P1 Describe the internal and external factors to consider when planning the human resource

Human Resource
Planning

Table of Contents
INTRODUCTION...........................................................................................................................3
P1- Describe the internal and external factors to consider when planning the human resources
requirements of an organization..................................................................................................3
P2- Describe how the skills that employees require to carry out jobs in an organisation are
identified.....................................................................................................................................5
P3- Outline how an organisation motivates its employees.........................................................6
P4- Explain how organizations obtain the cooperation of their employees..............................10
P5- Explain how employee performance is measured and managed........................................11
M2- Compare the use of motivational theories in an organisation...........................................12
M3- Explain how the results from measuring and managing performance .............................12
D1- Suggest, with justification, ways of enhancing motivation in an organisational setting...12
D2- Assess the essential of evaluating and managing employee performance at work............13
CONCLUSIONS.......................................................................................................................13
REFERENCES................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
It is of utmost importance for a firm to have abundant and right people, at right job
profile, at right time for smoothly carrying out its business operations. Human resources
planning can be described as a procedure of identifying manpower requirements of a firm. It
involves intensive study for analysing requirements in terms of quantity i.e. number of people
and its quality i.e. skill and capabilities required for carrying out a particular job. ASDA is a
British retail supermarket brand that was established in 1965, with its headquarters in Leeds,
West Yorkshire (Alagaraja, 2013). This assignment will deal with providing internal and external
required by a firm for its s human resources planning along with identifying its employees skills
requirements. Moreover it will provide a synopsis of theories of motivation that is adopted by
manger to motivate and obtain cooperation of its team.
P1- Describe the internal and external factors to consider when planning the human resources
requirements of an organization
For every organization, its employees forms a cornerstone for attain success as they
serves as a source of creative ideas, skills and knowledge utilizing which a company achieves its
objectives. Thus , efficient and dynamic human resources planning is considered to be center of
focus for any firm as it strives to retain its existing proficient employees, recruit potential ones,
minimize their grievances and enhance their productivity.
ASDA is the second largest grocery retail stores that deals in wide variety of product line and
also provides financial and mobile phone provider services besides its core supermarket
products. It has a team of around 1,60,000 proficient employees that manages its operations in
around 365 stores across the globe (Bamberger, Meshoulam and Biron, 2014). Thus to have a
dedicated, efficient and adequate number of workforce ASDA scan various internal and external
factors in reference to plan out for its human resource. Mentioned below are certain internal and
external factors :
Internal Factors
These are those factors that are presented within ASDA and thus directly influences its human
resource planning process. It comprises following factors:
Organizational needs: An analysis of organizational needs assists firms to make a
comparison of existing strength in ASDA with its future competencies requirements that are
necessary to meet its objectives. For instance, in case ASDA wants to start a new product line

then company will need to plan out the future manpower requirement which involves hiring new
employees for carrying out various functions and to achieve the new and previously set targets
with full proficiency, profitability and within specific time line (Bloom and Van Reenen, 2014).
Skill Requirements: Merely having right number of people does not aid company to
achieve its objectives as employees are required to posses certain skills and knowledge to
undertake their assigned job responsibilities. Thus, skill requirement assessment helps ASDA to
know level of knowledge,capabilities and skills posses by its existing employees and what are
the expected level of competencies that is essential for them to achieve for successfully carrying
out their future job. This comparison between current and future skill requirements helps ASDA
to identifies the key areas of lacking of its employees and in taking decisions regarding
removal of these gaps by either designing a proper training program or by recruiting new
employees with specific skills (Brewster and Hegewisch, 2017).
Workforce Profile : It involves a detailed information regarding the profile of all
employees that are working in an organization. ASDA keeps records of its employees profile
which includes information related to their age, gender, abilities, ethnicity etc that is analyzed by
firm while taking various decisions related to retirement, new hiring etc.
External factors
These are the factors that are presented outside ASDA but have a major impact on its human
resource planning.
Supply of labor : For smoothly carrying out the manufacturing and production process, it
is essential for a firm to have a regular supply of cheap labor in the areas company is conducting
its operations. Thus; before taking decision related to opening its new venture; ASDA undertakes
a detailed study about its present labor supply, type of labor available in specific location, recent
average working hour trends, government policies and legislation related to Labor laws and
current labor and wage rates prevailing at local, national and international scale (Brewster,
Chung and Sparrow, 2011). This helps firm to take necessary steps for recruiting new labor force
in case company has shortage or to lay off excessive worker supply which is adding on to
ASDA 's expenses.
Labor market competition: It relates prevailing demand and supply rate of Labor force.
In case, labor market competition is low availability of workers will be abundance. On the other
hand, in case of competitive labour market condition it might be hard for company to have

