REPORT ON

HR PLANNING HELPS TO REDUCE

ORGANIZATIONS’ COSTS
HR PLANNING HELPS TO REDUCE ORGANIZATIONS’ COSTS

SPRING 2020

HUMAN RESOURCES PLANNING

HRM 686

SECTION – A

Submitted To:
Md. Musharrof Hossain
Founder President, FBHRO
Adjunct Faculty Member
School of Business & Economics
United International University

Submitted By:
NAME ID
MD. WASIF IMAM 112 193 009
JHORNA AKTER SHOVA 112 192 020
TANVEER AHSAN 112 181 002
M.M. SAYEM SAKIB 112 193 030
HOSSAIN AHMED SOHAN 112 183 020
TAMANNA TABASSUM MIM 115 192 002

MAY 17, 2020

UNITED INTERNATIONAL UNIVERSITY

Letter of transmittal

May 17, 2020

Md. Musharrof Hossain,

Founder President, FBHRO
Adjunct Faculty Member
School of Business & Economics
United International University
United City, Madani Avenue, Badda, Dhaka-1212

Subject: Submission of term report of Human Resources Planning

Dear Sir,

I, on behalf of our group members, would like to draw your kind attention that we are submitting
term report on “HR planning helps to reduce organizations’ costs”. We have tried our very best to
prepare a worthy term paper by collecting relevant information, analyzing and interpret them
sincerely. We believe that all these ideas from this assignment will help us in our future practical
life.

I would like to take the opportunity to thank you for all the support and guidelines you have
provided and hope to get your feedback on the assignment.

Thanking you

Md. Wasif Imam

EXECUTIVE SUMMARY

Human Resource Planning is the process of determining future employee needs and deciding steps
or strategies to achieve those needs for the purpose of accomplishing organizational goals and
objectives. It is a Human Resource Management function that focuses on providing the
organization with an adequate manpower. Main objective of Human Resource Planning is to
ensure that the business having the right people at the right place at the right time doing the right
work. Human Resource Planning enable the management of the company to determine future
employee needs, to utilize human resource more efficiently and effectively, to control employment
cost, to develop high talent employees and to formulate and successfully implement strategies.
HRP or the work-force planning is a one of the most impactful aspects of the today’s business.

Human Resource Planning is an on-going process rather than a process limited to one stand-pint
and then implemented. It in the broadest sense included both the strategic and operational human
resources of the organization. It is a strategically driven HRM function that leads the company to
acquire competitive advantages. Human resource gain competitive advantages by gaining cost
economics, by operating productively, efficiently and effectively and by changing operations and
acquiring new enterprises.

This report begins with discussing the matter of Human Resource Planning applying to a selected
organization. It will be discussed the considerations regarding the employment and the employees
such as the legal and organizational framework, organizational environment, grievance, discipline
and dismissal processes and analyze how Human Resources Planning of an organization can
contribute to reduce the cost and helps to increase the profitability so that organization can do the
wealth maximization having competitive advantages over its competitors.
TABLE OF CONTENTS
1 INTRODUCTION ........................................................................................................................ 1

1.1 BACKGROUND OF THE REPORT ........................................................................................... 2

1.2 OBJECTIVES OF THE REPORT .............................................................................................. 2

1.2.1 BROAD OBJECTIVE ...................................................................................................... 2

1.2.2 SPECIFIC OBJECTIVES.................................................................................................. 2

1.3 SCOPE OF THE STUDY ......................................................................................................... 3

1.4 LIMITATIONS OF THE REPORT ............................................................................................. 3

2 PROFESSIONAL RESEARCH ON THE TOPIC .............................................................................. 5

2.1 MEANING OF HUMAN RESOURCE PLANNING ....................................................................... 5

2.2 CLASSIFICATION OF HUMAN RESOURCE PLANNING ............................................................ 6

2.3 PURPOSE OF HUMAN RESOURCE PLANNING ........................................................................ 7

2.4 HUMAN RESOURCE PLANNING PROCESS ............................................................................. 9

2.5 STEPS OF HUMAN RESOURCE PLANNING PROCESS ............................................................ 11

2.6 CHARACTERISTICS OF HUMAN RESOURCE PLANNING: ...................................................... 12

2.7 MERITS OF HUMAN RESOURCE PLANNING ........................................................................ 13

2.8 LIMITATION OF HUMAN RESOURCE PLANNING ................................................................. 15

2.9 TOOLS NEED FOR HR PLANNING: ...................................................................................... 17

2.10 FACTORS THAT AFFECTING HUMAN RESOURCE PLANNING ............................................... 17

2.11 FORECASTING HUMAN RESOURCES DEMAND ................................................................... 18

2.12 HUMAN RESOURCES SUPPLY FORECASTING: .................................................................... 20
3 METHODOLOGY ..................................................................................................................... 21

3.1 SOURCES OF DATA ........................................................................................................... 21

3.2 PRIMARY SOURCES .......................................................................................................... 21

3.2.1 SECONDARY SOURCES .............................................................................................. 21

3.3 PERSONAL INTERVIEW ..................................................................................................... 22

3.4 DATA PROCESSING ........................................................................................................... 22

3.5 REPORT WRITING ............................................................................................................. 22

4 DATA FINDINGS, ANALYSIS & INTERPRETATION .................................................................. 23

4.1 ABOUT NESTLE ................................................................................................................ 23

 4.2 HOW HUMAN RESOURCE PLANNING WORKS AT NESTLE ................................................... 23
4.3 DATA FINDINGS & INTERPRETATIONS .............................................................................. 26

4.4 ANALYSIS ON NESTLE ...................................................................................................... 29

4.4.1 COST CONTRIBUTION ANALYSIS ............................................................................... 29

4.5 ABOUT HSBC .................................................................................................................... 30

4.5.1 HOW HUMAN RESOURCE PLANNING WORKS AT HSBC ................................................ 31

4.5.2 TYPES OF RECRUITMENT ........................................................................................... 32

4.5.3 RECRUITMENT SOURCES AND METHODS: .................................................................. 32

4.5.4 COMPETITORS AND OTHER ORGANIZATIONS ............................................................. 33

4.5.5 HIRING INTERNAL EMPLOYEES ................................................................................. 33

4.5.6 EFFECTIVE RESOURCING STRATEGY ......................................................................... 34

4.5.7 EFFECTIVE LEARNING & DEVELOPMENT ................................................................... 34

4.5.8 COMPETITIVE COMPENSATION PACKAGES ................................................................ 35

4.5.9 PAY FOR PERFORMANCE ........................................................................................... 35

4.5.10 REDUCE TURNOVER .................................................................................................. 35

4.5.11 EMPLOYEE GRIEVANCE POLICY ................................................................................ 36

4.5.12 IMPLEMENTING TECHNOLOGY .................................................................................. 36

4.5.13 OUTSOURCING PRACTICES ........................................................................................ 37

4.5.14 GOING FOR CONTRACTUAL EMPLOYEES: .................................................................. 37

4.6 DATA FINDINGS & INTERPRETATIONS ON HSBC ................................................................ 37

4.7 ANALYSIS ON HSBC .......................................................................................................... 38

4.7.1 COST CONTRIBUTION ANALYSIS ............................................................................... 40

5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ........................................................... 41

5.1 SUMMARY ....................................................................................................................... 41

5.2 RECOMMENDATION ......................................................................................................... 42

5.2.1 CONCLUSION ............................................................................................................ 43

6 REFERENCES .......................................................................................................................... 44
1 INTRODUCTION

In organization it is necessary that they have enough employees and the perfect people at the right
position for right time. Human Resource Planning consists of a series of activities such as
Forecasting of manpower requirement in future, making an inventory of present manpower
resource. Manpower planning is essential for identifying areas in which there is shortage of
personnel or the areas for surplus of personnel.

