Affirmative action programs must be implemented and monitored with regard to hiring, placement, training, compensation, and advancement. Thousands of companies and not-for-profit organizations sell products and services to the government. To bid for government contracts, a firm must supply detailed information on its manpower resources. To be competitive, it must plan for and develop appropriate human resources. Human Resource Planning influences the corporate strategy and in turn influenced by it.
The Human Resource Planning process may incorporate all the stages shown below figure. The planning process may not always give exact forecasts. To be effective it should be a continuous process with provision for control and review. Understanding the goals and plans of the organization: The planning process is influenced by overall organizational goals and the environment of the business. It implies that the objectives of the human resource plan must be derived from organizational objectives.
Human Resource Planning is a part of the overall strategic planning for the entire enterprise. Human Resource managers need data on possible corporate expansion, new products, new plants, and new markets, and so on. Strategic planning : public policy, social trends, economic conditions, technology, market conditions, strengths, and weaknesses of an organization, projected outputs for planning periods.
Skills inventory: numbers of people grouped by the job, department, organizational level, location, age, education, in-service training completed, performance. Present workforce : project retirements, layoffs, promotions, and quits for planning periods. Demand people : translate plans and forecasts for the organization into demand for employees for planning periods.
Comparison of demand with supply : net additions or subtractions found by comparing a with b. Recruitment, selection, and placement; performance appraisal; career planning, transfer, promotion, layoff; training and development; motivation and compensation.
Measure implementation progress, compare with a plan, take corrective action. Change human resource plans if enterprise plans are altered, periodically update skills inventory, forecast, and implantation programs. The existing human resource within the organization constitutes an important input into the development of the overall strategic plans for the enterprise.
Furthermore, the output of the planning process explained above provides data on which HR plans and projections can be based. Once the organizational objectives are specified, communicated, and understood by all concerned, the HR department must specify its objectives with regard to HR utilization in the organization. It is the second step in Human Resource Planning process. In this step, HR planners prepare the inventory of staff present within the organization. It is basically a stock-taking exercise undertaken by HR planners.
Human resource planning is important to cope with the change associated with the external environmental factors. It helps to assess the current human resources through HR inventory and adapts it to changing technological, political, socio-cultural, and economic forces.
Human resource planning identifies the skill requirements for various levels of jobs. Then it organizes various training and development campaigns to impart the required skill and ability in employees to perform the task efficiently and effectively. This is associated with reducing the impact of uncertainty which is brought about by unsudden changes in processes and procedures of human resource management in the organization.
The importance of human resource planning are as follows: Proper Utilization Of Human Resources Human resource planning measures that the organization acquires and utilizes the manpower effectively to achieve objectives. The organization will understand how a number of factors drive retention, engagement and organizational performance, including:. By understanding these relationships, a high-performance organization can seek to close gaps not only through the traditional means of build-buy-lease, but also achieve higher retention and performance by optimizing its workforce policies around those desired outcomes.
This organization will not only be creating the appropriate plans to address gaps between its forecasted demand and supply, but will be selectively addressing potential retention and performance risks of critical resources and roles, and will manage those risks through individual action planning measures. There is now an approach for high-performance organizations to develop and sustain high-quality workforce planning programs, and break down the traditional barriers to effective workforce planning.
The organization must foster a data-driven planning culture and be willing to value the planning process as much as the actual plan. The managers who participate in this planning process will then be better equipped to make decisions as business results and forecasts change—and more skilled at simulating how changes in business objectives and conditions require different talent sets.
The organization must also invest in workforce planning technology that supports predictive supply analytics, bottom-up demand planning, employee- level action-planning, and summarization of gaps. By taking this approach, a high performance organization will be able to conduct gap analysis on the work unit, business unit, and on the organization as a whole. At the work unit level, managers will be better at planning and responding to changes in the business.
Managers will also be able to make data-driven decisions that move gradually from blanket HR policies to targeted HR interventions based on the importance of a role or the performance of the individual. Business units and the total organization will also reap the benefits of the workforce planning pro- gram. Finance and real estate will have the information needed to construct their budgets. Human Resources will be able to make better high-level decisions about recruitment, development, redeployment, and transition pro- grams.
And, senior leadership will be able to monitor the people health of the organization and the organizational capacity to meet present and future business objectives. Peter Louch is the founder and CEO of Vemo, a software and services organization that is pioneering the new way to do workforce planning. He graduated with high honors from University of California at Berkeley with a degree in astrophysics.
He can be reached at peter. Used with permission. You may be trying to access this site from a secured browser on the server. Please enable scripts and reload this page. By Peter Louch, Vemo October 3, Reuse Permissions. Page Content. Overcoming Traditional Barriers to Workforce Planning Workforce planning has topped the wish list of HR executives for years, but it has consistently been one of the most difficult programs to launch within HR. There are myriad reasons, but the most common are: Time frame.
There is no opportunity to shift this stance until managers experience the actual pain that could have been avoided through workforce planning. Organizations have a hard time settling on the appropriate level of granularity of workforce planning, or their job taxonomy. So many organizations get into self-imposed delays in rolling out their planning program by trying to find the perfect level at which to plan. From a planning perspective, however, if organizations could start by planning out high-level job categories, this is a great start, and may be enough.
Traditional forecasting methods are poor at predicting the actual individuals at risk for turnover and retirement, and, thus, are not sufficiently actionable. Workforce Planning Process Following the workforce planning activities outlined in the diagram results in these benefits: Aligns strategic planning with head count and talent planning. Creates a clear view of talent demand and supply issues by expense area, reporting relationship, and by location.
Provides managers easy-to-use reports and tools to determine the impact of their talent decisions and prioritizes future workforce investments. Provides leaders the right metrics—identifying talent risk before it impacts business objectives.
Helps control unplanned talent costs and highlights issues that limit employee productivity. Builds competitive advantage through planned versus reactive talent management. It is here that the Human Resource Planning helps the organization deal with the necessary changes. Human Resource Planning is required to meet the requirements of diversification and growth of a company.
There is a need for Human Resource Planning in downsizing the resources when there is a shortage of manpower. Similarly, in case of excess resources, it helps in redeploying them in other projects of the company. A few are mentioned below. It gives the company the right kind of workforce at the right time frame and in right figures.
In striking a balance between demand-for and supply-of resources, HRP helps in the optimum usage of resources and also in reducing the labor cost. Cautiously forecasting the future helps to supervise manpower in a better way, thus pitfalls can be avoided.
It helps the organization to develop a succession plan for all its employees. In this way, it creates a way for internal promotions.
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