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Literature Review on Succession Planning in HRM

Info: 3728 words (15 pages) Example Literature Review
Published: 28th Oct 2021

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Tagged: Human Resources

According to Borade (2011), the Human Resource Management (HRM) emphasizes the question about “What is the purpose of succession Human resource planning of organization?”

This question asked how is the human resource planning in the human resource management is the function with the organization that matching internal and external supply of people with job opening anticipated in the organization over a specified period of time.

“The process of ensuring a suitable supply of successes for current and future senior or key jobs.” Say Borade (2011).

Top management might be routed through the top jobs at several key divisions as well as overseas, Jeffrey Immelt, CEO of GE, moved through these positions from 1989 through 2001: vice president, consumer services, GE appliances; vice president, worldwide-GE Plastics America commercial division; president and CEO, GE medical systems; president and chairman, GE. The succession human resource management aim to make the succession human resource planning after they know how to make the succession planning in the organization. The lone-term success of any organization ultimately depends on having the right people in the right jobs at the right time. Organization objectives and the strategies for achieving those objectives are meaningful only when people with the appropriate talents, skills, and desire are available to carry out those strategies, say Borade (2011).

RESEARCH QUESTION

This assignment topic describes the human resource management need to understand and implement the succession planning of an organization; and uses the question “What is the purpose of succession human resource planning of an organization?” This topic not only how to make the succession human recourse planning in the organization and what is the element of the succession human recourse planning, and including the human resource planning effect for organization in the human resource management. But the main topic let people know the human resource planning importance in the Human Recourse Management and make what is relationship in the HRM and performance.

Planning is not as easy as one might think because it requires a concerted effort to come out with a programmed that would easy your work. Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly. According to Borade (2011) what may be an important opportunities or threat to one firm may be meaningless to another. For example, it probably doesn’t matter to General Motors that Time Warner and AOL merged (although that merger was a big event for Seagram).

IMPORTANCE OF STUDY

Planning is a process that has to be commenced form somewhere and completed for a purpose. It involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programmed.

HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. Suppose you need to identify candidates for a plant manager’s job. You first ask the computer to create a list of candidates with 10 years’ experience, including at least 5 in manufacturing. The computer then gives you 189 possibilities.

HR planning makes the organization move and succeeds in the 21st Century that we are in. Human Resources Practitioners who prepare the HR Planning programmed would assist the Organization to manage its staff strategically. The programmed assist to direct the actions of HR department.

The programmed does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part of Management information system.

HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems.

Suppose your company has identified a list of high-potential candidates and you use that as another criterion. Next, you decide materials management background is important, and that becomes another criterion. Based on this, the program narrows the list down to 77 candidates. Finally, when you ask for those who scored highest in the most recent performance appraisal, the list is reduced to a group of 11. The list is now manageable and you can list down, study their resumes, and plan for the future. Without the computer to help you search, you may very well have not considered all possibilities.

LITERATURE REVIEW

Background Information

The HUMAN RESOURCE PLANNING (HRP), sometimes referred to as work force planning or personnel planning, has been defined as the process of “ getting the right number of qualified people into the supply of people- internally (existing employee requirements. Once the employee requirements have been determined. HRP must devise plants for securing the necessary employees. Basically, all organization engages in human resource planning either formally or information. Some organizations do a good job and other a poor job.

The long-term success of any organization ultimately depends on having the right people in the right jobs at the right time. Organization objectives and the strategies for achieving those objectives are meaningful only when people with the appropriate talents, skill, and desire are available to carry out those strategies.

Quoting Mondy et (1996) they define it as a systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required. When we prepare our planning programmed, Practitioners should bear in mind that their staff members have their objective they need to achieve. This is the reason why employees seek employment. Neglecting these needs would result in poor motivation that may lead to unnecessary poor performance and even Industrial actions.

The main topic has three points to explain how to make the succession human resource management planning in the organization, those topic are manpower planning, Comparing requirements and availability, and Forecasting HR availability. Those three key points are element of the topic question.

Key Point 1 Manpower planning

A requirement forecast is an estimate of numbers and kinds of employees the organization will need at future in orders to realize it stated goals according to the human resource requirement can be projected, demand for the firm’s good and services must be forecast. Manpower planning is a relatively recent approach to human resource planning designed to get managers and their employees thinking about and involved in HRP. In addition to encouraging managers and employee to think about human resource planning, CMP provides a systematic approach to human resource planning. CMP generates three reports that supply the following information: 1. the supply of employees and the promo ability and placement status of each:2.the organization’s demand, arising from new positions and turnover and projected vacancies for each job title; and the balance or status of supply versus demand, including the name, job, and location of all those suitable for promotional for Lloyd L. Byars and Leslie W. Rue(1997)

Manpower planning is the process of analyzing an organization’s need for employees and evaluating how this can be met from the internal and external labor markets. It should be an ongoing process of monitoring that helps identify the need to attract, allocate, develop, and retain human resources to meet the wider business objectives of the organization. It encourages managers in organizations to plan ahead. Good-quality human resource planning will involve analyzing data on existing employees (demographics, competencies, training, etc.) in order to assess the overall balance of existing resources and to predict possible future issues such as skill shortages, promotion opportunities, and retirement patterns.

