Factors of Planning Human Resource Requirements of an Organisation

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Another organisational change that Ford is current experiencing is the closure of three Ford plants in Europe due to a decrease in demand in European markets. Ford has lost a lot of money in Europe in recent years- $1.75 billion in 2012, $1.6 billion in 2013, and $619 million in 2014. Protracted recessions in key European nations have kept new-vehicle sales well below what is considered normal for Ford, and there are too many auto factories in Europe for the level of sales to profitably support. The result- aggressive discounting, crushed profit margins, and big losses. In fall 2012, Mulally responded with an aggressive restructuring plan for Ford Europe that closely followed the model Ford employed in North America. Ford closed 2 UK factories back in 2014 and is set to close a big assembly plant in Belgium next month. On the product front, Ford is tapping its global product portfolio to bring 25 new or significantly refreshed models (since 2012) to European dealers by the end of next year. And retail sales have risen in a tough market, as Ford's moves with dealers have begun to pay off. So what does this mean for Ford HRM? Firstly due to the closure of these factories, a large amount of workers are now redundant. To officially close these factories and dissolve these jobs, Ford HRM must first give the Union three months’ notice so that these now redundant workers can be accommodated for. Prior to the closure of the factories, Ford HRM must communicate with their workers of this closure and if necessary offer consolation packages to avoid bad publicity. Some workers may be relocated if they are valuable assets to the business and may be promoted. For those who cannot be relocated, Ford may insist that they are the first people who they will contact when new work arrives.

http://www.fool.com/investing/general/2014/12/15/3-reasons-ford-motor-companys-stock-could-rise.aspx

Skill Requirements

Skills are the things that an individual learns that enable them to perform certain tasks. Job skills are the competencies that are needed, to perform tasks the job requires. In today’s world, industries are experiencing rapid changes which are propelled by various factors such as trade blocks, globalisation, internationalisation, changes in technologies and intense competition among companies and countries. In order for businesses to continue meeting customer demand and expectations, businesses such as Ford need to make sure that they are keeping up with changes in the economy. For example, back in 2010, Ford developed new technology to combat the problem of accidental speeding. It’s called the Ford speed limiter. At the core of the system is sophisticated Ford software which communicates with the engine management system. When activated, the software constantly monitors how fast the vehicle is travelling through small sensors mounted in the front wheels. As soon as the software detects that the maximum set speed has been reached, it limits the amount of fuel being delivered to the engine. In order to create this innovative piece of technology, employees at Ford must have the skills to do so. Skills and knowledge are usually passed down throughout an organisation that will help employees to strengthen and increase their skills. Since 2010, and the rapid changes in the environment in this short period of time have led to critics and customers alike demanding for more eco-friendlier automobiles. In order to meet this demand, Ford introduced ‘Ford ECOcentric Technology’ which is a customer driven initiative that brings a range of vehicle features and technologies together. These features include better fuel economy, reduced emissions and overall lower cost-of-ownership – without compromise to great design or driving dynamics. Once again, in order to bring this new piece of technology into the light, Ford and Ford HRM must keep assessing employee skill levels and influencing them to upgrade these skills through training and incentives. If employee skills are not Ford’s standards and even customer standards, it is more than likely that Ford will be left behind in a world where technology is evolving and becoming an utmost priority.

http://www.ford.co.uk/FordFleet/NewsAndReviews/FordForBusiness/2010/June/SpeedLimiter

http://www.ford.co.uk/experienceford/FordInnovation/FordECOneticTechnologies/mdp=i1204959948802

Workforce Profiling

Workforce profiling or a workforce profile provides a framework for an organisation to identify and record all staff information. It is the starting point for workforce planning because it provides the foundation information that a business must have to do effective workforce planning. Information such as: Age, Gender, Ethnicity and Qualifications are included in workforce profiles. Ford HRM is a business that is constantly growing and inventing new technology, because of this it is important for them to update workforce profiles as it allows the business to evaluate how the workforce is performing on a whole. It enables them to see how individuals are performing by assessing their current skills and qualifications which means that if training is needed, Ford HRM is able to target those individuals who need the experience to keep up with business activity. For those who exceed Ford’s expectations, they may have the chance for receiving incentives and even being promoted or transferred.

Aside from allowing the business to assess the current workforce and their skills/qualifications, the workforce profile ensures that Ford as a whole is meeting certain laws and regulations such as the Employment Equality Regulations that enforces the fair treatment of all staff no matter their age, ethnicity or gender.

External Planning Factors

External planning factors are the things that are happening outside of a business meaning that it is outside the direct control of the business.

There are many types of external factors that will affect businesses such as Ford. These include:

Market Demand/Labour Market Trends

Market demand plays a big role in business and demand for a product/service determines business production output. Production output also determines how many staff will be required, which means that if Ford is performing poorly, they will have to make some staff redundant, or consider recruiting if output is high. For example, one external change that Ford has recently encountered is the current market demand. Mark Fields, executive vice president of Ford Motor