Hi Can anybody tell me the role of Human Resource Planning in Human Resource Management. Thanks Tina
From India, Delhi
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2From India, Delhi
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HR Planning's Role in HRM
The Role of HR Planning is to help HRM provide a planned program of human resources to the company's various departments to achieve their objectives/strategies. In most companies, HRM is part of senior management. HRM contributes to the development of the corporate mission statement, corporate objectives, and corporate strategy. Normally, the senior management team or top management consists of CEO or Managing Director, Corporate Planning Manager, Finance Manager, Marketing Manager, Manufacturing Manager, Sales Manager, Supply Chain Manager, HR Manager, etc.
Step 1[a]
Top management would evaluate the current (last 12 months) performance against the objectives/target set previously, including return on investment, profitability, etc., and the performance of various departments like marketing, sales, HR, manufacturing, etc.
Step 1[b]
Top management will also evaluate the current mission, objectives, strategies, and policies.
Step 2[a]
The CEO or MD will take the summary of the evaluation of the current performance to the board for review.
Step 2[b]
Based on the review plus the external environmental factors, the board will make decisions on a new mission statement, new corporate objectives, and new corporate governance.
Step 3[a]
Top management will scan and assess the company's external environment—political/economic/social/technology—to determine the strategic factors that pose as opportunities/threats.
Step 3[b]
Top management will scan and assess the company's internal environment—structure/culture/resources, etc., to determine the strategic factors that pose as opportunities/threats.
Step 3[c]
Top management will analyze the strengths/weaknesses of the organization and pinpoint the problem areas that need attention and the strengths that could be exploited.
Step 4
Based on the above analyses, top management will generate, evaluate, and select the best strategic factors.
Step 5
Top management will review and revise (if necessary) the mission statement and corporate objectives.
Step 6
Top management will generate and evaluate strategy alternatives and objectives.
Step 7
This final corporate mission statement, objectives, and strategies become the foundation information for the various departments to work out their departmental objectives/strategies/plans.
Step 8
After working out their respective objectives/strategies/plans and the budgets, the departmental managers send their respective information to the top management for approval.
Step 9
On receiving the approved package from the top management, the departmental managers develop the implementation plan.
Step 10
Now you have mission/objectives/strategies/plans/budget/schedules.
Factors that Influence HR Planning
As the economy grows/declines, the demand for HR resources changes not only in quantity but also in quality/types. Social pressure to provide the right environment for employees, political pressure to employ the local population irrespective of skills/knowledge, legal challenges to recruitment/compensation on discrimination, technology changes means getting the right type of people or providing the right type of training, competitive pressure to get the right talent at the right compensation, strategic planning seeks strategic HR planning, budget constraints put pressure on HR to get the best resources for the least, sales/production increases in business put pressure on HR to recruit more, sales/production decreases in business put pressure on HR to rationalize recruitment, new venture means demand for new types of skills/knowledge, acquisitions/mergers mean rationalization of HR, organizational development means HR implementing a new structure, new culture, new systems, job redesign means HR implementing new methods, new process, new systems, globalization means managing HR diversity, new culture change, new training, HR challenges/difficulties include managing retirement, managing voluntary retirement schemes, managing terminations, managing leave of absence, managing part-time workers/casuals, managing layoffs, balancing the internal supply estimates and external supply estimates, managing work options like shorter weeks, flexitime, telecommuting, virtual organizations.
In the case of HR, which is a department by itself, this final corporate mission statement, objectives, and strategies become the foundation information for the HR department to work out their departmental objectives/strategies/plans.
Step A
Discuss with the various other departments like sales/production/distribution/accounting/IT, etc., about their requirements for manpower, recruitments, replacements, training, etc. Once you get their departmental requirements, HRM develops HR planning, which includes recruitment/selection plans/programs/procedures/priorities, training plans/programs/procedures/priorities, rewards plans/programs/procedures/priorities, development plans/programs/procedures/priorities, payroll plans/programs/procedures/priorities, performance management plans/programs/procedures/priorities, staff/organization communication plans/programs/procedures/priorities, induction/orientation plans, career/talent development plan, compensation development plans, performance appraisal plans, industrial relations plans, counseling/mentoring plans, promotions programs, transfers, staff amenities, etc., HR policies, HR procedures, HR practices, etc.
