The Functions of Modern Management
The Functions of Modern Management
“Strategic HR planning predicts the future HR management needs of the organization after analyzing the organization’s current human resources, the external labor market and the future HR environment that the organization will be operating in” (HR Council, n.d.). Human resource planning directly ties in to an organization’s strategic development and implementation by calculating company trends, resources, design, previous works and future expansion and ensuring that the impending requirements are met. This paper will further examine the role of human resource development activities relative to an organization’s strategic growth, while highlighting the eight elements of the staffing process and concluding with the explanation of the relationship between key human resource activities and a company’s planning, development, and implementation processes.
Human resource planning is used to structure and meet organizational goals while taking into account four specific activities: job analysis, human resource inventory, human resource forecasting, and inventory and forecast comparison. With job analysis, groups of jobs are studied to ascertain their basic duties and the human characteristics needed to perform them. A human resource inventory determines staffing, along with their current qualifications and future prospects. “The human resource forecast is based on both short- and long-term plans and strategies for the company and its various parts” (Plunkett, Allen, & Attner, 2013, p.). Lastly, a comparison is made between the inventory and the forecasted needs to determine if reduction, growth, or retaining the status quo is the best strategy to adhere to.
Human resources and the properties of the staffing process work hand-in-hand. The principal objective of staffing is to “attract, hire, train, develop, reward, and retain the required number of good people helping them to meet their needs while they help the organization meet its needs” (Plunkett, Allen, & Attner et al., 2013, p.). According to Plunkett, Allen, and Attner (2013), the staffing process can be best explained using eight elements: human resource planning, recruiting, selection, orientation, training and development, performance appraisal, compensation, and employment decisions.
The authors maintain that “not all the elements of the staffing process are components of every staffing problem…some elements are constants, however” (Plunkett, Allen, & Allen, 2013). Taking a closer look at each of the eight staffing elements, let’s begin with human resource planning; – this component starts with job analysis. Carrying out a job analysis involves creating job descriptions and provisions of all of the jobs within an organization and their respective human qualifications. The next step is completing an account of current employees and their particular skills and how those skills meet current company needs, and the forecasted demands of the business.
The element of recruiting brings about the necessary number of qualified individuals to work in an organization, while also taking into consideration the possibility of training current employees for future or advanced positions, and the likelihood of hiring new employees down the road. Element three, selection, consists of a series of pre-employment screening procedures to determine if each potential employee is qualified for the position in which they are applying for. “Orientation includes a set of activities designed to introduce and welcome newcomers to their new company and working environments” (Plunkett, Allen, & Attner, 2013). It is during this phase that job duties and merits are explained, and new workers are introduced to current staff.
Training and development helps new employee’s employees transition from orientation to actual day-to-day work. Training specifically is dedicated to the current, or present state of business affairs whereas development focuses on future happenings within the organization and position. The sixth element is the performance appraisal; this assesses “outcomes and behaviors of employees against established and taught standards” (Plunkett, Allen, & Attner, 2013). Appraisals in turn, become the basis for promotions and relegation and ultimately can affect most aspects of an employee’s tenure.
The next element of the staffing process is compensation which is “the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required” (Heathfield, 2014, p.). There are two forms of compensation, direct and indirect; direct compensation is composed of wages and salaries whereas indirect compensation includes financial and nonfinancial rewards and benefits such as bonuses (Plunkett, Allen, & Attner, 2013). The final element in the staffing process is employment decisions;, these decisions include hiring and firing of employees, layoffs, transfers and promotions. Each of these employee decisions require specific protocols and applications and must be executed without discrimination.
The link between the eight elements of the staffing process and the four activities related to human resource planning is complimentary. Both have the component of job analysis, which “is the foundation for all assessment and selection decisions…job analysis examines the tasks performed in a job, the competencies required to perform those tasks, and the connection between the tasks and competencies” (OPM, 2014). In human resource planning inventory is used to identify current employees and their respective qualifications, within the staffing process selection is used to screen candidates’ abilities and performance appraisals assess the outcomes and behaviors of employees as a basis for promotion, demotion, termination etc.
Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.
An organization’s strategic planning, development, and implementation are governed by the company’s vision; how the company founders and current executives envision the growth, longevity, and output of the organization, what specific types of positions and employees will be necessary to fulfill the aforementioned goals, and how to execute said goals. Human resource departments and an organization’s considerations for planning, development and implementation work hand-in-hand. Both have the best interest of a given company in mind, the business leaders develop the vision for the company and “fill in the blanks” for what they perceive to be the best employees, tools, resources, and objectives whereas human resources take that vision and vet the potential employees while overseeing current staff and policies to ensure that both sides work in succession to form a cohesive organization.
In summary, human resource planning directly ties in to an organization’s strategic development and implementation by calculating company trends, resources, design, previous works and future expansion and ensuring that the impending requirements are met. By uUnderstanding the relationship between these two aspects of business allows a greater understanding of how employees are selected, trained, and retained and how organizations can build a lasting business with successful employees and staff.
Heathfield, S.M. (2014). Compensation. About: Money. Retrieved fromhttp://humanresources.about.com/od/glossaryc/g/compensation.htm HR Council. (n.d.). HR planning. Retrieved from http://hrcouncil.ca/hr-toolkit/planningstrategic.cfm Mayhew, R. (2014). Relationship between HR strategies and business. The Houston Chronicle:Chron. Retrieved from http://smallbusiness.chron.com/relationship-between-hrstrategies-business-2636.html Office of Personnel Management. (2014). Assessment & selection: job analysis. U.S. Office ofPersonnel Management. Retrieved from
http://www.opm.gov/policy-dataoversight/assessment-and-selection/job-analysis/ Plunkett, W. R., Allen, G. S., & Attner, R.F (2013). Management: Meeting and exceedingcustomer expectations (10th ed.). Mason, OH : South-Western Cengage Learning.