Despite of the fact that human resources are the most important asset of an organization at many
cases one cannot see its reflection in the organizational decisions. The current business trends show
that in most of the organizations both employees and the Human Resource activities are relatively
given less importance. Business experts contend by saying that HR is still expensive for
organizations and is a liability, which comes from the lack of business understanding by the HR
professional and further their incompetence in giving direction to the HR activities towards
evolving the attributes of the human resources of an organization eventually affecting its strategies.

Given today’s volatile economies and hypercompetitive markets, businesses are under constant
pressure to compress costs and improve profitability. For HR, this challenge is multi-faceted as
the department is tasked with cutting costs, without cutting heads, and boosting productivity,
employee morale, and engagement at the same time. However, being a strategic business function,
HR has numerous advantages and can really help companies cut costs.

The reduction of the amount of money spent on the operations of an organization or on the
provision of products and services. Cost-cutting measures such as budget reductions, salary
freezes, and staff redundancies may be taken by an organization at a time of recession or financial
difficulty or in situations where inefficiency has been identified. Alternative approaches to cost-
cutting include modifying organizational structures and redesigning organizational processes for
greater efficiency. Excessive cost-cutting may affect productivity and quality or the organization’s
ability to add value cost cutting strategy or cost reduction both are same. It is broad program where
everyone is focused on reducing cost from each areas of manufacturing activity. cost reduction can
be achieved through reduction, elimination, modification, substitution or innovation. All cost

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drivers are taken into account and with thorough analysis the best and least cost path is adopted
for each activity. The best method to achieve results are to bench mark operating parameters to
world class companies. This rives every One to match or even surpass these figures.

1.1 BACKGROUND OF THE REPORT

There is no doubt that the world of work is rapidly changing. As part of an organization then, HRM
must be equipped to deal with the effects of the changing world of work. For them this means
understanding the implications of globalization, technology changes, workforce diversity.
Changing skill requirements, continuous improvement initiatives contingent workforce,
decentralized work sites and employee involvement are the issue for confront. Now it is a big
challenge for the HRM to support the organization by providing the best personnel for the suitable
position in shortest possible time. Starting with recognizing the vacancies and planning for them
is a great task. Moreover, selecting attracting the suitable candidates and selecting the best person
in time is a challenge.

The cost of the recruitment is significant. So, proper planning and formulate those plans is the task
that require more focus and improvement. Equal opportunity and sourcing are also a vital part.
Realizing this need we tried to find the difference and similarities between theoretical aspects with
the practical steps taken by the company. We took an attempt to demonstrate the feature for the
further improvement.

1.2 OBJECTIVES OF THE REPORT

BROAD OBJECTIVE
The Broad or General Objective of this report is to have a thorough understanding about
organization intangible assets (employee’s) productivity and implementation of Human resources
planning and the employee’s perception over it.

SPECIFIC OBJECTIVES
• To understand relationship between the employees and their work environment.
• To understand the relationship between Human resources planning and employee’s
performance.
• To understand the process of implementing Human resources planning within the
organization.
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 • To analyze workplace factors affecting the employee’s performance.
• To suggest the measures to improve the working conditions for better performance.
• To understand associate’s viewpoint.
• To recommendation few scopes of improvement.

1.3 SCOPE OF THE STUDY

This report is prepared as a requirement of the course “Human Resource Management” We

selected HSBC and Nestlé. Working on these organizations we came to know various kinds of
HRM practices which are used here. Though the HSBC Group is an unusual banking business, on
the other hand Nestlé is the world's largest food and beverage company, they have proved
themselves in the related industry as a major competitor. In this report we have followed the
guidelines provided by the teacher. Here we have tasked not only the HRP Practices but also the
marketing, management, finance and operational area of the Company.

1.4 LIMITATIONS OF THE REPORT

Although we have tried to find out the relationship between our theoretical knowledge and
practical implication, I have found some differences between what we learn in theory and what
are practical. The report was completed under the following constraints

➢ Time is a major limitation that would mostly with stands a comprehensive study on the
topic selected.
➢ Various confidential matters, forms, report, were not disclosed to us from HRD.
➢ Some strategies of business and operation were restricted to handover.
➢ Improper combination among various departments.
➢ Unwilling to give information more because of extra harassment without their
responsibility.
➢ Being busy also another reason of not giving more information.
➢ Limited service hour.

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➢ It was difficult to find out the gap between rules and regulations and real-life practice. So,
we went under a huge stress to find out those matters.
➢ Banking employees are very busy. Sometimes it seems hard to get their attention
➢ Lack of published relevant documents
➢ Lack of website information to reach on any nice ending.
➢ Facing hassle also to make communication with employees of the organization.
➢ In some cases, verifications of data were become tough.
➢ Unavailability of necessary documents.

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2 PROFESSIONAL RESEARCH ON THE TOPIC

2.1 MEANING OF HUMAN RESOURCE PLANNING

HRM is a capacity inside an association focused on enrolling, overseeing and coordinating

individuals who work in it. Human Resource Management manages issues identified with pay,
execution administration, association improvement, security, wellbeing, benefits, worker
inspiration, preparing and others. A comprehensive HR design covers numerous critical objectives
and duties regarding organizations, including enlisting capable staff, administration of finance and
advantages, organization over representative arrangements and representative preparing programs.
A HR design can address both strategic and vital needs

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Human Resource Planning is a procedure through which the organization expects future business
and natural powers. It evaluates the labor necessity for future timeframe. It endeavors to give
adequate labor required to perform hierarchical exercises. HR arranging is a persistent procedure
which begins with distinguishing proof of HR targets, travel through investigation of labor assets
and closures at evaluation of HR arranging. Human asset arranging, or HRP, is the progressing,
consistent procedure of precise wanting to accomplish ideal utilization of an association's most
important resource — its HR. The goal of human asset arranging is to guarantee the best fit
amongst workers and occupations while maintaining a strategic distance from labor deficiencies
or surpluses.

2.2 CLASSIFICATION OF HUMAN RESOURCE PLANNING

Human Resource Planning can be -

➢ complex or simple,
➢ implicit or explicit,
➢ impersonal or personal.

For example, a human resource manager forecasting demand for the firm’s human resources, may
rely on complex econometric models or casual conversation with human resource personnel in the
field. According to Cascio (1992), HRP itself can be either strategic (long term and general) or
operational (short term and specific).

HRP may be organization-wide, or it may be restricted to divisions, departments, or any common

employee group. It may be carried out on a recurring basis (e.g. annually) or only sporadically
(e.g., when launching a new product line or at the outset of a capital expansion project).

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2.3 PURPOSE OF HUMAN RESOURCE PLANNING

HRP is essential to forecast human resource requirements accurately. Once we are sure about the
numbers and the quality of personnel required, it becomes easy to strike a balance between demand
and supply. HR planning helps a firm to cope with changes in market conditions such as
competition, technology, regulatory framework, etc. in an effective way. HRP makes it possible
for a company to have a vast pool of qualified people for vacancies that are likely to arise now and
also in future. Some of the compelling reasons that favor HRP may be listed thus:

Work can be Carried out Smoothly

Internal Supply Position could be assessed at the Right Time

Demand-Supply Imbalances could be arrested

Possible to Cope with Sudden Changes such as Expansion, Diversification, etc

Easy to Cope with Changes in Technology

Avoid Ups and Downs in Availability of People with Relevant Skills and Qualifications

✓ Work can be Carried out Smoothly:

To carry on its work, each organization needs personnel with the necessary qualifications,
skills, knowledge, work experience and aptitude for work. These are provided through
effective manpower planning.

