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Resources » Articles/Knowledge Sharing » Education »
Human Resource Planning & It's Alternative Approaches
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Human Resource Planning
Human resource planning is a process by which an organization / institution ensures that it has right number of people at right places or we can say right kind of people.
For human resource managers, the strategic future planning of staff is crucial. This is the process of ensuring that the right people are in the right place at the right time. More formally, a strategy for the acquisition, utilization, improvement and retention of the human resources required by an organization pursuit of its objectives.
Not only is the number of staff required in any given period considered, but the gender, age, qualifications and experience. A forward-looking business will need to know what its overall targets and aims are before it can budget for the future. This ‘budgeting’ includes financial provision, premises, plant, machinery and equipment – and people. The technique is to visualize the organisation in the future – typically in three or five year’s time –
This plan shows how strategic human resource planning takes place.
You can see that there is a feedback mechanism which allows the actual human resource plan to be checked against the aims and objectives of the organisation. This is vital. If the required personnel cannot be recruited or trained, then the organisational objectives may need to be amended in some way.
HRM planning is a form of risk management; appraising the facts and likely influences on the current and future organisation.
Human resource planning should be a long-term and on-going process. As a firm evolves and grows, so will the demands placed on its staff.
Another way to look at the HR Planning process is
The time scale depends on the organisation and the external influences on it; for some organisations it will be six months, for others five years. The stability of the environmental factors is an important influence.
The outcomes of systematic human resource planning are likely to include:
• A Training Plan
• A Recruitment Plan
• A Redundancy Plan.
The HRM response to these ideas has come form Kane and Stanton (HRP in a Changing Environment) who suggest three alternative approaches.
The Staff Vacancy Approach
A reactive approach which assesses whether a vacancy should be filled and then promotes or recruits someone to fill it. This has the advantage of flexibility, but works best for small organisations in stable environments. At the other end of the scale, firms in very volatile situations may feel that long term projections are a waste of time.
Short Term HR Strategy
Change and uncertainty may make long term forecasting pointless, but for some organisations line mangers and HR managers can work together to identify ‘key issues’ on an ongoing basis. The key issues are based on an assessment of external pressures and organisational change. This allows for a short term strategy, which is more sophisticated than filling vacancies.
Vision Driven HR Development
This is a long term approach, but is not driven by detailed staffing statistics. Instead it is driven by organisational core values and mission. This approach is often used where a major shift in culture and behaviour is needed.
The Kane and Stanton approach can be expressed as a form of flowchart :
All of these approaches are trying to close the future gap between demand and supply.
Making HR Planning Work
1. A deficiency of labour
• Internal transfers and promotions, training and development
• External recruitment and improve recruitment methods
• Extend temporary contracts
• Delay retirements
• Reduce labour turnover by reviewing causes (including pay)
• Use freelance/agency staff
• Develop more flexible working methods
• Encourage overtime
• Negotiate productivity deals
• Automation – increase productivity through capital investment
2. A surplus of labour
• Natural wastage – no replacements
• Freeze new recruitment
• Redundancies – voluntary and/or compulsory
• Early retirement incentives
• A tougher stance on discipline to increase dismissals
• Job sharing
• Eliminate overtime
• Re-deploy – this may require a new focus for the organisation.
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