: ANS 1:

HUMAN RESOURCE PLAN FOR THE BUSINESS:

Human resource planning is a key activity in business. It includes workforce
planning, employee development plans, building basic employee benefits and salary
programs, training and development, hiring and firing of employees, and more.
Human resource plan for business development should include an employee
development plan for each employee.

Human resources are the people that work for an organization where as Human
Resource Management is concerned with how these people are managed. However,
the term Human Resource Management (HRM) has come to mean more than this
because people are different from the other resources that work for an organization.
People have thoughts and feelings, aspirations and needs. The term HRM has thus
come to refer to an approach, which takes into account both:

1. The needs of the organization

2. The needs of its people.

Different individuals have their own needs and aspirations. HRM therefore involves
finding out about the needs and aspirations of individual employees, for example
through the appraisal process and then creating the opportunities within the
organization (e.g. through job enlargement) and outside the organization (e.g.
through taking up educational opportunities at local colleges/universities) for
employees to improve themselves. HRM therefore relates to every aspect of the way
in which the organization interacts with its people, e.g. by providing training and
development opportunities, appraisal to find out about individual needs, training and
development needs analysis, etc.

Human resource planning is a key activity for business; as it is very likely that the
business cannot operate without people. Even a business with the owner as the only
employee of the business needs human resources - planning and managing one
employee (yourself) is just simpler (or perhaps harder).

Human resource (HR) management is an important staff function for

business; and the human resources plan needs to be part of the overall
business plan.

Building an employee development plan for each employee is part of the HR

responsibility. What are the employee's strengths and weaknesses? What training is
necessary to improve skills? HR also conducts salary and benefit surveys and builds
basic employee benefits and salaries programs and handles workforce planning and
scheduling (through a workforce coordinator). If it is a one-person business, still
human resource planning for the future should be considered: it is likely that as
business grows, human resource needs will also grow.

We can define human resources vision and mission for our organization: it needs to
be closely aligned to the organization's mission and vision statements. We need to
identify the primary goals of the plan (workforce planning should always be one of
those goals due to the importance of having enough of the right people in the
business).

Here is an example of HR planning of the Top 5 HR goals for my business:

Goal #1: Employees will have a safe and supportive workplace. Every business
needs a safety plan.

Objective: Develop a safety checklist and operate the business to ensure all safety
regulations are met. Reduce workplace injuries to Zero. Involve employees (through
an internal committee or team) in making their environment a safe place to work.
Support health and wellness programs through an optional, additional-cost, benefit
program.
Strategy: The safe and supportive workplace goal will be supported by a company
program to engage employees in individual health practices and improvements and
ensure that their physical work space is appropriate and safe. Provide access to
flexible work programs and work-from-home programs. Ensure the at-work
environment is ergonomically best.
Measures of success: Reduction in injury; reduction in time-off requests; reduction in
absenteeism related to on-the-job injury; getting employees back to work as quickly
as possible - likely through a work accommodation program (e.g. light duties; half
days, etc.); regular safety inspections; regular safety meetings with employees;
regular ergonomic assessments.

Goal #2: To be recognized as a preferred employer.

Objective: There are a number of programs across India, and likely across the globe,
that recognize the "Best Employer" in certain categories (by industry, by number of
employees, etc.). Apply to these programs (as appropriate) and ensure that the
business is structured as a Best Employer business.
Strategy: Recruiting employees will be easier with a 'brand identity' of being a 'best'
or preferred employer. Job applicants will look for the "best" employers. Develop
active recruitment policies that reach out to potential employees.
Measures of success: Ask new hires why they applied, where they heard about, or
saw, the employment opportunity information. Assess the impact of Best Employer
status internally by seeing if internal applicant referrals increase.

Goal #3: To reduce employee turn-over and to increase employee retention.

Objective: Reduce employee turn-over by 35% in year one (this can be done by
retaining good employees and by making better hiring decisions).
Strategy: Reduce employee turn-over and increase retention, through mentorship
programs; through strong new employee orientation programs; recognition
programs; through offering competitive employee compensation programs (within
industry).
Measures of success: Orientation programs must be completed within first 30 days
(measure); mentor feedback; performance evaluations completed on time and
annually (and worded in a positive manner); exit interviews to discuss why the
employee is leaving and then acting on that information; increase number of new
positions filled from posting within the company. Do an annual survey of employees
to assess how they feel about the organization - listen to employees and act on the
key elements of what they have to say (if you don't act, tell them why).
Goal #4: To be a learning organization.

