for recruiting individuals with Information Technology (IT) expertise and retaining employees with institutional knowledge, particularly in light of impending retirements. Some agencies face unique workforce demographic challenges, while others face shifts in missions or technologies. For these reasons, the U. S. Office of Personnel Management relaxed some regulations to allow federal agencies to meet their staffing needs (Mastracci, 2009, p. 19). With regards to staffing needs, workforce planning is the course of action that companies utilize to recognize and deal with the staffing implications of their strategic human resources plans or change of business plans. Workforce planning has a sole objective, to develop a long term perspective within which short term workforce decisions can be achieved efficiently. Staffing strategy is a long term plan that makes sure that availability of employees matches its requirement for employees. Staffing plans illustrate short term plans which an organisation will make in the immediate future to deal with staffing gaps and excesses. By implementing this procedure, the businesses can make certain it has the accurate quantity of people, with the appropriate skill, in position at the right moment. Workforce planning can facilitate the execution of business changes and innovations. The growth in organisations is anticipated overtime during the workforce planning phases. This process is essential in determining the staffing that would be required for growth that will make sure the needed skills will be obtainable to accomplish those development goals. It also allows a business company to construct and implement downsizing plans in the best efficient method. The absence of this strategy makes it hard to identify staffing reductions that have a positive effect on the future of the organisation (Bechet, 2008). Rightsizing or downsizing or organisational decimation is a persistent strategic human resource practice for the last thirty years (Gandolfi, 2008). This refers to the planned removal of big quantity of workforce intended to improve organisational efficiency. In fact, this process is a commonly accepted company solution in times of financial difficulties of the organisation. Although studies show enough indication that rightsizing companies is not generally a successful method of reaching goals of optimum output and maximum profit. However, rightsizing sometimes cannot be avoided; workforce reduction ought to be a management means of last resort rather than first option. For the duration of an economic recession, an organisation should think of all its options and examine the viability and applicability of cost-reduction alternatives before considering rightsizing. In fact predicting a business decline can be very hard, therefore, organisations have the immediate reaction rather than forecasting economic downturns (Gandolfi, 2008). Take the case of IBM, although the company planned to steer clear of downsizing its workforce however, the company declared plans of workforce reduction and by the early 1990’s IBM right sized its organisation by decreasing its employment by 40,000 at that time alone. However, IBM made an effort to become reactive by changing products and attempted to acquire the promptness and responsibility edges of fast reacting manufacturers (Greer, 2001). On the other hand, back in the 1980’s a small number of organisations marked workforce planning and marked as part of their human resource strategy. AT&T and some large oil firms were the models of this. Due to the fact that having a large volume of employees, these organisations called for some forms of workforce planning. AT&T made recognition for its succession planning, evaluation and career advancement programs. Rightsizing and reorganising achieved momentum for this time period. Strategic human resource was beginning to expand and become increasingly strategic because of the fast growing economy and globalisation at the end of the decade (Gubman, 2004). In another case, similar to any big organisations, Eastman Kodak has tried with a variety of human resource planning programs for the past decades. One of the successful programs centred on workforce requirements. HR planning by that time was perceived as a method to make certain that the right number and right kind of employees were at the right position at the right moments. Skills assessments were believed to be the suitable base for HR planning. Similar to any firm, Kodak discovered that there were no general definitions of HR planning. The company realised that they ‘borrowed, adapted, discovered and created’ their way to an approach to HR planning that was aligned to the market situation at that time and be reactive to its changes (Bennet & Brush, 2007). We have developed a framework and process for thinking about and doing HR planning, which I’ve labelled: â€Å"HR planning in â€Å"3D. † The three dimensional environment at Eastman Kodak – diversity, decentralisation, and dynamism – has significantly affected the character and objectives of the HR planning process (Bennet & Brush, 2007, p. 46). In this concept, the human resource function at Eastman Kodak Company was restricted with the goals on magnifying the strategic dimensions of human resource management. In this situation, HR is reshaped as a foundation of market competitive edge and new HR planning procedures were built to strengthen this edge. In the 1990’s, the implementation of this procedures required new HR abilities. The company’s made efforts to utilize HR planning to create a tougher and more aggressive corporation (Bennet & Brush, 2007). We have found several key integrative elements which, from an HR standpoint, seem to make sense in a â€Å"3D† environment. These elements are: corporate management themes; HR planning processes; and HR competencies. Working together, in an ensemble of influence and activity, these elements help to create, sustains, and