10. HR Planning & Performance (1).pdf - The Consequenceof Human ResourcePlanning on Organizational Performance:An Ephemeral Review Hassan Elsan

10. HR Planning & Performance (1).pdf - The Consequenceof...

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Unformatted text preview: The Consequenceof Human ResourcePlanning on Organizational Performance:An Ephemeral Review Hassan Elsan Mansaray Lecturer ² Department of Business Administration and Entrepreneurship Development, Institute of Public Administration and Management (IPAM) University of Sierra Leone, Freetown, Sierra Leone Email: [email protected] Abstract : The drive for human resource planning in every single organization is to necessitate perfect use of human resource currently employed as well as, making provision for the future human resource needs regarding skills, quantities and ages. The purpose of this review is to ascertain the practices of HRP that can increase organizational performance. Consequently, the review discovered that HR planning ensures that organizations at all times have the right number of people, with the correct level of skills to do the right activities at the right time for the achievement of organizational objectives. Besides, human resource planning determines the right numerical strength of individuals that own these skills that are needed by organisations to meet the present and future business requirements. Based on this reality, organisations nowadays need to have employees that possess the right skills that could be place in the right places and at the right time they would be needed in organizations. In order to fulfill this condition, the study found out that HR planning ought to be part of any organization’s objective. Incredibly, many organizations have the tendency of overlooking the side of HR planning and more or less, organizations are even not totally conscious of it. Hence, it is essential to recognize that because of the high knowledge requirements in the global market, most organizations are determine to stimulate performance, which can engender surplus profit through the application of HRP philosophy. Keywords : Human Resource Planning (HRP); Manpower Planning; Human Resource; Management (HRM); organizational performance. I. Introduction Organizations these days are strategising to have competitive gain over their competitors in the existing global market. Owing to the high knowledge requirements, most organizations are determine to engender the performance that can generate additional profit. In order to achieve such goal, employees need to perform well as well as improve their talent, (Al-Qudah et al 2014). In view of that, it is important for organizations to determine how many people they need and what category of people they ought to have in order to meet their present and future business needs. When, an organization assumes this role it means it is performing the task of human resource planning or workforce planning as it is called, in the public sector precisely (Armstrong 2009). As pointed out by Lunenburg, (2012) that organizations are designed by people and those related people are the most vital resource in the organization. Therefore, there is no organization that can realize its objectives without people. Likewise, there must be a suitable deployment of human resource in organizations in order to attain high-performance standard. As all RUJDQL]DWLRQV· REMHFWLYHV DUH DFKLHYHG WKURXJK DFWXDO KXPDQ UHVRXUFH SODQQLQJ ,Q WKLV FDVH effective human resource planning should be an instrument for constructing long-term planning in order to meet the workforce challenges (Choudhury, 2007). Accordingly, human resource management has the prospect to empower organizations to continue to survive in the existing competition and make profit (Werner, Jackson & Schuler, 2012). ____________________________________________________ DOI: - 50 - Britain International of Humanties and Social Sciences (BIoHS) Journal ISSN: 2685-3868 (Online), 2685-1989 (Print) Vol. 1, No. 2, October 2019, Page: 50-61 What is today commonly known as human resource planning was formally called manpower planning in the late 1970s. The practice of manpower planning was fitting during the period of personnel management. Nevertheless, in the early 1980s, the term human resource planning took the place of manpower planning and was accepted in the human resource management practices because of the way it view human resource as valuable assets (Akhigbe 2013). As, Ayer & Reeves, (1995), Wright & McMahan, (2011) stated that organizations need to know their requirement in terms of human resource so as to meet their present and future business necessities in line with the competition in the market. According to them, this is where HR planning comes into play in deciding the right number of individuals that have the right skills, and placed in the right places at the right time they