COURSE: Human Resource Management (HRM)

REPARED BY:

ID Group Member

MBA549/13 Amdemichael Moges

MPA002/13 Getnet Muhabaw
MBA546/13 Marta Gudeta

MBA564/13 Mesfin Matiyos

Submission date: June/2021

Submit to: Dr. Bereket Solomon (PhD)

 1 evaluating the relation between strategic human resources management and

organizational performance
 Strategic planning is a step-by-step process of determining how to  pursue the
organization's long-term goals with the resources expected to be available. It is a
systematic approach of analyzing the opportunities and threats in the environment to
enhance the efficiency and organizational productivity. It is the name given to the
sense making activity which includes the function of goal setting and strategy
formulation.
On the other hand, Human resource planning is the estimation of future demand for
and supply of human resources for the accomplishment of stated organizational goals.
HR planning consists all the activities of human resource management such as
forecasting of HR, collecting information, policy making, recruitment, training and
development, motivation and development of human resource in the organization.
These activities  help prepare and HR plan whereby right number and kind of people
are being forecasted.

These terms establish a close relationship as one cannot be separated from another.
They are correlated with each other because HR planning is an integral part of the
overall corporate plan. Hence, the relationship between HR planning and strategic
planning can be depicted under the following aspects:

1. Follower relationship of HR plan

This relationship depicts that an HR plan is an integral part of the overall corporate
plan of the organization. HR plan is based upon the overall objectives and strategies of
the company. It is prepared by following the guidelines by the overall corporate plan of
the organization. Hence, it is tailored to meet the needs of the overall mission, vision
and objective of the company. Moreover, this relationship explains that HR plan is
derived from the overall corporate plan of the organization.

2. Partner relationship of HR plan

When the HR plan and strategic plan are formulated simultaneously, it is supposed that they
have partner relationship. Under it, it is assumed that HR and HR manager are considered as a
valuable resource in the organization. And it ensures that the employees are fully participated in
strategy implementation. Moreover, implications of HR are considered in the formulation stage
of strategic plan. The primary purpose of this relationship is to link HR activities with strategic
plan in order to achieve organizational goals. It also ensures that Human Resource
Management (HRM) activities are considered before formulating the corporate plan.

 Most people agree that the following duties normally fall under HRM. Each of these
aspects has its own part within the overall strategic plan of the organization:
 1. Staffing. Staffing includes the development of a strategic plan to determine how many
people you might need to hire. Based on the strategic plan, HRM then performs the hiring
process to recruit and select the right people for the right jobs. We discuss staffing in
greater detail in, and

2.Basic workplace policies. Development of policies to help reach the strategic plan’s goals is
the job of HRM. After the policies have been developed, communication of these policies on
safety, security, scheduling, vacation times, and flextime schedules should be

3 Compensation and benefits. In addition to paychecks, 401(k) plans, health benefits, and
other perks are usually the responsibility of an HR manager. Compensation and benefits are
discussed in Retention. Assessment of employees and strategizing on how to retain the best
employees is a task that HR managers oversee, but other managers in the organization will
also provide input. cover different types of retention strategies, from training to assessment.

4 Training and development. Helping new employees develop skills needed for their jobs
and helping current employees grow their skills are also tasks for which the HRM
department is responsible. Determination of training needs and development and
implementation of training programs are important tasks in any organization. Training is
discussed in great detail in including succession planning. Succession planning includes
handling the departure of managers and making current employees ready to take on
managerial roles when a manager does leave.
5 Regulatory issues and worker safety. Keeping up to date on new regulations relating to
employment, health care, and other issues is generally a responsibility that falls on the
HRM department. While various laws are discussed throughout the book, unions and
safety and health laws in the workplace are covered in In smaller organizations
 HRM as a Strategic Component of the Business

Make it applicable. Often people spend an inordinate amount of time developing plans, but
the plans sit in a file somewhere and are never actually used. A good strategic plan should be
the guiding principles for the HRM function. It should be reviewed and changed as aspects of
the business change. Involvement of all members in the HR department (if it’s a larger
department) and communication among everyone within the department will make the plan
better.

Be a strategic partner. Alignment of corporate values in the HRM strategic plan should be a
major objective of the plan. In addition, the HRM strategic plan should be aligned with the
mission and objectives of the organization as a whole. For example, if the mission of the
organization is to promote social responsibility, then the HRM strategic plan should address
this in the hiring criteria.

Involve people. An HRM strategic plan cannot be written alone. The plan should involve
everyone in the organization. For example, as the plan develops, the HR manager should
 Understand how technology can be used. Organizations oftentimes do not have the money
or the inclination to research software and find budget-friendly options for implementation.
People are sometimes nervous about new technology. However, the best organizations are
those that embrace technology and find the right technology uses for their businesses. There
are thousands of HRM software options that can make the HRM processes faster, easier, and
more effective. Good strategic plans address this aspect.

Table 2.2 Lifecycle Stages and HRM Strategy

Labor /
Life Cycle Training and
Staffing Compensation Employee
Stage Development
Relations
Set basic
Define future skill
Meet or exceed labor employee-
Attract best technical requirements and
Introduction market rates to attract relations
and professional talent. begin establishing
needed talent. philosophy of
career ladders.
organization.
Recruit adequate Mold effective
Meet external market
numbers and mix of management team
but consider internal Maintain labor
qualifying workers. through
equity effects. peace, employee
Growth Plan management management
Establish formal motivation, and
succession. Manage development and
compensation morale.
rapid internal labor organizational
structures.
market movements. development.
Encourage sufficient
turnover to minimize Control labor
layoffs and provide new Maintain flexibility costs and
Control
Maturity openings. Encourage and skills of an maintain labor
compensation costs.
mobility as aging workforce. peace. Improve
reorganizations shift productivity.
jobs around.

Source: Seattle University Presentation, accessed July 11, 2011, http://fac-

staff.seattleu.edu/gprussia/web/mgt383/HR%20Planning1.ppt.

 Identify Strategic HR Issues

In this step, the HRM professionals will analyze the challenges addressed in the first step. For
example, the department may see that it is not strategically aligned with the company’s mission
and values and opt to make changes to its departmental mission and values as a result of this
information.

Many organizations and departments will use a strategic planning tool that identifies strengths,
weaknesses, opportunities, and threats (SWOT analysis) to determine some of the issues they are
facing. Once this analysis is performed for the business, HR can align itself with the needs of the
business by understanding the business strategy. for an example of how a company’s SWOT
analysis can be used to develop a SWOT analysis for the HR department.

Once the alignment of the company SWOT is completed, HR can develop its own SWOT
analysis to determine the gaps between HR’s strategic plan and the company’s strategic plan. For
example, if the HR manager finds that a department’s strength is its numerous training programs,
this is something the organization should continue doing. If a weakness is the organization’s lack
of consistent compensation throughout all job titles, then the opportunity to review and revise the
compensation policies presents itself. In other words, the company’s SWOT analysis provides a
basis to address some of the issues in the organization, but it can be whittled down to also
address issues within the department.

 2 Think of organization you have worked for where some work life balance practices
were available why do you think this origination elected to develop and introduce
work lie balance initiates?
 Facilitate a Work-Life Balance for Your Employees

Fostering a work-life balance for your employees requires a little creativity and discipline, but
the results are more often than not positive. Making this a priority can increase employee
satisfaction, productivity and company image. So, why not try some of the examples above and
reap the rewards yourself?

