Most of business owners organize their business plan prior to establishing the business. Nevertheless, owners of small business frequently do not incorporate human resource planning as a component of their general business plan. Some business owners might commence with only a small number of employees or none at all. As time goes, it is crucial to forecast properly employment needs. Failing to foresee the needs of the personnel can have an effect on the general success of the business, just like failing to deal with the possible threats in the marketplace. Business success is directly associated with the performance of the individuals working in the business. According to Bandt & Haines (2002), underachievement can be an outcome of workplace failures. Since hiring the wrong individuals or failing to foresee fluctuations in hiring needs can be costly, it is crucial for the human resource director to put effort into human resource planning. In this regard, this part of the paper critically evaluates the practical operation of human resource planning in the organization.
According to Bhattacharyya (2009), human resource planning will assist the human resource manager or director to ensure that the employees have the required competencies and skills needed for the business or the company to succeed. A human resource plan seems to work hand in hand with the business plan in order to determine the required resources to attain the goals of the business and the organization as a whole. It is better for the human resource director to prepare the recruitment, staff turnover, and strategic hiring. In addition, it is also significant for the HR department, headed by human resource manager to alleviate stress when there is an emergency. This section of the paper will also provide how the organization can develop an effective human resource plan.
Forecasting the Hiring Needs
The day-by-day needs and the hectic lifestyle of managers frequently has the unfortunate by-product referred to as human resource (Iveta 2012). Usually, human resource planning is placed at the bottom of the list. Failure of the human resource manager to foresee possible changes in the workforce frequently results in the last minute decision. Taking enough time to anticipate the future hiring demands saves the person in charge of human resource time and money in the long-term.
The planning for human resource needs to be linked to the overall business plan. This can be partly achieved by assessing the present condition and future organizational organization. These assessments should be performed regularly (Iveta 2012). There are various things to consider when performing the above analysis. These issues include the organizational goals and objectives; the effect of these organizational goals the new markets; planning of new product lines; necessity of the changes in the new technology; and the effect of training on accomplishing the organizational goals and objectives. Human resource directors can use a three-step procedure to determine whether or not to hire. The first step is identifying the strategy and needs of the business. The second step is conducting job analysis and writing job description. The third step is determining the feasibility of hiring.
Identifying Business Strategy and Needs
It is important for the human resource manager to identify pressure and opportunities in the business of the organization. As such, Reddy (2005) highlighted that they should not only consider both internal and external opportunities but also record their effect on the business of the organization. Some of the pressures include competition and technology. With regard to competition, the human resource manager might feel pressure to hire more workers in order to remain relevant int the competitive business environment. With regard to technology, its advancements might increase the demand for employees in the IT department. According to Swart et al. (2012), increased customer demand is an opportunity to the organization. The human resource director must be keen to capitalize on such opportunities by increasing the number of employees. The economy is another pressure felt by the human resource manager. Lower interest rates or growth in the economy causes increased spending, and frequently increased business opportunities. Changes in the labor market affect the ability of the human resource managers to recruit and retain employees.
It is also important for the human resource to clarify business strategy and direction when planning for human resource (Swart et al. 2012). In this regard, the human resource director defines the business of the organization based on key functions and tasks, and then defines the changes, which will be adopted. For instance, if the HRM department anticipates a 50 percent increase in sales over the next 2 years, it is important to consider the effect of such expectation on the hiring needs. The identification of the organizational goals and needs assist in predicting future needs of recruitment, in terms of the number of employees, work experience and types of skills. This process of planning assists the manager to avoid making mistakes, such as recruiting employee prematurely.
According to Bandt & Haines (2002), the planning of human resource should also involve the identification of the business aspects that require help. Once the HR director has developed a sense of direction taken by the organization, he or she should determine the human ability required by the organization in order to achieve these goals. The HR director should identify the business aspects that require assistance and the knowledge and skills needed of a new employees. As such, the HR planning requires hiring of people with a specific set of skills.
Conducting Job Analysis
If the human resources director decides that there is need for additional workers to achieve organizational goal, it is recommended to perform a four-step analysis. The first step us conducting job analysis is reviewing the current workforce. According to Swart et al. (2012), this involves describing the employees based on the skills, experience and knowledge, and describing how they perform together in achieving organizational goals. These descriptions should be mapped onto the strategic plans. At the same time, the HR manager should consider how the present work could be reorganized to utilize the present and future workers (Iveta 2012).
