INFORMATION AND COMMUNICATIONS UNIVERSITY SCHOOL OF EDUCATION MASTERS IN EDUCATION MANAGEMENT An assignment submitted in partial fulfillment of the requirements for the MASTERS IN EDUCATION MANAGEMENT Assignment No. 1 Student details: BEATRICE CHILUFYA SITUMBEKO Lecturer’s Name: CHENGO Year: 2016 Human Resource Management (HRM) and Human Capital Management (HCM) has replaced the already existing branch of Knowledge, Personnel Management in the Post Globalization Scenario. Human Resource Planning (HRP) has acquired great importance in terms of organizational development. HRP is largely based on the concept that people are an organizations most important strategic resource. Generally it deals with matching resources to business needs. It also addresses human resources needs both in terms of quality and quantity. HRP also deals with broader issues of the employment and development of people so as to improve organizational effectiveness. It is therefore imperative that HRP is required to be analytically studied for a fair understanding. Every organization requires diverse resources for its growth and development. Among them Human Resources. Resources (HR) plays most important role because it is the Human Resources (HR) that will determine the potentialities of an organization in terms of its production, marketing and expansion. Human resource management (HRM or HR) is the management of human resource. It is primarily concerned with the management of people within organizations, focusing on polices and on systems. The HR department typically undertake a number of activities, including employee benefits design, employee recruitment, “training and development”, performance appraisal, and rewarding e.g., managing pay and benefit system. HR also concerns itself with organizational change and industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws. Therefore, this essay will explain what human resource planning is, and why must human resource planning be seen as a process flowing from the organization strategic plan. According to my own understanding, HR is defined as a process by which Human Resources are identified, determined and planned that an organization needs in order to meet both its short term and long term requirements. Bulla and Scott (1994) also define Human Resource planning (HR) that “it is the process for ensuring that the Human Resources requirements of an organization are identified and plans are made for satisfying those requirements”. Human Resources planning is based on the concept that people are the most important strategic resources of an organization. Generally it is concerned with suitable resources to business needs both in longer tern needs and in shorter term needs in terms of both quantity and quality. It also answers two fundamental questions “how many people” and “what kind of people”. Human Resource planning deals with the bigger issues of the methods of employment and development of people for the purpose of the improvement of effectiveness of an organization. It therefore plays an important role in strategic Human Resource Management. According to E.W. Vetter, human resource planning is the process by which management determines how an organization should make from its current manpower position to its desired manpower position. Through planning a management strives to have the right number and the right kind of people at the right places, at the right time to do things which result in both the organization and the individual receiving the maximum long range benefit. Human resource planning is the process that links the human resource needs of an organization to its strategic plan to ensure that staffing is sufficient, qualified, and competent enough to achieve the organization’s objectives. Human resource is the most important asset of an organization. Human resources planning are the important managerial function. It ensures the right type of people in the right number, at the right time and place, who are trained and motivated to do the right kind of work at the right time. All organizations have to plan for the positions that inevitably become vacant. Employees retire, resign or get promoted. Also, new positions develop as the business expands. Therefore, for most organizations, determining staffing needs is an ongoing process. Human resource planning in the establishment phase of the employment cycle involves forecasting the number of employees available and the number of qualified employees demanded in the future. HR planning must be related to business strategies. A business strategy is an action that is taken to achieve an organization’s objectives. A common strategy used in order to achieve the objective of increased profitability may be to reduce business costs. HR must forecast the future demand for employees and estimate the supply available to meet that demand in order to avoid having too many. Michael Armstrong (2008) spells out the process of Human Resource planning (HRP) that it is not necessarily a linear one, starting with the business strategy and flowing logically through to resourcing, flexibility and retention plans. According to Hendry (1995) the process of HRP may be circular rather than linear, with the process starting anywhere in the cycle. For instance, scenario planning may impact on resourcing strategy, which in turn, may influence the business strategy. Alternatively, the starting point could be demand and supply forecasts which form the basis for the resourcing strategy. The analysis of labor turn over may feed into the supply forecast, but it could also lead directly to the development of retention plans. There cannot be a well-articulated business plan as a basis for the HR plans. The business strategy may be evolutionary rather than deliberate. It may be in parts intuitive and incremental. Resourcing decisions may be based on scenarios riddled with