It’s key to productivity to have a happy workforce or you’ll burn out your most value resource.
So, create a work-life balance and have the right tools to make sure when they are on the job,
that work is more efficient. ProjectManager.com is a cloud-based project management software
that gives your team the tools to collaborate in real-time, so they can get the job done right and
be home for dinner. See how it can help by taking this free 30-day trial. 

 17 Ways Companies Help Employees Achieve Work-Life Balance

Work-life balance is not a new concept. It simply means carving out appropriate time for your
professional and personal life. But lately it’s become a trend, with small businesses and startups
using it to attract young talent, which has lead to defining exactly what it means for their
employees. Often times, it comes down to how a growing company can achieve maximum
productivity at a reasonable cost to their employees’ time and well-being.

1. Set Boundaries with Your Client“We have defined business hours; we have specific
people that help on holidays and weekends only; we encourage unlimited vacations and
no one stays on the clock past 6pm, ever. This has helped us stay productive during work
hours, set up client expectations and helped us retain more of our workforce.”
2. Restrict Employee Hours “We’re lucky to have extremely dedicated employees who believe
in our mission just as much as I do. As we’ve continued to grow, so have their roles and
responsibilities. Naturally, stress levels also began to rise, and productivity decreased. We knew
we needed to change how we worked in order to turn things around,”

3. Allow Flexibility for Overtime “We noticed we had a few employees who would work late,
which would burn out both the employees and the managers,” she said. “This was especially
happening during our busy season from October 15th – December 7th, when people would often
be here until 8 PM or 9 PM. This year we implemented a hard-close at 7 PM. This still gives
them plenty of opportunity to make sales and also earn overtime, but not to the point of burnout.”

4. Institute Flexibility for Working Parents“Having entered the workforce in the 1980s,” she
said, “I was in the first generation of women who could have it all with career and family. The
reality was that we had to work twice as hard in the workplace to earn our place traditionally
held by men. At the end of each work day we returned home for the second shift, working at
home until we dropped. It was this life experience that cemented my commitment to fostering
work-life balance for my team.”

5. Work Remotely“Everyone is encouraged to use instant messaging and project management

tools to make sure that communication is maintained when team members work remotely. We’ve
found that by allowing team members to adapt their hours and work locations, they appreciate
our flexibility and in turn produce even better work.”

6. Conduct Daily Stand Up Meetings“We measure their performance on impact and results and
not hours spent at their desk,” said Hearn. “We also use Slack on our mobiles, so we can respond
to urgent questions even if we’re not at our desks. We find this helps us to maintain high levels
of customer service, whilst still offering flexibility. We also allow our staff to work from
wherever they want, as long as they have an internet connection. In fact, one of our staff recently
worked for two days out of a hotel in India so that he could attend a wedding out there and still
deliver on an important deadline.”

7. Lead by Example “If your company has a flexible schedule,” she said, “the best thing you
can do to get your team to use it to improve their work-life balance is to use it yourself! I work
for an hour or so from Ahour) to work for 5-6 hours, before heading home ahead of traffic.”

8. Work Outside the Office “Our employees aren’t necessarily needed in our office all the
time,” he said, “so at times when they can work from elsewhere, we allow them to operate as
remote employees. Our employees love this freedom and constantly remark about how creative
they feel when they aren’t limited to working in the office. Since implementing this strategy, we
have noticed remarkable improvement in the overall work ethic and satisfaction of our team!”

9. Office Half Days. “This is something that we have been focusing on in our office. The way
we try to do it is, we ask for people to spend at least half of the day in the office and choose
where they would like to work from for the other part of the day. All we ask is that they need to
make sure that all their tasks are completed,” said Kroger.

10. Trust Employees“By trusting your employees and allowing them the space to provide value
and production on their time and terms as long as they are adhering to milestones and timelines,
you can begin to promote an active work-life balance. We’ve stopped booking so many meetings
and have allowed technology and processes to stimulate growth and in turn, a great culture,” said
Picanza. .

11. Encourage Vacation Time“As a quick growing company, it can be easy to burn out your
staff,” he said. “At our company, we enforce a mandatory paid time off equal to two weeks per
year. Even the most committed employee needs time away from their job, time to relax and time
to clear themselves away from the pressures of the job. We have found consistently that after
taking some time away from the job, employees return more motivated, more productive and
with a new level of commitment.”

12. Get Physical. “My top tip is that I try to find creative ways to multitask that incorporates
exercise, you’ll be amazed how much more energy and time you have! Instead of meeting up
with your local colleagues at a coffee shop, over a meal or chatting with them on the phone, meet
them for a walk so you can catch up while you are getting some exercise too. You’ll feel great
after, the time will fly & it will be a fun activity to share,” said Arnof-Fenn

13. Require Flexibility.“My team includes a VR producer, a VR technical director and visual
effects supervisors, voice actors and more. Our cinematic virtual reality experiences as well as
non-cinematic experiences are long-term and highly intense to make. Unlike your typical movie,
there’s a lot of coding and more,” she said.

14. Lose the Office. “As a 100% remote team, our employees have a lot of flexibility with
working hours,” he said. “This allows them to create a work-life balance which works for them.
Giving employees this flexibility means people can choose their own working hours around their
families, travels, or other interests. Working from home can often blur the work-life boundaries,
so we encourage employees to take all work apps off of their mobile phones and turn off laptops
and chat channels when not working.” 

15. Empower Empolyees“Museum Hack is a fully remote company,” he said. “We’ve

bootstrapped to $3 million in annual revenue — we don’t have an office anywhere. With a few
exceptions, team members are responsible for their own schedules. We find this flexibility, of
being able to run errands during the day or spend time with loved ones on a matching schedule,
is empowering.”

16. Bring Your Family to Work “We include families in our work, starting on Great Take Off
Day. All new associates begin on the same day each month and that day concludes with a
celebration family members are invited to. They see where their family member works, watch
their family member receive their Talent Card and meet their family member’s leader/team
members,” said Rath.
17. Don’t Fix What’s Not Broken “As simple as it sounds, we work very hard while we are at
work. You sometimes think that as a startup, people would be running around with nerf guns or
playing ping pong in the office, but it’s quite the contrary. We focus on creating windows of time
where people can perform un-interrupted work,” said Frinault.  

“For a good portion of the mornings, most of us have our noise cancelling headphones on and are
super focused on our work,” he added. “In the afternoon, things usually are more relaxed, and we
focus on group meetings and team-oriented activities.The benefit of that organization is that we
move super fast without having to do crazy hours or work on weekends.

 3 Imagine you are responsible for selecting operators to work in a call center
 The Vendor Selection Process Includes Six Key Steps

1. Define your business goals and requirements. Far too many companies fail to properly
identify their specific goals or reasons to use outsourced call center vendors. Therefore,
the attention paid to this first critical step often determines the success of the selection
process and, ultimately, the outsourcing partnership. There has to be stakeholder
consensus at your organization on why you’re outsourcing and what goals you are
looking to achieve.

2. Define your vendor management structure and process. It is essential to set

expectations for vendor management at your company. Who manages the day-to-day
performance of your vendor partners and how do you ensure results? What are your
training processes? What are your performance expectations and service objectives?

