The Importance Of Human Resource Planning
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The object of this assignment about the significance of Human Resource planning in an organisation, which plays a vital role for decision making process and also designing of organizational strategic objectives. As an employee of WIPRO I did a research on Human Resource Planning and designed systematic HR plan to robust long term objectives. Organisation competitive advantage primarily depends up on their work force and it can only be managed by effective Human Resource Planning. HRP delivers a platform for prodigious work system and sets high standards for the global competence. The roots of Human Resource Planning are as important to as it's present day operations, because they explain it's potential and its inherent tensions. Human Resource Planning is a frame work for matching business needs and development strategies
Scope of the study
I have covered the important aspects of Human Resource planning like
To comprehend the systematic Human Resource Plan that effectively supports the strategic implementation of the company.
To meet the ethical standards of the company, need to comply with the legal requirements while preparing HR plan and also explained the procedural way for recruitment.
Discussed about the organisational environment, employee work life balance and grievance procedures
HUMAN RESOURCE PLANNING DEFINITIONS
The success of every organisation rely on prediction of their employment needs and having right people in the organisation
The below are the few definitions:-
Human Resources planning is the process of acquiring and utilizing human resources in the organisation. It ensures that the organization has the right number of employees in the right place at the right time.
(Source: Adhikari, Dev raj, 2001, HRM)
The development of strategies for matching the quantity and quality of the workforce to organizational requirements. Human resource planning facilitates organizations to recruit, retain, and maximise the deployment of the workforce needed to meet business objectives and to respond to changes in the external (Macro) environment. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This may include the development of training and retraining strategies.
The systematic HR plan would look some thing like the following
IMPORTANCE OF HUMAN RESOURCE PLANNING IN AN ORGANIZARTION
Human Resource Planning is an important process which integrates the corporate (or) business strategic polices and it's work force management. HRP is responsive to the business needs of an organisation, improving capability to achieve business goals.HRP arises from powerful vision about people's abilities and potential and operates within the overall strategic framework of the business.HRP has several factors that will significantly determines that how it will become strategic value to an organisation
HRP always ensure that effective utilisation of existing employees and also monitors the key areas of existing hierarchy.
To predict business requirements for Human resource, this will provide structural view of the future organizational strategic implementation.
HRP provides a best control over key areas to ensure that number of people available as and when business required and also downsizes excess and deficit of staff.
To forecast the affect of technological advancement on featured jobs and estimates the amount of capital required for business needs (Recruitment and training costs).
HRP involves all core parts organizational needs like... creating healthy business environment, improve corporate culture, motivational force to enhance individual capabilities and helps for organisation change.
HRP derives that Human is capital for the organisation so, HRP also effectively focusing on employee retention as well by providing work life balance.
HOW THE HR PLANS SUPPORTS THE STRATEGIC OBJECTIVES
1.1Assessing the strategic importance of current,future and anticipated HR requirements
Human Resource plan has to based on strategic objectives, The first step in the HRP is to assess the current HR requirements of the organisation. HRP need to identify the capabilities, Knowledge levels and skills of the current employees. These things can only be identified by conducting development programmes for every existing employee. The training and development programmes will enhance the skill set of the every employee and in turn will help full to increase the production capacity of the organisation as well. Any employee performance can be measures on willingness to accept new things and good enough to handle more responsibilities.
The next important aspect is to forecast HR requirement or needs depends up on the strategic objectives of the organisation. The specifications in terms of projected number of employees and job characteristics should be defined from organisational goals. Precisely forecasting of HR requires both demand and supply . It consists
The size of the future project and the number of employees required to attaining the organisation goals.
The criteria to full fill the job positions
Skill set required to match the job specifications
Future is unpredictable-while forecasting the HR requirements should also notify the barriers and challenges based on the macro environmental factors.
Forecasting should also determine that human resource department will be able to get the required number of employees.
The next step is to anticipate HR requirements which means bridge
the gap between current and future position of the organisation, which illustrates the number of staff and the skill set required in the future in comparison to the present situation. Organisation should also have keen observation at the best practises used by the Human resource management. For ex:-What new jobs, new skills, adequate HR practices to meet future needs etc..,
1.2 Analyse how HR planning impacts on the strategic plan
HR planning plays an important role because it provides the ground work to implement the organisation strategic plans. These two sources of planning are interdependent. HRP is a brief document that predicates key presumptions and strategic plans for implementation. HRP dealt with several factors which will have effect on strategic plans.
Anticipating the work force requirements, where we need to use some statistical projections to draw trends in the economic circumstances and development of the organisation.
Collecting a depository of current manpower skills and estimate the possible extent these skills inventory are used effectively.
Forecasting employee problems by evaluating the key performance indicators and also create an opportunity to resolve the problems.
HRP focuses on all the key areas like recruiting, training, development, optimum utilisation, performance measurement and also make sure that they have enough resources to meet the demand.
