The process that connects an organization’s strategic plan with its human resource needs is called human resource planning. The process ensures that staffing needs are addressed to achieve the organization’s objectives. Human resource planning is important because it helps an organization maintain a competitive edge and retain employees. Human resource planning determines the supply and demand of employees, according to the needs and wants of the business and its customers. The internal and external environment has an impact on the consideration of human resource planning. For instance, internal impacts are promotions, transfers, or firings, and external impacts can be changes in technology, the economy, or the industry. The competence and qualification of current and future employees and their career paths are more factors to consider when developing a human resource plan. These impacts can affect the staffing and human resource planning processes depending on the needs for a company to remain successful. Human resource planning is important and ongoing because of both internal and external environmental changes.
Planning and Strategic Development and Implementation
Human resource planning is identifying present and future needs of an organization to reach its goals (Obeidat, 2012). Human resource planning also involves predicting the demand and supply for employees, considering the business needs, and strategies for development and employment to meet requirements (Obeidat, 2012). The results will provide an analysis of human resource supply and future demand, which will identify gaps and most likely include staffing. Therefore, having knowledge of the goals and expectations of the company, can identify methods to reach these goals and track its progress. Planning in this manner allows a company to link resources with business performance. The results will identify the required number of qualified and competent candidates and this will help the business meet its goals and objectives. For instance, human resource planning and staffing connect by addressing the company’s direction, skills, knowledge, and abilities needed to follow a certain path. It also assesses the current competencies within the company and the gap between the direction and requirements to succeed.
Description of the Staffing Process
The eight elements of the staffing process are human resource planning, recruiting, selection, orientation, training and development, performance appraisal, compensation, and employment decisions (Plunkett, Allen, & Attner, 2013). Human resource planning involves assessing current employees, forecasting future demands, and constructing plans to add or transfer employees (Plunkett, Allen, & Attner, 2013). Recruiting involves looking for qualified people within or outside the company for vacant positions (Plunkett, Allen, & Attner, 2013). Selection is interviewing and testing candidates and hiring the best applicant(s). Orientation is when new employees learn about the fellowship. Training and development is when new employees learn their jobs and expand their skills. The performance appraisal is the origination of the touchstones for judging the workplace of employees (Plunkett, Allen, & Attner, 2013). Compensation is generating pay and benefits for each position. Employment decisions include promotions, demotions, transfers, layoffs, and firings (Plunkett, Allen, & Attner, 2013).
Elements and Activities
The proper planning, recruiting, and selecting of staff is an ongoing process. The hiring process is just the beginning of staffing. The human resource department must retain employees through training and development, performance appraisal, compensation, and employment decisions. The first step in human resource planning is the staffing process. The human resource planning process starts with a job analysis. A job analysis describes the skills, knowledge, and abilities required to perform each position. The job description will include what, how, and why employees perform his or her duties. It specifies minimum acceptable qualifications a candidate must possess to do the job effectively. A human resource inventory comes after the completion of the job analysis. The human resource inventory will categorize the needs and wants of the position. Afterwards, a human resource forecast is created to anticipate future demands for each position based on the plans, goals and objectives of the organization. Last, the forecast and inventory are compared to decide whether staffing needs will come from internal or external candidates.
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Activities and Planning, Development, & Implementation
The primary influence in the use of a company’s resources is the mission and vision of the organization. The mission and vision of the business provide the reason for the use of the resource. An effective and efficient business, strategic and business plans specify how its resources are managed and utilized. The most important resources a business must effectively use are: technology to create a product or deliver the service, the finances to pay for the requirements, and the skills and talents used by human beings to complete the job (Soberg, 2011). The business specifies the technology it needs to achieve the mission of the organization. The required technology will depend on the amount of product or service the company wishes to provide. The strategic plans and vision will be a factor in this decision to ensure it aligns with the goals of the company (Sober, 2011). The best fit for the organization and its mission will come down to the industry and what is currently utilized.
