The Link between HR Planning and HR Management in an Organization - Coursework Example

Human Resource Planning Name Course Institution Date Human Resource Planning Introduction Human resource arm of the organization has so many functions. This could be basically based on the diversity of issues related to workforce in organizations. One of the common branches of human resource is the HR planning. As the word suggests, the human resource planning function is concerned with putting in place mechanisms that will ensure that the organization’s workforce is optimally utilized (Maloney1997, p. 49). Therefore, any plan that aims at ensuring optimization of the labor force in an organization exhibits the planning function of human resource. Through human resource planning, an organization is supplied with the required labour force throughout the fiscal period. In order to achieve the function of human resource planning, the organization dwells on three main issues. One is projecting labour demand during the chosen period. Another issue is evaluating the current labour flow to the organization and striking a balance between labour supply and demand (Briggs & Keogh 1999, p. 447). Through this function, the organization is able to deal with the labour needs both in the short run as well as in the long run. In discharging the various activities that ought to be done by the HR planning function, the organization seeks to have an upper hand in the market. This is through getting affordable labour for the various work dispensations in the organization. In essence, the existence of HR planning function is to ensure that the organization is not lacking in supply of the best talent mix. This is to ensure that all functions of the organization are discharged appropriately. The management is concerned with this function because it aligns itself with other functions of the organization in meeting the objectives set. Good HR planning practices does not give room for haphazard firing of workers to cut on the wage bill. This is based on the consideration of what such a move is likely to have on the future management of labour force. Proper HR planning allows the organization to put in place strategies that ensures that appropriate measures are followed in executing crucial functions of the organizations in relation to human resource (Fisher, Schoenfeldt & Shaw 2005, p. 559). Planning allows flexibility in the management of human resources to ensure that efficiency is attained. This function is well interlinked with other functions within the human resource role in the organization. The Link between HR Planning and HR Management in an Organization In trying to understand the relationship that exist between the management and planning functions of human resource, it is important to understand their role in the organization. The human resource management function aims at ensuring that the human asset is well managed in an organization. This is to make sure that the organization is in a position to continue with its operation as supported by the human assets. The planning function of the human resources focuses on supply and demand of the human assets (Bratton& Gold 2001, p. 171). Therefore, while the management function entails mainly ensuring proper management of human capital, the planning function ensures that such capital is available any time it is demanded. In as much as the planning function appears more of a branch of HR management, they are mostly complementary. The two functions have identical objectives to be achieved. This is meant for the benefit of the overall organization. Planning function is in a position to forecast the demand and supply of labour in the organization. HR Planning and Strategic Organizational Planning Strategic organizational planning is a blueprint that shows where the organization aims to be within a specified period of time. In order for the organization to achieve such objectives, it must have three main ingredients. The organization ought to have financial resources to be able to finance every task that is to be performed. Second, the organization is expected to embrace technology in order to develop the required product or service (Bratton & Gold 2001, p. 173). Last, the organization must have the human capital to execute the required functions. An organization’s strategic plan embraces the fact that the three elements ought to be provided for, if it has to achieve its objectives. The inability of the organization to meet any of the three components may as well mean a failure to the organization’s strategic plans. Therefore, when an organization is setting goals, the focus is upon the three main drivers of the organization. It must understand how to use the three components to realize optimal results for the organization. In terms of technology, the focus of the organization is to understand what is required to produce the product required. The complexity of technology is basically determined by the nature of the required product as well as the financial capability of the organization (Belcourt & McBey, 2009, p. 144). The organization must ensure that the appropriate technology is chosen in order to facilitate the required functions. In doing this, the organization ought to be keen based on the fact that technology is rapidly changing every day. At all the time, the organization must exhibit the determination to use technology to enhance efficiency in the production process. This will ensure that the competitive nature of the products on the market is not compromised at the expense of the organization (Herman, Hari&Terry 2002, p. 142). A part from technology, the organization also requires the financial capital to drive its strategic plan. Finances are responsible for