Risk Management Strategy For JKL Industries

Legislative Requirements

1. Workforce planning: Is a core HR process that offers an important opportunity to the HR to be involved in the strategic planning of the organization. Workforce planning is a collection of practices as succession planning rather than a systemic effort to develop and review the entire workforce (Baron et al. 2010).
2. Factors affecting workforce supply and planning
3. Changes in technology:It has a positive effect on workforce supply and planning through the models and software that enables the HR professionals to develop their tailor-made workforce planning models with the assistance of the IT packages (Baron et al. 2010).
4. Economicconditions: Workforce planning is a major aspect of economic planning along with the financial planning. The challenging economic conditions increase the demand for labor and reduces the unemployment rate. The demand increases mainly for the skilled people (Baron et al. 2010)
5. Market trends:The human capital management capabilities have to be aligned with the market trends through planning workforce strategies that ensure strong organizational performance (ADP & Corporate Leaders 2015).
6. Globalization:Is considered a driver of the global job change. Organizations benefit from the increasing mobility of their workforce to enhance their productivity and efficiency. It highly impacts the HR transformation efforts (ADP & Corporate Leaders 2015).
7. The skills shortage is likely to negatively affect the organizational performance, development and growth. It also leads to ineffective management strategies and the projected outcomes are likely to fail (Oke, Aigbavboa & Khangale 2018).
8. It the workforce is 100% employed, a problem faces organizations as they should offer a high incentive to attract skilled employees. If the unemployment rate is high, the labor supply increases and the recruitment is much easier (Chasteen 2014).
9. Recruitment: is the process of attracting talents and skills to apply for a job in an organization. It aims to hire the right skills for the right job (Kumar & Gupta 2014).
10. Selection: Is the process of picking people with relevant qualifications to fill a job. It aims at balancing between what the applicant can do and what is needed by the organization (Kumar & Gupta 2014)
11. The difference between recruitment and selection according to Kumar & Gupta (2014), are as follows:

Recruitment Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Selection
1. Identifying and encouraging candidates to apply for the vacancy.	1.  It results in a contract of service between the candidate and the organization
2.   Creating a talent pool of the applicants. Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	2.   Selection of the right talents from the applicants

1. Steps in the selection process:

1.	Preliminary Interview
2.	Selection Tests
3.	Reference & Background Checks
4.	Employment Interview
5.	Selection Decision
6.	Physical Examination
7.	Job Offer
8.	Final Selection

1. The assessment center represents the final part of the selection process. Job candidates are asked to attend the assessment center after the first interview. For example, the candidate could be asked to go through a series of tests, interviews and exercises that could take place in the organization premises or in a hotel (Imperial College 2014).
2. Psychometric tests could be aptitude or personality tests, taken under examination conditions within a specific time. They provide insight into the employee skills without linking them to right or wrong answers (Imperial College 2014).
3. Organizations tend to contract employees from outside the workplace to fill the skills gap and respond to the market changes (Cicek & Ozer 2011).
4. The advantages of outsourcing are represented in providing technical expertise and knowledge transfer to the employees in the organization (Somjai 2017)
5. The disadvantages of outsourcing are represented in the exposure of the confidential data to the employees from outside the organization and the lack of knowledge about the organization and its culture (Somjai 2017).
6. Employee contracts and legislation:
7. An employment contract is an agreement between an organization and employee that settles the terms and conditions of employment. It can be in writing or verbal. There are legal minimums in the employees’ contract that should be considered (Australia Government 2018).
8. legislation, regulations, standards and codes of practice that may affect workforce planning, recruitment, selection and induction processes:

• Competition and Consumer Act 2010
• Disability Discrimination Act 1992
• Workplace Gender Equality Act 2012 (Cwth)
• Fair Work Act 2009
• Freedom of Information Act 1982
• Privacy Act 1988
• Racial Discrimination Act 1975
• Safety, Rehabilitation and Compensation Act 1988
• Sex Discrimination Act 1984
• State and territory WHS health and safety legislation.