reinforces strategic business unity (Bennet & Brush, 2007, pp. 48-49). Corporate management themes facilitate in building a focus for a united business environment to achieve its objectives. As of HR planning processes, planning is staged at the corporate and business points. In this process, Eastman Kodak Company is creating efficient HR staff and on this level, this will make the company’s HR planning a ‘competitive weapon in our business arsenal’ (Bennet & Brush, 2007). In the belief that the existing process of uniting and sharpening the corporation’s HR goals will result in considerable outcomes over the decades by concentrating our efforts and finances and giving to the corporation’s evolution. In HR competencies, HR planning is designed to support the Kodak Company by developing its ability to face the future and having the objective for improvement of Corporate Relations. An efficient production HR team, a competent HR planning process and the corporate themes put together will create unity of goals and objectives and create production’s capability to implement strategy. On the whole, the Kodak Company started to distinguish the advancement and positive results as the outcome of knowledge acquired on this process. As Kodak Company has started to achieve its goals, there is an opportunity for transformation of HR functions. The corporation anticipate that successful HR planning, in a ‘3D environment’, will be Kodak’s ‘vehicle for landing safely in the 21’st century’ (Boroski, 1990). The point of view on the Annual HR Strategic Planning Process of Corning Incorporated is that the HR staff employs to make HR investments and services the main concern in support with business needs. Overtime, this procedure has contributions from Human Capital Planning process, HR objectives and other organisation innovations. To efficiently attached HR strategy with business strategy a Human Capital Planning process was created in Corning Incorporated. The outcome gave managers tools and skills for ability development and gave HR a method of determining requirements over the organisation. To allow the determination of the skill that will affect the positive outcome of business strategy, HR planning should find out the quantity of employees needed and determine talent gaps. Incorporating both the workforce planning and operating plan process have facilitated to create a more aligned global HR function for Corning Incorporated. Important components of a good HR planning process are composed of different methods for collecting information; corporate strategy input from top executives; direction from top managers and business participation from each business facilitated by HR function. Furthermore, placement of the HR planning process with the business strategy procedures enhances HR’s capacity to support the functions it presents with the requirements for its market Bennet & Brush, 2007). In the early 1990’s, in order to meet Colgate-Palmolive Company’s objective of ‘becoming the best truly global consumer products company’ (Khanna & Randolph, n. d. ) it human resources made the building of its human resources strategy. The corporation is continually dedicated to developing the human resources for sustainable competitive edge in the global market. The HR strategy team was grouped into Geographic Excellence, Category Excellence and Functional Excellence. The Global Human Resources Business Plans is nothing until it is put into action. Colgate should consider consumer’s needs in order to accomplish the innovations of HR planning. HR plays an important part to assist Colgate employees to continually improve. HR makes an effort with management to build training, career planning, performance development, communications and reward systems. The process will make sure that Colgate employees have the chance for advancement, empowerment and continually improve its abilities (Smith, Boroski & Davis, 1992). On other respects, the organisation that is considering outsourcing, HR planning staff should be active partners of workforce planning processes. In the present economic situation, active human resource planning processes integrating flexible workforce preparations are adapted to a much greater degree. Outsourcing is not only part of workforce planning besides it is also a tool in human resource planning. HR planners should be part of the organisational change: evaluation, contract negotiation, transition and stabilisation as these control decisions of the process. HR planning should have the control of the decisions and as the effect of its absence of this practices may result in failures (Khanna & Randolph, 2005). The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organisations at a given point in time. The social responsibilities of a business include to produce goods or services, to make a profit, to obey the laws and regulations, to act ethically, to consider the public good in every decision that is made and to place ethics above personal gains. To be socially responsible a person or business must consider all aspects of society when making a decision. (Clark & Seward, 2000, p. 2) In human resource planning the process should incorporate the highest level of social responsibility. As Milton Friedman maintains that a business organisation has no social responsibilities other than to get the highest possible profits (Ramlall, 2009). In spite of this belief, now there is a general awareness among business organisations that sustainable achievement and stockholders share value cannot be materialised by maximising pr oduction but rather by having social responsible attitude (Ramlall, 2009). In another case, human resource should consider employee participation for good governance and corporate social responsibility. As an evidence of its importance is that, it is the basis as a legal tool in composing international institutions to regulate global corporations. In spite of this, business corporations