The financial aspect of the equation will specify how to produce money, control money, and foresee the revenue and expenses. The budget for a smooth, successful business operation will rely on the need for achievement in regards to the goals and objectives. The decision must include the cost of the entire operations including maintenance. For instance, the expenses cover purchasing, maintaining and adapting technology and compensating employees. The human benefactor is the knowledge, skills, and abilities utilized to generate and carry the product and service. People are an organization’s largest resource because products and services could not be managed, created, or delivered without the knowledge, skills, and abilities of human beings (Soberg, 2011). For example, without any assistance from human beings, technology and money cannot be utilized. The effective use of human resources assist companies in attracting the right employees, expand the knowledge, skills, and abilities of these employees, and keep the employees within the organization.
Human resource planning is the prediction of future business and environmental needs of a given organization. Human resource planning estimates the number of people available to work for future purposes. It strives to identify proper staffing required to perform organizational activities. Human resource planning is an ongoing process which starts with objectives, move toward an analysis of resources and ends at evaluation of the human resource plan. Human resource planning compares the present and future status of the organization. The results identify what changes are necessary to meet goals. Human resource planning is vital so companies can meet their objectives and gain a competitive edge over its competition.
The proper prediction of employment needs is important. An organization must foresee staffing issues beforehand, just as they predict potential threats in the industry that can impact on overall business success. Employee performance is a direct link to the success of the company. Therefore, a company that is not able to achieve goals is the result of workplace failure. Nevertheless, human resource planning is important to ensure the organization does not hire the wrong people or neglect to predict changes in staffing needs. The only way an organization can ensure employees have the skills, knowledge, and abilities the business needs to succeed is by planning for human resource needs. A human resource plan goes hand in hand with the companies plan to determine the resources it needs to achieve the goals.
Obeidat, B.Y. (2012, October). The Relationship between Human Resource Information System (HRIS) Functions and Human Resource Management (HRM) Functionalities. Journal of Management Research, 4(4), . doi:10.5296/jmr.v4i4.2262 Plunkett, W. R., Allen, G. S., & Attner, R.F (2013). Management: Meeting and exceeding customer expectations (10th ed.). Mason, OH : South-Western Cengage Learning. Soberg, A. (2011). The Link Between Strategic Planning and Human Resource Planning. Retrieved from http://www.hrvoice.org/the-link-between-strategic-planning-and-human-resource-planning/
Why Is Human Resource Planning Important In An Organisation?
Human resource planning (H.R.P.) plays an eminent role in any organisation as a medium to achieve organisational goals through strategic human resource management.
It is characterised by a systematic process, undertaken through forecasting human resource needs under changing conditions so that strategic planning is implemented to attain the right human resources needed in the future in accordance with their long term goals and objectives of the organisation (De Cieri et al., 2003).
The process of H.R.P. is intended to match projected human resources demand with its anticipated supply, with explicit consideration of the skills mix that will be necessary throughout the firm (Huselid, 1993). Rather than a reactive and ad-hoc approach, H.R.P. apprehends a proactive slant whereby forecasts are made on labour surpluses or shortages using statistical or judgmental methods. Forecasting techniques are applied to certain areas within the organisation so that further goals and strategic planning can be advocated (Smith et al., 1992). Such goals and planning involve changes to HR activities hence human resource planning is not undertaken in isolation. Consequently it will generate issues attributed with various HR activities particularly employee learning (development), recruitment, performance management and retention, which will be further examined with specific reference to succession planning.
The importance of HR planning has generally been overlooked by organisations. Its proactive approach allows it to be more strategic in its decisions rather than face obstacles when unprepared. It can enhance the success of an organisation through anticipation of labour shortages or surpluses and thus make decisions about the overall qualitative and quantitative balance of employees (Smith et al., 1992). For instance, without a plan, a shortage in labour may instigate desperate measures to hire only good candidates and not the best. This will have cost and productivity implications not only in terms on money but also reputation, motivation etc. By implementing such plan, an organisation can enhance its success and reduce various administrative costs by a third.
Few organisations implement this important process due to its time and cost implications, complexity, and inadequate support. More so, organisations often fall back on the notion that that H.R.P. is an isolated process but instead it requires integrated support with its strategic business plan along with its HR activities. Therefore HR personnel do not understand the H.R.P. process. Smith et al., (2004) alludes to the notion that...
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