Strategic Human Resource Planning Process - Coursework Example

Running Header: Strategic HRP in context Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction In any organization, human capital is considered the bulk of personality attributes, knowledge and competencies that are embodied in the staff’s ability to perform labor in a manner that will produce positive economic value (Becker 1994). Human capital simply refers to the people who work for an organization. More often than not, human capital is often referred to as the most valuable asset in any organization (Carroll, Levy & Richmond 2008). According to the Corporate Leadership Council (1998), for any organization to be successful, it has to strategically manage its human capital. For this to be done effectively, workforce planning is necessary because it will align the priorities and needs of the organization with those of its labor force so as to ensure that the organization meets its service, production, organizational, regulatory and legislative objectives (Itzkoff 2003). It is noted that most organizations plan for other activities and have strategic plans such as the strategic business plan, financial plan and marketing plan among others in their overall business planning process (Jamil 2004). According to Goldsmith and Carter (2010), the strategic human resource plan also has to be part of the overall business planning for any organization to effectively manage its human resources. Planning for human capital is essential to the success of any organization with a diverse human capital (Charan, Drotter & Noel 2001). This essay will discuss the importance of planning for human capital in an organizational context, making reference to certain workforce planning theories. The essay will consider who within an organization should be involved in the human resource planning process as well as the advantages and disadvantages of strategic human resource planning. This paper will also discuss whether organizational planning should precede strategic human resource planning, or whether they should be conducted concurrently, or whether human resource planning should precede organizational planning. Mahroum (2007) argues that the question of whether strategic human resource planning (HRP) should precede organizational planning, or the two should be conducted concurrently, or organizational planning should precede HRP has always been contentious in many organizational contexts. Organizational planning may be defined as the process through which an organization identifies its long term and immediate objectives then formulates and monitors specific strategies that are meant to guide it towards the achievement of these objectives (Mahbub ul 1996). Organizational planning entails resource allocation and staffing, therefore being a key responsibility of the management team in any organization (Itzkoff 2003). Organizational planning entails coming up with a plan on how to manage and run an organization so as to help it achieve its goals (Jaques 1989). According to Kesler (2002), organizational planning should be conducted concurrently with strategic HRP. This is because organizational planning entails the setting of both long term and short term objectives on all aspects of an organization, including resource allocation and human capital (Bowles & Gintis 1975). Since strategic HRP is part of organizational planning, it is advisable for the two organizational processes to be conducted simultaneously so as to achieve the desired results (Keeley 2007). When preparing an overall plan of work for the entire organization, the list will definitely have to include the human capital of that organization over a specified period of time. It would be more practical and advantageous to conduct the activity of preparing an organizational plan simultaneously with the preparation of a strategic human resource plan. This will ensure that the objectives of both requirements can be met simultaneously because they are related. It would be difficult to separate the two planning processes because they are both dependent on each other when it comes to fulfilling the overall goals and objectives of the entire organization. Strategic human resource planning has been identified as a series of steps that seek to identify the current and future needs in terms of human resources so as to enable the organization to realize its objectives and achieve its goals. Theories of workforce planning indicate that strategic human resource planning should act as the intermediary between the overall strategic plan of the organization and the human resource management team (Mahroum 2007). The importance of strategic human resource planning has been underscored for several years until recently when its importance could not be ignored anymore. When preparing organizational plans, the planning team does not merely define what will be accomplished and the timeframe for doing so (Carroll, Levy & Richmond 2008). The team is also involved in deciding the types and numbers of human resources that are necessary to achieve certain objectives. For organizations today, the number of human resources and their competencies in carrying out certain roles in the organizational plan is very important because it helps them to know the possibilities of succeeding. That is why it has become necessary for the two activities of organizational planning and strategic HRP to be conducted simultaneously so as to integrate their needs (Sloan 2010). The main reason why a strategic organizational human resource plan should be prepared alongside the overall organizational strategy is because of the vital role that it plays in illustrating the functions of the human resources in understanding and supporting the goals and objectives of the organization (Itzkoff 2003). The strategic HRP should be done alongside the overall organizational planning so as to capture the ‘people element’ of the aims of the organization (Carroll, Levy & Richmond 2008). This will ensure that the organization has the right