MFI-B was an NGO micro finance organization that was dealing with community development activities and formation through the advancement of loans to its clients. MFI-B got its funds from different organizations. Its main business strategy was an expansion in the form of its loan portfolio. With this, this organization could increase its borrowing capacity to its clients and ultimately alleviate poverty in the community.
The leadership of the organization was very weak and inexperienced in matters to do with financial planning and budgeting. This is because; the community leader overtook leadership role without scanning the situation in which the organization was facing, and took up major financial decisions that could adversely affect the organization. I would term the decision to expand the organization’s lending base as a bad move because of its weak accounting system and lack of internal control systems.
Introduction of MFI-B in planning (definition, planning, problems, and solutions): Human resource planning involves activities of the organization. The activities make sure that the organization has a work force with the right number of employees now and in the future. It is a management strategy that ensures that the organization achieves its objectives by employing a wok force that is capable of performing its job well.
The problems faced by MFI-B are that the organization has a poor planning system of its employees, compensation management, organization structure, staff motivation, training and development. From the case study, the organization is facing labor shortages and this affects the motivation of its employees. The solutions to the problems the organization is facing regarding human resource planning are; first to create a need of human resource planning as part of its core activities.
Secondly, the organization has to conduct a demand forecast to know exactly how many staff it needs and if there are any shortages. Thirdly, the organization has to carry out supply forecast analysis to determine whether the organization has to recruit labor force from within or from outside the organization. The final step is to determine whether a gap exist between the demand and supply.
An action has to be performed in the case where there is a shortage of labor or excess of labor. If there is a shortage of labor, then the organization has to consider recruitment, training and development, motivating, and improving the work environment to retain the existing employees. If, on the other hand, if supply is more than the demand, the organization has to lay off the excess employees or transfer them to other organizations or departments.
Introduction of MFI-B in recruitment (definition, planning, problems, and solutions): Recruitment as a human resource activity involves the activities directed towards ensuring that the organization achieves its objectives through finding and engaging the correct people. It deals with the definition of recruitment requirements such as person’s specifications, role profiles and outlines the terms and condition of the work.
It also includes planning of the recruitment process which covers issues such as planning for the number of employees required, the sources for tapping new employees, planning for alternative sources for tapping of employees and plans for the recruitment programs. The recruitment problems that MFI-B organization is facing include the encouragement of external recruitment to internal recruitment.
From the case study, it shows that out of the total recruitment done 60% of those employed are from the external market, and only 40% are from the internal sources. External sourcing is more expensive to the organization than internal sourcing. This is because of the costs incurred such as induction cost, and the time wasted by the new employees to bond with the existing employees and the time wasted by the new employees as they adjust to the new situation of the job.
The organization does not conduct any background checks to determine the suitability of the candidate. To curb the recruitment problems identified, the organization has to encourage internal sourcing to save on the organization costs. The organization also has to conduct a background check for all the potential recruits to enable it to know the suitability of the candidate to handle the job.
Introduction of MFI-B in deployment functions (definition, planning, problems, and solutions): Deployment is the strategic and systematic process of placing the employees within an organization with the aim of achieving the goals and objectives of the organization.
To achieve the advantages of deployment, employees joining the organization have to be trained on the roles of the jobs. The organization has to ensure that organizational structures are intact, and all the departments clearly outlined for proper deployment of employees. The problems that MFI-B is facing are lack of well outlined organization structures and thus become a challenge when deploying its employees.
Another problem is that the employees from other programs who have come to work at MFI-B receive no training or orientation. The other new comers receive only two days on the job training which is not sufficient. The occasional training offered to the staff has to be planned if the organization wants to achieve its goals. The solutions to the problems addressed above are that the organization has to outline clearly defined organization structures with clearly outlined departments and roles required per department.
For the organization to ensure that its employees fit well and adjust to the new organizational settings, the period of training and orientation of new employees has to be adequate. The organization should also budget for the funds and come up with a well-defined training program to achieve its objectives. Training is an important tool for succession planning.