required no of workers. Thus, during human resources planning , a manger has to analysis the
present and future situations in regard to availability of its workforce so as to take decisions like
salary hike for a particular position in case of shortage of candidates who are having job
specific proficiency.
P2- Describe how the skills that employees require to carry out jobs in an organisation are
identified
Employees forms the backbone of any firm crucial for its sustainability and long term growth.
Thus , it is of utmost importance for a firm to hire most proficient and competitive employees
whose skills and knowledge could reap benefits for the company. Business deals in a dynamic
environment which requires continuous mortification in strategies, policies, procedures and
technologies adopted by a firm. Thus in such scenarios present skills, knowledge and capabilities
that an employee posses might become obsolete or less useful for company to attain maximum
returns (Jackson and et. al., 2011). Therefore, prior to making plan about is human resource
requirement ASDA conducts a need assessment analysis for its existing as well as about to hire
employees. This benefits company in knowing the level of core competencies needed in terms of
skills and knowledge that is essential for carrying out current and future job requirements.
Mentioned below are certain techniques that are adopted by ASDA to identify required skills set
for its employees:
 Skills Acquisition: Skill acquisition implies acquiring new skills by an employee
through various training and development conducted by mangers of ASDA. It is of
critical importance for a firm to monitor the performance of its workforce in order to
have idea about their areas of lacking and skill requirements. This is to have two way
beneficiary effect both for employees and firm. It is because for a firm it will have a
ready availability of proficient individuals who can replace a leaving employee's position
(Lin, 2011). Thus it will bear profits for firm by reducing its time, efforts, money
required from recruiting from external sources. As for employee, taking proper training
and gathering knowledge will make him more professional thereby increasing his market
value.
 Skills Audit: It is process of finding out the gaps between the actual and expected level of
skills posses by employees in ASDA. By analysing this gap company plans out most
appropriate training and development programs to induce required level of knowledge

and skills in its existing and newly recruited employees to make them able to carry out
their assigned tasks effectively, with higher work performance level (Marchington and et.
al., 2016).
 Impact of Technology: With the fast changing technology and emerging digitalization a
firm constantly faces massive changes in its process, strategies and techniques which it
utilizes in its various business operations. Thus, while planning about its human resource
requirements ASDA scans the skills needed by its potential employees so that they can
easy adopt, handle and cope up with existing technology adopted by a firm.
P3- Outline how an organisation motivates its employees
For every company its employees forms the most valuable resources. It is because in this
dynamic business environment where there is immense competition in market due to presence
various factors like number of business rivals, frequently changing needs and aspirations of
customers, government laws and regulation etc. it is a dedicated, loyal and efficient team that
serves a core competency for a firm tom attain higher growth and success (Mathis and Jackson,
2011). As there is no substitute for a hard working, professional and efficient employee a
company pays special attention in retaining its present employees and attracting potential ones
by formulating various strategies, policies and programs keeping them in centre of focus. ASDA
for instance conducts various employee benefit and compensation programs to encourage its
employee so that they can work with zeal giving their best efforts for achieving firms objectives
within specific time. For encouraging its employees ASDA make use of mentioned below two
technique:
Motivational Theories
ASDA applies various motivational theories to motivate its employees. Two most prominent
ones are describes below:
Maslow's Hierarchy of Needs Theory
This theory explained in form of pyramid states that employees are motivated to fulfil their needs
and certain needs take precedence over others. And once one level is achieved it is the next level
what encourages them to work harder. The model contains the following five needs :
 Physiological needs: It relates to the basic necessities of life for a person( food, clothing
and shelter) that is requisite for his survival. A person needs to first fulfil these