✓ Internal Supply Position could be assessed at the Right Time:

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 Since a large number of persons have to be replaced who have grown old, or who retire,
die or become incapacitated because of physical or mental ailments, there is a constant
need for replacing such personnel. Otherwise, the work would suffer.

✓ Demand-Supply Imbalances could be arrested:

Human resource planning is essential because of frequent labor turnover which is
unavoidable and even beneficial because it arises from factors which are socially and
economically sound such as voluntary quits, discharges, marriage, promotions; or factors
such as seasonal and cyclical fluctuations in business which cause a constant ebb and
flow in the workforce in many organizations.

✓ Possible to Cope with Sudden Changes such as Expansion, Diversification, etc.:

In order to meet the needs of expansion programmes human resource planning is
unavoidable. It becomes necessary due to increase in the demand for goods and services
with growing population, a rising standard of living — larger quantities of the same
goods and services are required.

✓ Easy to Cope with Changes in Technology:

The nature of the present workforce in relation to its changing needs also necessitates the
recruitment of new labor. To meet the challenge of a new and changing technology and
new techniques of production, existing employees need to be trained or new blood
injected in an organization.

✓ Avoid Ups and Downs in Availability of People with Relevant Skills and Qualifications:
Manpower planning is also needed in order to identify areas of surplus personnel or areas
in which there is a shortage of personnel. If there is a surplus, it can be redeployed; and if
there is shortage, it may be made good.

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2.4 HUMAN RESOURCE PLANNING PROCESS

Objectives of Analyzing current Forecasting

Analyzing the
human resource manpower demand and supply
man power gaps
planning inventory of human resources

Evaluation of human Training and

Employment plan
resource planning Development

1. Objectives of human resource planning:

The foremost step in every process is the determination of the objectives for which the process is
to be carried on. The objective for which the manpower planning is to be done should be defined
precisely, so as to ensure that a right number of people for the right kind of job are selected. The
objectives can vary across the several departments in the organization such as the personnel
demand may differ in marketing, finance, production, HR department, based on their roles or
functions.

2. Analyzing current manpower inventory:

The next step is to analyze the current manpower supply in the organization through the stored
information about the employees in terms of their experience, proficiency, skills, etc. required to
perform a particular job. Also, the future vacancies can be estimated, so as to plan for the
manpower from both the internal (within the current employees) and the external (hiring
candidates from outside) sources. Thus, it is to be ensured that reservoir of talent is maintained to
meet any vacancy arising in the near future.

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3. Forecasting demand and supply of human resources:

Once the inventory of talented manpower is maintained; the next step is to match the demand for
the manpower arising in the future with the supply or available resources with the organization.
Here, the required skills of personnel for a particular job are matched with the job description and
specification.

4. Analyzing the man power gaps:

After forecasting the demand and supply, the manpower gaps can be easily evaluated. In case the
demand is more than the supply of human resources that means there is a deficit, and thus, new
candidates are to be hired. Whereas, if the Demand is less than supply, there arises a surplus in
the human resources, and hence, the employees have to be removed either in the form of
termination, retirement, layoff, transfer, etc.

5. Employment plan:

Once the manpower gaps are evaluated, the action plan is to be formulated accordingly. In a case
of a deficit, the firm may go either for recruitment, training, interdepartmental transfer plans
whereas in the case of a surplus, the voluntary retirement schemes, redeployment, transfer, layoff,
could be followed.

6. Training and Development:

The training is not only for the new joiners but also for the existing employees who are required
to update their skills from time to time. After the employment plan, the training programmes are
conducted to equip the new employees as well as the old ones with the requisite skills to be
performed on a particular job.

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7. Evaluation of human resource planning:

After doing all the above steps it is necessary to evaluate the effectiveness of human resource
planning. Here the human resource plan is compared with its actual implementation to ensure the
availability of a number of employees for several job. Thus, human resource planning is a
continuous process that begins with the appraisal or feedback and control of the planning process.

2.5 STEPS OF HUMAN RESOURCE PLANNING PROCESS

HR Planning process simply involves the following four broad steps.

Assess your Forecast Integrate the plan with

Identify HR
current human future HR your organization
Gaps
resource capacity requirements overall strategy

Step1: Assess your current human resource capacity: Start by looking at your current human
resources state of play. This will involve analyzing the HR strength of your organization across
factors including employee numbers, skills, qualifications, experience, age, contracts, performance
ratings, titles, and compensations. During this phase, it’s a good idea to gather insight from your
managers who can provide real-world feedback on the human resource issues they face, as well as
areas in which they think changes are necessary.

Step2: Forecast future HR requirements: You will then need to look at the future HR needs of
your organization and how human resources will be applied to meet these organizational goals.
HR managers will typically look at the market or sectoral trends, new technologies that could
automate certain processes, as well as industry analysis in order to gauge future requirements. Of
course, there are a number of factors affecting human resource planning such as natural employee

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attrition, layoffs, likely vacancies, retirements, promotions and end of contract terms. Above all of
this, you will need to understand the goals of the organization: are you entering a new market,
launching new products or services, expanding into new areas. Forecasting HR demand is a
complex task based on several dynamics. Being informed and having a seat, or at least an ear, at
boardroom level is essential if you are to make accurate HR projections.

Step3: Identify HR Gaps: An effective human resource plan walks the fine line between supply
and demand. By assessing the current HR capacity and projecting future requirements you should
have a clear picture of any gaps that exist. Using your HR forecast you can better judge if there
will be a skills gap, for example. Should you upskill existing employees or recruit employees who
are already qualified in specific areas? Are all current employees being utilized in the right areas
or would their skills be better suited to different roles?

Step4: Integrate the plan with your organization overall strategy: After you’ve assessed your
current human resources capacity, projected future HR demands and identified the gaps, the final
step is to integrate your human resources plan with your organizational strategy. On a practical
level, you will need a dedicated budget for human resources recruiting, training or redundancies,
and you will also need management buy-in across the business. You will need cooperation and the
necessary finances in order to implement the plan and a collaborative approach from all
departments to put it into practice.

2.6 CHARACTERISTICS OF HUMAN RESOURCE PLANNING:

➢ HRP aims at fulfilling corporate strategies and goals through effective utilization of human
resources. As such, it is effectively aligned with the business strategies of the organization.

➢ HRP is not a solitary act. Rather, it is a process involving a series of related activities
carried out on a continuous basis.

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 ➢ HRP not only meets the short-term HR requirements of an organization, but also
determines its long-term strategies and future directions from the HR perspective.

➢ HRP is a logical and efficient decision-making activity involving systematic analysis of

data gathered in a scientific manner. Thus, it is neither a haphazard nor an ad hoc activity.

➢ It emphasizes both the quantitative (number of personnel) and the qualitative (nature of
personnel) dimensions of human resources at every stage.

2.7 MERITS OF HUMAN RESOURCE PLANNING

As manpower planning is concerned with the optimum use of human resources, it can be of great
benefit to the organization, in particular and to the nation in general. At the national level, it
would be concerned with factors like population, economic development, educational facilities
and labor mobility. At the level of the organization, it is concerned with requirements, sources of
availability, the welfare of human resources etc.

1. Improvements of labor productivity:

Manpower or human resources as a factor of production differs from other factors of

production. As it is subject to its free will, the productivity of labor can be improved if the
workers are kept satisfied. In other words, just as satisfied workers can be productive,
dissatisfied workers can be destructive. Therefore, through proper human resource planning
we can improve the morale of the labor and improve labor productivity.

