Page 34 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 2: Human Resource Planning

Absenteeism reduces the number of employees available for work. If absenteeism Notes
rate is 4 percent, only 96 out of 100 people are available for work.
4. Productivity level: Any change in productivity would affect the number of persons
required per unit of output. Increase in productivity will reduce the requirement
and decrease in it would have the opposite effect.

For example: The average sales per person in a year amounts to 5,00,000. Reviews of
changes in productivity levels reveal that sales per person have been increasing at
the rate of 10% per year. If the next year's projected sales are 5,00,000, there would
be no need for 100 sales persons ( 5,00,00,000 divided by 5,00,000), but rather for
only 91 sales persons since we expect an increase of 5,50,000 in productivity per
person.
5. Movement among Jobs: Some jobs are sources of personnel for other jobs. For example,
secretaries may be obtained by promotion of typists & branch managers are obtained
from a pool of section managers.

For example: We anticipate a need for five new branch managers seven years from
now, more than five potential branch managers should have entered the company
this year, assuming that seven years are the average development time. Obviously,
some will quit before the seven years are up and others may not qualify for
promotion.
External Supply
External sources are important for specific reason:
1. New blood and new experience will be available.

2. Organization needs to replenish lost personnel.
3. Organization growth and diversification create the needs to use external sources to
obtain additional number and type of employees.

Sources of external supply vary from industry to industry, organization to organization.
Some companies find good sources from colleges and university, consultants, competitors
or unsolicited application.

2.3.3 Factors Influencing Human Resource Management

There are many factors that would affect human resource management. However, the main four
are considered to be:
1. Political Climate: The political climate can have a great affect on any business and
subsequent business departments such as human resource management. If the government
decides on spending cuts or increasing taxes on businesses then this will dramatically
affect the running of the business. Department budgets may have to be trimmed or the
department may even have to be completely scrapped.
2. Economic Climate: The economic climate can be closely associated with the political climate.
However, it also includes how the banks are coping and if they are willing to lend to
businesses. Again if the banks are cautious and so do not lend and in fact try and get their
money back quicker, it can spell disaster for a business. This in turn, will mean big
changes for how human resources in a company would be run.

3. Company Strategies: Companies will also have plans and strategies on how best to move
forward. These will of course, largely be determined by the two previous factors mentioned.

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