requirements before moving to any other level. In context of firm, it is the simple
facilities like clean drinking water, good working environment and snacks and tea forms
psychological needs for an employee that a firm is required to fulfil in order to motivate
them to do work (McGregor and Simon, 2012).
 Safety Needs: These needs are related to health and safety requirements of an employee
that is requisite for an employer to address as it forms major motivating factor for them
to work with zeal. An employer can satisfy these needs of its workforce by making sure
that the working environment is hazard free. Also employees requires to have job
security.
 Social Needs : This level deals with a person need to be associated with others, his
requirements to have friends , to be loved and accepted in society. A manger can address
this needs of its staff by creating a work environment that harbours opportunities for
participating and interacting with each others. In addition to it, manger can also take
efforts like celebrating staff birthdays, employee anniversaries etc that will increase
mutual trust, respect and cooperation among them as well as with management.
 Esteem needs : This level of need is associated with employees desires to be
acknowledged, recognized and praised for its efforts that he puts in achieving firms
objectives and for its achievements. To fulfil this aspiration of its employee manager
should conduct events like felicitation ceremony or should recognize and praise the
achievements of its employees who are high on performance level in front of whole staff
during its annual meetings. Other motivating factors could be promotion, increments
etc. This serves as a biggest motivator for all employees to give their best efforts for
achieving their assigned targets(Mitchell, Obeidat and Bray, 2013) .
 Self Actualization: This needs is purely related to an individual desire to reach to his
maximum potential. A manger plays a key role in satisfying this desire of its employees
as by conducting need assessment of its employees he supports an individual in setting
targets , aligning its personal goals with firms objectives and encourages him to work in
one direction towards attaining those aims within specific time limit with higher
performance and efficiency

Illustration 1: Maslow's Hierarchy of Needs Theory
Source : (Maslow's Hierarchy of Needs Theory, 2018)
Reward Systems
Another technique that is used by ASDA for encouraging its employees is developing an
efficient reward system in its company. The HR manger formulates various polices and programs
to recognize and appreciate the contribution of its employees for the effort which they have put
in giving their services to an enterprise. ASDA besides using non monetary sources like
promotion, appreciation etc. also make use of certain monetary factors for encouraging its
employees:
Pay (Scaling): Pay forms to be one of the most effective factor that induces an
employees performance and motivates him to put more efforts and hard work into his
work. ASDA under its reward system, provides a pay increment to its star performing
employees to motivate them and other staff members to keep on putting efforts and work
with zeal and best of their capabilities to accomplish their assigned tasks.

Performance Related Pay: It is yet another type of schemes for inducing employee to be
enthusiastic in taking initiatives for taking higher challenges and giving higher
performance. Under this technique, an employee is given higher salary for giving
outstanding performance and vice versa (Pieper, 2012). This acts a a motivator for
employees to work harder to earn more incentives and hike in salary.
P4- Explain how organizations obtain the cooperation of their employees
Besides applying motivational theories and reward system ASDA make use of various other
methods for ensuring that each of its employees fulfil the expected performance criteria that is
requisite to attain higher profits and maximum returns. ASDA applies the mentioned below
motivational techniques to gain cooperation of its employees:
Employment involvement technique:
To encourage participation of its employees ASDA under its employment involvement
techniques uses a series of team building activities, formulate various policies and rules that
encourages its workforce to work with coordination, cooperation with each other and to ignore
each others flaws . Certain techniques that are included under this are:
Work group: Under work group format a company divides its workforce into smaller groups
and assign them certain tasks that are to be undertaken by them . These groups helps a firm in
providing valuable information about its key areas of strength, changes that are to be
implemented in its organizational structure, desired and actual level of quality standards that a
firm is utilizing in its process and so on. This benefits company as it get access to valuable
information related to companies key areas of strength, changes that are requisite for it
implement for achieving sustainability and growth which ultimately helots in increasing its
internal structure and efficiency (Renwick, Redman and Maguire 2013)
Open Communications: It refers to system that allows all employees to directly talk to
management and discuss their issues, concerns and give opinions to them. It basically support
two way communication between management and its employees which help in getting viable
solutions in case of solving a business related problem.
P5- Explain how employee performance is measured and managed
Mentioned below are two ways in which company can measure and manage the performance of
its employees.

