Human Resource Planning

HR Planning 1 HR PLANNING Paper outline I. Introduction II. The purpose of HR planning III. The influence of the external environment in HR planning IV. Role of strategic HR planning in the realisation of organizational strategic goals V. Ethical and legal requirements of HR planning VI. Conclusion

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HR Planning 2 Introduction Organizations require having the right people at the right place at the right time to ensure that all the strategies established are accomplished. The demand for qualified and professional individuals has intensified with time and there has been a great need to establish proper strategies of attracting and retaining these people.

Hirschman (2007) opined that HR planning is not a new thing and organizations have been exercising it for a long period of time. The changes in demand and supply of labor have caused organizations to establish better strategies of attracting and retaining professionals and skilled workers. Today businesses are encountering many challenges in terms of turbulent economic conditions, unpredictable market places and global changes among others. All these challenges have made it difficult for organizations to maintain their workforce and proper strategies are required to reduce the rate of employee turnover being experienced by many organizations (Hirschman, 2007).

The purpose of HR planning Modern organizations are facing a lot of change and there is need to come up with better strategies to plan about the human resources. This change has been brought about by globalization and introduction of new technologies which bring new ideas about managing human resources. In addition, there have been an imbalance between demand and supply of human labour and this has brought about uncertainty in the workplace. HR planning has gained a lot of importance in modern workplaces and organizations have the obligation to embrace these plans for a successful implementation of strategic goals (Ngo, 2010).

There is need to use manpower optimally and this is one purpose of HR planning. Organizations aspire to get the best out of the people they employ.

HR Planning 3 Optimization refers to the process of getting the maximum output from the inputs invested in the organization. Any business enterprise aims at getting profits from the inputs invested. Thus, human resources managers have the obligation to ensure that employees contribute successfully to the goals and objectives of the organization.

However, when the costs incurred in maintaining the employees exceed the benefits obtained, the HR manager should consider creating other strategies for the organization (Kleynhans, 2006).

It is important for HR managers to forecast the future by creating plans about the people they work with. Forecasting involves setting future goals and this requires managers to set better strategies about the future. Forecasting the future requires setting goals which are attainable. Managers should provide a vision for their subordinates so that they can have a good direction about the way to perform their duties. To forecast about the future requires learning the work environment so that the organization can determine the best goals to be achieved in the future (Ngo, 2010).

Planning about the human resources ensures that the organization is prepared to face the challenges that face it. The environment surrounding an organization is hostile and turbulent and there is need to plan about facing these challenges. Some of these challenges are the intensifying competition in the global markets, cultural diversity being experienced by all organizations, among other challenges (Ngo, 2010).

The need for innovative products in modern has been accelerated by advancement in technology. Many organizations have realized that they require proper technologies to develop products which capture demand in the global markets. As companies continue to seek for technologies which enable them to

HR Planning 4 differentiate their products, the need for skilled personnel continues to intensify.

Technologies are changing rapidly and there is need to come up with strategies to address this issue. Organizations can only tackle this challenge by planning properly about their human resources (Ngo, 2010).

An example of a company using technology as a competitive tool is Apple Inc. The president of the company, Steve Jobs has encouraged the employees to apply modern technologies in the manufacturing and marketing of the products of the company. Apple has been able to manufacture innovative products which have attracted high customer loyalty. The human resource planning strategies of the company emphasize the employees to apply their skills in the production of competitive products. The iPod products have captured the market demand and this has promoted the sales volume of the company. Apple has applied a lot of technologies to manufacture its products so that it can overcome the stiff competition in the market (O'Grady, 2008).

Organizational change can only be achieved by planning properly about how the employees will contribute towards making change a reality. Change in an organization is inevitable and managers should engage their employees to handle change without interrupting the normal operations of the organization. Bringing change to an organization may be rejected by the employees and proper plans should be put in place to ensure that everything operates successfully. Change management should be done by integrating the entire department because it is a wholesome process. People respond differently to change and the management should create an environment which will allow every stakeholder to get acquainted to the entire process (Kleynhans, 2006).

