Human resource planning From Wikipedia, the free encyclopedia Human resources planning is a process that identifies current

and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning.

Best Practices

The planning processes of most best practice organizations not only define what will be accomplished within a given timeframe, but also the numbers and types of human resources that will be needed to achieve the defined business goals (e.g., number of human resources; the required competencies; when the resources will be needed; etc.).

Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Targeted human resource strategies, plans and programs to address gaps (e.g., hiring / staffing; learning; career development; succession management; etc.) are then designed, developed and implemented to close the gaps. These strategies and programs are monitored and evaluated on a regular basis to ensure that they are moving the organizations in the desired direction, including closing employee competency gaps, and corrections are made as needed. This Strategic HR Planning and evaluation cycle is depicted in the diagram below. Implementation Stages The following implementation stages are suggested for mid to large organizations implementing competencies in support of Strategic Human Resources Planning. Stage 1 Short - Term HR Planning

Establish a Competency Architecture and Competency Dictionary that will support Strategic Human Resource Planning. For each group to be profiled, define the roles and career streams to help identify current and future human resources needs. Determine how competencies will be integrated with the existing HR Planning process and systems (e.g., Human Resource Information Management systems; other computer-based tools, for example forecasting models). Stage 2

Build or revamp HR Planning tools, templates and processes to incorporate elements as determined in Stage 1. Train managers and / or facilitate corporate HR Planning process. Continuously monitor and improve processes, tools and systems to support HR Planning

Overarching Policy, Process & Tools Common Competency Dictionary and Architecture Establishing a common Competency Dictionary and Architecture is fundamental for the successful implementation of competencies throughout the organization. Maintaining this common architecture is essential for ensuring that all human resource management applications are fully integrated and that maximum efficiencies can be gained. It is important, therefore, to identify an organizational group accountable for the maintenance of the Competency Dictionary and Architecture on an ongoing basis. Human Resource Information Management Infrastructure In a recent review, the Gartner Group noted that CBM talent management initiatives have not necessarily yielded the desired benefits and return on investment, for the main part because organizations have not invested in the talent management software systems and infrastructure to facilitate full and effective implementation. To gain maximum benefit from CBM, organizations need to have a human resources management system and on-line tools and processes that will support many of the implementation recommendations contained in this document. Governance / Accountability Structure Organizations that have effectively implemented competencies on a corporate-wide basis have ensured that there is an appropriate project management, governance and accountability framework in place to support the development, maintenance and revision / updating of the competency profiles to meet changing demands.

Process Implementation Stages The following implementation stages are suggested for mid to large organizations. Stage 1 Identify the infrastructure and system requirements to support full implementation (e.g., Human Resources Information Management System; other on-line software tools needed to support various CBM applications). Develop the competency profiles. Implement the competency profiles in a staged-way to demonstrate benefits and create buyin (e.g., as soon as profiles for a group are developed, implement quickly within a low-risk high-benefit planned application for the group). Communicate success stories as competency profiles are implemented. Good for organization. Stage 2

Develop, revise / update competency profiles to meet changing demands. Monitor and evaluate applications to ensure that they are meeting organizational needs, and adjust programs / plans, as needed, to meet evolving needs.

Practical benefits When it concerns human resources, there are the more specific criticisms that it is overquantitative and neglects the qualitative aspects of contribution. The issue has become not how many people should be employed, but ensuring that all members of staff are making an effective contribution. And for the future, the questions are what are the skills that will be required, and how will they be acquired. There are others, though, that still regard the quantitative planning of resources as important. They do not see its value in trying to predict events, be they wars or takeovers. Rather, they believe there is a benefit from using planning to challenge assumptions about the future, to stimulate thinking. For some there is, moreover, an implicit or explicit wish to get better integration of decision making and resourcing across the whole organisation, or greater influence by the centre over devolved operating units. Cynics would say this is all very well, but the assertion of corporate control has been tried and rejected. And is it not the talk of the process benefits to be derived self indulgent nonsense? Can we really afford this kind of intellectual dilettantism? Whether these criticisms are fair or not, supporters of human resource planning point to its practical benefits in optimising the use of resources and identifying ways of making them more flexible. For some organisations, the need to acquire and grow skills which take time to develop is paramount. If they fail to identify the business demand, both numerically and in the skills required, and secure the appropriate supply, then the capacity of the organisation to fulfil its function will be endangered.

Why human resource planning? Human Resource Planning: an Introduction was written to draw these issues to the attention of HR or line managers. We address such questions as:

what is human resource planning? how do organisations undertake this sort of exercise? what specific uses does it have? In dealing with the last point we need to be able to say to hard pressed managers: why spend time on this activity rather than the other issues bulging your in tray? The report tries to meet this need by illustrating how human resource planning techniques can be applied to four key problems. It then concludes by considering the circumstances is which human resourcing can be used.