Planning staff levels requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources. Appropriate steps then be planned to bring demand and supply into balance.say by John H.Jackson(1998).

Thus the first step is to take a ‘satellite picture’ of the existing workforce profile (numbers, skills, ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of existing employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal turnover, planned staff movements, retirements, etc, in line with the business plan for the corresponding time frames.

The result should be a series of crude supply situations as would be the outcome of present planning if left unmodified. (This, clearly, requires a great deal of information accretion, classification and statistical analysis as a subsidiary aspect of personnel management.) (accel-team.com.2011)

Key Point 2 Action Planning

The Action plans are derived from the broad resourcing strategies and the more detailed analysis of demand and supply factors. However, the plan often have to be short term and flexible because of the difficulty of making firm predications about human resource requirement in times of rapid change, Plans need to be prepared in the areas of resourcing, flexibility, retention and downsizing as described below according Michael Armstrong(1997).

There are many ways to define HR planning, or explain what it is, but the following definitions, is a good, useful working definition: Rigorous HR planning links people management to the organization’s mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost. Note the emphasis on linkage to strategic planning and business planning in the first sentence, and the emphasis on the arrangement and alignment of staff and employees in the last sentence. Here’s another definition, perhaps a bit simpler: The process by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization reach its objectives.

The final step in developing an affirmative action plan is deciding exactly what affirmative action’s to take. The OFCCP suggests the following guidelines:1. Recruiting protected-class member. 2. Redesigning jobs so that the underrepresented workers are more likely to be qualified. 3. Proving specialized training sessions for underprepared applicants.4. Removing any unnecessary barriers to employment. For instance, a company located in an area not served by public transportation might consider providing van service from certain areas so that potential applicants who do not have reliable transportation can become employees say by David B.Balkin.(1998).

As the organization grows, it may add more HR professionals, often including an employment or benefits specialist. With further growth, other specialists, such as trainers, may be needed. From this point, additional clerical and specialist employees can be added, and separate functional departments say by John H. Jackson.(1997).

Forecasting Demand for Employees

A key component of HRP is forecasting the number and type of people needed to meet organizational objectives, a variety of organizational factors, including competitive strategy, technology, structure and productivity, can influence the demand for labor. For example, as noted in Chapter 1, utilization of advanced technology is generally accompanied by less demand for low skilled workers and more demand for knowledge works; External factors such as business cycles-economic and seasonal trend-can also play a role. The Internal Revenue Serves, for example, relies heavily on temporary employees between January and April when tax returns are received for processing, say by Snell (1998).

In the past, many firms avoided human resource planning, simply because their staffs were too swamped with everyday paperwork to manage the planning process effectively. For example, the personnel department in Wake County, North Carolina could barely keep up with the paperwork tracking who had been interviewed, what their qualification were, and who had been offered a job. Say by Leslie W.Rue(1995). All of this changed when the county put a computerized human resources information system in place. The HRIS tracks all applicants and generates paperwork automatically, so that HR staff members can now focus more on planning for the county’s future HR needs. In fact, many software companies now offer sophisticated and powerful computer based HRP programs say by LUIS R.GOMEZ-MEJIA (1998).

Summary of Literature Review

All of question described the element of the succession of HR planning in the organization. Its use the different opinion supports those elements about key point. It’s not only to explain the question of research but also analysis the how to intermit in the organization.

ANALYSIS

Analysis of Key Point 1: Manpower planning

There are many ways to define HR planning, or explain what it is, but the following definitions, is a good, useful working definition: Rigorous HR planning links people management to the organization’s mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost. Note the emphasis on linkage to strategic planning and business planning in the first sentence, and the emphasis on the arrangement and alignment of staff and employees in the last sentence. Here’s another definition, perhaps a bit simpler: The process by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization reach its objectives.

What should emerge from this ‘blue sky gazing’ is a ‘thought out’ and logical staffing demand schedule for varying dates in the future which can then be compared with the crude supply schedules. That, in turn, will involve the further planning of such recruitment, training, retraining, labor reductions (early retirement/redundancy) or changes in workforce utilization as will bring supply and demand into equilibrium, not just as a one–off but as a continuing workforce planning exercise the inputs to which will need constant varying to reflect ‘actual’ as against predicted experience on the supply side and changes in production actually achieved as against forecast on the demand side.