1. The importance of terms and conditions are represented in ensuring a transparent and unbiased recruitment and selection process and to assure that the job description matches the business requirements (Slezak 2016).
2. An organization could become an “inclusive workplace and ensure it has a diverse workforce by attracting and engaging the workforce, it represents a critical factor that determines whether the employees prefer to stay or leave the workplace. To be considered an employer of choice, the organization have to re-examine their approaches to inclusion as a foundational to culture and vital to all sorts of organizations (Deloitte Development LLC. 2017).
3. Organisational climate surveys may include certain factors according toStudzinski & Eccleston (2014):
4. The employee engagement surveys that encourages the employees to provide open and honest feedback.
5. The data gathered from the employee engagement survey could be used in the workforce planning processby assisting the organization in identifying and building the talents of its workforce. It gives an idea about the staff and their satisfaction level.
6. Summary of the trends in the Australian labor market:

The labor market conditions have been strengthened between June 2015 and June 2016. The level of employment increased 1.9 % to record at 11.9 Million on June 2016. This increase was due to the strong growth in part-time employment (Australian Government 2016).

1. The external factors that may affect the workforce supply could be represented in the market trends, changes in technology, globalization and the economic conditions.
2. These factors have a significant impact on the process of workforce supply as it encourages competitiveness in the labor market.
3. Reasons for developing and retaining a skilled workforce could be represented according toHolland, Sheehan & Pyman (2015), as follows:

• To create and maintain the organizational core competencies.
• To enhance the organizational performance.
• Enhance the process of organizational learning.
• Quick response to the market needs.
• Create future leadership.

1. The importance of developing a diverse workforce and cross-cultural management according to Dalluay & Jalagat (2015):

• Bringing diverse knowledge and expertise to the organization.
• Create a cultural environment that suits the diverse workforce.
• Enabling the organization to have a global impact.
• Enables innovation
• Increasing the talent pool

This task is answered according to Bridge Business College (2018), as follows:

1. The reasons for senior managers leaving JKL Industries are retirement and other opportunities
2. Reasons for sales force and customer service representatives leaving JKL Industries are lack of opportunity, lack of recognition and unhealthy work culture.
3. Reasons for line managers leaving JKL Industries are lack of opportunity, unhealthy work culture and retirement.
4. Reasons for mechanics leaving JKL Industries are better opportunities elsewhere, lack of recognition and unhealthy work culture.
5. Only one of the Aboriginal was employed by JKL Industries in 2017-2018 mechanic’s apprentice.
6. There are no women employed by JKL Industries in a senior manager or branch manager roles in 2017-2018.
7. The number of women employed by JKL Industries in sales force is 70 and none were employed in the customer service roles in 2017-2018.
8. The six internal factors that affect JKL Industries’ workforce supply are as follows:

• Reliability
• Punctuality
• Attendance
• Professionalism
• Performance
• Well organized

1. The external factors that may affect the workforce supplyare as follows:

• Legislations
• Average Wages in the industry
• Better opportunities than in JKL
• Better work culture

1. Unhealthy work culture is a threat that JKL Industries currently faces, an opportunity is the attitude of JKL Industries towards the diversity of its team, clients and communities and respects the rights of individuals and groups to operate in an environment free of discrimination.
2. The ways JKL Industries might comply with the legislation:

Legislative Requirements	Name of Legislation	How might JKL comply?
Equal employment opportunity EEO	Human Rights and Equal Opportunity Commission Act 1986	JKL must ensure commitment to the fair treatment of all personnel and customers. Access and equity so that all staff are judged fairly. JKL need to create a fair and productive workplace. A welcoming, supportive environment will be provided leading to positive learning and employment, and individuals having the opportunity to reach their optimum potential.
Anti- Discrimination	Racial Discrimination Act 1975 Sex Discrimination Act 1975 Disability Discrimination Act 1992 Workplace Gender Equality Act 2012 (Cwth)	JKL values the diversity of its employees, customers and communities and respects the individuals’ to operate in a free of discriminatory environment. It handles any grievances, including complaints of discrimination, unfair treatment or harassment.
Industrial relations Workplace relations regulations W	Workplace Relations Act 1996 Workplace Relations Amendment (Work Choices) Act 2005	Employees and managers of JKL are expected to support the organization’s core values including performance excellence, diversity and sustainability.
Fair Work Australia legislation 2009	JKL’s policy of compliance with legislation requires each employee and manager to understand and act according to the legislation relevant to their position.
Insurances	Insurance Act 1973 (Cth).	JKL incurs costs for business liability insurance with an estimated value of $356,000 per year.
Taxation	Australian Taxation Office	voluntary agreements with businesses that don’t quote their Australian business number (ABN)
WHS	Work Health and Safety Act 2011 Safety, Rehabilitation and Compensation Act 1988	JKL is committed to reducing and managing health and safety risks and delivering workers’ compensation and rehabilitation and first aid training.
Privacy & confidentiality	Privacy Act 1988 and Freedom of Information Act 1982	JKL takes care to employees in accordance with privacy and fully complies with obligations under the relevant legislation. The company provides access to own records where available.