2. Recruitment of Qualified Human Resources:

Talented and skilled labor has become a scarce resource especially in developing countries.
Therefore, for the long run survival of the firm, it is essential to recruit the best labor force
through proper manpower planning.

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3. Adjusting with the Rapid Technological Change:

With the change in technology, the job and job requirements are also changing. Therefore, it
is necessary to forecast and meet the changing manpower, which can withstand the
challenges of the technological revolution. This can be done only through effective
manpower planning.

4. Reducing Labor Turnover:

The labor turnover refers to the mobility of labor out of the organization due to various
factors such as dissatisfaction, retirement, death etc. Due to labor turnover, a firm will be
losing experienced and skilled labor force. This loss can be minimized only through efficient
manpower planning.

5. Control over Recruitment and Training Cost:

Highly skilled personnel are in short supply and it is very costly to hire, train, and maintain
them. A company has to incur heavy costs in processing the applications, conducting written
tests, interviews etc., and in the process of providing adequate training facilities. In
consideration of these costs, it is essential to plan carefully in relation to the manpower so as
to reduce the recruitment and training cost.

6. Mobility of Labor:

Today, it is very difficult to maintain the qualified personnel in an organization as they will
be moving from one job to another in search of better prospects. In a free society, human
beings enjoy unrestricted mobility from one part of the country to the other. Therefore, in
order to reduce the loss of experienced and skilled labor, every organization must have a
sound system of manpower planning.

7. It cans Facilitate Expansion Programs:

In these days of rapid industrial development, every company goes for expansion of its
activities. As a result of the increasing company size, the demand for human resources also

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 increases. This necessitates proper manpower planning so as to ensure the continued supply
of the required manpower for the firms’ activities.

8. To Treat the Manpower like Real Corporate Assets:

Today it is being increasingly felt by the practicing managers and psychologists that men in
an organization must be treated like the most significant assets. The productivity of a
company can be improved only through manpower planning, recognizing the significance of
the human factor in business. Proper manpower planning considers the fact that satisfied
workers can contribute a lot to the overall profitability of the firm through improved
productivity.

2.8 LIMITATION OF HUMAN RESOURCE PLANNING

Some limitation of Human resource Planning is given below-

1. Recent Origin:

So, it lacks universally approved academic base. Different people try to define the term
differently. Some thinkers consider it as a new name to personnel management. Some
enterprises have named their traditional personnel management department as human resource
management department. Such superficial actions may not bear much fruit. What is actually
required is a fundamental change in attitudes, approaches and the very management
philosophy. Without such a change, particularly at the top management level, renaming of
personnel department or reigniting the personnel officer may not serve the purpose. With the
passage of time an acceptable approach will be developed.

2. Lacking Support of Top Management:

HRM should have the support of top-level management. The change in attitude at the top can
bring good results while implementing HRM. Owing to passive attitude at the top, this work

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is handled by personnel management people. Unless there is a change in approach and attitude
of top management nothing remarkable will happen.

3. Improper Actualization:

HRM should be implemented by assessing the training and development requirements of

employees. The aspirations and needs of people should be taken into account while making
human resource policies. HRM is actuated half-heartedly. The organizing of some training
programmed is considered as the implementation of HRM. With this, management’s
productivity and profitability approach remain undisturbed in many organizations.

4. Inadequate Development Programmed:

HRM needs implementation of programmed such as career planning, on the job training,
development programmed, MBO, counselling etc. There is a need to create an atmosphere of
learning in the organization. In reality HRM programmed are confined to class room lectures
and expected results are not coming out of this approach.

5. Inadequate Information:

Some enterprises do not have requisite information about their employees. In the absence of
adequate information and data base, this system cannot be properly implemented. So there is
a need to collect, store and retrieval of information before implementing human resource
management. In many organizations, even the professionals misunderstand HRM as
synonymous with HRD. Some class room training programs are generally arranged, which are
called HRD programs. These programs are understood as human resources management. Such
casual class room programs are not the actual HRM programs. Even a well planned and
executed HRD program is not HRM. HRD is only a part of HRM which is an integrated
approach to management. Undoubtedly, human resource management suffers from such
limitations. But the impact it has made on the managerial effectiveness has been spectacular
wherever it was introduced. Actually, speaking a real need exists in every Indian organization
for an HRM approach.

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2.9 TOOLS NEED FOR HR PLANNING:

➢ Organizational Charts

➢ Responsibility Assignments Matrix.

➢ Text.

➢ Networking.

➢ Organizational Theory.

➢ Expert Judgement.

➢ SWOT Analysis.

2.10 FACTORS THAT AFFECTING HUMAN RESOURCE PLANNING

Human resource Planning can be defined as the process of identifying the number of people
required by an organization in terms of quantity and quality. All human resource management
activities start with human resource planning. So, we can say that human resource planning is the
primary activity of human resource management.

1. Employment:

HRP is affected by the employment situation in the country i.e. in countries where there is greater
unemployment; there may be more pressure on the company, from government to appoint more
people. Similarly, some company may force shortage of skilled labor and they may have to appoint
people from other countries.

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 2. Technical Change in the society:

Technology changes as a very fast speed and new people having the required knowledge are
required for the company. In some cases, company may retain existing employees and teach the
new technology and, in some cases, the company have to remove exiting people and appoint new.

3. Organizational Changes:

Changes take place within the organization from time to time i.e. the company diversify into new
products or close down business in some areas etc. in such cases the HRP process i.e. appointing
or removing people will change according to situation.

4. Demographic Changes:

Demographic changes refer to things referring to age, population, composition of work force etc.
A new batch of graduates with specialization turns out every year. This can change appointment
or removal in the company.

5. Multicultural workforce:

Workers from different countries travel to other countries in search of job. When a company plan
its HRP it needs to take into accounts this factor also.

2.11 FORECASTING HUMAN RESOURCES DEMAND

Human Resource is undoubtedly an important part of any organization. Hence, every organization
must have the right number of the workforce at the right place and that too at the right time. In
order to efficiently plan the workforce, the proper needs of human resource are very necessary.

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1. Managerial Judgement:

Under this method, firstly experienced managers estimate the manpower requirements for their
respective departments. This is done on the basis of their knowledge of expected future
workload and employee efficiency. At last, the top management then aggregates and approves
the departmental estimates. This is a very easy and time-saving method.

But it is quite subjective and is, therefore, suitable only for small firms. The assistance of work
study, O&M, and human resource experts can refine the estimates based on experience. This
method helps in judging the informal group norms on Human Resource Forecasting.

2. Work Study method:

This method uses time and motion study to analyze and measure work. Such studies help
the managers to decide the standard time for per unit work.

3. Ratio Trends Analysis:

This method helps to calculate the ratios on the basis of past data. Firstly, it calculates the
future ratios on the basis of the time series analysis/extrapolation, after making allowances
for the changes in the organization, method, and jobs, if any. Extrapolation is mathematical
extensions of past data into the future time period. Moving averages and exponential
smoothing can help for projections. The company estimates the demand for human
resources on the basis of ratios.

4. Mathematical Models:
A mathematical model shows the relationship between independent variables and the
dependent variables. These models express various factors influencing manpower needs in
the form of a formula.

There are several types of models, for example, regression, optimization models,
probabilistic models, etc. These are complex and suitable only for large organizations.

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 Future demand for human resources depends on several factors, some of which are given
below:
I. Employment trend:
By comparing and analyzing the staff during the past five years, the company can
judge its trends in the manpower.
II. Replacement Needs:
These depend on firstly retirement, and then on death, resignation, and termination
of employees. Its assessment is on the basis of past experience and retirement
situation in the future.
III. Productivity:
Improvements in productivity effects manpower needs. Better utilization of
existing manpower is one method of securing gains in productivity. Automation
and computerization is another method of productivity improvement. It will affect
both the quantity and quality of manpower. Matching of skills with job
requirements is the third method. Hence, Job analysis techniques are helpful in such
a matching.

