The Importance of Strategic Approach To HRM In Horizon Nuclear Power.
In all organization, there are departments including finance, accounting, procurement, sales, and marketing, as well as human resource management, which are essential for the smooth running of daily activities towards the achievement of set goals and objectives. Human resource planning falls under human resource management and deals with labor provision in the company. Human resource planning is the primary role in human resource management, as it ensures the proper use of employees in the workplace to maximize profits.[footnoteRef:1] Human resource deals with human labor in the company to work in the diverse departments in the organization. Planning helps the human resources managers to hire the right staff for the right jobs at the right time to help in attaining the company’s objectives of success and gaining high market share percentage.[footnoteRef:2] Human resources planning comprises of the operational and strategic planning, which the former deals with short term requirements as the latter attempts to fulfill long term labor requirements for the company. This assignment will focus on Horizon Nuclear Power’s strategic approach to human resource planning. Therefore, the study will discuss the strategic approach to human resource planning that will benefit Horizon Nuclear Power. The paper will also analyze the types of employment contracts and legal requirements available in Australia. [1: Kristina, K., Jana, S., and Andrea. C. “The Importance of Human Resource Planning in Industrial Enterprises. 2012] [2: Gregory, U., Patrick. W., and Evan, P. “Strategic Human Resource Planning in Academia,” American Journal of Business Education 2, 7 (2009).]
What is Human Resource Planning
Human resource planning is the first step in human resources management that deals with the proper utilization of human resources, which helps in preventing wastage in the labor resources in the company.[footnoteRef:3] The planning of human resources also forecasts future labor requirements, including technological know-how. Besides, human resource planning also accesses the number of employees the company has at the moment and the number it will require in the future. From the definitions, Rachel Worrall is a human resource manager who plans the internal human labor of the Horizon Nuclear power by talent resourcing, which aligns with the changing business requirements currently and in the future.[footnoteRef:4] [3: Koltnerova et al. “Importance of Human Resource Planning in Industrial Enterprises.”] [4: AHRI. People Resourcing, Rachel Worrall CPHR, HR Business Partners, Horizon Nuclear Power. 2018.]
Strategic human resource planning
Strategy in business is for creating value in the organization with the primary aim of attaining the organizational objectives, more so, in the long run. Strategic human resource planning deals with the long-term sustainable practices, in personnel resourcing.[footnoteRef:5] Horizon Nuclear Power human resource managers use business strategies to create value for the organization as well as the employees for long-term success of the company, and the long-term employment of the workers in permanent basis. [5: CIPD. “Strategic Human Resource Management. 2019]
The Importance of Strategic Approach To HRM In Horizon Nuclear Power.
Strategic human resource planning, which utilizes the human labor in the company, ensures that the company has the required number of employees, who possess the required skills, knowledge, characteristics, motivation, flexibility, and experience for the sustainable success of the company. Furthermore, strategic planning is essential for companies that want to go global like horizon nuclear power.[footnoteRef:6] The companies that intent to enter in to the global market, which has high technological and product innovations, must adapt strategies to maintain or sustain their competitive advantage in the competitive market place.[footnoteRef:7] The strategic approach to human resource planning for Horizon Nuclear Power requires the following four steps. [6: Bandar, K. A., Khalaf, and Amram, R., “Key Role of Strategic Human Resource Management (SHRM) In Advancing the Degree of Team Learning,” African Journal of Business Management 5, 26, 10446-10451. 2011] [7: Dave, U. “Strategic Human Resource Planning: why and How? Human Resource Planning 75- 94 (1992).]