HR Planning 5 Walmart is an example of a company experiencing a lot of changes in the recent past. Due to the prevailing low employee satisfaction, the management has decided to change the human resources management systems so that the company can regain its performance. The management introduced new human resources policies to reduce the strikes which were affecting the company due to low employee satisfaction. Change management has been implemented to ensure that the company maintains its performance during the change process (Hill & Jones, 2009).

HR planning is used when determining recruitment levels of the employees.

Managers make different strategies for their workers when making plans. To impalement strategies of an organization different skills are required and this will require the management to plan different strategies of recruitment. Recruitment strategies must match the organization’s needs so that deviations from the expected performance can be avoided. HR planning helps the managers to allocate duties to the proper employees (Kleynhans, Markham, Meyer, o'Neill, Schlecter, Aswegen, & Botha, 2009).

Training needs of the employees are recognized when proper HR plans are put in place. As an organization pursues its plans there is need to match the skills of the employees to the strategic plans of an organization. Continuous training to the employees is required to ensure that the organization achieves new goals. Training equips employees with new skills about performing the activities of the organization.

Due to the intensifying competition in the global markets today, organizations are seeking strategies to train their employees in new technologies so that they can contribute successfully to the goals of the organization (Kleynhans, Markham, Meyer, o'Neill, Schlecter, Aswegen, & Botha, 2009).

HR Planning 6 Hr planning assists in knowing the costs of manpower. Proper plans provide the estimated costs and the actual costs involved in any activity. This helps create accountability within the organization and provides the organization with proper budget for its activities. Creating proper strategies which minimize the costs of manpower is a great challenge that managers have. This is because they must integrate and understand the needs of the organization and match them to the available labour resources. Providing a lot cost allowances to labor may become minimize the profits made by the company. Therefore, all the plans much lie within the capacity of the organization (Kleynhans, 2006).

HR planning is used in productivity bargaining especially when an organization is determined to adjust its level of production. The employees must be well managed to ensure that all sectors of the organization operate effectively and efficiently. Productivity bargaining involves determining the level of production to be achieved by employees within a given period of time. Performance contracts have been established in many organizations to ensure that employees pledge the level of performance they should attain within a given period of time. Increasing the level of productivity has an impact on the performance of employees and an organization should establish proper strategies to help adjust to the changes to avoid conflicts (Hirschman, 2007).

The influence of the external environment in HR planning HR planning is not only affected by internal factors but also external factors.

There are several external factors which affect the HR planning: government policies, technological factors, economical elements, demographics, global influences, competition, and changes in labour force patterns. In addition, cultural differences affect the performance of the employees. Cultural diversity is

HR Planning 7 experienced when operating in multicultural environments and this requires an organization to learn the cultural needs of the various people it works with (Jackson, Schuler and Werner, 2008).

Governments set policies to be followed concerning HR planning and these policies act as legal conditions and defying these conditions calls for legal action.

The government has the mandate to ensure its citizens are protected at the place of work. It also protects the interests of employers to ensure they operate in a peaceful work environment. The Equal Employment Opportunity laws in the United States were established to protect the interest of employers. These laws protect employees from discrimination and any other negative form of practice that may affect the employees at the work place. A commission was established to enact these laws and to ensure that employers adhere to the laws. These laws ensure that organizations make HR plans which conform to the stipulated laws (Vance, Charles and Yongsun, 2010).

Condition of the economy affects the HR planning process. Economic factors determine the level of performance of a business and this will determine the profitability of any organization. HR planning is pegged on the profitability of the organization. In the recent past the global economies were affected by economic recession and this caused a lot of loss to many companies while others completely closed down. Inflation levels in an economy determine the level of performance of businesses (Jackson, Schuler and Werner, 2008).

Demographic factors also affect HR planning in that organizations obtain their workforce from the people in a country. When there lacks skilled people in a country it becomes impossible for an organization to recruit people from the country. This may force an organization to outsource its workforce from other countries. In

HR Planning 8 addition, demographic distribution patterns determine the HR planning policies to be followed by an organization. As such, the organization should consider recruiting people different regions. Cultural aspect is an important factor to consider when planning for the human resources. Organizations should consider integrating the cultural needs of all people being recruited because cultural conflicts may negatively affect the organization (Vance, Charles and Yongsun, 2010).