sustaining any process in the organization. The human and non-human assets are fully sustained by the financial resources of the organization. That explains why this is treated as a special consideration when setting strategic plans. This brings on board the need to undertake effective budgeting to be sure that the financial resources an organization has can drive its plans during the specified fiscal period. Similarly, the organization is seriously in need of the human capital. Human capital is reflected through skills, knowledge, talents and abilities from the members of an organization. The skills, knowledge and expertise work together to create a product that best appeals to the market. The quality of the human resource of an organization is best exhibited through the superiority of the product that is developed (Maloney1997, p. 49). The organization ought to ensure that at any given point in time, there is a constant flow of expertise and knowledge required to sustain the productivity of the organization. When focusing on ensuring the organization has the right component of skills and expertise, whenever needed, that is when the issue of human resource planning strongly comes in. The human resource planning ensures that the demand and supply of human capital in the organization is maintained as the organization requires. The interdependent nature of resources required to drive an organization makes it mandatory for the organization to understand how to balance them in the organization. Having made the above exposition, it is easier now to expound on the link that exists between the HR planning and the strategic planning function of the organization. The strategic planning represents the macro goals of an entity while the HR planning involves the micro plans and strategies of the same entity. In analyzing the strategic plan of the organization, the need to plan for the human capital required to drive the organization becomes very critical (Stone 2013, p. 421). The success of such strategic plan will be reliant on the success of the planning function of HR. This is because the human resources must be available to drive the strategic plan of the entire organization. This explains how interlinked the two functions are in any given organization. Therefore, after the organization has put in place its strategic plan, the focus shifts to the pillars that are meant to drive it to fruition. The human resource planning is one of the pillars that organizations must seriously consider when setting their strategic plans (Fisher, Schoenfeldt & Shaw 2005, p. 601). In setting the strategic plan, the company focuses on issues like increasing market share, penetration into new markets i.e. international markets, brand awareness, etc. Achieving all this may not be easy putting into consideration the level of competition in each industry currently. One way of achieving such goals is by ensuring that the products offered on the market are spectacular and unique. This can be achieved through product differentiation. Product differentiation distinguishes a product from other suppliers based on its modifications and improvements. The human asset in an organization is the one which is responsible for differentiation. This is because innovation and creativity is generated by human capital in organizations (Boxall & Purcell 2001, p. 72). The organization attracts, recruits and maintains talented staff as a means of ensuring that innovation in the organization is achieved. The human resource planning is responsible for the supply of these innovative and talented staff is maintained. The organization is meant to run short of this useful resource in order to avoid compromising on the competitiveness of the product. Therefore, it is now clear that an organization cannot achieve its strategic plan if the micro strategies are not effective. One of the most crucial aspects of the micro plans is the human resource planning function. Attention is paid to this aspect based on the necessity and the significance of the human asset on the organization. The human asset is the most important asset that the organization can ever have. This is because it controls other assets including technology and finances. It is the human expertise that puts technology and finances into proper use to harness productivity and profitability for the organization (Bratton & Gold 2001, p. 186). This has been demonstrated quite often when a company goes an extra mile to get what it is convinced is a very resourceful person for the organization. Unlike other resources, it is not easy to spot the best human resource for the organization. Therefore, when the organization happens to spot one, it invests any amount to ensure that the human asset has been hired. This continues to expound on the importance of the organization considering the HR planning function when setting strategic plans. Importance of HR Planning In evaluating the importance of HR planning function, Google Inc. has been used as an example of companies who have greatly benefited from good HR planning practices. The company has definitely outgrown its targets since its inception in 1998. One of the pillars of this growth is definitely the human resource. The company deals mainly with services which must be constantly differentiated in order to remain competitive. Moreover, the fact that it is in technology sector implies that it must be very innovative in order to remain viable in the market. In evaluating Google’s human resource policies, it seems the company has discovered something many companies have not. According to an interview by the company’s Vice President Adam Bryant with New York Times, the boss says that they do not use GPA and test scores in their recruitment. From the