- Strategic Human Resource Management
- Why do we need HR?
- What value does HR add to an organization?
- Performance management
- Change Management
- Based on a working model developed, seven steps have been developed for effective workforce planning.
- Retention Strategies
Strategic Human Resource Management
People resourcing always has operational, knowledge and indicative indicators. The operational ones include the use of optimization tools for the current tool and process. The knowledge indicators include the understanding of the benefits of the current ways used by the HR professionals. The indicative tools include the strategic intent and the coherent corporate strategy leading to good HR processes. There is also the concept of contingency based resourcing where specific features existing in every sector especially the sectors facing high turbulence. It is not necessary a predicament of only bigger organization. The employees need to be resourced in a way that the organization’s goals match with the goals of the employees as well (Iles, P. 2009). It is a much known fact that today; employee management has become very crucial for any organization. One o f the most important goal of the human resources function if the mobility of the entire workforce. An organization can only achieve its goals if it has the right set of people with the sufficient skills and attitude and who are willing to work for achieving the organization’s goals. This is one aspect of resourcing. Another aspect is when there are so many options that the employees have these days, how to motivate them to stay with the organization. Also, underperforming employees need to be asked to leave and this also forms a part of people resourcing. (Hults, B. 2011)
Why do we need HR?
- Organizational effectiveness
- Human capital management
- Knowledge management
- Reward management
- Employee relation management
- Bridging gaps between reality and existing space
- Meeting different kinds of needs
What value does HR add to an organization?
Another aspect that may have been overlooked is that HR helps in the spread of information in a proper and structured format so that employees are well informed about what the organization wants to do (Hussain, S. I. 2013).There are other things like performance, productivity and gratification that can be aided with the HR function in place.
Recruitment and selection are two different things in any organization.
- Recruitment- Getting the prospective list of candidates that meet the requirement specification and are eligible to fill in the vacancies of the desired post is called potential recruits. For example, an organization has uploaded a vacancy online and people apply for it. The list of all the people who actually applied for the post become prospective recruits for the company.
- Selection- Out of the recruitment pool, we pick the candidates that best suit our requirements and these are the final selected candidates.
- Identification of underperforming employees and working on improving their relative performance
- Maximize the delivered performance of all the employees
Workforce planning or resourcing has moved way beyond only hiring, firing and retention. It needs a whole plan to keep and the employees. The beginning is with a strategic plan that is based on analysis of internal as well as external constraints. We need to observe the general trends happening on a national, industry and international level so that the organization can keep pace with the kind of skills needed to stay competitive in this changing business environment. The main goal is always about keeping the individual goals of the employees aligned with the goals of the company. Strategic planning involves analyzing the current assets in terms of the workforce, planning future requirements and establishing a need gap to fulfill. The solutions for fulfilling this need gap are then laid out according to the mission statement of the company. (Cotten, A. 2007)
Based on a working model developed, seven steps have been developed for effective workforce planning.
Strategic planning have now become very important in all public and private organizations. Every Organization needs to have a clear and succinct plan that includes what the organization wants to achieve and what it will do to achieve it. We need to define the goals, objectives and mission of the company. Along with this, they should also decide how to link financial performance and results to their plans and align employees or human resources to the same plan. (Cotten, A. 2007)
2. Compare with the external as well as internal environment in which the firm operates
It is important that we look at the political, social, cultural and technological aspects of the background in which the organization operates. To do a thorough analysis every organization needs to have a micro and a macro level focus. On the macroeconomic scale factors like industrial trends, labor markets and technology can be observed and put into the planning aspect. Some examples of these trends are expectation of workers from the company, access of information, change in demographics of the workforce etc. In the micro level, they need to understand what is happening in their own organization in terms of the labor and demand supply, the strength of the economy in which the company operates, the political factors etc. (Huls, J. 2014) The external analysis is conducted for the sole reason that it should be able to tell them how their planning will affect the workforce in the long run. Some of the factors in internal analysis would be the organizational culture that employees are familiar with, retirement risks, recruitment and retention data etc. Some other factors like need of overtime workers. This helps us track the need of hiring additional workforce for the organization.
