Page 27 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes It is a process that anticipates and maps out the consequences of business strategy on an
organization's human resources. This is reflected in planning of skill and competence needs as
well as total headcounts.
The role of the human resource function is two-fold:
1. To participate in the decision process by providing information and opinion on each
option, including:
(a) redundancy or recruitment costs
(b) consequences on morale
(c) redeployment/outplacement opportunities

(d) availability of skilled staff within the organization
(e) availability of suitable people in the job market
(f) time constraints
(g) development/training needs/schedules
(h) management requirements.

This forms part of the information collected from the organization as a whole.
2. People as numbers: The manpower planning approach which addresses questions such as:
(a) How many staff do we have/need?

(b) How are they distributed?
(c) What is the age profile?
(d) How many will leave in each of the next five years?
(e) How many will be required in one, five, ten years?
3. Forecasting methods: Human resource planners have a choice of techniques open to them,
including: extrapolation (of past trends); projected production/sales; employee analysis;
scenario building.
4. Employee turnover: Turnover covers the whole input-output process from recruitment to
dismissal or retirement and takes the consequences of promotion and transfer into account.

5. 'Soft' planning: HRM implies that planning has to go beyond the 'numbers game' into the
softer areas of employee attitudes, behaviour and commitment. These aspects are critical
to HR development, performance assessment and the management of change.

2.1 Human Resource Planning

Human resource or manpower planning is, "the process by which a management determines
how an organization should move from its current manpower position to its desired manpower
position. Through planning, a management strives to have the right number and the right kinds
of people at the right places, at the right time to do things, which results in both the organization
and individual receiving the maximum long-range benefits.
Stainer has defined human resource or manpower planning as, "Strategy for the acquisition,
utilization, improvement and preservation of an enterprise's human resources. It relates to
establishing job specification or the quantitative requirements of job determining the number
of personnel required and developing sources of manpower".

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