Lesson 1, Topic 1
In Progress

2.3. The internal and external factors of human resources capacity that impact on a specific tender are determined for own business.

ryanrori January 7, 2021

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Internal factors:

  • Not enough staff capacity to complete the tender in the specified time allowed.
  • Existing staff needs to be trained (costly) to accommodate new products.
  • New staff needs to go through an extensive training programme to have the same skills as the existing staff.
  • If it is a small business existing personnel can get frustrated as there is no means for promotion to a higher position. 

External factors

  • If a business has to employ highly skilled personnel and there are no such persons available in the open market.
  • Authority to execute contracts. Only duly appointed Contracting Officers may enter into a contract on behalf of the government.
  • Access to tendering information – difficulty in obtaining accurate and timely information about tendering opportunities.
  • Cut–off times.

If you plan to carry out a tender effectively, you have to plan your capacity.  The capacity of a business is the greatest possible workload that a business can handle within a certain period.

You need to calculate your maximum output, or the maximum output of the various operations units.  An operations unit may be a machine, a group of machines, or a group of workers, with or without machines.

Labour capacity planning:

Selloane Radebe manufactures T-shirts and is successfully awarded a tender to make 1000 T-shirts for council workers that need to be delivered within 30 days.

To determine the quantity of workers and machines she will need, she must determine the standard time that it takes to make one item.  There are many ways in which standard times can be calculated.  However, Selloane Radebe decides that she will record the time that she spends to make one T-shirt.  This will give her an indication of the standard time.  Once Selloane Radebe has made a good quantity of T-shirts, she calculates that it takes her one-hour to make one T-shirt.

T-Shirts         1000 x 1 hour = 1000 hours

Selloane Radebe expects to work 8 hours per day for five days per week, usually 22 days per month.  The total available and effective time is therefore:

22days x 8hours = 176 working hours in a month

She can now easily calculate the amount of workers she will need to hire to accommodate the tender contract:

Amount of work (in hours) per month         =       1000

Number of hours available per worker        =       176

Number of workers needed             =       1000 ÷ 176

                                                          5.6 workers

Selloane Radebe must therefore appoint 6 workers (including herself) to handle the workload for the month.