Effective Human Resource Planning - Essay Example

Human Resource Planning Workforce planning or human resources refers to the process of determining when, where, how much, what qualification and at what cost the organization require employees to solve its problems. In other words Human Resource Planning can be defined as an attempt to predict the quantitative and qualitative requirements of the organization in the future employees and assess the extent to which this requirement can be satisfied. This process includes a comparison of the current human resources of the organization with the possible need in the future and, consequently, with the organization of the relevant programs of recruitment, training, redeployment and possible layoffs. Effective human resource planning should result in the presence of the right people doing the right job at the right place at exactly the right time. Human resource management strategy is created on the basis of the overall development strategy of the organization and is a means of action in respect of staff to achieve the organizations goals. In essence, strategic planning and human resources are compared with organizational competencies in order to implement the development strategy and then determining the needs of the organization in context with these resources in the future. On the basis of the HR strategy and to ensure its implementation, a plan is developed for organizational and technical measures, containing a package of concrete actions, timing and methods of their implementation, as well as resource requirements. Typically, the plan is for one calendar year and may be revised during this period. Creating a plan of organizational and technical measures, in fact, is the process of human resource planning. The most important part of this human resource planning is the corporate plan of the organization. This plan establishes the goals of the organization, such as the percentage of controlled market in coming five years. Such goals obviously affect labor requirements. Workforce planning at the corporate level can be a very complicated procedure, using computer simulations and complex mathematical methods to make predictions. Effective personnel management organization is impossible without adequate information. Therefore, the human resources department or personnel departments collect data describing various aspects of the state of the organizations personnel and conduct their in-depth analysis. Corporate management plan is a guide for identification. How the organization will increase or decrease the future demand for labor in comparison with the current period. The plan details out significant points such as distribution of employees by age group and the average duration of work of employees in the companys impact on future rates of personnel outflow. External factors influence the potential difficulties of recruitment. Nevertheless, no matter how good the plan seemed to hire and manage labor, conversely, the complexity of the internal procedures for the recruitment of new staff for the current or proposed work should not significantly determine your decision to replace staff. Decision should be based on what is to be achieved in the unit and how it should be organized as a work which requires the number of employees and what should be their qualifications to achieve these goals. In addition, any plan for workforce must constantly be reviewed and monitor its compliance with the actual situation of lower-level employees should also be looked over again and again. Before you decide on filling vacancies, you probably should look more closely at the work and the proper vacant post. The planning process of human resources should consider the following factors. Internal Factors - Strategic goals and objectives of the organization - The movement of staff (layoffs, retirement, maternity leave , temporary disability ) - Financial condition, tradition organization External Factors - State of the economy (industry growth, inflation and unemployment) - The development of engineering and technology, public policy (changing labor laws, tax regime, social security systems) - Competition and market environment In determining staffing requirements in each particular case it is advisable that it should be the presence of the participation of the heads of departments. The main objective of planning is to attract staff satisfaction in the long term demand for workers due to internal and external sources. The activities such as planning release almost got to the last time in the development of domestic organizations . Given the importance of such an event, as the care of the organization, the main task of HR, working with firing an employee is the maximum possible mitigation of the transition to a different production, social, and personal situation. Planning is also done for training and is implemented through the development of substitution plan established posts. While taking into account the qualification part in determining the place of work, should be mental and physical stress on the person. Planning of training includes activities for the internal perspectives and self study training in an organization allows the use of its own production resources without working to find highly new qualified personnel in the external labor market. Such a plan creates the conditions for mobility and worker motivation. Business career planning practices should also be included as a combination of personal expectations of employees in the area of their career with the opportunities available in the organization. Modern level of human resource management requires planning careers of each administrative employee. Personnel costs are the basis for the development of industrial and social performance of the organization. Human resources are one of the main factors of production of any organization, the quality and efficiency of which depends largely on the results of operations and its competitiveness. Currently, for the effective functioning of the organization, it should be kept in mind that the firm should be able to promptly and adequately respond to any changes in the environment. To achieve mobility and flexibility of organization, managers should consider the effect of all factors affecting the organization, as well as be able to predict their possible change in the future. Every manager should understand that planning is one of the main functions of management, which helps not only to take into account possible changes in the environment, but also allows the development of activities that will help to overcome the impact of negative factors and, most importantly, the proper use of these opportunities for the benefit of organization, thereby increasing its competitiveness. A critical first step of human resource planning is the formulation of problems in product mix, production methods, markets, etc. Hence the need for human resources, which corresponds with the current situation on the labor market, on the basis of this plan is to develop human resources. Then, management must consider the plan of human resources in relation to the need to correct problems of the company, for example, a company faces a situation in which it proves impossible to increase production as scheduled due to the fact that the planned human resources for this or cannot be trained in a given timeframe, or do not exist in right volume. Long-term plan for human resources of the company, usually involves an attempt to predict the next five years. The company must assess the demand for labor, the potential sentence (subject to the adjustments to the current use of diversion, underutilization or overuse) and the state of the environment activities. By studying the interaction of all these factors, it can help the organization to make a plan indicating how many and which ones may need workers in the future. After consideration and coordination of all of these factors, the firm can make the final plan of human resources, detailing the how many employees the quantity, functions, qualifications, jobs and placement should be used at different stages of the future period. After agreeing on a plan of human resources should be communicated to all employees, but especially it is important to inform managers and trade unions or workers representatives. It is often necessary and desirable to negotiate with the union on the details of the plan. Short-term plan of human resources is a kind of plan, which is usually designed for a period not exceeding one year, it is much more common than long-term plan of human resources. In many companies, managers do not have enough skills to predict the period up to five years, or they believe that the nature of their business makes it impossible to forecast more than one year, then in such situations short-term workforce plan is relatively easy to make, because there is always a production plan or a marketing plan for the year ahead, detailing the size of the estimates, the volume of orders of new materials and components for production and sales standards, for a firm. From here you can select the desired amount of labor in the future of production workers in terms of working hours, and then dividing this figure by the number of available working hours , you can get in the future need of production workers . Nevertheless drafting long-term plans of human resources is becoming a more common practice, especially in large companies, which in any case have to plan their spending on capital equipment for several years ahead. Even with high levels of unemployment difficulties attracting , selecting and training of some types of workers can be so large, and the costs associated with the dismissal of surplus labor is so high that a plan of human resources becomes justified even though the uncertainties of forecasts . The Plan is considerably simplified when maintenance personnel records are computerized. Employers must provide a certain level of turnover, without that, companies would have risked stagnation. Average age of employees should increase (which also means that at some point most of the workers can retire at the same time); it may happen that new forces poured into the company to replace the old frames are not effective enough. There is no doubt that the company would be satisfied if the coefficient of layoffs would have a value of 10 to 15%, although only a few similar figures for the private sector in industry and commerce are so low. The main objective of human resource planning ( in the narrow sense ) is to ensure the implementation of plans of the organization in terms of human factors of the enterprise, employees and their numbers, skills, productivity , costs of hiring them. In life, human resource planning is addressing the issue of supply and demand for labor and the problems that have arisen due to changes in these factors. Explaining the reason for the interest in this question is simple: all plans and decisions taken at any places after the analysis of supply and demand. References Schuler, R. S., & Jackson, S. E. (1987). Linking competitive strategies with human resource management practices. The Academy of Management Executive, 1(3), 207-219. Broderick, R., & Boudreau, J. W. (1992). Human resource management, information technology, and the competitive edge. The Executive, 6(2), 7-17. Powell, T. C., & Dent-Micallef, A. (1997). 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