HRP is a systematic proposal to have control over the manpower imbalances (excess and shortage) of any section of the organisation
HRP is very similar to Risk Management, It involves practical way of assessing present and future in order to have the right person to the right job at the right time.
HRP facilitates to prepare a working capital (Budget plan) required for each department and will also assist to take control measurements to improve cost effectiveness.
I would like to quote a real life example which happened in my previous organisation WIPRO and explain HR plan impact on strategic plan .It is a premier services firm of India having business across Software Development & Support, Operations Support, and Consultancy & Advisory. With 90,000 employees operating from 35 countries, it's the largest Indian MNC. As a service provider WIPRO got new client and they will have to set up a new business centre. As a part of HR Planning team, we initiated a systematic design which correlates HR and Business strategic plan
We had a significant answer to the above mentioned questions and helped a lot to set up a new business centre. The capability of Human Resource Planning decides the continuity of a business in the long run, various organisational strategic plans require different HR plans.
2. UNDERSTAND THE LEGAL AND ORGANISATIONAL FRAMEWORKS
FOR THE EMPLYMENT OF STAFF
2.1 Evaluate the current legal requirements influencing a HR Plan
The success of any business depends on manpower , getting the best out come from employees and managing them and following the legal requirements. Human resource polices and employment law are the minimum standards of a workplace.
Employment legislation is a broader segment and it covers many factors of employment standards:
Minimum wage and minimum daily pay
Minimum wage is applicable for all employees irrespective of how they are paid and every organisation must follow employment standard act (Designed by Ministry of Labour)
For ex:-The minimum wage should be paid $8 p/h in British Columbia as per the employment standards act.
Pay days and Payrolls book keeping
Age constraints -employment of people under 18 (Child labour is restricted in some countries)
Termination and maternity leaves
Weekly day of rest and deductions
Probation period etc.
Employers should ensure that higher level managers be conscious of their legal requirements and comply with it
Legal requirements have the impact on HR decision and strategic decisions
This legislation safeguards employees from discrimination and also from workplace harassments.
Health and Safety measurements
Industrial labour relationship between trade union and the employer
All these above factors should take into consideration to prepare a effective HR Plan
2.2 Describe the Process of recruitment and selection of new staff (external candidates ) that complies with current legislation and organisation requirements
Recruitment is a process of selecting, identifying and screening qualified people to meet organisation manpower requirements. For any organisation to start up new business (or) for the business expansion they need to recruit new staff and it has become a challenge for them. We have several internal (employee referrals) and external sources (Employment agencies and campus recruitments) in place to attract capable candidates. The global competencies are changing with a light speed and we need highly skilled people to meet the demand and companies should have a good HR plan to establish the people with extra ordinary skills.
Recruitment is a systematic process flow-as mentioned below
While recruiting new staff organisation should adhere to some of the legislations like
Avoid all kinds of discriminations (Colour, Race, Ethnic religion, Nationality ,Sex, Disability etc)
Equal opportunity policy
Employment standard acts should be taken into account and observed carefully in the process of recruitment
It is very important that the select candidates should meet the organisational requirements
3. UNDERSTAND THE EFFECT OF THE ORGANISATIONAL ENVIRONMENT ON STAFF
3.1 Discuss how organisational culture effects recruitment and retention of staff
Organisational culture defines the charisma of the organisation. Organisation culture is an association of sharing best practices, ethical values, norms & procedures, assumptions and organisational behaviour. The concept of organisational culture plays an important role when trying to manage and implement organisational change. The culture of the organisation will decide the company polices and practices cultivated within the company. Organisation culture is a core concept which differentiates from other companies and makes them unique in the market.
For job seekers organisational culture means understanding the kind of work environment that the organisation ready to offer and decides the job profile suits with their personal traits & carrier objectives.
Culture directly effects the work environment , the companies have different cultural architecture they may be quite flexible or well structured ,flow of communication (flat hierarchy )
For recruiters should have enough privileges to follow their way of approach and preparing their own choice interview questions to select the best candidate to produce the best results.
For the existing employees creating healthy work environment, rewards & performance appraisal ,providing recreational facilities and conducting corporate games -all the are essential elements in organisational culture and which is also help full for employee retention .Culture is the key area where every organisation must be focused to increase their productivity.
3.2 Asses work life balance issues and the changing patterns of work practice
Work-life balance is the steadiness between the total amount of and effort a person dedicates to work and the same priority given to other aspects of life.
