Module name Puman 8esource ManagemenL Module 1lLle Adbm 204
Ca[aba ereraCunawardenaManagemenL ConsulLanL lnLroducLlon Lo Puman 8esource lannlng Introduct|on Puman resources managemenL ls a crlLlcally lmporLanL and challenglng area of managemenL 1he lmporLance lles ln Lhe facL LhaL lL ls concerned wlLh Lhe human dlmenslon ln an organlzaLlon lL ls an area whlch grew along wlLh Lhe evoluLlon of Lhe early sLages Modern ManagemenL known as 'Classlcal ManagemenL approach' lnlLlally Lhe eople ulmenslon" was noL recognlzed ln facL eople ulmenslon" was noL ln Lhe managemenL parlance slnce 'people' or workers' were consldered as [usL anoLher one ln Lhe facLors of producLlon perspecLlve uurlng Lhe SclenLlflc ManagemenL era more emphasls was placed ln Lhe Lechnologlcal aspecLs of an organlzaLlon roducLlvlLy was consldered a funcLlon 1echnology ln whlch Lhe worker was only a cog ln Lhe' Machlne' Powever wlLh Lhe emergence of Lhe Puman 8elaLlons School credlLed Lo LlLon Mayo as Lhe chlef proponenL Lhe managerlal aLLlLude Lowards Lhe employee" changed across many more guldlng phllosophles wlLnessed durlng Lhe LranslLlon from Classlcal ManagemenL Lo Modern ManagemenL ln Lhe MeLamorphosls of Lhe managemenL Lheory Lhe mosL lmpelllng force had been Lhe growlng focus and recognlLlon of Lhe crlLlcal lmporLance of Lhe people ulmenslon" ln CrganlzaLlon SLraLegy 1hls ls known as SLraLeglc 8esource ManagemenL Human Resource Management (HRM) is the term used to describe Iormal systems devised Ior the management oI people within an organization. These human resources responsibilities are generally divided into three major areas oI management: staIIing, employee compensation, and deIining/designing work. Essentially, the purpose oI HRM is to optimize the productivity oI an organization by optimizing the eIIectiveness oI its employees. This mandate is unlikely to change in any Iundamental way, despite the ever-increasing pace oI change in the business world. As Edward L. Gubman observed in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change." 1 &ntil Iairly recently, an organization's human resources department was oIten relegated to lower rungs oI the corporate hierarchy, despite the Iact that its mandate is to replenish and nourish the company's work Iorce, which is oIten cited, legitimately, as an organization's greatest resource. However, in recent years recognition oI the importance oI human resources management to a company's overall health has grown dramatically. This recognition oI the importance oI HRM extends to small businesses. Though they do not generally have the same volume oI human resources requirements as do larger organizations, they too Iace personnel management issues that can have a decisive impact on business health. As Irving Burstiner commented in %e Small Business Handbook, "Hiring the right people and training them well can oIten mean the diIIerence between scratching out the barest oI livelihoods and steady business growth.. Personnel problems do not discriminate between small and big business. You Iind them in all businesses, regardless oI size." 2 Human Resource Planning
If the main objective of human resource management is to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business, HR Planning is the ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is 9o ensure 9e bes9 fi9 be9een employees and jobs, ile avoiding manpoer sor9ages or surpluses. The three key elements of the HR planning process are forecas9ing labor demand, analyzing presen9 labor supply, and balancing projec9ed labor demand and supply. 3
Human resource planning is the process of anticipating and carrying out the movement of people into, within, and out of the organization. The main purpose of human resources planning is to achieve the optimum use of human resources and to have the correct number and types of employees needed to meet organizational goals.
It can also be defined as the task of assessing and anticipating the skill, knowledge and labor time requirements of the organization, and initiating action to fulfill or `source (outsource) those requirements.
'Manpower planning has maintained its imperatives Ior several reasons: i) a growing awareness oI the need to look into the Iuture, ii) a desire to exercise control over as many variables as possible which inIluence business success or Iailure, iii) the development oI techniques which make such planning possible.'