i. Assessing the current human resources capacity in the company
This strategic approach is essential for Horizon Nuclear Power company which is in a foreign country. Rachel Worrall used the talent resourcing strategy towards the success of the company in the host country[footnoteRef:8]. Assessing the current human resources in Horizon Nuclear Power is vital in the organization. The personnel of the nuclear power station are to be analyzed in terms of their skills, knowledge, experience, and abilities.[footnoteRef:9] Moreover, Rachel Worrall developed another strategy of talent analysis and resourcing, which resulted in better performance in terms of employee satisfaction. The human resource should identify all the skills portrayed by the employees to know whether to add them responsibilities, or not. By assessing the skills, talents, abilities, and experience the organization can promote reliable and responsible employees as managers if the plan is aligned to their own personal goals. [8: “People Resourcing,” (2019).] [9: “Strategic Human Resource Planning in Academia” ibid]
ii. Forecasting human resource requirements
The strategic goals and objectives of Horizon Nuclear Power station must be analyzed to estimate and understand the future employment skills that job seekers must have to retain their jobs. Estimating the demand and supply of the products in the power station will be useful as it will help the human resources team to be innovative and hire workers who will contribute to the growth and sustainability of the company in future. Forecasting on potential employees with the skills that will be in demand in the future is a strategic plan.[footnoteRef:10] Therefore, Rachel Worrall has the responsibility to analyze the market in Australia in terms of demand and supply to be able to come up with the required job positions, job requirements and job description of personnel who will work on long term basis for the sustainability of the organization. With the implementation of proper strategies, the work force increased to more than 360 professionals in the Horizon company with 18% retention rate.[footnoteRef:11] Assessing the external factors that might affect the opening and operation of the Nuclear power plant was imperative in forecasting the working environment and the type of workers to fit the environment. [10: Bechet, T. and Maki, W. “Modeling and Forecasting: Focusing on People as a Strategic Resource,” Human Resource Planning 10, 4, 209-217 (2002).] [11: AHRI. “People Resourcing” 2018]
iii. Gap analysis
The human resource manager of horizon nuclear power plant, Rachel Worrall, had to do the gap analysis of the company. The gap analysis entails the current position of the company in terms of the number of workers, their skills, abilities, and skills; and the future job requirements for the same tasks, due to the evolving world of business.[footnoteRef:12] For instance, if employees in the power plant use paperwork in their work, gap analysis will help the employer to focus on employing workers who have skills and knowledge of technology because of the future digital world, where everything will be done online. Rachel Worrall and other human resource managers have to analyze the gap to know the new jobs that will emerge in the future, the new skills, abilities, and knowledge that will be necessary for working, and the current skills that will be useful in future operations, among others. [12: Ulferts et al. “Strategic Human Resource Planning in Academia.” 2009]
iv. Developing human resources strategies to support the Nuclear Power strategy
The last strategy, which is essential in the operating of the Horizon nuclear power station in Australia is the actual development of the strategies which may include:
a) Outsourcing employees with the required skill through contracts
b) Training the current workers to gain the skills, which will be useful in future as well as current operation of the power stations.
c) Employing employees who have the skills to work in the present and future, thus ensuring sustainability.
Rachel Worrall used the merit-based style of employment to hire the staff of the new Horizon Nuclear Power Plant, which resulted in a 70% increase in hiring quality workers. The manager also used the recruitment strategy to employ quality local and international employees on permanent basis or fixed term contract, which was cost effective as the company saved more than $500,000 in a year.[footnoteRef:13] [13: Australian Human Resource Institute. “people Resourcing.” 2018]
2. Types of Employment Contracts and the Legal Obligations
i. Legal requirements
Every country in the world has legal requirements pertaining one aspect or the other with the main aim of protecting the citizens from discriminations, and illegal practices. Employment contracts are essential for employees because they protect them from unfair employers, discriminations, overworking, and under-payment. Employment contracts explain the terms of the contract as well as the conditions for the contract.[footnoteRef:14] Rachel Worrall should understand that employment contracts must contain the terms of employment and the employee details.[footnoteRef:15] The contracts must indicate if the employment is permanent, fixed term, temporary, or part-time. In Australia, employment contracts include the personal details of the employee such as the name and personal contacts, job description and title, responsibilities, working hours in a day or week, type of employment, method of payment, among others. The employment agreement must have the signatures of the employer and the worker. [14: Australian Human Resource Institute. “Employment Contracts,” 2019] [15: Australian Government “Employment Agreement.” ]
ii. Types of employment contracts
The types of employment contracts in Australia that Rachel of Horizon Nuclear Power station should have in mind when hiring and firing the employees include:
1. Permanent contract
This type of employment is mainly for government employees. They are entitled to allowances, leave, government residence, if any, as well as other benefits that come with the job. Permanent employment contract ends when the employees attains their retirement age. It is the most secure type of employment as the employees are sure of monthly payments and allowances.
