Human resource planning strategy at Eurosec Automation & Security

University of Cambridge International Examinations

Cambridge International Diploma In Management

Higher Professional Level

All work submitted for assessment must be accompanied by an Assignment Cover Sheet. Fill in your Candidate and Module details on this form, sign the declaration and attach this Cover Sheet to the front of your work. Your tutor or responsible person at your centre must sign the declaration that this is all your own work. You must state the number of words in your assignment, excluding bibliography and appendices.

CIE Unique Candidate Identifier

Centre No

Cand No

CD

G

Candidate Name

Alaa Eddin Al Jabban

Indicate which module the enclosed work relates to by ticking the box in the last column.

Module Code

Module Title

Core/Option

Assessment Method

Management Skills

Core

Management File

Financial Management

Core

4000-word assignment

Information Systems Management

Core

4000-word assignment

Strategic Management

Core

4000-word assignment

Human Resource Planning

Option

4000-word assignment

Organizational Behavior and Change Management

Option

4000-word assignment

Customer Relations Management

Option

4000-word assignment

Strategic Marketing

Option

4000-word assignment

Case Study

Core

8000-word assignment

Please tick the box if this is a resubmission

Tutor Comments (Optional):

Candidate Declaration: I confirm that the enclosed assignment is all my own work. Any work taken from another source has been appropriately referenced and acknowledged. The number of words is

Alaa Eddin Al Jabban

6/6/11

Tutor Declaration: I verify that this assignment is the candidate's own work.

Arijit Bose

Tutor Name

Arijit Bose

8/6/11

Table of Index:

Executive Summary

42. Research Methodology

43. Organizational Background:

43.1 Industry Background

43.2 Company Information, Market Coverage and Services

Source: Eurosec Automation & Security.

53.3 Vision

53.4 Mission

53.5 My Role

53.6 My Department

54. Organizational Strategy and Human Resource Planning

54.1 HRP and Its Strategic Objectives

54.1.1 Definitions and Background

64.1.2 Strategic Importance and Objectives

64.2 Strategic Plans and Objectives

74.3 HRP Best Practices and HR Policy

85. HR Planning Process

85.1 Internal Analysis

85.1.1 SWOT Analysis

105.2 External Analysis

105.2.1 PESTLE Analysis

105.2.3 Economic

115.2.4 Social

115.2.5 Technological

115.2.6 Legal

115.2.7 Environmental

126. HR Plan

126.1 Demand and Availability Forecast

126.2 Job Description and Job Specification

127. Recruitment and Selection Strategy

137.1 Existing Recruitment Process

137.1.1 Recruitment Methods Followed at Eurosec

137.1.2 Existing Selection Methods

147.1.3 Revised Recruitment Methods for Eurosec

147.1.4 Revised Selection Methods for Eurosec

148. Measuring Recruitment and Selection Methods Effectiveness

159. Implementation Plan

1710. Evaluation of the Process

1711. Recommendation

1812. Conclusion

1913. References

Executive Summary

The focus of this paper study is to assess current human resources practices at Eurosec. Eurosec Automation & Security Systems L.L.C is an independently owned and operated company that offers security solutions with branches in Abu Dhabi, Dubai and Sharjah. The assignments started by linking strategic human resource planning with the overall company's objectives. Current human resource practices at Eurosec have been evaluated with the best practices to identify the gap. External factors have been considered and current culture has been studied to identify the effect on human resource. Staff audit matrix has been used to identify the needs of human capital in line with the strategic growth objectives for Eurosec. Current recruitment and selection plans have been assessed and based on the gaps a new recruitment and selection plan have been recommended. A job specification has been looked at for one of the identified openings and the role of line managers in the process has been discussed. Validity and reliability test have been discussed to evaluate the recommended methods in human resource. Implementation plan has been prepared and the evaluation of the process as well. A letter to the management illustrated the findings, recommendation and suggestion to improve HRP practices has been presented.

2. Research Methodology

Primary research was conducted from the Eurosec annual report as well as from the information in the website and by way of research about the company.

Secondary research

Interviews were conducted with the top Management. These were very helpful to discus with them the future of the company and the future plans.

3. Organizational Background:

3.1 Industry Background

The security solution industry offers a complete range of life safety and security solutions to meet the needs of growing and diverse communities in both the residential and commercial areas. From standard locks and hardware to the most sophisticated alarm, access control and surveillance systems (Welcome to Security Solutions, n.d.)

3.2 Company Information, Market Coverage and Services

Eurosec Automation & Security Systems L.L.C is an independently owned and operated company that offers security solutions with branches in Abu Dhabi, Dubai and Sharjah. Service wise, the company offers the following today:

CCTV System Monitoring

ANPR System

Smart Home System

Hotel Management System

PABX System

Video and Audio Intercom System

Public Address

SMATV System

Structure Cabling

Access Control System

Shutters and Grills

Gate Barrier System

Alarm Systems

Source: Eurosec Automation & Security.