2.12 HUMAN RESOURCES SUPPLY FORECASTING:

1. Existing employee:
• Skills inventory: From the audit of non-managers company can get the
information about the supply forecasting of employees.
• Management inventory: From the audit of the managers about work history,
strength and Weaknesses Company can get this information.
2. Internal Sources:
• Inflow and outflow: Organization can get information for forecasting the
supply of employee from the inflow and outflow of employees in the
organization.
• Movement among jobs: They can get the information about supply
forecasting from the movement of the employees among the jobs.

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3 METHODOLOGY

Methodology refers to the systematic method consisting of enunciating the problem, formulating
a hypothesis, and collecting the facts or data, analyzing the facts and reaching certain conclusions
either in the form of solutions towards the concerned problem or in certain generalizations for
some theoretical formulation. It includes the process of gathering, recording and analyzing critical
and relevant facts about any problem in any branch of human activity. It refers to critical searches
into study and investigation of problem/ proposed course of action/hypothesis or a theory.

3.1 SOURCES OF DATA

The data and information of this report are collected from –

• Primary sources
• Secondary sources and
• Personal interview

3.2 PRIMARY SOURCES

The data were collected through personal interview and discussion. Two sets of questionnaires
were prepared to carry out the study. The subject matters of the questionnaire were related to the
objectives. It will then circulate among the targeted personnel of HSBC & Nestle.

So, basically the primary data collected from the following sources:
➢ Face to face discussion.
➢ Telephone discussion.
➢ Oral interview of the responsible officers.

SECONDARY SOURCES
The secondary data collected from the following sources:

➢ Annual Report,
➢ Brochure,
➢ Job Description,

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 ➢ Policy,
➢ Slandered Operating Procedure (SOP),
➢ Booklet,
➢ Published Materials,
➢ Training Materials and
➢ web side of HSBC & Nestle.

3.3 PERSONAL INTERVIEW

The interview sessions were conducted with some Junior Officer, Senior Officer an HR Manager
of the company.

3.4 DATA PROCESSING

The data processing is involved two important steps.

• The first step was to categorize and the second step to allocate individual answers to them.
The set of coding frames covering all the information was abstracted from the
questionnaires. The purpose of coding was to classify the answers to a question into
meaningful categories, so as to bring out their essential pattern.

• Once the data is edited and coded, they would be put together in some kinds of one-way
and two-way tables and some other forms after the statistical analysis are made.

3.5 REPORT WRITING

The data were analyzed and prepared a descriptive report. The reports emphasized on all the related
aspects in the perspective of the objectives of the Final Report so that a clear picture by important
indicators is presented with possible suggestions. The report was finalized after reviewing of the
supervisor.

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4 DATA FINDINGS, ANALYSIS & INTERPRETATION

4.1 ABOUT NESTLE

Nestle Aliment Ana, Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd. the
Company expanded its product range with new products in instant coffee, noodles, sauces,
pickles, culinary aids, chocolates and confectionery, dairy products and mineral water. Nestlé can
trace its origins back to 1866, when the first European condensed milk factory was opened in
Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later, Henri Nestlé,
a trained pharmacist, launched one of the world’s first prepared infant cereals ‘Farine lactée’ in
Vevey, Switzerland. With headquarters still based in the Swiss town of Vevey. We employ around
280 000 people and have factories or operations in almost every country in the world. Nestlé sales
for 2010 were almost CHF 110 bn. today Nestlé Bangladesh Ltd. is a strongly positioned
organization. The Company will continue to grow through our policy of constant innovation and
renovation, concentrating on our core competencies and our commitment to high quality, with the
aim of providing the best quality food to the people of Bangladesh.

4.2 HOW HUMAN RESOURCE PLANNING WORKS AT NESTLE

At Nestle, they recognize that their employees are the key to their success and nothing can be
achieved without their engagement. The implementation of the policy of Nestle is inspired by
sound judgement, compliance with local market laws and common sense, taking into account the
specific context. they respect the spirit under all circumstances and could be summarized in one
sentence: At Nestle they put people at the center of everything they do. Line managers have the
prime responsibility for building and sustaining an environment where people have a sense of
personal commitment to their work and give their best to ensure their Company’s success. They
care for and develop the leaders of tomorrow. Line managers decide on all people matters under
their influence, within the boundaries set by the policies and principles, acting as the final decision
makers.

The Human Resources (HR) structure enables and empowers them in establishing business needs
and their corresponding people requirements. Therefore, the mission of HR managers and their
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teams is to provide professional guidance to line managers aiming to deliver superior business
results by optimizing the performance of their people, while ensuring exemplary working
conditions. With a ‘Nestle in the Market’ approach, HR has adopted a streamlined approach to
ensuring functional leadership and the highest level of focus, clarity, and efficiency. their structure
is based on three dedicated areas which provide specialized services (Centers of Expertise), deploy
HR strategies within a specific business (Business Partners) and perform transactional activities
(Employee Services). The long-term success of the Company depends on its capacity to attract,
retain and develop employees able to ensure ongoing and sustainable growth. This is a primary
responsibility of all managers.

The Nestle policy is to hire employees with personal attitudes and professional skills enabling
them to develop a long-term relationship with the Company. Therefore, special attention will be
paid to ensure there is a strong alignment between a candidate’s values and the Nestle culture.
Only relevant skills and experience and adherence to the Nestle principles will be considered in
employing a person. No consideration will be given to a candidate’s origin, nationality, religion,
race, gender, disability, sexual orientation or age. Whilst adequate recruitment tools may improve
the hiring process, the decision to hire a candidate remains in the hands of the responsible manager,
supported by the HR team. They are committed to provide their employees all over the world with
good working conditions, a safe and healthy work environment, and flexible employment
possibilities that support a better balance of private and professional life consistent with our
ambition as a leading Nutrition, Health and Wellness Company. As such, we provide flexible
working conditions whenever possible and encourage our employees to have outside interests
especially community involvement. Those with line management responsibilities are required to
take personal ownership of safety and health within their area of responsibility and are encouraged
to develop their capability in this area.

Nestles commitment however goes beyond its own employees. They care about all people working
inside or outside their premises under contractual obligations with service providers and they insist
that they also take steps so that adequate working conditions are made available to them. They
believe that it is essential to build a relationship based on trust and respect of employees at all
levels. They do not tolerate any form of harassment or discrimination. Therefore, managers are

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committed to build and sustain, with their teams, an environment of mutual trust. HR ensures that
a respectful dialogue is present and the voice of the employees is heard.

Nestle aims to increase the business, list of customers, profits and sales but, at the same time, to
improve the Standard of living everywhere it is active and the quality of life for everyone. Nestle
is also convinced that nestle employees is the strength of the Company and it is impossible to
achieved without their energy and their commitment, which makes people its most important asset.
Involvement of people and also showing their interest at all levels starts with the basic and
appropriate information on the Company’s activities and also on the specific aspects of their work.
Through shared their views, ideas and communication and focused vision, everyone is invited to
share and contribute their opinions and views to improvements enhancing Company personal
development and results.

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4.3 DATA FINDINGS & INTERPRETATIONS

In order to understand if Nestles Human Resource Planning is helping the company or not, we can
see these following diagrams.

1. Daily assigned job activities are satisfactory enough to complete:

75% of employees agreed that the daily assigned job activities towards them are satisfactory
enough to complete whereas 20% of them disagree with it because the timeline of completing
works are not sufficient enough and they need to work for additional hours depending upon the
pressure of work. Therefore, only 5% of employees remain neutral with this statement.