assumptions that may or may not be correct and cannot be tested. Below is an overview of human resource planning from a strategic planning point of view. The model shows the relationship of internal factors and external factors as they relate to the human resources issues. They are factors that not only create; but also shape and change the issues. The business plan usually establishes the basic environment within which other variables impact in order to determine those issues. Out of those issues grow the human resources strategies and plans that are most often developed and implemented by and with the assistance of the human resources department. All organizations have to plan for the positions that inevitably become vacant. Employees retire, resign or get promoted. Also, new positions develop as the business expands. Therefore, for most organizations, determining staffing needs is an ongoing process. Human resource planning in the establishment phase of the employment cycle involves forecasting the number of employees available and the number of qualified employees demanded in the future. HR planning must be related to business strategies. A business strategy is an action that is taken to achieve an organization’s objectives. A common strategy used in order to achieve the objective of increased profitability may be to reduce business costs. HR must forecast the future demand for employees and estimate the supply available to meet that demand in order to avoid having too many employees on the payroll. If supply of employees is forecast to be greater than demand, HR will have to plan for a reduction of the workforce. For example, large supermarket chains like Shoprite and Pick ‘N’ Pay will have to plan for the likely staffing effects of customer self-scanning facilities. With as many as six in ten shoppers now scanning their own supermarket items, chains such as Woolworths and Food Lovers must plan for what may inevitably mean a decrease in the number of checkout operators. Human resource planning that is related to the business strategy of the organization has never been more important. Given the pace of today’s technology and the global economy we now operate in, organizations must respond to change faster. If an organization does not plan their human resource needs in line with their business strategy, it is unlikely that the business will succeed. Human resource planning in the establishment phase of the employment cycle requires that an organization constantly monitor and plan the number of employees required, scrutinize their qualifications, including skills, previous experience and knowledge, and when and where these employees will be needed. Research strategic planners also contends that organizations should strive to identify both the external and internal factors that enable firms to shape a competitive advantage and achieve superior performance (Harrison & Enz, 2005). To achieve superior performance, firms need to create cost efficiencies that enable them to operate on lean margins or alternatively differentiate themselves so as to charge price premiums. When examining competitive strength within the firm, the resource-based view (RBV) is helpful for identifying sources of advantage (Barney & Wright, 1998). This approach to strategy considers the role that internal resources, such as physical assets, organizational systems, and human capital play in helping a firm create value and become competitively distinct and profitable (Barney, 1991; Peteraf, 993). Human Resource is responsible for the development and procurement of human capital. Without aligning a company’s human to its strategic vision, you are running a risk of having the wrong people execute the company’s plan and you may lose important competitive advantage. On the other hand HR evolves with the demands of the workforce and the changes in the market, this all fits into the strategic plan for the entire organization. Garstenstein Devra contends that HR planning is important to an organization because it provides a sense of direction and outlines measurable goals. He further states that strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward. CONCLUSION The success of human resource planning mainly depends on the will of the organization to devise such plans that will attract people to work in an environment of peace, tranquility, progress, growth and development of both employer and employee. It is possible for any organization to evolve and implement a sound HRP, if it is based on quality, quantity, and spirit of Harmony among the people that they recruit. Human resource management (HRM or HR) is the management of human resource. It is primarily concerned with the management of people within organizations, focusing on polices and on systems. The HR department typically undertake a number of activities, including employee benefits design, employee recruitment, “training and development”, performance appraisal, and rewarding (e.g., managing pay and benefit system). HR also concerns itself with organizational change and industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws. REFERENCES Bulla & Scott: (1994): Willing Slaves? British workers under Human Resource Management, C.U.P. Harrison, J. S., & Enz, C. A. (2005). Hospitality strategic management. Hoboken, NJ: Wiley. Hendry(1995) : Human Resource Management: A strategy approach to employment. Butterworth hemimann – Oxford Michael Armstrong (2008): Human resource Management & practice Peteraf, M. (1993). The cornerstone of competitive advantage: A resource-based view. Strategic Management Journal, 14,179-191. Reilly. P (1999): The Human Resource planning audit, Cambridge strategy publications, Cambridge. Vetter E.W. (2006). The nature of long range manpower planning http://onlinelibrary.wiley.com/doi/10.1002/hrm.3930030205/abstract
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