Objective: Build a performance review program to include training and learning

components; track employee development; develop in house training programs -
train employees to be able to train others; ensure that good training is available to all
employees. This objective is particularly important in a business with a changing
marketplace.
Strategy: To develop training learning outcomes for internal training; develop a
knowledge database that employees can easily access; develop budget for training.
Measures of success: Measure trained employees against the learning outcomes
predicted (established); track the usage of the knowledge database (# of hits;
number of pages reviewed, length of time online) - if one page is reviewed often
maybe that subject needs some focused training for all employees; was the training
budget spent?

Goal # 5: Workforce planning

Objective: To forecast professional labor needs for the period. (In other businesses,
this would be expanded to predict skilled and unskilled, full time and part time labor
needs.) In a larger business, a workforce coordinator would handle the planning and
scheduling of employees; in a smaller business, workforce coordination is handled by
the owner or manager.
Strategy: To consider demographics in the workforce plan (older employees may be
looking for reduced work hours or retirement; younger employees may be looking for
quick progression and/or new learning opportunities); identify talent pools (people's
capabilities and cross-capabilities); identify career paths for key employees (all
employees if you have the time); identify best-fit recruiting solutions. Make sure that
progression criteria and program is clearly communicated (perhaps in your employee
handbook.)
Measures of success: Promote on basis of capability - now and in the future: how
successful are the promotions; what is the turnover rate by department; are talent
pools being utilized - if an individual can be used in several areas is he or she being
deployed in several areas?; have career paths been discussed, planned and
communicated with employees (and with their input); are all the positions filled; what
is the open position number; how long does it take to fill a position?

Good human resource planning and management will result in good rapport and
communications between employees and the management. It will also result in
individual employee development plans, low employee turn-over, low absenteeism,
low safety incidents, competitive employee compensation programs (including basic
employee benefits), high morale, good quality output and efficient operations, well
trained employees, and satisfied customers. Salary competitiveness (within the
industry)and basic employee benefits need to be reviewed regularly, likely at least
every two years. The plan needs to identify your hiring and promotion policies, and
employee development plans for improving employee performance.
Human resource planning is a critical element of the business plan. Human
Resources department business plan depends on the needs analysis of the
own workplace. Human Resources department business plan also depends
on learning about and benchmarking industry standards outside of your
organization. But, the fundamental question We need to answer, to reply to
the management or our self is, “What does the workplace need from the HR
function?” Here’s how I’d find the answer. Steps to Develop a Human
Resources Department Business Plan

We can start the Human Resources department business plan by clarifying exactly
what the need is and wants from us and in how much detail. We don’t want to spend
hours and hours developing information or a detailed plan that the boss doesn’t need
or want. That said, for our own clear purpose and direction, our own strategic plan for
your department; this approach will yield great value.

Read through the detailed job descriptions I’ve developed for the HR Director / VP, HR
Generalist, and HR Assistant. Are there functions listed in these job descriptions that
you are not performing that you could perform that would add value within your
organization? We can also use a commercially developed Human Resources
department audit book / program or an occasional free Human Resources department
audit plan list such as this: Audit Program Guide. Take a look at this list, plus add to
the list, the functions that your Human Resources department is already performing
and functions that you know you want to add – or subtract. Minute detail is not
required until you are ready to put together your Human Resources department
business plan when you complete these steps. Meet with your fellow executives to
obtain an assessment of their current satisfaction with your services, additional
services they’d like you to add, and their ideas about how HR can best support your
organization’s mission, vision, and goals. Supply the questions to your key colleagues
in advance of meeting. Inform them that you have distributed the questions in
advance so that they can solicit feedback from their staff, too. If you have effectively
gathered the above internal and external information, you may be able to present the
choices in a rating and ranking format.

We are developing a great deal of internal information about your company’s HR

needs. We might also look at recent journals from professional associations such as
the Society for Human Resource Management. In this case, we can talk with
colleagues in any local associations you attend. Take a look at literature available
such as HR Magazine. The articles from this site are particularly useful for planning
the priorities and scope of the HR department business plan.