The second step is identifying knowledge and skills gaps (Bhattacharyya 2009). This involves noting any gap between abilities and skills the present workforce has, and the abilities and skills that the workforce requires to attain the organizational goals in the future. In order to ensure that the organization has considered the full scope and new position from the perspectives, the director should ask the present workforce what they feel this position would be.
The third step is writing job description. This is a worthwhile exercise, though some businesses do not take the time to draft job description. After the accomplishment of the first two steps, the HR director should draft job description (Swart et al. 2012).
The fourth step is setting an appropriate salary. This involves adopting a general range of salary in order to assist in determining what is needed to budget. This step might require a complete job evaluation, whereby the jobs are ranked based on their salaries. According to Iveta (2012), the setting of appropriate salary involves weighing the significance of the crucial skills and knowledge for very position. It also involves comparing positions, and ranking the new position on the pay scale accordingly. The external market can also be another significant resource when setting salaries during the planning of human resource. This is because it allows the HR manager to look at the same positions in other organizations by checking postings on the internet.
Determining the Feasibility of Hiring
This is the third step in human resource planning. Before hiring, it is important to understand the costs and benefits of hiring, as well as the risks of not hiring (Bandt & Haines 2002). Some of the possible costs of hiring include labor costs, which include salary and benefits, and recruiting costs, which comprises of advertising costs and time spent on recruitment activities. Some of the possible benefits of hiring to be considered in human resource planning include improved morale, productivity, and increased revenue and customer satisfaction. Some of the possible risks of not hiring despite the need to an additional employee include the loss of revenues, and more unemployment. Unemployment might arise because employees will be unwilling to continue being overworked.
The Importance of Human Resource Planning
The first importance of HR planning is the provision of quality workforce. According to Reddy (2005), effective human resource planning fulfills the needs of the organization for quality workforce. Quality workforce assists in providing an organization a competitive advantage over its competitors. The second significance of HR planning is the reduction of costs of labor. An effective human resource plan significantly cuts down the costs of labor by maintaining a balance between the supply of and demand for HR. according to Iveta (2012), HR planning serves as a cost-saving tool for the organization.
Human resource planning is also an important tool for improving the skills, abilities and the capacity of employees. It achieves this via training and development. The training aspect of HR planning assists employees in improving their working ability, and therefore seems to develop a quality workforce.
Human Resource Development
Human resource development has other deeper concerns than its association with organizing training courses in the workplace. It is important to distinguish between human resource development (HRD) and human resource development process. According to Bhattacharyya (2009), HRD, as a process is about more than the provision of training courses in the workplace. Human resource development process involves observation during the evaluation of HRD. In integrates planning via setting objectives for HRD at work interventions in order to attain particular kinds of outcome. On the other hand, HRD refers to a part of the management of people, which deals with process of guiding, facilitating and coordinating work related development and learning in order to guarantee that teams, organizations and individuals can perform as desired. Knowing the primary parts of HRD process, and being capable of effectively dealing with them is a crucial part of the human resource management.
The Three Dimensions of Human Resource Development
HRD managers and practitioners seek to guide and facilitate learning and development. Economics, psychology, ethics and systems thinking all offer ways of thinking about a team, an individual and organizational learning (Reddy 2005). Most authors widely agree that effective performance in work roles require the combination and development of three elements that include cognitive capacities, capabilities, and desired behavior. These three elements form the three dimensions of human resource development. According to Bandt & Haines (2002), the three dimensions of HRD are required in each work role, from the non-sophisticated roles to the most sophisticated and demanding roles. They are necessary in every organization, form the smallest organization to the complex and technologically sophisticated multinational company.
Efficient performance needs the development, presence and deployment of cognitive capacities or functions of the brain. The manner in which cognitive capacities are conceived shows the how the brain is modeled. Every person has a brain consisting of the same basic parts. It is also common to conceptualize the brain as comprising of a division between areas specialized in processing logic, numbers and words, and areas specialized in processing picture, music and rhythm. The brain can also be modeled as a holistic system that is regulated by a master cognitive capacity, which might be the typical intelligence quotient (IQ).
Some work roles might need high IQ levels or complex and technical thinking skills. According to Bhattacharyya (2009), this is because the job is sophisticated and needs independent use of judgment and thinking in a context of significant responsibility. Other jobs might require little thinking skill or IQ. Such jobs require awareness and memorization of the basic instructions.
