How to manage human resources in a small organisation

20 May 2009, Human Resources Magazine

Many small business owners can not justify a dedicated HR resource. As a result they manage their business obligations internally. These obligations can include anything from writing a new contract to tackling health and safety issues. For bosses to maintain a competitive business, it is vital that they not only understand these obligations but also know how to manage them efficiently. The business environment today is more competitive than ever, so having a dedicated workforce is an invaluable asset to any business. Powwownow is a growing business and our success wouldn't be possible if I didn't have the right people on board. Getting the right team in place starts with the recruitment process - you have to ensure you really understand the role that you have to fill and the type person both you and your team can work with. By getting this right, you will ensure the team gels so they work hard for themselves and for each other. Once you have made your selection, spend time getting to know them and let them get to know you too. Find out what makes them tick and learn how to work with them to get the best results. Give them the leadership that they require, set them achievable goals and back all of that up with great motivation and training; thus giving them all the tools they need to make their own contribution to the success of the business. As a boss, you set the strategy for the business and work with your teams to deliver on this strategy whilst constantly keeping an eye on the bottom line. Complying with employment obligations on top of all that can sometimes just feel like an added job to do on the list.

It is not surprising when it comes to managing obligations - whether it's calculating an employee's maternity leave or providing them with a work contract - some bosses believe they need to draw in external help. Some will say that employment obligations are complicated and some may say they don't have the time to manage them themselves. But I want to tell other business bosses that it can be much simpler than you think and by taking control of your obligations personally, you could not only save time and money but also ensure you are much more in control and confident in running your business day-to-day. There is plenty of free advice available on how to deal with any situation that arises from all your employment obligations - it is readily available and it can come from a number of sources. One area I have found for great advice is knowledge sharing with other entrepreneurs and small business owners - there are clubs throughout the UK for entrepreneurs, and by joining these you can speak with other like-minded individuals that can give you the confidence that you are doing the right thing. More specifically, when you are starting up a new business, you may also wish to get free advice from the major banks. The Managers are trained to help you through the early stages of business start ups and who knows, they might also lend you some money. Many small business owners need to overcome any negative preconceptions they may hold over the value of free advice - some people wrongly believe that just because it is free, that it is not worth anything. They think that the best advice is paid-for advice. In fact, the best piece of business advice I received was indeed free - I was at a networking event where I met a brand expert who gave me some invaluable insight into my business idea. This resulted in me taking a simple action which directly led to a huge boost in company turnover and profitability. I am always amazed by how many small business owners pay for external consultants to help them manage their business obligations. A survey by the Department for Business (BERR) found that 100,000 small businesses in the UK are spending a combined 100 million a year on advice that they might otherwise be able to get for free. There is a real opportunity for small business owners to find everything they need to manage their business on the internet and it doesn't take long to source. The best place to start is looking at www.businesslink.gov.uk/employingpeople where the government has placed free online tools, advice and resources to help you manage all aspects of your employment and HR obligations. In my business, I sadly had to make the decision to make someone redundant. I could have paid huge amounts to someone to help me do this but actually I found everything I needed on the Business Link website. By managing the process myself and by being knowledgeable and confident about my obligations and the process involved, I was able to make it as painless as possible for me and as painless as possible for the employee in what is often a very difficult situation for both parties. As a small business owner, you often have to perform a number of different roles and just

one of these is performing the role of your own internal HR team. Thankfully, this is much simpler than you may think.

Very few small businesses can afford to employ a full-time human resources manager. But personnel issues are too important to leave up to chance. Every organisation should have a strategy to deal with areas such as training, maternity cover, keeping staff informed, health and safety and pay awards. Putting a senior manager in charge of ensuring all these areas are covered highlights the importance of human resources (HR) to the rest of the organisation. The manager should review the system regularly and make sure staff know that it is there for them too. Keeping staff informed Making sure that employees know what's happening in their own organisation and the wider industry is important whatever the size of the company. Lack of information can spark rumours and dent morale. But information overload is just as destructive because employees won't have time to read it and might miss important news. Some information is best relayed face to face. If you're holding a meeting remember to include workers who aren't always in the office: part-time staff and home workers, people who work shifts and employees who are "on the road". Try to choose a time when most people can attend and make sure anyone who misses the meeting knows what has happened.

Information which is very important, or which is unlikely to change over time is best conveyed in writing. Consider the following: Company or employee handbook. This could include terms and conditions of employment, company rules and facilities such as corporate gym membership. Noticeboards. Make sure they're placed where everyone will see them and that they're kept up to date. Pay packet or notification. This is one piece of paper that most people study thoroughly. House journals and newsletters. These usually also convey social news and can be a good way of boosting team spirit. New media. Emails, an intranet (internal computer network) or text messages are handy ways of conveying short pieces of information. Their disadvantage is that there are easily deleted.