1. Determining the numbers to be employed at a new location If organisations overdo the size of their workforce it will carry surplus or underutilised staff. Alternatively, if the opposite misjudgement is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the quality level expected. So the questions we ask are:

How can output be improved your through understanding the interrelation between productivity, work organisation and technological development? What does this mean for staff numbers? What techniques can be used to establish workforce requirements? Have more flexible work arrangements been considered? How are the staff you need to be acquired? The principles can be applied to any exercise to define workforce requirements, whether it be a business start-up, a relocation, or the opening of new factory or office.

2. Retaining your highly skilled staff Issues about retention may not have been to the fore in recent years, but all it needs is for organisations to lose key staff to realise that an understanding of the pattern of resignation is needed. Thus organisations should:

monitor the extent of resignation discover the reasons for it establish what it is costing the organisation compare loss rates with other similar organisations. Without this understanding, management may be unaware of how many good quality staff are being lost. This will cost the organisation directly through the bill for separation, recruitment and induction, but also through a loss of long-term capability. Having understood the nature and extent of resignation steps can be taken to rectify the situation. These may be relatively cheap and simple solutions once the reasons for the departure of employees have been identified. But it will depend on whether the problem is peculiar to your own organisation, and whether it is concentrated in particular groups (eg by age, gender, grade or skill).

3. Managing an effective downsizing programme This is an all too common issue for managers. How is the workforce to be cut painlessly, while at the same time protecting the long-term interests of the organisation? A question made all the harder by the time pressures management is under, both because of business necessities and employee anxieties. HRP helps by considering:

the sort of workforce envisaged at the end of the exercise the pros and cons of the different routes to get there how the nature and extent of wastage will change during the run-down the utility of retraining, redeployment and transfers what the appropriate recruitment levels might be. Such an analysis can be presented to senior managers so that the cost benefit of various methods of reduction can be assessed, and the time taken to meet targets established. If instead the CEO announces on day one that there will be no compulsory redundancies and voluntary severance is open to all staff, the danger is that an unbalanced workforce will result, reflecting the take-up of the severance offer. It is often difficult and expensive to replace lost quality and experience.

4. Where will the next generation of managers come from? Many senior managers are troubled by this issue. They have seen traditional career paths disappear. They have had to bring in senior staff from elsewhere. But they recognise that while this may have dealt with a short-term skills shortage, it has not solved the longer term question of managerial supply: what sort, how many, and where will they come from? To address these questions you need to understand:

the present career system (including patterns of promotion and movement, of recruitment and wastage) the characteristics of those who currently occupy senior positions the organisations future supply of talent. This then can be compared with future requirements, in number and type. These will of course be affected by internal structural changes and external business or political changes. Comparing your current supply to this revised demand will show surpluses and shortages which will allow you to take corrective action such as:

recruiting to meet a shortage of those with senior management potential allowing faster promotion to fill immediate gaps developing cross functional transfers for high fliers hiring on fixed-term contracts to meet short-term skills/experience deficits reducing staff numbers to remove blockages or forthcoming surpluses. Thus appropriate recruitment, deployment and severance policies can be pursued to meet business needs. Otherwise processes are likely to be haphazard and inconsistent. The wrong sort of staff are engaged at the wrong time on the wrong contract. It is expensive and embarrassing to put such matters right.

How can HRP be applied? The report details the sort of approach companies might wish to take. Most organisations are likely to want HRP systems:

which are responsive to change where assumptions can easily be modified that recognise organisational fluidity around skills that allow flexibility in supply to be included that are simple to understand and use which are not too time demanding. To operate such systems organisations need:

appropriate demand models good monitoring and corrective action processes comprehensive data about current employees and the external labour market an understanding how resourcing works in the organisation. If HRP techniques are ignored, decisions will still be taken, but without the benefit of understanding their implications. Graduate recruitment numbers will be set in ignorance of demand, or management succession problems will develop unnoticed. As George Bernard Shaw said: to be in hell is to drift; to be in heaven is to steer. It is surely better if decision makers follow this maxim in the way they make and execute resourcing plans.

Objectives The important

of objectives of

Human manpower planning

Resources in an

Planning organization are

1. to recruit and retain the human resources of required quantity and quality. 2. to foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies 3. to meet the needs of the program of expansion, diversification etc., 4. to foresee the impact of technology on work, existing employees and future human resources requirements 5. to improve the standards skill .knowledge,, ability, discipline etc., 6. to assess the surplus or shortage of human resources and take measures accordingly., 7. to maintain congenial industrial relations by maintaining optimum level and structure of human resources; 8. to minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place; 9. to make the best use of its human resources; and 10. to estimate the cost of human resources.

