Planning: the core function of Human Resource Department Page � PAGE �1�
Human Resource planning is a process of identifying current and future human resources needs for an organization to achieve its goals and strategic objective. It involves, but not limited to forecasting an organization's future demand and supply for different types of employees directly linked to its business needs. Implementation of gap analysis between future HR supply and future demand is taking place first. Strategies are then developed in order to minimize the gaps and may involve recruitment, internal staffing, development and training, and activities relating to rightsizing. Forecasting future needs implies proper understanding of the future business directions of the organization, so that the HR objectives can be appropriately identified. HR planning is conducted at the organization level or at a component level within the organization, but a key factor for success is to understand and link planning at any level to the to the strategic directions of a company.
Many professional HR managers specialized in industrial and organizational psychology work on activities focused on designing and implementing programs in recruitment, selection, training, etc., in order to realize organizational needs. Such activities generally involve elements of planning that are named as future-oriented.
We can identify the 4 major stages in HR planning, as following:
Stage 1: Evaluation of human resources within the company and understanding of their availability in the market
Stage 2: Estimating the currently employed manpower resources that are willing to be with the firm. Predict losses of current manpower at the end of forecasted period.
Stage 3: Assess and forecast of labor requirements during the forecast period, to achieve the company's objectives and goal.
Stage 4: Ensuring that the required human resources are available during and by the end of forecasting period.
Even some projects for which objectives are expected to be achieved in short time (2-3 months) should be designed with a clear understanding of how the short-term objectives are linked to the achievement of longer term objectives. For example, a Construction Company "X" engaged in a recruitment campaign to hire 50 engineers should have a clear understanding of how this hiring goal will help the company achieve its long-term goals such as becoming the most reputable and proficient company in that industry. This particular company can also focus on finding 25 engineering graduates to provide for them an on job training program. Due to the fact that a growing company needs to prepare a number of top and middle managers, HR dpt. should plan ahead of time. It will take from 5 to 7 years to develop middle-level managers, as well as the top level managers will be prepared within 10 to 15 years.
This particular example allows us to discover a clear linkage between human resource planning and strategic business planning. It is preferable if top executives would have a properly designed vision of the future, which has been communicated and accepted by managers throughout the organization. Nevertheless, in case if company "Y" does not have a common understanding of the vision, a professional HR manager can facilitate a number of strategic planning sessions, and develop Vision, Mission, and Objectives for the whole company. Based on the overall strategy, HR department will mobilize its human power and proceed with planning.
FORECASTING THE DEMAND AND SUPPLY
The demand and supply of human resources can be predicted by understanding the business needs of a company and having an updated picture of the labor market in the region. Human resource dpt. objectives follow logically from consideration of any discrepancies between demand and supply. Demand refers to the number and characteristics (e.g., skills, abilities, pay levels, or experience) of particular...
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