HR Planning
The penalties for not being correctly staffed are costly. Understaffing loses the business's economies of scale and specialization, sales, customers, and profits. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. It also reduces the competitive efficiency of the business. HR Planning includes Assessment/Audit of the current manpower profile (numbers, skills, ages, flexibility, sex, experience, capabilities, character, potential, and also normal turnover, staff movements planned, retirements, succession planning, etc.), Corporate Mission, Corporate Objectives, Corporate Strategy, Corporate Organization Policy/Budget Guidelines, Corporate HR objective/strategy, Corporate Industrial Relations Policy, Corporate Sales forecasts (3 or 5 or 10 years), Corporate Product Plans (3 or 5 or 10 years), Corporate Production forecasts (3 or 5 or 10 years).
Based on the above, you develop a series of crude forecasts of staff required. Consider the impact of technological change on task needs, variations in the efficiency, productivity, flexibility of labor as a result of training, work study organizational change, new motivations, etc., changes in employment practices (e.g., subcontractors or outsourcing, etc.), other variations due to new legislation like new health requirements, safety requirements, etc., changes in government policies like tax/tariff, etc., labor demand and supply, skills levels availability. What should emerge from this analysis/reviews is a "thought out" and logical staffing demand schedule for varying dates in the future which can then be compared with the crude supply schedule. The comparison will then indicate what steps must be taken to achieve a balance. This will involve now recruitment/selection plan, training plan, retraining plan, early retirement plan, redundancy plan, changes in workforce utilization plan, succession plan, personnel and career plans. These plans will help to bring supply and demand into equilibrium, not just as a one-off but as a continual workforce planning exercise, the inputs to which will need constant varying to reflect the actual as against predicted experience on the supply side and changes in production actually achieved as against forecast on the demand side.
The above approach/contents are the same whether it is HR planning for 1 year or 5 years.
Why Has HR Planning Increased in Importance
HR planning has increased in importance because of globalization, economic growth, demand for skilled workers, mobility of workers, need for productivity improvements, need for efficient growth, diversity in the workforce, forward planning of resources, provides planned HR resources, controls wastage, etc.
Regards,
Leo Lingham
From India, Mumbai
Acknowledge(0)Amend(0)
The Role of HR Planning is to help HRM provide a planned program of human resources to the company's various departments to achieve their objectives/strategies. In most companies, HRM is part of senior management. HRM contributes to the development of the corporate mission statement, corporate objectives, and corporate strategy. Normally, the senior management team or top management consists of CEO or Managing Director, Corporate Planning Manager, Finance Manager, Marketing Manager, Manufacturing Manager, Sales Manager, Supply Chain Manager, HR Manager, etc.
Step 1[a]
Top management would evaluate the current (last 12 months) performance against the objectives/target set previously, including return on investment, profitability, etc., and the performance of various departments like marketing, sales, HR, manufacturing, etc.
Step 1[b]
Top management will also evaluate the current mission, objectives, strategies, and policies.
Step 2[a]
The CEO or MD will take the summary of the evaluation of the current performance to the board for review.
Step 2[b]
Based on the review plus the external environmental factors, the board will make decisions on a new mission statement, new corporate objectives, and new corporate governance.
Step 3[a]
Top management will scan and assess the company's external environment—political/economic/social/technology—to determine the strategic factors that pose as opportunities/threats.
Step 3[b]
Top management will scan and assess the company's internal environment—structure/culture/resources, etc., to determine the strategic factors that pose as opportunities/threats.
Step 3[c]
Top management will analyze the strengths/weaknesses of the organization and pinpoint the problem areas that need attention and the strengths that could be exploited.
Step 4
Based on the above analyses, top management will generate, evaluate, and select the best strategic factors.
Step 5
Top management will review and revise (if necessary) the mission statement and corporate objectives.
Step 6
Top management will generate and evaluate strategy alternatives and objectives.
Step 7
This final corporate mission statement, objectives, and strategies become the foundation information for the various departments to work out their departmental objectives/strategies/plans.
Step 8
After working out their respective objectives/strategies/plans and the budgets, the departmental managers send their respective information to the top management for approval.
Step 9
On receiving the approved package from the top management, the departmental managers develop the implementation plan.
