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Human Resource Planning is the process by which an organization ensures that it has efficient people within the company's reach to handle a given situation within the deadlines who can effectively and efficiently complete those tasks that will help the organization achieve its overall objectives (Decenzo and Robbins 2000). The realization of organizations goals with the use of present manpower position by the management is known as human resource planning according to Vetter (1967). Management has aims to realize the company's long term goals and give maximum profits to its employees through planning.
Human resources planning should be a key component of nearly everyÂ corporation's strategic business planning. To ensure theirÂ competitive advantageÂ in the marketplace, organizations must implement innovative strategies that are designed to enhance their employee retention rate and recruit fresh talent into their companies. In today's corporate environment, it is viewed as a valuable component for adding value to an organization. Both employees and the company will often realize many benefits of planning over the long-run.
Strategic collaboration between small and medium sized enterprises (SMEs) and the large businesses they partner can take many forms, such as locating a SMEs facility in close proximity to a buyer's facility to enable just-in-time delivery of raw material, inputs and components; collaborating on research and development and product design to build organizational competencies and capabilities; collaborating on supply chain activities to manage costs and promote operational efficiency; or delivering outsourced human resource management activities (Doz and Hamel 1998). For large businesses, forming strategic alliances and collaborative partnerships can be critical to their ability to seize technological opportunities, to build critical resource strengths and competitive capabilities, to improve supply chain efficiencies and deliver value to their customers (Kaplan and Hurd 2002). Often these partners are small and medium sized enterprises, that are expected to perform as full partners (Ijose, Olumide).
However, there has been little to no attention paid to the role the strategic human resource management (SHRM) practices of SMEs play in their ability to be valued and trusted strategic partners in the value chain of big businesses. Like any other organization, the sophistication of their human resource management practices can lead to operational inefficiencies that can affect their ability to meet their obligations to corporate buyers (reference and relate sentence to big businesses where this has been proven). Factors that enable operating excellence include having a strong management team, recruiting and retaining talented employees, viewing training as a strategic activity, structuring the work effort in ways that promotes successful strategy execution, deploying an organizational structure that facilitates the proficient performance of strategy critical activities, instituting policies and procedures that facilitate good strategy execution, instilling a strategy supportive culture and tying rewards and incentives to individual and team performance outcomes that are strategically relevant (Higgins 2005).
Plans for future needs of personnel, recruitment of employees, their required skills, future need of employees and development of personnel are main aims of human resource planning. (Miller, Burack & Albrecht 1980).Â Two most important components of planning are human resource auditing and human resource forecasting. Organization's future demand for type, number and quality of various categories of employees is predicted in forecasting of human resources. Future and present policies and growth trends are analyzed to determine the future needs of an organization. Budget, Delphi technique, computer models, expert survey, planning analysis and statistical analysis are some factors included in forecasting technique. Skills, abilities, and performance accounts of all the employees of an organization are provided by human resource audit. (Werther & Davis, 1982).
RecruitmentÂ refers to the process of attracting, screening, and selecting qualified people for aÂ jobÂ at anÂ orHYPERLINK "http://en.wikipedia.org/wiki/Organization"ganizationÂ or firm. For some components of the recruitment process, mid- and large-size organizations often retainÂ professional recruitersÂ or outsource some of the process to recruitment agencies. Types of recruitment are:
1. External Recruitment Methods
Joint ventures should be developed with Training and Placement authorities at Universities and colleges. Professional organizations should be asked to use their newsletters and emails to fill the open positions. In case of filling a higher position at an organization, it should hire some recruitment firms to get the best skilled persons employed in the organization. The company shouldn't hesitate if they have to spend some money to recruit the perfect person for their vacancies.
2. Internal Recruitment Methods
The company must first be clear about the skills and experience they are searching in a person to be recruited. It may be possible in some cases that an organization may find a required skilled person within. It may be some volunteer or a temporary worker already performing some task as required which will be more helpful for the company to achieve its goals. (managementstudyguideÂ [online]).
Completed CV, initial screening, testing, in-depth selection interview, physical examination, and job offer are the main steps followed involved in a recruitment process. (French 1982) A simple interview and a brief knowledge test are the basis of recruitment process in some ex tension organizations.
A face to face interview is the most suitable and cheap method to know the employee and to confirm if he is really suitable for the job and what are the expectations of the applicant from the new job. Some of the attributes of a person that can only be judged by meeting in person and not on CV are illustrated below:
Soft skills or the capability of a person to have a good conversation with co-workers.
Etiquettes and confidence of the applicant.
Reaction of the applicant in different situations and pressure handling.
