Powerpoint

Human Resource Forecast Plan

Human Resource Forecasting

Derrick Williams & Hunter Davis

August 5th, 2018

Saint Leo University

Motors and More, Inc. 3 Year HR Forecast

Motors and More, Inc. must continue to use its prospector strategy moving forward in the next three years in all aspects of its expansion. This prospector strategy has made M&M competitive in the marketplace thus far and it will be the driving force in its successful expansion and continual significance. This strategy will be applied to recruiting and hiring initiatives specifically targeting college and trade-school graduates, veterans, and the expanding minority population in the local area. Furthermore, the need to adapt to new technological trends while offering new products will also be key. The following HR Forecast will address five key critical issues (listed below) that when combined, will play a major factor in the organizational goals of M&M during its expansion.

· Labor supply and demand

· Production defect reduction

· Diversification of the workforce

· Company president’s outside business ventures

· Additional product development

Addressing Labor Pool Supply and Demand

The demand for skilled and qualified labor currently far exceeds that of the supply. This is mainly attributed to two factors. The first being the location of the company in a small southern town with a population of only 28,000 people, the second being that the company has yet to take advantage of the growing labor pool of minorities in the area. Because the marketplace is so competitive, M&M must take drastic action to discover ways to successfully recruit in a stagnant and possibly shrinking labor pool. Harnessing a qualified or trainable labor pool must be an essential piece of M&M’s organization goals and expansion strategy. In some cases, the company will need hire qualified workers from outside the local area. The following two areas have been identified as special initiatives to further tap the market’s labor pool.

Internship Programs

The HR department will develop a strategy to advertise and recruit for newly developed internship programs. The local technical school and community college will be targeted within the first year. As the program progresses, during years two and three, interns will be recruited regionally after identifying other high potential areas. By developing a successful internship program, M&M will enjoy increased labor capacity and productivity as well as decreased recruiting and training costs for those interns who eventually become full-time employees. The internship program will also serve as a grassroots public-relations and marketing strategy as interns are likely to share their experiences with friends and classmates, thus opening the door to more qualified employees. The majority of costs for the internship program will originate from program planning and evaluating interns, making it a low-cost way to source talent locally and regionally (Maertz, 2014).

Veteran Recruiting

The president of M&M is a well-known patriot and veteran, therefor, recruiting veterans will also be a priority during the next three years of expansion. Nearly a quarter of a million veterans enter the civilian workforce each year making it a talented and respected labor pool that offers educated, disciplined, and professional individuals ready to hit the ground running (military.com, n.d.). M&M will develop a dedicated veteran recruiting strategy and begin by targeting job fairs at regional military bases and posting job openings military job boards. Additionally, veterans currently employed by the company can be offered incentives to refer other former military applicants. Company marketing towards veterans will need to increase to build brand recognition within the military community. A final step in the veteran recruiting process for M&M will be to take advantage of government sponsored programs like HireVetsFirst.gov and TurboTap.org that will streamline the veteran hiring process with free job postings viewed only by veterans and current military members in the transition phase. A successful veteran recruiting plan will help differentiate M&M from competitors, establish it as a “military friendly” company, and advance its image in the community (military.com, n.d.).

Addressing Production Demand Increases and Product Defects

As Motors and More, Inc. continues is expansion in the next three years, the company must never lose sight of outside trends such as changes in the workforce, technological advances, and its competitors. To remain a key-player in the marketplace, M&M must anticipate the need to take advantage of new technology to supplement labor pool deficiencies and improve product quality. In doing so, the company will be able to successfully increase product output without compromising quality. Product defects can result in class action lawsuits that no-doubt will be damaging to M&M’s reputation and bottom line.

Investing in cutting edge manufacturing technology will play a major role in both the short and long-term goals of Motors and More. Advanced computer-based manufacturing machinery is now available to perform tasks previously delegated to the human workforce aimed at decreasing productions errors and long-term operating costs (Anderson, 2018). The following steps will be taken to address and reduce production defects during the next three years of company expansion and will continue to be used further in the future.

