Billabong Company - Pertinent Factors in the Internal Environment and Their Implications - Example

Billabong Company Table of Contents Table of Contents 1 1.0Executive summary 2 2.0 Introduction 3 2.1 Description of the Billabong Company 3 3.0 Pertinent factors in the internal environment and their implications 4 3.1 Labour force 4 3.2 Company budget 5 3.3 Bad planning 5 3.4 Competition 6 3.5 Government policies 6 3.6 Technological advancement 7 7 4.0 Conclusion 7 5.0 References 8 1.0 Executive summary The purpose of this report is to identify various internal and external factors that impact human resource planning in Billabong Company. These factors will be considered by the human resource manager while planning and carrying out job design functions. Such factors which are deemed to affect HR planning in Billabong Company include: internal factors- labour costs, bad planning, and company budget. The external factors on the other hand include competition, technological advancements and government policies. Furthermore, the impact of these factors on Billabong in the next five years and the strategies to address them in the HR plan are also discussed be discussed. 2.0 Introduction Human resource (HR) planning is defined as the process which categorizes recent and future needs for the human resource in order to ensure that an organization attains its objectives (Nadler, 1984; Bramham, 2000). Human resource planning is meant to serve as a linkage between the general strategic plan and human resources management in an organization (Kelly, 2001). The three major essentials of the human resource planning process include forecasting the demand of labour, scrutinizing the current supply of labour and ensuring that the projected supply and demand for labour is balanced. HR planning is a continuous process and it should be flexible enough in order to meet short-term recruitment challenges and other challenges that may face the organization (Select Knowledge and Simms, 2006). This report will focus on the analysis of internal and external environments of Billabong Company within the context of human resource planning. The report will identify both internal and external factors which may have an effect on the ongoing human resource requirements of Billabong; these factors will be considered by the human resource manager while planning and carrying out job design functions. Additionally, the impact of these factors on Billabong in the next five years and the strategies to address them in the HR plan will be discussed. 2.1 Description of the Billabong Company Billabong Jerky is a specialist manufacturing operation that is both owned and operated by Australia (Roth, 2010). The company produces dried meat which is processed in different flavours and styles. The plant is monitored by Australian Quarantine and is also export registered. It was established in 1995 particularly intended for jerky processing allowing for efficient and smooth production. The plant is located in Cootamundra, part of the Riverina region of New South Wales (Grant, 2007). Its location allows it to take advantage of the unpolluted environment. Due to its definite commitment to innovation, excellence, and consumer satisfaction, Billabong has been able to gain acceptance from avid jerky experts (Roth, 2010). The company is looking towards satisfying its consumer needs and keeping with pace with the rapidly expanding jerky industry. 3.0 Pertinent factors in the internal environment and their implications There are various factors in the internal environment of Billabong Company that may impact human resource planning and job design functions. These factors must be taken into consideration in order to ensure efficiency in duty performance of the human resource manager (Reddy, 2005). Some of these factors include: 3.1 Labour force It is certain that every company incurs costs while hiring new labour force (Reilly and Institute for Employment Studies. 1996). This is no exception for the Billabong Company. In order to employ qualified employees, or even transfer them to other company offices, human resource managers must consider the costs of doing the same. Such costs include advertising costs, costs for the interview, and training costs among others (Mathis and Jackson, 2010). This is a major factor which may impact Billabong company objectives in the next five years. Such goals may include increase in revenues or profitability as in order to attain this, the company must check on its expenses. It is apparent that, human resource managers aim at reducing labour costs. This can be attained by hiring qualified local labourers, for instance, Billabong human resource manager may employ individuals from the Australian labour pool. 3.2 Company budget It is apparent that human resources works within the budget limits of different departments while planning and hiring new employees (Armstrong, 2006). In most circumstances, this limits the type of personnel who is hired. For instance, when the various departments in the Billabong Company want to hire a new staff, they present the same to the human resource department with a budget limit. This as a result forces the human resource manager to a hire an individual who does not have all the necessary qualification required. This can affect the Billabong company adversely in future, and in order to curb this, the company should make certain that its budget limits goes hand in hand with the kind of an employee required who is capable of bringing change to the company. 