Human Resource Planning
Human resources are an increasingly broadening term that refers to managing “human capital,” the people of an organization. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success. Human resources have at least two related interpretations depending on context.
This first usage is used more in terms of ‘human resources development’, and can go beyond just organizations to the level of nations. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as ‘human resources management’.1
Theory
The Human Resource was developed under the field of Systems theory is and the study of the nature of complex systems in nature, society, and science. More specifically, it is a framework by which one can analyze and/or describe any group of objects that work in concert to produce some result.2
This theory serves as a basic structure and fundamentals on the idea of resourcing the skills of an individual. Basically the Human Resource or Human Resource Department is found inside in many companies and it’s an advantage to have a well strategically plan in leading the workers for the future of a company.
History
Human Resource Planning exists under the Human Resource Management. HRM has been a concept that was utilized ever since human beings started following an organized way of life.
Some of human resource management’s vital principles were used in prehistoric times. Like, mechanisms being developed for selecting tribal leaders. Knowledge was recorded and passed on to the next generation about safety, health, hunting, and gathering. 1000 B.C to 2000 B.C saw the development of more advanced HR functions. The Chinese are known to be the first to use employee screening techniques, way back in 1115 B.C. And turns out it was not Donald Trump who started “the apprentice” system. They were the Greek and Babylonian civilizations, ages before the medieval times.
With the Industrial Revolution, came the conversion of the US economy from agriculture-based to industry-based. This led them to require an extremely well-organized structure. Further, this led them to recruit a lot of people. More so, the industrial revolution brought in maddening amounts of immigration. Again, to create employment for all the immigrants, recruitment and management of the recruited individuals gained vitality. As such, there was a blaring need for Human Resource Management.
Early human resource management, in general, followed a social welfare approach. It aimed at helping immigrants in the process of adjusting to their jobs and to an “American” life. The main aim behind these programs was to assist immigrants in learning English and acquiring housing and medical care. Also, these techniques used to promote supervisory training to ensure an increase in productivity.
With the advent of “labor unions” in the 1790′s, the power in the hands of the employees multiplied considerably and increased at a rapid pace by the 1800s and furthermore in the 1900s. This led to the HR department being more capable of politics and diplomacy. The two feats that were quintessential to the importance of HR were; the fact that it was the HR department that got the management and the labor unions to come on common grounds. They basically worked on getting the management to see things from the labor perspective and grant them medical and educational benefits. The other would be Frederick W. Taylor’s (1856-1915) Scientific Management. This book had tremendous impact on attaining better productivity from low-level production workers.
B.F. Goodrich Company was the pioneers in designing a corporate employee department to address the concerns of the employees in 1900. National Cash Register followed suit in 1902 by forming a separate department to handle employee grievances, record keeping, wage management and other employee-related functions. Personnel Managers started seeing more sunshine since the Wagner’s Act (aka National Labor Relations Act) in 1935. There was a shift in focus from workers efficiency to efficiency through work satisfaction, thanks to the Hawthorne studies around the 1930s to 1940s.
Between the 1960s and 1970s, the HRM movement gained further momentum due to the passing of several acts like the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA), and the Occupational Safety and Health Act of 1970. Now, the HR department was the apple of the corporates’ eyes because, the corporates’ placed a lot of importance on human resource management to avoid plausible law suit.
So by the end of the 1970s, HRM had taken over the world! Almost all big and medium scale industries had a department to manage their recruitment, employee relations, record-keeping, salaries and wages, etc. Towards the 1980s, the importance of HR continued to intumesce for several reasons like increase in skilled labor, training, regulation compliance, dismissal, etc. The HR managers were the ones who did the hiring and the firing.
In today’s date, HR has the same importance as the other departments, in some corporates, it has more. With the constant increase in education, technology and frequent fluctuations in economic status and structures, I believe, HR is the oldest, most mature and yet, the most efficient of all management styles.3
HRP
Strategic Human Resource Planning is an active change process in which the organization continuously assesses its current state with respect to its existing pool of employee talent against its requirements to achieve its vision for success. Through this process the organization identifies, develops and implements options, tools and methods for achieving its desired state.4
Discussions
Human Resource often associated with Human Capital. We should separate first the two before tracking down the planning process.5
• HCM (human capital management) specialists need to know the difference between the book value (somewhat similar to the earnings per share, but it relates the stockholder’s equity to the number of shares outstanding, giving the shares a raw value) and market capitalization of their organization (the market value of a quoted company which is calculated by multiplying its current share price by the number of shares in issue)
• The most important stakeholders in HCM are external not internal
• HCM is about value not cost. People are value adders not overheads, as in HRM (human resource management)
• HCM has to show the value generated by people management in the annual operating and financial review
• HCM means demonstrating a clear and causal link to organizational performance; not just following best HR practices
• HCM is about measuring organizational outputs (profit, revenue, service levels) while HRM tends to concentrate on input measures (e.g., recruitment costs)
Omani Organizations
to Autonomous Hospitals
Omanization is defined to be the ‘effective replacement’ of an expatriate staff member with a national staff member within/after the stipulated transition period (currently, 2 years for physicians and 6 months for other categories).
