HUMAN RESOURCE PLANNING

Human Resource Planning

Human Resource Planning

Human resource planning (H.R.P.) plays an eminent role in any organization as a medium to achieve organizational goals through strategic human resource management. It is characterized by a systematic process, undertaken through forecasting human resource needs under changing conditions so that strategic planning is implemented to attain the right human resources needed in the future in accordance with their long term goals and objectives of the organization (De Cieri et al., 2003).

The process of H.R.P. is intended to match projected human resources demand with its anticipated supply, with explicit consideration of the skills mix that will be necessary throughout the firm (Huselid, 1993). Rather than a reactive and ad-hoc approach, H.R.P. apprehends a proactive slant whereby forecasts are made on labor surpluses or shortages using statistical or judgmental methods. Forecasting techniques are applied to certain areas within the organization so that further goals and strategic planning can be advocated (Smith et al., 1992). Such goals and planning involve changes to HR activities hence human resource planning is not undertaken in isolation. Consequently it will generate issues attributed with various HR activities particularly employee learning (development), recruitment, performance management and retention, which will be further examined with specific reference to succession planning.

The importance of HR planning has generally been overlooked by organizations. Its proactive approach allows it to be more strategic in its decisions rather than face obstacles when unprepared. It can enhance the success of an organization through anticipation of labor shortages or surpluses and thus make decisions about the overall qualitative and quantitative balance of employees (Smith et al., 1992). For instance, without a plan, a shortage in labor may instigate desperate measures to hire only good candidates and not the best. This will have cost and productivity implications not only in terms on money but also reputation, motivation etc. By implementing such plan, an organization can enhance its success and reduce various administrative costs by a third.

Nevertheless, it does help "pinpoint and eliminate the organizational barriers that impede their productivity" (Rothwell, 2002, p32) within their capacity. The key concept here is that any changes towards the H.R.P. or changes to the suitability of a successor due to changing performance objectives may inhibit a downward shirt in productivity. An example that Jones (1995) exemplifies is that of the Monsanto Company which experienced a decentralized culture and global recession resulting in downsizing. This resulted in current employees to adjust dramatically resulting in different assumption about their performance and work environment. Following the inability for current processes to affect performance, Monsanto restructured and employed performance management techniques that complemented their business strategy.

Performance management in general should not be lenient in order to prepare successors for any changes, instead the organization should set difficult goals, higher participation and frequent performance feedback to create job autonomy and control (Jones, 1995).

Incorporating retention strategies into the HR and succession plan plays a major role in the changing and increasingly mobile workforce. This has been linked with the move towards the ...