3. Research potential vendors. Start the search process only after you have clearly defined
your internal goals and have set expectations for your outsourcing objectives and vendor
management process. Without establishing the above first, it would be premature to
search for vendors. There are thousands of vendors waiting to hear from you—just
Google “call center vendors” and you’ll see. But do you want to canvass the industry
hoping the right match will come along? Or would you rather be prescriptive and
selective in your vendor search to ensure a perfect fit? You may want to tap external
experts for their knowledge base of vendors and to get the right guidance and
recommendations. Sending out a Request for Information (RFI) can help to narrow the
list even further, but only send it to a pre-selected list of qualified candidates.

4. Request for Proposal (RFP). The RFP is not always necessary and far too many
companies overkill the RFP process only to pick the lowest priced vendor or the wrong
vendor. We all know that RFPs are not full-proof. But if you are going to issue an RFP,
then pre-qualify the vendors.

5. Evaluation and due diligence. Whether or not you issue an RFP, your due diligence
must be robust and thorough. Create an internal scorecard listing your most important
criteria and score each vendor’s proposal against this. Validate each vendor’s process,
people and past performance. Interview current and past clients. Conduct a site visit to
get a better sense of the vendor’s culture, employee engagement, site-level operations,
 customer experience, performance management, staffing practices and other capabilities.
And only visit the site(s) that you plan to use.

6. Make your choice. Armed with detailed and objective information, along with a
firsthand view of your top vendors’ operations, you can make your final selection with
confidence that the outsourcer will provide value for your company.

 Some Qualities to Consider When Selecting a Call Center Outsourcer

Undergoing the vendor selection process can be a revealing exercise and will give you a greater
understanding of the qualities your outsourcing partner must have to succeed. The following are
some criteria that can help you to separate best-in-class call center outsourcers from average
performers.

 Range of services. Does the vendor have a broad enough range of expertise across
verticals and outsourcing channels that you can rely on as your needs grow and
expand? Carefully evaluate the vendor’s full suite of services and vertical expertise,
and consider how they can solve problems for you near- and long-term.
 Reputation. Does the vendor have a positive track record—not only among clients,
but within the call center industry? Verifying client references is a must. However, do
a thorough reputation check by reviewing the vendor’s social media footprint. Check
sites like Glassdoor.com to see if their call center agents and staff are leaving positive
comments. Check the company’s Facebook page and YouTube channel to see how
much the vendor cares about how they are viewed in the call center and broader
business community.
 People. What does the vendor do for their people that other call center vendors don’t
do? Given how low unemployment is today, attracting and retaining people is a
growing challenge in our industry. So how does the vendor address this issue? How
do they differentiate themselves in the marketplace? What training and mentoring
programs are in place? How do they deal with career path and promotions? What
perks and amenities do they offer their people?
 Company culture. We believe that the CEO drives culture. Therefore, meet with the
CEO and interview her/him. Find out what the CEO’s vision is for the company and
how they view culture. Is the vendor’s culture in line with your culture?
 Brand ambassadors. Does the vendor demonstrate that they will embrace your
brand, culture and customer contact style? Will the vendor become an extension of
your brand so that the experience is seamless for the end customer?
 Mutual fit. Remember, the vendor should be vetting you as much as you are vetting
them. You don’t want the vendor to “yes” you then fail to deliver. You want a vendor
who will be upfront and honest about their ability to solve your unique problems and
outsourcing needs. Therefore, you need to be sure as a client that your business is a
perfect fit for the vendor
 Nimble and flexible. All vendors claim to be flexible, but most of them are not. Ask
the vendor’s references specific questions about how the vendor has proven to be a
nimble and client-centric provider. And ask the vendor to give you detailed
 occurrences of how they proved to be reliable in situations where their client(s)
required max flexibility.
 Data security and compliance. Is the call center compliant with industry- or
country-specific standards, such as HIPAA, PCI DSS, TCPA, SSAE, GDPR? Does
the vendor offer staff training in security protocols? How often does the center
conduct security audits of its systems and protocols?
 Communication. Clear and constant communication between the vendor and client
management teams is vital to ensure that service standards are met and to prevent
misunderstandings from escalating. Is it a flat organizational structure? Do you have
access to site leadership if you want it? Make sure you do not get lost in a
bureaucratic maze.
 Pricing. Reducing costs is the most common reason for outsourcing, but it’s best to
avoid a narrow focus on obtaining the lowest price. Consider different pricing models
and balance the costs against other factors such as quality, flexibility and experience
to gauge the true value of the offering. Gain-sharing models and performance
stipulations should be included in your contract.
 Vendor size. Some companies begin the selection process with the impression that
bigger must be better. We recommend a “right-size” approach—picking vendors that
view your business as an important enough opportunity that they will assign top
resources to. It is a myth that only the biggest vendors in our industry are safe
selections. Too many clients are still defaulting to big vendors, assuming that they are
better. Totally false. In the call center industry, choosing the right-sized vendor who
will PRIORITIZE you is key. If your account isn’t big enough for a really big BPO,
you will get de-prioritized. Big BPOs have amazing sales pitches, but do you want to
be just one of a thousand logos on their masthead? Watch the

 4 To what extent is it worth undertaking HRP activity in the face of economic

and business uncertainty?

In current times of uncertainty, HR planning is commonly associated with

bureaucratic rigidity that is inapplicable to the rapidly changing modern world, where
reliance on past statistics gives us little scope to make future forecasts.

But contrary to this widely shared dogma, today’s fast-paced firms need a degree of
HR planning if they want their workforces to keep up with the unstable market
demands. This has been supported by research from the past decade, which confirms
that HR planning continues to make important contributions to the better monitoring
of staffing costs and employee numbers, as well as to the maintenance of a workforce
profile, which allows for better-informed resourcing decisions.

Broadly speaking, once implemented, HR planning can result in one of 2 forecasts:

labor shortages, or labor surpluses. A majority of Western companies will endure
the latter due to the recession. However, unlike the Western world, the Philippines
have not experienced the effects of the recent financial slump. Instead, the economy
is undergoing incredible growth, largely due to heavy foreign direct investment,
which has been fuelling cohorts of new ventures. Consequentially, there is a high
 demand for labor, which is widely available, however rarely skilled. On occasion, this
may result in skilled-labor shortages, in which case the employers must resort to:
employee overtime, employee outsourcing, or employee retention schemes.

In order to prevent such desperate measures, companies employ HR planning to

predict both internal and external labor demand on a constant basis. This way,
strategies to tackle employee shortage or surplus can be planned before the problem
even arises, thus preventing the labor shortage or surplus from happening, or at least
ameliorating the company’s approach.

 When analyzing internal demand, there are 5 questions that need to be

asked:

1. Is employee turnover high or low? High employee turnover can be an indicator

of upcoming labor shortages. On the other hand, low employee turnover may imply
the success of retention strategies, meaning that the company will not experience
labor shortages.
2. What do the ‘employee movements’ say? How many employees have changed
positions to ones within or outside of the company, and why? Employers often use
replacement charts, succession plans, or transition matrices in order to track this.
3. How high is employee productivity? If employee productivity is not high enough
to fulfill quotas, then this implies labor shortages.
4. Is the organizational performance on the rise or fall? When organizational
performance is falling, then the company is likely to experience labor surpluses, as
profits fall short of wages.
5. What is the company’s strategic direction? In cases where the company intends
on broadening its scope of activities, the expected outcome would be labor shortages.

 5 what is the purpose of equality And diversity policies ? what do they sometimes fail
to live up to expectations?

