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/
Human Resources Management is a very important aspect of an organization’s functions as it ensures that a company’s most valuable resource is properly catered for. Several studies has shown that proper human resource management in an organization is reflected in their many outcomes, hence, Human Resources Managers often adopt “strict” measures in dealings by improving on strategic technology and planning so as to remain relevant among their pers. According to a study by the International Business and Economics Research Journal, the challenges of Human Resources Development stems from the realization that a better Human Resource mean a better organizational performance, albeit they may not have a direct relationship.
Some of the core functions of human resource management according to a BBC resource includes the method of selecting qualified candidates for the organization/firm, highlighting and filling in the training needs of current staff, making sure that the welfare of employees and employee relations are positive, ensure the working environment is conducive and safe for workers, and keeping up-to-date information and various regulatory and legislative issues in the working environment. An important aspect of human resources management is planning. Human Resource Planning ensures the most valuable resource of an organization is optimally utilized by a process of continuous planning, monitoring and evaluation. If successfully implemented, Human Resource Planning makes for the proper job description of each worker/employee and definition of their careers. It also makes them an integral part of an organization hence, they are able to pull off and harmonize their expectations and those of the organization (Suli, 2013). Human resource management deploys strategies and tact by human resource managers that ensures efficiency in the planning process. It is widely believed that an organization that hires employees who have enough qualifications accrues more profits in terms of quality and margin of produced products. In reality, better results would be achieved by an organization that tends to integrate their human resource to the operations of the organization.
Human Resource Planning is one of the early steps in Human Resource Management it handles issues regarding an organization’s future human resource requirement, albeit this may not be evident at the moment, but it is a very vital step as it assures of an organization’s future and failure to take active steps in that direction may spell doom for any organization. It is also requires some technicalities on the side of Human Resources Managers who are charged with the responsibilities of proper planning, selecting the right people for the right jobs and developing them into an effective team and making adjustments as situation changes and as challenges presents itself.
Human resource planning is an organizational tool to identify skill and competency gaps and subsequently develop plans for the enhancement of skills and competencies in human resources to remain competitive. It is influenced by internal and external factors in a business environment.
Human resource planning should be an integral part of business planning. Anticipated changes in the activities and programmes of an organization are considered in the planning process.
By way of definition, Human Resource Planning is “The process that links the human resource needs of an organization to its strategic plan to ensure that staffing is sufficient, qualified, and competent enough to achieve the organization’s objectives” (Business Dictionary). It further states that Human Resource Planning is important to “maintaining competitive advantage and employee turnover.” There are 3 key elements of Human Resource Planning which are: forecasting staffing requirement, appraising present supply, and balancing projected requirements and supply.
Forecasting Staffing requirement is aimed at predicting the number of employees needed to run a business as well as their job descriptions. A couple of factors influence this element and they include: economic situation, internal business finances, the demand of your products and services and the growth expectations of your business. In appraising present supply, the Human Resource Manager looks into the internal and external staff and puts into consideration factors that can influence the demographics of the workforce that is available which include education, mobility, unemployment rate, government regulations etc.
The third element is the balance of supply and demand where a balance between the demand for employed and the supply is made and appropriate measure taken in case shortage or lack of manpower exists.
Human resource planning has become increasingly important as organizations and companies continue to seek relevance in a highly competitive market. Organizations still have to survive and grow their business under these conditions. As market condition and economic environment changes, bringing up additional problems and challenges for management, the onus lies on Human Resource Managers to apply tactful means to cushion their effect on their organizations. The benefits of human resource planning are immense and cannot be overemphasized. It harmonizes an organization’s vision, mission and goals and objectives with its activities and provides for the future of any organization. Forecasting is vital in any organization. Organizations must learn to constantly evaluate the performance of its employees and effectively too. In summary, human resource planning aims at foreseeing and provision of human resources, manage external factors that affect an organization and balance them with internal factors as well as encourage the employees. If well applied, the sequel becomes secured future of such organization, reduced input cost as well as makes for highly talented staff.
Strategic organizational planning is related to Human resource planning in that both practices provides for the future of an organization. It is the method of identifying where an organization wants to be and working towards achieving such vision through a systematic design and implementation of relevant steps. Strategic planning more precisely, is a process for setting future directions, a means to reduce risk, a vehicle for training managers and direct supports, a process for making strategic decisions, a way to develop consensus among managers and direct supports and a means to develop a written long-range plan. If properly designed, it can serve as a framework for decisions or for securing support/approval, provide a basis for more detailed planning, explain the business to others in order to inform, motivate & involve, assist benchmarking & performance monitoring, stimulate change and become a building block for the next plan. Strategic planning presupposes that an organization examines the environment it is working and focus attention on the pressing problem and map effective problem solving strategies for those problems.
Organizational strategic planning often involves the following steps: conducting and internal survey on the current standing of the organization, taking into consideration their strengths and weaknesses, financial performance, human resources, comparative advantage and limitations, corporate culture, current positioning in the markets and the general overview of the company.
An external analysis is also done to determine close competitors, market trends (opportunities and threats), technological changes and their impact in an organization, regulatory and legislative polices and frameworks in the operating environment and indeed other external factors and their influences on the organization.
The information gathered in the above analysis are summarized and presented as a document for the human resource and/or organizational planning team to work on them.
Furthermore, the organizational strategy planning involves the development of a mission, vision, goals and objectives, core values and steps towards achieving them. The planners define what the organization is all about and set the priorities. Goal setting may be the most important step in the planning process as it focuses on critical elements in the success of any business. It also establishes a framework and basis for the development of the other key elements of the plan. The next phase is defining the objectives which are meant to support or promote the goals already set in the plan, and then strategies on how the goals and objectives that can be achieved are outlined.
Strategic technology is critical for the growth and/or survival of any company as it clearly outlines the blueprint, (i.e. the various procedures and technicalities) that spurs an organization or a company to greater height especially to remain relevant and compete among its peers. It is necessary to remark that a proper strategy plan would be reflected in a company’s output, it presupposes that organization that promotes experimentation, continuously monitors the environment, monitor her operations and accomplishments and is committed to continuously accelerate performance.
A typical example of where proper Strategic Organizational Planning leads to business success is Apple Incorporation. It is one example of a successful enterprise.
Apple incorporation is company that has evolved into a multinational corporation. It designs and manufactures different types of computer programs and applications (like the MAC computers), computer electronics (like the iPod, the iPhone, the iPad) and the development of soft wares (like the Mac OS, iTunes etc). It is a model for the illustration of how a proper technological strategy plan and technological innovation leads to improved productivity. It was established on 1st April, 1976 by engineer founder Steve Jobs and Steve Wozniak, and having its headquarters at 1 Infinite Loop Cupertino, California 95014-2083. Apple is a perfect example of transformation of a company’s fortune occasioned by a proper technology strategy even when it had a very humble beginning.
Though established on April 1, 1976 in Cupertino, California, Apple was incorporated in January 3, 1977, and was previously named Apple Computer, Inc., for its first 30 years, but later on January 9, 2007 removed the word “Computer.” This was the current state of the company as it started venturing into other consumer electronics market though it still maintained the original business of manufacture of personal computers. As at 2012, Apple Inc. has about Seventy Two Thousand (72,000) workers on its payroll and by May, 2012, has over 400 retail stores at its disposal…
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