Human Resources
Overview
Is the information technology department avoiding your phone calls? Do you have a cool idea to increase office productivity? You can't tell the difference between your IRA and 401(k) plan? It might be time to talk to someone in your human resources department. What You'll Do Human resources (HR) is a general term meant to cover a wide range of activities. Some of the work that falls to HR professionals includes hiring and firing employees, creating organizational charts and shaping corporate culture after a merger or acquisition, managing employee communications, settling employee disputes, creating benefits programs, navigating government regulations, dealing with legal issues such

as sexual harassment and occupational safety, and setting up policy and programs for measuring performance, compensating, recognizing, and training employees. In other words, HR doesn't consist of a single activity or function but a huge network of them; basically, HR refers to everything related to the employer/employee relationship. Both specialists and generalists can find a home here, with specialist tracks ranging from training to pension plan administration to legal compliance. In HR, there's something for just about everyone. Long considered a support role, in recent years HR has taken on an increasingly strategic dimension in the world of business as managers have recognized employees as a source of competitive advantage. Companies like Southwest Airlines, Nokia, Intel, The Container Store, Edward Jones, and others have shown that HR practices that create supportive environments for employees and strong corporate cultures can lead to superior returns for shareholders by being more innovative, efficient, and productive than their peers. Meanwhile, globalization has complicated the HR role, creating new challenges, such as managing employees and overseeing employee regulations in different countries and cultures, while technology has created a new array of opportunities for streamlining HR administration and practiceeverything from putting benefits programs online to e-learning to automating payroll and other administrative HR tasks. Of course, the responsibilities and activities of HR practitioners vary depending on the size of company. At a small company, the HR pro will usually wear many hats, whereas at bigger companies you'll find both generalist and specialist HR roles. Large Fortune 500 companies, for instance, divide HR into corporate and field operations, with those on the corporate side setting policy and those in the field working with divisions to implement programs and handle day-to-day issues. Many smaller and midsized businesses, or those of less than 1,000 employees, are increasingly outsourcing some or even all of the HR functions. A few responsibilities that fall to HR in both small and large organizations, such as staffing and executive recruitment, compensation and benefits consulting, and HR systems, have grown into multibillion-dollar service sectors designed to support in-house HR functions. Who Does Well Human resources acts as the mediator between an organization's management and its workers. This requires wearing many hats: It's an HR administrator's job to make sure that employees are working in a safe environment, that disputes are settled, and that benefits are understood and functioning properly. At the same time, HR is charged with recruiting new employees who will both fit in well and help the company achieve profitability. They also represent management when negotiating for benefits with companies administering these benefits and when implementing companywide policies that will ultimately lower costs or boost profits. The needs of HR cover a wide range of tasks and, therefore, require someone who is not only good with people, but also organized, analytical, business-minded, and able to juggle many projects at once.

Requirements
You'll need at least a bachelor's degree for most entry-level jobs, although it may be possible to find a few HR assistant positions with an associate's degree in hand. Most BA-level jobs in HR start at the assistant level. To become an HR manager in a large corporation or an analyst in a specialty area, you will need an MBA, an MHRM (master of human resources management), an MS, or some type of certification. Degrees in human resources, personnel administration, industrial relations, labor relations, and industrial engineering are typical. Given the interdisciplinary nature of HR, other relevant coursework might include business administration,

public administration, psychology, sociology, political science, economics, and statistics. One HR manager at a smaller firm suggests that interested candidates take classes in organizational behaviorafter all, you'll be dealing with how people behave in groups. Of course, if you know you're planning to specialize, you'll want to consider taking courses in such subjects as finance, labor relations, education, and instructional technology. Some positions, including compensation specialists, labor relations workers, and benefits managers, require legal expertise-coursework in labor law, collective bargaining, labor economics, labor history, and industrial psychology would be appropriate for those specializations. In addition, all human resources professionals tend to share the following traits: Ability to think critically and analytically Strong oral and written communication skills Business focus Ability to work with people of various cultural and educational backgrounds Computer savvy Ability to quickly switch gears, for example, from administrator to counselor to negotiator

Job Outlook
Prospects for HR jobs are better than for the economy overall. Some sectors will likely see greater growth and, with it, a greater demand for HR professionals. Computer and data processing services represent the area of fastest growth, followed by residential care and home health care. This reflects a general truism within HR: Changes in lifestyle and population trends are reflected in HR opportunities. One such example, related to the aging U.S. population, is the need for more human resources workers in hospitals and in health allied services. Hospitals ranked eighth in overall projected HR employment for 2010, and allied health ranked eighth in percentage change from 2000 to 2010. Another area of expected growth isn't an industry per se, but rather the area of specialized HR business services. The staffing industry is rated fourth by the BLS as an area of expected growth by the end of the decade. Both BLS statistics and SHRM studies indicate that specialized third-party firms dealing in compensation, legal services, and benefits will also grow.