First Aid for Life is an equal opportunity business taking into account the diversity within
our workforce, customers and learners. We believe that everyone should be treated equally,
regardless of their religion, beliefs, age, gender, race, disability or sexual orientation.

The Equality & Diversity Policy requires commitment from everyone within the company. 
Our Founder, Emma Hammett, is responsible for the implementation and effective operation
of this policy and copies can be obtained from Emma Hammett upon request.

This policy and the legislation it represents will be taken into account during the design and
development of all our manuals and literature.

 our Responsibilities As an employer we ensure that we have a workplace where staff

feel valued, respected and included.  Upon commencement of their employment, staff
will be informed of the existence of this Policy and the company’s expectations of
them under its terms. Harassment, exclusion and bullying will not be tolerated on any
 level.  All staff should feel comfortable at work and always be treated with dignity
and respectWe will ensure that fair standards of employment practice and proper
records of employment decisions are maintained.We will deliver training on new and
revised legislation to all our staff.We will treat all our business partners, customers
and learners with respect, courtesy and consideration at all times.

 Employees’ Responsibilities All of our employees must adhere to and comply with
this Policy and the spirit in which it is written.Employees must treat all colleagues
and customers with courtesy, respect and consideration at all times.If employees
believe that any form of discrimination is taking place within the workplace, we
expect them to report this to senior management immediately.

 Your Rights & Responsibilities You can expect to be treated with respect, courtesy
and consideration at all times by our staff and we expect you to treat our staff in the
same way.You will not be discriminated against, or treated less favorably in any way
on the grounds of your religion, beliefs, age, gender, race, disability, or sexual
orientation.

 Recruitment Wherever possible all vacancy advertisements will include an

appropriate short statement on equal opportunity and diversity, and steps will be
taken to ensure that knowledge of vacancies reaches all areas of the community.  We
will also Endeavour to ensure that all vacancies are advertised both internally and
externally simultaneously. The selection criteria (job description and employee
specification) for all roles will be kept under constant review to ensure that they are
essential for the effective performance of the job. Remuneration will be set for the
advertised position before applicants are seen and selected.Wherever possible, more
than one person must be involved in the recruitment and selection process. In
addition, the reasons for the selection and rejection of applicants for vacancies must
be recorded.

 Employee Training and Promotion Whilst all training and employment

opportunities will be offered strictly on merit, we will encourage underrepresented
groups to apply for these opportunities within our company.Wherever possible,
efforts will be made to identify and remove unnecessary or unjustifiable barriers and
provide appropriate facilities and conditions of service to meet the special needs of
disadvantaged and/or underrepresented groups.

 Objectives of the Policy No applicant, employee or customer will receive less

favorable treatment or be subjected to any form of discrimination.
All employees and customers will be given the help they need to attain their full
potential wherever that is possible.
We secure the best employees for our needs by accessing all sections of the
community.
 We achieve an ability based workforce that is in line with the working population
mix.

 Feedback and Complaints We will deal with any complaints of discrimination

quickly and in a constructive manner.

Any feedback or complaints that we receive will be dealt with compassionately.  We

appreciate that this can be a difficult subject to raise and individuals may feel
uncomfortable or intimidated.  We are committed to ensuring that you feel able to come
forward without [email protected] firstaidforlife.org.uk

 6 what do you understand by the term Management and leadership development?

In the past, organizations were only expected to be effective, efficient, and profitable. In
today’s connected global economy where constant, rapid change is the name of the game,
past expectations are just the tip of the iceberg. Organizational leaders and managers face
new challenges as they strive to help their teams cope and succeed in the face of regular,
ongoing change.

Many organizations promote the erroneous belief that leaders are born with some innate,
supernatural qualities, while managers are merely mortal humans with great organizational
skills. But it’s not true.

Effective leaders do have to listen to all their stakeholders, employees, board members,
stockholders, clients, collaborators, and partners. Leaders must also learn how to increase
their emotional intelligence while leading from their core values. Challenging maybe, but
supernatural? Definitely not.

Leadership development and management development matter because the necessary skills
can be taught to anyone and mastered by anyone who is willing to develop herself
consistently and be disciplined about it.

Here’s the million dollar question for anyone looking to develop her or his organization’s
managers and leaders.

 What’s the difference between leadership development and management

development?
 Leaders

 Set the direction of the organization

 Inspire and motivate the organization to achieve their vision
 Align the inputs and efforts of organizational stakeholders (team board members,
employees, clients, collaborators, partners, stockholders, etc.) to keep the vision alive
 Create a culture that will help bring the vision to life

 Managers
 Execute the leader’s vision within the budget and allocated resources
 Manage the teams that will execute the vision
 Solve operational problems as they pop up

 My leadership development programs develop essential skill sets, such as:

 Enterprise change management

 Embodying leadership presence
 Creating organizational values that last
 Collaborating in a complex world
 Using your network to benefit your organization
 Developing sustainable, high-performing teams
 The Art of Listening

 My management development programs improve core competencies, such as:

 Delegating appropriately
 Encouraging effective teams
 Coaching to WIN BIG
 Enhancing communication
 Managing conflict

1.1 Planning, Organizing, Leading, and Controlling

 Planning is a process consisting of several steps. The process begins with environmental
scanning The act of analyzing the critical external contingencies facing an organization in
terms of economic conditions, competitors, and customers. which simply means that
planners must be aware of the critical contingencies facing their organization in terms of
economic conditions, their competitors, and their customers. Planners must then attempt
to forecast future conditions. These forecasts form the basis for planning.

 Organizing is the function of management that involves developing an organizational

structure and allocating human resources to ensure the accomplishment of objectives.
The structure of the

Recently, many organizations have attempted to strike a balance between the need for worker
specialization and the need for workers to have jobs that entail variety and autonomy. Many
jobs are now designed based on such principles as empowerment, job enrichmentA job redesign
technique that allows workers more control over how they perform their own tasks. and
teamworkCooperative effort by the members of a group or team to achieve a common goal.. For
example, HUI Manufacturing, a custom sheet metal fabricator, has done away with traditional
“departments” to focus on listening and responding to customer
needs..http://www.huimfg.com/abouthui-yourteams.aspx
  Leading

Leading involves the social and informal sources of influence that you use to inspire action taken
by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting
effort to attain organizational objectives. The behavioral sciences have made many contributions
to understanding this function of management. Personality research and studies of job attitudes
provide important information as to how managers can most effectively lead subordinates. For
example, this research tells us that to become effective at leading, managers must first
understand their subordinates’ personalities, values, attitudes, and emotions

 Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling
consists of three steps, which include (1) establishing performance standards, (2) comparing
actual performance against standards, and (3) taking corrective action when necessary.
Performance standards are often stated in monetary terms such as revenue, costs, or profits but
may also be stated in other terms, such as units produced, number of defective products, or levels
of quality or customer service.

