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MGT501 Human Resource Management Assignment 1 Solution Fall 2013

The given case is about the importance of human resource planning and shortage of workers. Students
need to identify the appropriate strategy or strategies applicable in this case. First question is based on
the shortage of workers that how this issue can be overcome. Second question revolves around on the
benefits of effective human resource planning. In both questions, students have to align their
descriptions with the case for proper justification.

CASE :1
Last year from Abu Dhabi, I visited my hometown in Lower Punjab where I got the opportunity to meet one of
my friends who works in Dubai. Filled with irritation, he explained me that how he is facing a delay in
construction of his house. When we both reached to talk to the contractor, he informed that there is an
immense shortage of workers. My friend also told me that sometimes he had to bring few workers on his own
vehicle from other distant areas for continuation of construction work.

My friend was in pain due to this issue. Basically the whole town was bearing this problem and it was the
famous saying over there that in order to build a house here you need good networking with the house
contractors rather lots of money. In our town, most people like us had migrated to Arab countries for good
earning which now has caused an extreme shortage of workers. Besides this, even in recent years when
industries were started up in this city, there is still a shortage of workers.

Few days back, I got a chance to meet one of my relatives who is working in a factory. He illuminated me that
the factory does not forecast that how many workers they would need in the coming times. He also identified
that even such gaps are not addressed in factory’s meetings and the management does not take any interest.
Compensation system is not being reviewed and so they are unaware regarding the market pay levels which
have forced the workers to move abroad for a better salary. I was also amazed to hear that the factory invites
workers from other cities as well but the workers leave once they do not get the appropriate pay.

After this conversation, I analyzed that there must be a proper channel for addressing the labor issues and their
forecasting which is badly missing right now. But it is never too late; I believe the time has come to change
this image of migrating to other countries and building up their economies by sacrificing our own.

Questions:

1. Keeping in view the above scenario, according to you, what measures can be taken to address the
issue of shortage of workers in the city?
Solution: People are indeed the greatest assets to an organization; they are the foundation, but also one of the largest expenses. Thus it is critical that an organization ensures that these human assets are properly utilized before going ahead and hiring new staff. However, when you have hundreds of projects and many employees, there is bound to be resource allocation inefficiency – right? Wrong. Resource inefficiency can be greatly reduced – if we make the right choice.
In today’s organizations, it is increasingly difficult to manually calculate an accurate demand and supply of human resources across the organization. This is because when there are complex organizational structures, matrix management and many projects, the visibility of the work and resources goes down. If you want to enable accurate human resource planning in order to maximize the utilization of your employees, then it is important that you implement a proper centralized system with the right processes.
This means not just any old system, but one that will keep up with the pace of your dynamic organization and continuously track the supply and demand of human resources in order to support you bridge the inefficiency gap. When finding the right system for your human resource planning, the following steps are a must:

  • Determine current and future SUPPLY of human resources
  • Determine current and future DEMAND of human resources
  • Match DEMAND with SUPPLY and determine the gap
  • Create and implement plan to bridge the gap between DEMAND & SUPPLY

2. How effective human resource planning can a bridge the gaps in the factory?

A company that lacks human resources may have difficulty developing and maintaining a solid relationship with employees. Human resources bridges communication gaps between company management and employees and offers employees the opportunity to release their frustrations with the company and report wrongdoings. If your company does not implement human resources, it must develop a plan to effectively communicate and listen to employee concerns. If you’re managing numerous people, such as over 50, it may be difficult to employ a strategy to deal with each employee. If employees become frustrated with the company or their jobs become dissatisfying, production can drop and company revenue may plunge. In addition, poor employee relations due to a lack of human resources can cause prospective employees to reconsider joining your company.

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