The Inclusion of HR in Organizational Planning - Essay Example

Human Resource Planning Question What is your reaction to the fact that inclusion of HR in organizational planningis a relatively recent evolution? The inclusion of HR in organizational planning is a healthy development for companies because of several reasons. Firstly, HR management helps to secure the best resources for an organization. Many organizations are able to achieve their objectives because of having the best combination of human capital in the organization. Human capital can be described as a combination of skills, knowledge, innovation and culture that are adopted by employees in a particular organization. These attributes of employees can be identified and put into effective use that aligns to the company objectives through HR management. Therefore, it is important for HR management to be involved in organizational planning in order to identify the appropriate resources to attain the planned objectives. Secondly, organizations are able to craft effective and successful corporate strategies with the help of HR management. Effective corporate strategies can be formulated with the help of HR management because of several reasons. To start with, HR policies can easily achieve coordination flexibility where it is possible to make effective use of available resources by making necessary reallocation to keep up with the changing needs hence making it easy for an organization to attain desired objectives even in a changing environment. In addition, HR policies can help an organization to attain resource flexibility, which is essential for company success in the market particularly if product or service differentiation is the strategy of choice to compete in the market. Resource flexibility can be attained through cross-training, job rotation and team training, processes that can be effectively executed through HRM management. Question 2: List five reasons why HR should be included HR management should be included in planning because of the following reasons: i. HR management can help to identify the correct type of employees in order for the organization to attain core objectives. For example, HR can help to acquire employees with minimal to average skills for companies that adopt Low-Cost-Provider Strategy or highly skilled employees for companies that adopt Differentiation Strategy in market competition. ii. HR management can initiate the correct procedures to select appropriate employees in different organizations. Recruitment costs should be kept at the lowest levels in companies in order to reduce the general expenditures. In this case, the HR is responsible for evaluating the cheapest avenues of sources employees with the required skills. For instance, the HR department can decide to advertise internally through a memo if an evaluation of existing employees indicates that there are existing employees with the required skills. Further, employees can advertise the available opportunity by word of mouth. iii. HR planning can be tailored towards the company objectives. Many companies have organizational objectives that drive the purpose of the company. However, these objectives can only be met if other all departments in the company align their strategies in accordance to the chief organizational objectives. In this case, the HR department can align to the main organizational strategies by sourcing for employees with the right skills to accomplish certain tasks associated with company objectives. Further, the HR can achieve external fit in an organization by aligning business objectives and HR initiatives by acquiring human capital that fits into the company strategy. iv. HR management can craft a compensation package for employees that suites the objectives of the organization. Different companies have diverse business strategies that can be greatly affected by the type of compensation package given to employees. For example, companies aiming to compete by providing low cost products in the market aim to reduce their cost of production while still maintaining the quality of their product. In this case, the HR can source for employees who provide services to the company at minimal costs like part-time employees. v. Finally, the HR can effectively carry out performance evaluation on the employees in order to make informed decisions. Performance evaluation for employees is important because it enables the employer to make informed decisions concerning the available human capital in relation to the company objectives. The HR is department can evaluate company employees to establish whether their performance is in line with business strategies in the organization. In this case, the HR can motivate the employees if their performance is impressive or advice employees with poor performance on ways of improving their performance. Question 3: Comment on Eagle’s decision to pursue expansion plans without involving HR in the initial phases of the process. The planned expansions in Eagle Air Craft Company without involving HR are not a good idea because of several reasons. To begin with, the strategic process requires that HR be included in making decisions that can be agreed upon by evaluating the available internal and external resources essential for the success of the new project. From the discussion held by Claire, human resources manager, and Carl, vice president in marketing, it is evident that the HR department was not aware of the planned expansion in Eagle Air Craft Company despite the fact that an up-to-date computerized equipment that required skilled staff was to be installed in the new ware house facility. This could present a problem in the company because the new equipment cannot be utilized by the existing staff. This was evidenced by Roy, production supervisor, who expressed concerns about the ability of maintenance staff in handling the new equipment. Of more significance it is important to note that HR department plays an important role in company expansion process, something that should have been adhered to by Eagle Air Craft Company. Firstly, the HR can analyze the internal and external environment in order to provide an advice for expansion. For instance the HR for Eagle Air Craft could have alerted the top management that it could be challenging to get skilled employees to operate the new machine acquired hence avoiding challenges presented in the expansion process. Secondly, the HR helps in developing strategies to hire the right candidates in line with company business strategies. For example the HR for Eagle Air Craft Company, could have advised the top management that there could be a need to finance advertisement outside the area after evaluating the internal environment. In addition, the HR department helps to formulate company budget when expanding by factoring in the planned compensation package for new employees. Further, the HR ensures that the business objectives in the new expansion are adhere to by carrying out performance evaluation on employees working in the expansion plant and advising them where appropriate in order to adhere to company objectives. Question 4: Can the expansion be a success without HR involvement? Explain. The planned expansion in Eagle Air Craft Company cannot be successful without including the HR because HR management is essential in determining methods of accomplishing the objectives effectively. For instance, the HR department can help in sourcing necessary staff to operate the new equipment to be installed in the acquired warehouse. Therefore, until the HR department recruits employees with qualified skills, the planned expansions in Eagle Air Craft Company will not be successful. The role of Claire as an advisor to the Eagle Aircraft Senior Management staff is to participate in formulation of corporate strategies by providing relevant guidance concerning the availability of resources that can be used to accomplish specific objectives. This way, the Senior Management staff of Eagle Aircraft Company can make informed decisions that can be executed successfully. Claire is likely to face several problems if the expansion in Eagle Air Craft Company takes place. To start with, the HR will be forced to look for a qualified staff to operate the new up-to-date computerized equipment for the shortest time possible hence over stretching the capability of the department. Secondly, the HR department maybe branded a ‘failure’ if the recruited employees do not match up to the expectations of other departments in the company even though the HR was not given an ample time to source for ‘truly’ qualified employees to work with the new equipment. The HR department in Eagle Air Craft Company should start by evaluating the company’s internal and external environment to identify additional resources required to facilitate the expansion process. In addition, the HR should advertise for the opening in other areas apart from the company location because initial advertisement in the local area did not fetch a qualified applicant. Further, the HR department should craft compensation package that is in line with the company business strategy when expanding. For example, the HR should craft compensation package that promotes innovations among employees considering the fact that Eagle Air Craft is a technical company involved in producing small commercial aircrafts meaning that innovation can help in market expansion. Read More