Planning/developing the workforce
Human resource management is the process of making the most efficient use of an organisations personnel. HRM covers a broad range of business activities.
- Assessing future labour needs
- Recruitment and selection
- Training
- Appraisal
- Motivation and reward of employees
Until recently, most businesses have relied on the concept of personnel management. Latterly, the influence of Japanese management techniques has encouraged the adoption of at least some elements of HRM. The most enthusiastic supporters of HRM are foreign-owned companies operating in the EU. However, many firms do not engage in human resource planning and management.
HRM views activities relating to the workforce as integrated and vital in helping the organisation to achieve its objectives. People are viewed as an important resource to be developed through training. Thus, policies relating to recruitment and training, for example, should be formulated as part of a co-ordinated humans resource strategy.
Conversely, personnel management considers the elements that comprise managing people (Recruitment, selection and so forth) as separate elements. It does not take into account how these parts combine to assist in the achievement of organisational objectives. At its simplest, personnel management within businesses carries out a series of unrelated tasks.
Planning the workforce
Before business recruits or trains employees, it must establish future labour needs. This is not simply a matter of recruiting sufficient employees. Those recruited must have the right skills and experience to help the organisation achieve its corporate objectives.
Managers will draw up a human resource plan to detail the number and type of workers the business needs to recruit.
The plan will also specify how the business will implement its human resource policies. As important element of the plan is a skills audit to identify the abilities and qualities of the existing workforce. This many highlight skills and experience of which managers were unaware.
Businesses require specific information when developing human resource plans:
- They need to research to provide sales forecasts for the next year or two. This will help identify the quantity and type of labour required.
- Data will be needed to show the number of employees likely to be leaving the labour force in general (and the firm in particular). Information will be required on potential entrants to the labour force.
- If wages are expected to rise, then businesses may reduce their demand for labour and seek to make greater use of technology.
- The plan will reflect any anticipated changes in the output of the workforce due to changed in productivity or the length of the working week.
- Technological developments will impact on planning the workforce. Developments in this field may reduce the need for unskilled employees whilst creating employment for those with technical skills.
Developing the workforce.
One strategy to improve the performance of employees requires businesses to recruit employees with the appropriate skills from outside the organisation. An alternative is to train existing staff to develop their skills and knowledge. This option can be expensive and takes time.
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