Page 31 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes (ii) There must be acceptance and backing from top management for the planning.
(iii) There must be knowledge of the available resources (i.e.) financial, physical and
human (management and technical).

Once in action, the HR plans become corporate plans. Having been made and concurred
with top management, the plans become a part of the company's long-range plan. Failure
to achieve the HR plans due to cost, or lack of knowledge, may be a serious constraint on
the long-range plan.
7. Utilization: In this final stage of HRP process, success is measured in terms of achievement
trend, both quantitatively and qualitatively. While quantitative achievement is visible
from productivity trend, manpower cost, etc., qualitative achievement is a subjective
appraisal on achievement of organisational objectives. Reflection of qualitative
achievement can also be studied in the context of prevailing industrial relations, level of
motivation and morale, grievance pattern, etc.

2.3.2 Strategic Human Resource Planning

Human resources planning is defined as the process for identifying an organisation's current
and future human resource requirements, developing and implementing plans to meet these
requirements and monitoring their overall effectiveness.
Human resources planning should serve as a link between human resources management and
the overall strategic plan of an organization. Aging worker populations in most western countries
and growing demands for qualified workers in developing economies have underscored the
importance of effective Human Resources Planning.
1. Employment: HRP is affected by the employment situation in the country i.e. in countries
where there is greater unemployment; there may be more pressure on the company, from
government to appoint more people. Similarly some company may force shortage of
skilled labour and they may have to appoint people from other countries.

2. Technical changes in the society: Technology changes at a very fast speed and new people
having the required knowledge are required for the company. In some cases, company
may retain existing employees and teach them the new technology and in some cases, the
company has to remove existing people and appoint new.

3. Organizational changes: Changes take place within the organization from time to time
i.e. the company diversify into new products or close down business in some areas, etc. in
such cases the HRP process i.e. appointing or removing people will change according to
situation.

Implementation Stages

The following implementation stages are suggested for mid to large organizations implementing
competencies in support of Strategic Human Resources Planning.
Short-term Human Resource Planning

Stage 1
1. Establish a Competency Architecture and Competency Dictionary that will support
Strategic Human Resource Planning.

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