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Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Words of Wisdom
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Most chief executives acknowledge that there is a linkbetween HR practices and business performance.’‘Retaining and motivating “knowledge workers” hasbecome the primary aim . . . When they leave, thebusiness loses an essential element of intellectualcapital.’‘Sainsbury’s has warned 100 store managers that theirperformance is unacceptable. It is understood to haveemployed headhuntersto
recruit replacements.’
Human Resource Planning
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Human resource planning is theprocess of systematicallyforecasting the future demand andsupply for employees and thedeployment of their skills within thestrategic objectives of theorganization.
Human Resource Planning
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Is there a link between good HRM andbusiness performance?
In the 2000s, there is growing evidence thatprogressive HR practices can enhance acompany’s sustainability and profitability if thereis integration with business purpose. There ishowever also evidence of a failure by manysenior managers to recognize this.
Human Resource Planning
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Manpower Planning
Manpower plans were designed to to fit in with theoverall business strategy and plan.It represents a response by the personnel function toensure that the necessary supply of people isforthcoming to allow measurable financial, marketingand production targets to be met.Manpower planning was defined by the Department ofEmployment in 1974 as ‘strategy for the acquisition,utilisation, improvement and preservation of anorganisation’s human resources.’
The genesis of HR Planning
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Manpower Planning
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
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Manpower planning was particularly suitable for theapplication of statistical techniques.
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Emphasizing statistical models of the supply anddemand of manpower at the expense of the reality ofmanaging and interacting with people (therationalized approach) was greeted with suspicion.
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Manpower planning, which focused on the plan assolution, soon gained a poor reputation.
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Thediagnostic approachto manpower planningrecognised planning as a process of learning aboutHR problems, and focused on the behaviour of peopleand the imperfections of manpower plans.
Manpower Planning
 
2
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
The Diagnostic Approach
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
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The rationalized approach focuses on problems that can beeasily defined or that match ready-prepared solutions.
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The diagnostic approach uses quantitativeplanningtechniquesin combination with qualitative techniques toidentify and understand the causes of manpowerproblems.
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By recognising the more complex factors, manpowerplanning becomes integrated into the whole process ofmanagement of the employment relationship.
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In the 2000s, losing staff is seen as also a loss ofintellectual capital. The replacement of ‘knowledgeworkers’ can be expensive and time-consuming. Inresponse, an organization could attempt to engender highperformance through good HR activities –human resourceplanning.
Diagnostic versus Rationalized
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
The diagnostic approach has the potential to affectorganizational structure, job design and workpractices.Human resource planning seeks to make the linksbetween strategy, structure and people moreexplicit.HRP builds on and develops the rationalized anddiagnostic approaches to manpower planning.
Human Resource Planning
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
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Studies show that it is beneficial to adopt a ‘highroad’ HRM strategy.
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This is characterized by high training, highinvolvement, high rewards and quality commitment.
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It requires a belief by senior management that peoplerepresent the key source of competitive advantage.
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The continuing development of people should beseen as a vital feature of strategy in both its formationand implementation.
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But many firms do not view people in this way,preferring to see HRM issues as a third-order issue.
‘High Road’ HRM Strategy
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
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This is characterized by low pay, low job security and workintensification.
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When faced with difficulties, many organizations move tothe ‘hard’ version of HRM in which HR activities aredesigned to
respond 
to strategy –people being viewed asa resource whose cost must be controlled.
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HRP in this version is more concerned with the rightnumber of people in the right place at the right time whocan be utilized in the most cost-effective manner.
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With pressure to sustain or increase profits, employees aremore likely to be treated as a ‘number’ in the quest toreduce costs.
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This continues despite the realization that losing staffcould have negative consequences for the organization –in loss of skill, knowledge, wisdom and productivity.
‘Low Road’ HRM Strategy
Web support material to accompany
Human Resource Management: Theory and Practice 
, Third Edition ©John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
The various attempts to state the value of people inthe language of accounting and to represent thisvalue in an organization’s financial statement isreferred to ashuman resource accounting.This can be defined as the process of identifying,quantifying, accounting and forecasting the valueof human resources in order to facilitate effectiveHRM.
Human Resource Accounting
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