Marks and Spencers internal and external factors
This is when an organisation looks at the different ways to boost the organisation markets, products or their services. The organisation may need to make certain adjustments such as letting go of staff or recruiting staff or new products and services. Organisations will have to change certain things within their organisation in order to expand their range of products. There are certain periods within the business year where employees will be needed such as the Christmas time when it gets busy; companies tend to recruit employees on a temporary basis. This helps an organisation to raise business sales.
Human resource planning helps Marks and Spencer’s in this situation because they will need to avoid chaos and inefficiency. Marks and Spencer’s have a variety of organisational needs due to the economical status at the present time. There are a variety of ways they can change their organisation but the main is increasing their clothing range because it is very popular with the public. If a new range is introduced; the staff of the store will need to be knowledgeable about the products in order to be able to response to the customers. This then becomes a source of organisational needs.
Organisations will need staff with different skills that are suitable for the different types of technologies within the organisation. Organisations keep a record of staff’s age so at the nearer time of retirement; they then decide what they will do. The organisation keeps a set time in order to find someone suitable enough to take on the role of the employee who is leaving the organisation. Marks and Spencer’s would look at their employees work profiles in order to know in advance when their retirement age is coming up so they can look for a more suitable candidate.
Skills requirements This is when the organisation is changing the types of skills they need. Over a period of time, different skills are needed within an organisation so if staffs do not have the right skills; they are trained to be suitable for doing the job needed. The organisation makes a profile on their employees in order to look at the skills they have and the skills they will need training on. Organisations also employ new recruits if they have the specific skills the organisation needs.
Marks and Spencer’s would have to draw up a skills set in order to pick the right candidate for their organisation. Marks and Spencer’s require their staff to have good customer service. If this is not done to the organisations standards; the company are happy to provide training and if after the training the customer service has not improved, the organisation is able to recruit new staff that have good customer service. Workforce profiles This is when the organisation looks and monitors the employees working for them. They keep a profile of their age, gender, ethnicity and ability.
By having a profile made for each employee, the organisation can monitor and plan for new recruits if the time is near for retirement for an employee. By having a profile on each employee, it shows that the organisation is recruiting fairly and not on the basis of a person’s age. This comes under the Employment Equality Regulations 2006. Marks and Spencer’s keep a profile on their employees in order to contact them about a change in rota if needed. Also; to keep an eye on their skills so that the organisation can look at the different skills which are needed for the business such as communication skills.
On the workforce profile, it is also stated some vital information about the employee which is important for the organisation so they know more about the employees which work for them. The workforce profile will specify what each employee will have undertaken. External factors Political Government policy – this is when there are pre prepared rules and regulations that have been put into place for many years so that organisations are treating their employees fairly as well as abiding by the law. Over a period of time, the government start to introduce different policies in order to make sure that they improve the economy.
Marks and Spencer’s have to follow regulations set such as treating everyone fairly when they are recruiting so the organisation cannot base their decision on the age or gender of the candidate. This comes under the Employment Equality Regulations 2006. The national minimum wage is there making sure that employers pay their workers the national minimum wage. The National Minimum Wage Act will also have to be abided by Marks and Spencer’s in order to make sure that Marks and Spencer’s are paying their employees the right wage; this would then make employees feel happy working within the organisation.
Labour Market Competition – This is when companies compete with one another in making sure they have the best employees offering different skills and qualities. Some organisations offer their employees with higher wages so employees feel happy working within the organisation. Marks and Spencer’s would compete with their competitors such as House of Fraser in order to make sure they are getting the best possible staff. Marks and Spencer’s would compete for employees who have specialist’s skills.
Therefore offering similar if not better working conditions and salary would be important. Economical Supply of labour – The supply of labour in the UK has dropped significantly because in local areas, there is a change which has occurred. Within the UK, there are a lot of individuals who have skills for a certain category. This means that if there is a retail position for a job going and the individual has skills which are for manufacturing; the organisation will not take on this individual due to the basis of the skills they have.
