Overview Of Human Resource Management Business Essay


For a developing economy like India technical manpower is as essential as capital. Among the three major resources- men, material and money it is the men which determines the quality and quantity of output and performance. Skilled employees add value to the organisation and in fact are an asset to the country itself. As the work force gets younger there has been a change in the scenario of work force worldwide. It poses newer challenges in bridging the gap of demand and supply. Most of the organisations agree that their single major cost is in terms of managing their work force. Lot of efforts have been put in managing this major asset and also in controlling the costs effectively. Human resource drives the organisational performance. And therefore it is very essential for the organisation to ensure right kind of people for the right job at right time. This will ultimately increase the productivity of the organisation. From the traditional human resource management principles organisations have moved to strategic principles by linking human resource to the strategic goals of the organisation. This calls for strong linking of the HR personnel with the organisational line managers. Thus strategic human resource has become essential for the competitive advantage and competitive viability of the organisation. The strategy undertaken by the human resource personnel should be compatible with those of other department in the organisation. In fact very little research has been done in determining how this is done in an organisation. So as to achieve the desired objective of an organisation it is very important to plan the human resources both in terms of qualitative and quantitative manner. In large organisations human resource contributes to the major chunk of operational cost. Hospitals are no different from this. Hospitals are labour intensive in nature. It is often finding it difficult to get the right person for the right job at right time in hospital services. Basically hospitals are not having appropriate plans in terms of understanding the human resource requirements. In fact there has been no effort or less effort put in identifying the right sources of information with regard to demand and supply of human resources. This shows the failure of having human resource information system. There is no way for the hospitals to look at the strategic view of indenting appropriate staffing or key positions requirement.

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Strategic planning of human resources involves clear understanding with regard to need, supply, forecasting of human resources, and ensuring achievement of such resources at the right time, right place, and right sources. It is to be noted that the human resources have a major role play towards achieving the corporate strategic goals of a hospital. There has been a shift from the traditional human resource management towards strategic human resource management. Pressure from escalating costs, difficulties in gaining competitive advantage in the increasing competitive world, impact of globalisation etc all explains to this reason. The strategic human resource management links those issues pertaining to the human resources to the overall strategy of the hospital. As they provide the "Corporate Intelligence" the personnel in the hospital can shape or mould the hospital. When it comes to allocation of the human resources various factors like the specialty- whether single or multi specialty, setup- deluxe rooms or general wards, structure etc all counts. In fact all the future challenges of organization whether technological, economical or political can be met only with proper planning of future requirements of personnel. In addition, to avoid high employee turnover and potential loss to the organization planning has become crucial for the hospitals at all times. Though Mintzberg (1994) has said that 'the most successful strategies are visions, not plans', planning is still important. In a way it has become very challenging now.

Overview of human resource management:

Development of any organisation is not a mechanical process. Instead it will depend ultimately on the skill, quality and motivation of the people associated with it. According to Professor Lewis "growth is the result of human efforts". The process of evolution of human resource can be traced as personnel management to the human resource management and to the strategic human resource management. Since the organisations have moved from simple to complex in nature requiring special skills and maximum output, personnel management also have shifted from the simple -"carrot or stick" approach to "man power planning". In simple terms man power planning is a technique of correcting the imbalances between the man power demand and the man power supply in the organisation. An imbalance in supply and demand can create surplus or shortage of personnel. Thus it is essential to plan the human resources on a long term basis. Efficient managers are those who can for see the likely problems and unsuccessful managers are those who struggle with the unforeseen problems. What makes a difference here is planning.

Dimensions of human resource management

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Human resource management is that important aspect of the organisation that deals with the "people" attribute. HRM can be considered in two ways- first is the support function within the organisation related to its employees. It is involved in supporting the employees of the organisation who is rendering service directly or indirectly. Secondly HRM is a job or responsibility of everyone. All the line, top managers are involved in the HRM, whether they work exclusively in the HR department or not. HRM basically consists of four functions like staffing, training and development, motivation and maintenance. We can put many activities in human resource management under these four headings.