1.2 Economic, Social, and Environmental Performance

Webster’s dictionary defines performance as “the execution of an action” and “something

accomplished.”http://www.merriam-webster.com/dictionary/performance (accessed October 15,
2008). Principles of management help you better understand the inputs into critical
organizational outcomes like a firm’s economic performance. Economic performance is very
important to a firm’s stakeholdersIndividuals and organizations who are actively involved in the
organization or whose interests may be positively or negatively affected as a result of what the
organization does. particularly its investors or owners, because this performance eventually
provides them with a return on their investment

1.3 Performance of Individuals and Groups.

Principles of management are concerned with organization-level outcomes such as economic,

social, or environmental performance, innovation, or ability to change and adapt. However, for
something to happen at the level of an organization, something must typically also be happening
within the organization at the individual or team level

 Individual-Level Performance

Individual-level performance draws upon those things you have to do in your job, or in-role
performance The things that you have to do as part of your job and its job description., and those
things that add value but which aren’t part of your formal job description. These “extras” are
called extra-role performance or organizational citizenship behaviors (OCBs)Voluntary
behaviors employees perform to help others and benefit the organization.
  Group-Level Performance

A groupA collection of individuals who interact with each other such that one person’s actions
have an impact on the other informal groups. is a collection of individuals. Group-level
performance focuses on both the outcomes and process of collections of individuals, or groups.
Individuals can work on their own agendas in the context of a group. Groups might consist of
project-related groups, such as a product group or an entire store or branch of a company

 7 what features distinguish a diverse workforce and how at all might they affect an
organizations approach to managing performance?

Diversity management refers to organizational actions that aim to promote greater inclusion
of employees from different backgrounds into an organization’s structure through specific
policies and program policies Organizations are adopting diversity management strategies
as a response to the growing diversity of the workforce around the world

 The are the two types of diversity management:

1. International diversity management

International diversity management refers to managing a workforce that comprises citizens or

immigrants in a single national context. Diversity programs focus on providing employment
opportunities to minority groups or recent immigrants.

For example, a French company may implement policies and programs with the aim of
improving sensitivity and providing employment to minority ethnic groups in the country.

2. Cross-national diversity management

Cross-national, or international, diversity management refers to managing a workforce that

comprises citizens from different countries. It may also involve immigrants from different
countries who are seeking employment.

An example is a US-based company with branches in Canada, Korea, and China. The company
will establish diversity programs and policies that apply in its US headquarters, as well as in its
overseas offices.

The main challenge of cross-national diversity management is that the parent company must
consider the legislative and cultural laws in the host countries it operates in, depending on where
the employees live.
  Characteristics of Diversity Management

1. Voluntary

Unlike legislation that is implemented through sanctions, diversity management is a voluntary

organizational action. It is self-initiated by organizations with a workforce from different
ethnicities, religions, nationalities, and demographics. There is no legislation to coerce or
government incentives to encourage organizations to implement diversity management programs
and policies.

2. Provides tangible benefits

Unlike in the past when diversity management was viewed as a legal constraint, companies use
the diversity strategy to tap into the potential of all employees and give the company a
competitive advantage in its industry. It allows each employee, regardless of his/her race,
religion, ethnicity, or origin to bring their talents and skills to the organization. A diverse
workforce enables the organization to better serve clients from all over the world since diverse
employees can understand their needs better.

3. Broad definition

While legislation and affirmative action target a specific group, diversity management uses a
broad definition since the metrics for diversity are unlimited. The broad definition makes
diversity programs more inclusive and has less potential for rejection by the members of the
majority group or privileged sections of the society.

 Best Practices of Diversity Management

Organizations can implement these best practices to maintain a competitive business advantage
and also capitalize on the potential of its diverse workforce. The following are the best practices
that an organization can implement:

1. Commitment from top management

Workforce diversity can succeed if it is adopted by a shared vision within the company’s top
management. The senior executives of an organization are responsible for policy formulation,
and they can promote or eliminate workplace diversity depending on the policies they make.
When the senior management fails to show commitment to implementing the diversity strategies,
the diversity plan becomes severely limited.

2. Identify new talent pools

In an organization where more people are leaving the workforce than are being hired,
management must immediately employ fresh talents. Most companies prefer traditional new-
employee sources, such as competitor organizations and graduate schools, to recruit the best
talent.

Companies should look beyond the traditional new-hire sources and explore other talent pools,
such as veterans exiting the military, minority groups, and talents from other regions or
countries. Hiring individuals with diverse skills and knowledge can help companies to deliver
better quality services to a global client base.

3. Provide a safe avenue for dialogue on diversity-related issues

Organizations should create resource groups where employees from similar backgrounds can
connect and communicate their concerns in a safe environment. People from minority groups
often feel isolated from organizations and may, therefore, increase employee turnover.

Creating avenues for mentorship, networking, and socializing helps to increase employee
engagement and performance levels. Successful staff members can demonstrate how they found
success within the organization and mentor new staff members.

4. Make diversity part of the company’s objectives

An organization that practices workforce diversity should not shy away from letting the world
know that the organization embraces diversity and works with people from all backgrounds. The
organization can start by encouraging and supporting its staff who volunteer in different causes
such as a disability walk or an HIV/AIDs awareness forum.

It can sponsor fund drives to raise funds to support vulnerable and underrepresented populations.
The organization can also offer internships and scholarships to minority groups.

5. Distinguish between diversity and affirmative action

Diversity is proactive rather than reactive, and it requires a change in the organization. People
from diverse cultures, backgrounds, and beliefs bring a range of work styles, thoughts, and
perspectives that an organization can use to improve efficiency and encourage creativity in
product development.

 8 for what reason has performance appraisal has been several critiqued? and what
are the theoretical links between HRM and performance appraisal?

Performance appraisals are one of the most important and often one of the most mishandled
aspects of management. Typically, we think of performance appraisals as involving a boss
evaluating a subordinate. However, performance appraisals increasingly involve subordinates
appraising bosses through a feedback process known as 360 feedbac

S. Johnson, “Tips on Evaluating your Boss,” Chron, July 1, 2018, https://work.chron.com/tips-

evaluating-boss-7179.html.
 Whether appraisals are done by subordinates, peers, customers, or superiors, the process itself is
vital to the lifeblood of the organization. Performance appraisal systems provide a means of
systematically evaluating employees across various performance dimensions to ensure that
organizations are getting what they pay for. They provide valuable feedback to employees and
managers, and they assist in identifying promotable people as well as problems. However, such
appraisals are meaningless unless they are accompanied by an effective feedback system that
ensures that the employee gets the right messages concerning performance.

 Uses of Performance Appraisals

In most work organizations, performance appraisals are used for a variety of reasons. These
reasons range from improving employee productivity to developing the employees themselves.
This diversity of uses is well documented in a study of why companies use performance
appraisals.

Traditionally, compensation and performance feedback have been the most prominent reasons
organizations use performance appraisals.

Feedback to employees. Performance appraisals provide feedback to employees about quantity

and quality of job performance. Without this information, employees have little knowledge of
how well they are doing their jobs and how they might improve their work.

Self-development. Performance appraisals can also serve as an aid to employee self-

development. Individuals learn about their strengths and weaknesses as seen by others and can
initiate self-improvement programs (see discussion on behavioral self-management programs).

Reward systems. In addition, appraisals may form the bases of organizational reward systems—
particularly merit-based compensation plans.

Personnel decisions. Performance appraisals serve personnel-related functions as well. In

making personnel decisions, such as those relating to promotions, transfers, and terminations,
they can be quite useful. Employers can make choices on the basis of information about
individual talents and shortcomings. In addition, appraisal systems help management evaluate
the effectiveness of its selection and placement functions. If newly hired employees generally
perform poorly, managers should consider whether the right kind of people are being hired in the
first place.

Training and development. Finally, appraisals can help managers identify areas in which
employees lack critical skills for either immediate or future performance. In these situations, new
or revised training programs can be established to further develop the company’s human
resources.