Career Tracks
Specific HR tasks depend on the size and unique characteristics of an organization. The majority of HR practitioners are in-house staff members who serve other diverse departments in a company. However, it's becoming more common to outsource certain HR functions, particularly recruitment. HR Generalists Small organizations usually hire an HR generalist to handle all aspects of personnel management, including attracting and retaining employees, arranging and overseeing training, designing compensation plans, selecting and managing benefit programs, and advising management on employment law. HR generalists must have comprehensive knowledge and understanding of the HR field. HR Management At the top of a large organization's HR department is the director of human resources. This individual is an accomplished manager who is responsible for developing and implementing personnel decisions

throughout a company. He or she works with employment managers and placement managers who oversee departments or deal with specific issues within an organization such as compensation, benefits, or outsourcing. Compensation Manager The compensation manager (CM) sets the pay rates and performance pay plans within an organization. Surveys are conducted to compare current pay rates to others in the industry. The CM makes sure pay plans comply with changing laws and regulations. A keen understanding of financial planning and forecasting is required. Employee Benefits Manager Businesses rely heavily on benefit packages-insurance plans and pension plans-to attract and retain employees. Unfortunately, the cost of such benefits can eat into a company's bottom line. The employee benefits manager needs to understand changing laws and regulations regarding benefit options. He or she must also be able to analyze benefit packages and select the one that best meets the needs of an organization and its employees. Recruiters Recruiters can be found both in-house and with outside organizations. Many in-house recruiters specialize in one area, such as on-campus interviews. Recruiters who work outside a company may also have areas of specialization, such as technical or executive recruiting. They work with hiring managers to define managers' employment needs and must therefore be very familiar with every organization they work for. Recruiters need to know what the best ways are to attract potential employees, such as running ads, searching the Internet, attending job fairs, and interviewing at schools. Recruiters communicate with prospective employees about personnel policies, wages, benefit packages, working conditions, and promotional opportunities. Recruiters also screen, interview, test, and check the references of applicants. Trainers Many larger organizations hire people to supervise their employee-training programs. Responsibilities may include orienting new employees, providing on-the-job training, updating professional skills, and preparing lower-level workers for management positions. Some trainers also work at developing supervisors' interpersonal skills. HR Consultants HR consultants are contractors who provide advice on compensation, benefit administration, employee relations, training, and HR information systems. Professional entry-level positions, usually involving analysis or report generation, are quite competitive and exist in all categories except employee relations. Outplacement Specialist Outplacement specialists work with employees whose employment has been terminated. They provide company-sponsored assistance in identifying career directions, marketing, and rsum preparation. These positions can be either in-house or outsourced.

FOR Large Organization

HRM in Large Organizations
Based on Human Resource Management in a Business Context by Alan Price published by Cengage Learning Contents Objectives The purpose of this chapter is to: - Investigate why organizations structure their people management systems in different ways. - Determine the influence of organizational goals on the management of human resources. - Outline the advantages and disadvantages of alternative organizational structures. - Compare and contrast the work of human resource specialists in different forms of organization. Dimensions of organization Dimensions of organization Organizations and the business environment Organizational goals Size Cooperatives Cooperatives Managerial structures Structure Functional structures Divisional organizations Federations

 Matrix Organizations New structures Networks Virtual organizations Flexibility Summary Organizations are taking increasingly divergent forms. The key dimensions of size and structure which constrain the people function. HRM is conducted in a variety of ways, due to these constraints and also because of strategic decisions taken to meet organizational goals. Businesses can choose to vary their structures and their people management systems for a number of reasons. Increasingly, flexibility is required from employees and managers to meet new circumstances. Centralized personnel departments have been largely replaced with more specialized units, some of which may be sub-contracted outside the organization. Nevertheless there are opportunities for human resource specialists dealing with complex issues arising from new organizational structures and flexible working patterns. These include contract arrangements, selection, control, assessment and training.