· Preventative maintenance for high-speed production

· Regular inspection and testing

· Improved communication channels between engineers and production supervisors

· Sourcing high-quality raw materials

These four simple steps will ensure product defects are greatly reduced (Eagle Technologies, n.d.). Taking advantage of technological innovations in manufacturing will also ease the burden of an overworked manufacturing department with no choice but to use aging technology to meet the demands of increased production. Adding personnel to the quality control department is not necessarily the best answer to combat production defects. M&M will guarantee that all employees in the manufacturing department are consistently trained and have access to resources like new technology, thus reducing costly production defects (McCain, 2007).

Human resource (HR) forecasting in human resource management (HRM) refers to the process of the projection of future labor needs and the impact such effects can have on the company. HR forecasting involves both long-term and short-term staffing requirements and needs that are likely to arise as a result of the expected sales, growth and expansion, among other such factors that affect a company’s labor needs. Strategic HR planning is good for the organization in different ways. Resource planning identifies future staffing needs, forecasts on availability of personnel while suggesting possible substitutions (Katariina, 2012). All these play a vital role in ensuring guaranteed efficiency, avoid possible risks such as shortage of labor force. This paper presents a-3-year HR forecast for a company, Motors and More, which has three assumptions in place. First, the HR department assumes that the company’s will diversify as a result of hiring more Hispanics, Kurds and persons from alternative workforces. Secondly, the company’s HR believe that the president will open another company creating the need for someone to manage its daily operations to take over from the president who will be moving to the new company. Lastly, the company believes that an additional product will be developed and thus there will be the need for capacity expansion and improvement of the production lines.

Since the company is planning on hiring people with diverse backgrounds and culture, there will be the need for the company to have a well stated corporate culture that binds all the employees of the company together. Corporate cultures are always geared towards the achievement of the company’s missions and vision as stated in the preambles Katariina (2012) asserts that a consistent working rules and corporate cultures guides employees towards the need of the company’s operations, gluing people together due to the common working patterns thus building teamwork and cohesiveness within the organizations. There will also be the need for training and development. Training ensures that the company employees a workforce with the necessary skills that can develop the company. Training, research has shown, improves skills, interests, and attitudes towards the working in the company. This in turn improves productivity and therefore improving sales and profits. Training is also necessary to introduce the new employees to the company’s technology and machinery in the manufacturing segment, for example. Training also helps minimize conflicts within the organization while improving the productivity of the workforce while making them respect their differences. Diversity training fosters good employee relationship and engagement thereby creating a good environment in the working business. The company should also learn to empower both the management so as to institutionalize diversity within the organization. Such results in a positive impact on the productivity of the company. Some of the major companies that have benefited from the education of employees on diversity are The Coca Cola Company, Apple Inc., Walmart Inc., Toyota, and Boeing Company.

The consciousness while emphasizing the importance of the company’s organizational culture. The education should also be able to management responsibility and accountability; and ensure the incorporation of diversity management as a part of the overall organizational development and as an integral part of the entire change process.

Since the president is leaving, there will be vacancy in the office. This will necessitate the appointing of those who can assume the role of the president either in acting or full capacity. The firm is therefore going to incur additional costs in the recruiting of these individual, especially if the person will be outsourced. Training and career development will be given top priority in order to train the new staff on the various requirements of the company and their roles. Training is important as it develops the employee both professionally and managerially adding stimulation to employees’ work. The company will also have to link rotation with career development planning.

This is vital because it helps employees to understand their developmental needs as is presented in their job assignments. When the employee joins the new position, the company should ensure both job-related and development-related objectives can be defined by the new recruit. While training the company will create a well-established training program that will serve to introduce the new recruit to the company. A good training program should have well set out goals (Richardson & Yan, 2007).The employees should also be provided with a chance to determine the knowledge skills and abilities that they are willing to learn. The new manager will also be trained on the company’s culture, policies, and the various procedure that guide the company activities. Statement of objective, mission, and the vision of the company as well as its core values should be communicated in advance. Tracking the training program is also an aspect that should be given priority. Tracking the employee will help understand if the employee is aware or understands their roles in the company. Early tracking, as soon as the employee begins working, is recommended. This is particularly necessary as it can help notice issues that require attention in advance and solve them. It will be advantageous to the company as risks will be recognized and mitigated in advance to prevent losses due to poor management. Training offers the company another advantage of improving productivity, reducing employee turnover due to good performance, and reducing supervision.