It is apparent that performance appraisal systems serve a variety of functions in organizations. In

light of the importance of these functions, it is imperative that the accuracy and fairness of the
appraisal be paramount considerations in the evaluation of a system. Many performance
appraisal systems exist. It is the manager’s job to select the technique or combination of
techniques that best serves the particular needs (and constraints) of the organization. Before
considering these various techniques, let us look at some of the more prominent problems and
sources of error that are common to several of them.

 Problems with Performance Appraisals

A number of problems can be identified that pose a threat to the value of appraisal techniques.
Most of these problems deal with the related issues of the validity and reliability of the
instruments or techniques themselves. Validity is the extent to which an instrument actually
measures what it intends to measure, whereas reliability is the extent to which the instrument
consistently yields the same results each time it is used. Ideally, a good performance appraisal
system will exhibit high levels of both validity and reliability. If not, serious questions must be
raised concerning the utility (and possibly the legality) of the system.

Central Tendency Error. It has often been found that supervisors rate most of their employees
within a narrow range. Regardless of how people actually perform, the rater fails to distinguish
significant differences among group members and lumps everyone together in an “average”
category. This is called central tendency error and is shown In short, the central tendency error
is the failure to recognize either very good or very poor performers.

Strictness or Leniency Error. A related rating problem exists when a supervisor is overly strict
or overly lenient in evaluations In college classrooms, we hear of professors who are “tough
graders” or, conversely, “easy A’s.” Similar situations exist in the workplace, where some
supervisors see most subordinates as not measuring up to their high standards, whereas other
supervisors see most subordinates as deserving of a high rating. As with central tendency error,
strictness error and leniency error fail to distinguish adequately between good and bad
performers and instead relegate almost everyone to the same or related categories.

Halo Effect. The halo effect exists where a supervisor assigns the same rating to each factor
being evaluated for an individual. For example, an employee rated above average on quantity of
performance may also be rated above average on quality of performance, interpersonal
competence, attendance, and promotion readiness. In other words, the supervisor cannot
effectively differentiate between relatively discrete categories and instead gives a global rating.

others. This can impact a team to the point that those employees may receive more coaching,
better reviews and, as a result, more opportunities for advancement.

S. Maier, “5 unconscious factors impacting your performance appraisals,” The Business

Journals, January 25, 2019, https://www.bizjournals.com/bizjournals/how-to/human-
resources/2019/01/5-unconscious-factors-impacting-your-performance.html.
Recency Error. Oftentimes evaluators focus on an employee’s most recent behavior in the
evaluation process. This is known as the recency error. That is, in an annual evaluation, a
supervisor may give undue emphasis to performance during the past months—or even weeks—
and ignore performance levels prior to this. This practice, if known to employees, leads to a
situation where employees may “float” for the initial months of the evaluation period and then
overexert themselves in the last few months or weeks prior to evaluation. This practice leads to
uneven performance and contributes to the attitude of “playing the game.”

Personal Biases. Finally, it is not uncommon to find situations in which supervisors allow their
own personal biases to influence their appraisals. Such biases include like or dislike for someone,
as well as racial and sexual biases. Personal biases can interfere with the fairness and accuracy of
an evaluation and are illegal in many situations.

 Reducing Errors in Performance Appraisals

A number of suggestions have been advanced recently to minimize the effects of various biases
and errors on the performance appraisal process.

 9 explain the terms social partnership welfare corporatism and managerial

capitalism what is their significance for the regulation of the employment
relationship?

Employees’ economic and political power resources’, I explain the theoretical framework by
critically referring to skills and power resources. Then I point to the overall pension system
and the scope for occupational pensions. Afterwards, applying the ‘method of difference’, I
focus on different occupational pension schemes across sectors within each country using
national resources in order to map their variety. In terms of economic sectors, the article
mainly refers to public administration, finance and insurance, manufacturing, construction,
hospitality and administrative and support services. Finally, the article provides evidence for
the association of economic power and/or political power with widespread and generous
occupational pension schemes in different economic sectors across countries (‘method of
agreement’

 Employees’ economic and political power resources

Skill-related approaches (economic power) and power resources approaches (political power)
are powerful explanators for the differences in public social policies. Instead of treating
power resources and skills as rival explanations, in this section, I argue that they complement
each other, where both grant different employees’ power. In general, state regulations
influence the scope of occupational pensions as well as the preferences of employers and
trade unions Since public pension schemes are the same in all the economic sectors of a
country, they cannot be utilized as an explanation for sectoral differences. Instead, the skills
of employees and power resources of trade unions differ between economic sectors.
  A joint perspective

When considering employer-centred approaches and power resources approaches, both

strands have complementary elements eliminating some shortcomings. Skills alone are not
able to solve the empirical puzzle of widespread occupational pension schemes in sectors
with low-qualified employees (e.g. the hospitality sector in Denmark). Furthermore, political
power resources do not explain the generous occupational pension schemes in sectors with
weak trade unions (e.g. finance and insurance). Employer-centred approaches mainly refer to
skills and do not explicitly link them with employees’ power, while traditional power
resources approaches only focus on political or collective power without considering
individual power

 In search of evidence: similar sectors in different countries

The combination of the ‘method of difference’ with the ‘method of agreement’ helps to control
for other factors causing the outcome. I first apply the ‘method of difference’ for the comparison
of occupational pensions in different sectors within each country in order to identify similar
patterns in all countries. The ‘method of agreement’ will then demonstrate whether similar
associations of economic and political power with occupational pensions exist for six economic
sectors in different countries. I do not apply quantitative or set-theoretic methods due to the small
number of cases and because the aim is not to test a large number of hypotheses. Rather, the aim
is to offer broad comparative evidence for the role of employees’ economic and political power
in occupational pensions.

In order to cover different institutional characteristics, I select countries with a range of

welfare regimes, production regimes and systems of industrial relations. Germany represents
conservative welfare regimes and continental coordinated market economies with
cooperative industrial relations. Italy is typical of Mediterranean welfare regimes and mixed
market economies with polarized and fragmented industrial relations. The United Kingdom is
an illustration of a liberal welfare regime, with liberal market economies and pluralist and
fragmented industrial relations. Finally, Denmark is a prime example of a Nordic welfare
regime, with a social democratic coordinated production regime with corporatist industrial
relations

 10 how can HR demonstrate business capability ? what system and measurement

processes do they need to put in the place to demonstrate the contribution of HR
practice to bottom line performances?.

It’s a mistake to take a haphazard approach to managing your HR strategy, and focus
exclusively on the human side. You need strong, well-defined processes to attract, source,
recruit, develop, and retain the level of talent necessary to make your business a success.

But don’t worry, we’ve got your back. This article will help you create and refine those
processes.
  Benefits of creating human resources processes for your small business

You need to crete human resourcesb process to run your HR depratment create
smoothly and make a positive impact on your company. Do it right and you’ll reap the
following benefits.

1. Make better decisions, faster

When you have a process to follow with defined steps, you know how to get started and what to
do next. You don’t have to define each stage as you go along, so you can move faster, and can
decide in line with the process. You have a reason behind each decision, rather than just deciding
on the fly.

2. Meet organizational goals

With a process in place, you can measure performance, and know for sure if you’re helping
meet the company, departmental, and individual goals. Focused metrics tracking for each
process generates data you can use to optimize the process and get better results.

3. Optimize your resources

With defined, automated processes, you can put your time, energy, and resources to better
use. You can follow a tried and tested process that delivers predictable results, much like the
predictable cappuccino you get at Starbucks every afternoon.