Why has this debate occurred and what is the future for HRP within a large organisation today? Introduction:
The approaches to human resources planning in work organisations today are much more different than what it was decades ago. Much of the debates reflecting this change

in emphasis center on the role that human resource planning plays in the core strategies of small and large organisations. There has been a considerable deliberation among human resource planners on what aspects of human resource planning and management should be among the priority considerations in view of ongoing changes in almost all aspect of life today. Changing social, technical, political, economic, spiritual, and business environmental conditions have brought about these raging debates in planning and policy discussions within organisations. The complexity in managing large work organisations has largely increased due to several key considerations about the supply and demand of HR practitioners and skilled personnel in the different industries. Smaller organisations have been challenged to prepare for future human resources expansions. While the structure and size of organisations will not determine choices about human resources, research has shown that it can have a very strong influence on the way human resources are managed, regulated, and planned (Newell and Scarborough, 2002, p. 26). Human Resource Planning (HRP) for large organisations is quite different from smaller organisations in different contexts and aspects. These major differences can be found in the way these organisations cover the areas of Human Resource Management (HRM) like recruitment, promotion, performance appraisal, compensation, training, and development, labor relations, job designs, and career development. Governments around the world have come to realize that human resources have a crucial role in meeting the challenges of public service and global competition. According to Canave (2003, p.41), in the Philippines for example, the thrust of the Civil Service Commission (CSC) is to professionalize and humanize the bureaucracy. The CSC is a central personnel agency and quasi-judicial tribunal responsible for recruitment, maintenance and discipline of civil servants of the country's 1.4 million public servants. Human resource planning for such a very large organisation is not simple and easy. It cannot be denied that HRM practices of an organisation can be an important source of competitive advantage. Kleiman (2001, p. 9) says that HRM practices enhance a firm's competitive advantage by creating both cost leadership and product differentiation. Employees are often viewed as the company's most valuable resource (Newell and Scarborough, 2002, p. 24). If people are truly an organisation's greatest assets, then their careful selection, development, and deployment can lead to a competitive advantage (Price). Accordingly, an effective HRP strategy provides the best option for supply of workers of organisations (Virtual University-Pakistan). But according to Thomas A Kochan and Lee Dyer (2001), many human resource functions today within many American corporations continue to be weak and relatively low in influence in relation to other managerial functions such as finance, marketing, and manufacturing. They stress that despite the outpouring of academic writing on strategic human resource management, not much progress has been made in developing systematic theory on the conditions under which human resources are elevated to a position where the firm sees and treats these issues as a source of competitive advantage.

People that make up organisations are the most important components for success. Internal and external factors that tend to influence the way people behave within the organisation have contributed to a lot of changes in HRM policies and planning techniques. The rapid changes in the field of work and working environments in recent years have caused great concern to the workforce. According to Cane (1996), there is a tendency for people going to work to get what they can out of it since that is the way they feel their employers treat them. People sometimes feel that their employers don't empathize with them about their economic and social plight. Miscommunications and other forms of organisational conflicts stem from the fact that people are sometimes not always considered and allowed to participate in the decision-making process. In the aspect of managing the organisation workforce, it is clear that where communication between the different levels and systems breaks down, there can be little workforce commitment to the organisation's goals (Cane, 1996, p.48). The idea of change and why it is important for the organisation cannot always be explained to the members of the organisation by management. There is a genuine sense of fear of change and it is natural for people to avoid change, at all costs. In these times of uncertainty, people no longer feel secure working for a particular organisation or even a particular industry, and therefore they tend to feel little loyalty to it. Today, organisations are not just trimming fat off the meat. They are trimming the muscle. Part of today's mass layoffs caused by the need to cut down on redundant jobs and production costs is that organisations measure costs in terms of salaries, benefits, and overhead rather than in terms of the quality and quantity of work that people do. Different organisations, whether large or small, have different attitudes and approaches to deadlines and quality of work, handling of information, communication, leadership, and understanding of their organisational objectives. In today's HR practices, organisations tend to measure these approaches based on how new and emerging technologies and other government and industry regulations are currently affecting the business environment and job market. In human resource planning, new emphasis are placed on these attitudes and approaches in order to plan for change in the human resource aspect. Human Resource Planning (HRP) The effectiveness and efficiency of people within an organisation is often dependent on its operations. The goal of forecasting and planning is to keep and improve on the human resource assets of the organisation in order to meet their needs and objectives. Planning involves being able to provide the different manpower, economic, social, and business requirements of the organisation in future situations. Planning provides a sense of purpose and direction (Virtual University-Pakistan). The planning process forces organisations to make a thorough analysis and study of the current situation in terms of internal resources and how these resources are utilised. It is making a decision in advance on the different concerns and future actions of the organisation. It is related to how these aspects are organised and controlled under certain conditions that may arise in the future.

