Part 2 Human resource management in practice
Chapter 6 Chapter 7 Chapter 8 Chapter 9
Human resource planning Job and work design Recruitment and selection Performance management
Chapter 10 Reward management Chapter 11 Training, development and learning
Human resources planning
After reading this chapter, you should be able to: Discuss the rise of human resource planning (HRP) as a strategic priority Explain the techniques associated with forecasting the supply and demand of human resources 1 1 1 1 Outline the role of job analysis in the HRP process Describe and analyse the impact of restructuring on HRP responses Explain the role of HRP in talent management Discuss international HRP considerations
Introduction Approaches to HRP The strategic role of HRP Conclusion
For discussion and revision Further reading Case study: The Australian Cladding Company References
Human resource management in practice
In the Introduction to this book, Syed and Kramar emphasized the increasing globalization of the world of work and the capacity of events in one country to impact on others. International social and economic change and resultant changes in the international labour market pose particular challenges for the human resource management (HRM) function. The global financial crisis of 2008–09 was a good example of a situation in which the HRM function had to provide leadership in managing potential workforce reductions while still attracting and retaining critical talent in order to maintain businesses’ viability. At a time when many organizations internationally were struggling to manage skill shortages (see Rudd et al., 2007), economic uncertainty created a further level of complexity. The Corporate Leadership Council (2008) advised that those companies which avoided reactionary approaches to HRM and managed to maintain morale and retain skilled employees during the period of downsizing would come through the crisis in a stronger competitive position. These circumstances require innovative responses and careful HRM planning. As custodians of the people resource in organizations, it is the role of the HRM function to assist in the development of human resource planning (HRP) initiatives that match changes in the supply and demand for labour, and also manage initiatives to retain and attract talent strategically rather than reactively. The purpose of this chapter is, first, to broadly review approaches to HRP, and second, to critically analyse some of the strategic responses to issues associated with the supply and demand of labour. The chapter starts with a discussion of the stages that the HRP activity has moved through and of the emerging recognition of the strategic importance of this area. Techniques for HRP are then explored, including quantitative and qualitative approaches. Following on from this, a discussion of job analysis highlights the connections between the analysis of what a job involves and the HRP requirements for it. Having explained HRP techniques, the discussion will then move on to an examination of the more strategic issues associated with HRP, such as HRP as part of restructuring initiatives and the role of HRP in decisions related to talent management and globalization.
Approaches to HRP
The evolution of HRP
Huselid (1993: 36) has explained that HRP essentially matches ‘projected human resource demand with its anticipated supply, with explicit consideration of the skill mix that will be necessary throughout the firm’. HRP is a dynamic process affected by both predictable and unpredictable forces. The economic change experienced during the global financial crisis, for example, in 2008–09 impacted on markets and resulted in swings in consumer demand that...
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