make a general view in making HR procedures regarding the implementation of corporate social responsibility policies and personal views on employee relations that will affect the overall view of labour relations (Daugareilh, 2008). For multinational corporations like Enron, WorldCom and Citigroup, ethics are the most important aspect as an organisation. Everyday all kinds of organisations have to face some kind of moral issue that has the making of a scandal that sometimes will end up in the multimedia business sections. In today’s era, it is a challenge to confront moral dilemmas such as workforce retention, attracting people, promotion, pay, sexual harassment and other HR practices. How a business corporation will respond to these moral issues will affect organisational environment and will also incite legal actions and will result a negative perception from investors and consumers. Human resource planning practises call for not only reaching organisational objectives besides it will also institute and sustain these processes around ethical grounds (Kubal, Baker & Coleman, 2006). HR staff should have the foresight and the character to incorporate in its practises the various value systems in a business corporation. Although this is not just idealism, global competitions compel HR orientation to focus on profit. HR planning practices must consider decisions that are driven by the business or driven for the business. HR should lead as the guardians of the organisation’s strategic ability. Likewise HR practises must also be the guardians of the whole organisation’s ethical and moral integrity (Wright & Snell, 2005). Unquestionably, in having human resource management program it must recognize laws and regulations in dealing with its people. This will make the legal environment of human resources. Due to the fact that this is a complicated aspect of the organisation, this increasingly involves Human Resource Management. Persistent labour laws must be taken into consideration in overall Human Resource Planning formulation because in practising legal compliance is usually the source of strategic edge in the human resource management point of view (Greer, 2001). Human resource management policies and practices are designed to decide employee’s disagreements and make workplace justice. Similarly, an ethical decision to arrive at a solution to this dilemma is the innate character of human resource management practices and has brought about changes to Australian labour laws. Human Resource management role as a ‘strategic partner’ and also the one who will look after employees’ welfare cannot be seen as a neutral overseer of workplace disputes. That is why a development of a code of ethics should be considered when creating human resources planning processes (Van Gramberg &Teicher, 2006). Take the case in workforce resizing under human resource planning processes, there are legal implications in this situation. With regards to employing and terminating people in an organisation, there is training involved that covers different fair employment and antidiscrimination laws. A typical case in this matter was the case of United Steelworkers of America v. Weber (1979). Brian Weber sued Kaiser Aluminum and his union for racial discrimination (Clardy, 2003). On the whole, Human Resource (HR) planning is the process of combining human resource procedural plans with strategic business plans. HR planning is integrated along the whole of the business planning process. After identifying business goals and objectives, HR planning practices deal with building the workforce, capabilities and management needed to implement the strategic plans. HR planning is created to make sure that the organisation has the important ability to compete in the business world considering the unpredictability of today’s economy. External environment considerations such as economic, social, legal, cultural, political, ethics and technology should be taken into account since this will influence HR planning. The concept of HR planning of Eastman Kodak, Corning and Colgate Palmolive is to develop organisational capability that both will facilitate the innovation of human resource management strategy and integrating this with the companies’ business strategy. Human Resource Planning HR Planning: * The process for ensuring that the HR requirements of an organization are identified and plans are made for satisfying those requirements. * Planning for the personnel needs of an organization based on internal activities and external environment * How many people? What sort of people? Definitions: * HRP determines the human resources required by the organization to achieve its goals. It is â€Å"the process of ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements† – Bulla & Scott. It is the process, â€Å"including forecasting, developing and controlling, by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right time doing the work for which they are economically most useful† – E. B. Geisler. * It is a strategy for the acquisition, utilization, improvement and preservation of the human resources of an enterprise. It is the activity of the management to coordinate the requirements for and the availability of different types of employees.This involves ensuring that the firm has enough of the right kind of people at the right time and also adjusting the requirements to the available supply. Objectives of HR Planning: * To ensure quality and quantity of HR at the right time and the right place * To ensure optimum utilization of human resources * To avoid understaffing and overstaffing Importance: * Reservoir of Talent * Expansion/ Contraction * Cutting costs * Succession Planning MANPOWER PLANNING MAKES FOR DIFFERENT PURPOSES AT DIFFERENT LEVELS: MACRO-LEVEL NATIONAL SECTOR – WISE INDUSTRY – WISE MICRO- LEVEL ORGANISATION LEVELOrganizational Objectives & Policies: * Downsizing / Expansion * Acquisition / Merger / Sell-out * Technology up gradation / Automation * New Markets & New Products * External Vs Internal hiring * Training & Re-training * Union Constraints HRP includes four factors: * Quantity- How many people do we need? * Quality- Which skills, knowledge and abilities do we need? * Space-Where do we need the employees? * Time-When do we need the employees and for how long do we need them? Steps in HRP: * Forecasting future people needs * Forecasting the future availability of people * Drawing up plans to match supply with demandHR Demand Forecast: Process of estimating future quantity and quality of manpower required for an organization. * External factors – competition, laws & regulation, economic climate, changes in technology and social factors. * Internal factors – budget constraints, production levels, new products & services, organizational structure & workforce factors. Forecasting Techniques: * Expert forecasts * Trend Analysis * Workforce Analysis * Workload Analysis * Job Analysis Supply Forecasting: * Internal Supply ( Skill Inventory) * Age, gender, education, experience, training, job assignments, past perfor mance, future potential. External Supply Important barometers of Labor Supply: * Net migration into and out of the area * Education Levels of the workforce * Demographic Changes in the population * Technological developments and shifts * National and regional employment rates * Actions of competing employers * Govt. policies, regulations and measures * Economic forecasts for the next few years * Attractiveness of the area/ industry THE PROCESS OF HUMAN RESOUCE PLANNIG GENERAL OVERVIEW: BUSINESS STRATEGIC PLANS RESOURCING STRATEGY PLANNING DEMAND / SUPPLY FORECASTING MANPOWER TURNOVER ANALYSIS WORK ENVIRONMENT ANALYSIS HUMAN RESOURCE PLANSOPERATIONAL EFFECTIVENESS ANALYSIS RESOURCING RETENTION FLEXIBILITY PRODUCTIVITY WORK ENVIRONMENT THE MANPOWER PLANNING PROCESS–FROM THE ORGANISATIONAL VIEW POINT: COMPANY OBJECTIVES AND STRATEGIC PLANS MARKET FORECASTS PRODUCTION OBJECTIVES / CAPITAL PROCESS FINANCE PLAN MANPOWER ANALYSIS INVENTORY EMPLOYMENT PRODUCTIVITY ORGANISATION MANPO WER FORECASTS (FUTURE SITUATION) OVERALL UNIT BUDGET MANAGEMENT MANPOWER MANPOWER APPROVAL MANPOWERFORECAST FORECAST ESTIMATES TOP MANAGEMENT APPROVAL MANPOWER OBJECTIVES AND POLICIES MANPOWER PLANS AND PROGRAMMES RECRUITMENT & SELECTION, CARER PLANNING, PERFORMANCE MANAGEMENT, TRAINING, RETIREMENT ANALYSIS, REDUNDANCIES etc. Formulating HR Plans: * Recruitment Plans * Redeployment Plans * Redundancy Plans * Training Plan * Productivity Plan * Retention Plan Example of the Basic Human Resources Planning Model: Organizational Objectives Human Resource Requirements Human Resource Programs Feasibility Analysis 1 2 3 4 5 Example of the Basic Human Resource Planning Model: Open new product lineOpen new factory and distribution system Develop staffing for new installation Production workers Supervisors Technical staff Other managers Recruiting and training programs feasible Transfers infeasible because of lack of managers with right skills Recruit skilled workers Develop technical trainin g programs Transfer managers from other facilities Develop new objectives and plans Recruit managers from outside Too costly to hire from outside 1 2 3 4 3 5 Forecasting as a Part of Human Resource Planning: DEMAND FORECASTING SUPPLY FORECASTING Determine organizational objectives Demand forecast for each objective Aggregate demand forecastDoes aggregate supply meet aggregate demand? Go to feasibility analysis steps Choose human resource programs External programs Recruiting External selection Executive exchange Internal programs Promotion Transfer Career planning Training Turnover control Internal supply forecast External supply forecast Aggregate supply forecast No Yes Manpower flow in an organization: Inflow Outflow Job Transfers Job recruits Job Relocations Job Hopping Transfers(out) Retirement VRS Scheme Discharge/ Dismissal Termination of service Resignations HR Pool in the Organization Internal Labor Supply: * Analysis of Manning/ Staffing Tables. Replacement Charts- Present incumbents, potential replacements. * Skills Inventory-education, interests, experience, skills, etc. * Succession Planning. * Turnover Analysis. * Wastage Analysis- Retirements, resignation, deaths, dismissals- Labor turnover Index, Stability Index, etc. Trend Analysis: * Projections-Basing it on Organizational Sales * Workforce Analysis- last 5 years * Workload Analysis * Job Analysis Job Analysis: * A systematic process by which information is collected and analyzed with respect to tasks, duties and responsibilities of the jobs within the organization * Job Analysis: What is to be done? How is it to be done? * Under what conditions is the job to be done? * What skills, knowledge and competencies are required to perform the job? * Job Content: Duties, responsibilities, job demands, machines, tools, equipment, performance standard * Job Context: Physical, organizational ad social context, working conditions, work schedule * Human Requirement: Job related knowledge, skills, educatio n, experience, personal attributes Components of Job Analysis: Job Description: written summary of the content and context of the job * Job Specification: Written statement of the knowledge, skills and abilities and other human requirements Questions in Job Analysis Interviews: * What is your job? * What are the major duties of your job? * What are the responsibilities of your job? * What physical locations do you work in? * Under what environmental conditions do you perform your job? * What are the skills, knowledge and experience requirements of your job? * What are the physical and emotional demands that the job makes on you? * What is the performance standards expected on your job? Human Resource Planning Human Resource (HR) Planning is the practice of determining and analysing the requirement for and supply of workforce in order to achieve the organisation’s