There are important P’s of Human Resource Management. Let us have a look at them one P at a time with few examples congregated during my experience with some companies:
Planning – Human resource planning, manpower planning and now it’s also refer to as Work force planning
What is workforce planning? – Workforce planning refers to the process of ensuring that an organization has access to talent and the necessary tools for success. It’s an integrated and forward-looking process that predicts ways in which the workforce will and should change and provides a plan for facilitating the transition. Workforce planning is a vital part of business management. Without a solid workforce possessing the skills and capabilities needed to meet the objectives and goals of an organization, the entity would fail.
These are important for successful Workforce planning:
Organizational Charts: One of the most important ingredients of successful workforce planning is designing a well articulated Organizational chart. They are chiefly used for plotting hierarchy and reporting lines in many organizations but they can be effectively utilized for depicting Demand for Human Capital, the type of people you actually need to invest in and how to plan succession.
Work structure: Now all the positions that you created in Organizational chart needs to be filled in specifically in terms of ‘work’ that each position is supposed to carry out. Defining responsibilities, actual tasks being performed, skill sets and competencies required to do such jobs, what sort of the training to remain competent, link to business goals.
Demand and Supply: What is the requirements in number, where are the requirements, and how do we need to fill in those numbers. What sources to be used to fill in the numbers? What profiles you need to achieve the business strategy? What to expect if there are changes in the market?
Gap analysis: Workforce planning is all about aligning your predicted workforce with your business plan, but generally there are some gaps found in how it looks like and how it should look like. Mainly there are gaps in Numbers, capabilities and competencies, skills and expertise. Then there are external factors such as recession which changes the entire scenario of workforce planning.
Mistakes that we make in Workforce Planning
Workforce plan needs to be well designed and developed, not only in numbers but also in well defined competencies for each position. Most of the companies stress upon hiring the right numbers within specific budgets but what they forget is hiring the right person for right job, which ultimately results in dissatisfaction or non match.
Absence of well created team:
Workforce planning is not just the work of Human resource managers, the organization requires a well crafted team who can define strategies, find out the gaps, create organizational charts, and define positions. What most companies forget is to incorporate right people for creating a well articulated workforce plan. There was a company I know of where HR was never included in creating organization charts and workforce planning was done by the departmental heads, and what was the result – unsatisfied workforce, lack of clear understanding on each role, un matched competencies and so on.
Not enough insight:
What most organization fails to implement is the availability of correct data, utilization of data, what are the financial implication of hiring in large numbers etc. Many companies do not even know the utilization of available data which results in improper planning, hiring and failure of the system.
Affect of external factors:
Recession, globalization, mergers and acquisitions, market fluctuations and such other factors affect the workforce planning And most organizations results in downsizing in big numbers, coming out unprepared in utilizing there available workforce in the optimum manner. What can be done to control such situations is availability of a well created team who can predict the affect so that the correct measures are thought of even before the calamity strikes.
Unskilled HR Personnel: Workforce planning also fails due to unavailability of unskilled HR professionals. People who have become a part of HR team but have no experience in HR planning, hiring, sourcing etc. The lack of expertise results in money and time expenditures. Organization does not realize that they hire a graduate to become the HR Head, which affects the entire system of HR.
And what an irony the misfit himself/herself hires another misfit.
Workforce planning is a very essential tool of Human resource management, to exploit it to the best the organizations have to be well equipped in terms of people, money, time and efforts
Let’s make Workforce planning successful in our organizations.