Strategic Human Resource Planning - Coursework Example

Running Header: Essay - Strategic HRP Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Essay - Strategic HRP Human resource planning (HPR) is seen as the process where management evaluates how the organization should progress from its present status of work force to its cherished status (Susan & Randall 2000, P. 223). Via planning, management works hard to acquire the right types and number of persons, at the right time, at the right place, performing tasks that aim in both the individual and organization obtaining utmost long-standing benefits. Workforce planning (WFP) is similar to human resource planning since it is described as a organized progression for obtaining the workforce competencies needed to accomplish strategic objectives and for building up the strategies to achieve these prerequisites. WFP is also a process of making sure that the effective persons with the appropriate skills are in the correct place at the right time. This paper seeks to discuss that planning for use of human capital is vital aspect of developing effective not-for-profit (government) and for-profit (business) organizations, since HRP is the basic process of forecasting and determining human capital requirements of the organization for the present and the future. Various organizations have established workforce planning models which are more similar except that terminology and the sequence of processes varies. A simple model of WFP begins with workforce data analysis since it is the key factor in the workforce planning process. According to Vernez (2007, p. 31), workforce analysis involves evaluating both demand and supply of the existing and future work force of the organization. Analysis of supply concentrates on future and existing workforce supply of the organization. This stage involves analyzing particular attributes of the present workforce, evaluating trend of data and predicting the future supply of workforce. Considerations of supply analysis seek to answers various questions. It determines whether objectives, vision, and mission are known, clear and aligned to the organization planning. Supply analysis also seeks to identify strategic objectives of the program or organization and the functional conditions connected to achieving those objectives. Additionally, current services and goods produced are considered in supply analysis. Finally, competencies of the existing workforce are also evaluated. The other workforce analysis involves demand since it also aids to evaluate requirements of future workforce. The major point of concentration in this stage is the work that the organization must carry out and the employees required to execute the work. Demand analysis seeks to answer whether the way of carrying out business in the organization is likely to change. It also considers the nature of the job carried out in terms of duration, location and volume. The analysis also considers if the organization strategic objectives are likely to change. Other considerations are proficiencies required in the future human capital and the probability of decrease or increase of workforce due to other considerations. The second phase in the simple WFP model is gap analysis considerations. This phase looks in to how workforce will change in future. It also considers the type of skills that leaving employees will be able to contribute throughout the periods being analyzed (Vernez 2007, p. 32). It also looks into the workforce skills required and are currently unavailable in the present workforce. The final phase in this model is considerations on solution analysis. The issues looked into are ways in which training can aid the transition and the type of sources for hiring new workforce. Additionally, considered are expected workforce attrition rate and retirement. The projection retirement and workforce attrition rates must be taken into consideration. It will also aid in evaluating the type of positions or jobs to be filled in the future. This will consider whether new recruitments will fill new types of jobs or replace existing workers. HRP practices involve constant process of evaluating requirements of HR under changing environments that develops arrangements to move from current staffing plans to cherished staffing plans. Errors in planning occur if a lot of focus is directed on short-term requirements or little coordination with long term or strategic plans. There are various qualitative techniques practiced to project labor demand. Estimation method is practiced by persons in position to approximate the size of workforce needed in future. Expert opinion is also utilized where experts panel project HR needs for specific future organization situations. Group brainstorming is another method where discussion of face-to-face takes place considering many assumptions regarding future direction of business. Simulation models utilize future events probabilities to project levels of future employment. Markov analysis method is a probabilistic that is founded on history of employment business factor and level of employment itself. Quantitative methods of labor demand forecasting include trend projection and analysis, simple long-run trend analysis, and regression analysis. Integrated strategies of HR and functions of HR involve job analysis and it is foundation of other plans of HR such as recruitment, selection, training and development, rewards, performance management, and succession planning. Job analysis (JA) is the key to plans focusing on organizational capability and