goals and objectives, fulfil its mission and reach its vision (Mathis & Jackson, 2000). HR planning predicts forces that will affect the availability and requirement of employees in the future. This process will result in top executives having superior analysis of human resource measurement for its decision making; HR expenditure being decreased due to the fact that management can forecast imbalances prior to them becoming costly; additional time will be available to place skills since requirements are predicted and analysed before staffing is done; excellent opportunities are present to comprise female and ethnic groups in upcoming developments; training of new managers can be improved. The outcomes of these can be calculated and can be used for the evaluation of the accomplishments of HR planning (Mathis & Jackson, 2000). Human resource planning is a course of action that will aim to facilitate the organisation’s plan in recruiting, improvement and training, substitution, cross-functional development and management of programs for benefits and rewards. Subsequently to guarantee in building the best valuable human resource plan, the organisation should analyse the necessity of a strategic business plan, work proficiency plan, workforce planning, training and improvement planning, career development planning and planning for right-sizing (Macaleer & Shannon, 2003). Undeniably because of this analysis in HR planning, it is essential to have a sufficient Human Resource Information System (HRIS). The purpose of this is providing accurate, balance and on time information for the process. Now a computer-based system should provide a form of information about human resources necessary for strategic business decision making. This system reflects the relationship between work requirements, employee’s individual skills and levels of performance. In this instance, the information system serves as simple reflections of reality which will help develop better and effective business decisions which are known results in the codification of knowledge (Liff, 1997). In HR planning, external environmental forces should be considered such as present technology, political climate, economic situation, legal issues, social responsibility and cultural differences. Besides these external considerations are extremely important to HR activities especially, if HR planning is globally implemented. The serious pressures that are involve in a business are scarcity of talents, fast shifting technology, government regulations, environment, health, safety and changes in the market. In this situation, the human resource planning innovations of the company are affected. This will make sure that the organisation has the right work force with the right skills in the right jobs at the right moment. There is no argument that human resource planning should be associated with the strategic goals of the company. Hence, human resource planning is an important factor in managing an organisation competently and successfully. Accordingly, HR planning positively improves organisation performance if the HR plan is strategy-based and human resource is a convincing strategic collaborator (Macaleer & Shannon, 2003). Most parts of the world may be in recession and economies are in disorder will result in worldwide effects on organisations and businesses. Any type of HR planning is presented with a surmountable differences of opinion connected with unpredictable and uncertain times. In this case, if the planning is done by HR professionals who have superior knowledge of magnitude and quality of essential resources needed for revitalization, there is optimism of future positive outcomes. According to Robert A. Simpkins (2009), an organisational adviser and educator, there are two types of plans. One is designed to guarantee ‘business continuity’ in the appearance of manmade or natural catastrophe. Second is a plan that is framed for the ‘uncertainty’ of the business environment. HR planning is the most critical part of the organisation’s strategic plans for the reason that observing and adjusting for environmental changes will make the success of the process. All the drivers of the company’s internal and external environment are altering at an accelerating speed including advancements in technology with respect to hardware, software and connectivity, globalization, shifting of sources and consumers, changing competition, changes in markets, the alteration of demographics, change of population lifestyle, the macro and micro changes in economics and the progressively more bewildering government and international regulations (Simpkins 2009). Businesses have the desire to stay significant in the face of consumers and stakeholders. Mostly, the organisations that maintained their importance have built remarkable HR plans that are continually reviewed and modernized. Regrettably, other businesses build better folders that compose overall strategic human resources plans that are short of any back-up planning, and these stay behind on the shelf gathering dust for years, inappropriate to a present shifting business climate. Finally, Simpkins (2009) concludes that an organisation needs to design a communicable HR plan that is not detailed enough to slow down operation. Since HR professionals are with higher-level of understanding, the group will have the elasticity to adjust what will take place in the future. The solution to a positive result is to keep HR plan flexible (Simpkins, 2009). Human resources issues have been the first among all business issues to affect the outcome of a business organisation. Human resources have risks and these risks are the challenges that resulted from managing your employees, processes and procedures. Therefore by dealing with these risks in HR and finance, one can make positive organisational outcomes. On the other hand, if these issues are not addressed appropriately these possibly will cause major harm to