1. Threestrategies that could be used to source JKL Industries skilled labor requirements are as follows:

• Training employees to create and store records.
• Setting standards for recordkeeping.
• Ensuring all legislative requirements for retention periods are met

1. A report for the management will include the following:
2. JKL is an Australian. The company sales have increased by 10% on average over the last five years.
3. JKL sells forklifts, small trucks and spare parts with a rental division.
4. JKLmission is to deliver value to its customers and investors through its highly trained workforce.
5. JKLvision is to develop the potential of its people to enable the company to become the leading supplier of forklifts, small, medium and large trucks in Australia. 
6. JKL values are as follows:

• Performance excellence
• Value for investors, customers and employees
• Personal and professional development
• Diversity
• Sustainability

1. JKL Industries risk management strategies and guiding principles are as follows:

• Risk management strategies
• To identify, evaluate, control and manage risks.
• Ensure potential threats and opportunities are well identified and managed
• To inform the employees about their roles, responsibilities and reporting procedures
• To ensure that risk management is part of planning at all of the organizational levels.
• Guiding principles
• JKL is committed to achieving its vision and objectives.
• Embracing innovative ideas and practices to manage risks.

1. Goals and objectives:

Goals	Strategic objectives
Provide value to owners and investors	Overall profitability Increase by 10% over the next three years. Partnering with HR and business to achieve the financial goals
Value delivery to customers	JKL will expand its market share by 7% within the next year and a half
Development of the workforce potential	Recruit and training to meet workforce needs Become an Employer of Choice
Improve operations and management efficiency	Performance monitoring in all areas of strategy

1. JKL future strategic goals:

• Managers take the responsibility for the recruitment and selection of staff.
• The HR department will assist managers in this role

1. JKL plans to expand existing branches to include the sale of medium and large trucks within one year and a half.
2. JKL Organisational structure:

1. JKL has 30 full-time and casual sales and customer service people, an account manager and 2 accountants and senior management team and one branch manager CEO and managing directors.The company has 6 branches.
2. JKL has to increase the number of its sales force.
3. Most of the workforce is concentrated in sales.
4. The sales force is the most critical job.
5. Threestrategies that JKL could use to address the unacceptable staff turnover, according to Muthukumaran & Lavanya (2013) are:

• To offer an attractive compensation package
• Establish a competitive environment.
• To provide better chances for promotion.

Strategic objectives	Operational objectives
Increase overall profitability by 10% over next three years	Cost reduction policies and revenue increase through increased customer value
HR partners with business to achieve financial goals	A scan of market forces impacting competitiveness
JKL will continue to sell and service forklifts and expand their market share by 7% within the next 12–18 months	Branch expansion to include sales of medium and large trucks

1. Future workforce planning objectives, targets and results:

Objective	Targets	Result
Provide required training	Deliver training to rental employees	Skills development
Recruit	Conduct workforce planning thru FY 2018–19	Increased number of workforce
Become an Employer of Choice	Inclusion strategy	Employee retention

This task is answered according to Bridge Business College (2018), as follows:

1. Customer value
2. Good sales achieved which represents an advantage, but the culture management has failed which represent a disadvantage.
3. JKL climate is not encouraging employees to stay
4. JKL can manage the change process through a strong managerial role that changes the organizational culture (Northwestern University Information Technology 2011).
5. The current vacant positions could be filled through internal recruitment or by advertising the current positions.
6. JLK can ensure to become an employer of choice through creating an organizational culture, inspiring employees and providing an open and honest feedback.
7. JKL current Recruitment and selection policy involves the employment of the best possible professionalsthrough an equal opportunity.
8. Answers to questions from 8 to 11:

Stakeholders	Employees, managers, suppliers, clients, customers and the government
Involvement	Managers are involved in developing the employees’ skills
Employees have to respond to the organizational goals
JKL provides value to the employees, clients and customers
JKL complies with the governmental regulations
Risk	Employees’ turnover
Customer switch
Engagement	JKL ensures high level of client engagement
JKL seeks effective management of talent through engagement-friendly culture (Chandani et al. 2016).
Responsibility	The HR and line managers are responsible for engagement
Timing	They should be usually engaged.
Approach	KL has to manage culture, influence employees through promotions, and create ways of communication and information sharing. This policy should be continuously implemented (Maj 2015).

1. JKL ways to ensure that desirable workers are developed and retained:

Strategy	To whom will it apply?
JKL Industries will create a grading system that allows staff to move upwards whilst remaining in the role. Higher grades will be eligible for a higher salary / longer annual leave.	Mechanics Create grade levels- according to skills and knowledge acquired Create responsibilities according to grade and pay level Physical effort required Working conditions according to grades
Creating performance management policy	Performance reviews should be done twice a year by managers. Monitoring performance against agreed KPIs.
Providing vocational education and training policy	Providing training to young and new graduates

1. To address the future needs of the organization, JKL aims to recruit additional staff to meet organizational demands. Four senior managers are required, 6 branch managers, 6 line managers, 84 salesforce and 35 Mechanics.
2. Risk management and contingency plan:

Workforce objectives	Risk likelihood	Risk consequence
JKL fails to recruit and retain staff in areas of critical need (management, salesforce, mechanics)	Medium	Low performance
JKL fails to manage culture	Medium	High turnover
JKL fails to become an employer choice	Medium	Employees dissatisfaction

Workforce objective:	Recruit and retain new skills
Risk mitigation strategy or contingency plan could be addressed according to (Shahzad & Safvi 2010) as follows:
? Stating the requirements properly ? Realistic estimation of cost ? Enhance the customer value ? Development of the staff skills ? Providing the required training

1. Staffing action plan

Position	Staffing target for FY 2017–18	Actual (as per staffing action plan)	Achieved
Senior manager	4	4	n
Branch manager	6	6	n
Line manager (service, sales)	12	18	n
Salesforce	84	80	q
Mechanic	34	32	q

1. The recruitment, selection and induction policy and procedures for the organization

Objective	Targets	Result
Provide required training	Deliver training to rental employees	Skills development
Recruit	Conduct workforce planning thru FY 2018–19	Increased number of workforce
Become an Employer of Choice	Inclusion strategy	Employees retention

1. Version- control of the documents to ensure the employees use the most recent version of the document.

Draft V 0.1	This is the first version of the draft
Draft V 0.2	This is the second version of the draft, it includes the necessary changes
Final V 0.3	This is the approved version of the document

1. A checklist with step by step instruction that JKL recruitment team can follow

Step 1 – Plan	Task done by	Date	Notes
Identification of the staff needed
Step 2 – Prepare	Task done by	Date	Notes
Consideration of changes in  the aims of the job and their effect
Documents required for the vacancy: · Job description · Job application form                                       · Equality and diversity monitoring form · Job offers template · Information about the organization
Step 3 – Advertise	Task done by	Date	Notes
Factors that candidates should apply according to them and development of the ad content.
Communication channels
Review the job ad carefully
Step 4 – Handle applications	Task done by	Date	Notes
Sending application packs to candidates.
Shortlist of candidates for interview
Sending invitation to them
Interviews preparation
Conduct the interview
Selection of the best talents for the job.
Step 5 – Complete final details	Task done by	Date	Notes
Successful candidates should receive a job offer letter
Conduct pre-employment investigation
Make a final selection decision

 

This task is answered according to Bridge Business College (2018), as follows:

