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Question1: WHAT IS HUMAN RESOURCE PLANNING? The term human resource implies human capital that operates an organization. The word planning suggests a course of action. And lastly, process is the method of operation. Thus, the human resource planning process is defined as, 'a course of action that the human capital takes up for a methodical achievement of predetermined goals'. The definition of human resource does not end here. The term includes, its management, which primarily involves issues related to the workforce. Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. A company may have all the financial resources it may need. But what if the manpower employed to manage the finances isn't well trained? Well, nothing more than your finances going down the drain. Improper human capital may gain the output, but not the desired one in terms of quality. As the earlier mentioned definition suggests, the human resource management means managing your valued assets. The term human resource management has replaced personnel management. However, the meaning is still the same. It involves, employing, developing, utilizing, managing and understanding the staff in an organization. Human resources planning refers to classic HR administrative functions, and the evaluation and identification of human resources requirements for meeting organizational goals. It also requires an assessment of the availability of the qualified resources that will be needed. Human resources planning should be a key component of nearly every corporations strategic business planning. To ensure their competitive advantage in the marketplace, organizations must implement innovative strategies that are designed to enhance their employee retention rate and recruit fresh talent into their companies.
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Importance of Human Resource Management Since the industrial revolution, the world has progressed tremendously. Be it the steel industry, IT, fashion houses or housing sectors, development in all of these is evident. However, over the ages man has indiscriminately used and abused the natural resources available to him. It has resulted in a global energy crises and depletion of resources in general. In this backdrop, what remains is an abundance of human resource, or let's say human capital. To achieve any more goals, tapping the right kind of human resource is the key. You may have a business house worth millions of dollars. But what if there isn't the manpower that suits the
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Steps in the Human Resource Planning Process 1. Designing the Management System
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A crosscutting issue in human resource planning is to ensure that a proper system is in place to handle the process. The overall aim of this system is to manage human resources in line with organizational goals. The system is in charge of human resource
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2. Environmental Analysis
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The first step in the human resource planning process is to understand the context of human resource management. Human resource managers should understand both internal and external environments. Data on external environments includes the following: the general status of the economy, industry, technology and competition; labor market regulations and trends; unemployment rate; skills available; and the age and sex distribution of the labor force. Internal data required include short- and long-term organizational plans and strategies and the current status of the organization's human resources.
The aim of forecasting is to determine the number and type of employees needed in the future. Forecasting should consider the past and the present requirements as well as future organizational directions. Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units.
4. Analyzing Supply
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Organizations can hire personnel from internal and external sources. The skill inventories method is one of the techniques used to keep track of internal supply. Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. A forecast of the supply of employees projected
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The final step in human resource planning is developing action plans based on the gathered data, analysis and available alternatives. The key issue is that the plans should be acceptable to both top management and employees. Plans should be prioritized and their key players and barriers to success identified. Some of these plans include employee utilization plan, appraisal plan, training and management development plan and human resource supply plan.
Organizations use strategic planning to achieve goals. This relates to the organization's vision, mission and strategic objectives. An organization must analyze its future employment needs. If an organization decides it must increase productivity by 25 percent, it may need to grow its workforce by 2 percent. If an organization wants to increase market share by moving offices into new locations, it must consider the human resource requirements.
With future workforce needs considered, human resource planning must analyze the competency of the present workforce. Comparing future needs with current workforce strengths and abilities will identify gaps or surpluses.
3) Future Preparation:
Considering workforce surpluses and deficits, human resources must prepare action plans for the workforce. This includes identifying the type and number of employees needed,
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Ensuring objectives are being met by the future workforce requires an evaluation process. This will determine if the workforce is adequate to satisfy strategic goals. Planning for this process now will more easily and quickly identify future workforce gaps or surpluses.
What Is the Most Important Step for Human Resource Planning? The first step in human resources planning is projecting workforce needs and determining the resources necessary to meet those needs. This stage in human resources planning includes establishing workforce goals, such as creating staffing models, performance management standards, compensation and benefits, and training and development. Within those steps are several activities designed to enhance employee satisfaction, motivation and productivity. Human resource metrics is another aspect essential to the planning stages. Of the common five to six steps in the human resources planning process, projecting workforce needs is the most important. A. Staffing Needs:
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Human resources planning requires careful attention to staffing needs. Determining your staffing needs can mean the difference between a company that struggles to meet payroll and a profitable, successful organization. Startup companies experience difficulties in developing staffing models that work the first time around -they are subject to incur expenses related to recruiting, training and employee turnover. The best way to prevent unnecessary staffing expenses is to create a model that aligns your business goals with the types of skill sets required to accomplish your objectives.