the business (Steffee, 2008). Public personnel management research and practices increasingly focus on creative human resource management (HRM) strategies for recruiting individuals with Information Technology (IT) expertise and retaining employees with institutional knowledge, particularly in light of impending retirements. Some agencies face unique workforce demographic challenges, while others face shifts in missions or technologies. For these reasons, the U. S. Office of Personnel Management relaxed some regulations to allow federal agencies to meet their staffing needs (Mastracci, 2009, p. 19). With regards to staffing needs, workforce planning is the course of action that companies utilize to recognize and deal with the staffing implications of their strategic human resources plans or change of business plans. Workforce planning has a sole objective, to develop a long term perspective within which short term workforce decisions can be achieved efficiently. Staffing strategy is a long term plan that makes sure that availability of employees matches its requirement for employees. Staffing plans illustrate short term plans which an organisation will make in the immediate future to deal with staffing gaps and excesses. By implementing this procedure, the businesses can make certain it has the accurate quantity of people, with the appropriate skill, in position at the right moment. Workforce planning can facilitate the execution of business changes and innovations. The growth in organisations is anticipated overtime during the workforce planning phases. This process is essential in determining the staffing that would be required for growth that will make sure the needed skills will be obtainable to accomplish those development goals. It also allows a business company to construct and implement downsizing plans in the best efficient method. The absence of this strategy makes it hard to identify staffing reductions that have a positive effect on the future of the organisation (Bechet, 2008). Rightsizing or downsizing or organisational decimation is a persistent strategic human resource practice for the last thirty years (Gandolfi, 2008). This refers to the planned removal of big quantity of workforce intended to improve organisational efficiency. In fact, this process is a commonly accepted company solution in times of financial difficulties of the organisation. Although studies show enough indication that rightsizing companies is not generally a successful method of reaching goals of optimum output and maximum profit. However, rightsizing sometimes cannot be avoided; workforce reduction ought to be a management means of last resort rather than first option. For the duration of an economic recession, an organisation should think of all its options and examine the viability and applicability of cost-reduction alternatives before considering rightsizing. In fact predicting a business decline can be very hard, therefore, organisations have the immediate reaction rather than forecasting economic downturns (Gandolfi, 2008). Take the case of IBM, although the company planned to steer clear of downsizing its workforce however, the company declared plans of workforce reduction and by the early 1990’s IBM right sized its organisation by decreasing its employment by 40,000 at that time alone. However, IBM made an effort to become reactive by changing products and attempted to acquire the promptness and responsibility edges of fast reacting manufacturers (Greer, 2001). On the other hand, back in the 1980’s a small number of organisations marked workforce planning and marked as part of their human resource strategy. AT&T and some large oil firms were the models of this. Due to the fact that having a large volume of employees, these organisations called for some forms of workforce planning. AT&T made recognition for its succession planning, evaluation and career advancement programs. Rightsizing and reorganising achieved momentum for this time period. Strategic human resource was beginning to expand and become increasingly strategic because of the fast growing economy and globalisation at the end of the decade (Gubman, 2004). In another case, similar to any big organisations, Eastman Kodak has tried with a variety of human resource planning programs for the past decades. One of the successful programs centred on workforce requirements. HR planning by that time was perceived as a method to make certain that the right number and right kind of employees were at the right position at the right moments. Skills assessments were believed to be the suitable base for HR planning. Similar to any firm, Kodak discovered that there were no general definitions of HR planning. The company realised that they ‘borrowed, adapted, discovered and created’ their way to an approach to HR planning that was aligned to the market situation at that time and be reactive to its changes (Bennet & Brush, 2007). We have developed a framework and process for thinking about and doing HR planning, which I’ve labelled: â€Å"HR planning in â€Å"3D. † The three dimensional environment at Eastman Kodak – diversity, decentralisation, and dynamism – has significantly affected the character and objectives of the HR planning process (Bennet & Brush, 2007, p. 46). In this concept, the human resource function at Eastman Kodak Company was restricted with the goals on magnifying the strategic dimensions of human resource management. In this situation, HR is reshaped as a foundation of market competitive edge and new HR planning procedures were built to strengthen this edge. In the 1990’s, the implementation of this procedures required new HR abilities. The company’s made efforts to utilize HR planning to create a tougher and more aggressive corporation (Bennet & Brush, 2007). We have found several key integrative elements which, from an HR standpoint, seem to make sense in a â€Å"3D† environment. These elements are: corporate management