This frees up time to focus on your HR strategy, making sure it’s on point and that your
workforce is performing well.

 human resources processes you should implement

Implement these seven essential human resources in your organization to realize the above
benefits. But you need to define and create these processes first, and then turn them into HR best
practices you can use time and time again. Here’s how.

1. Recruiting

Having an organized, effective, and efficient hiring process is crucial to attract high quality
applicants who are excited to work at your company. Take these steps to make this happen.

 Align your hiring process with your organization’s goals and staffing plan.
 Take the time to tailor a job description that fits the candidate you’re trying to attract.
 Use a talent acquisition strategy that leverages employee referrals, past applicants,
internal candidates, and job boards.
 Screen applicants with tools such as assessments, quick phone calls, and scorecards that
mark candidates according to the required skills and experience.
  Hold interviews, ideally letting candidates schedule their own time.
 Make a job offer promptly with clear terms.

2. On boarding

Your new employee on boarding checklist should include the following steps:

 Contact the new employee promptly to finalize a start date.

 Prepare all paperwork before the first day. Make sure your new hire has provided the
required documents.
 Tell existing employees about the new hire and when they will be starting.
 Prepare the new hire’s workspace, including office swag or goodie bags.
 Set up accounts and logins.
 Put together an employee orientation schedule.

3. Workforce planning

Workforce planning incorporates both strategic HR processes and day-to-day Employee

management This includes staffing needs, absence management, shift planning and scheduling,
and managing overtime.

Just starting? consider these steps to set up your workforce and HRP process:

 Analyze workforce performance — discover what skills you have, which ones you needs
and how your current employees are performing.
 Forecast future business staffing needs,, whether that’s number of employees or skills
required to meet business goals.
 Optimize your workforce so it aligns with company objectives — this could be hiring for
new skills, changing the number of employees working shifts, or upskilling existing staff.

4. Talent management

Often companies hire talented individuals and leave them to it, checking in occasionally during
performance reviews.

That’s not enough to retain your best employees.

Talent management aims to nurture employees to get the most out of them, develop new skills,
and enhance their work performance.

 To create a talent management process, you need to:

  Overhaul your recruitment and on boarding strategies so you can make sure you
develop talent from the moment they decide to join you.
 Reward hard work creatively, looking at different bonuses and recognition.
 Invest in workforce analytics so you can constantly optimize your talent management
process to be sure it meets the needs of your staff and company.

5. Performance management

A performance management process should benefit both the company and the employee.
Companies used to set yearly performance meteric and goals, only addressing issues during the
annual review.

By then, it was often too late to make changes. Forward-looking companies today are switching
to more regular and continuous performance management processes.

These tips can create a process that benefits your company and employees:

 Collaboratively set performance measures and goals, with input from the employee,
manager, and any other relevant stakeholders.
 Implement different types of feedback, such as employee self rating or 360-degree
feedback.
 Set regular check-ins, as short as five-minute conversations over a coffee, or even a back
and forth over email.
 Provide detailed information on the recognition and rewards for each goal.

6. Learning and development

Training should be a first resort, not a last resort, and a priority for your business. Learning and
development opportunities boost employee morale, improving your retention rate.

You can also make sure you have the skills in-house to help your business grow and develop into
the future and to be prepared for talented employees leaving your company.

These points will help you create a learning and development process:

 Tie training to your staffing plan and company goals.

 Use data from your performance management process to identify areas where
employees need training to achieve their goals.
 Measure the success of your training initiatives by establishing and tracking HR mertrics
7. Off boarding

Off boarding is still a relatively new process with HR management, In the past, companies were
often careless with departing employees. The aim was to transfer their knowledge to other
employees and get them out the door as soon as possible.

But if you off board in the right way, you can create a lasting positive impression on the
departing worker that benefits your employer brand.

 11 what factors might account for the discrepancy between the proportion of
workplace with strategic plans that include employee development issue and the
proportion of workplace that involve HR in the development of the plans?

In order to improve the strategic alignment of staff and other resources, it’s essential to
understand how a strategic HR planning process works. At its most basic level, strategic
human resource planning ensures adequate staffing to meet your organization’s operational
goals, matching the right people with the right skills at the right time.

It’s important to ask where your organization stands currently and where it is going in order to
remain flexible. Each company’s plan will look slightly different depending on its current and
future needs, but there is a basic structure that you can follow to ensure you’re on the right
track.

The strategic human resource planning process begins with an assessment of current staffing,
including whether it fits the organization’s needs, and then moves on to forecasting future
staffing needs based on business goals. From there, you’ll need to align your organization’s
strategy with employment planning and implement the plan not only to hire new employees but
also to retain and properly train the new hires—and your current employees—based on
business changes.

1. Assess current HR capacity

The first step in the human resource planning process is to assess your current staff. Before
making any moves to hire new employees for your organization, it’s important to understand the
talent you already have at your disposal. Develop a skills inventory for each of your current
employees.

You can do this in a number of ways, such as asking employees to self-evaluate with a
questionnaire, looking over past performance reviews, or using an approach that combines the
two. Use the template below to visualize that data.

2. Forecast HR requirements

Once you have a full inventory of the resources you already have at your disposal, it’s time to
begin forecasting future needs. Will your company need to grow its human resources in number?
Will you need to stick to your current staff but improve their productivity through efficiency or
new skills training? Are there potential employees available in the marketplace?

It is important to assess both your company’s demand for qualified employees and the supply of
those employees either within the organization or outside of it. You’ll need to carefully manage
that supply and demand.

Demand forecasting

Demand forecasting is the detailed process of determining future human resources needs in terms
of quantity—the number of employees needed—and quality—the caliber of talent required to
meet the company's current and future needs.

Supply forecasting

Supply forecasting determines the current resources available to meet the demands. With your
previous skills inventory, you’ll know which employees in your organization are available to
meet your current demand. You’ll also want to look outside of the organization for potential
hires that can meet the needs not fulfilled by employees already present in the organization.

Need advice on calculating your staffing needs and developing a staffing plan?

Matching demand and supply

Matching the demand and supply is where the hiring process gets tricky—and where the rest of
the human resources management planning process comes into place. You’ll develop a plan to
link your organization’s demand for quality staff with the supply available in the market. You
can achieve this by training current employees, hiring new employees, or combining the two
approaches.

3. Develop talent strategies

After determining your company’s staffing needs by assessing your current HR capacity and
forecasting supply and demand, it’s time to begin the process of developing and adding talent.
Talent development is a crucial part of the strategic human resources management process.

Recruitment

In the recruitment phase of the talent development process recruitment , you begin the search for
applicants that match the skills your company needs. This phase can involve posting on job
websites, searching social networks like LinkedIn for qualified potential employees, and
encouraging current employees to recommend people they know who might be a good fit.
Selection

Once you have connected with a pool of qualified applicants, conduct interviews and skills
evaluations to determine the best fit for your organization. If you have properly forecasted
supply and demand, you should have no trouble finding the right people for the right roles.

Hiring

Decide the final candidates for the open positions and extend offers.

Bring clarity to the hiring process to find the best candidates for your company.

Training and development

After hiring your new employees, bring them on board. Organize training to get them up to speed
on your company’s procedures. Encourage them to continue to develop their skills to fit your
company’s needs as they change. Find more ideas on how to develop your own employee on
boarding process and then get started with this on boarding timeline template. 