In the context of a hospital (or for that matter in any organization), Omanization is not to be regarded merely as ‘choosing the expatriate employee and physically replacing him/her with an Omani candidate.’ The Omanization process in a hospital may consist of the following phases:
ü Selection of an Omani candidate,
ü Identification of the expatriate employee to be replaced (in collaboration with the concerned department/unit of the hospital),
ü Appointment and posting of the Omani candidate,
ü Apprising the concerned expatriate employee,
ü Induction training to the selected Omani employee,
ü On-the-job training of the selected Omani employee,
ü Further post-experience education for the Omani.
Since Omanization is a national commitment, a hospital is expected to whole-heartedly support the Omanization initiative. The hospital’s Board, CEO, HoDs, Supervisors and even the employees have a role to play in making the entire Omanization process effective. The Hospital Management Boards will take the responsibility to plan for Omanization of all specialized manpower categories in the hospital. The DGs of regions will coordinate these plans while planning it for the region as a whole, and process these further with the appropriate units in MoH-HQ.
The hospital is initially involved in the selection of candidate(s) and is usually consulted. The hospital will nominate the name of an expatriate employee (to be replaced) and communicate it to the Omanization Cell under intimation to Chairman, HMB. The CEO should discuss the matter confidentially with the concerned HoD prior to forwarding the name to MoH-HQ.
When the Omani candidate joins the hospital, the relevant HoD has first to arrange an induction training activity for the newly assigned Omani staff. He/she will deploy the candidate to all.
to Oil Company
Oman Refineries and Petrochemicals Company (ORPC) has a -
Vision: To become a competitive enterprise and a model for industrial excellence with a proficient workforce.
Mission: To secure the nation’s needs for refined petroleum products and to compete internationally through expanding capabilities and business activities in order to sustain superior growth for the benefit of stakeholders.
But in the view in terms of Human Resource they believe that HR is the most valuable asset of their Company. The HR Department has a very crucial role in the success of the Company and acts as a strategic partner. The Department is responsible for directing the functions of manpower planning, employee recruitment and selection, employee training and development, performance appraisals, job analysis and design, leave, compensation, policy and organizational development, employee benefits, disciplinary actions, employee relations and welfare.
The development of human resources has been instrumental in the Company’s growth and success. The training initially concentrated on training fresh recruits to become plant operators and maintenance technicians.
Their employees are entitled on a highly competitive compensation and benefit packages. Employees’ dependents are also entitles to free medical services and global life insurance.
Analysis
1. Both Omani Company gives importance to the employees. They only differ in the culture and how they manage their employment well. They differ in planning strategy like the hospital; they encourage the employees for higher position or deployment while the Omani oil company tried to maintain the employee in the field of his expertise.
2. The demand and supply obviously differ between the two companies same as their strategy in planning. The hospital doesn’t need to advertise and the oil company needs to get a market to stabilize their business.
3. The demand for human resource is needed with respect to both companies. The manpower never ceases and its availability can be found everywhere. The two companies only differ in the manner of the manpower’s ability. The hospital needs preferably a doctor and the other need mechanical expert.
4. The vacancies between the two companies lie in the department of human resource. They find good reasons if the company needs additional workers or there is an available place that fits in the workers ability.
5. The data needed in the Human Resource Departments are confidential and unavailable for public view. But the study can clearly tell the demand of work in never ceases. Even if you try to explore the world, the job seekers are everywhere, and there are only few companies offering a good benefit for the employees.
6. The decision in recruitment doesn’t only lies in the hands of the Human Resource Department. They also have to consult the upper department before they hire a good people especially when the person is over qualified in the position offered. The Human Resource head is very knowledgeable in the field of their work and so that they can choose for a right person. The head of Human Resource Department finished a course in Psychology and followed right track in selection of the workers, like having a personality exam. In that kind of test, they can analyze the person’s behavior.
References:
1. Human Resource Planning [Online] Available at: http://en.wikipedia.org/wiki/Human_resource_planning [Accessed 23 July 2009].
2. System Theory [Online] Available at: http://en.wikipedia.org/wiki/System_Theory [Accessed 23 July 2009].
3. Khilawala, R., (2009). History of Human Resource Management [Online] Available at: http://www.buzzle.com/articles/history-of-human-resource-management.html [Accessed 23 July 2009].
4. Human Resource Planning [Online] Available at: http://competencywiki.ihrm.ca/wiki/index.php/Human_Resource_Planning [Accessed 23 July 2009].
5. Human Resource Planning [Online] Available at: http://competencywiki.ihrm.ca/wiki/index.php/Talk:Human_Resource_Planning [Accessed 23 July 2009].
External Sources
1. Guidelines to Autonomous Hospitals on Human Resource Management [Online] Available at: http://www.moh.gov.om/hr/9DGHAHRMAutoHosp.pdf [Accessed 23 July 2009].
2. Oman Refineries and Petrochemicals Company [Online] Available at: http://www.orpc.co.om/hr.aspx [Accessed 23 July 2009].
Credit:ivythesis.typepad.com
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