2. Full-time
The contract is based on the number of hours an employee works in a week, which is usually 38 in Australia.[footnoteRef:16] The workers must adhere to the working hours according to the contract, otherwise will be a breach of the contract. [16: AHRI, ibid]
3. Part-time
The difference between this type of employment and the full-time contract is the number of hours the work, which is less than 38 hours in a week.[footnoteRef:17] The job requirements, title, and description are the same as for a fulltime employee. [17: AHRI, “Employment Contracts.”]
4. Casual contracts
This type of employment is irregular as it only available on demand. The payments are immediately after the job is completed. The employees are not entitled to any benefits or leave including allowances or sick leaves. The casual agreements are mostly unwritten but verbal. The lack of a written contact implies that the contact can end without prior notice, and there is no legal action in case of unfair termination.
5. Independent contractors
They are self-employed and use their skills to make money by offering their services to companies on a contract basis.[footnoteRef:18] The independent contractors work under their own terms and are paid after the task is complete. As they negotiate their fee, they have the freedom of asking for a down payment. They can decide to work for as my employers as they can manage. [18: Australian Government. “Employment agreement”]
6. Fixed-term contract
Employees under this agreement have a specific period of working because the contract ends when the service is complete. the agreement explains the job description and the amount to be paid. They are entitled to leave, allowances, appropriate working hours and other entitlements as the permanent employees. The Horizon Nuclear Power uses the permanent and the fixed-term contracts with their employees, which is cost effective.
Conclusion
Strategic human resource planning is essential in companies as it helps them to come up with ways that will result in the success of the company in terms of profits, market share, consumer satisfaction, as well as job satisfaction for the employees.[footnoteRef:19] Strategic planning in human resource was successful for the new Horizon Nuclear Power company as it led to talent identification, commitment, and engagement. The strategic human resource planning also led to market confidence and trust in the organization. [19: Brush, M. and Ruse, D. “Driving Strategic Success Through Human Capital Planning: How Corning Links Business and HR Strategy to Improve the Value and Impact of Its HR Function,” Human Resource Planning 28.1, 49-60.]
Bibliography
Alharthey, Bandar. K., Khalaf, and Rasli, Amran. “Key Role of Strategic Human Resource Management (SHRM) in Advancing the Degree of Team Learning.” African Journal of Business Management 5(26) 20111: 10446-10451.
Australian Government. “Employment Agreement.” Australian Trade and Investment Commission.
Australian Human Resource Institute and Business Council of Australia. “Employment Contracts.” Employsure, (2019). Accessed September 12, 2019
Australian HR Institute. People Resourcing, Rachel Worrall CPHR, HR Business Partners, Horizon Nuclear Power (2018). Accessed September 12, 2019, https://www.ahri.com.au/hr-certification/what-people-say-about-certification/case-studies/slp-people-resourcing/
Bechet, T. and Maki, W. “Modeling and Forecasting: Focusing on People as a Strategic Resource,” Human Resource Planning 10, 4 (2002): 209-217.
Brush M. and Ruse, D. “Driving Strategic Success Through Human Capital Planning: How Corning Links Business and HR Strategy to Improve the Value and Impact of Its HR Function,” Human Resource Planning 28.1, 49-60
CIPD, Strategic Human Resource Management. 2019. Accessed September 12, 2019
Koltnerova, Kristina., Samakova, Jana., and Chlpekova, Andrea. “The Importance of Human Resource Planning in Industrial Enterprises,” 20 (2012). Accessed September 12, 2019,
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Ulrich, Dave. “Strategic Human Resource Planning: Why and How? Human Resource Planning (1992) 75-94.