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Effective HR planning is critical to organizational success

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Question

Effective HR planning is critical to organisational success. Discuss the relationship between HR managers and line managers in achieving the objectives of HR planning, including: 

  • Ensuring that talented employees are available and correctly allocated; 
  • The skills mix and number of employees is appropriate;
  • Recruitment and retention are optimised;
  • Employee engagement is central to line management. 

Solution

In this changing economic, competitive environment, Strategic human resource development and effective Human resource planning play a vital role in building a competitive advantage for any organization. As part of the essay, the discussions would majorly range from understanding the contribution of human resources in sustainable growth and explore the impact of the strategic human resource management in HR planning. To extend, the contribution of HR managers and line managers would also be considered on the basis of understanding the manpower needs and its importance in achieving organizational goals. Such understanding would be backed up with theoretical implications by use of Resource-Based View model. 

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Strategic Human Resource Management is a methodology which aims at all the human resource management processes that include recruitment, training, compensation, rewarding and retaining the employees with the strategic focus on aligning the employee's goals and the organization goals at their best (Guest 2011). Human resource management does not work individually, but interacts with other departments, understands their operational and functional goals as well as organizational goals. HRM drafts the strategy to motivate the employees to work together to achieve organizational goals without compromising on employee goals (Guest 2011). 

On the other hand, Human Resource planning is the continuous process of efficient and organized planning for obtaining the optimum benefit from the most important asset of the organization i.e. Manpower (Mehmood Aslam 2013). It ensures that employees are best fit in jobs as per the different skills they possess. It focuses mainly on analysing and managing the manpower demand, how to obtain it and maintain its supply as well as managing the balance between its demand and supply. It is also an ongoing process which focuses both on short term goals of all department requirement to organizational goals of flexible labour as per change in the business environment (Mehmood Aslam 2013). 

In this competitive world with globalization at its peak, organizations face numerous challenges with respect to human resource from required skill shortages, the vigilant labour market, ageing population to diversity (Ulferts 2009). Effective HR planning plays an important role in the strategic human resource management process as all the processes and procedures should be developed aligning the people's strategy with the organizational strategy and goals. HR strategy should focus on achieving the short term to long term goals of the organization ensuring that it has the right people in right jobs with right skill sets, with the right attitude and aptitude and trained in the right way.

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