Human Resource Planning and Development

Md. Helal Uddin Business Administration Discipline Khulna University

2010

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Introduction Human resources are inimitable, appropriable, valuable and scarce, and nonsubstitutable asset which can create competitive advantages. People and their skills are the one thing that competitor organizations cannot imitate. So, human resource management is firmly embedded in important business strategic levers to ensure continuing success. Human resource management is a blend of human capital management practices which is required for both corporate practices as well as image of the company. Human resource management is a distinct aspect to personnel management which is committed to gain competitive edge by creating strategic deployment a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques." (Storey, 1995 ) HRM is essentially a business-oriented philosophy for managing people in pursuit of excellence. The human resource is the one of important resources for successful development of every company. Human resource management is a strategic management of an organizations people with the setting of environment. It is considered as the most valuable assets that contribute to the achievement of the organizations goals and objectives. The main or core focus of Human resource management is people. It is related with gathering, maintaining, improving and motivating the people in the right environment. It helps to consider ethical issues for the mutual procedure in case fairness, respect and transparency and such. It ensures a congenial environment to have the right person in the right place. Human resource management considers the strategic fitness about the individuals and teams approach to develop the organizational effectiveness. It helps to ensure the right resources in right places and the issues of leveraging them. It is the strategic integration of business and human resource strategies. It adopts a coherent and strategic policies and practices that ensure the smooth of mutually supporting and integrated operation coherent approaches to the provision of mutually supporting and integrated HR policies and practices. Human resource management is committed to the consistency of the organizational mission, vision, goals, values and objectives. People are treated as capital which can be invested through training and development. It reinforces the performance management by creating and maintaining the corporate culture and best practices.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Key HR Activities Efficient and effective human resource management is a hot topic to all organizations. Attracting, retaining and developing the right people in right places have created huge pressure for the human resource managers. The organization needs to be productive in a manner to increase the performance. Human resources management includes the data tracking systems that might include experiences, capabilities, skills, personal histories and payroll records. Businesses carry out different activities related with performance and compensation. For successful management of companies, managers need not only to organize and to manage basic activities and to ensure the appropriate supporting functions, but they also need to evaluate HRM functions and activities. http://ezinearticles.com/?HR-Activitiesand-Objectives&id=592817 Human resource function includes those tasks and duties performed in both large and small organizations to have coherent and integrated human capital. The Society of Human Resources Management identified six main functions: 1. Human resource planning, recruitment and selection 2. Human resource development & training 3. Compensation and benefits issues of human resource 4. Safety and health issues of human resource 5. Employee and labor relations issues of human resource 6. HR research issues of human resource Human Resource Management Systems encompass: 1. 2. 3. 4. 5. 6. 7. 8. Payroll Work Time Benefits Administration HR management Information system Recruiting Training Performance Record Employee Self-Service

http://en.wikipedia.org/wiki/Human_resource_management_system Among the core human resource activities there are Human resource planning, recruitment and selection, human resource development & training, and compensation and benefits issues of human resource. These activities correlate with the human resource mission, vision, goals and objectives. The foremost objectives of human resource management is an efficient and effective management of personnel responsive to personnel needs .human resource management stimulates the development of people to deployment their best in order to fulfill the needs of an organization. A successful human resource management system including department, Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

team and individual business objectives, personal development plans, performance appraisal, career planning aims at enhancing the personnel's commitment to developing the business long-term and can give challenges which will enhance the staff personal growth.