2. Flexibility of Team spirit exists within the work environment:

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20% of employees strongly agreed that Nestlé provides such a work where they feel flexible while
working with their team. Therefore, percentage of remain agreed was high in amount because they
find their team members very co-operative. 5% of employees remain neutral with flexibility of
team spirit.

3. Relationship with supervisor is pleasant enough:

Among the respondents the ratio of strongly agree and only agree remain same which is 45%
whereas percentage of being neutral and disagree is also same.

4. Compliance for equal opportunity is satisfactory:

According to the employees, Nestlé provides a satisfied equal opportunity. 20% employees
strongly agreed with this as well as 60% of them (a quite high amount) agreed with this.

5. Compensation and benefits matches with job duties and responsibilities:

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The percentage of being neutral was high, which is 40% whereas 25% of employees disagreed.
According to the employees, the compensation structure and benefit system of Nestle Bangladesh
Ltd. does not wealth enough compare to the duties and responsibilities they perform. Only 35% of
employees is satisfied with this fact.

6. Appropriate recognition for contribution is compensated:

45% employee agreed that while they make any contribution they are recognized with appreciation
or compensation where as 15% of them disagreed with it and 40% remain neutral.

7. Overall job security is satisfactory:

Though 15% of employees strongly agreed that their overall job security is satisfactory, 65% of
them only agreed. According to them, Nestlé Bangladesh Ltd. provides them a high level of job
security compares to other organization. For instance, among the respondents most of them are
working in Nestlé for a long time considering the option job security as a benefit. On the other
hand, 20% remain neutral. One of the reasons of being neutral can be employee switches to other
company for better opportunity as well as benefits.

8. Fairness exists in case of punishment and disciplinary act:

56% of employees agreed with the fact that in case of punishment and disciplinary act fairness
exists, whereas 11% disagreed. On the other hand, 5% of employees strongly agreed though 28%
remain neutral.

9. Measures taken for punishment and disciplinary act are improving the environment of the
organization:
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50% of employees agreed that measures taken for punishment and disciplinary act are helping to
improve the environment of the organization and 45% remain neutral with this opinion. The
percentage of being disagreed is quite low only 5%.

10. Endorsement of the company as a place to work:

Employees of Nestlé Bangladesh Ltd. do agree that considering overall situation, Nestlé is a place
of work about which they can suggest prospective candidates to choose this platform as a
satisfactory place of work. As a result, percentage of strongly agree and remain agree is quite high
in total 95% whereas only 5% thinks that they are neutral which is quite low.

4.4 ANALYSIS ON NESTLE

By seeing all the information’s from our previous data, we can say that in Nestle actively they
actively do human resource planning in their company and follow the prerequisites which are
necessary to lead a company to reduce its cost.

• Nestle has proper linkage between HR plan and organizational plan.

• nestle provides top management support which is essential.
• Proper balance should be kept between the qualitative and quantitative approaches to HRP
and Nestle tries to follow it.
• Involvement of operating managers is necessary.
• Proper alignment between short-term HR plans and long-term HR plans should be there.
• HR plan should have in-built flexibility in order to adopt environmental uncertainties.
• Time period of HR plan should be appropriate to needs and circumstances of the
organization.

COST CONTRIBUTION ANALYSIS

Cost-contribution analysis of human resource is vital element in HRP with a view to planning for
more effective human resource system. The human resource components are necessary to
maximize employee contribution to the job and the organization, and minimize the cost, should be
determined in advance with the help of human resource accounting techniques. The optimum

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human resource system should be planned and determined as the human resources system is the
control system in the organization because it emphasizes the human contribution which critically
influences the organizational effectiveness. Planning the human resource system includes
determining the type of human resource components like creative and innovative skills and
abilities, dynamism, leadership qualities, commitment, identification with the organization, etc.,
considering the measures to acquire those human resources through recruitment, training and
development and adjusting the components. Similarly, cost of human resource should be
streamlined and it should be taken as investment on human resources and not as mere cost. These
items include remuneration cost (Pay, allowances, fringe benefits, other indirect costs), recruitment
cost (cost of job design, advertising cost, cost for conducting tests, interview, reference checks,
medical examination and induction), training costs, etc. Human Resource Accounting (HRA)
envisages capitalization of all expenses like cost of recruitment, training etc. One of the systems
of HRA i.e., replacement cost of human asset is an important tool for the formulation of manpower
budget and plan for human resources. In Nestle we have seen so far that they try to apply these
criteria’s in their company so they can reduce cost through the human resource planning.

4.5 ABOUT HSBC

HSBC was born from one simple idea – a local bank serving international needs. In March 1865,
HSBC opened its doors for business in Hong Kong, and today we serve around 46 million
customers in 71 countries and territories.

The experiences of the past 150 years have formed the character of HSBC. A glance at our history
explains why we believe in capital strength, in strict cost control and in building long-term
relationships with customers. HSBC has weathered change in all forms – revolutions, economic
crises, new technologies – and adapted to survive. The resulting corporate character enables HSBC
to meet the challenges of the 21st century. As part of the HSBC Group, one of the world’s largest
banking and financial services organizations, HSBC Private Bank seeks to be the leading
international private bank for business owners and their families. It provides clients with wealth,
business and family succession solutions in the largest and fastest growing markets around the

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world. HSBC Private Bank is the marketing name for the private banking business conducted by
the principal private banking subsidiaries of the HSBC Group.

Headquartered in London, HSBC is one of the largest banking and financial services organizations
in the world. HSBC is known as the world’s local bank. It also has reached to the Bangladeshi
market not only to boost up the banking system of onshore but also offshore banking. To compete
the global challenge HSBC has developed a skilled and efficient workforce.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares
in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories.
The shares are traded on the New York Stock Exchange in the form of American Depositary
Receipts. With assets totaling US$2.691 trillion, HSBC is one of the world’s largest banking and
financial services organizations. HSBC is rated one of the top 20 safest banks in the world by
Global Finance. Banks were selected based on an evaluation of long-term credit ratings and total
assets of the 500 largest banks worldwide. HSBC has a unique and longstanding presence in
international and emerging markets

HOW HUMAN RESOURCE PLANNING WORKS AT HSBC

HSBC HR team is renowned for effective HR planning strategies. It has implemented judgmental,
manual and technological approach to HR planning leading its position ahead of its competitors
ensuring right people at right place in right time with competitive remuneration.

To know the future demand of human resources, the HR division of HSBC usually provides all
the other divisions and branches with a general form at the beginning of the year. From the
information collected from these forms, the HR division gets an estimate of the human resource
requirement for the year. No long term human resource forecasting is done in HSBC. The
recruitment goals of HSBC are to attract and retain highly qualified human resources who will
perform best in their respective areas. The bank not only tries to attract well-qualified candidates
but also tries to identify and recruit people who are really interested to work in the bank for an
acceptable period of time.

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In recent time HR department has implemented a software iCATS to record employee inputs and
match with the standards. The software generates productivity reports and share with the HR
team. This report helps HR team to come up with employee productivity and at the same time
employee demand and surplus in any department are also tracked by measuring daily loads and
completion volume. The Service Tracker Software also helps the HR team to come up with
records of daily incompletion, in progress and completion volume of any department. The error
rates are also recorded by this software.

The recruitment philosophy of HSBC is as follows:

• HSBC usually promotes from within the organizations, but when the need arises,
the bank also hires from outside for vacancies at all levels.
• HSBC always emphasizes on hiring for a long period of time. The bank tries to
attract and select those candidates who will move through the organizational
hierarchy to the senior level positions in the future.
• HSBC has developed a corporate culture where employees are not treated as
mere employees. They are treated as associates of the bank. Together, they form
a family and all associates are the members of the family.