are needed in the organization. Similarly Parker and Caine (1996) buttress the importance for organizations to have the right number of manpower in order to circumvent the unwelcomed situation such as the issue of scarcity and surplus manpower. Moreover, HR planning should be part of any organization since, it guarantees the organization to be successful in accomplishing all its objectives ,PSRUWDQWO\ DQ RUJDQL]DWLRQ·V DFKLHYHPHQWOLHVWRDODUJHH[WHQWRQLWVHPSOR\HHV·VNLOOFUHDWLYLW\DQGFRPPLWPHQW$PD]LQJO\D lot of organizations have the tendency of overlooking the aspect of HR planning and some organizations are even not wholly aware of it. However, organizations that usually overlook the side of planning, have few chances to survive in the future; needless to say that a proper HR planning can help in dealing with several issues in a real way (Majumder, 2014) . Based on this believe, the aspect of human resource planning was embraced by organizations. In the past, there was no proper method of managing people within organizations, even though top managers were following the human resource management practices. However, they quickly observed that proficiency on work has increased and surely there is need to develop some methods and practices that can proliferate the organizational performance. Thus, bit by bit the entire design of human resource management was prepared, which is about the staffing needs and, its demand and supply (Afzal et al (2013). According to Mills (2013)) and Ulferts et al (2009), Human resource planning includes forecasting the organization's future human resource needs as well as planning to meet those needs. They further pointed out that human resource planning does not only requires the establishment of objectives, but also the development and implementation of certain programs such as: staffing, appraising, compensating, and training that will ensure that people are available with the appropriate characteristics and skills when and where the organization needs them. Human resource planning also consist of developing and implementing programs to improve employee performance or to increase employee satisfaction and involvement in order to boost organizational performance, along with quality, and innovation. Therefore, genuine human resource planning is a tool which is going to build an enduring aptitude that will meet those workforce challenges (Choudhury, 2007). Santos et al (2009) made mentioned that the reason for HRP is to predict the organizational needs for employees, taking into consideration the inside and outside supply of labour to meet staffing necessities. That is, to identify the gap between what is needed and what is available. Bello et al (2017) concluded that HRP do not only sort out HPSOR\HHV· VXSSO\ DQG GHPDQG UHTXLUHPHQWV EXW DV ZHOO DLGV DV D VWDLG HOHPHQW RI DQ RUJDQL]DWLRQ·V¶LQWHJUDWHGVWUDWHJ\· Aslam et al (2013) further observed that Human resource planning is usually describe as WKHZD\RISLQSRLQWLQJWKHDPRXQWRIHPSOR\HHVDQHVWDEOLVKPHQWQHHGV¶LQWHUPVRIKLJKTXDOLW\ DQG TXDQWLW\ KHQFH LW LV VHHQ DV DQ RQJRLQJ SURFHVV RI UHJXODU DQG VWUXFWXUHG SODQQLQJ· 7hey further mentioned that the foremost resolution for human resource planning is to be certain that employees have the finest and close relations with their jobs. Moreover, the HR planning ____________________________________________________ DOI: - 51 - Britain International of Humanties and Social Sciences (BIoHS) Journal ISSN: 2685-3868 (Online), 2685-1989 (Print) Vol. 1, No. 2, October 2019, Page: 50-61 progression endorses that employees are in right quantity as necessary that is; there should be no excess or scarcity of manpower. They further stated three central purposes of human resource SODQQLQJZKLFKFRPSULVHRI¶L ODERUIRUHFDVWLL PDQDJLQJGHPDQGIRUHPSOR\HHVDQGDYDLODEOH supply in market and iii) keep a EDODQFHEHWZHHQODERUVXSSO\DQGGHPDQGSUHGLFWLRQV· As, human resource planning comprises the prediction of what human resource the organization might need now as well as in the future and how to plan in order to meet those needs. The purpose of planning is to improve organizational performance. Thus, according to Walker   SHUIRUPDQFH LV WR DFKLHYH D FRQYLQFHG IODZOHVV ¶WDVNV RU REMHFWLYHV· 0RUHRYHU :DONHU ORRNHG DW SHUIRUPDQFH DV D FRQQHFWLRQ RI VKDUHG ¶HIIRUW DQG DELOLWLHV· 7KHUHIRUH LQGXVWULRXV individuals with required skills, knowledge are probably to triumph much on their jobs. He further maintained that if, performance is a function of effort and competence, and then human resource managers should therefore recruit employees with the right skills and knowledge and; placed them in their right positions. In addition, Campbell (1999) has as well, describes performance as the ¶EHKDYLRURUDFWLRQDSSURSULDWHWRWKHDFKLHYHPHQWRIDQRUJDQL]DWLRQ·VJRDOVWKDWFDQEHVFDOHG WKDWLVPHDVXUHG·&DQLD  UHVROYHGWKDW-RESHUIRUPDQFHLV¶ZKDWRQH is paid to do, or what RQHVKRXOGEHSDLGWRGR· Besides, researchers