Technologies are changing rapidly and organizations should consider planning properly about the best technologies to use. There are many changes happening in the environment and organizations need to plan about how their employees will acquire skills to learn these new technologies. Change in demand in the global market place requires organizations to apply different production and marketing technologies to capture as many customers as possible. Customer loyalty has become a factor which many organizations are using to compete successfully in the market. As such, organizations must apply the best technologies to manufacture their products so as to match the consumer demand. Matching the market demand makes an organization suitable to acquire a large number of customers who are ready to re-buy from the same organization (Jackson, Schuler and Werner, 2008).

The international community has a lot of influence of HR planning systems adopted by an organization. There are international laws which have been put in place to ensure all organizations adhere to global standards. Global outsourcing of workforce has been experienced after the globalization effect was realized.

Multinational companies are affected policies of different countries. This requires such companies to focus on understanding the policies and cultural aspects of all countries they operate in (Jackson, Schuler and Werner, 2008).

HR Planning 9 There has been a rapid increase in the rate of employee turnover in the global market place. This scenario has been experienced due to increase in the demand for qualified personnel; hence the demand for professionals has increased far beyond the supply. This has created the need for HR managers to plan properly about better strategies of retaining employees. Employee motivation strategies have been developed towards achieving better employee retaining levels (Vance, Charles and Yongsun, 2010).

Role of strategic HR planning in the realisation of organizational strategic goals The mission, vision and core values of an organization are framed according to the strategic HR plans that an organization has. The strategic goals of an organization are achieved when there are proper strategies to achieve them. Goals of an organization are achieved by and through human resources and there is need to incorporate the human factor in the implementation of the strategic goals.

Therefore, proper plans must be established to manage the human resources for the achievement of these goals. Measures should also be put in place to ensure minimal deviation from the established standards (Hirschman, 2007).

It is the role of HR managers to select and staff the organization depending on the strategic goals that have been established. Hr planning helps an organization to select individuals who are best suited to perform the strategic goals of an organization. Recruitment is done to ensure the organization gets the most suitable individuals for a job position in the organization. getting the right person for a specific job position is a big challenge and the HR managers require evaluating all aspiring candidates properly. Therefore, strategic goals can only be achieved when the organization ahs the right people at the right time (Bobinski, 2004).

HR Planning 10 Organizational development can only be achieved by establishing appropriate strategic goals. Organizational development entails bringing change within the organization by integrating all the aspects of the organization. when new structures are established within the organization, change in the HR plans is required to ensure that no section drags behind as the organization develops. Therefore, change management is an important aspect that should be integrated in the organization when there are many developmental activities taking place in the organization. as such, all the stakeholders must be aware of the changes being introduced in the organization (Bobinski, 2004).

Training and development is a strategic activity which is done to achieve the goals of the organization. Employees should be trained regularly to ensure they are equipped with the skills required to perform the activities in the workplace. Training helps employees develop their skills according to the market demands. As the organization develops its strategic goals, new skills are required and this will require provision of adequate training to the employees. there are rapid changes at the workplace and this requires employees to have the necessary skills to handle the changes. Technology has brought about new methods of performing activities and this requires organizations to train their workers accordingly (Bobinski, 2004).

Ethical and legal requirements of HR planning Various legal and ethical standards have been put in place in various countries in the world. In the United States, the Equal Employment and Opportunities laws were established to prohibit discrimination at the workplace. As an organization makes it HR plans, it must ensure that all employees are treated equally. As far as an employee is qualified to perform a specific job, he/she should not be discriminated against in terms of gender, race, region, and ethnicity or in any other

HR Planning 11 form. These laws were established to protect the employees working in various organizations. The Equal Employment and opportunities laws provide the ethical and legal requirements that organizations should adhere to when planning about its human resources (Mathis & Jackson, 2007).

