Changes in the business environment and labour market affect Human Resource Planning (HRP).

Topics: Employment, Human resources, Unemployment Pages: 6 (1973 words) Published: May 8, 2004
By looking out the definitions of HRP from Dessler (1999), Stone (2002), and Schuler (1998), HRP can be defined as the systematic and continuous process to ensure that organization's human resource needs are fulfilled by ensuring that the right people with the correct skills are available when required. Shortly, HRP is essentially focus on matching the individual and the needs of the organization to gaining a competitive advantage in marketplace.

HRP is important because the HR plan affects all HR activities and acts as the strategic link between organizational and HRM objectives (Stone 2002). It can reduce the human resources cost by helping management to anticipate and correct the shortages and surpluses of employees. An addition, HRP will provide a better basis for planning employee employment in order to make optimum use of workers' attitudes and to improve their job satisfaction (Nankervis et al. 1999). HRP provide more opportunities of working for women and minority groups in the labour market. Moreover, the HPR provide a tool for evaluating the effect of alternative human resource actions and policies.

Nowadays business environment is multifaceted and complex, thus the changes in business environment will have a great impact on the HRP of the organization. By the definition of HRP, to be a success organization, the organization must achieve the business objectives through the effective utilization of human resources. Therefore, organizations need to forecast the internal and external supplying of human resources through the process of HRP. Usually, the present employees who can be promoted, transferred, demoted or developed will make up the internal supply. When the internal supply of employees cannot meet the demand, organization is needed to look up the external human resources from labour market. This show that labour market is an important factor in determining human resource strategy, therefore the changes of labour market will bring the effects to the HRP of organization.

Normally, business environment can be categorized to 2 which are internal environment and external environment. The internal environment involves those factors that are found within the organization, for example, organizational structure and organizational culture (Stone 2002). By analyzing those factors of the internal environment, HR planner will be able to identify the organization's strength and weakness in order to achieve the business objectives.

The structure of an organization is referring to the organization's framework or design which can directly affect employee productivity and behavior (Stone 2002). It refers to how work tasks are assigned, who reports to whom, and how decisions are made (Eadie n.d.). Usually there have 2 forms of the organizational structures, one is hierarchical structure and the other one is flat structure. For the hierarchical structure, organizations have narrow span of controls over their employees. In contrast, organizations have wide span of controls over their employees with the flat structure. Thus, the structure of an organization has a powerful influence the types and numbers of employee in the organization, further the size of the labour market. Therefore, base on the structure of the organization, HR manager can anticipate the number of employees that required by the organization.

The organization culture is the pattern of basic assumptions, values, norms, and artifacts shared by organizational member (Cummings and Worley 1993). It tells employees how things are done, what is important and what kind of behavior is rewarded (Moorhead and Griffin 1995). Thus it has an impact on employee job satisfaction as well as on the level and quality of employee performance. However, each employee may assess the nature of an organization's culture differently, one of them may view it positively but one of them may view it negatively. Therefore, HR managers will be major players in shaping the...
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