3.3 Vision

Eurosec prides themselves in their customer satisfaction and offer personal service to all of them (Eurosec Automation & Security, n.d.).

3.4 Mission

Eurosec aim is to provide their clients with the most innovative and latest technologies (Eurosec Automation & Security, n.d.).

3.5 My Role

I currently work at Eurosec as the Marketing Manager. Under this role I take care of implementing the policies and measures relating to the marketing management teams, the client relationship and driving the branding and marketing efforts at the company.

3.6 My Department

The department that I lead is directly responsible for improving the productivity and performance of the customer services teams by providing them the essential tools, infrastructure, analysis and direction needed. Since my role and department has many responsibilities, we also lead the marketing efforts ranging from the current re-branding efforts to improving the company's market visibility, to conducting market surveys, to improving the lead capturing processes, and to better positioning the company in the markets we exist in.

4. Organizational Strategy and Human Resource Planning

4.1 HRP and Its Strategic Objectives

4.1.1 Definitions and Background

Human Resource Planning can be defined as "The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources" (Human Resource Planning -- HRP, 2011). For resourcing strategies to be implemented they must be translated into practical action. The strategic process should be organized logically. For these decisions to be taken, information must be obtained, consequences gauged, political soundings taken and preferences assessed (Human Resource Planning, 2007).

4.1.2 Strategic Importance and Objectives

The object of human resource (HR) planning is to make sure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply (Human Resource Planning -- HRP, 2011).

5.2.1 PESTLE Analysis

PESTLE analysis stands for "Political, Economic, Social, Technological, Legal and Environmental analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management (PESTLE Analysis, 2009). This method will be used as per below to analyze the external environment and its impact on HRP at Eurosec.

5.2.2 Political

The UAE is normally politically stable and this is aiding the business environment in spite of the regional volatility and increasing war risk surrounding us. Furthermore the zero corporate tax law and moderately low import taxes and customs duties also helps attracting foreign direct investment, companies and expatriate that further fuels the financial system in spite of the recent financial crisis that hit the country. This stability helps attract talent, international experience, trainers and education occasions that can help businesses like Eurosec to be up to speed with the international markets in terms of knowledge and growth.

5.2.3 Economic

The financial predicament has put a certain limit to the growth of GCC countries in the latest years and increased pressure on businesses to cut down expenses, decrease workforce, freeze bonuses and increases. This affected companies like Eurosec in many ways such as

Incapability to instantly advance salary scale and therefore the risk of losing key talent to other regions

On the contrary it helped decrease worker turnover rates due to lack of enough occasions elsewhere

Affected business growth to a certain extent even though the company continued to grow with its well diversified portfolio

Affected to a partial extent the company's recruitment plan even though this was not frozen.

5.2.4 Social

The fact is that the preponderance of the workforce in the UAE is expatriates from about one hundred and fifty nations. This creates a lot of challenges for Eurosec such as:

Communication skills: Eurosec had to enroll some workers in language classes to make sure proper communication

Emergence of subcultures and subgroups that are nationality founded. Therefore recruitment should deal with tackle the matter of having a fair diversity plan.

Loyalty and future purposes: it is well seen in the UAE and at Eurosec that due to the fact that most of the workforce are expatriates, there are always future plans of workers going back to their home nations after they have built up a certain amount of income or experience. This means that there is a loss of experience and incapability to retain talent with the opportunities they might get in their home nations where the monetary benefits of being an expatriate fail to gratify.

5.2.5 Technological

Eurosec has access to advanced technology and systems that support and facilitates its business. Eurosec's intranet is well equipped with tools that support HR; these include HR systems, publishing of policies and procedures, work flow systems, inter-company worker job opportunities, knowledge sharing, blogging, automated reports on employee turnover, payroll, leaves and compensation.

5.2.6 Legal

Being in the Automation & Security industry, Eurosec automatically carries a legal liability that should be properly administered. The industry is highly regulated, locally and internationally, due to the sensitivity of information and impact of any loss or fraud. Hence this has put a burden on Eurosec to make sure that:

Employees are well trained on handling sensitive information

Proper insurance policies are in place

The company is compliant with local and international rules and regulations

5.2.7 Environmental

A lot of environmental initiatives were put into practice in the UAE to make sure a better tomorrow and to follow international sustainability and climate change proposals. These affected Eurosec in regards to internal employee education on the importance of this topic, and created the need to employ key people with such experience.

6. HR Plan

6.1 Demand and Availability Forecast

SR.

Level

Present

Needed

Variance

1

Senior

Management

10

12

2

2

Middle

Management

20

25

5

3

Technical

15

16

1

4

Junior Staff

25

27

2

5

Support staff

5

Total

25

From the above forecast it is clear that Eurosec needs to fill in 25 new positions in 2011. These can be filled internally by promoting suitable candidate or through external recruitment.