Work life balance is the subject matter of extensive public argument on how to allow employees have more control over their working schedule in order to better accord other facets of their life, while still profit their organisation. The motive of work life balance is to changing work practices to get the best out comes from their employees. It helps to focus on easy working practices and employee friendly polices-the below are the few advantages of flexible working practices
* Retention *Motivation *Productivity *Customer service
*Team building *Knowledge sharing *Recruitment
Work life balance is a very difficult process to establish because of the global competition and the work patterns have changed and employees need to work 24/7 & 365 days in a year to meet the market demand. To achieve work life balance organisations should take rigorous steps to push forward it. Employer should offer wide range of benefits and initiatives for top to down of hierarchy, recent times some proactive organisation made compulsory leave, disciplinary about the maximum work hours and restrict employees not to work after business hours. It will improve corporate health by reducing work pressure and illness and also it is driving force to get creative ideas. Some times job seekers also look for those organisations whose giving more priority to their family life. Creative, flexible, recognition and good work environment brings a diverse knowledge and skills.
4. UNDERSTANDING THE GRIVANCE, DISCIPLINE AND DISMISSAL PROCESS
4.1 Identify the process to be followed in a grievance situation
Grievance means - it is an actual circumstance pertaining to a cause for complaint. It is a legal obligation to the company to have grievance procedure in place and it is accessible to all employees. Employees should be supported to complain if they have any issues, in the fist place to their immediate supervisor (or) higher authority. However if the informal way of approach seems to be not working then the employee should follow the formal complaint procedure. In this case employer must give immediate action to solve the problem. The steps involved to solve grievance situation.
The formal way of grievance procedure
Employee should submit their complaint ( grievance) in writing to their department manager.
Employer (department manager) should investigate into this matter and invite employee to explain about the grievance situation.
The manager should understand the situation before he (or) she responds to the grievance. Manager should acknowledge in writing to the employees grievance within the stipulated time and let the employee know about that they can claim against the supervisor's decision if he is not happy with that.
Decision making-after hearing arguments from both the parties, management representatives will take final decision
Take necessary action to solve the grievance.
Employer should give enough importance to grievance with high sensitivity and also be impartial to the employee to solve the issue. Conflicts at work are quite expensive, disgraceful and stressful for both staff and the organisation. Structured decisions can be made before issues get escalated and damages work relations.
4.2 Describes the stages of a discipline issue that results in dismissal
Disciplinary procedures help to maintain all employees of the organisation should adhere to company standards, ethical polices and procedural methods. This will ensure that impartial and rational way of treating all in the organisation and assures quality of work nature in the long run.
Identify the employee whose breached code of ethics (or) misconduct.
Formal investigation has to be conducted by the employer.
Formal action(or) Disciplinary charges -The manager will write a letter to the concerned employee giving information about the allegations about him/her with supporting documents (evidences).
Disciplinary hearing -The employee will have a chance to explain the issue and any reply to the allegations filed against him/her. They also have a chance to provide witnesses may prove the allegations are incorrect.
Disciplinary Decisions - Manager will consider all the information that has been collected and asses the consequences before taking a decision
*First written warning
*Second written warning
*Final written warning
Appeal:- The employee will have chance appeal against the decision
Disciplinary action will be taken (no further appeals)
4.3 Explain the role of ACAS, Employment Tribunals and other external agencies that could be involved in grievance, discipline and dismissal process
ACAS, Employment Tribunals and other external agencies help employees work together effectively and also setting up the high standards to resolve the disputes if anything go wrong. These advisory bodies are independent and work with out any discrimination.
They highly work on dispute management, they will act like a mediators and to try to get different sides together. It is also advisory body to avoid conflicts through establishing some good practices and tacking some special care while handling individual cases.
ACAS & other advisory bodies provide impartial information and assistance to protect the employee rights.
It will help to bridge the relationship between the employer and their workforce.
ACAS also provides training for managers and trade unions on their functions to be performed; this has a absolute impact on work place relations.
Employee tribunals will be involved in grievance, discipline and dismissal process when appeal procedure takes place. The statutory appeal board will have an opportunity to ask questions both the employer and employee. They will inquire about the situation and will confirm the decision in a given time limit.
Employment standards act try to protect the human rights and it can only be accomplished by employee tribunals. For ex
*Improper dismissals claims
*Discrimination claims (gender bias, racial discrimination, religion etc)
*Equal labour pay claims
*Claims relating to over time, incorrect and deduction form wages
Employment tribunal rules are difference from country to country; they have their own set of high standards to resolve conflicts. But their motive is to safe guard the rights of people and to build healthy relationship between the employee and the employer. Dispute management representatives improvise the ethical values of an organisation which assures quality of work relations.
Human Resource planning is all of about Quantity of people that we need, Quality (Skill set required to meet the demand), Room (which territory), Time requirements of the organisation.
I have tried to explain the important aspects of human resource planning
*How HR plan supports the strategic objectives.
*Legal frame work which is influencing HR plan.
*Recruitment and selection of new staff.
*Organisation culture and retention of staff.
*I also quoted an example -systematic design of hr plan which I recommended to my
previous company Wipro.
*Various stage involved in grievance, discipline and dismissal process and also the
significance of employee tribunals.
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