P8 ls Lhe process by whlch an organlzaLlon ensures LhaL lL has Lhe rlghL number and klnds of people aL Lhe rlghL places aL Lhe rlghL Llme and LhaL Lhese people are capable of performlng Lhelr Lasks effecLlvely and efflclenLly 1hls helps Lhe organlzaLlon Lo achleve lLs overall ob[ecLlves 1wo ma[or ways ln whlch socleLal Lrends affecL employmenL ls Lhrough consumer markeLs whlch affecL Lhe demand for goods and servlces and labor markeLs whlch affecL Lhe supply of people needed Lo produce goods and servlces
1 Cubman Ldward L 1he CaunLleL ls uown !ournal of 8uslness SLraLegy novemberuecember 1996 2 8ursLlner lrvlng 1he Small 8uslness Pandbook renLlce Pall 1988 ead more http]]www|nvestoped|acom]terms]h]humanresource p|ann|ngasp#|xzz1a[y12bSy
P8 ls Lhe process by whlch an organlzaLlon ensures LhaL lL has Lhe rlghL number and klnds of people aL Lhe rlghL places aL Lhe rlghL Llme and LhaL Lhese people are capable of performlng Lhelr Lasks effecLlvely and efflclenLly 1hls helps Lhe organlzaLlon Lo achleve lLs overall ob[ecLlves 1wo ma[or ways ln whlch socleLal Lrends affecL employmenL ls Lhrough consumer markeLs whlch affecL Lhe demand for goods and servlces and labor markeLs whlch affecL Lhe supply of people needed Lo produce goods and servlces
@he strateg|c n p|ann|ng process has four steps O Assesslng Lhe currenL P8 capaclLy O orecasLlng P8 requlremenLs O Cap analysls O ueveloplng P8 sLraLegles Lo supporL organlzaLlonal sLraLegles Assesslng currenL P8 capaclLy 8ased on Lhe organlzaLlons strateg|c p|an Lhe flrsL sLep ln Lhe sLraLeglc P8 plannlng process ls Lo assess Lhe currenL P8 capaclLy of Lhe organlzaLlon 1he knowledge skllls and ablllLles of your currenL sLaff need Lo be ldenLlfled 1hls can be done by developlng a ski//s inventory for each employee 1he ski//s inventory should go beyond Lhe skllls needed for Lhe parLlcular poslLlon LlsL all skllls each employee has demonsLraLed or example recreaLlonal or volunLeer acLlvlLles may lnvolve speclal skllls LhaL could be relevanL Lo Lhe organlzaLlon LducaLlon levels and cerLlflcaLes or addlLlonal Lralnlng should also be lncluded An employees performance assessmenL form can be revlewed Lo deLermlne lf Lhe person ls ready and wllllng Lo Lake on more responslblllLy and Lo look aL Lhe employees currenL developmenL plans orecast|ng n requ|rements 1he nexL sLep ls Lo forecasL P8 needs for Lhe fuLure based on Lhe sLraLeglc goals of Lhe organlzaLlon 8eallsLlc forecasLlng of human resources lnvolves esLlmaLlng boLh demand and supply CuesLlons Lo be answered lnclude -Pow many sLaff wlll be requlred Lo achleve Lhe sLraLeglc goals of Lhe organlzaLlon? -WhaL [obs wlll need Lo be fllled? -WhaL sklll seLs wlll people need? When forecasLlng demand for P8 care should be Laken assess Lhe challenges arlslng from exLernal envlronmenL ln meeLlng your sLafflng needs -Pow wlll Lhe exLernal envlronmenL lmpacL on our P8 needs?
Cap analysls 1he nexL sLep ls Lo deLermlne Lhe gap beLween where your organlzaLlon wanLs Lo be ln Lhe fuLure and where you are now 1he gap analysls lncludes ldenLlfylng Lhe number of sLaff and Lhe skllls and ablllLles requlred ln Lhe fuLure ln comparlson Lo Lhe currenL slLuaLlon ?ou should also look aL all your organlzaLlons P8 managemenL pracLlces ln order Lo ldenLlfy pracLlces LhaL could be lmproved or new pracLlces needed Lo supporL Lhe organlzaLlons capaclLy Lo move forward CuesLlons Lo be answered lnclude -WhaL new [obs wlll be needed? -WhaL new skllls wlll be requlred? -uo our presenL employees have Lhe requlred skllls? -Are employees currenLly ln poslLlons LhaL use Lhelr sLrengLhs? -uo we have enough managers/supervlsors? -Are currenL P8 managemenL pracLlces adequaLe for fuLure needs?