The strategic view of human resource management:

Organizations today recognise the role of people in meeting the objectives of the firm. This realisation has moved them to be very cautious in personnel related matters. Human resource management considers their prime responsibilities as assisting the organisation in achieving the strategic goals and also in urging their employees in attaining goals. These have to be carried out simultaneously. The role of human resource management is proactive, which means that it doesn't respond to the organization when needed but supports the organisation in its personnel part with a strategic view. More over the organisation has also realised that its employees are its asset and it is the employees who bring competitive advantage to the organisation. Human resource management has to device policies and procedures and adequate planning in order to achieve this and maintain in future. Being an active partner in strategic process of the organisation the human resource management affirms the overall strategy of the organisation. For achieving this they work in coordination with the line managers and help the organisation in devising their culture, improving the performance and implementing changes wherever necessary.

Human resource management also help the organisation in identifying and implementing the lowest cost of human resource in view of the strategy of the organisation. This is very critical as it has been realised that depending on the specialty and type of hospital the human resource cost accounts to not less than 40- 50% of the total organisation costs. Therefore the strategic planners must also consider the cost factor while planning the human resource. They need to ensure the return over investment in the human resource part.

Organizational strategy and human resource:

The growth of particular business strategies must be established on the fields of

intensity that an organization has. Those HR managers must be able to anticipate what capacities employees will have to enforce the business strategy. Manpower practices and conditions, social values and modus vivendi, and technological growths are some extraneous factors to consider.

"A human resource strategy is a vital constituent of the firm's collective and business strategies, containing a set of well-coordinated objectives and activity programs directed at ensuring a long-term, sustainable advantage over the organizations competitors. A human resource strategy should be consistent with the organizations corporate and business strategies, along with the other managerial operational strategies.

The changing health care organisation:

Today the world of health care is rapidly changing as the demography; disease patterns are changing which in turn calls for advent of newer technologies and skills. Even as recent as a decade ago the scenario was different. That does not mean that changes were not happening those days. But now the changes are more challenging and very rapid also. Certainly the hospitals are dynamic in nature. To be viable in such a dynamic situation organizations have to deal with all the complex challenges. As change is unavoidable the life of the organisation depends on the leadership quality it possesses. Good leadership is making the impossibilities possible. It involves understanding the change, framing strategies that account for change and developing the will and ability for leading the change. Hospital faces a lot of changes in the field of care rendered to the patient in terms of complex technology involved, disease patterns, greater awareness and demand for quality care etc. Often these challenges are complimented with asymmetry of information in a much uncertain situation. These collective challenges point towards the need for 'strategic management'. As part of an organization the human resource management must also be prepared to face these challenges. This means understanding and reacting to the needs of globalization, changing scenario in work culture, technological changes, skill mix, the contingent work force, changing employee preferences etc.

Meaning and concepts of strategic planning:

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Strategic management is the basics for change, and that adds to the momentum of change in an organisation. It builds the gap between change and survival of an organisation. The word strategy has its origin in 19th century from the French word 'strategie'and Greek word 'Strategos' which means 'general'. The Oxford dictionary defines strategy as 'the plan of action designed to achieve an overall or long- term aim'. According to Tanuja Agarwal, Strategy is "the determination of the long term goals and objectives of an organisation and the allocation of resources necessary for carrying out these goals". This involves analysis of different domains like finance, marketing and human resources. As quoted earlier, organisations achieve their goals and objectives through the core competence of human resources.


Strategic planning is defined as the process of describing organizational aims and the activities needed to accomplish those aims. It calls for examining areas like finance, marketing, and human resources to find out the capabilities of the organization to encounter its objectives.