Ways to Achieve the Objectives of HR Activities through Effective Management Human resource management is the strategic and coherent aspect to the management of an organization's most valued assets contributing to the achievement of the objectives of the business. (Armstrong, 2006:ISBN 0-7494-4631-5. OCLC 62282248. ) An organization requires the utilization of a complex array of resources to grow, survive and achieve the ultimate mission or objectives that informs its existence or creation. Human resource management policies and practices are required to measure and develop the norms and values which create proactive, accountable and committed human capital. An organizations human resource management policies and practices should be consistence with its strategic decision. And the decision is placing turbulence situation in its competitive environment and in the immediate business conditions. Human Resource Management is a well-planned system to have the right people effectively and efficiently. The main objectives are to establish flexible and open management style so that human capital will be motivated, developed and managed. It can provide the best performance in a way that they can and will give of their best to support departments' vision, mission, objectives and values. (Guest, 1987) We know performance expectations = results + actions & behaviors. Objectives, goals and standards identify benchmarks for measuring performance results. From performance objectives, goals and standards, human resource managers can provide specific feedback considering the gap between expected and actual performance. To achieve the most efficient and effective performance, we should ensure the SMART objectives. Specific: Objectives, visions, goals and standards must be shared with the stakeholders and also be acquainted with the activities what are going to be performed. Measurable: If it is possible objectives, visions, goals and standards should be based on not only qualitative measures but also quantitative measures such as percentages, direct counts, and ratios. Attainable: Objectives, visions, goals and standards should be attainable by using existing resources, but may be challenging.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Relevant: Individual objectives, visions, goals and standards should be in alignment with those of the team or groups and the respected departments in case of the organizations mission. Timely: outcomes or the goals should be achieved within a time period that supports the functional and organizational needs. The performance standards should be outlined as per the following terms: Quantity: It determines how much job must be accomplished within a specific period of time. For example: 30 entries per hour. Quality: It explains how well the job should be completed. It focuses on the issues of accuracy, precision, appearance, or effectiveness. For example: 98% of the jobs submitted are accepted without audit. Timeliness: It provides the answers to the questions. The questions are like by when, how soon, or within what period the job will be done. For example: all supply orders done within seven working days of receipt. Effective Use of Resources: It is used when performance can be measured in terms of utilization of the existing resources. It includes how much money will be saved or how much waste will be minimized or such as. For example: the new credit programs will be accomplished with only internal human forces. Effects of Effort: It introduces the ultimate impact to be got. It includes the expanded statements of effectiveness and efficiency. For example: maintain specific inventory levels in storerooms so that productions are maintained just- in- time. Manner of Performance: It introduces the conditions in which each and every individual behavior has an impact or effect on performance. For example: It may have an congenial cooperative environment that helps to meet the consistency of the goals and objectives. Method of Performing Assignments: It introduces the specific requirements. It is used when only the organization-vision or mission oriented policies, procedure,practices or rules for doing the job is acceptable. For example: the recruitment will be accomplished as per the company standards describing the performing procedures. http://hrweb.berkeley.edu/guide/performance.htm

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

HR Models Achieving a strategic performance requires development of a strategy that supports the corporate business objectives, vision, and goals. It needs to align and prioritize each of the various activities to support and help accomplish those objectives, vision, and goals. The 10 basic most commonly used human resources strategies that draw the attentions of the different models are: 1. Personnel strategies 2. Generalist strategies 3. Business partner strategies 4. Call centre strategies 5. Outsourced strategies 6. Centers of excellence strategies 7. Self-service strategies 8. Fact-based decision-making strategies 9. e-HR strategies 10. Performance culture strategies 11. Strategy models defined strategies http://www.workinfo.com/free/downloads/138.htm HRM models give the precursors of the human resource management in preplanned ways. It smoothes the activities and function with due challenges.

Guests Model of HRM Guests Model of human resources management previews a core set of integrated and coherent human resources management practices that can achieve superior individual and organizational performance. It creates a distinction between human resources management and personnel management. David Guest's (1989, 1997) model of Human resources management has 6 dimensions of analysis:

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

The model is based on the assumption that human resource management is distinctively different from traditional personnel management by considering the perspective of the strategic management issues .it is like Harvard Map in terms of idealism. It is the fundamental elements of the human resource management approach. For example: If there is a commitment, there is a direct relationship with valued business effects and impacts. However, Guest model has prescribed the concept of commitment is 'messy'. The relationship between commitment and high performance is more difficult to establish and measure. It considers another aspects that is a 'flow' approach, viewing strategy underpinning practice, having to a different of expected outcomes. For example: from the perspective of its American predecessors, this UK model is unitary and lukewarm on the value of trade unions. The relationship is considered as one link between the individual and the organization. http://www.hrmguide.co.uk/introduction_to_hrm/guest-hrm.htm

Warwick Model of HRM

Warwick Model of human resource management expands the views of the Harvard framework. It has map that creates connection between the outer and inner contexts. It also explores how human resource management adapts to changes in this context.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

HR Planning and Development Methods Human Resource Management plan should be consistent with the functional, departmental or the organizational structure, vision, mission, values and program objectives for the period when it is going to take. Human Resource Planning is known as manpower planning in the past. Human Resource Planning is the process of getting the right number of qualified people into the right job at the right time. Human resource planning is the system of balancing between the supply of people and the demand of people. It considers internal and external Supply and demands also. The internal planning considers the existing employees and the external planning considers those to be hired or searched for in respects with the job openings and the consistency of the organizations expected time frame. Forecasting and planning the human resource methods needs the analysis of the following: 1. Judgmental methods: Judgmental methods consider the estimate of the management. For example: Delphi technique is taken for managerial decision making process.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