By addressing these issues, both businesses and the government will have to make sure the right training is to be given in order to give individuals the right training needed to apply for jobs. If the right individuals are not found by organisations because of the skills they have, the government as well as employers will have to invest in making sure that the training is given to these individuals. Marks and Spencer’s would have to invest alongside the government in training schemes for individuals if they cannot find employees for their organisation.
Marks and Spencer’s would help to find employees which are right for their company who can do the best possible job. Labour costs There are two types of labour costs and these are capital intensive which means that businesses look to invest more money into machinery whereas the labour intensive looks at recruiting more staff to be able to function. It is also stated by law under the Minimum Wage Act 1998 which makes sure that all employers must pay their employees the national minimum wage. They can however pay above this but cannot pay less than the average wage.
Human resource planning includes the allowances for the increase of minimum wage which takes place every year. This means that businesses look at the staff over the year. Marks and Spencer’s would have to make sure that they are paying all of their employees no less than the national minimum wage and if this is not done so, they can be prosecuted. Also, Marks and Spencer’s must make sure that their Human Resource team work together looking at the staff’s performance and increase their salary accordingly.
The organisation would have to monitor labour costs so that it does not go out of control, if necessary, cut in labour costs will be made such as cutting down staff. Changing nature of work – This is when the level of skills needed each year will change and if employees do not have the skills needed each year, then businesses will have to retrain existing staff, which is cheaper than trying to recruit as this takes time and money to find a candidate which would be more suitable for the role.
Employees should be aware of this change and make sure that they have the right skills needed for the organisation. The technology has changed so much over the years that employers are allowing their employees to work from home using a laptop or PC. This is known as tele – working. Marks and Spencer’s would have to look at the different types of skills which are needed for their organisation yearly and try and train their employees for these skills.
Marks and Spencer’s will have to either recruit new staff or get rid of their old staff in order to keep up with the ongoing trends such as more part time staff, job share, casual work and working from home is also taking place. Social Workforce skills – This is when an organisation can look at the different types of skills that are available for them in the local area. This is helpful for an organisation because it allows them to see who would be a likely candidate for their organisation.
Organisations need to consider their future needs and choose the best candidate with the right skills for their organisation. This would be important if the organisation is lacking certain skills; the organisation would then have to offer better working conditions in order to attract the right people. Sometimes organisations cannot find a suitable candidate who has the right skills so the organisation would then have to look abroad. Marks and Spencer’s would be able to look at the different skills people have in the local area, this would help them to get the right person for the job.
If Marks and Spencer’s are not able to find anyone suitable in the local area, they would go regional then national and then they would then start looking abroad for a suitable candidate who has the right skills needed. Technological changes Training – Organisations would have to give their employees the right training keeping up with any new technology introduced to the company. Staff within an organisation needs to have the right training in order to be able to do their job to the best of their ability.
Marks and Spencer’s would give their staff training if they did not know how to use new technology properly. This is to ensure that the staff of Marks and Spencer’s are able to do their job properly without having any problems. Up to date technology – Organisations would have to update their technology regularly to make sure that they have the latest software to perform better within the company. Organisations update their technology regularly to ensure they are up to date with technology and are able to do their work faster and more effective.
Marks and Spencer’s would update their technology in order to make sure that they are able to perform better and faster with new technology instead of old. Marks and Spencer’s alongside having new technology; they would give training to their staff to make sure they are able to perform using the new technology. Cutting staff – Marks and Spencer’s need to ensure that the required skills, knowledge remain in the company so that the necessary tasks can be completed to the Marks and Spencer’s standard. Careful HR planning is needed.
Recruiting seasonal staff – Effective and efficient that is non discriminative recruitment and selection process exists to save time and money by selecting the right employees first time round Marks and Spencer’s is labour intensive therefore their HR is the most important resource without good HR Marks and Spencer’s would not exist. Conclusion Within this assignment, I have looked at the internal and external factors which are needed to be considered in order to plan the Human Resource requirements of an organisation. I have also included the PEST analysis within my assignment which was an external factor for a human resource department.