TYPES OF RECRUITMENT
HSBC practices two types of recruitment
✓ Yearly recruitment: this is done each year, according to the HR plan
✓ Need-based recruitments: this is done when there is a sudden vacancy

RECRUITMENT SOURCES AND METHODS:

HSBC usually promotes from within the organization. But it also recruits from external sources.
The external sources are:
• Different universities
• Competitors and other organizations
Campus recruiting will be handled by the HR Division and the overall planning for this will be
done based on the Annual Manpower Plan. However, the respective business
department/function requiring the profiles should have the responsibility and mandate to short-
list the campus-based candidates. The skill base generally recruited through this route will be

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entry level positions. Therefore, the plan for campus recruitment will have to tie up with the
placement season of various universities that are targeted for recruitment. The HR Division needs
to identify a set of campuses based on the courses conducted there, any past experience of
candidates from these campuses and the emerging requirements of the bank.

COMPETITORS AND OTHER ORGANIZATIONS

HSBC also applies some strategic HR methods for selecting the most logical and efficient
candidates. In the banking sector employees are not in a huge number in a firm. So, HSBC seeks
for best and suitable employees from banking industry or from relevant industries. In this case
HR department mostly focuses on Cost-benefit approach, expertise of the employee and back
ground check.

HIRING INTERNAL EMPLOYEES

HSBC encourages both vertical and horizontal move for its employees and hence, HSBC
encourages internal employees to apply for suitable position across the organization. It is the
responsibility of the candidate to apply for the right position. However, the employees who are on
probation period and those who have joined in new position are not eligible to apply for six months.
Selected candidates are required to join the new job/position after clearance from releasing
supervisor. The placement of employees to the new position should be within a month based on
understanding between releasing and receiving supervisors.

Employee number HSBC

Marketing

Finance

HRM

Accounts

Page | 33
Fig: Employee Ratio in Departments

The company always looks for the employees who are cost efficient on completing their tasks.
They prefer staffs that can control the expenditure of operations to achieve the target.

EFFECTIVE RESOURCING STRATEGY

Human Resources are responsible for implementing HSBC’s people strategy. It facilitates talent
management, succession planning and employee mobility while defining and overseeing
frameworks that support employee performance management, reward, learning and development,
resourcing and engagement. HSBCs effective resourcing strategy ensures minimal cost
maintenance and optimal results.

EFFECTIVE LEARNING & DEVELOPMENT

HSBC recognizes that the talent and diversity of people is the foundation of success, so they are
committed to helping develop personal and professional skills in order to bring out strengths.

Managers will help to identify potential opportunities and the capabilities will need to be
effective in employee’s role. As part of the HSBC performance review process, they will work
with employee to set clear career development goals and provide feedback and support to assist
the staff in achieving them. At the same time, they are encouraged to take responsibility for
driving own personal development.

From the HSBC Business School, Employees are able to access a comprehensive set of tools and
learning materials based on specific role and business area, as well as courses that help develop
communication, leadership and presentation skills. Employees are expected to complete some
learning activities based on local regulatory requirements or the nature of your role, but the
employees can also choose courses that are linked to their own interests or support your personal
development.

Employees also have access to a mixture of formal and informal development opportunities,
including on-the-job coaching and mentoring in addition to instructor-led workshops and e-
learning. HSBCs effective learning and development measures are famous to build efficient
employees and thus ensuring quality work reducing the probability of reputational damage &
penalty costs.

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 COMPETITIVE COMPENSATION PACKAGES
HSBC offers a comprehensive, market-competitive pay and benefits package to support
employees' professional and personal needs. This may vary according to role and location. HSBC’s
approach to remuneration consists of four main elements:

• Fixed pay
• Annual leave
• A range of benefits, which may cover areas such as work-life balance, insurance and
savings, health and personal development
• Employee share plans and discretionary pay awards based on performance
HSBC ensure balance compensation package reducing employee turnover and job satisfaction. It
helps to maintain higher employee retention and minimize cost of going for employee hiring.

PAY FOR PERFORMANCE

HSBC believes that the way people achieve their goals is essential to the long-term sustainability
of our business. As a result, annual performance reviews also take into account employees'
adherence to HSBC's values

HSBC’s approach to remuneration, including any discretionary incentive or performance-related

awards, is designed to reward success appropriately and to ensure that what they pay employees
is aligned with their business strategy. To achieve this, they assess individual performance
against our annual and long-term financial and non-financial objectives. Performance increases
revenue and employee continues to get pay.

REDUCE TURNOVER
As part of HSBC's commitment to an open, supportive an inclusive work environment they
recognize that their employees have different personal circumstances and want a suitable work-
life balance. They support staffs to adopt flexible and alternative ways of working where
possible, including working from home and different hours as a process flexible working reduce
turnover. HSBCs employee turnover costs are low relative to competitors.

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 EMPLOYEE GRIEVANCE POLICY
HSBC believe that employee service is an important imperative for sustained business growth
and they want to ensure that employees receive exemplary service across different touch points
of the Bank. Prompt and efficient service is essential to retaining existing relationships and
employer satisfaction is critical to the Bank.

Employee complaints constitute an important voice of customer, and this policy details complaint
handling through a structured grievance redressal framework. Complaint redressal is supported by
a review mechanism, to minimize the recurrence of similar issues in future. The Bank’s Grievance
Redressal policy follows the following principles:

1. Employees are treated fairly at all times

2. Complaints raised by employees are dealt with courtesy and in a timely manner

3. Employees are informed of avenues to escalate their complaints within the organization,
and their rights if they are not satisfied with the resolution of their complaints

4. Complaints are treated efficiently and fairly

5. The Bank employees work in good faith and without prejudice, towards the interests of the
customers

Research suggests that HSBCs employee performance is higher than the other competitors as they
conduct the banking operations with lower amount of staffs. Effective Grievance Policy helps to
retain employees and increase satisfaction reducing cost and ensuring higher productivity.

IMPLEMENTING TECHNOLOGY
HSBC uses software that standardizes the work volume with the time and every employee is
instructed to give inputs at different phases of time. The software calculates the inputs against the
standards and generates reports automatically at day ends. The reports are then shared to the HR
team. HR Team evaluates the reports and finds out the productivity per team, staff shortage or
surplus and takes appropriate action. The use of technology reduces costs & ensures appropriate
real time productivity and personnel hiring need.

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 OUTSOURCING PRACTICES
Work outsourcing it a common practice for HSBC. It outsources simple but time consuming tasks
like data entry, document handling, document safekeeping, dispatch. It also maintains Logistics
Supply with Logistics Supplier Company. The Recruitment process is also conducted partly by
outsourced organizations. Using outsourced employees reduces costs like bearing gratuity &
benefit plans.

GOING FOR CONTRACTUAL EMPLOYEES:

There are many contractual employees work for HSBC. This approach is the most convenient way
for HSBC to get the expected performance with minimal costs. Contractual employees are
sometimes offered fixed time payment and they are not entertained with gratuity and profit share
benefits. Legal team, Operations, Global Trade departments contains many contractual employees.

4.6 DATA FINDINGS & INTERPRETATIONS ON HSBC

From our analysis on HSBCs HR planning & cost structure, we have identified some loopholes
where costs are illogically higher:

• Hiring of employees from external source is very unbiased and no room for nepotism but
sometimes recruitment of internal employees are biased and those employees who are close
to the supervisor get advantage of their relationship in internal recruitment process. These
internal employees are most of the cases create reputational damage and cost bearings.