Human resource planning considers the current state of manpower resources and how this resource can be utilised for future adaptation to changes in the environment. It also provides a more effective and efficient use of manpower skills and knowledge. A good human resource plan creates more satisfied and more developed employees and provides an effective equal employment opportunity. Human resource planning is the process of systematically forecasting human resource requirements of an organisation such as skills, salaries, hiring needs, layoffs, and other human resources concerns. It also involves finding ways and means to reduce the number of employees if a surplus is projected. If there is a projected shortfall of skilled personnel because of the acquisition of new equipment or changes in business processes, then the human resource plan should be able to attract prospective employees from outside of the organisation. According to Milkovich and Boudreau (1997, p.142), planning is time consuming, expensive, and uncertain. It often does not produce accurate predictions or guarantee correct choices. They add that in a survey of general managers in large business units of Fortune 500 firms, it was found out that 82 percent of these managers considered human resource issues and costs in planning their business as important or very important. The fact is, human resource functions are the centerpiece of managers' rating criteria. Human Resource Activities Different human resource activities should be integrated in order to enhance the value of human resources. Planning should help ensure the balance of all the human resource activities of the organisations. These sets of activities are based on the recruitment and selection of the right candidates, pay scale determinants, employee appraisal, and many more. According to Milkovich and Boudreau (1997, p.1420, organisations that base their pay on performance don't necessarily perform better than those that don't. and organisations that select people very carefully don't necessarily perform better than those that select less. Benefits of HRP There are a lot of benefits associated with good human resource planning techniques. These benefits are primarily centered on the work quality or output and the general welfare of the workforce of the organisation. It helps in the proper distribution and assignment of jobs to the right personnel. It helps the organisation manage variations in staffing and recruitment. It also provides other relevant information about how the current human resources of the organisation are contributing to the successes or failures of key business processes. Milkovich and Boudreau (2002, p. 147) emphasizes the role of human resource planning in the framework of organisational competitiveness by finding new ways to increase the quality of human resources. According to them, sustainable competitive advantage derives from a resource-based view of organisations. Organisations influence the quality of the resources available to them and these resources do not necessarily move easily between organisations. A good human resource plan which cannot be easily copied sustains the competitiveness of organisations. Steps in HRP

The entire human resource planning process can be defined in the following steps (Virtual University-Pakistan): Determine the impact of organisational objectives on specific organizational units. By looking at the general objectives and how it affects the different entities and departments of the organisation, firms can start to identify the manpower concerns and needs in different departments and set their priorities. Determine the skills required to meet objectives. Changing business processes influenced by technological advances require new sets of skills in order to fulfill some of the organisation's objectives. It is important to determine which skills are more appropriate for future HR expansions and ulitisations. Determine additional human resource requirements in light of current requirements. It is not only appropriate to determine the labour supply and demand. There are intangible requirements for today's diverse workforce. Workers demand new benefits and compensation packages. Businesses demand new sets of skills and commitments from their employees. Determining these requirements for the formulation of the HR plan needs to consider both sides of the labour relationship. Trade unions demand new provisions in their collective bargaining agreements. Develop action plans to meet the anticipated HR needs. Should there be emergencies and unexpected disruptions, the HR plan should be able to provide the appropriate actions to meet these crises as they arise. Organisations in general are not complacent about events that might occur in the future. Workers should be able to provide the immediate needs of the organisation and the organisation should be able to provide the right remuneration packages to their workers. Importance of HRP According to Newell and Scarborough (2002, p. 83), there is little evidence to suggest that many organisations actually operate strategically rather than making resource decisions on an informal basis. They view the role of human resource functions within organisations as one of the most importance factors that influence certain strategies and decisions. They add that for human resource planning to be strategic, it need to take place within an organisation where human resource issues are seen as central to business strategy, which is closely related to issues to do with the status and power of the human resource functions within the organisation. There has been a marked increase on emphasis on HRP in recent years. Recent global developments in the economic and political front calls for the need to adapt to new requirements in skills, labor costs, labor demands and supplies, and business practices. The liberalization of trade and globalization of businesses has been one of the key factors pushing for the need to concentrate on adapting the human resource management and policies to the needs and trends of the world economy. New technologies and how these are slowly being incorporated into the overall corporate plans of large and small organisations are changing the face of planning approaches at a rate where planning is no longer confined to traditional methods for achieving results.