Employee remuneration and benefits administration

Keep your current employees and new hires happy by offering competitive salary and benefit
packages and by properly rewarding employees who go above and beyond. Retaining good
employees will save your company a lot of time and money in the long run.

Performance management

Institute regular performance reviews for all employees. Identify successes and areas of
improvement. Keep employees performing well with incentives for good performance.

Employee relations

A strong company culture is integral in attracting top talent. Beyond that, make sure your
company is maintaining a safe work environment for all, focusing on employee health, safety,
and quality of work life.

 12 explain the importance and limitations of demand and supply forecasting to the
HRP process

There are several different ways to do demand forecasting. Your forecast may differ based on the
forecasting model you use. Best practice is to do multiple demand forecasts. This will give you a
more well-rounded picture of your future sales. Using more than one forecasting model can also
highlight differences in predictions. Those differences can point to a need for more research or
better data inputs. 
1. Passive demand forecasting

Passive demand forecasting is the simplest type. In this model, you use sales data from the past
to predict the future. You should use data from the same season to project sales in the future, so
you compare apples to apples. This is particularly true if your business has seasonal fluctuations.

The passive forecasting model works well if you have solid sales data to build on. In addition,
this is a good model for businesses that aim for stability rather than growth. It’s an approach that
assumes that this year’s sales will be approximately the same as last year’s sales. 

Passive demand forecasting is easier than other types because it doesn’t require you to use
statistical methods or study economic trends. 

2. Active demand forecasting

If your business is in a growth phase or if you’re just starting out, active demand forecasting is a
good choice. An active forecasting model takes into consideration your market research,
marketing campaigns, and expansion plans. 

Active projections will often factor in externals. Considerations can include the economic
outlook, growth projections for your market sector, and projected cost savings from supply chain
efficiencies. Startups that have less historical data to draw on will need to base their assumptions
on external data.

3. Short-term projections

Short-term demand forecasting looks just at the next three to 12 months. This is useful for
managing your just-in-time supply chain. Looking at short-term demand allows you to adjust
your projections based on real-time sales data. It helps you respond quickly to changes in
customer demand.

If you run a product lineup that changes frequently, understanding short-term demand is
important. For most businesses, however, a short-term forecast is just one piece of a larger
puzzle. You’ll probably want to look further out with medium- or long-term demand forecasting.

4. Long-term projections

Your long-term forecast will make projections one to four years into the future. This forecasting
model focuses on shaping your business growth trajectory. While your long-term planning will
be based partly on sales data and market research, it is also aspirational. 

Think of a long-term demand forecast as a roadmap. Using this forecasting technique, you can
plan out your marketing, capital investments, and supply chain operations. That will help you to
prepare for future demand. Being ready for your business growth is crucial to making that
growth happen.
5. External macro forecasting

External macro forecasting incorporates trends in the broader economy. This projection looks at
how those trends will affect your goals. An external macro demand forecast can also give you
direction for how to meet those goals. 

Your company may be more invested in stability than expansion. However, a consideration of
external market forces is still essential to your sales projections. External macro forecasts can
also touch on the availability of raw materials and other factors that will directly affect your
supply chain.

6. Internal business forecasting

One of the limiting factors for your business growth is internal capacity. If you project that
customer demand will double, does your enterprise have the capacity to meet that demand?
Internal business demand forecasts review your operations. 

The internal business forecasting type will uncover limitations that might slow your growth. It
can also highlight untapped areas of opportunity within the organization. This forecasting model
factors in your business financing, cash on hand, profit margins, supply chain operations, and
personnel. 

Internal business demand forecasting is a helpful tool for making realistic projections. It can also
point you toward areas where you need to build capacity in order to meet expansion goals.

5 demand forecasting methods

There are many different ways to create forecasts. Here are five of the top demand forecasting
methods.

1. Trend projection

Trend projection uses your past sales data to project your future sales. It is the simplest and most
straightforward demand forecasting method.

It’s important to adjust future projections to account for historical anomalies. For example,
perhaps you had a sudden spike in demand last year. However, it happened after your product
was featured on a popular television show, so it is unlikely to repeat. Or your eCommerce site
got hacked, causing your sales to plunge. Be sure to note unusual factors in your historical data
when you use the trend projection method. 

2. Market research

Market research demand forecasting is based on data from customer surveys. It requires time and
effort to send out surveys and tabulate data, but it’s worth it. This method can provide valuable
insights you can’t get from internal sales data.
You can do this research on an ongoing basis or during an intensive research period. Market
research can give you a better picture of your typical customer. Your surveys can collect
demographic data that will help you target future marketing efforts. Market research is
particularly helpful for young companies that are just getting to know their customers.

3. Sales force composite

The sales force composite demand forecasting method puts your sales team in the driver’s seat. It
uses feedback from the sales group to forecast customer demand.

Your salespeople have the closest contact with your customers. They hear feedback and take
requests. As a result, they are a great source of data on customer desires, product trends, and
what your competitors are doing. 

This method gathers the sales division with your managers and executives. The group meets to
develop the forecast as a team.

4. Delphi method

The Delphi method, or Delphi technique, leverages expert opinions on your market forecast. This
method requires engaging outside experts and a skilled facilitator.

You start by sending a questionnaire to a group of demand forecasting experts. You create a
summary of the responses from the first round and share it with your panel. This process is
repeated through successive rounds. The answers from each round, shared anonymously,
influence the next set of responses. The Delphi method is complete when the group comes to a
consensus.

This demand forecasting method allows you to draw on the knowledge of people with different
areas of expertise. The fact that the responses are anonym zed allows each person to provide
frank answers. Because there is no in-person discussion, you can include experts from anywhere
in the world on your panel. The process is designed to allow the group to build on each other’s
knowledge and opinions. The end result is an informed consensus.

5. Econometric

The econometric method requires some number crunching. This technique combines sales data
with information on outside forces that affect demand. Then you create a mathematical formula
to predict future customer demand.

The econometric demand forecasting method accounts for relationships between economic
factors. For example, an increase in personal debt levels might coincide with an increased
demand for home repair services. 
Demand forecasting examples

All types of businesses can benefit from demand forecasting. Here are three examples of how
demand forecasting might work for an ecommerce company.

Passive/Trend Projection

A husband and wife team sells costumes, party favors, and decorations for kids. They have been
in business for more than 10 years. They have built their business to a comfortable level of
revenue and profitability. While they don’t plan to retire soon, they also don’t plan to expand.

They average the last three years of sales data and use that to project trends for the coming year.
Historical data tells them that their best months are May and October, and the worst are
December and August. They use this information to create a trend projection that tells them
when they need to place their wholesale orders. This also tells them when they need to add
temporary staff at their fulfillment warehouse. They factor in a plan for a summer promotion in
the coming year that should increase sales.

Active/Market Research.

The marketing team sends surveys to all customers. From the responses, they develop a profile
of the company’s current customers. The profile includes age, income, employment, and where
they live. They discover that people who commute by public transit are enthusiastic about their
noise-canceling headphones. 

From the survey responses, the company develops a marketing plan that includes ads on trains
and buses. They bring in econometric principles to project the impact of their marketing
campaign on future sales. From this, they are able to develop a demand forecast.

Short-Term/Sales Force Composite

A company sells high-end office chairs, both B2C and B2B. The sales team works primarily with
B2B customers to generate large orders for corporate offices. However, the salespeople have had
a hard time closing sales for the past quarter.