HUMAN RESOURCE MANAGEMENT BBC 1109

1ST WEEK
LECTURE HANDOUTS

PART I. HUMAN RESOURCE PLANNING

What Is HRM?

Human resource management (HRM) is the process of employing people, training them,
compensating them, developing policies relating to them, and developing strategies to retain
them. As a field, HRM has undergone many changes over the last twenty years, giving it an even
more important role in today’s organizations. In the past, HRM meant processing payroll,
sending birthday gifts to employees, arranging company outings, and making sure forms were
filled out correctly—in other words, more of an administrative role rather than a strategic role
crucial to the success of the organization. Jack Welch, former CEO of General Electric and
management guru, sums up the new role of HRM: “Get out of the parties and birthdays and
enrollment forms.… Remember, HR is important in good times, HR is defined in hard times”
(Frasch, et. al., 2010).

The Role of HRM

Keep in mind that many functions of HRM are also tasks other department managers perform,
which is what makes this information important, despite the career path taken. Most experts
agree on seven main roles that HRM plays in organizations. These are described in the following
sections.

1. Staffing

2. Development of Workplace Policies

3. Compensation and Benefits Administration

4. Retention

5. Training and Development

6. Dealing with Laws Affecting Employment
7. Worker Protection
8. Communication
Human Resource Planning

Human resource planning (HRP) describes an ongoing, data-driven process in which a company
systematically plans for the future in terms of human resources to ensure that available jobs are
suited with appropriately skilled employees. It identifies key HR initiatives for the time period
ahead that will help the organization achieve its strategic goals and maintain its competitive
advantage without staffing shortages or excesses.
Importance of human resource planning
Organizations must be able to adapt their human capital to sustain the continuous shifts in
technology, local and global economics, product innovation, and culture. Human resource
planning is integral to maximizing a well-equipped workforce, and it offers other advantages that
assist in accomplishing your organization’s mission.

Here are some of the objectives HRP can achieve:

 Foreseeing and being prepared for cultural shifts and evolutions of the business environment.
 Anticipating and identifying job and skill changes to meet labor demands.
 Hiring the right talent on a timely basis to support expanded, decreased, or diversified
organizational plans.
 Adapting hiring techniques and benefits to source and hire the best candidates.
 Ensuring your workforce has optimal technical and soft skills to increase productivity.
 Developing career paths for employees to increase their satisfaction and value.
 Building and maintaining effective key HR processes. (Recruitment and selection, training
and development, compensation and benefits planning, performance management.)
 Making good use of your HR budget.
 Maintaining compliance with company policies and government regulations.

5 Steps In The Human Resource Planning Process

The actual process of human resource planning involves five general phases. Listed below is a
summary of each step to help you navigate the process:

1. Analyze organizational objectives and plans

2. Evaluate the current state of your workforce and uncover gaps
There are tools that can help you make a road map for this step of the HR planning process.
An organizational chart is a visual description of a company’s staff structure that designates
roles and reporting relationships. Below you can see an example of an HR organization chart in a
mid-sized organization

A replacement chart is a diagram of potential candidates and their readiness to step into certain
roles upon employee departures.

A skills inventory looks at the availability and preparedness of current employees to move into
either lateral or higher-level roles. It allows you to identify which employees have the ability to
take on new positions as the needs of the company change. It also helps you uncover any skills
deficiencies.
3. Forecast future HR requirements
4. Develop and implement a plan
5. Monitor, review, and reassess your plan