1. In reviewing JKL work satisfaction survey results, we find that a great progress was achieved through making 80% of the employees and 90% of the managers satisfied. Also, 80% of the employees dislike to exit and the rest of them are reconsidering which reflect enhancement in the working environment. About 95% of the employees feel that they have the option to advance and they are capable of. On the other side, 80% of the employees ignore information about privacy, discrimination policy and organizational goals with respect to diversity. 50% of the employees ignore the training policy. 50% of the mechanics require salary increase and 40% of the salespeople require promotion in the long term. Accordingly, it is essential to disseminate information about the organizational policies regarding the privacy, discrimination policy and organizational goals with respect to diversity and the training policy. It is important to revisit the salary increase of the mechanics and the promotion policy to the salespersons.
2. Managers have to maintain the culture of knowledge sharing through adopting communication policies. It is important to encourage the organizational learning.
3. JKL could monitor the labor supply through analysing historical data to be able to project the future supply. Also monitoring the market trends issued by specialized recruitment centres and by the government (Mavromaras et al. 2013).
4. The HR team can conduct a means of grievances and complains with a certain procedure that allows complaints to be investigated by the legislative department.
5. JKL should evaluate the effectiveness of the change process every 6 months.

References

ADP; Corporate Leaders 2015, ‘Globalization of HR and how digital transformation can help’, ADP; Corporate Leaders, USA.

Australia Government 2018, Employment contracts, viewed 21 April 2018, <https://www.fairwork.gov.au/awards-and-agreements/employment-contracts>.

Australian Government 2016, Analysis of trends in the Australian labor market, viewed 20 April 2018, <https://www.jobs.gov.au/annual-report-2016/analysis-trends-australian-labor-market>.

Baron, A, Clake, R, Turner, P & Pass, S 2010, ‘Workforce planning: Right people, right time and right skills’, CIPD, London.

Bridge Business College 2018, ‘Recruitment and workforce planning: JKL Industries case study’, Bridge Business College, Australia.

Chandani, A, Mehta, M, Mall, A & Khokhar, V 2016, ‘Employee engagement: A review paper on factors affecting employee engagement’, Indian Journal of Science and Technology, vol 9, no. 15, pp. 1-7.

Chasteen, C 2014, Employment and unemployment rates as measures of the supply and demand of labor, Economic Research Institute, USA.

Cicek, I & Ozer, B 2011, ‘The effect of outsourcing human resource on organizational performance: The role of organizational culture’, International Journal of Business and Management Studies, vol 2, pp. 131-144.

Dalluay, V & Jalagat, R 2015, ‘Cross-cultural management of culturally diverse workforce: A challenge facing managers in the global workplace ‘, International Journal of Science and Research (IJSR), vol 5, no. 11, pp. 663-668.

Deloitte Development LLC. 2017, ‘Unleashing the power of inclusion: Attracting and engaging the evolving workforce’, Deloitte Development LLC., USA.

Holland, P, Sheehan, C & Pyman, A 2015, ‘Attracting and retaining talent: Exploring human resources development trends in Australia’, Monash University, Australia.

Imperial College 2014, Assessment Centres, viewed 20 April 2018, <https://www.imperial.ac.uk/media/imperial-college/administration-and-support-services/careers-service/public/resources/handouts/series/Assessment-Centres-no-cropmarks.pdf>.

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Mavromaras, K, Healy, J, Richardson, S, Sloane, P, Wei, Z & Zhu, R 2013, ‘Final report to the Australian Workforce and Productivity Agency (AWPA) by the national institute of labor studies (NILS)’, National Institute of Labor Studies, Australia.

Muthukumaran, M & Lavanya, K 2013, ‘Reducing employee turnover: A retention strategy’, Acta de Gerencia Ciencia, vol 1, no. 2, pp. 21-26.

Northwestern University Information Technology 2011, ‘Change management process’, Northwestern University Information Technology, USA.

Oke, A, Aigbavboa, C & Khangale, T 2018, ‘Effect of skills shortage on sustainable construction’, in Advances in human factors, sustainable urban planning and infrastructure, advances in intelligent systems and computing, Springer International Publishing, Switzerland.

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Somjai, S 2017, ‘Advantages and disadvantages of outsourcing’, The Business and Management Review, vol 9, no. 1, pp. 157-160.

Studzinski, H & Eccleston, D 2014, ‘How to create an employee engagement survey’, The Insights Group Ltd, UK.