Basics of strategic planning:

Strategic planning is an organizational direction activity which is used to fix precedence, sharpen energy and resources, fortify operations, assure that employees and other stakeholders are functioning toward common goals, lay down agreement around proposed outcomes/results, and measure and align the organization's direction in reaction to a changing environment. It is a conditioned effort that produces key decisions and actions that figure and lead what an organization is, who it serves, what it does, and why it does it, with a focus on the future. Good strategic planning formulates not only where an organization is departing and the actions required to make progress, but also how it will know if it is fruitful. The presumption implicit in strategic planning is that there is economic, social, political, technological, and militant change taking place that the leadership of the firm must sporadically evaluate whether it should offer its current products and services, whether it should start offering different products and services, or whether it should be operating and marketing in a fundamentally different way. Though strategies generally take considerable time to enforce, and thus is mostly long range in nature, the time span is not the primary focus of strategic planning. As a matter of fact, strategic planning, backed by the management of the strategy, constricts time. Competitive changes which usually take generations to develop instead occur in a few short years. Therefore, it is better to use "long range" and "short range" to depict the time it will take to attain a strategy instead to convey a type of planning.

The process of strategic planning

Organisational objectives and strategies

Analyze internal environment

Survey of people available

Organisational need for people


HR strategies and plans

The process of strategic planning starts with identification of the organisational objectives and goals. In accordance with the strategic goals of the organisation, human resource requirements are derived and put forwarded in terms of quantity and quality of the personnel required so as to accomplish the goals and objective. This is done by assessing the internal strength of human resource in the organisation. The needed data will be available in the Human Resource Information System(HRIS).A qualitative and quantitative assessment for the skill and number of existing staffs will be done by this assessment. The human resource personnel sub serves the top management in realising this.

Strategic planning to strategic management:

In the 1980's the construct of strategic planning was extended to strategic management. This development admitted not only the grandness of the dynamics of the environment and that organization may have to completely recreate them but also that ceaselessly managing and measuring the strategy are milestones to success. Thus, strategic management was demonstrated as an advance or doctrine for managing complex initiatives.

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Human resource planning (HRP):

An overview:

From functional view human resources planning is the assessment of personnel requirements of organizations and the associated demands for management policies, programs and resources to gratify these requisites. It is the process of analysing and identifying the demand and availability of personnel so that the firm can meet its goals.

According to Walker (1980) HRP is "a management process of analysing an organisation's human resource needs under changing conditions and developing the activities necessary to satisfy these needs".

HRP tries to answer the following questions:

What is the significance of present or proposed strategic plan with human resources?

What are the significances of proposed or present strategic plans for staffing?

The main objective of people creditworthy for doing human resources planning is to gain, grow and enforce the technology, tools, expertise and resources requisite to effectively do Human Resource Planning as an inherent part of the business planning processes. It should not be exercised in a vacuum. Therefore "Human resource strategies must be formulated within a company's strategic business planning process." Human resource planning is a proactive process- as it will look upon the number and the type of people required and whether the firm will require additional employees. Being proactive it will anticipate any changes in industry, market, economy, society and technology. Previously strategic decisions were take in isolation without inclusion of decisions pertaining to HR. But today internal and external changes in an organisation has led to articulation of business planning with Human resource planning on a long term proactive perspective.

HR planning has been described as a crucial way to develop a clean-cut focal point of the purpose on the organisation's business and it is a vital aid in describing the areas in which it must stand out in order to be productive.

Alike many organisational exercises, the potency of human resource planning bets on the circumstance within which it is applied. Several methods of conventional human resource planning are set aside only in the place of the certain particular objectives in mind (Walker, 1990). There are three basically different forms of HR planning aims. Functional objectives attempt to find present capacities and generalize current trends, with particular stress on nearly work requisites. These objectives underline the establishment's ability to check performance, using past and present HR costs that add to budgets and other check mechanisms. Next class of objective comes down within the title of what texts generally pertain to as HR planning. The main objective of conventional HR planning is to integrate estimates about the types and numbers of workers who will be required to fit strategic demands, taking into account different programmes such as career development, executive training, external recruiting, succession planning, employee appraisal and retirement programmes. Operating data helps HR planners to precisely anticipate the costs and feasibleness of HR initiatives based on known qualities. These data can also be put among HR planning to base forecasts related to demand and supply. Adding to that, HR planners need precise operational knowledge about the personnel so as to understand the future of particular forecasts. For example, a decrease or a surplus of certain kind of skills means the extent of that particular skill contributes and whether that skill can be replaced by some other skills.