Measurement of Performance
There are several ways in which companies can measure the performance of its employees, some
of which include:
 Goal Theory : Under this theory, a manger with its employees discuss and set various
goals that an employee is expected to achieve within specific time frame. The targets that
are established by a manger is of high level so that it is challenging for employees to
accomplish them. This reveals true performance that is given by each employee which
helps firm to take various decisions to enhance performance level of each individuals.
Management of performance
Similar to the measurement of performance, there are several ways in which companies can
manage performance including:
 Mentoring
A mentor is a person who guides and give directions to its fellow colleagues or mentee by
providing them with requisite knowledge and skills. Mentor encourages its people to achieve
their targets by giving them advice to complete a task in most appropriate manner. Monitoring: In this process mangers records, monitors and analyses performance level
of each of its employee and find out the gaps between their expected and actual level of
performance. Manger there after communicate these lacking to particular employees and
tell them ways to overcome those weakness.
M1- Explain why human resource planning is important to an organisation
Human resource planning is more essential and important for the company in order to rise
workforce turnover. Human resource planning is also beneficial for the ASDA to maximise their
sales as well as achieve long term goals and objectives within predetermined period of time.
There are different another benefits of such plaining to the company including: good verbal
communication, effective teamwork, commercial awareness, analysing and investigating
employees needs, planing and organising useful resource for the organisation. Thus, it support
the enterprise to maintain their strong position at marketplace.

M2- Compare the use of motivational theories in an organisation
There are different kinds of theories which are applied by the company with aim to
motivate their all workforce. Some theories are determined as below:
Taylor's Theory: It is used by the company to motivate their all employees by providing
accurate amount of the money.
Mayo's Theory: As per this theory that says attributed the most positive improvements or
enhancement in motivation to modification relating to prospect such as maximised and better
communication.
Maslow's Theory: It is another important theory which complete basic needs and wants
of the customers in a systematic manner. It support the organisation to maximise their
performance and profitability.
Comparison: Main motive behind applying such theory is to maximise motivation and
performance level of employees. All these theories are effective and useful for the organisation
to maintain employees turnover easily.
M3- Explain how the results from measuring and managing performance
There are different tools which are follows by the ASDA in order to measure employees
performance easily. In this business use Goal Theory, SMART Targets and Benchmarking. All
these are highly support the organisation to easily evaluate performance and motivation level of
employees. As per above determined measurement tools support an enterprise to achieve better
outcomes as well as gain competitive advantages easily. Such all these are important and
effective part for the success and development of enterprise in an effective and efficient manner.
D1- Suggest, with justification, ways of enhancing motivation in an organisational setting
Company apply different kinds of motivation theory which support the business to reduce
employees turnover as well as attain better outcomes. It is also essential to increase their turnover
and sales within predetermined time period. Therefore, it support the organisation to accomplish
their long term and preset objectives and targets easily.
D2- Assess the essential of evaluating and managing employee performance at work
Employees performance is more important and essential for the development and success
of organisation in limited time period. In this business manager has different role to provide fair

salary, compensation and many other advantages. All these are highly essential and significant
for the ASDA to maintain better and strong position at workplace.
CONCLUSIONS
The project undertaken concludes that a firm is required to consider both internal as well as
external factors while plantain out for its human resource requirements. Management to gain
cooperation and encourage its employees applies various theories.

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