Step 10
Now you have mission/objectives/strategies/plans/budget/schedules.
Factors that Influence HR Planning
As the economy grows/declines, the demand for HR resources changes not only in quantity but also in quality/types. Social pressure to provide the right environment for employees, political pressure to employ the local population irrespective of skills/knowledge, legal challenges to recruitment/compensation on discrimination, technology changes means getting the right type of people or providing the right type of training, competitive pressure to get the right talent at the right compensation, strategic planning seeks strategic HR planning, budget constraints put pressure on HR to get the best resources for the least, sales/production increases in business put pressure on HR to recruit more, sales/production decreases in business put pressure on HR to rationalize recruitment, new venture means demand for new types of skills/knowledge, acquisitions/mergers mean rationalization of HR, organizational development means HR implementing a new structure, new culture, new systems, job redesign means HR implementing new methods, new process, new systems, globalization means managing HR diversity, new culture change, new training, HR challenges/difficulties include managing retirement, managing voluntary retirement schemes, managing terminations, managing leave of absence, managing part-time workers/casuals, managing layoffs, balancing the internal supply estimates and external supply estimates, managing work options like shorter weeks, flexitime, telecommuting, virtual organizations.
In the case of HR, which is a department by itself, this final corporate mission statement, objectives, and strategies become the foundation information for the HR department to work out their departmental objectives/strategies/plans.
Step A
Discuss with the various other departments like sales/production/distribution/accounting/IT, etc., about their requirements for manpower, recruitments, replacements, training, etc. Once you get their departmental requirements, HRM develops HR planning, which includes recruitment/selection plans/programs/procedures/priorities, training plans/programs/procedures/priorities, rewards plans/programs/procedures/priorities, development plans/programs/procedures/priorities, payroll plans/programs/procedures/priorities, performance management plans/programs/procedures/priorities, staff/organization communication plans/programs/procedures/priorities, induction/orientation plans, career/talent development plan, compensation development plans, performance appraisal plans, industrial relations plans, counseling/mentoring plans, promotions programs, transfers, staff amenities, etc., HR policies, HR procedures, HR practices, etc.
HR Planning
The penalties for not being correctly staffed are costly. Understaffing loses the business's economies of scale and specialization, sales, customers, and profits. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. It also reduces the competitive efficiency of the business. HR Planning includes Assessment/Audit of the current manpower profile (numbers, skills, ages, flexibility, sex, experience, capabilities, character, potential, and also normal turnover, staff movements planned, retirements, succession planning, etc.), Corporate Mission, Corporate Objectives, Corporate Strategy, Corporate Organization Policy/Budget Guidelines, Corporate HR objective/strategy, Corporate Industrial Relations Policy, Corporate Sales forecasts (3 or 5 or 10 years), Corporate Product Plans (3 or 5 or 10 years), Corporate Production forecasts (3 or 5 or 10 years).
Based on the above, you develop a series of crude forecasts of staff required. Consider the impact of technological change on task needs, variations in the efficiency, productivity, flexibility of labor as a result of training, work study organizational change, new motivations, etc., changes in employment practices (e.g., subcontractors or outsourcing, etc.), other variations due to new legislation like new health requirements, safety requirements, etc., changes in government policies like tax/tariff, etc., labor demand and supply, skills levels availability. What should emerge from this analysis/reviews is a "thought out" and logical staffing demand schedule for varying dates in the future which can then be compared with the crude supply schedule. The comparison will then indicate what steps must be taken to achieve a balance. This will involve now recruitment/selection plan, training plan, retraining plan, early retirement plan, redundancy plan, changes in workforce utilization plan, succession plan, personnel and career plans. These plans will help to bring supply and demand into equilibrium, not just as a one-off but as a continual workforce planning exercise, the inputs to which will need constant varying to reflect the actual as against predicted experience on the supply side and changes in production actually achieved as against forecast on the demand side.
The above approach/contents are the same whether it is HR planning for 1 year or 5 years.
Why Has HR Planning Increased in Importance
HR planning has increased in importance because of globalization, economic growth, demand for skilled workers, mobility of workers, need for productivity improvements, need for efficient growth, diversity in the workforce, forward planning of resources, provides planned HR resources, controls wastage, etc.
Regards,
Leo Lingham
From India, Mumbai
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