typically use performance to mention the array of dimensions of transactional efficiency and input and output efficiency (Stannack, 1996). Daft (2000) expressed that performance is similar to efficiency and effectiveness for a precise program or activity. Draft furthermore mentions that organizational performance is an effective and efficient way for RUJDQL]DWLRQ¶VDFWLYLW\WRDWWDLQREMHFWLYHVWKURXJKWKHXVHRIUHVRXUFHV,QDGGLWLRn, efficiency in SURGXFWLRQFDQEHPHDVXUHGE\WKHIROORZLQJIDFWRUV¶L LQFUHDVHLQWKHVL]HRIWKHSURGXFWLRQLL  lesser time in the production of a unit of output iii) lesser wastage in resources including defective output iv) the use of same or less fDFWRULQSXWVSHUPRUHRXWSXWWKDQEHIRUH·7KLVSURILFLHQF\LQ production can only be achieved through effective HR planning. II. Review of Related Literature Planning makes available a path, decreases doubt and reduces waste. There is no activity can be properly done without planning. Human resource planning has to do with the decisive human resource requirements, selection and socialization. Human resource planning is also called manpower planning, employment plans, and personnel plan (Bello et al). As pointed out by Terry and Michael (2010), human resource planning contains the approximation of how many qualified people are needed to carry out the apportioned activities, and whatsoever, must be done to make sure that personnel supply matches personnel demand at the suitable point yet to come. Besides, 6WDLQHU   GHVFULEHV +XPDQ UHVRXUFH SODQQLQJ DV D WDFWLF IRU WKH ¶DFTXLVLWLRQ XWLOL]DWLRQ improvement, aQGSUHVHUYDWLRQRIDQHQWHUSULVH·VKXPDQUHVRXUFHV,WUHODWHVWRHVWDEOLVKLQJMRE specifications or the quantitative requirement of jobs determining the number of personnel UHTXLUHGDQGGHYHORSLQJVRXUFHRIPDQSRZHU· 2.1 Objectives of Human Resourcelanning P According to Ubeku, 1983:63) the objectives of human resource planning in all organization are to make sure the best use of human resources presently employed and to also provide the future human resources need as regards to skills, numbers and ages. This involves making sure that the organization at all times has the appropriate number of personnel, with the right skills doing the right jobs at specific times in order to achieve the organizational objectives. Nevertheless, the dominant objective of human resource planning in organization is to create a VWUDWHJ\ RI KXPDQ UHVRXUFHV GHYHORSPHQW LQ OLQH ZLWK WKH RUJDQL]DWLRQ·V H[WHQVLYH DLPV RI ____________________________________________________ DOI: - 52 - Britain International of Humanties and Social Sciences (BIoHS) Journal ISSN: 2685-3868 (Online), 2685-1989 (Print) Vol. 1, No. 2, October 2019, Page: 50-61 economic development. Decenzo & Robbins, (2019) emphasized that human resource planning involves putting the right number of people along with the right kind of people at the right place, the right time, as well as doing the right things that are on the same wave length for the achievement of the organizational goals. To achieve the goals of the organisation the following process should be exploited: I. to examine the current manpower portfolio. II. to Make future manpower predictions. III. Also to develop employment programmes as well as, IV. designing training programmes. It can also, embrace analysis on supply, demand, surplus, shortages and utilization of human resources. HRP concepts are also concerned with the development of serious human competence skills and attitude needed for the development of an organization steered by the corporate policies and objectives. In addition, Santos et al (2009) and Armstrong (2009) pointed out that the aim of HRP is to estimate organizational desires for employees, taking note of the internal and external supply of labour in order to meet the staffing requirements. That is, to make sure that organization has the number of people with the right skills needed to meet forecast needs. Bello et al (2017) further stated that HRP is not only to address employee supply-demand desires, but, it is as well a serious factor of an organizaWLRQ·VLQFRUSRUDWHGVWUDWHJ\$VLWLQFOXGHVJHWWLQJWRJHWKHUGDWDWKDWFDQEH utilized to appraise the usefulness of the current programs and update planners when reviews in their forecasts and programmes are required. Philosophies of human resource planning are of SULPDU\VWDQGLQJ¶DVZHPRYHWKURXJKWKHVWFHQWXU\ZKHUHDJOREDOL]HGZRUNIRUFHLVWKHEDVLV RIFRPSHWLWLRQ·7KHUHIRUHWKHWULXPSKRIDEXVLQHVVRUDQRUJDQL]DWLRQLVXQVZHUYLQJO\FRQQHFWHG to the performance of those who work for that business. Under triumph can be as a consequence of workplace failure since; hiring the incorrect people or failing to anticipate a rise and fall in hiring needs can be costly. It is therefore, important to put conscious efforts into human resource planning (Biles & Holmberg, 2010). In addition, Walker (1990) earlier on mentioned that the usefulness of HR planning rest on the viewpoint