In relation to changing technologies are the changing skill levels and types. Certain skills are no longer viable nowadays while new areas of developing skills are emerging. Training to improve on current skills need to be incorporated into the strategic plans of organisations. This would help ensure the continuity and acclimatization of skills with new global requirements. The reason for adapting HR policies and practices to emphasize more on HRP is to make sure that the organisation remains competitive in a global setting. This has come to light in recent years because of the need to make changes in the overall organisational structure and culture. Approaches to Human Resource Planning In view of this new emphasis on human resource planning in work organisations, there are different models by which they analyze what approach to take. According to Henry (1995), one useful model for analyzing what approach an organisation has to human resource planning can be described in the four main types of employment systems namely: 1. The internal labour market 2. The external labour market 3. The occupational labour market 4. The technical/industrial labour market The internal labour market refers to the structure of jobs within an organisation where it is characterized by the development of firm-specific skills, jobs are flexible and broadly defined, where long service is highly regarded, where employment security is high, and where there are few entry points into the firm. Usually, because long service is valued and staff turnover is kept at a minimum, this market provides a structure for promotions via a well-defined career ladder. Job satisfaction is usually high because the staff feels secured and well taken cared of. While most of what happens in the internal labour market is true to large work organisations, it is not usually the case to small firms. Henry (1995) argues that firms are not really in a good position to maintain staff satisfaction to the highest level possible. They are less likely to provide long term employment security to their staff because they are less likely to sustain the internal labour market. In reality, small firms are often vulnerable to external market forces that often results to movements in labour demands and needs. Small firms are also usually not in the position to match employment incentives and wages offered by larger firms. The external labour market is characterized by narrow jobs and lack of skills. There is usually a surplus of skills in the labour market. In view of this surplus, there is a minimal need for training. Deployment is tightly controlled by the employer. These contributing factors often results to low job security and low employee morale. The occupational labour market often focuses on the external labour market where skills are sought after. Jobs are controlled by occupation agreements and development activities are usually valued. The technical and industrial labour markets are often characterized by detailed agreements with trade unions through collective bargaining agreements or CBAs. Jobs are narrow and tightly defined by employers and CBAs.

Traditional Emphasis of HRP

Organisations usually treat human resource planning as a part of the overall strategic plan for the organisation. It is distinct and does not usually cover the other areas of the corporate model. It was usually thought that the organisation can survive with minimal human resource planning. Carter et al (2001) describes organisations in the 1960s as a lot simpler than today. It was simpler then because people didn't know very much and didn't know any better. Organisational development and personnel planning was new. People viewed training, process consultation, and team-building as activities which were solutions in order to search for other problems. How do organisations traditionally view human resource planning in general? Much of the answers here focus on planning activities that have taken place for several years and have been proven to work for small and large organisations. In planning for future opening of new jobs and assigning new roles to employees, small organisations can usually manage this scenario by waiting for these openings to develop and fill it as fast and as best as they can. But for larger organisations, some forecasting and careful planning is needed because of the greater change of encountering mistakes. According to Dessler (1978, p. 59), manpower plans are built on premises-basic assumptions about the future -and the purpose of forecasting is to develop these basic premises. In the case of personnel requirements, it is usually important to consider the supply and demand of the needed skills (both internal and external to the organisation), the current labour costs and economic conditions, and how it the job would fit into the department and the organisation as well. Some organisations manually keep lists of qualified and waiting candidates and their personnel records This is especially true to small organisations which cannot afford to automate their human resource functions or purchase human resource systems. Other organisations base their pay systems on performance and seniority. Others base these systems on educational qualifications and work experiences. Compensation and incentive plans involve paying them based on their output and time. Employees learn to be competitive and marketable by being paid on incentives. Promotions and reward systems are often based on job classification evaluation methods and performance appraisals. In extending other types of benefits to their employees, firms usually provide their employees with vacation and holiday pays, sick leaves, life insurance plans, hospitalization benefits, and retirement benefits. Company unions have existed for a while and they are usually in the forefront of the battle for bargaining power of workers. Organisations usually provide job enrichment programs designed to motivate individuals within the organisation perform better. Motivators usually come in the form of opportunities for growth into the job and reorganization of the individual's job so as to make it more interesting. The job is designed to be less specialized and more 'enriched.