Once we have gathered all of this information, or even, just enough - your executives’
priorities may give us extremely clear direction, for example - you can make a plan.
You can see what you are missing in your HR department, what you might expand,
what you need to focus on strategically to build your department’s contribution, and
what you may currently offer that is not needed. From these, prioritize and make a
plan, based on resources and your preferred method of presentation or
accomplishment, of what you can accomplish this year and next. Some solutions may
be HRIS-based needs; others may have to do with HR office offerings; others may
require a strategic change in direction or the addition of a major function. You won’t
know until you study and ask.Now, at last, we can answer question: What is the
business plan for your HR department?

It is to be ensured that the time spend and effort to develop strong human
resource planning that clearly identifies the present and future needs, policies,
gaps, goals and actions. Opportunities and courses for individuals to develop skills,
knowledge and attitudes that help the organisation to achieve its objectives.
Development - the provision of opportunities and courses for individuals to develop
skills, knowledge and attitudes that help themselves to achieve personal objectives.
Training and development needs analysis - an analysis of the opportunities and
experiences that are required for individuals to train and develop in order to meet
organizational and personal objectives. A training and development plan can then be
created to set out how these needs can be addressed in practical steps.
Audi has developed a training and development programme designed for technicians
at the company. Technicians are appraised by their line managers to identify their
personal training and development needs. They then work with professional
consultants on development training activities as well as attending relevant courses
either at the Audi training centre or on external courses. The technicians are able to
use a multimedia based Training Needs Analysis tool that enables them to produce a
Personal Development Plan automatically.

One of the innovative idea to the tyre business is free Mobile Tyre Replacement

Objectives: This should be your short term and long term objectives for the Mobile
Tyre Replacement Business. Mission: we need to identify the main mission for
Mobile Tyre Replacement Business. May be added advantage given to the
customer to retain with the company. Keys to Success: A few bullet points to
briefly describe why the Mobile Tyre Replacement Business will be a success.
We have to first show confidence on our self & our business plan. Company
Ownership Who owns your Mobile Tyre Replacement Business. If it is an old
brand then people will have faith on the same.

Location(s) and Facilities: Address of the business if possible or a rough idea of the
surroundings and the benefits this location will be for the Mobile Tyre
Replacement Business. For this we need to have a Start-up Summary: on this
we need to provide basic details of the capital requirement and how we are
intended to acquire that capital. This also should carry a list of all the start up
capital required before you start trading as well as the amount if any we will
need to loan.

Product Description: We need to describe all the products that we will sell and give
an indication of future products we will sell and the reasons why these will be
sold in the future and not now.

Service Descriptions: We need to describe all the services we will provide and to give
an indication of future services which will be provide and the reasons why
these will be provided in the future and not now.

We need to do a Market Analysis Summary also. Market Segmentation: Here we need

to give the details of who is the target market will. Target Market Segment
Strategy: We also need to explain how our marketing will get new and existing
clients. Market Trends: This needs to explain how in general the direction the
Mobile Tyre Replacement Business is taking. Is it up or down and what are the
reasons for this and can we cater for the existing and new trends? Main
Competitors: We need to keep an eye on who are the main competitors for us.
Need to explain their strengths and weaknesses.

Marketing Strategy: How we will market our Business. Pricing Strategy: What are the
prices and the reasons for our prices? Promotion Strategy: Are you planning a
 grand opening with special discounts on your opening night? Do you need to
give special offers to attract new and existing customers? Competitive Edge:
Need to explain why customers will come to us as compared to someone else.

Web Strategy: The web is becoming ever more important for any business. How
exactly are we going to use this medium. Sales Strategy: This is one of the
most effective strategies to be developed. How are we going to generate
more sales this need to be explained..

We also need to intimate about Management Team, Organizational Structure, Which

people are in charge of which departments, Personnel Plan

SWOT Analysis

This is a summary of the business's most important strengths, weaknesses,

opportunities and threats.

Strengths of the Business

Excellent quality product "Which means that" Adds to reputation.
Good management skills "Which means that" Well run business
Good ability to extract information "Which means that" Can control the business.-

Weaknesses of the Business

New Player "Which means that" Credibility problem may affect initial sales
Lack of systems "Which means that" The company needs to develop systemized
operational & sales techniques or sacrifice profits

Opportunities in the Marketplace

Add-on products such as "Which means that" A potentially enormous market for the
Mobile Tyre Replacement Business to tap into.
Growing market segments "Which means that" our Mobile Tyre Replacement
Business should target these segments.

