A Strategic Adaptation of Human Resource Planning in a Dynamic Environment-人力资源规划的动态环境中的适应战略
03-19, 2014
A Strategic Adaptation of Human Resource Planning in a Dynamic Environment
人力资源规划的动态环境中的适应战略
Chapter One Introduction
第一章 引言
第一章 引言
1.1 Background
1.1背景
1.1背景
As the accelerating advancement of globalization, most organizations are increasingly required to clarify their basic mission and main objectives, which may highly based on Human Resource Management. Furthermore, in the recent world, working environment is rapidly changing with an upward rate. This seems that as an important part of organizations, Human Resource Management (HRM) should be ready at all times for meeting a challenge, on the basis of well understanding the core of globalization, variety of labor force, skill demands, quality management, employment development as well as involvement. Additionally, modern HRM not only focuses on the improvement of company productivity, but also makes greater efforts to maintain positive relationships among the enterprises. This means human resource managers should begin to manage the employees through a more global approach.
随着全球化的加速发展，大多数组织都越来越需要明确其基本任务和主要目标，非常基础的是人力资源管理。此外，在当今世界，工作环境发生变化的速率正在迅速上升。这似乎是作为组织的重要组成部分，人力资源管理（HRM）应随时准备应对挑战，良好理解全球化的核心，各种劳动力，技术要求，质量管理，就业的基础上，发展和参与。此外，现代人力资源管理不仅注重企业生产率的提高，也使得更大的努力，以保持企业之间的积极关系。这意味着，人力资源管理者应该开始通过更加全球性的方法来管理员工。
Trace the history to 1973; businesses in America have begun to realize the significance of labor forces on “profit and loss statements” in the international domain, as the first oil embargo happened (Sadarrudin, 2001). In other words, from that time on, U.S. has realized that some oilier nations made great inroads into traditional American markets. However, American businesses have not adeptly become used to this changing situation. As a result, at that period, the U.S. businesses have failed in the world markets. This should be considered as a problem caused by inattentive focus on Human Resource (HR) prepared for the worldwide markets. Consequently, in order to march with the times, HRM should plan as business world changes.
追溯历史到1973年，企业在美国已经开始认识到劳动力的意义上在国际领域“损益表”，作为第一个石油禁运发生（Sadarrudin，2001）。换句话说，从那个时候起，美国已经意识到，一些油腻的国家取得了很大的大举进入传统欧美市场。然而，美国企业还没有熟练地习惯于这种变化的形势。因此，在这一时期，美国的企业都失败了世界市场。这应该被视为全球市场的准备造成注意力不集中专注于人力资源（HR）的一个问题。因此，为了进军的时代，人力资源管理应该规划为商业世界的变化。#p#分页标题#e#
1.2 Structure of this Report
1.2报告的结构
1.2报告的结构
In Chapter Two, some basic definitions associated with this topic should be identified, including HR planning and a dynamic economic environment. Also, the advantages and disadvantages of Human Resource Planning (HRP) along with the traditional as well as more contemporary approaches to HRP will be presented.
Chapter Three is about the most significant part related to the topic. The main purpose of this chapter presented is to demonstrate whether the contemporary approach is more applicable in a dynamic changing environment, both from the applicable and problematic sides. In addition, some other relevant issues associated with the topic in the practice and future will be raised in this chapter.
The final part of the essay will be a short summary of main contents included in this paper.
Chapter Two Basic Definitions and Comparison of Two Approaches to HRP
第二章 基本定义和两种方法来比较HRP
2.1 Definition of HRP
Human Resource Planning is an important part and area of HRM. In general, there are three levels of meaning for this item (Bechet and Maki, 1987):
At first, it can satisfy the needs of qualified personnel in the organizations and departments to ensure the long-term benefits of companies and individuals. Second, as the objectives of the organization and employees achieve with one accord, supply and demand of HR will be balanced. Finally, HRP is proposed for analyzing the human resource needs of organizational change in the business field, and developing the necessary policies and measures to meet these requirements.
