Monday, 9 October 2017

Strategic Human Resource Planning



SHRM means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Human resource management today is characterized by the emphasis on the integration of the traditional activities as well as human resource management’s involvement in overall and organizational planning and change.
(a)          It focuses on individual employees rather than on collective management- trade union relations.
(b)             It involves all managerial personnel's.
(c)           It aims at developing such human resource management system in which activities such as recruitment, selection, training and development, performance evaluation and compensation work together synergistically with a strategy to focus.



          A very common term in business is strategic planning. The strategic plan serves as a guide for businesses to achieve their mission. The standard strategic plan presents an organization's strengths and weaknesses, the environment in which the organization operates, and the goals the organization desires to achieve within a specific time frame. In order to achieve the desired goals that are presented in a strategic plan, it is important that the organization take a strategic approach to human resource management.


GENESIS AND GROWTH OF HUMAN RESOURCE MANAGEMENT IN INDIA
STAGE ONE: Can be traced way back during the first world-war and initiated by Tata Iron And Steel Company appointing the first labor officer in 1937.
After the royal commission on labour, it recommended the appointment of labor officers in order to protect the workers interest.  Such labor officers were mainly concerned with the recruitment and welfare of the workers for the promotion of amicable settlement between the management and workers.
STAGE TWO: Different statues during the independence; such as factories act 1948 made it mandatory for the factory’s employing more than 500 workers to appoint a qualified welfare officer.  Similarly plantation labour act 1931 and the mines act 1952 made the appointment of labor officers mandatory.
STAGE THREE: Establishment of Indian institute of personnel management in Calcutta and national institute of labour management Bombay paved a way for a new era in the field of human resource management in India.
STAGE FOUR: Developments during 1960s; three major areas of practice i.e labour welfare, industrial relations and human resource administration emerged as a complimentary part of human resource management.  Hence, professionalism in human resource management developed in 1970s witnessing a marked shift from a welfare management to higher efficiency management.
STAGE FIVE: Growing awareness about the significance of the human side of administration has led to the development of human resource management as a distinct discipline and a profession in 1990s.




FORECASTING LABOR DEMAND
Forecasting labor demand is a process of estimating the future human resource requirement of the right quality and the right number of employees. So, with that example, if you were the human resource director of an automobile company, and that company wanted to increase production of its top-selling hybrid car, it would be your department's job to ensure that you hired the right number of people in order to meet that production demand. In addition, due to the fact that the car is a hybrid and requires specialty engineers, it would be important that the individuals you hire to meet that production demand also meet the skill requirement to complete that task.


Analyzing the Present Labour Supply
Labor supply is the availability of suitable human resources in a particular labor market. Labor supplies are constantly changing. In the twenty-first century, it changes more so than ever due to the fact that people are now more mobile and will move from city to city. In addition, it is more likely in this current labor era to change careers multiple times in a professional lifetime. With that being said, human resource directors must constantly analyze the labor supply trends in their particular industry, location, and economic environment.
Balancing Labour Demand and Supply
In the same grain as forecasting labor demand, it is important that the human resource director properly balance labor demand with labor supply. Let's go back to the example that was provided regarding the increased production of hybrid cars at your factory. As the human resource director, you would be required to make sure that you have a proper number of employees who are qualified to build a quality hybrid car. Now, if your factory was located in an area that had a high population of qualified car manufacturers with hybrid manufacturing experience, then your job would be relatively easy to achieve. However, what would happen if that population was not as easily available?




Industrial Revolution
The Industrial Revolution led to the decline of the craft system. Master artisans and their apprentices and journeymen were replaced with large factories that fundamentally changed the nature of work. Instead of highly skilled masters teaching apprentices a trade, most production shifted into large factories where the manufacture of a product was divided up between relatively unskilled workers.
Unlike the craft system, work was very specialized, where a complex task was broken down into a series of simpler ones. For example, one group of workers may cut boards for a piece of furniture, different sets of employees may put different parts of furniture together, a different group may paint or stain the wood and a final group may do any upholstering.
What did this mean for human resource management? A new class of employee appears in the workplace - the manager. Unlike under the craft system, managers were often not owners of the company. Some managers had responsibility for supervising employees in their work task. Unlike under the craft system, however, it was not necessarily the case that managers actually knew how to do the work they were supervising. Their role was to ensure employees did their work.
Other managers were responsible for administrative support functions, including what we know as HR functions. For example, workers needed to be selected for employment. Also, since workers in the factories were provided a wage in exchange for their labor, development of payroll systems and practices was required.



Scientific Management
In the late 19th and early 20th century, scientific management theory offered a systematic approach to employee management and development. Scientific management tried to improve a company's productivity by improving the efficiency of how work tasks were completed using scientific, engineering and mathematical principles.
For example, a study may have been undertaken to determine the most efficient manner for a worker to shovel coal into a furnace. The task would be broken down into distinct motions and the optimal number of motions would be determined. Employees would then be trained to shovel coal in the optimal manner.

Human Relations Movement
The next development in human relations started in the 1920s and sought to put the 'human' in human resources. The human relations school took a behavioral psychology perspective to managing people and was focused on finding ways to increase worker motivation and satisfaction to increase productivity. It was less 
 

STEPS IN STRATEGIC HRP
Step1 - define the current Business vis-à-vis HR Competencies.
           
            Choose the terrain on which it will compete – what product it will sell, where it will sell them, how to differentiate products from its competitors.
            Human Resource requirement for the Company.
Step 2 – Perform external and internal audits
      Analyzing external and internal situations.
      SWOTs
      SWOT analysis
   HR Audit is a comprehensive method to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations.
Step 3 : Formulate new Business and mission statements as per quality policy
      Based on situation analysis
      What should our business be
      What products
      Where it will sell
      How to differentiate from competitors
      New vision and mission
Step 4 : Translate the mission into strategic goals
      Operationalizing the mission for managers – strategic goals
      For each department
      Step 5 : Formulate strategies to achieve the strategic goals
         Strategies, Course of action – how to move from the current business  to what it wants to
Step 6 : Implement the strategies
      Translating strategies into action
      Hiring, firing people, building plants, adding products, product lines
      This include managerial functions like Planning, organizing, staffing, leading, and controlling
Step 7 : Evaluate performance
      Management Monitors the extend to which the firm meeting its strategic goals
      Strategic Control – keep strategy up to date according to the environmental changes
            


 

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