Human resource planning

 

Human resource planning 

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Executive Summary

The report focuses on the Ford Motor industry in Australia, which is one of the manufacturing sectors that have become successful in the global market. It is an American motorcar company founded by Henry Ford and it is best known in car manufacturing and designing of passenger vehicles. It is located in Geelong near Victoria and South Australia. The report provides diverse factors in Ford Motor industry’s internal environments that one considers when carrying out human resource planning and job design functions including resources, capabilities and management practices. In addition, it talks about the external environment the implication, which they have on Human resource planning processes in the next five years in different ways. It focuses on diverse factors in Ford Motor industry’s external environments that one considers when carrying out human resource planning and job design functions. The factors include economic, physical and technology environmental factors and their implications on the industry. The conclusion gives a brief summary of the internal and external environmental factors. Lastly, it gives a recommendation on what should be done in order to help the Ford Motor industry in manufacturing lower emission vehicles in the future. 

 

Table of Contents

  1. Executive Summary———————————————————————————-1
  2. Table of contents————————————————————————————-2
  3. Introduction——————————————————————————————-3

4. Discussion

4.1Internal environment factors——————————————————————–3

4.2 Implications of internal factors on HR planning processes——————————–4

4.3 External environment factors —————————————————————–5

4.4 Implications of internal factors on HR planning processes——————————-6

  1. Conclusions——————————————————————————————-7

6.   Recommendations————————————————————————————7

7.  Reference List—————————————————————————————–9

 

 

1.0 Introduction

Ford Motor industry in Australia is one of the manufacturing sectors that have become successful in the global market. It is an American motorcar company, which was founded by Henry Ford in 1903. It is located in Geelong near Victoria and South Australia. It is best known in car manufacturing and designing of passenger vehicles. It has been the major player in the automotive industry for many years in Australia (Park, Erwin and Knapp, 2001 pp 787). It dates back in 1904 but it officially became a Ford nation in 1925. This industry is supported by the supply chain with the capacity of designing and manufacturing full range of vehicle parts (Snell and Bohlander, 2010 pp 27). Although sales dropped considerably, they struggled to be successful through lowering prices to a reasonable price in order to gain market globally. There are more than two hundred automobile component manufactures and most of them are highly internalized. The industry has sophisticated production capacity in diverse parts such as engines, panels, clutch systems, air conditions and many other components. However, the internal and external environmental factors are considered in human resource planning and job designing because they have implications on the business environment.

2. 0 Discussion

2.1 Internal environment factors

There are diverse factors in Ford Motor company’s internal environments that one considers when carrying out human resource planning and job design functions. First, resources are one of the internal factors considered in planning and in job designing. Resources are evaluated in different ways including employees’ capabilities, product portfolio analysis, existing overall brand and the relative cost of the products (Arnold and Pulich, 2007 pp. 26). When all these resources are evaluated, it is easier for managers to plan and determine the requirements needed to support the industry in terms of growth (Gallagher, 2000 pp 62).

Secondly, management is another internal factor that should be taken into consideration in human resource planning and job designing. Many industries perform poorly because of poor management thus management of the industrial products and the resources needs to be evaluated. Lastly, capabilities are another internal factor that should be considered into consideration. Managers should understand that resources are not productive on their own. Thus, capabilities are evaluated through use of functional classification approach. This approach identifies organizational capabilities in relation to each of the principal function areas (Etoundi, Ndjodo, Monessa and Zobo, 2006 pp 611).

2.2 Implication of internal factors on HR planning processes

Internal factors will have diverse implications on human resource planning processes in the next five years. For instance, resources will have an effect on the overall performance of the company. This is because some resources especially the intangible ones are hard to evaluate but they may become more significant over time since they are main source of competitive advantage. Resources such as employee’s capabilities and product qualities are among resources of the company and this determines the performance of the industry (Florjancic and Novak, 2009 pp 12). Another resource that will be impacted is capabilities. Capability in financial management and expertise in strategic control will be affected in case the managers will not evaluate these capabilities and plan a head (Deakin University, 2010 pp 45).

Management is another internal factor and this will be affected in the next five years because the study report indicates that the Ford Motor automation industry is not showing a better improvement. This is because of increased petrol prices. The Ford motor vehicle manufacturer seems to avoid shifting consumer preferences an indication of poor management. Oliver (2009) reveals that the Australia’ automotive industry is vanishing due to poor management. However, the federal government is trying to maintain capacity through investing on the company and encouraging more research on this industry (Price, 2000 pp 124).

