Human Resources Planning

All businesses need to plan to make sure they have the right number of employees with the right skill to meet the anticipated plans of the organization. Once the firm has the right staff, the firm needs to train and develop them in order for the organization to meet their objectives. Overall the firm needs to know the following things whilst planning their human resources:

The labor market in the area they operate in. What type of workforce the company will need in order

for them to reach their overall corporate objectives. What the long-term aims are of the company.

The firm must deal with demand side issues of labour and what is the expected demand for labour from the firm. They must also deal with supply side issues. Is there enough supply of staff, internally or externally to meet the expected demand of staff from the company?.

  Supply side – internal supply of labour.

The organization needs to examine if they have enough staff to meet the demand of labour. Is training available within the firm to meet future labour needs? What percentage of workers are about to retire and are they going to be replaced? Do terms and conditions of services currently keep staff motivated?

When examining internal labour needs, these issues do need to be taken into account.

  External Supply of Labour If the supply of labour is not available internally, then the firm may need to

recruit new staff. Are the staff then available within the local market? Do they have the required skill? If they are not available within the local market, how do we find them? Advertise in the next town? Or even overseas?

Human resources planning is a important part of running a business. If a business wishes to expand and do well, it must take into account current and future needs of its labour workforce.

PLANNING FOR SPECIFIC PURPOSES

Micro-planning deals with forecasting supply and demand for specific groups.

It is especially relevant when dealing with tight labour markets or where there needs to be a swift change to meet a new environmental challenge, such as a new competitor or the introduction of regulation.

Contingency planning covers the situation where possible scenarios are examined and the implications assessed before major decisions are taken.

An example here would be the plans for the development of a major manufacturing plant where the implications for various levels of expansion would be considered in terms of shift systems, labour availability, employee relations and payment systems.

These implications would influence the decision as to whether to expand on site or elsewhere.

Succession planning is a third type where the objective is to focus HRP activity on the recruitment and development of individuals to fill managerial and top positions.

A different approach to the subject is taken by Armstrong (1996) who sees the practical side of HRP as a series of implementation strategies consisting of the following:

■ Acquisition strategies, defining how the resources required to meet forecast needs will be obtained.

■ Retention strategies, which indicate how the organisation intends to keep the people it wants.

■ Development strategies, which deals with skills and competency requirements.

■ Utilisation strategies, identifying how productivity and cost effectiveness can be improved.

■ Flexibility strategies, evaluating how various flexible working practices can lead to improved organisational effectiveness.

■ Downsizing strategies, defining what needs to be done to reduce numbers to those the organisation needs.

PROBLEMS & ISSUES OF HUMAN RESOURCE PLANNING

Human resources planning involves projecting how many people will be needed to fill positions in an organization. This planning occurs in a changing environment. Organizations study their short-term and long-term needs to hire new employees. Uncertain economic conditions, such as overseas competition, and changes in technology are examples of why an organization might adjust its hiring needs.

Mismatch Between Applicants and Skills

An organization may find it difficult to fill the positions called for by HR planners. This might be because there is more demand in the organization than there is in available talent in the job market.

Another reason is that the organization's recruiting strategies aren't

attracting the right talent. Not being able to fill positions that are critical to achieving operational goals leaves the organization in a weak business position. That's why forecasting human resources needs should be followed up with effective recruitment, replacement and retention of employees.

Environmental Issues

Environmental issues can occur inside an organization. Demographic changes affect the internal work climate. Differences in work values between generations, such as

Baby Boomers and Generations X and Y, mean that employees want different things to be satisfied with their work.

Programs must address these different needs in one culture.

Also, technological changes require workers to continuously add new technical skills.

If employees' current skills aren't needed, they may become redundant. HR planning involves planning for organizational learning, or developing staff skills, to keep pace with changes in the business market.

Recruitment and Selection

Organizations get better staffing results when they can count on HR departments and line managers to do their own jobs effectively.

For example, HR personnel depend on line managers to use web-based tools to perform recruiting and selection (or hiring) functions with limited assistance.

The HR department posts the steps in the hiring process, policies and procedures, and documents on the company intranet. Although HR personnel may consult about questions, line managers must be able to follow guidelines for recruitment and hiring without exposing the organization to liability.

Training and Development

Line managers must do more than recruitment and hiring. They must perform other jobs that used to be associated with personnel departments.

They must address their own employees' training and development needs. Line managers must find all of the resources inside and outside the organization to ensure employees develop the required skills.

This takes place in the context of keeping employees motivated to perform. Effective communication between line managers and HR personnel planners can result in effective identification of training and development needs exceeding current resources