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HRM360 Assignment
HRM360 Assignment
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Executive Summary
This Report is basically divided into two parts. In the first part, we built a design workforce
planning Blue Ocean Technologies and describe its overall demand and supply strategy. On the
other hand, in the second part, we are focusing on critically analyses at least two main power
planning theories.
Manpower Planning:
Based on the company structure, here is the proposed manpower planning for Blue Ocean
Technologies:
CEO: 1
COO: 1
CTO: 1
CFO: 1
HR Director: 2
Marketing Director: 3
Sales Director: 7
Project Managers: 5
Software Developers: 20
Hardware Engineers: 10
Technical Support: 5
Total manpower: 56
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Forecasting-Graph:
To ensure that Blue Ocean Technologies has the right talent in place to meet its business goals,
the company will use both demand and supply methods for their workforce planning.
HR Demand Assessment: Human Resource Demand Forecasting is the process of estimating the
future human resource requirement in right quality and right number. Potential human resource
requirement is to be estimated keeping in view the organization’s plans over a given period of
time. There are 2 forecasting methods of demand assessment.
Trend Analysis: By using trend analysis Blue Ocean examine and predict movements of
an HR demand based on current and historical data. They use trend analysis to
forecasting to hire people, reduce their staffing or adjust and how they divide
responsibilities.
Ratio-trend Analysis: This is the quickest HR forecasting technique. The technique
involves studying past ratios, say, between the number of workers and sales in an
organization and forecasting future ratios, making some allowance or changes in the
organization or its methods.
Delphi Method: A panel of experts makes their own judgments to estimate the future
man power demand in the organization. By using this method Blue Ocean Technologies
evaluated employees demand based on the feedback of their experts.
Nominal Group technique method: According this method a panel of experts (HR
Managers, Line Managers, Departmental Manager) meets face to face, discuss, arguing
and makes decision on various kinds of critical tropics, while they consider organization
goal issues and other surroundings. Blue Ocean Technologies also uses this method to
evaluate their employee’s demand.
HR Supply Assessment: The human resource supply forecasting process is basically about
obtaining human capital, which comes from either an external or internal source within the
organization, or a combination of those. We are ascertaining HR supply in 2 ways – 1. Internal
Supply 2. External Supply.
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Internal Supply: Existing member of the organizational workforce, who can be retained,
promoted transfer and so on to fill anticipated future HR requirements.
External Supply: Hiring potential employees who currently undergoing training or
outsider’s efficient employees
Most of the organization gives preference to internal talent because selecting individuals for
training and development enables the organization to reinforce employee loyalty and
performance. Now, we discuss some internal supply for assisting HR supply:
1. Markov Analysis: Markov analysis is one of the important methods of analyzing internal
supply of manpower. It represents the pattern of employee movement through various
jobs in an organization.
2. Skills and management inventories: skills and management inventories contain
information about the capabilities of the employees. Basically, it contains information for
each individual in personal information, education, training, and skill competencies, work
history, career information, or hobbies and interests.
3. Movement analysis: The technique used to analyze the chain or ripple effect that
promotion or job losses have on the movements of other employees in an organization is
known as movement analysis. It can be performed for the organization as a whole, but
analysts prefer to do it in separate departments or divisions.
In terms of human resources, Net HR refers to the area where demand and supply differ from one
another.
During the computation of Net HR, some approximate data we used for making the calculation.
Approximate data,
Current Workforce 56
Annual loss rate 7%
Stuff reduction rate 15%
External Supply = Current Workforce size*(Annual loss rate % + Changes per year %)
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= 56*(-0.07-0.15)
= -12.32
HR Demand > Internal Supply
Here, the external supply is negative. Negative external supply indicates the deficit of the Blue
Ocean Technologies (shortage of employees). There can be deficit when an organization is
unable to meet the forecasted HR demand requirements solely through the use of the supply of
employees available within the organization to accommodate the forecasted demand
requirements. From the calculation, we can say that Blue Ocean Technologies has shortage of
12.32 (Approximate 13) employees.
Demand: In terms of HR demand, As Blue Ocean Technologies is a small company they can
follow a qualitative method, nominal group technique method for assisting HR Demand,
Nominal technique indicates some internal and external changes. Face-to-face discussions,
debates, and decisions on a variety of important business issues, such as staff retention,
technology adoption, etc., can be conducted by a panel of experts.
Supply: For the assisting HR supply, Blue Ocean Technologies Can uses Markov Analysis.
Markov Analysis is one of the significant and modern methods of analyzing internal manpower
supply, indicating the pattern of employee movement through various jobs in an organization.
