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The definition of human resource planning is a ongoing examination of the number and type of employees required by an organisation. | It leads to the formulation of strategies designed to help the organisation to achieve its goals. |
It is the process of analysing an organisations's need for employees and evaluating how this can be met from the internal and external labour markets. | Long term strategic planning is one of the distinguishing characteristics of human resource management. |
but human resource planning is of major importance because the organisation needs to be prepared as far as possible for the changes in its internal and external environments. | HR planning helps to prepare an organisation to deal with future staff and skill requirements so that it can achieve its strategic objectives. |
The success of an organisation's goals for increasing market share, increasing production or developing new products depends on having the right number of employees with the appropriate skills and qualification when they are required. | Poor HR planning can be costly for an organisation for example in terms of work lost due to staff shortages. |
Information acquired through planning provides the foundation of HR strategies which help the organisation to achieve its objectives by: | avoiding staff shortages anticipating a surplus of employees specifying training needs identifying training needs identifying skills shortages aiding the selection of employees preparing the organisation for change attempting to meet both employee and organisational expectations within the workplace |
HR planning is an essential part of the overall cooperate strategy. Planning for human resources cannot be done successfully without consultation with line managers and with reference to the organisation's strategic plan. | This is because making decisions on whether to recruit or train employees depends on organisational plans, such as whether a new product will be launched or new technology be introduced. |
There are four main stages in the planning process: | 1 Stocktaking 2 Forecasting - demand/supply of/for labour Determine gap - whats missing 3 Planning - formulate plans 4 Implementation, review and change as needed. |
1 Stocktaking - Before the organisation plans ahead for its staffing and skill requirements, it is important to examine the current situation both internally and externally. | Internally within the organisation developing an employee profile or employee database or carrying out a job analysis |
This information is gathered from CV's, performance appraisals and forms completed by employees specifically for this purpose. The final inventory should include a complete list of employees by: | Name, age, qualifications prior employment, specialised skills, performance ratings, length of service. |
This is such a valuable database as some managers may not be aware of additional skills employees have other than those needed to perform the jobs they were employed to do. | Information gathered is also useful for decision making with regard to the selection of individuals for training, promotion, transfer as well as development of recruitment plans. |
The external environment knowledge of the labour market, product market and current employment legislation is necessary for human resource planning. In addition it is also necessary to keep abreast of developments in technology that might effect the organisation. | 2 Forecasting: In order to prepare a human resource forecast two aspects of the future situation need to be considered. Future demand for labour and the supply of labour. |
Examination of the organisation's future plans aids the calculation of future demand for labour. Analysis of past trends and seasonal variations. | Supply of labour is calculated by examining staff turnover and the labour market. The availability of workers in the labour market is another important factor. The organisation needs to be aware of local and national employment levels. |
3 Planning: Having assessed the future staffing requirements of the organisation, decisions must be made on how to deal with either a surplus or a shortage of workers. | In the case of oversupply the organisation must decide what to do. Options such as redeploy, early retirement, reducing working hours, job sharing. As a last resort redundancy. |
If forecasting indicates a future shortage of workers, plans will have to be made to try and retain current employees and recruit new ones. | 4 Implementation and Review Once plans have been formulated it is imperative they are implemented. Once HR plans have been made it does not mean an organisation has to stick to rigidly to them. |
HR plans are made at a particular time and it is possible that changes within the organisation could have arisen. Therefore internal and external environments need to be monitored for any signs of change and plans reviewed. | The whole human resource planning process needs to be evaluated to ensure its effectiveness. |
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