Contemporary HRP: Proactive

Traditional HRP: Reactive

Changes in business, economic, social, legal and technological environments

Meaning and definition of Human resource planning:

Human resource planning is the projection of the number of people required and the type of people in terms of skill mix required for the organisation so as to achieve the desired goals and objectives of the organisation. It might be expansion of the services in a hospital or addition of few radiology services or laboratory services to the existing system. Any expansion or modifications done structurally or functionally will require additional manpower to the hospital. As these are strategic plans of the organisation along with other objectives the objectives concerning the human resource should be aligned. For this the human resource department will work along with the line managers and heads of various departments as they can add more inputs to the planning process. They will be the ones who will be able to say about the technical skills expected from the personnel. Thus the objective is to find out the right candidate for the right post at right time. The primary role of people involved in human resource planning is to gain, develop and execute the tools, technology and skills and expertise required for the organisation. It should be focussed upon doing the human resource planning and development effectively and efficiently for the organisation. They should realise human resource planning as an integral part of business planning process. Therefore it is not done in isolation. It has to be articulated with the company's business strategic planning process. Without a clear picture on planning whatever done will end up as mere guess work.

Objective of doing Human resource planning:

Available literatures on human resource has brought out that Human resource management plays an important role in gaining competitive advantage within an organisation. Therefore the chances of getting the strategic implementations successful will be negligible if it is not aligned with the strategies on human resource. Planning is vital to strategy since it distinguishes gaps in capacities which would forbid successful execution; surpluses in potentialities that suggest chances for increasing efficiencies and reactivity; and poor usage of extremely valued organisational

resources because of incompatible HR practices. Hence it is not storming that connecting HR

planning to strategy has turned to a famous topic among fellow members of the HR profession,

who have attempted alternate ways to adjust objectives and usages with the pattern, growth

and execution of organisational strategic targets and enterprises.

Why is human resource planning important?

Human resource planning is really important that without this all planning will finally end up as a mere guess work. Even if the predictions or forecast is not always successful, it is still needed because the forecasts can be quite useful which will give a basis. Upon this basis it is able to avoid ad hoc problems to an extent. Therefore human resource planning should be articulated along with the organisational planning.

A dearth of particular category of employee or particular kind skills will affect the organisation in achieving its goals.

Rapid changes in technology, marketing, management etc., will result in need of particular category an skilled persons.

Changes within an organization in its design and structure will affect manpower demand.

Demographic changes like the altering profile of the manpower in terms of age, sex, education etc.

The Government policies in regard to reservation, child labour, working conditions etc.

Different labour laws affecting the demand and supply of labour.

Pressure from trade unions, politicians etc.

Advantages of Human Resource Planning:

Human Resources Planning (HRP) expects not just the needed quality and quantity of employees instead decide the accomplish plan for all the occasions of human resource management .The major advantages of Human resource planning are:

It assures the corporate plan of the firm.

The HRP elucidates doubts and alters to the upper limit potential and enables the organization to have right kind of people at right time in right place.

It allows background for progress and growth of employees through training, development etc.

It aids in anticipating the cost of salary increasing, improved benefits etc.

It also helps to predict the cost of pay offs, incentives and all other cost of human resources which facilitates the formulation of budgets in an organization.

To forecast the changes in abilities, aptitude and attitude of personnel.

It results in the advancement of different origins of human resources to encounter the organizational goals and objectives.

It also aids in taking measures to amend human resource shares in the form of enhanced output ,business turnover etc

It facilities the control of all the functions, operations, contribution and cost of human resources

Planning as an organisational business strategy:

Planning process in a strategic way is often accomplished by networking with in and outside the organisation. The focus is therefore on strengthening the networking with the internal human resource professionals and external human resource persons which will be rooted in sharing information, technology, tools necessary for planning and development of personnel. The outcome depends on effective implementation of the developed tools and resources needed. Out of these a sustainable and feasible strategy has to be formulated. The most important thing to be noted here is that the strategy formulated should be articulated with the overall business strategy of the organisation. For this they will consult different human resource managers and all the line managers in the organisation. In order to ensure highest possible utilization of the tools they will work in close conjunction with the managers. This will aimed in creating a sound personnel data base and