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2. Overtime: To keep operations running, they can be more flexible, relying on their
current employees to arrive early, stay late and to pick up extra shifts as needed. Because
of labor shortage, they influence existing employees to do more work and for this they
getting extra incentive, bonus and salary. Also that will encourage workers work more
effectively.
3. Take advantages of top technology: Since Blue Ocean Technologies is tech based
company. They have labor shortage, they can use more advanced technology in order to
reduce the pressure on their employees. The company can increase its productivity by
focusing on technology rather than hiring more employees. Furthermore, in addition to
reducing the amount of time employees spend on the task, technology allows employees
to complete the task more quickly and easily.
4. Hiring: They can hire part-time and full-time employees. Because the shortage of
employee in the company.
The System Theory is a widely used manpower planning theory in the field of human resources
management. This theory suggests that an organization is a system that is made up of various
interdependent components, and changes in one component can impact the entire system. Here is
a critical analysis of the System Theory:
Strengths:
Holistic Approach: The System Theory takes a holistic approach to manpower planning by
considering the interdependence of various components of an organization. This approach helps
organizations to identify the root cause of problems and develop effective solutions.
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Flexibility: The System Theory is flexible and can be applied to different organizational
structures and industries. This theory can be customized to fit an organization's specific needs
and can be used to design and implement effective human resources management strategies.
Limitations:
Complexity: The System Theory can be complex because it can be difficult to analyze the impact
of changes in one component on the entire system, making it challenging to develop effective
manpower planning strategies.
Here are a few examples of how the System Theory can be applied to manpower planning in real
life:
1. Identifying Future Workforce Needs: The System Theory emphasizes the importance
of forecasting future workforce needs. To apply this theory, HR professionals may use
data analysis and other tools to forecast the skills and competencies needed for the
organization to achieve its goals in the future. This analysis can be used to develop a
workforce plan that outlines the steps needed to recruit, train, and retain employees with
the required skills and competencies.
2. Evaluating the Impact of Changes: The System Theory recognizes that changes in one
subsystem can impact other subsystems in the organization. To apply this theory, HR
professionals may use data analysis and other tools to evaluate the impact of changes in
the organization, such as mergers, acquisitions, or changes in business strategy, on the
workforce
In conclusion, the System Theory has its strengths and limitations. While it can lead to a holistic
approach to manpower planning and continuous improvement, it can be complex and time-
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consuming to implement. As this theory is very popular we can find the use of The System
Theory in various organizations. One is mentioned below:
NASA: NASA has applied the System Theory to its workforce planning processes in order
to build a more diverse and inclusive workforce.
https://www.nasa.gov/centers/kennedy/about/inclusion-diversity.html
The Human Capital Theory is a widely used manpower planning theory in the field of human
resources management. This theory suggests that the investment in human capital, such as
education, training, and development, can result in a better and more productive workforce.
Strengths:
Competitive Advantage: By investing in human capital, organizations can create a competitive
advantage in the marketplace. When organizations have a highly skilled and trained workforce,
they can outperform their competitors, leading to increased market share and profitability.
Long-Term Benefits: The Human Capital Theory suggests that investments in human capital
have long-term benefits for organizations. When employees are trained and developed, they
become more committed to the organization, leading to lower employee turnover rates and
higher employee retention rates.
Limitations:
Limited Scope: The Human Capital Theory only considers the individual's investment in
education, training, and development
High Cost: The investment in human capital can be costly for organizations, especially for small
and medium-sized enterprises. Some organizations may not have the resources to invest in
employee training and development, leading to a less skilled and less productive workforce.
Lack of Measurability: Organizations may not be able to quantify the return on investment in
human capital, making it difficult to justify the cost of employee training and development.
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Here are a few examples of how the Human Capital Theory can be applied to manpower
planning:
In conclusion, the Human Capital Theory has its strengths and limitations. While it can lead to
improved workforce productivity and a competitive advantage, it can be costly for organizations
and may not take into account broader societal and economic factors. Therefore, it is essential to
evaluate the Human Capital Theory critically and apply it appropriately in the context of an
organization's specific needs and resource. As this theory is very popular we can find the use of
the Human Capital Theory in various organizations. Some are mentioned below:
IBM: IBM has a robust human capital strategy that includes workforce planning to ensure the
company has the necessary talent to achieve its business goals.
https://www.ibm.com/thought-leadership/institute-business-value/human-capital-mangement-
strategy)
Johnson & Johnson: Johnson & Johnson has a human capital strategy that includes workforce
planning to ensure the company has the necessary talent to achieve its business goals.
https://www.jnj.com/healthcare-impact/sustainability/environmental-social-governance/human-
capital-managemet
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