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Human Resource Planning in a Healthcare Organisation

Paper Type: Free Essay Subject: Management
Wordcount: 1520 words Published: 1st Aug 2018

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Analyse the business factors that underpin human resource planning in a healthcare organization

Human resource planning refers to the series of steps or actions in analysing and identifying the need for human resources or employees of the organization to meet the company’s goals and objectives. It aims to provide for the future staffing needs of the company and to make certain the use of employees to the greatest degree. Having an efficient and effective human resource planning will result in organization’s stability and sustainability.

There are several business factors that underpin human resource planning. These factors dictate the need to plan human resources by considering the influence of the internal and external factors. Some of these business factors include business growth, decline, change, and competition; impact of technology and labour market competition and employee development.

Business growth

Business growth is the process of improving some measure of an enterprise’s success. Business growth can be achieved either by boosting the top line or revenue of the business with greater product sales or service income, or by increasing the bottom line or profitability of the operation by minimizing costs. Business growth also means expansion in business that causes increased spending and increased business opportunities. As the company expands, so do their HR operations to meet the complex needs of a growing workforce. The HR manager should consider factors such as hiring new employees or training existing employees to meet the demands of its increasing clients. With this, HR management needs to prioritise the departments or units where more staff are needed, do a job analysis, and draw job specifications that will help them in recruiting the right person on the job.

Business decline

Business decline refers also to a downturn in an organization which is characterized by decreased in profits or clients. When this happens, management compensate by trying to reduce cost which may include cessation in hiring or reducing work hours of the employee. During this stage, planning and implementing workforce reductions and reallocations is also possible.

Business change

Organization change occurs when business strategies or major sections of an organization are altered. It can create the need for the HR department to focus on staffing issues such as hiring and terminating employees, training of staffs, or changing job specifications which may result from a change in job functions. Business change can also create confusion, resulting the need for HR management to enhance communication by conducting group meetings to keep employees informed about what to expect during the change process.


Every businesses face competition so human resource planning will need to ensure that the company stays ahead of other competitors. This forces the management to expand and hire more staff in order to withstand competition and remain competitive in a particular field.

Impact of technology

The impact of technology innovations has shaped human resource management. Softwares used in HR management is useful in managing and maintaining employee information such as payroll, benefits, hours worked, performance appraisals, and training and development participations. These applications can help the management to be more productive, effective, and error-free. Technology advancements may also increase or decrease the demand for employees in certain industries or profession. For example, human resource management may plan to hire staff who are knowledgeable in computers or they may also reduce staff because what can be done usually by two persons can now be done by one with the help of technology. Furthermore, technology can assist HR in the recruitment process through online recruitment, video interviews, and social media.

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Labour market competition

As the organization plans its future workforce needs, so do other organizations in the same field or industry. This then will result to labour market competition. It is imperative for HR management to do human resource plans such as taking aggressive actions in recruitment or giving incentives to attract more qualified and talented applicants. Having the right people with the right knowledge and skills in the appropriate positions is very important and the lack of it will result to dissatisfaction from clients that may cripple the organization.

Employee development

As the business continues to evolve, it requires a skilled and knowledgeable workforce composing of employees and staffs who are flexible, motivated, and focused. It is one of the main responsibilities of the HR manager to develop the staff through encouragement, coaching, and conducting training and development activities that match the employee’s career objectives and goals.

Analyse the human resource requirements and factors that underpin human resource planning in a healthcare organization.

Identifying internal personnel requirements

Human resource planning identify the workforce required to perform organizational activities. First, HR managers do assessment which includes job analysis and inventory of the workers and skills available within the organization. Then they need to determine the future needs for human resource in terms of quantity and quality. Then HR department needs to do a matching process to bring demand and supply in an equilibrium so that shortages and over staffing position will be solved. In case of shortages, HR department needs to train staff within the organization or hire new ones. On the other hand, in case of over staffing HR management may also need to reduce the level of existing employment.

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Internal and external factors in matching personnel to organisational requirements

Human resource planning in healthcare organizations involves looking at the current workforce skills and motivation strategy and comparing them with what is needed in the future. To do this the organization has to consider both the internal and external factors in matching personnel to organisational requirements. Internal factors includes skills requirements and workforce profiles. Skills requirements means assessing the skills of the existing staff or employees to build up a profile of the training, experience and qualifications that employees have. Workforce profiles means that the manager observes and monitors the types of employee working for the organization. These observations include details such as age, gender, ethnicity and availability. External factors includes supply of labour. Supply of labour refers to the number of workers willing and able to work in a particular job. The supply of labour is dependent on in unemployment and the type of skills that are needed by employers.

Government policies

Policies of the government like labour policy, industrial policy, and policy towards reserving certain jobs for different communities affect HR planning. The organization needs to comply with these legislations or policies to avoid penalties or possibly closure of the healthcare facilities. HR department should plan to avoid this dilemma by ensuring the compliance of the organizations.

Labour market competition

As the aging population or healthcare facilities increases in different countries, there is a high demand for healthcare workers. This causes shortages in the skilled profession such as nurses and doctors which then resulted in tight labour market competition. HR department needs to devise a creative recruitment strategy to attract and retain qualified healthcare professionals. One effective recruiting strategy lies on how the healthcare employer profiles itself on job postings. Hospitals or healthcare facilities known for their quality healthcare services and advancements appeal to most applicants. Another strategy is giving out incentives or sign-in bonuses to qualified applicants.


What is business growth? definition and meaning. (n.d.). Retrieved from http://www.businessdictionary.com/definition/business-growth.html

What is organization change? definition and meaning. (n.d.). Retrieved from http://www.businessdictionary.com/definition/organization-change.html

The impact of human resource technology in a changing workforce environment. – Cleveland Human Resources | Examiner.com. (n.d.). Retrieved from http://www.examiner.com/article/the-impact-of-human-resource-technology-a-changing-workforce-environment


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