• Employees of the bank care about its customers much. They always try to fulfill customers
request if possible. Sometimes Relationship Managers claim excessive TA-DA &
conveyance charge from HR in cases of dealing with clients.

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 • Employees of the bank get much performance bonus in time. They get bonus on loan
sanctioning, collecting deposit, creating account, providing credit cards and so on. This
policy helps the bank to perform its maximum and increase banks profitability. But
sometimes the proportion of this bonus and benefits illogically higher for employees in
higher levels.

• The bank provides very attractive salary with different essential allowance payment that
attracts new recruits as well as motivates existing employees to be in touch with HSBC
which in some cases are not effective for the organization. The existing bottom level
employees will be more satisfied and inspired to work more if they are offered such
remuneration.

• Banks financial performance is outstanding over these years. HRM policies of the bank
exert employees perform to their full potential and helps organization to perform maximum
of its ability but there is need for advanced technological implementation in tracking
performance records especially in HSBC Bangladesh.

4.7 ANALYSIS ON HSBC

After discussing on the loopholes with HSBCs HR Associates, we have identified the below cost
maintaining procedures are taken by HR team to address the issues as per annual HR Planning
Strategy:

i. The HR team has focused on transparency in hiring from internal source. The
recruitment manager and the related teams are required to submit reasons on selecting
particular candidate along with cost benefit analysis.

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ii. For Relationship Managers and Front Liners all the costs concerning client onboard
need to be approved by Line Managers and submitted with provided Cost Structure
Report in Payments. The requestor also needs to submit quarterly accumulated bill
report to HR Compliance ensuring the bills are incurred within Client Sourcing Costing
limit.
iii. In case of performance bonus distribution, HR team has implemented ratio linked
bonus offerings where the performance rating ratio will be linked with base bonus
disbursement. The HR management is also focusing on cost benefit analysis in
distributing bonus in higher levels.
iv. The MTO hiring is a risky approach identified by the management for the higher cost
and lower productivity as most of the MTOs are fresher having no banking background.
So, HR team is planning to nurture bottom level associates for the future positions by
effective training and development schemes.
v. Some newer software are being implemented in HSBC Bangladesh Offices as the local
HR team is not that much efficient with dealing with big data analysis and cost analysis
special trainings are being offered to the HR team to be aligned with global and to be
effective in implementing unnecessary cost reducing measures.
vi. HSBC outsources simple but time-consuming tasks like data entry, document handling,
document safekeeping, dispatch. It also maintains Logistics Supply with Logistics
Supplier Company. The Recruitment process is also conducted partly by outsourced
organizations. Using outsourced employees reduces costs like bearing gratuity &
benefit plans.

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 vii. There are many contractual employees work for HSBC. This approach is the most
convenient way for HSBC to get the expected performance with minimal costs.
Contractual employees are sometimes offered fixed time payment and they are not
entertained with gratuity and profit share benefits. Legal team, Operations, Global
Trade departments contains many contractual employees.

COST CONTRIBUTION ANALYSIS

HSBC Bangladesh has shut down 8 branches in 2017 and now working with only 7 branches in
Bangladesh, after a country wide Cost Contribution Analysis. The bank is specially focusing on
Corporate, Industrial Banking as its profit share and market demand for Retain and Wholesale
banking in Bangladesh is not lucrative. After the analysis report the HSBC management decided
to terminate 120 employees in 2018 especially in Retail Banking & Wholesale. The job cut was
there but the HR team too measure to compensate with Golden Handshake Policies. The similar
cost contribution analysis is common every year in HSBC which are regular news in Local &
Global newspapers.

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5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY

Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource capacity
of the organization can be utilized to fulfill these requirements. Successfully developing Human
resources planning and effectively implanting the plan allows organizations to achieve more
profitability and wealth maximization as HRP helps to reduces the cost of organization effective
by many ways. We can say it does that significantly by increasing productivity and efficiency
which have reflection on the financial statements of the organization hence, it boosts the
profitability of the organization.

There are four key steps of the HRP process. They include analyzing present human resources
supply, forecasting human resources demand, balancing projected HR demand with supply, and
supporting organizational goals.

It is be summarized by saying that HRP process which helps the organization in many ways. Let’s
see some of the significant ones below:

HRP helps management of the organization in meeting the future demand of human resource in
the organization with the supply of the appropriate people in appropriate numbers at the
appropriate time and place.
Only after proper analysis of the HR planning requirements allows management to do the right
process of recruitment and selection be initiated by the management.
HRP is essential in successfully achieving the strategies and objectives of organization. In fact,
with the element of strategies and long-term objectives of the organization being widely associated
with human resource planning these days, HR Planning has now become Strategic HR Planning.
HRP helps Organizations in growth phase where organization may face the challenge of meeting
the need for critical set of skills, competencies and talent to meet their strategic objectives so they
can stand well-prepared to meet the HR needs.
Help the management to anticipating the workforce requirements rather than getting surprised by
the change of events.

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5.2 RECOMMENDATION

Some of the suggestions for making HR planning effective are as given below for both of the
organization we have studied for making this report to see how human resources planning:
▪ Human resource planning must be balanced with organizational plans. It must be based on
the organizational objectives and plans. This requires development of good
communication channels between organization planners and the human resource planners.
▪ Period of the planning should be appropriate to the needs and circumstances of the
enterprise in question. The size and structure of the enterprise as well as the anticipated
changes must be taken into consideration.
▪ To be effective in the long run, manpower planning must have the full support of the top
management. The support from top management is essential to ensure the necessary
resources, cooperation and support for the success of the planning.
▪ Human resource planning is not a function of manpower planners only. To be effective, it
requires active participation and coordinated efforts on the part of operating executives.
Such participation will help to improve understanding of the process and thereby reduce
resistance.
▪ To facilitate human resource planning, an adequate database must be developed for human
resources.
▪ The human resource experts should give equal importance to both quantitative and
qualitative aspects of manpower. Instead of matching existing people with existing job,
stress should be laid on filling future vacancies with right people. Promotion should also
be considered carefully. Career planning and development, skill levels, morale, etc. should
be given due importance by the planners.
▪ Take necessary and appropriate steps to decrease the compensation difference among
employee levels and that shall be integrated with Human resources planning.
▪ Linking individual role with strategic planning
▪ Provide idea to individual how their roles are linked to organizations strategic planning
hence management shall do that by integrating human resources planning with strategic
planning

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 CONCLUSION
The HR planning is developed to identification and ensure the staffs, particular job-related skills
and talents, training and development, retention of staff, recruitments, selection processes and etc.
The strategic plan gives the future needs and trend of the staff to the particular departments,
required talents, recruitments, training and development needs of staff. By successful integration
of Human Resources Planning with the company’s ABP (Annual Business Planning) organization
are able to increase their productivity, efficiency and make business grow with significant
profitability and wealth maximization.

Therefore, the practice of HR functions which depends on HR planning and developments depends
on the strategic plan which established by the top management of the organization. HR planning
uses the inputs as information from the strategic plans. So, HR planning influences the existence
of mission and goals of the organizational strategic planning process. The organizational quality
and level of standard about goods and services is depending on the quality work of staff of the
organization. Therefore, the standard of strategic decisions will reflect through the profitability
and growth of the HR planning taken by the organization

Human resources planning involves planning for the right kind of human resources in terms of the
quantity, quality, competence, experience etc. It is very important that human resources planning
system is effective and takes care of the human resources need for present as well as future.

So, these organizations may enjoy the leverage of having and implanting a well-designed
human resource planning, which is increasing profitability by decreasing the expenses and
controlling the cost driver of the organization.

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