Threats in the Marketplace

Increasing supplier prices: "Which means that" Resulting in reduced profitability.
Declining size of the segment "Which means that" Need to focus on growing
segments to spread the company's portfolio

Other Objectives (Goals): To not exceed a marketing budget of Rs….. , to not exceed
a payroll budget of Rs... , to not exceed a general overhead budget of Rs…

Follow up Enquiries: Contact all enquirers monthly and determine if they have
purchased from a competitor and, if so, why.

Existing Customers: Follow up all new customers two weeks after they purchase to
ensure they are satisfied with the product.

Sales Promotion: Develop an ongoing sales promotion to target existing customers.

Wages: Pay all wages on a monthly basis instead of weekly.
New Equipment: Organize funding of Rs.xxxxxxx for expenditure on new
equipment.
Inventory: Improve the number of stock turns to xxxxx a year.
HUMAN RESOURCE STRATEGIES: Organizational, Draw organizational chart, Develop
incentive scheme related to job requirements.
Policies and procedures: Develop policies and procedures manual.
Employ or re-deploy staff: Employ one specialist salesperson. Employ one
marketing assistant. Employ one accounts receivable person.
Training: Carry out training needs analysis.

Managing the business can be hard enough without having conflict with employees
and falling foul of employment laws. Incase we should follow the given advices
for avoiding the most common pitfalls:

Keep the staff records up to date. An employment tribunal can automatically rule
against an employer if staff records have not been kept or they are
inaccurate. Make sure that the store copies of all relevant documents,
contracts, references, licences and certificates. By law you are required to
provide employees with documents such as employment contracts so have a
process for issuing them and keep copies. Record holidays and sicknesses.
Many small businesses do not know how much time-off has been taken by
staff. This can lead to disputes or loss of productivity if adequate cover cannot
be arranged. Implement an appraisal system that is used for all your staff. You
need to tell them what is expected and of them and how they are performing.
You are paying for their productivity so ensure you have a process for
improving performance. Your staff can be your most valuable resource. Create
a development plan for each member of staff and work with them to ensure
they get the right resources and training to enable them to do their jobs
better. Record and store all the basic information for your staff. Addresses,
emergency contact details and any important medical information. Make sure
any changes are updated in your records. Keep your confidential information
secure. Lock away sensitive documents or better still store information on a
computer with password protection. Make sure your pay reviews are fair and
reasonable. Your staff may not always agree with or like their pay reviews but
you need to show them that are being treated fairly and why they are paid
their level of salary. Deal with poor performers or those who consistently
break contractual terms. You need a formal procedure for addressing issues.
Make sure any action is documented and recorded in your staff records. Don't
make the same mistake twice. Your staff records should help you to manage
better in the future and avoid repeating problems. If a member of staff leaves
you should know if you would be prepared to re-hire them.

The executive summary for this business should be written last. It should include the
main people involved in your Mobile Tyre Replacement Business and their
experience related to the Mobile Tyre Replacement Business. There should be
a brief description of what the Mobile Tyre Replacement Business entails. Your
Mobile Tyre Replacement Business should include some brief financial
statements such as loans you will require and profit/loss statements for the
first 3 years.

Managing a successful business involves acquiring, developing and maintaining a

wide range of resources. These resources include materials, buildings, land,
equipment, technology and, crucially, people. Any organization needs good
employees who have the right skills to achieve the company’s aims and objectives.

Human resource management is the business function that focuses on the people
aspects of an organization. It ensures the efficient management of people in the
business. It is responsible for ensuring that an organization has the right people to
deliver its overall business.

Importantly, one must also ensure that it retains its best people. It is much more cost
effective to retain trained and highly skilled staff than recruit and train up new
people. The owner should seek to retain people by offering a mix of financial and
non-financial benefits. As well as good pay and other beneficial scheme. The
company provides employees the opportunity & offers a great place to work and
high-class training. As in this case two of the drivers resigned, and then he should go
for retaining them if they are important & reliable staff, and he should concentrate on
expanding the tyre business because he is in this business for so many years & might
have created the brand, goodwill, loyalty of the customer & should not lose that.