Types, Tools, Activities for Human Resource Planning22nd February 2021
Types for Human Resource Planning
To satisfy the organization’s strategic objectives, human resources needs to consider what kind of workforce will be needed in the future. Workforce forecasting is a major component of human resource planning, and involves analyzing its current workforce and comparing it to future requirements to discover what gaps and surpluses exist.
Achieving strategic objectives through the human resource element involves attracting and recruiting quality employees. Benefits, compensation, organizational structure and employee growth or advancement are key elements for finding and hiring good employees. Planning the recruiting process with these elements in mind will assist with future employee selection.
Development, or training, is a type of human resource planning that focuses on how it can improve the current and future workforce. Training and development programs improve both specific work-related skills and more general skills like customer service or sales training. Training and retraining programs can also focus on reducing current and future liability issues related to workplace safety.
Planning for the retention of employees can be an arduous task, as it is difficult to prevent employees from looking at other employment opportunities. Human resources can help to reduce this likelihood by planning retention programs that focus on employee recognition, rewards, advancement or growth, a work-life balance and employee benefits.
Tools for Human Resource Planning
Increasingly, companies can incorporate performance technology and forecasting matrices into human resources planning (HRP). Larger companies tend to favor quantitative methods in their HR strategies, while smaller companies can more effectively use qualitative methods and managerial discretion. Everything from a company’s mission statement to its use of enterprise resource technology can contribute to optimizing the productivity and longevity of its workforce.
The scope of HR planning tools has grown significantly since the last several decades of the 20th century. Much of this has to do with computing technology that has enabled firms to collect data, information, and feedback; provide support; and create new incentives for performance. There are entire companies and new products devoted to improving job analysis and personnel development.
One example of a popular project management tool is SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. The SWOT technique was developed by Albert Humphrey in the 1960s to help businesses use all forms of capital, including human labor, within a deliberately self-aware framework. The idea is to emphasize positives and work to reduce exposure to weaknesses, constantly encouraging growth. Similar techniques have followed in the footsteps of SWOT, leading to several competing projects and even organizational theories of development.
There are several pillars of successful HR planning, each of which has its tools and techniques. Companies must be able to find and hire talented employees. Corporate cultures need to be cultivated in ways that encourage productivity and reduce unwanted turnover. Training and development programs should be in place, formally or otherwise, to improve workplace efficiencies. Anything that encourages the growth of output per labor dollar can be pursued.
A common aspect of a good human resource management plan is to create a SWOT analysis that finds the strengths, weaknesses, opportunities, and threats of the company and plans on ways to address them. The most successful HR departments are able to forecast labor needs and make proper plans to maintain or expand as needed. Another important tool for HR managers to use is business data. Data like payroll, benefits cost, revenues, employee hours, absenteeism rates, training costs and turnover rates allow HR managers to assess, understand and evaluate the business better.
Forecasting Techniques in Human Resource Planning
- Analyze Work Operations
- Conduct a Detailed Job Analysis
- Conduct Online Surveys
- Use Society of Human Resource Calculators
- Read Department of Commerce Reports
- Document Forecasting Process
- Follow Forecasting Process Consistently
There are many techniques HR departments can use to make their planning process easier. When conducting a detailed job analysis for each function of the company, HR managers should list all policies and procedures required to complete each task. HR managers should document the standard output for each person and compare that to the desired output to determine the number of people needed to produce the desired volume of operations. A technique many HR managers use is to ask several experts in their organization about their opinion on forecasting needs based on their experience of managing employees.
These findings should be shared with all experts involved due to the fact that they don’t normally share their opinions with each other. This is a problem within businesses because communication is key to making a company successful. The department of commerce has reported on workforce planning needs that help HR managers learn about trends and assist them in their forecasting budgets for hiring, training, and payroll. These reports help companies compete in the global marketplace. By documenting forecasting processes used, HR departments are able to create more accurate forecasts in the future.