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Once you determine the qualifications and skill sets your company needs to achieve its business goals, your next step is to identify the availability of workers in the labor market who possess those skills. For some occupations, there is an abundance of talent in the labor market. For other jobs, finding employees can be quite a task, especially with shortages of qualified and available workers in fields such as health care and computer science. Attracting, recruiting and interviewing applicants are components of the overall employment process. Effective recruitment and selection processes save time and money. Turnover is costly for both startups and established businesses. Therefore, the ultimate goal is to make wise hiring decisions that result in higher levels of employee retention.
C. Employee Satisfaction:
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Assigning job duties, tasks and responsibilities according to qualifications and criteria is to putting the right people in the right jobs. Employees whose skills are underutilized become dissatisfied when their job duties are not challenging. For many employees, mundane and uninteresting work causes their motivation and engagement levels to drop. You accomplish high levels of employee satisfaction through acknowledging employee talents and, if at all possible, modifying job responsibilities to match the employee's talents. For future roles within the company, recognize aptitude and offer training opportunities for employees who demonstrate the ability to accept more responsible positions.
D. Performance Management:
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In addition to judging your staffing needs, assigning challenging duties and maintaining employee satisfaction, another aspect of meeting workforce needs is providing the means for employees to continually improve their performance. Performance management goals and standards support the workforce through constructive feedback, mentoring and establishing employee goals. Performance management systems -- including performance appraisals -- improve productivity and job competencies and must, therefore, become integral parts of human resources planning.
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Human Resources, or HR, may be the most important department in a company. It is the only department that affects every single employee from top to bottom, and is responsible for managing what is almost always the single greatest expenditure for a company---employee costs.
As Workforce.com puts it, "A comprehensive Human Resource Strategy plays a vital role in the achievement of an organizations overall strategic objectives." An HR department that is well-versed and experienced in planning can make a company much more productive and cost-efficient. It can also make a real difference in the employees morale if workers know that decisions affecting their careers are being made in accordance with thoughtful, proactive analysis instead of last-minute reactive actions. The importances are as follows: i.
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Minimizing wasted dollars on excess personnel. A small company that can get by with nine people but has 10 on staff wastes nearly 10 percent of personnel costs that could be used elsewhere. While this may only be $30,000 to a small company, the costs, following the 10 percent model, may waste of millions of dollars for larger companies. Conversely, having too many tasks for too few personnel can cause stress to build up to a critical level as people struggle to get the job done. Matching the number of people needed to complete the tasks is critical for any company's profit.
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Forecasting future needs and expenses. Situations change and so do human resource needs. Long-term forecasting allows a company to make tactical plans to meet those needs. For instance, an expansion of the
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Scheduling productivity---meeting workflow. Some companies schedule more than one work shifts, though staffing levels may differ between each. It's this type of planning when the production department and HR have to work together. If a big bump in orders is coming in 60 days, the need for overtime may be apparent to production but not to HR, which may consider that period prime time for allowing vacations.
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Hiring HR plans for workers being replaced because of personnel losses, what personnel resources are available in the community, how to best reach those resources, and what they need in the way of salaries and benefits to become part of the company. Interviewing and selecting new hires is, at best, an inexact science. It's never known until weeks, and perhaps months, go by whether someone will work out. But the better the HR department has planned the company's needs, the better it works out. Constant communications between management, HR and other departments creates an environment where planning becomes an everyday part of the hiring process.
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Training HR may be heavily involved in the training process for the employees. Effective training can't be done without a plan that details what knowledge needs to be communicated, who will provide the training and how the training will be done. The HR department that ensures employees are thoroughly trained and competent makes the difference in productivity, reliability and employee safety.
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CONCLUSION An HR department that is well-versed and experienced in planning can make a company much more productive and cost-efficient. It can also make a real difference in the employees morale if workers know that decisions affecting their careers are being made in accordance with thoughtful, proactive analysis instead of last-minute reactive actions.HR planning is very important in an organisation,for the owners and the employees also. It deals with the protocols of the particular organization.
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