Organizations are demanding more and more of HR departments –what’s needed is a department that fully contributes to and can predict trends and plan accordingly. A company’s human capital is so expensive, the new role emerging for HR personnel is Manpower planning (including succession planning) the new HRP is different, it is focused on the future providing the business with predictive information and specialising on trend analysis. This new focus is reflected in this one week workshop –completely results orientated.

Analysis of Key Point 2 Action Plan

In providing explanations about the concept of human resources strategic planning, we will also put emphasis on the importance of human resources management in project planning. Many employees who became victims of downsizing in the recent past regard the HR department as useless and merely put in place to move the employees around like pawns on a chessboard. If the main strategist makes a wrong move, then they are taken-off the board as like a dispensable object.

This, in a way, is true because downsizing is a result of business strategies that failed, and layoffs have been regarded by employees as part of those failed strategies. However, that was a dark era in the past and lessons have been learned. Human resources managers are now tasked to prepare HR action plans to support the company’s business strategy.

In order to do this, HR management should also perform its own human resources strategic planning by way of pencil-pushing and brainstorming. That way, employees as human resources have a clear idea about the goals they are expected to achieve. They will have clarity of perception about their roles in attaining a common goal for the entire organization.

The Recruitment Strategies have many samples in the HR Action Plan:

1. To write a comprehensive job description for each of the staff categories described in the Human Resource Strategic Plan.

2. To research the best qualifications for each job type, based on the demand of their job functions. However, the core value and the core purpose of the company as well as the store’s mission can be best fulfilled by qualifying only those who demonstrate a great love for children in all job categories. This can be manifested by way of recommendations, family background, past experiences and actual demonstrations.

3. To recruit our applicants from those recommended by our network of associates and business contacts as the best source of suitable applicants who will be chosen to fill-in the professional positions; namely: Store Manager, CMO, Store Merchandiser, Accounting Technician, Credit and Collection Officer, as well as Payroll Master.

4. To recruit college undergraduates seeking for internships as K12 teachers, teacher’s aides, or teacher’s assistants to fill-in the CSR-DP, CSR or Cashier positions.

5. To recruit high school graduates with satisfactory academic performance records and backgrounds plus commendable work references as babysitters or caregivers from ages 16 to 21 years old to fill in the CSR-DP or CSR positions.

6. To recruit high school graduates, from ages 16 and above, with satisfactory performance records and commendations from referrals, to fill-in the positions of stockroom personnel and cleaning crew.

7. To research and formulate interview questions that will elicit answers to show consistency of information about the applicant’s background, work experience, recommendations, know-how and genuine understanding of the company’s core values and purposes.

8. To match their test scores with the industry metrics for the relevant job position.

9. Find out from those who were extended with job offers, the reasons why they deemed it best not to accept the company’s employment offer.

10. Ensure there is diversity in the CSR-DP and CSR staff recruited. (brighthub.com.2011)

Analysis of Key Point 3 Forecasting Demand for Employees

Forecasting is frequently more an art than a science, providing inexact approximations rather than absolute results. The ever-changing environment in which an organization operates contributes to this problem. For example, estimating changes in product or service demand is basic forecasting concern, as is anticipating changes in national or regional economic, A community hospital anticipating internal changes in technology, organization, or administration must consider these environmental factors in its forecasts of staffing needs. Also, the forecasted staffing needs must be in line with the organization’s financial resources.

Summary of Analysis

We through the analysis the research question and use the example make the succession HR planning have very important in the Human Resource Management.

CONCLUSION AND RECOMMENDATION

6.1 Conclusion

Accoding to the main question to understand purposed the succession HR planning is very important. The succession HR planning have many intermit information in the organization. As organization plan for their future, HR managers must be concerned with meshing HRP with strategic business planning.

6.2 Recommendation

The Top of management want to understanding and know how to make the Planning in the business of the Huamn reasouse. The management both know the chart in the organization,

BIBLIOGRAPHY

Accel-team.com.2011.The Selection and Recruitment Employee Available:

Brightthub.com.2011. the HR Action on Simple. Available: http://www.brighthub.com/office/project-management/articles/26611.aspx?p=3 Accessed on 31 March.2011

Ezinearticles.com.2011 The effective in the Action in the HR. Available: http://ezinearticles.com/?Tips-for-an-Effective-Human-Resource-Management-Action-PlanHYPERLINK “http://ezinearticles.com/?Tips-for-an-Effective-Human-Resource-Management-Action-Plan&id=509343″&HYPERLINK “http://ezinearticles.com/?Tips-for-an-Effective-Human-Resource-Management-Action-Plan&id=509343″id=509343 Accessed on 31 March.2011

Allexperts.com. 2011. What is the manpower planning. Available :http://en.allexperts.com/q/Human-Resources-2866/2008/3/manpower-planning.htm Accessed on 31 March 2011.

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