Deve|op|ng n strateg|es to support organ|zat|ona| strateg|es - Lnsures opLlmum use of Lhe workforce and caplLallze on Lhe sLrengLh of P8 1he organlzaLlon can have a reservolr of LalenL aL any polnL of Llme eople skllls are readlly avallable Lo carry ouL Lhe asslgned Lasks lf Lhe lnformaLlon ls collecLed and arranged beforehand - orecasL fuLure requlremenLs - Pelp deLermlne recrulLmenL/lnducLlon levels - 1o anLlclpaLe redundancles/ surpluses/obsolescence - 1o deLermlne Lralnlng levels and works as a foundaLlon for managemenL developmenL programs 1ralnlng and developmenL needs can be meL ln a varleLy of ways Cne approach ls for Lhe employer Lo pay for employees Lo upgrade Lhelr skllls 1hls may lnvolve sendlng Lhe employee Lo Lake courses or cerLlflcaLes or lL may be accompllshed Lhrough onLhe[ob Lralnlng 8ecrulLmenL sLraLegles 1hls sLraLegy lncludes -8ecrulLlng new sLaff wlLh Lhe skllls and ablllLles LhaL your organlzaLlon wlll need ln Lhe fuLure -Conslderlng all Lhe avallable opLlons for sLraLeglcally promoLlng [ob openlngs and encouraglng sulLable candldaLes Lo apply Some organlzaLlons ouLsource P8 acLlvlLles pro[ecL work or bookkeeplng or example payroll may be done by an exLernal organlzaLlon raLher Lhan a sLaff person a shorL Lerm pro[ecL may be done uslng a consulLanL or speclflc experLlse such as legal advlce may be purchased from an ouLslde source Lach ouLsourclng declslon has lmpllcaLlons for meeLlng Lhe organlzaLlons goals and should Lherefore be carefully assessed osslble P8 plannlng sLraLegles Lo meeL organlzaLlonal sLraLegy are -uevelop a recrulLmenL and reLenLlon sLraLegy and provlde professlonal developmenL opporLunlLles LhaL glve Lhem lncreased skllls for deallng wlLh Lhe lssues Lhelr cllenLs face -ueclde Lhe unlque sLraLegles LhaL you wlll use Lo poslLlon yourself as an employer of cholce based on needs of your employees and poLenLlal candldaLes Issues re|at|ng to Sr| Lankan Crgan|zat|ons 1he maln and Lhe mosL slgnlflcanL lssue ln ma[orlLy of CrganlzaLlons boLh ln Lhe publlc and prlvaLe secLors ls LhaL appllcaLlon of P8M pracLlces ls done aL a superflclal level wlLhouL much recognlLlon and commlLmenL MosL of Lhe P8 racLlces are applled ln a fragmenLed manner 1here ls a wlde gap beLween Lhe P8 pracLlces and Lhe sLraLeglc plan of Lhe CrganlzaLlon 1he leasL used P8 racLlce ls P8 lannlng even ln Lhe CrganlzaLlons where SLraLeglc lannlng ls used Cha||enges Srl Lankan CrganlzaLlons boLh ln Lhe ubllc and rlvaLe secLors should serlously revlew Lhelr P8 racLlces and recognlze lLs lmperaLlve conLrlbuLlon Lo CrganlzaLlon success Lhrough lmproved producLlvlLy and compeLlLlveness ln vlew of Lhe above and Lhe rapld lncrease ln economlc and soclal developmenL experlenced ln Lhe posL confllcL era Lop managemenL ln Lhe Srl Lankan CrganlzaLlons ln Lhe ubllc and rlvaLe secLors should serlously revlew Lhelr managemenL pracLlces and recognlze Lhe lnseparable llnk beLween Lhe P8M funcLlon and racLlces for Lhe success of Lhelr CrganlzaLlon SLraLeglc lan and Lhe plannlng process 1he corporaLe leadershlp should be consclous of Lhe need Lo orlenL ourselves Lo Lhe lnLernaLlonal markeL parLlcularly ln vlew of Lhe fallure of Lhe lnLernaLlonal markeLs and Lhe lmpendlng recesslon 1he vasL opporLunlLles avallable ln Lhe shorL run could only be explolLed by lmprovlng organlzaLlon efflclency and compeLlLlveness
Know All Men by These Presents That This Joint Venture Agreement Is Made and Entered Into On This XXX Day of YYY in The Year of Two Thousand and Twelve