The company is planning on project line extension; however, it does not have enough capacity necessary for expansion. This means the company will have to consider making another company elsewhere. This will help to service the growing production demands and the company goals of the amount of production required and targeted production capacities. By acquiring another company, the company will also have to incur other expenses in recruiting the employee that will work in the new company. Both skilled, semiskilled, and unskilled labor will be necessary to work in the various departments. While the company is venturing in new products, the recruitment of new workforce that will work on the new products will be required. This will see them even train the current employees so. As the company grows, the integration of training on the new product techniques. This will help boost retention and improve productivity for the company. Brand extension will see the increase in the employee work base. The company is also expected to be confronted by increased labor cost due to increased hiring and payment of new hires. The company will look into the possible constraints and hardships it is likely to go though in case of the employment. It will have to find ways of mitigating possible risks and/or reducing them.

With the complexity of economics and its diverse nature, it is commonly hard in theory to determine the future employment and recruitment needs. Various factor such as technology, the microeconomic environment, and other external factors all contribute to the dynamic nature of the economic environment of a particular place.

Motors and More has a large task to undertake in the next three years. Planning on the employment of new recruits, a manager, the inclusion of people from diverse backgrounds, and the development of extensions on the existing product lines all require money. The company will therefore have to incur more resources especially financial resources in the ensuring these new recruits and the strategies taken are productive and of importance to the company (Richardson & Yan, 2007). The company should therefore be prepared with the necessary sources of the various funds that will be required for expansions. Deciding on whether to use available resources in servicing the rising labor demand or to borrow from credit lenders remains the decision of the company and how feasible such decisions will be.

The above HR Forecast will be implemented by Motors and More, Inc. for the next three years at minimum. If executed properly and efficiently, M&M can remain a well-respected manufacturer that sets itself apart from its competition far into the future. Planning a long-term expansion requires top-notch preparation and communication between all departments. The HR forecast is the final piece of the human resources plan for M&M that provides an accurate estimate of required employees and matching skills (IIBM, 2015). Additionally, the plan provides the remaining infrastructure needed to meet the organizational goals of the company during what should be not only considered an expansion, but should also be considered a major enterprise overhaul.

References

Anderson, K. (2018, June 05). Automation Anywhere drives productivity by supplementing manpower with digital workforce. Retrieved August 3, 2018, from https://siliconangle.com/2018/06/05/automation-anywhere-drives-productivity-by-supplementing-manpower-with-its-digital-workforce-imaginenewyork18/

Eagle Technologies. (2014, August 05). Ways to Reduce Product Defects in Manufacturing. Retrieved August 3, 2018, from https://eagletechnologies.com/ways-to-reduce-product-defects-in-manufacturing/

IIBM LMS. (2015). Planning and Forecasting in Human Resource Management - IIBM Institute LMS. Retrieved August 4, 2018, from http://www.iibmindialms.com/library/management-basic-subjects/human-resources_management/recruitment/planning-forecasting/

Katariina, T. (2012) The Role of Diversity Management in Human Resource Management In Hotel Business. Saimaa University of Applied Sciences Business and Culture, Imatra

Maertz, Carl P. Jr, Stoeberl, P. A., & Marks, J. (2014). Building successful internships: Lessons from the research for interns, schools, and employers. Career Development International, 19(1), 123-142. doi:http://dx.doi.org.saintleo.idm.oclc.org/10.1108/CDI-03-2013-0025

McCain, D. (2007). Motors and More Inc. – A Progressive HR Case Study. doi:10.4135/9781473957213

Military.com. (n.d.). Five Things to Help Recruit Veterans to Your Business. Retrieved August 3, 2018, from https://www.military.com/hiring-veterans/resources/how-to-recruit-veterans-for-your-business.html

Richardson, S., &Yan, T. (2007.) Forecasting Future Demands: What we can and cannot know.

National Institute of Labour Studies: Flinders University.