HRM and Manpower Planning: Unit 09

• This study note covers Unit 09, which is about the Introduction to HRM and Manpower Planning

Human Resource Management (HRM) Introduction

• HRM is a process to obtain, utilize, and develop a satisfied workforce
• An organization's success is based on its human resources capabilities
• HRM is based on human orientation, ensuring employees have opportunities to develop
• HR manager leads the HR department performs managerial and operative functions

Managerial Functions of HR

• Planning, organizing, coordinating, and directing managers and workers via motivation, leadership, and communication.
• Operative functions include procuring, developing, compensating, utilizing, and maintaining human resources.
• HRM is a strategic approach to manage an organization’s people, working towards organizational goals.
• HRM is procuring, developing, and maintaining a workforce to achieve organizational goals.
• HRM involves hiring, selecting, training, compensating, and creating organizational policies.
• HRM used to only process payrolls, but now it motivates employees, resolves conflicts, and takes care of employee welfare while developing teamwork and spirit
• The workforce of an organization, known as "human resources" performs and executes organizational functions.
• Organizations need efficient employees to survive in today’s competitive business world
• Effective human resource management helps retain employees, avoiding challenges such as dissatisfaction or unclear goals.

HRM Evolution

• HRM has evolved from personnel management, where employees were originally seen as less valuable than resources like machinery.
• Before the Industrial Revolution, most people worked in agriculture with limited and restricted communication.
• Industrial Revolution (1750-1850) shifted the economy from agriculture to industry while improving communication, leading to the creation of separate departments to protect workers' rights which then led to personnel management.
• After the Industrial Revolution, organizational management theories and approaches emerged.
• Frederick W. Taylor introduced scientific human resource management, focusing on training, fair wages, and better work standards for higher productivity.

HRM Importance

• HRM promotes core competencies that set an organization apart from its competitors.
• HRM helps attract talent and achieve goals by implementing good HR practices/policies.
• Effective HRM practices clarify job roles and promote a positive employee attitude which leads to better resource utilization, aiding in overall business goals achievement.
• HRM provides opportunities for employees to grow their skills and meet future job requirements.
• Healthy HRM practices create better employer-employee relationships while maintaining quality employees
• HRM reduces conflicts, and prevents strikes and lockouts.
• HRM helps motivate teamwork towards a common goal while encouraging employee harmony and creating synergy.
• HRM allocates jobs based on skills using job analysis, reducing employee turnover and identifying job duties, requirements, and importance for allocation.
• HRM practices increase employee productivity, which leads to higher profits, and better economic development.

HRM Functions

Manpower Planning

• Involves determining human resource needs based on attrition rate, sales forecasting, and the level of productivity balanced with number of workers. Job analysis involves collecting and reviewing job duties, required skills, and organizational competencies

Compensation Management

• Wage and salary determination based on job skills and risk factors for various organizational levels.

Recruitment and selection

• Involves hiring to fill vacancies by attracting diverse applicants and selecting the right fit that includes orientation and training

Performance appraisal

• Performance appraisal is the process of monitoring employees against job KPI and providing feedback

Training and development

• Training aims to improve employee skills, knowledge, and abilities, delivering the necessary skill sets for effectiveness

Employee welfare and motivation

• Employee welfare offers extra benefits beyond wages through industrial harmony, insurance, and career support for better morale

Employee Grievances

• Listens to employee dissatisfaction, addresses injustice, and performs counselling/interactions to resolve issues and preevnt disputes

Forces Changing HRM

Demographic

• Organizational culture changes per business needs per world dynamic
• Avon diversified to door-to-door cosmetic sales, then adjusted its focus to target working women

Societal

• Business/Organizations change to meet social trends
• Fast-food restaurants switched to paper box packaging from styrofoam because consumers care more about the environment

Technological

• Technology continues to automate jobs, moving occupation away from manual labour and increasing productivity

Human Resources Planning (HRP)

• HRP is the process of determining the employee skills and numbers needed meet company goals, so that it can fill job vacancies, Planning helps find a successful course of action and without that planning organizational goal is not possible to achieve Planning starts by assessing existing operations and focuses finding improvements for upcoming year envisioning way to achieve desired results An organization should plan its human resources by organizational goals/objectives.
• HRP estimates future human resources needed and aligns the right people with the right skills at the right time to achieve the goals

HRP Model: Reviewing Business Goals

• Before planning, HR studies organizational goals to align HR activities and job performance.

HRP Model: Scanning Environment

• HR personnel determines the number of employees required by assessing gaps and reviewing skills required, while using internal and external business environment factors.

HRP Model: Balancing Manpower

• Process of balancing employee number to meet equilibrium solving overstaffing of understaffing.