information provided by the Vice President, Google understands fully the human resource needs and this makes it pretty easier to plan for those needs. The company believes in behavioral evaluation tests that seek to establish how an individual dealt with certain situations and their relationship to the tasks they are to perform in the company. The human resource function of Google is indeed plausible. The company has been voted as the best American Company to work with for two times. There are many indications that point to the benefits the company has drawn from good human resource planning. For instance, the low level of employee turnover is one indicator. The rate of employee turnover is very minimal in this company and this point to high level of employee satisfaction. It is because the company has managed to plan not only for attracting talented people, but also on strategies of how to motivate and retain them. The company has exhibited a special focus on innovation. The rate of innovation in the company is quite overwhelming. This has been manifested in the growth that the company has experienced for less than 15 years since it was established. This is not only revealed in growth of revenue, but also the service delivery as well. For instance, the search rate was reduced from 3 seconds to 0.2 seconds within one year. This is incredible. It literally points to the wealth in innovation that the company enjoys. This is basically because of its policies regarding human resource planning that has ensured the company is in constant supply of skills. The company has greatly benefited from human resource planning. While most established multinational corporations have had to endure the challenges of losing senior managers, Google has flourished on the account of proper planning by the human resource team. It took the company a very short time to attain the $10 billion annual revenue mark as opposed to what many corporations have achieved within such a period. The company’s training and development policies point to the role undertaken through planning of the company’s human capital (Boxall & Purcell 2001, p. 67). The training is designed to enrich the employees with an expectation that they will remain in the organization long enough to pay back what the organization has invested in them. This indeed is the role played by the planning function. The employees are properly motivated and compensated as a way of ensuring that they remain loyal to the company for a longer period of time. The effective human resource planning function has ensured that the supply of the fully equipped personnel is maintained in the company. As a result, this has been reflected through financial stability during the period the company has been operating. As it has been seen, human resource planning enables the company to deal with the issue of uncertainty in terms of manpower supply. Proper policies ensure that the company is in position to supply the required human labour at all times. Uncertainty in relation to human resources is manifested through loss of resourceful employees at a point where it is least anticipated (Stone, R.J 2013, p. 435). HR planning ensures that in the case an employee leaves abruptly, the company is able to make a replacement that will shield it from losing some resources as a result. Through HR planning, employees benefit a lot. The organization lays special focus on the employees to ensure that they are satisfied and well-motivated to work extremely hard. The employees will therefore receive trainings, bonuses, salary increment, promotions, etc. At the end of it, in as much as the company is incurring all this money, it eventually pays back as a result of improved performance (Bratton & Gold 2001, p. 180). It is more costly to deal with employee dissatisfaction than dealing with the above mentioned incentives. Conclusion From the discussion above, it is clear that the planning function of human resource is very critical to the organization. This is based on the significance and the uniqueness that pertain human capital in any organization. While it may sound as a distinct function in an organization, the planning function seemingly dictates other activities of human resource management. For instance, the policies that are made in relation to recruitment, training and development, employee appraisal, motivation are determined by the planning function. The demand and supply of human capital has an impact on the various activities that have been mentioned. Therefore, human resource planning lays down policies that guide the organization in relation to the various activities within the human resource framework. The various activities therefore meet the requirements due for maintaining human assets in the organization. References Belcourt, M. & McBey, K 2009, Strategic Human Resource Planning, Nelson College Indigenous, New York, pp. 139-165. Boxall, P. & Purcell, J 2001, Strategy and Human Resource Management, 3rd Ed., Palgrave Macmillan, Hampshire, pp. 63-93. Bratton, J. & Gold, J 2001, Human Resource Management: Theory and Practice, Psychology Press, Hampshire, pp. 163-187. Briggs, S. & Keogh, W 1999, Integrating human resource strategic planning to achieve business excellence, Total Quality Management, vol. 10, no. 4/5, pp. 447. Fisher, C., Schoenfeldt, L. & Shaw, J 2005, Human Resource Management, Houghton Mifflin, New York, pp. 552-624. Herman, S., Hari, D. &Terry, W 2002, Human Resource Management: A Strategic Approach, McGraw-Hill, New York, pp. 138-145. Maloney, W.F. 1997, Strategic planning for human resource management in construction, Journal of Management in Engineering, vol. 13, no. 3, pp. 49. Stone, R.J 2013, Human Resource Management, John Wiley, New Jersey, pp. 417-488. Read More