IMPORTANCE HUMAN IN ORGANIZATIONS

RESOURCES

OF PLANNING

InTroduction

Planning is very important to our everyday activities. Several definitions have been given by different writers what planning is all about and its importance to achieving our objectives. It is amazing that this important part of HR is mostly ignored in HR in most organizations because those at the top do not know the value of HR planning. Organizations that do not plan for the future have less opportunities to survive the competition ahead. This article will discuss the importance of HR planning; the six steps of HR planning that is : Forecasting; inventory, audit, HR Resource Plan; Actioning of Plan; Monitoring and Control. Definition of HR Planning Quoting Mondy et (1996) they define it as a systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required. When we prepare our planning programme, Practitioners should bear in mind that their staff members have their objective they need to achieve. This is the reason why employees seek employment. Neglecting these needs would result in poor motivation that may lead to unnecessary poor performance and even Industrial actions.

Importance of Planning Planning is not as easy as one might think because it requires a concerted effort to come out with a programme that would easy your work. Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly. Planning is a process that have to be commenced form somewhere and completed for a purpose. It involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programme. HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions:

1. 2. 3. 4.

How many staff does the Organization have? What type of employees as far as skills and abilities does the Company have? How should the Organization best utilize the available resources? How can the Company keep its employees?

HR planning makes the organization move and succeed in the 21st Century that we are in. Human Resources Practitioners who prepare the HR Planning programme would assist the Organization to manage its staff strategically. The programme assist to direct the actions of HR department. The programme does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part of Management information system. HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.

Inadequacy of HR Planning Poor HR Planning and lack of it in the Organization may result in huge costs and financial looses. It may result in staff posts taking long to be filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the production of the Organization. Employees are put on a disadvantage because their live programmes are disrupted and they are not given the chance to plan for their career development. The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of the Organizations budget, workforce Planning enable the Organization to provide HR provision costs. When there is staff shortage, the organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of staff, have to be considered. Steps in HR Planning Forecasting HR Planning requires that we gather data on the Organizational goals objectives. One should understand where the Organization wants to go and how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the Organization. They stern from

shorter and medium term objectives and their conversion into action budgets (eg) establishing a new branch in New Dehli by January 2006 and staff it with a Branch Manager (6,000 USD, Secretary 1,550 USD, and two clerical staff 800 USD per month. Therefore, the HR Plan should have a mechanism to express planned Company strategies into planned results and budgets so that these can be converted in terms of numbers and skills required.

Inventory After knowing what human resources are required in the Organization, the next step is to take stock of the current employees in the Organization. The HR inventory should not only relate to data concerning numbers, ages, and locations, but also an analysis of individuals and skills. Skills inventory provides valid information on professional and technical skillsand other qualifications provided in the firm. It reveals what skills are immediately available when compared to the forecasted HR requirements.

Audit We do not live in a static World and our HR resources can transform dramatically. HR inventory calls for collection of data, the HR audit requires systematic examination and analysis of this data. The Audit looks at what had occured in the past and at present in terms of labor turn over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the future in the Organization. HR Resource Plan Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its staff at full pace in the way ideally suited to their individual capacities. The main reason is that the Organizations objectives should be aligned as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may also be referred to as HR Planning or succession planning.

The questions that should concern us are: a) b) Are we making use of the available talent we have in the Organization, and have we an enough provision for the future? Are employees satisfied with our care of their growth in terms of advancing their career?

Assignment of individuals to planned future posts enable the administration to ensure that these individuals may be suitably prepared in advance.

Actioning of Plan There are three fundamentals necessary for this first step. 1) Know where you are going. 2) There must be acceptance and backing from top management for the planning. 3) There must be knowledge of the available resources (i.e) financial, physical and human (Management and technical). Once in action, the HR Plans become Corporate plans. Having been made and concurred with top management, the plans become a part of the companys long-range plan. Failure to achieve the HR Plans due to cost, or lack of knowledge, may be a serious constraints on the long-range plan. Below is an illustration of how HR Plan is linked to corporate Plan. The link between HR Plan and Strategic Management STRATEGIC MANAGEMENT Organizational goals Organizational goals Strong and weak parts &weak points Opportunities and threats Opportunities & threats Sources of Competitive advantage Competitive advantage Identify People related matters Implement Hr Processes Goals & plans & Practices HUMAN Bohlander et as (2001) RESOURCES PLANNING -> HR PLANNING STRATEGIC PLAN Values Mission Stron g Goals and Priorities Resource Allocations Source of

Define HR strategies, Policy

Monitoring and Control. This is the last stage of HR planning in the Organization. Once the programme has been accepted and implementation launched, it has to be controlled. HR department has to make a follow up to

see what is happening in terms of the available resources. The idea is to make sure that we make use of all the available talents that are at our disposal failure of which we continue to struggle to get to the top.

Do you have an HR Plan in action? Let us all check where we are working and see whether there is really a Human Resource Plan. If its not available, let use try to develop one and you would see how you will make a difference. It is quite true that HR plan is the basis of Human Resources Management. If we do not know how to develop it, then we are not doing an services to our Organizations and our impact will not be felt in the management pool.

Author: Nyamupachari Vareta About the Author: Mr Vareta is Human Resources Assistant, World Health Organization, Brazzaville, Congo. He has done Dip PM; HND Dip HRM; Dip TM (IPMZ). Contact:varetan@yahoo.com