Any other information about the applicant another than CV.
Best applicants can be selected in various ways another than interview. An applicant must have skills to perform his job in the better way, as performing well in interview only is not good enough. Better ways to recruit best employees are present which are cost efficient too and with a assurance that only capable persons are being chosen. Psychometric tests, aptitude tests and other ways to check intelligence are present to recruit people. The job contracts are needed to be made as soon as a new employee is hired and took up his required job.
In an organization personnel training plays a major role in human resource development. There are two types of programs of development programs for employees in different organizations. First is named development programs which help employees develop future job skills. Second is a Training program which helps employees in improving and maintaining current job performance. (Stoner & Freeman, 1992) Practical field experience training should be given huge attention. Managers should be trained through other ways such as classroom instructions, job rotation, training sessions, educational institute-sponsored development programs and coaching.
A reward system should be included that will retain, motivate and attract extension personnel to perform better which can become a vital area of human resource management. An exclusive training session should also be arranged for providing promotional opportunities and training to the extension employees that can play a vital role in human resource management..
Theories created by some researcher's named Skinner, Vroom, Maslow, Adam and Herzberg are the five main approaches that have created the understanding of motivation.
In 1943, Maslow gave a list of five types of needs of employees i.e.: health insurance, safe future, training to new learn new skills, family insurance, promotions and social. Maslow said that all type of needs of employees should be fulfilled in some priority levels, as the fulfillment of their needs would bring a great deal of motivation in the employees. Motivators and hygiene were the two categories in which Herzberg divided motivation in 1959. Job satisfaction is provided by recognition and achievements of employees which contribute to intrinsic factors and motivation. Job dissatisfaction is developed as a result of low pays and insecurity of jobs that contribute towards extrinsic factors or hygiene.
Performance was the major area of relevance which contributes towards rewards and further increased performance according to Vroom in 1964. There may be positive or negative categories of rewards. The motivation of an employee depends upon the rewards as positive rewards motivate the employees and negative rewards demotivate them.
According to Adams equity among workers plays a major role in motivating employees. Ratio of one employee's outcomes over inputs is compared to other employee outcomes over inputs and equality is checked to calculate equity. (Adams 1965)
In 1953, Skinner mentioned that the positive behavior of the employees should be motivated to be repeated and negative behavior should be strictly dealt so that it shouldn't be repeated. Behavior of employees should be observed strictly by managers. Managers should be made liable to enforce the positive behavior of employees that lead to positive results and demotivate the negative behavior of employees that leads to negative outcomes.
Employees are motivated by various factors which were studied by James R. Lindner in 1998, who was Research Associate at Ohio State University. Some motivating factors were revealed by the study as following:
feeling of being in on things and
Sympathetic help with personal problems.
Some interesting factors into employee motivation were revealed by comparison of above results to Maslow's need-hierarchy theory. Interesting work is a self-motivating factor which is considered rank one motivation factor. Good wages is a physiological motivation factor which is ranked two. High appreciation of work done is another major esteem factor which is ranked at number three. Job security known as the safety factor is another major motivation facto ranked at number four. In 1943, Maslow declared that promotions, rewards, safety, insurance, promotions and social factors are the most important motivation factors that must be satisfied first. Good pay and increase in pays will be second most important factors that should be addressed by managers. Range of motivational factors suggested by Maslow's study is challenged by the following study. This study doesn't confirm that Maslow's conclusion of ascending order of motivational factors to be satisfied. Ken Shah and Prof. Param J. Shah revealed the properties that a manager should have as following:
Evaluate yourself The behavior of managers and other senior personnel in the organization should be controlled which is very important if you want to encourage and motivate your staff to behave in a controlled manner.
Be familiar with your staff-Â As a manager, it is duty of senior person to make the staff involved in team goals in a very familiar way to achieve the organizational goals. For achieving this purpose the manager has to know his staff properly and should be capable to make them work.Â
Benefits to Employees: It is very important for an organization to make the working conditions relaxed and if any employee is working overtime he must be paid for his services and timely bonuses must be distributed in the organization. Family insurance and health of employees also should be taken care of.Â
Induction of new Employees: Recruitment is followed by induction to employees. Desires about the job and the employer organization are generally created by the newly recruited employees at the time of induction. The impression of the job and organization can be damaged or built by the method of recruitment process.
Staff feedback must be provided timely: constantly
Achievements of employees should be acknowledged respectfully.
Management of time should be taken seriously in the organization.
Stress management techniques should be introduced in your organization.
Learning techniques and training opportunities should be provided to the employees in the organizations.
Effective listening should be done.
Creativity should be motivated and encouraged.