human capital gaps. JA helps HRP since it enables it to develop a more accurate job design. Organizations have started adopting human resource information systems (HRIS) to offer information utilized in human resource decision making. Examples of HRIS are SAP, Oracle, PeopleSoft, Ramco e Applications and HR connection, PeoplePower and Admin suite among others. The advantage of HRIS is that it has high degree of producing timelier and more accurate information for planning, controlling and operating purposes compared to manual systems. It also eliminates papers in reports and files. When HRIS is employed in strategic HRP it helps in maintaining complete, updated, and accurate database that can be obtained when required from files. There is evidence indicating that HRIS are highly utilized for purposes of administration instead of planning and analytical purposes. According to Kristine , Grant, and Sharna (2006, p. 3), study on 138 organizations in Australia found that although 50% of involved firms were found to have a HRIS but the degree to which they were being utilized in a strategic way differed. Also for the greater part, the claimed potential of the information systems was not being attained. For instance, while 91% of firms with HRIS utilized the systems so as to record and process leave, merely 34% utilized them in regard to planning of staff. HRP occurs within a wide context of strategic business and organizational planning. Strategic planning sets direction of organization and defines its measurable objectives and goals. Therefore, HRP should be conducted concurrently with organizational planning. It includes developing objectives and then creating and implementing programs-training, compensating, appraising, and staffing- to make sure that persons are obtainable with the effective skills and characteristics where and when the firm requires them (Susan & Randall 2000, p. 223). It also involves implementing and developing plans to elevate workforce performance or to improve employee involvement and satisfaction to enhance organizational innovation, quality, or productivity. Since the main goal of planning is overseeing effectiveness of the organization, it must be done concurrently with firm’s long-term and short-term business plans and objectives. Progressively this is being done in the big organizations, though in the past business needs usually dictated HRP and personal needs, which implied that planning turned to be reactive process. The reactive trend of the process went together with a short-term orientation. Presently, major changes in social, economic, and business environments are developing uncertainties that are forcing firms to combine human resource planning with organization planning and to adopt a longer term outlook. For instance, O’Brien John (vice president of HR at Digital Equipment Corporation) elaborates an integrated connection between organization and HRP (Susan & Randall 2000, p. 223). He explains that line and human resource managers should work together to develop organization plans and evaluate human resource requirements, analyze the workforce profile in terms of future organization strategies, review cropping human resources requirements, and develop programs to tackle the issues and reinforce the organization plans. There are several advantages of HRP/WFT. Development of HRM policy can be helped by WFP by offering information about future and current situations. Some of situations are identified as surpluses and shortages, identification of competencies and mission critical role, defining roles, tasks and workplace organization, and evaluating forces of both supply and demand. Others situations are developing workforce training and education requirements. WFT make sure that there are procedures for analytically tackling aspects that are influencing workplace and workforce change. It can also be a technique to evaluate strategy alignment by establishing balance scorecard with customer, financial, learning and process operation aims. There are also some disadvantages of WFP/HRP. Lack of experience in promotes simplified process and specific HRP. In addition, majority of organization lack the needed expertise and skills to carry out WFP. Culture of the organization can be an obstacle to WFP (Susan & Randall 2000, p. 226.). It is not always simple to track incremental progress and measuring strategic goals. In conclusion, a simple WFP model involves supply and demand workforce analysis, gap analysis, and solution analysis. There are various qualitative techniques practiced to project labor demand. Quantitative methods of labor demand forecasting include trend projection and analysis, simple long-run trend analysis, and regression analysis. JA is the key to plans focusing on organizational capability and human capital gaps. HRIS provides information utilized in human resource decision making. HRP occurs within a wide context of organizational planning and hence both should be conducted concurrently. WFP/HRP has various advantages and disadvantages. Planning for use of human capital is vital aspect of developing effective organization. References Kristine D, Grant, D &Sharna, W 2006, ‘Human resource information systems (HRIS): replacing or enhancing HRM,’ Work and Organisational Studies, Vol. 2, no. 3, pp. 1-9. Susan, E & Randall, S 2000, ‘Challenges for industrial/organizational psychologists,’ Human Resource Planning, vol. 45, no. 2, pp. 223-239. Vernez, G 2007, Workforce Planning and Development Processes: A Practical Guide, RAND Corporation, Santa Monica. Read More