In Australia, the federal government has established the Fair Work Act to protect the rights of employees and employers. These laws have been created to safeguard the interest of all stakeholders. The Act provides that employees have a right to form labor unions and to be involved in collective bargaining. These laws ensure that employees are not exploited by the employer by creating systems of reporting any professional misconduct to the authorities. A balance is created between the employers and the employees such that both parties are protected by the laws. These laws have stipulated legal procedures to be followed when dealing with various human resources planning strategies. Organizations applying the Fair Work laws are ensured of a smooth running because the laws enable organizations to create favorable work environments (CCH Editors, 2009).

It is also ethical for the managers to collude with labor unions. This will ensure that the employees have contributed to the decisions made by the organization.

There should be a bargain between the employees and the organization to ensure that the decisions are embraced by all stakeholders. Collective bargaining ensures that the HR plans are accepted by all stakeholders and that all parties will work towards achieving the goals of the organization. Conflicts may arise during the implementation of HR plans and these should be resolved amicably to avoid breaking up the entire system of activities (Rothwell & Kazanas, 2003).

It is important that organizations come up with innovative HR planning strategies to ensure employees are comfortable with the plans. HR innovation should

HR Planning 12 match the changes being developed at the organization. To attract and retain its employees it must create proper strategies to ensure that employees are comfortable at the workplace. This requires establishing innovative ways of maintaining employees. Employees must be motivated to implement the strategies being put in place by the organization. Motivation may be related to monetary or nonmonetary and whichever method the organization selects, the overall goal is to ensure that the employees are satisfied at the workplace (Rothwell & Kazanas, 2003).

Conclusion Human resource planning is an important aspect of an organization because it helps an organization to achieve its goals in a timely manner. The vision of an organization is achieved by establishing strategies which provide a suitable environment in an organization. Managers must plan how to achieve the goals of the organization by engaging all employees. Managers should integrate internal and external environments when planning for their workforce and to ensure there are no conflicts between different factors in both environments. In addition, the ethical and legal issues about HR planning must be adhered to when managing human resources. It is advisable for organization to create appropriate plans about their human resources to ensure they achieve the strategic goals for a sustainable growth and development.

HR Planning 13 Bibliography Bobinski, Dan (2004). The role of HR in strategic planning. Retrieved December 07, 2010 from; http://www.management-issues.com/display_page.asp? section=opinion&id=1137 CCH Editors (2009). Understanding forward with fairness: a practical guide to the new workplace. CCH Australia Limited. ISBN 1921485760, 9781921485763.

Hill, Charles and Gareth Jones (2009). Strategic Management Theory: An Integrated Approach. Cengage Learning. ISBN 053875107X, 9780538751070.

Jackson, Susan E., Randall S. Schuler, and Steve Werner (2008). Managing Human Resources. Cengage Learning. ISBN 0324568398, 9780324568394.

Kleynhans, R., Markham, L., Meyer, W., o'Neill, W., Schlecter, A., Aswegen, S. and Botha, O. Lotz (2009). Human resource management: fresh perspectives.

Pretoria, Pearson South Africa. ISBN 1770256067, 9781770256064.

Kleynhans, Ronel (2006). Human Resource Management. Pearson South Africa.

ISBN 1868914178, 9781868914173.

Mathis, Robert l. and John H. Jackson, (2007). Human resource management.

Cengage Learning. ISBN 0324542755, 9780324542752.

Ngo, David (2010). Purpose of HR planning. Retrieved December 06, 2010 from; http://www.humanresources.hrvinet.com/purpose-of-hr-planning/ O'Grady, Jason D. (2008). Apple Inc. ABC-CLIO. ISBN 0313362440, 9780313362446.

Rothwell, William J. and H. C. Kazanas, (2003). Planning and managing human resources: strategic planning for human resources management. Human Resource Development. ISBN

0874257182, 9780874257182.

HR Planning 14 Vance, Charles M., Vance Charles M, and Yongsun Paik, (2010). Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management. M.E. Sharpe SharpeLtd, ISBN 0765623498, 9780765623492.