2.3 External environment factors

There are diverse factors in Ford Motor automotive industry’s external environments that one considers when carrying out human resource planning and job design functions. First, economic factors such as interest rates, inflation, disposable incomes and energy availability can be taken into consideration. Economic conditions often dictate whether the industry will hire or lay off their workers (Reddy, 2005 pp. 211). hey are critical determinants of economic development and they always influence management of human resource in general. When carrying out human resource plans in automotive industry and job designing, it is crucial to consider the economic factors because these may hinder the performance of the business if not well evaluated (Chermack and Swanson, 2008 pp 134).

Secondly, technological factors can be taken into consideration especially when designing job functions. We live in an extremely competitive age whereby everything done requires use of technology. Technology is vital especially in Ford Motor automotive industry because it is only through technological innovations that this industry can develop new products and services (Guinness, Martin and Nagle, 2009 pp 122). In addition, the use of technology will help them to improve on the existing products thus becoming competitive in the global market. In addition, physical elements especially physical characteristic of the location in which this automation industry is located may hider human resource planning process (Doving and Nordhaug, 2010 pp 300). The living costs vary from one location to another thus may create a significant impact on the compensation workers will expect. Geographic shifts in population may create a change on demand for good s and services and supply of employees in the labor market (Open University, Storey, Salaman, Thomson, 2009 pp 167).

2.4 Implication of external factors on HR planning processes

The external environment exists outside the industry and they will have an implication on Human resource planning processes in the next five years in different ways. First, advanced technology will affect many employees because of the skills needed to perform the task. The technology advancement requires skilled labor to operate the machines thus the semi-skilled labor will be replaced (Cooney, 2010 pp 400). In addition, there will be a reduction in the number of jobs because machines will replace human labor since they perform a specific task within a short period. Technology provides a basis for attaining the productivity and quality needs of the organization. For instance, advancement in computer technology has enabled automotive industry in Australia to take advantage of information explosion. Due to use of computer technology, the industry is now able to keep records properly, store information and control complex equipment. This will lead to better performance in the next five years and increased productivity (Malone et al, 2011 pp 57).

Economic and physical elements of the external environments will have implications on human resource planning process. Economic elements will have an implication in the next five years on human resource planning process and job designing because they have a profound influence on the business (Reddy, 2005 pp 46). For instance, economic recession will limit operations in Ford Motor automotive industry and this will affect the employees and the entire industry. Unemployment will result due to economic recession thus affecting the performance of the industry (Bhattachary, 2004 pp. 23). On the other hand, physical elements will have an effect on the automotive industry because this organization will pay attention to geographical areas where they will recruit skilled workers (Marsden, Kelly and Snell, 2006 pp 27). This will alter the demand for supply of workers in the local job market.

4. Conclusions

Ford Motor Company in Australia is one of the manufacturing sectors that have become successful in the global market. There are diverse factors in Ford Motor automotive industry’s internal environments that one considers when carrying out human resource planning and job design functions including resources, capabilities and management. These major internal environmental factors determine the performance of the industry. In addition, the external factors such as economic, technology and physical environmental factors will have an implication on the automotive industry. Thus, it is recommended that understanding and anticipating the environmental factors is crucial. Moreover, responding to those environmental factors will enable the automotive industry to perform better thus increasing its profitability.

5. Recommendations

The Ford Motor Company cannot change or influence the environmental factors but they can have fair control over the environmental factors on its performance. Therefore, the following recommendations are vital when analyzing the internal and external environments of an automotive industry within the context of human resource planning. First, responding widely to the environmental factor and taking actions. This can be done through formulating policies that should govern employees in the industry. Secondly, understanding and anticipating the environmental factors is vital because it will enable the industry to overcome economic crisis and associated problems within the industry.

The government should play the key role in establishment of a viable automotive industry. This can be done through implementing policies with the aim f assign the industry to operate efficiently in both domestic and international markets. In addition, the government should sponsor the industry to carry out research on product production in order to enable them produce high quality products that are highly competitive in the global market. Nevertheless, the federal government should build innovative responses to overcome global crisis and encourage further research to help the industry to adapt to the changing environment. Lastly, the government should invest more on this sector and support them with funds to reposition the investments of the industry. This will help them in manufacturing lower emission vehicles in the future.

 

Reference List

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Cooney, R. (2010). Workplace training in a deregulated training system: Experiences from

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