Job enrichment techniques should be adopted:Â Job enrichment implies giving room for a better quality of working life. It means facilitating people to achieve self-development, fame and success through a more challenging and interesting job which provides more promotional and advancement opportunities.
Team members should be respected.
Timely goals and aims should be set that are achievable: Set moderate goals. Setting too high a task creates a feeling of non-achievement, right from the beginning itself.Â
Positive thinking should be introduced: A manager has to handle two situations, "The Winning" and "The loosing". The crux is to think like a winner even when all the odds seem against you. It is necessary to equip yourself with all the tools of a winner.
An executive must have the right leadership traits to influence motivation. Both an employee as well as manager must possess leadership and motivational traits. An effective leader must have a thorough knowledge of motivational factors for others. He must understand the basic needs of employees, peers and his superiors. Leadership is used as a means of motivating others.
Keith Davis said that achievement of the long term goals of an organization by leading other people is the main characteristic of leadership. ( managementstudyguideÂ [online])
What is Leadership?
Achievement of long term goals of an organization is the main attribute of leadership.
Right attitude, intelligence and right skills should be present in a person.
Many people are involved in this process that makes it a team work.
Organizational goals are achieved by management the behavior of a group by a leader.
Leadership has no fixed methods, it depends upon the situation and the way of solving different problems that are faced in the way of achieving an organizational goal.
The terms Leadership and management are always seen as pointing towards same process. Effective management depends a lot over good leadership qualities in any organization. So, good leadership plays a vital role in better management. An environment is needed to be provided to every employee to develop and excel in his qualities and better performance through leadership, that serves a great deal to effective management. Leadership qualities must be built in every manager i.e. very important for the survival of an organization. Competitive advantage is built and sustained through strategies built and applied by leaders. Organizations require robust leadership and management are required to be present in an organization for remarkable efficiency.
Management vs. Leadership:
Management and Leadership differ in following various ways:
Leaders give direction by developing the organizational vision and communicating and inspiring employees to achieve it, whereas managers provide the structure and delegates authority and responsibility
Planning, organizing, staffing, directing and controlling are the tasks included in management. Directing function of management is the main task of Leadership. Persuading the followers, building relationships, listening, team work, motivating and inspiring are the main aims of leaders. Position in the organization provides authority to a manager whereas followers provide authority to a leader.
Their own instinct guides the leaders, whereas company's policies and procedures guide the managers.
It is an art to be a leader. Whereas exactness, planning, standardization and logical mindset defines a role of a manager. Managers are the key of an organization and leaders are a must.
Technical dimension in an organization is handled by Management whereas people aspect is dealt by the leadership..
Potential for things that can't be measured such as future and the performance of people if their potential is fully extracted are looked by leadership whereas management checks past records, names and present performance for evaluation of employees
Verbal communication is the guideline for leadership while written communication is the guideline for management.
Leadership is proactive while management is reactive
The leadership style varies with the kind of people the leader interacts and deals with. A perfect/standard leadership style is one which assists a leader in getting the best out of the people who follow him. Autocratic, Paternalistic and Democratic are the three primary kinds of leadership methods (tutor2u[online])
Autocratic: Workers are closely controlled and supervised by managers and all the major decision making powers lies with the higher authorities only. There is only one way communication i.e. only managers to workers. Workers have to follow the orders from managers blindly. Situations that bear such type of authoritative conditions are very limited. This approach can be useful only in some cases..
Paternalistic: Social needs and beliefs of employees' are always considered by managers while taking major decisions. Â managers give more attention to the social needs and views of their workers. Happiness of employees are of major concern to the managers and they take good care of the needs of employees. Views and feedback on important are invited from the employees at regular intervals of time however the final decisions are taken only by managers taking into consideration the interests and betterment of employees.
Democratic: The workers are motivated and encouraged to take major decisions. Power is provided to the employees to take the decisions and the managers always seek the important advice from the workers which is further used to take decisions in favor of both the company and the employees. Open discussion groups are held to listen to the views and suggestion of employees' where a two way communication among the workers and managers take place to take the important decisions. Human resource planning mainly focus upon right people at right place and at right time, which guides managers to enhance managing skills in the employees. Business planning and human resource planning were linked very weekly in traditional organization in the past times. Human resource planning is made a reactive exercise by human resource needs as defined by business plans. Balancing current needs-of organizations and their employees-with those of the future is a huge challenge in human resource planning. The current place of employees and the tasks they are performing with adaptability to adapt to various activities is the main criterion by which the balancing act is measured. The relationship between employer and employee must be harmonious and its essential to have an effective leadership style.