Human Resource Management Tools and Techniques
- Organizational Charts
- Responsibility Assignments Matrix
- Organizational Theory
- Expert Judgement
- SWOT Analysis
Organizational charts are an excellent way to explain authority and reporting lines in a project. The HR plan should describe when to recruit staff into a project, how they will be trained and when the staff should complete the project. Many HR managers use a matrix called the responsibility assignments matrix (RAM). This matrix should describe the various work packages and the various roles within the company. The text is a simple document that states the role within a project, the responsibilities they will have, the tasks involved in the role and qualifications needed to fill such a role. This document is necessary for HR managers to hire the best candidate for the position. Networking is an important aspect of the HR planning process. Communication with others within a contact network is necessary to understand outside forces that may influence projects. People work differently when they are alone than when they are in a group setting so it is important for managers to understand how their team will behave.
There are many tools and techniques HR departments can use in their planning processes. For an organization to operate at its highest capacity, the HR team must be aware of all tools and techniques available to them and use them wisely. When the HR department within a company is operating at its highest capacity, the organization will also be operating at its highest capacity as well.
Activities for Human Resource Planning
- Analysing organisational plans and objectives:
The process of human resource Planning begins with analysing the overall plans and objectives of organisation. The reason being the human resource plans stem from business plans. Analysis of business plans into sub-sectional and functional plans such as technology, production, finance, marketing, expansion diversification provides for assessing the human resource requirements for each activity in each section and department.
Similarly, the analysis of organisational objectives also provides for human resources required by an organisation. For example, if the objective of the organisation is rapid growth and expansion it would require more human resources for its all-functional areas. Thus, it is evident the human resource planning needs to be made in accordance to the overall organisational plans and objectives.
- Analysing objectives of Human Resource Planning:
The main purpose of human resource planning is matching employees’ abilities to enterprise requirements, with an emphasis on future instead of present arrangements. According to Sikula, “the ultimate mission or purpose of human resource planning is to relate future human resources to future enterprise need so as to maximise the future return on investment in human resources”. For this, managers need to specify the objectives of human resource planning with regard to the utilization of human resources in the organisation.
- Forecasting Demand for Human Resources:
The demand for human resources in an organisation is subject to vary from time to time, depending upon both external and internal factors External factors include competition, economic and political climate, technological changes, government policy, etc.
Among the internal factors include growth and expansion, design and structural changes, management philosophy, change in leadership style, employees resignation retirement, termination, death, etc. Therefore, while forecasting future demand for human resources in the organisation, these factors need to be taken into consideration.
- Forecasting Supply of Human Resources:
Having forecast human resource demand, the next task involved in human resource planning is to forecast human resource supply Forecast of human resource supply gives the quantity and quality of people available from internal and external sources of manpower supply, after making due allowances for absenteeism, transfers promotions, changes in work hours, and other conditions of works”.
Forecasting of human resources begins with the current human resource inventory, also called human resource audit. Human resource audit is separately discussed, in detail, later in chanter 29. In brief, human resource inventory contains information about present human resources in the organisation.
- Matching Demand and Supply:
Once demand for and supply of human resources of an organisation is forecast, the two need to be reconciled. Such reconciliation will reveal either shortage or surplus of human resources in future.
Accordingly, action plans will be prepared to meet the situation, i.e., to strike a balance between the two. In the case of shortage of human resources, this will be met through recruitment, transfer, promotion, training and development, retention, etc.
On the contrary, in case of surplus human resources, it can be made good through schemes like redeployment, retrenchment; voluntary retirement scheme (VRS) through golden handshake etc. will be recommended and implemented. Yes, downsizing should be done in consultation with the employee’s union. This will help avoid employees’ resistance for change in job.
- Monitoring and Control:
The sixth and final step involved in human resource planning is monitoring and control. Once the action plans are implemented, these need to be reviewed, regulated and monitored against the set standards.
Monitoring of action plans and programmes help reveal deficiencies, if any Corrective measures help remove deficiency and, thus, control the implementation of action plans in the right direction. In case of changes in business environment, the action plans formulated earlier need to be modified in the light of changing needs of Organisation in the changed environment.