themes; HR planning processes; and HR competencies. Working together, in an ensemble of influence and activity, these elements help to create, sustains, and reinforces strategic business unity (Bennet & Brush, 2007, pp. 48-49). Corporate management themes facilitate in building a focus for a united business environment to achieve its objectives. As of HR planning processes, planning is staged at the corporate and business points. In this process, Eastman Kodak Company is creating efficient HR staff and on this level, this will make the company’s HR planning a ‘competitive weapon in our business arsenal’ (Bennet & Brush, 2007). In the belief that the existing process of uniting and sharpening the corporation’s HR goals will result in considerable outcomes over the decades by concentrating our efforts and finances and giving to the corporation’s evolution. In HR competencies, HR planning is designed to support the Kodak Company by developing its ability to face the future and having the objective for improvement of Corporate Relations. An efficient production HR team, a competent HR planning process and the corporate themes put together will create unity of goals and objectives and create production’s capability to implement strategy. On the whole, the Kodak Company started to distinguish the advancement and positive results as the outcome of knowledge acquired on this process. As Kodak Company has started to achieve its goals, there is an opportunity for transformation of HR functions. The corporation anticipate that successful HR planning, in a ‘3D environment’, will be Kodak’s ‘vehicle for landing safely in the 21’st century’ (Boroski, 1990). The point of view on the Annual HR Strategic Planning Process of Corning Incorporated is that the HR staff employs to make HR investments and services the main concern in support with business needs. Overtime, this procedure has contributions from Human Capital Planning process, HR objectives and other organisation innovations. To efficiently attached HR strategy with business strategy a Human Capital Planning process was created in Corning Incorporated. The outcome gave managers tools and skills for ability development and gave HR a method of determining requirements over the organisation. To allow the determination of the skill that will affect the positive outcome of business strategy, HR planning should find out the quantity of employees needed and determine talent gaps. Incorporating both the workforce planning and operating plan process have facilitated to create a more aligned global HR function for Corning Incorporated. Important components of a good HR planning process are composed of different methods for collecting information; corporate strategy input from top executives; direction from top managers and business participation from each business facilitated by HR function. Furthermore, placement of the HR planning process with the business strategy procedures enhances HR’s capacity to support the functions it presents with the requirements for its market Bennet & Brush, 2007). In the early 1990’s, in order to meet Colgate-Palmolive Company’s objective of ‘becoming the best truly global consumer products company’ (Khanna & Randolph, n. d. ) it human resources made the building of its human resources strategy. The corporation is continually dedicated to developing the human resources for sustainable competitive edge in the global market. The HR strategy team was grouped into Geographic Excellence, Category Excellence and Functional Excellence. The Global Human Resources Business Plans is nothing until it is put into action. Colgate should consider consumer’s needs in order to accomplish the innovations of HR planning. HR plays an important part to assist Colgate employees to continually improve. HR makes an effort with management to build training, career planning, performance development, communications and reward systems. The process will make sure that Colgate employees have the chance for advancement, empowerment and continually improve its abilities (Smith, Boroski & Davis, 1992). On other respects, the organisation that is considering outsourcing, HR planning staff should be active partners of workforce planning processes. In the present economic situation, active human resource planning processes integrating flexible workforce preparations are adapted to a much greater degree. Outsourcing is not only part of workforce planning besides it is also a tool in human resource planning. HR planners should be part of the organisational change: evaluation, contract negotiation, transition and stabilisation as these control decisions of the process. HR planning should have the control of the decisions and as the effect of its absence of this practices may result in failures (Khanna & Randolph, 2005). The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organisations at a given point in time. The social responsibilities of a business include to produce goods or services, to make a profit, to obey the laws and regulations, to act ethically, to consider the public good in every decision that is made and to place ethics above personal gains. To be socially responsible a person or business must consider all aspects of society when making a decision. (Clark & Seward, 2000, p. 2) In human resource planning the process should incorporate the highest level of social responsibility. As Milton Friedman maintains that a business organisation has no social responsibilities other than to get the highest possible profits (Ramlall, 2009). In spite of this belief, now there is a general awareness among business organisations that sustainable achievement and stockholders share value cannot be materialised by maximising pr oduction but rather by having social responsible attitude (Ramlall, 2009). In another case, human resource should consider employee participation for good governance and corporate social responsibility. As an evidence of its