3. Model the existing workforce
Once the HR people understand the current workforce and how the desired goals can be achieved. In order to model the workforce, they should include permanent employees, prospect new employees, and contract employees. They can analyze whether they would need additional workforce in form of new employees or contract workers by assessing the current resources and set objectives. For the same reason, companies can maintain an employee inventory that tracks the kind of skills and resources maintained by employees. (Cotten, A. 2007)
4. Assess the need of additional employees and estimate demand of total employees in the future
Mathematical tools can help them assess the additional employees they would need to meet the goals in the future.
5. Identify gaps and develop gap closing strategy
In doing so, the HR personnel should be able to list the prospective sources of additional recruitment and finalize a proper and official plan of hiring the additional employees.
6. Implement gap- closing strategy
The HR department have to finally hire/ fire any additional workforce based on the set demand
7. Analyze effectiveness and revise the plan when needed
Talent management is tracking the need to have certain set of people and then taking measures to meet the set goals. Failure to have good talent management can actually lead to shortage of employees and eventually to failure (Capelli, P. 2008). This includes recruitment, selection, hiring, retention etc. On the narrow scope, these are stress of workforce planning and ensuring that future requirements of the company are served. The most commonly used tools are talent pools, talent recruits etc.
Talent management has not been adopted by most companies but it is yet to be integrated in a proper manner. The anticipation of shortage of talent in the coming years forms the base of the whole talent management practice. Technology is now being vested into combing and coordinating processes. Companies still have different sets of databases for different things. Most of the organizations have shown very poor performance in terms of integration (Oladapo, V. 2014). Talent management practices like performance and learning can be integrated to generated better and easier to interpret results. All CEO have accepted the need to good talent management practices like performance management for meeting the goals of the organization. AT the same time, they have realized the importance of streamlining processes into single databases and combining the processes.
- Clear goal setting
- Better career management and succession planning. (www.hr.com. 2012)
It is also very important to especially retain the top performing employees of the organization. For the same reason, compensation is one of the most widely used tools/ aspects to retain employees. Most of the respondents in the study felt that compensation was the most important aspect for employee retention (Taylor, S. 2010). Another factor that came into picture. There are certain rewards that are not financial in nature. These include things like flexible work timings, maternity leaves, tax exemptions etc. It has been observed that employees with children find it difficult to struggle between work and home and hence value these kinds of non-financial rewards more than their financial rewards. It is more than compensation that can motivate the employees to stay with a company. For the younger employees especially, continuous learning plays a very important role. Training and development programs keep employees motivated. E-learning has now become a very important tool in employee learning due to its cost advantages and flexible options. Oracle has defined the goals for retention in any organization:
- Hire the correct people in the first place
- Immediate managers ability to manage should be improved
- Constant feedback given to employees
- Give freedom to the employees to manage their career goals
- Drive movement of talent across the organization
- Improve and measure the retention strategy with time.
To achieve the set goals and objectives the senior management needs to give it sufficient importance which is not prevalent in the current practices and policies of most companies. Most companies view HR as a transactional entity now losing out to their competitors. It is important to integrate all the Employee resourcing tools and policies of talent management, recruitment, staffing, administration etc into a single entity. The clear vision and mission of the HR policies should be very clear to all the stakeholders of the company. The transactional nature of tasks like minimizing time required to fill vacancies, designing the best compensation practices, hiring the right set of people, identifying key performers in the organization etc cannot be ignored.
For all this to happen, the most important thing is access to key information and insights all rounds. It is important to continuously monitor and track what is working and what is not. An organization that follows these practices is said to be innovative in the true sense. Without access to this kind of information it is impossible to achieve the required goals. It is crucial to act to get the best people for the company in the least possible time.
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