Today, human resources play a particularly important part in the successful organizational performance because they contribute to the effective organizational performance and maintenance of the steady business development. On the other hand, human resources need the effective human resource management, which contributes to the formation of the healthy organizational culture. In such a context, employees recruited by an organization should match the cultural environment of the organization and its demands and expectations. Therefore, organizations should pay a particular attention to human resource management planning process, which affects consistently human resource management and human resources recruited by organizations.
In order to understand the essence of human resource management planning process, it is important to dwell upon its key terms. In this respect, it is possible to distinguish the first step in the human resource management planning process, which is designing the management system. At this stage, human resource managers focus on the elaboration of the human resource management system, within which they operate and manage human resources. The design of the system may differ depending on needs of organizations and management style. For instance, some managers prefer authoritarian management style, while others prefer democratic management style. Hence, they design the human resource management system respectively to their management style, taking into consideration needs of the organization. For instance, if the organization needs autonomous employees, who can take decisions autonomously of their managers, then human resource managers develop the design, which provides human resources with ample opportunities to work autonomously.
The next step in the development of effective human resource management process is the environmental analysis. In fact, before recruiting employees or developing the management strategy, human resource managers should conduct the in-depth environment analysis. The environmental analysis implies the detailed analysis of the socio-cultural environment, in which the organization operates. The understanding of socio-cultural environment is essential for understanding traditions, needs and expectations of employees. As managers understand needs and traditions of employees, they can develop the management style that matches cultural traditions and needs of employees. In such a way, human resource managers can maximize the effectiveness of employees’ performance.
Furthermore, forecasting human resource demand is also extremely important. Forecasting human resource demand implies the forecast of the demand of the organization on employees and their professional development. To put it in simple words, managers need to know what employees their organization will need and what professional skills and abilities they have to stimulate in their employees.
The next step in human resource management planning process is analyzing supply. This step allows human resource managers to assess and to analyze human resources available to them at the moment. In this regard, managers can deal with employees already working within their organizations as well as they can conduct the analysis of the labor market to assess prospective employees, which can enhance their organization. For instance, if an organization needs a well-qualified professional, human resource manager can monitor the organization in search of such a professional to promote him or her to the new position, or hire a new professional from other organizations.
Finally, on completing the aforementioned steps, human managers can focus on the reconciliation and planning. This step includes the creation of the plan of human resource management, which is created on the ground of available human resources, needs and demands of the organization, potential of employees and forecast of the further development of the organization.
In terms of human resource management planning, organizations may face three possible scenarios. First, a firm may develop successful human resource planning when demands of the firm coincide with the supply in the labor market (Delery and Doty, 830). In such a situation, the demand matches the supply and the firm can choose from the desired number of applicants. Basically, such a situation is positive for the organization because human resource managers are not overwhelmed with application forms and they can select among professionals, whom they know perfectly well.
However, a firm may face a problem of the lack of well-qualified professionals or professionals that meet its demands because of the poor supply in the labor market. In such a situation, a firm may need to train its employees and change its demands (Becker and Gerhart, 786). This is probably the worst scenario for organizations, because they are extremely limited in their choices. As a rule, in case of the shortage of supply, organizations have to pay high wages to employees and retain them, regardless of their performance. This means that employees may be imperfect but, as there is a few employees to choose from in the labor market, organizations have to retain the available employees, regardless of their pitfalls and drawbacks.
Finally, a firm may face a situation, when the supply outpaces its demands consistently. In such a situation, the firm can benefit from choosing the best professionals among the large number of applicants. Thus, human resource management planning process affects the overall organizational performance.
Becker, B. and Gerhart, B. “The impact of human resource management on organizational performance.” Academy of Management Journal, 39(4), 1996, 779–801.
Delery, J. and Doty, H. “Modes of theorizing in SHRM.” Academy of Management Journal, 39(4), 1996, 802–835.