Usually, this job enrichment program can be accomplished by giving the workers autonomy and allowing them to take part in the planning and decision-making process New Emphasis on HTP While most of the principles of human resource management still holds true today, industrial relations initiatives are affected by pressures, many of which are exerted by globalization. De Silva (ILO) asserts that changes in HR practices such as increased collective bargaining at enterprise level and flexibility in relation to forms and nature of employment functions and opportunities have occurred as a result of such factors as heightened competition, innovations, and the increasing importance of acquiring the right skills at the right time and at the right place. Most organisations nowadays see the need to automate their human resource transactions and records. They acknowledged the strategic importance of getting quick and accurate information about their personnel and staff. In most of today's networked environments, organisational boundaries extend beyond their geographical locations. Organisational units can be located in different places and time zones. Technology has contributed a lot in changing the nature and context of human resources in organisations. It has made it possible for dispersed organisational units to be constantly in touch with each other and share real-time information when needed. It has also assumed a new role in the performance of tasks usually done by human intervention. The labour front has a new battleground: labour costs. Most companies in Europe and the US have already relocated most of their offices and stores offshore where labour costs are cheap and government regulation policies encourage the entry of foreign companies to generate investments and create more jobs. The proliferation of call centers and IT consulting firms in countries like India, China, and the Philippines proves that labour costs, no matter how cheap, can still be well within the reach of companies. Outsourcing and renting out software applications from Application Service Providers have saved lots of organisations in operating and maintenance costs. Indeed, the business landscape nowadays has proven to be much more complicated and technologically-inclined that adapting traditional planning methods do not always guarantee success. In applying for a job nowadays, it is always wise to have the right knowledge and skills on the use of commercial software applications and office suites. For clerical and administrative positions, knowledge of office applications like word-processing programs, spreadsheets, presentations, and e-mail is required and often mandatory. This is because firms have considered investing on computer hardware and software packages in order to speed up and minimize the errors in their business operations. Candidates applying for clerical jobs who only know how to use the typewriter virtually have no place in the organisation which has already considered using computers and work processing programs in lieu of obsolete mechanical devices. For IT professionals, earning a computer science or IT bachelor's degree is not often enough to land them jobs in the IT sector. They need further training on specific areas of information technology like network and internet security and administration, database development

and administration, and e-commerce. Earning certifications on any of these areas can be plus factors also. New pay schemes and incentive plans are much more different now than before. Human resource planning would take into consideration other variables and metrics in enforcing these schemes. Employees would be compensated based on their new roles and new services that would would be rendering. Mission critical operations supported by computer application systems should be attended to immediately in case of problems regardless of the time and day it occurred. Government deregulation policies have had different consequences and eventually changed the business environment. The deregulation of the oil and telecommunications industries has removed monopolies that allowed other players to compete and offer alternatives to their customers. These policies however, have resulted to massive layoffs of companies who have, all the while enjoyed quite a bit of domination. Newell and Scarborough (2002, p. 89) say that in a number of countries, the recruitment and selection practices are influenced and supported by legislation which outlaws discrimination with regard to sex, race or age. In the UK for example, professional bodies like the UK Chartered Institute for Personnel and Development issues a code on the recruitment process. Publications made by the UK Equal Opportunities Commission also inform employers about the Fair and Efficient Selection process. Information now has a new role in the organisation. Technology enables the use of information not just for communications between internal and external organisational entities. It is also used for decision support and online analytical processing in real-time. Milkovich and Budreau (2002, p. 140) say that human resource planning gathers and uses information to support decisions about investing resources in human resource activities. his information includes future objectives, trends, and gaps between desired outcomes. Future of HRP within a large organisation today A big part of human resource planning should at least give some answers to the following questions like : 1. Where do we want to be (Demand Analysis)? 2. Where are we now (Internal Supply Analysis)? 3. Where will we be?(Internal Supply Analysis)? 4. Who is joining the organisation (External Supply Analysis)? 5. Who will be joining (External Supply Analysis)? According to Milkovich, G & Boudreau, J (1997, p.156), demand analysis describes the future human resource needs. Actual demand forecasts don't try to predict human needs down to the individual employee, competency or labor cost. These needs are summarized into key employee groups, key competencies, or diversity targets focusing on the critical ones. They also say that internal supply analysis is a matter of judgment; various techniques can make internal supply analysis more systematic and grounded in experience. External supply is created by the organisation's activities that attract and select job candidates. Unlike the internal supply analysis, this form of analysis focuses on the supply of employees projected to join the organisation from other outside.