people in place and the right combination of skills to achieve the organizational objectives (Sloan 2010). Employees are also given the opportunity to display the right attitudes, skills and behaviors so that they can be developed (Charan, Drotter & Noel 2001). A strategic human resource plan that is comprehensive will also support the specific strategic objectives of the organization such as marketing, technological, financial and operational objectives. The conduction of strategic HRP and organization planning should also be done concurrently so as to allow human resources an opportunity to give their input and justify the HR strategies that are being used (Carroll, Levy & Richmond 2008). Advantages of strategic HRP One major advantage of strategic HRP is the fact that it sets the strategic direction in the human capital aspects of the organization. This means that strategic human plan has the capacity to anticipate the requirements and plan for the human resource needs of the organization (Carroll, Levy & Richmond 2008). Strategic human resource planning can also be used to plan and design the human resource management system. Such a system is especially useful in the management of the human resources within an organization. Strategic human resource planning can be used to plan the total workforce of the organization so as to achieve the overall goals and objectives of the entire organization. When an organization strategically plans its human resources, it can adequately generate the required human resources because it has already anticipated for these needs. Strategic human resource planning also enables an organization to invest in human resource development and performance. This can boost the performance levels of the human capital of the organization. Generally, strategic human resource planning enables an organization to ensure that its workers are correct in terms of numbers and competencies in carrying out their assigned roles. Strategic human resource planning is advantageous because it works together with other functions within an organization so as to achieve its goals and objectives (Keeley 2007). Disadvantages of strategic HRP As much as strategic HRP is advantageous to organizations, it also has its fair share of disadvantages. One major disadvantage of strategic HRP is the fact that it is characterized by unexpected influences of economic outcomes. For example, the recent global economic crisis is known to affect strategic HRP in various ways such as affecting the hiring of qualified staff. Strategic human resource management is also a very time consuming process because it requires a lot of time to plan for the workforce of an organization. This may end up being very costly and complex because of the numerous requirements, time and effort that must be put in. The strategies and techniques used are sometimes very complex and difficult to be understood by many. Within an organization, the human resource department should be in the forefront in all matters entailing the strategic human resource planning. This is because the human resource department is responsible for the affairs and welfare of all the workers within the organization. However, the human resource department cannot be involved in strategic HRP in isolation. Since it has been realized that it is important to conduct strategic HRP and overall organizational planning activities together, it is essential that the senior management work hand in hand with the organization so as to plan for the human resource needs of the organization (Mahroum 2007). This will enable the human resource needs of the organization to be taken into consideration in the overall organizational plan. The needs of the strategic human resource plan can be integrated into the overall organizational plan so that they can be considered (Carroll, Levy & Richmond 2008). Conclusion In conclusion, it is important to note that organizations need to strategically plan for their human resource needs because human resources are essential in achieving organizational goals. This essay has highlighted the fact that strategic HRP has been ignored for a long time now but has began to be embraced in many organizations because of its numerous advantages. References  Becker, G 1994, Human capital: a theoretical and empirical analysis with special reference to Education, The University of Chicago Press, Chicago. Becker, GS 1993, Human capital: a theoretical and empirical analysis, with special reference to education, University of Chicago Press, Chicago. Bowles, S & Gintis, H 1975, ‘The problem with human capital theory--a marxian critique’, American Economic Review, vol. 65, no. 2, pp. 74–82. Carroll, B, Levy, L & Richmond, D 2008, "Leadership as practice: challenging the competency paradigm, Sage, University of Auckland Business School. Charan, R, Drotter, S & Noel, J 2001, The Leadership Pipeline: How to Build the Leadership Powered Company, Jossey-Bass, San Francisco. Corporate Leadership Council 1998, Governance of human resources in global organizations, washington: the advisory board (Research Report). Goldsmith, M & Carter, L 2010, Best practices in talent management: how the world's leading corporations manage, develop and retain top talent, Pfeiffer, San Francisco. Itzkoff, SW 2003, Intellectual capital in twenty-first-century politics, Paideia, Ashfield, MA. Jamil, R 2004, Human Capital: A Critique, Oxford University Press, Oxford. Jaques, E 1989, Requisite organization, Cason Hall Publishers, Arlington, VA. Keeley, B 2007, OECD insights: human capital, Macmillan Publishers, New York. Kesler, G 2002, ‘Why the leadership bench never gets deeper: ten insights about executive talent development’, People & Strategy, vol. 25, no. 1, pp. 32-44. Mahbub ul, H 1996, Reflection on human development, Oxford University Press, Delhi. Mahroum, S 2007, ‘Assessing human resources for science and technology: the 3Ds framework’, Science and Public Policy, vol. 34, no. 7, pp. 489-499. Sloan, J 2010, The workforce planning imperative, JSM, New York. Read More