3.3 Bad planning This is a major factor that affects human resource planning. In all companies, the human resource department works hand in hand with other company departments in order to establish staffing plans which is meant to maintain the company and enhance future growth (Gallagher, 2000). In many companies, the staffing projections are inaccurate and this impacts negatively human resources plans and those of the entire company. For instance, in the Billabong Company bad planning by departmental managers such as not projecting the actual number of qualified personnel required in the production department may cause a major harm to the company and to the human resources who have to scramble in order to meet the needs of the company. Pertinent factors in the external environment and their implications 3.4 Competition In the field of human resources, competition is different from that in other company departments. Competition in this case involves finding qualified and talented individuals and this means competing with other companies in the industry (Gallagher, 2000; Reilly, 1996). For instance, Billabong Company competes with other companies producing similar products in terms of employing competent personnel. Therefore, the human resource department should make certain that it is efficient in its recruitment techniques. However, this is followed by good rewards and better working environment for the workers which will keep them in the company without the need of shifting to other related companies in the same industry. 3.5 Government policies It is apparent that all companies have to abide by various laws and regulations set forth in the home country. In addition, due to social and political changes, new regulations and laws are constantly added (Kumar, 20110. For instance, Billabong Company has to comply with Australian laws regarding recruitment of workers among others. This may mean additional costs to the company and this may impact human resource planning negatively. For instance, where the human resource department is given a budget limit, it is forced to either hire employees who are not highly competent or downsize. 3.6 Technological advancement The contemporary society is characterized by rapid technological advancements. This has changed the way organizations function as they have to adopt the same for effective operation (Gallagher, 2000). This includes technical tools employed in production, or the technology of the products themselves. Technological advancement has simplified the work of human resources. However, they face challenges while recruiting employees who are competent enough to deal with the new technologies. 4.0 Conclusion As mentioned above, human resource planning is a vital process in every organization. However, the function of human resource management is impacted by various internal and external factors. Such factors which affect the human resources in Billabong Company include labour costs, bad planning, company budget, competition, technological advancement, and government policies. These factors should be considered by Billabong human resource manager while planning and in the performance of other functions. 5.0 References About Billabong Jerky. 2003. Available at http://alljerky.com/about_billabong_jerky [retrieved August 30, 2011] About Billabong Jerky. Exotic Australian Jerky producer, 2003. Available at http://www.australiagift.com/jerky_wholesale/company.htm [August 30, 2011] Armstrong, M. 2006. A handbook of human resource management practice (10th Ed). London: Kogan Page Publishers. Billabong Jerky product list. Available at http://www.australiagift.com/jerky_wholesale/jerky_products.htm Bramham, J. 2000. Human Resource Planning (2nd Ed). California: Beekman Books Inc. Gallagher, P. 2000. Human Resource Planning. Scitech Educational Limited. Kelly, D. 2001. Dual Perceptions of HRD: Issues for Policy: SME’s, Other Constituencies, and the Contested Definitions of Human Resource Development, http://ro.uow.edu.au/artspapers/26 Kumar, V. 2011, Human resource planning. http://www.streetdirectory.com/travel_guide/190629/human_resources/human_resource_planning.html Mathis, R. L. and Jackson, J. H. 2010. Human Resource Management (13th Ed), London: Cengage Learning. Nadler, L.1984. The Handbook of Human resources Development. New York: John Wiley and Sons. Reddy, M.S. 2005. Human Resource Planning. South Carolina: Discovery Publishing House. Reilly, P. 1996. Human Resource Planning: an Introduction. Report 312, Institute for Employment Studies, http://www.employment-studies.co.uk/pubs/summary.php?id=312 Reilly, P. and Institute for Employment Studies. 1996. Human resource planning: an introduction. Oxford: Institute for Employment Studies. Roth, M. 2010. Top Stocks 2011: A Sharebuyer's Guide to Leading Australian Companies (17th Ed). New York: John Wiley and Sons. Select Knowledge and Simms, H. 2006. Human Resource Planning. London: Select Knowledge Limited. Tina Grant. 2007. International Directory of Company Histories. Sydney: St. James Press. Read More