According to Reddy (2005), cognitive abilities are usually linked to the context of HRD with concepts o understanding and developing. These are what individuals fain by studying for a work role before taking part in it. According to Reddy (2005), cognitive capacities are what people get from experience over time while in the role. Both knowledge and understanding herald performance and evolve alongside it. However, the concepts of understanding and knowledge are themselves multifaceted and complex. In addition, the way of obtaining them is also complex. Knowledge and understanding might refer to “know how” or “know what.” They might be reflected in the simple forms, like making sense of a message. They might also require the deployment of higher order and analytical neurological abilities, which are demonstrated in activities like problem solving, creativity and problem solving. The development and enhancement of knowledge and understanding cannot often precede organization and individual performance. Employees gain knowledge and understanding from experience. According to ROO, effective performance can also involve tacit understanding and knowledge.
In order for an individual or organization to perform to the standards specified in employment, they require more that certain knowledge and understanding levels. As such, employees require capabilities. An individual might have a high IQ, and a fully efficient brain, but be incapable of doing what the job description entails. Capabilities refers to the practical competence or skills that the organization and people need to attain the specified performance.
According to Bhattacharyya (2009), capabilities are the practical abilities required in performing a work role. They are neither developed by practicing nor inherent in an individual. Capabilities might be viewed in three distinct levels: underpinning capabilities, intermediate capabilities, and overarching capabilities. The examples of underpinning capabilities include honesty and literacy. The examples of intermediate capabilities include communication and motivation. On the other hand, the examples of overarching capabilities include customer orientation and teamwoking.
The concept of competence has become widely deployed as an alternative to the concept of skills. Many organizations have established a set of competence descriptions for their employees. In this sense, competence is defined as a consisting of the major attributes expected and desires of superior performers. It involves establishing a list of key qualities and standards by which all staff in the organization might be assessed or appraised.
This is the third dimension of HRD. As well as developing and identifying the cognitive capabilities and capacities necessary for performance, it has long been emphasized that there is a significant third determinant of performance. Desired behavior is frequently defined in terms of developing social skills, attitudes, developing emotional intelligence (EI). Attitudes refer to the settled ways of feeling and thinking about something or someone. According to Iveta (2012), they are both negative and positive orientations concerning the world. Social skills refer to the soft skills linked to the effective interpersonal behavior. Emotional intelligence is the controlling and understanding of emotions in order to act efficiently in social scenarios.
Reddy (2005) pointed out that these constructs have in common a shared concern with making and acknowledging transparent affective influences in social situations and behavior. In order to get the desired behavior forms in the context of workplace performance, the employees must develop the right kinds of soft skills, attitudes or emotional intelligence. The way in which employee perform I work roles are influenced not only by what they tacitly or explicitly know, or what they can expertly or basically do, but also by how they feel. As such, the manner in which employees perform can differ significantly, even if they had similar types and levels of cognitive capability and capacity.
According to Bhattacharyya (2009), the three distinct dimensions of human resource development interact in any organizational and personal performance. As such, guiding, facilitating, and coordinating human resource development is a process that needs every of these interdependent aspects of performance in order to be understood.
The Advantages of Human Resource Development
HRD increases employees’ commitment. An organization that embraces the basics of HRD recognize the significance of its HR, and channels its efforts on offering employee security, rewarding and acknowledging employees efforts, and offering a level of employment. Such organization provides employee security by selecting, employing, training and retaining the suitable individuals for the right job (Bhattacharyya 2009).
Organizations embrace human resource development also experience improved performance of employees and learning capacity. The major focus of HRD lies in improving and training the abilities of employees. Organizations that focus on improving and training the values, skills, perspectives, knowledge and attitudes of employees are most likely to retain employees, who use their full capacity and contribute to the overall goal of the organization (Bhattacharyya 2009).
Human resource planning will assist the human resource manager or director to ensure that the employees have the required competencies and skills needed for the business or the company to succeed. The planning for human resource needs to be linked to the overall business plan. This can be partly achieved by assessing the present condition and future organizational organization. It is important for the human resource manager to identify pressure and opportunities in the business of the organization. HRD managers and practitioners seek to guide and facilitate learning and development. Economics, psychology, ethics and systems thinking all offer ways of thinking about a team, an individual and organizational learning.
Bandt, A & Haines, S 2002, Successful strategic human resource planning: creating your people as a competitive advantage, Systems Thinking Press, New York.
Bhattacharyya, D 2009, Human resource planning, Excel Books India, New York.
Iveta, G 2012, ‘Human resources key performance indicators’, Journal of Competitiveness , vol 4, no. 1, pp. 117-128.
Reddy, M 2005, Human resource planning, Discovery Publishing House, London.
Swart, J, Mann, C, Brown, S & Price, A 2012, Human resource development, Routledge, London.