HRP Model: Implement and monitoring

• Monitor execution to recruit, select, and train, and make evaluation with necessary changes if goals are not being met
• Final results are recorded for future

HRP Models

• Manpower requirements can be derived and analysed through forecast.
• Job design and analysis reviewed to meet expectations, employee knowledge and skills

HRP Models: Management Judgment

• Top-down approach is workforce request is department heads approve and review as top management predicts employee numbers, line managers request from Top

HRP Models: Work Study

• Analyze workplace to estimate production via manager converting to staff to achieve unit goals by workforce size

HRP Models: Ratio Trend Analysis

• Used to predict HR ratio of employee to tasks.

HRP Models: Econometrics

• Statistical analysis of factors to forecast HR needs.

HRP Models: Delphi Technique

• Experts provide HR opinions based on questionnaires.

Relationship of HRP with other HR functions

• HRP helps with HRM functions while expanded breadth of the company and employee performance

Relationship of HRP: Human resource planning

• Process of workforce systematic requirements that support organizational goals and objectives

Relationship of HRP: Job design

• Outlines tasks, and description with specification and design that shows experience required and accountability within the company

Relationship of HRP: Selection and staffing

• Selection and staffing includes recruiting and aligning employee skills from organizational need

HRP Challenges

• Barriers and obstacles that organization has performing the HRP

Challenge: Lack Management support

• Top management thinks that the HR is unimportant so they neglect

Challenge: Wrong Forecast

• HR makes too many errors and has risks due to business environment and analysis is not guaranteed

Challenge: Resistance from Employees

• Employees think that HR is too much workload and retrenchment

Challenge: Expensive & Time Taking

• HR is expansive to hire/ fire so it's risky

Challenge: Uncertainties

• Risks like market fluctuations so it can only partly be relied upon

Challenge: Lack of knowledge of insufficient info

• HR is based on a lack of information due to limited sources

Manpower planning challenges in business environment

• Anticipating current staffing needs

Challenge: Technology Changes Rapidly

• Rapid technical advances is changing skills and demands like IT, artificial intelligence, and healthcare so it stays competitive

Challenge: Globalization

• Operating on global scare is becoming more necessary so understanding local markets is necessary, but can be challenging

Challenge: Demographic shifts

• Aging population leads to less skills and specialized labor in healthcare and manufacturing, necessitating knowledge transfer strategies.

Challenge: Changing work

• Younger generations changing work preferences towards work-life balance

Challenge: Economic uncertainty

• Companies have trouble planning in economic crisis because of budget cuts and layoff

Challenge: Skills Mismatch

• Skills from employees do not match business with evolved job industry, so they can up skill

Challenge: Regulatory

• Regulatory changes like work and immigration laws that are changing

Global HR Planning

• Provides the link between company and workforce planning and strategy and outsourced people
• Scan environments, determine opportunities, threats, HR skills responsive to both short and long

Going Global

• Shifting economic global landscape.
• HR tasks planning work for world

Key Factors in Globalization

Forecast

• Work Load
• Number of People Needed

Supply

• What countries show available resources

Forecasting in Globalization

HR

• HR should be up-to-date to needs

Human Resource Forecasting Methods

• How human resource predictions can be made

Managerial Judgement

• Includes Top-down and Bottom-up to achieve line by line requirement

Work study

• Estimae workload to meet production levels in staff quantity

Other points on HR forecast methods

• Ratio trend analysis: Estimate ratio of production level and number of employees.
• Econometrics: Predict the HR by statistical/ mathematical (sales, production, workload) variable.
• Delphi technique: Use questionnaires to get opinions of HR needs

Job Analysis and Job Evaluation

• Analyzing the job requirements and different duties that fit individual to meet goals using employee and skill
• Michael J. Jucius indicates job analysis as studying process to provide organizational aspect
• Dale Yoder, states Job Analysis is based on kinds of employees

Job Description and Job Evaluation

• Prepare job description and collect data that has been gathered

Organization

• Outline job duties
• Detail to support

Competitive Business Environment Features

• Competitive markets dynamic with many similar choices that compete and function Business can compete by making a product that is competitive in pricing in advertising and they all should make a strategy by competition analysesed global world
• Globalization shapes industry by market for business sale or products across borders

Globalization Key Points

• World trade and manufacturing increase competition
• Global economics

Other aspects of the business environment

• Technology application: Scientific that changed workforce and industry
• E-commerce: Trade over commerce
• Demographic changes: Population change
  • age literacy affect population

Diversity Factors

• Witnessing demographic changes of Women, minority
• Increase and has a tremendous change

Quality of Work Life

• It aims to increase favorable environment workers in organization for people
  1. Have equal comensation
  2. Have safe and healthy working conditions
  3. Opportunity to have fair control over personal work
  4. Opportunity for job growth

Business Trend in HR in 2021

• More diverse workforce increase the need to have inclusion which plays a role in the positive experience of more personal employees

Telework Trend

• More workforce more work online which reduce absenting and increased productivity

Core Skills

• The need for employees to stay competitive

AI Trend

• Computer science increased the need for computers over hiring new employees

The Goal

• Increase training of the employees and more learning resources via media software