The key issue of HR planning is for organisations to put in place a comprehensive and ongoing analysis of their human resource requirements. In summary, HR planning should: – Contribute to the organisations overall business planning, and convert its strategic and business decisions into HR policies and programmes. Planning in general involves making decisions in advance.
In the case of HRM, these decisions will include assessing the demand for human resources in terms of the number and type of people required, and matching it with the available supply.The main elements of systematic HR planning include: 1 Defining organisational objectives 2 Determining the principles and elements of the planning process 3 Assessing future demand for human resources 4 Assessing current human resources and projecting availability 5 Producing the detailed plan 6 Monitoring the implementation of the planning process HR planners should typically consider the mission and the strategic objectives of the organisation, and examine the aspects of the external environment that may have an impact on their plans, for example, government legislation or new technology. Tyson and York (2000), refer to this process as a PEST trend analysis. It should cover: – Political factors – Economic factors – Social factors – Technological factors Job AnalysisAdditionally, there are issues of supply and demand to consider, which will include determining the number and type of people required and the state of the labour market. This process involves carrying out an analysis of the job requirements and specifying the competencies the individuals must have to do the job effectively. This is essentially the information-gathering process called job analysis. The information is obtained through various means, including direct observation, interviews and questionnaires within the organisation. Environmental factors external to the organisation must also be considered.
The job analysis process provides the basis for many HR processes, including the preparation of job descriptions and person specifications used in recruitment and selection processes. Many of the other downstream HR activities also make use of the data gathered. Elements of job analysis: Factors such as age, appearance and health must be considered in light of the Human Rights Act. Information Systems The development of information technology has provided HR management with a new and valuable tool.The introduction of computer-based human resource information systems has had an important impact on HR practice by enabling the creation of databases that provide access to such employment information as personal details, current position data, employment history, qualifications and training, leave, remuneration and benefits, and career development plans. Much of this information, including job analysis data, has an important role in developing a planning database.
The development of information technology is constantly changing the ways in which HRM is practiced as new applications are introduced and HR specialists recognise the contribution that an effective information system can provide to HR practice. Recruitment and selection The process of creating a pool of qualified job applicants The recruitment phase flows from the HR plan and immediately precedes selection.