Unit_16_M1

M1 Why Is HRM Planning Important To An Organisation' HRM stands for human resource management, and it is vital for the provision of efficiency and quality of an organisation. In this case it is vital for the provision of the efficient and quality health care. A huge part of HRM is the HR planning cycle. This helps companies identify how to run the company efficiently and to make sure they are not spending unnecessary money. The example I have been given is midshires hospital, they assessed their current workforce and looked at what they needed in the future. They had been hiring students from the local university and training them onsite so therefore they would have a workforce but able to pay the students’ low wages as it is giving the students the work experience they need. However for the future this was not enough as the hospital were gaining a burns and maternity unit and they did not only have enough staff but skill gap that would have been assessed by a skills audit were too large for the students to be trained in time especially with new technology coming to the hospital such as pregnancy machines, CT scans, MRI scans and x-rays. Therefore the hospital had to hire 50 Spanish nurses and hire eastern European doctors. This way they would have enough staff for all departments and staff that do not need training as they are experienced in the new equipment and the new departments. By having a good HRM plan in place they were able to address the hospitals needs and deal with them efficiently and effectively meaning the hospital could stay running during the changes. Another company that had an efficient HRM plan in place was Google when they bought Motorola. They identified that they didn’t need all the staff from Motorola as they had people within Google that could do the same job so that Google would not have to pay more money than needed. They also addressed the technology gap, Motorola were a company that made low-end mobile phones and so Google started to make smart phones to compete with companies like Apple and Samsung. By analysing future workforce they realised they didn’t need some of the staff in curtain countries and so got rid of UK employees and had more in the USA as that’s where they were needed and so the company were not spending unnecessarily. Therefore they could make as much money as possible which is the aim of any company. A company that did not have an efficient HRM plan in place is Kellogg’s as they hired staff but because they did not assess the current workforce they were wasting money by paying wages they didn’t need to pay. Also by not checking the workforce their products contracted an illness and so all products had to be recalled and so resulting in a huge loss of money and also effect Kellogg’s reputation. Through these examples it is clear as to why HRM planning is important to any organisation because if HRM planning is followed correctly then it will significantly help them to achieve their aims and objectives, such as making as much profit as possible.