HRM ESSAY 2,500 WORDS

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Lecture 3

Human resource planning in a changing environment

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Introduction

Human Resource Planning:

‘The bridge between HR strategies and HR functions is the formulation of human resource plans that incorporate the desired outcomes of HR strategies, are responsive to continual changes in dynamic national and global industry environments, and can be implemented through efficient and effective HR functions...’

(Nankervis, Compton, Baird & Coffey 2011, p.120)

Human Resource Planning

Ensure organisational objectives are met through effective utilisation of human resources

Considerate of changing circumstances within and outside the organisation

Is an ongoing process, focused on the long-term

Cognisant of contemporary changes in both internal and external environments

A series of processes, with long-, medium- and short-term contingency options

Based upon efficient, effective and user-friendly HRIMS

Strategic alignment

Human resource planning (HRP)

  • Sometimes called ‘workforce planning’
  • translates the organisation’s objectives
  • ensures that organisations have the right people in the right place, with the right skills, at the right time and at the right place
  • translates organisational plans into HR plans that guide the long-term acquisition, use and development of intellectual capital and knowledge assets

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Group discussion

HRP and strategic
organisational planning

  • Determination of necessary labour requirements (demand)
  • Prediction of likely sources (supply)
  • Environmental scanning
  • Evaluation of strengths and weaknesses
  • Development of objectives and goals
  • Formulation of suitable strategies

Approaches to SHRP

Effective integration of HR and strategic plans

  • Depends on many factors including:
  • nature and stage of organisation
  • organisational size
  • history, culture and philosophy
  • nature of business strategies
  • location and level of the HR function
  • values and skills of senior HR managers

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Group discussion

A model of strategic human resource management

Group discussion

The process of HRP

Labour demand forecasting

  • Estimating in advance the number and type of employees required
  • Complex or simple techniques can be used
  • Dependent upon:
  • expertise of HR
  • complexity of organisational structures
  • market factors
  • external environment

Group discussion

Labour supply analysis

  • Determining if labour requirements are available:

  • when and where needed?

  • internal or external sources?

  • internal supply analysis

  • skills inventory

Group discussion

Human resource information management systems (HRIMS)

  • Originally manual
  • Increasingly complexity of legislation
  • Payroll systems
  • Development of flexible and comprehensive systems
  • Increasingly computerised and information technology focused
  • Strategic tool for HR planning and cost-effective HRM

A model of strategic HRP using HRIMS

Benefits and features of HRIMS

  • Improved planning and program development

  • Faster information processing

  • Improved response times

  • Decreased administrative and HR costs

  • Accuracy of information

  • Enhanced communication at all levels

Types of HRIMS data

Aggregated data on all aspects of the employment relationship including:

  • Administrative
  • industrial awards, HR policies, salary, leave…
  • Operational
  • personal and job histories, records on recruitment and selection…
  • Strategic reasons
  • all the above plus wastage, staff positions, labour market trends…

The role of HR information in the HR strategic planning process

‘Ownership’, confidentiality and privacy of HRIMS data

  • Who has access?
  • keys and codes
  • Protection of data
  • Ethical issues
  • Outsourcing
  • Data ownership
  • Freedom of Information legislation versus Privacy legislation

Successful HRIMS

  • Accurate employee and job data

  • Flexible and adaptable

  • Clear link with and contribution to HR plans

  • Modular and integrated

  • Clear control of HR costs

External supply

  • Considered when:
  • lack sufficient internal supply
  • entry-level positions

  • Influenced by many complex factors

  • Other options?

The external environment

  • Crucial success factors include:

  • recruiting and retaining skilled employees
  • increasing customer satisfaction
  • employing and developing leaders
  • sustaining a competitive advantage
  • managing risk
  • managing change and corporate culture
  • becoming an innovative organisation

Group discussion

Human resource planning

Drawbacks

  • Time-consuming

  • Difficult/complex

  • Costly

  • Inadequate support

  • Obstruction

Benefits

  • Better match between employee and organisational objectives

  • Increased productivity and profitability

  • Better integration

  • Timely staffing and skill requirements

Summary

Effective HRP

  • Management commitment
  • Importance placed on human resources
  • Links between external and internal environments and organisational strategies
  • Effective linkages between HRP and HRM
  • Adequate staff, time and resources
  • Effective HR information systems