importance is that, it is the basis as a legal tool in composing international institutions to regulate global corporations. In spite of this, business corporations make a general view in making HR procedures regarding the implementation of corporate social responsibility policies and personal views on employee relations that will affect the overall view of labour relations (Daugareilh, 2008). For multinational corporations like Enron, WorldCom and Citigroup, ethics are the most important aspect as an organisation. Everyday all kinds of organisations have to face some kind of moral issue that has the making of a scandal that sometimes will end up in the multimedia business sections. In today’s era, it is a challenge to confront moral dilemmas such as workforce retention, attracting people, promotion, pay, sexual harassment and other HR practices. How a business corporation will respond to these moral issues will affect organisational environment and will also incite legal actions and will result a negative perception from investors and consumers. Human resource planning practises call for not only reaching organisational objectives besides it will also institute and sustain these processes around ethical grounds (Kubal, Baker & Coleman, 2006). HR staff should have the foresight and the character to incorporate in its practises the various value systems in a business corporation. Although this is not just idealism, global competitions compel HR orientation to focus on profit. HR planning practices must consider decisions that are driven by the business or driven for the business. HR should lead as the guardians of the organisation’s strategic ability. Likewise HR practises must also be the guardians of the whole organisation’s ethical and moral integrity (Wright & Snell, 2005). Unquestionably, in having human resource management program it must recognize laws and regulations in dealing with its people. This will make the legal environment of human resources. Due to the fact that this is a complicated aspect of the organisation, this increasingly involves Human Resource Management. Persistent labour laws must be taken into consideration in overall Human Resource Planning formulation because in practising legal compliance is usually the source of strategic edge in the human resource management point of view (Greer, 2001). Human resource management policies and practices are designed to decide employee’s disagreements and make workplace justice. Similarly, an ethical decision to arrive at a solution to this dilemma is the innate character of human resource management practices and has brought about changes to Australian labour laws. Human Resource management role as a ‘strategic partner’ and also the one who will look after employees’ welfare cannot be seen as a neutral overseer of workplace disputes. That is why a development of a code of ethics should be considered when creating human resources planning processes (Van Gramberg &Teicher, 2006). Take the case in workforce resizing under human resource planning processes, there are legal implications in this situation. With regards to employing and terminating people in an organisation, there is training involved that covers different fair employment and antidiscrimination laws. A typical case in this matter was the case of United Steelworkers of America v. Weber (1979). Brian Weber sued Kaiser Aluminum and his union for racial discrimination (Clardy, 2003). On the whole, Human Resource (HR) planning is the process of combining human resource procedural plans with strategic business plans. HR planning is integrated along the whole of the business planning process. After identifying business goals and objectives, HR planning practices deal with building the workforce, capabilities and management needed to implement the strategic plans. HR planning is created to make sure that the organisation has the important ability to compete in the business world considering the unpredictability of today’s economy. External environment considerations such as economic, social, legal, cultural, political, ethics and technology should be taken into account since this will influence HR planning. The concept of HR planning of Eastman Kodak, Corning and Colgate Palmolive is to develop organisational capability that both will facilitate the innovation of human resource management strategy and integrating this with the companies’ business strategy.

Christianinty in Beowulf - 686 Words

Beowulf is an epic poem that is highly revered by scholars. The poem focalizes on the hero Beowulf – a Geat belonging to Sweden – and his journey to capturing immortality through his achievements and legacy: Beowulf secures victories in vicious fights with baneful creatures. A religious presence – of both Christian and Pagan beliefs – seems to be steadfast, all through Beowulf’s battles; on the account of these battles, readers can infer that even the strongest heroes need spiritual assistance or motivation to succeed. During the period of Beowulf‘s conception, pagan practices were prominent. The pagan society believed in the idea of fame: the society did not believe in the concept of the afterlife, so the only way people saw to transcend their lives – ‘life on after death’– was to achieve a legacy that was brimful of fame, or glory. Beowulf is no exception to this practice. Beowulf’s victories sprung from the motivation of attaining glory. In the midst of the battle against Grendel’s mother, â€Å"Hygelac’s Kinsman [Beowulf] kept thinking about / his name and fame: he never lost heart. / â€Å"(107). Beowulf is egged on, by his name and glory, to achieve victory over Grendel’s mother, whilst he was struggling: his sword â€Å"refused to bite† (105), and Grendel’s mother was beginning to lead during the battle. Being egged on by pagan beliefs, Beowulf is able to secure victory, and â€Å"his glory was secure[d]/† (113).Beowulf motivation, of fame and glory, is also ascertained in his