within which it is applied just like most organizational practices. Therefore, HR planners need to have clear and precise objectives in mind in order to better execute HR planning processes. By the same token, Ulrich (1987) stated that HR planning is accepted as a basis for the development of organizational functions that is based on missions and objectives of the business. With the support of planning, areas that need improved functioning are identified in order to make those areas develop and be successful. In this regard, lots of HR planning approaches have been advanced and organizations have also fashioned their own methodologies that are similar to those GHILQHG¶LQWKHOLWHUDWXUHOLNHVHWWLQJXSIRUPDOREMHFWLYHVLGHQWLI\LQJDSSURSULDWHRUJDQL]DWLRQDO VWUDWHJLHVDQGVHDUFKLQJIRUDQ\LQQRYDWLYH+5DSSOLFDWLRQV·&RQVHTXHQWO\RUJDQLVDWLRQVVKRXOG take cognizance when developing their own HRP objectives. That is, they should tailor their objectives based on what is to be achieved with regard to organizational objectives so as to meet the specific requirements regarding the quantity and quality of employees they may need now and LQ WKH IXWXUH &KDQ  %XUJHVV   )RU LQVWDQFH WKH PRVW LPSRUWDQW WUDQVIRUPDWLRQ ¶LQ RUJDQLVDWLRQ·VEXVLQHVVGLUHFWLRQVPD\UHTXLUHDQRWKHUVKLIWLQWKHQDWXUHRIZRUNSHUIRUPHGDQG LQ HPSOR\PHQW DUUDQJHPHQWV· ,Q WKH VDPH ZD\ WKH WDFWLFDO FKRLFes of an organisation will be ORRNHGDWWRZDONDURXQGZD\V¶WRILOODQRSHQSRVLWLRQHLWKHUIURPLWVFXUUHQWKXPDQUHVRXUFHVRU IURPWKRVHDYDLODEOHLQWKHH[WHUQDOODERXUPDUNHW· 0LQHU &UDQH  In line with the above perspectives, Reilly (1999) concluded that there are a number of causes why organizations may decide to engross in some forms of human resource planning. The following are the three reasons based on a research conducted by the Institute for Employment Studies: ____________________________________________________ DOI: - 53 - Britain International of Humanties and Social Sciences (BIoHS) Journal ISSN: 2685-3868 (Online), 2685-1989 (Print) Vol. 1, No. 2, October 2019, Page: 50-61 1. Planning for substantive reasons, that is, to have a practical effect by optimizing the use of UHVRXUFHVDQGRUPDNLQJWKHPPRUHÁH[LEOHDFTXLULQJDQGQXUWXULQJVNLOOVWKDWWDNHWLPHWR develop, identifying potential problems and minimizing the chances of making a bad decision. 2. 3ODQQLQJEHFDXVHRIWKHSURFHVVEHQHÀWVZKLFKLQYROYHVXQGHUVWDQGLQJWKHSUHVHQWLQRUGHUWR confront the future, challenging assumptions and liberating thinking, making explicit decisions that can later be challenged, standing back and providing an overview and ensuring that longterm thinking is not driven out by short-term focus. 3. Planning for organizational reasons, which involves communicating plans so as to obtain VXSSRUWDGKHUHQFH WR WKHP OLQNLQJ +5 SODQV WR EXVLQHVV SODQV VR DV WR LQÁXHQFH WKHP (re)gaining corporate control over operating units, and coordinating and integrating organizational decision making and actions. By and large, human resource planning according to Cole (2002 cited in Akhigbe 2013:390) LVWKHFRQFHSWRI¶KDYLQJWKHULJKWQXPEHUDQGNLQGVRISHRSOHDWWKHULJKWSODFHVDWWKHULJKW WLPHV·+53ODQQLQJZill be taken to mean any rational and planned approach for ensuring: The recruitment of sufficient and suitable staff. Their retention in the organization The optimum utilization of staff The improvement of staff performance. Job design that lead to the development of various working patterns is to enhance staff performance, such as concepts like Flexible working hours (flexitime i.e. flexibility of time), Work Sharing/job sharing, Home work (doing organization work at home), Telecommuting, reduced working hours, reshaping of work, changing work life (improving the quality-of -work-life), Compressed Workweek/Compressed hours, Annual hours contracts, Zero hours contracts, Shorter workweek, Dejobbing, Job Engineering, Job Reassignment, Self-Managing Work Team (Autonomous Work Group), High Performance Work Design, Cross training, career management, individual career planning, career and retirement. The disengagement of staff, as necessary. Consequently, Akhigbe (2013) has observed four types of staff that are significant in KXPDQUHVRXUFHSODQQLQJVXFKDV¶H[LVWLQJVWDIIQHZUHFUXLWVSRWHQWLDOVWDIIDQGOHDYHUV· 2.2 The importance of human resource planning in organizations +53SOD\VDYHU\LPSRUWDQWUROHLQXQGHUVWDQGLQJWKHRUJDQL]DWLRQ·VJRDOVVXFKDV¶KDYLQJ WKHULJKWWDOHQWZLWKWKHULJKWVNLOOVDWWKHULJKWWLPHDQGIRUWKHULJKWFRVW·7KHVLJQLILFDQFHRI HRP depend on its prospective to pinpoint organizational needs for skills and competencies for present and future programs equally (Randhawa, 2007). Another important aspect of HRP is that it can use a number of approaches to resolve current and expected workforce needs such as demographic analysis and retirement forecasts (Meisinger, 2007). More importantly, organisations should need HRP in order to have the right systems in place th...
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