Organisations should be prepared to be alert for any future form of changes. Both planning and strategy are dependent on some methods of forecasting the future (Price). HR strategies and plans are usually proactive and take a longer perspective. Large organisations have the power to make deliberate decisions about their products and markets, quality, standards, and are capable of deploying their human resources at any time and at any place. Most organisations involved in designing HRP techniques and methodologies put emphasis on creating environments for personal growths and skills enhancements. Unstable organisations would continue to study how to reduce redundant positions and functions in order to cut costs and lessen economic baggage. Established companies would continue to create more room for expansions and improve on their recruitment and selection processes. They would also continue to invest in human resource system applications and technology in order to collect the right information and aim for a more strategic use of human resource information. Knowledge derived from information systems would continue to evolve and be maximized for different strategic purposes. Job skills and job competencies will also continue to growth and improve as technology is embraced. Although it may not always be the case, at this point in time however, smaller organisations tend to look outwards for all means of support while established players and large organisations can afford to look inward and concentrate on protecting advantages rather than innovating on products and services. After the initial shakeout and industry stabilization, change is often largely incremental, consisting of add-ons to existing offerings by large organisations (Kanter, 1992, p.25). Large organisations can afford to protect their competitive advantage by employing effective human resource planning that utilises their other resources for creating a more stable but competitive environment for their workforce. For smaller organisations, change is largely a major concern with regards to policy formulation and human resource management. Globalization As globalization continues to hound smaller industries, larger organisations are more challenged to respond to a new order of communication and information and resource sharing. Most managers nowadays recognize the value of being connected with people at every level and of getting unfiltered information (Duck, 2001, p. 214). Planning for this course of action usually does not require an elaborate communication structure nor does it automatically consume much time. It usually comes from the initiatives of human resource planners to see to it that their business environment is conducive to change. Penetrating at the core of organisational culture and changing people's attitudes may present some challenges but a carefully crafted HR plan would eventually convince members of the organisation that the company is bent on creating an attractive environment where employees feel inspired and that it provides enough room for them to develop their own competencies. Large organisations today need to be aware of the dynamics (Duck, 2001, p.212). Organisations should know how change in one dimension could impact another. Human Resource Planning should take into account the rate at which technology changes and how technology would eventually be integrated into the overall business processes.

Technology opens opportunities to conduct formerly fragmented activities efficiently on a large scale-from a small custom crafting to a full-scale production (Kanter et al, 1992, p. 25). This can create future problems as redundant tasks are discovered and layoffs can be inevitable. Large organisations are more capable of providing retirement plans and compensation plans for workers who would be directly involved in future restructuring and reorganisations. It is therefore important for the human resource plan to consider the human, social, technological, and economic dimension of planned changes. The future of HRP looks bright as the different types of change initiatives observed in organisations like structural change, cost cutting change, process change and cultural change are being emphasized on human resource management. More and more organisations are slowly recognizing how external and internal factors affecting human resources are also affecting the organisation and the entire industry as well. For large organisations, a good human resource plan can help them protect their competitive advantage. It would also help them to adjust quickly to unexpected events. Mysterious operational and production problems that suddenly crop up that can't be resolved or a new IT system that suddenly malfunctions and disrupts the entire business operation are just some of the problems that large organisations have to be prepared for. Large organisations should also be prepared to meet new world standards of excellence and total quality of products and services. Preparing a good HR plan is needed in order to make future adjustments in costs, manpower, processes, and services. Different statistical forecasting approaches (trend analysis, ratio analysis, regression analysis) and judgmental methods (managerial judgment) available nowadays helps large organisations determine the demand and supply or labour in the labour market. Conclusion: The role of HRP in the future is getting bigger, better, complicated, and challenging. As the external environment changes, attention is slowly zeroing in on a more reliable business asset-human resources. As the internal environment also change, attention is also focusing more on the management of human resources. As regulations change, the heart of human resource policy considerations is on conformity to government labour laws and legislation. The change in emphasis and importance of human resource planning is due to changes in the organisation in general. Several internal and external factors contribute to these changes. Organisations now view human resources as one of the most vital assets to be carefully analyzed and planned for their future. Planning is the process that creates the link to everything within and outside of the organisation. A good human resource plan is a plan that helps employees and managers see how one of the most important resources of the organisation will be able to support the organisation's goal and mobilize other resources to sustain its competitiveness. There are common and modern views of human resource planning. The traditional views do not actually consider the importance of external and internal factors that account for change and adaptation in the molding of the organisation. New business conditions and emerging forces (globalization and changing customer

demographics) place new emphasis on the strategic role that HRP plays in the organisation. New technologies require new skills and up the levels of existing ones. New regulation policies of governments concerning social (discrimination and gender equality), political (protectionist policies) and economic (trade liberalization and tariffs) issues force organisations to rethink and reshape their human resource policies and existing practices. Debates would naturally center on these conditions. Some would argue that placing much emphasis on HRP would be to erode and loosen the organisational culture which highlights their identities and values. It would also signal the submission of organisations to policies which are seen as repressive, unjust and unfair. Those who place much emphasis on the relevance of HRP in the strategic planning process believe that change is a reality that all organisations must face in order to stay competitive. HRP takes management of the organisation to a new area of emphasis: the people. Changing the way people think, feel, hear, see, and believe in the human resource utilization and management through a good human resource plan will not only benefit the entire organisation and its people. In the long run, society will have organisations which are highly professional, ethical, and responsive to the needs of the whole world and its people.