6.2 Job Description and Job Specification

Before going into job descriptions and specifications, it is extremely important for companies to conduct job analysis.

"Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job" (HR Guide to the Internet: Job Analysis: Overview, 1999).

"Job Analysis can be used in performance review to identify or develop:

goals and objectives performance standards evaluation criteria

length of probationary periods

Duties to be evaluated" (HR Guide to the Internet: Job Analysis: Overview, 1999).

7. Recruitment and Selection Strategy

"The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool" (Recruitment, 2007).

"Selection process involves choosing the individual who can successfully perform the job from the pool of qualified candidates" (Heath field, 2011).

7.1 Existing Recruitment Process

7.1.1 Recruitment Methods Followed at Eurosec

Eurosec uses the following recruitment methods

Method

Description

Local Universities

An excellent resource would be local universities by building good relationship with their deans or department heads, the best way to utilize such a resource is by either asking for their potential graduates' lists or by sponsoring or attending their Job Fairs

Local Newspapers

Eurosec Career Advertisement can be utilized to announce for any vacancies in the local newspapers.

Local Hiring Agencies

Local-hiring agencies could be explored and utilized if all the above do not fulfill the need. It is advisable to check with the agency's clients before utilizing their service.

Online recruitment and database sites:

HR & Training Representative could contact online recruitment and database sites to announce for the vacancy.

7.1.2 Existing Selection Methods

The existing selection methods can be summarized as below:

The applicant will be called for an interview with the HR and the line manager

If the applicant pass the interview they will be called for another interview with the head of HR to discuss the offer

The applicant will be either recruited or rejected based on the second interview

7.1.3 Revised Recruitment Methods for Eurosec

Position

Recommended Recruitment

Methods

Rational

INFORMATION Management

SOLUTIONS MANAGER

Universities

Attracting newly fresh graduates and targeting the distinction students

Newspapers

Reaching potential candidates

Hiring agencies

Large pool of applicants

Refund of fees if the newly recommended was not successful within three months

7.1.4 Revised Selection Methods for Eurosec

Below is the revised/recommended selection method:

1. Screening Online Applicants

2. Recruitment Tests: it is a must that all applicants who passed the screening process to be called for recruitment tests

3. Assigning and Conducting Interviews: any applicant who passes the recruitment tests will be called for an HR initial interview with the HR & Training Representative and for a second interview with the manager concerned.

4. Call the applicant who passes the HR Initial Interview for the interview with the manager concerned. If the applicant passes the interview and is appropriate for the current vacancy, HR should coordinate with the manager concerned to submit an Employment Offer.

8. Measuring Recruitment and Selection Methods Effectiveness

There are many methods to measure the effectiveness of reliability and validity of tests. "Reliability refers to the consistency of a measure. A test is considered reliable if we get the same result repeatedly. If a test is designed to measure a trait, then each time the test is administered to a subject, the results should be approximately the same. Unfortunately, it is impossible to calculate reliability exactly, but there several different ways to estimate reliability" (Cherry, 2011).

"Test validity, or the validation of a test, explicitly means validating the use of a test in a specific context, such as college admission or placement into a course. Therefore, when determining the validity of a test, it is important to study the test results in the setting in which they are used. In the previous example, in order to use the same test for educational diagnosis as for high school graduation, each use would need to be validated separately, even though the same test is used for both purposes" (What Is Test Validity, 2011).

The validity tests available are: Concurrent, Predictive, construct, face and content. We shall use the parallel form reliability test and content validity test.

9. Implementation Plan

Task

10- July

10- Aug

10- Sept

10- Oct

10- Nov

10-Dec

Responsibilities

Cost

Forecast and availability

Week 1

HR and Other line managers

3,000

Job Analysis

2-3

Job

Description & Job

Specifications

Week 4

2,000

Recruitment

methods recommended for open positions

1-4

5,000

Short listing of candidates

Week 1

1,000

Reliability

and validity tests for recruitment methods

2-4

1,500

Selection

methods as recommended for open positions

1-2

HR Manager

5,000

Reliability

and validity tests for selection methods

Week 3

1,500

Offer

Week 4

2,000

Start date confirmation

Week 1

Induction Training

Week 1

10,000

Orientation

2-4

2,000

Total Cost

Week 1

33,000

10. Evaluation of the Process

The evaluation process will cover the following things:

Demand and availability forecast

Recruitment and selection process

Evaluation Process

Demand and availability forecast

Recruitment and selection process

The appropriateness of vacancies numbers that have been considered in the first phase to make sure that the correct methods have been utilized

This process will include the followings:

Cost implication

The amount of ideal candidates that have been assessed

The time frame and the amount of involved workers

11. Recommendation

12. Conclusion

Human capital is one of the most important resource of any business, managing the human resources planning can help Eurosec to make sure it is attracting and Recruiting the correct staff and therefore ensure reduced employees turnover.

13. References