2. Statistical and modeling techniques: Statistical and modeling techniques is applied for the analysis of historical data and hereby to forecast the future needs and demand. 3. Benchmarking: It is to cautiously determine internal practice and procedures. Then it is done through evaluating them against hoev the other organizations do that. 4. Determining the additional need: then it is necessary to apply both skill inventory and management inventory. It is intended to determine all alternative and available data regarding the existing staffs. (Ivancwvich, 1999) Human resource planning considers two stages. These are demand forecasting and supply forecasting. Human resource development involves the arena of training and development, career development, and organization development. It is related with a field human resource management which considers human resource research and information systems, union relations, employee cooperation, compensation package, selection and staffing, performance management systems, human resource planning, and job des human resource. (McLagan, 1989 : 49-59) The goal of human resource development is to increase the performance of the organizations by increasing the performance of the individuals who are working in the organizations. Human resource development helps to improve knowledge and skills the human capital. It ensures to have smooth actions and standards, motivation and work environment. Human resource development may provide the right tools that are required to maintain and drive the organizations. Each and every department like research & development, management, production, marketing, sales may be more efficient and effective. It is possible when the people are sufficiently trained, informed motivated and managed. http://alumnus.caltech.edu/~rouda/T1_HRD.html Departmental human resource drafts include all planning and development procedures carefully with the consistent functions.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Figure: HR planning and development

Effectiveness of HR Planning and Development to Meet Organizational Goals Human resource management is drawn increasingly into new strategic and operational initiatives proceeding under a variety of labels, e.g., downsizing, reinvention and business process improvement. Organizations and companies succeed, or fail, based on the quality and effectiveness of their employees.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Figure: HRM effectiveness (Gibb, 2000: 22, 58-75) The human resource alternatives measurement gives the alternatives in terms of efficiency, best practice, causal chain and scorecard.

Table: HR measurement alternatives (Boudreau & Ramstad, 2003)

The effectiveness of the planning and development is critical issues in Human and Resource Management. It is totally dependent factors of internal and external factors.

Ways of HR Performance Monitoring Performance Monitoring is a process which is intended to improve the organizational, team and individual performance and highly consistent with the goals and objectives of them. Management of the human resource function should improve, attract, and manage a set of key performance. The overall organizational sound practices apply appropriate reporting mechanisms for internal and external purposes. It helps to ensure the utilization of the information in order to do more effective and efficient management of human forces. The process of performance monitoring reviews how the job gets done. It involves four critical components. The critical components are based on the

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

focus on what is important to change or what to develop. It also considers measurement to examine whether and how much improvement is being maintained. It provides feedback so that achievers will be informed whether and how much progress is being maintained. It also offers reinforcement so that everyone determines the achievements as they are cherishing. The main indicators of effective and efficient performance monitoring involve much more thing. For example: it involves or considers transparency of all measurement, availability of current performance data, periodic achievements records, tracking system and supporting of team managers. Human resources leaders are assumed to apply effective internal controls. They also ensure to flow the available integrated performance information. It is intended to take strategic decisions as well as proper monitoring. http://en.allexperts.com/q/HiringEmployees-2132/2009/9/Hr-planning-development.htm

Human resource strategy is consistent with the challenge of balancing the five Ps. They are the philosophy, policies, programs, practices and processes. it is related in a way that can trigger and reinforce the various human resources roles and behaviors. It determines the appropriateness for each of them in a competitive strategy. The diagnosis system of the performance leads to the monitoring of human resource management that explains the things in the following manner.

Source: Scott Snell, Cornel University

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Ways to Improve HR Performance Human resources performance does not happen in a vacuum. It considers a systems contingency in which it is expected to perform in the line of parallelism. It is very simple to understand that if we put good performers in bad systems, the systems will win every time. Behaviors that triggers to performance at job are a function of the interaction of the human resources and the job environment. Here the human resources are person factors and the job environments are all the organizational systems factors. The following issues are most important in developing the performance in human resource related planning as well as development. 1. Develop a framework of human resource performance improvement methodology. 2. Indiscriminate use all the available tools. 3. Considers all perspectives. 4. Make relationship with experts. 5. Consider the thing which is not also expected. 6. Dont create a dual or turbulence aspects. 7. Take a systems approach. (http://www.ispi.org/pdf/suggestedReading/Ripley.pdf) Human resource Scorecard Metrics and BSC Designer are the latest unique tools and technologies for HR measurement. These tools are efficient and effective in versatile applications. The HR Scorecard Metrics Human resource scorecard metrics leads to improve the activities and performance of human resource department through gaining potential advantages. It improves productivity and performance through balanced and proactive approach. It introduces the effective and efficient measures to reduces cost and evaluate the whole systems. It reflects the transparency to measure human resource cycle in the long run. It helps to attain the organizational goals and objectives to smooth strategic planning. The Balanced Scorecard Designer The Balanced Scorecard Designer is employed to transform the organizations strategic issues into action plan by taking the internal and external goals and objectives into consideration. The four key aspects are the business process perspective, the learning & growth perspective, the customer perspective and the financial perspective. They aid to gain huge benefits. It ensures more flexibility of human resources department, easy determination of the sales volumes and of total returns of the organization. It also helps to develop the business identity, pragmatic approach, cost effectiveness, transparency of the human resource department. It provides the integrated scope of a business and its strategic planning with lifelong perspective.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Both human resource scorecard metrics and balanced scorecard designer are the best methods to develop human resource performance radically and achieve organizational goals successfully. http://www.hr-scorecard-metrics.com/top-two-methods-to-improve-hrperformance.htm The diagnostic tools called the Behavior Engineering Model (BEM) by Tom Gilbert suggest the following six areas: 1. 2. 3. 4. 5. 6. Information arena Resources arena Incentives arena Skills and knowledge arena Capacity arena Motivation arena

From one to three arena reviews the jobs environment and that is known as system factors. So, the human resource managers take this system factors into consideration first. From three to six arena is related with persons factors. So, the human resource managers need to ensure there are no problems. (Gilbert, 1996) The optimistic model suggests that the performance is consistent with the HR practices in a way that is the relationship of commitment from the both parties and interaction therefore. .

Figure: Optimistic Model (Source: Butler et al, 2004) The exploitation model suggests that the performance is consistent with the HR practices in a way that is the job strain through the instruction of job strain.

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

Figure: Exploitation Model (Source: Butler et al, 2004)

Figure: comprehensive analysis for improvement (OBrian, 1997) Effective and efficient monitoring is dependent function of the right measurement related to performance in a specific time period at that place. Human Resource Management

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

performance measurement must be consistent with all perspectives of human resource management. Management information will not only be quantifiable but also qualifiable. The information must be objective and specific.

Conclusion HRM is one of the most sensitive and important fields of action for the future success. Human resource management is the most priority issues in organization because of the changing demographic patterns. Human resources of an organization create a potential synergy for the competitiveness. It is an issue for the sustainable or continuous improvement when properly deployed, maintained and utilized. It is clear that certain human resources practices drive profits and improve a companys financial position. Human resources are a portfolio of policies, process, and prescriptions of human capital management relationship. (Collin, 1999). After all the Human Resource planning and development should be strategic focus. All the internal and external factors associated it is a dominant role for the effectiveness of the planning and development. Culture and other challenging issues place its dynamic issues.

Reference 1) Storey, J. (1995) (ed.) Human Resource Management: A Critical Text, London: Rout ledge. 2) Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Cogan. 3) Guest, D (1987). Human resource management and industrial relations. Journal of management Studies. 4) Gibb, S. (2000).Evaluating HRM effectiveness: the stereotype connection. Employee Relations. 5) Collin, A. (1999). Human Resource Management in Context in Beardwell, I. and Holden, L. (eds.) Human Resource Management: A Contemporary Perspective, London: Pitman

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.

6) OBrian, James. (1997). Introduction to Information Systems, Irwin Book Team, 8th edition. 7) Gilbert,(1996). T. F. Human Competence: Engineering Worthy Performance (Tribute Edition). Washington, DC: The International Society for Performance Improvement. 8) Boudreau, J.W., & Ramstad P.M. (2003). Strategic HRM Measurement in the 21st Century: From Justifying HR to Strategic Talent Leadership. In HRM in the 21st Century. New York : John Wiley

9) McLagan, Patricia A. (1989), "Models for HRD Practice." Training and Development Journal, September. 10) Ivancwvich, John, (1999). Human Resource Management, Irwin McGraw-Hill, 7th edition. . 11) http://www.hr-scorecard-metrics.com/top-two-methods-toimprove-hrperformance.htm(03.09.2010) 12) http://www.ispi.org/pdf/suggestedReading/Ripley.pdf (05.09.2010) 13) http://en.allexperts.com/q/Hiring-Employees-2132/2009/9/Hrplanningdevelopment.htm(04.09.2010) 14) http://alumnus.caltech.edu/~rouda/T1_HRD.html(05.09.2010) 15) http://www.hrmguide.co.uk/introduction_to_hrm/guest-hrm.htm(02.09.2010) 16) http://www.workinfo.com/free/downloads/138.htm(01.09.2010) 17 http://hrweb.berkeley.edu/guide/performance.htm(06.09.2010) 18 http://en.wikipedia.org/wiki/Human_resource_management_system(03.09.2010 19) http://ezinearticles.com/?HR-Activities-and-Objectives&id=592817(07.09.2010)

Md. Helal Uddin, Business Administration Discipline, Khulna University. helal_bba_ku@yahoo.com.