In addition, the so-called HRP is the process of predicting the future of the organizations’ mission and the requirements of changing environment on organizations, as well as providing suitable personnel for the changing situation. The purpose of HRP is to make the most effective use of talents with the aim of satisfying the interests of workers and organizations. With this general concept, HRP system contains a number of specific interrelated activities; they are (Burack, 1988):
Personnel file which is used to estimate current human resources such as technology, capacity and potential, as well as to analyze current utilization of these resources. Moreover, HR prediction that is applied to forecast the future personnel requirements including the number of workers required, the predicted number for the required technology portfolio, internal and external labor supply. Besides, action plan is also a part of the activities, that is set out for the purpose of increasing the qualified personnel to make up for anticipated vacancies in the organizations, through recruitment, training, job placement and transfers, promotion and employees rewards. Finally, by examining the degree of achievement of the objectives of human resources and providing information on HRP systems, control and evaluation of HRP can be implemented. All in all, HRP is an equilibrium process of organizing HR supply and demand.#p#分页标题#e#
2.2 Definition of a Dynamic Economic Environment – The Main Transformations in the New Economy
In general, the economic environment significantly influences business activities and consumers. It considers earnings, expenses and resources, which may highly impact on the costs of running a business. Through observing various economic indicators like employment and productivity, businesses can make sense of changes in the marketplace and find out actions they need to take. A dynamic economic environment forced organizations to operate business activities in creating an imperative for being ready to meet current and future employees’ demands. Furthermore, in order to be embedded into the dynamic environment, organizations should also be dynamic. Under a dynamic economic environment, a well HRP for future requirements should be different from recent ones. As stated by Campbell and Moses, 1986 as well as Gerstein and Reisman, 1983, a wisdom HR planner should be effective under various business situations.
2.2.1 Technology
In the 21st century, no one can avoid the transformation of technology, which might progress at the outer boundary of culture, but recently immerse into people’s perceptions and lives. High technology can be able to embed into people’s expression, perception, communication and lifestyles. In one word, in the dynamic economic environment, people are now living in a new era with expanding computers and communication (Kelly, 1998).
2.2.2 Competition
Among businesses, competition became greater than before. More specifically, most organizations have realized a competitive edge by emphasizing on products or services quality; in other words, only making efforts on providing high-quality products or services is no longer enough to let a firm to stay competitive in the global markets. Moreover, apart from the high-quality products/services, some other divers of competition appeared in the dynamic environment such as new entrants, powerful buyers’ existence, and existing rivals. More crucial, in order to meet the requirements of consumers, employees within organizations need to be given larger number of training as well as responsibility to rapidly respond to consumers’ needs.
2.2.3 The Global Environment
According to Mondy, Noe and Premeaux (1999), there are two significant environmental changes in the new context of businesses: development of global competition and the advancement of business deal among different countries. These two changes were created by the advancement in communication as well as transportation.
The trend of development in technology, education and training for employees enables them to be more productive. Meanwhile, businesses took on greater responsibilities to manage operations within the dynamic economic environment.#p#分页标题#e#
2.3 Advantages and Disadvantages of HRP
2.3.1 Advantages
An organization or business should have qualified and efficient HRP in order to be survival and developed in the recent world. Primarily, various factors of external environment such as political, economic, technological and other factors are in a state of flux; it will require organizations and businesses to make appropriate changes. To adapt to those changes, adjustment of personnel number and structure is needed (Schuler, 1984). Secondly, various factors of internal environment including retirement, natural attribution, and recruitment of personnel are inconstant; responses to these changes can be achieved by HRP. Third, in the periods of transition of market economy mechanism, changes of various external and internal factors within organizations will become more intense. In the planned economy system, in addition to attrition and personnel assignment, employees’ turnover seems to be inconceivable. However, in a market economy mechanism, the situation is completely different; a variety of resources involving human resources highly relies on market mechanisms to make appropriate allocation. With the establishment of labor market, a significant flow of talents may become routine. With the purpose of ensuring the efficiency of enterprises, the internal staff structure is also bound to be adjusted and optimized. Finally, a significant increase in new organizations, the transformation of existing companies, as well as the great development of private owned enterprises also put forward new demands for human resource management.
2.4.2 Contemporary Approach to HRP
All in all, the advantages of HRP can be summarized as five categories: correctly setting strategic directions, designing HRM systems, effectively planning workforce, generating needed human resources and investing in HR development and performance.
2.3.2 Disadvantages
Four usual aspects consisted of the disadvantages of HRP. Firstly, identity crisis that means “a time of intensive analysis and exploration of different ways of looking at oneself” (Erikson, 1970), is considered to be a big problem associated with this issue. Next, there is a lack of coordination and cooperation within managers of different departments, as well as a progressive development for HRP. Apart from these, HRP may conduct with less support from the major executives.
2.4 Approaches to HRP
2.4.1 Traditional Approach to HRP
According to Bramham (1994), traditional HRP was mostly consistent with manpower planning that could be regarded as a quantitative approach associated with forecasting supply and demand of labors, although it might cover a wider range of activities such as motivation of staffs, employee perceptions and organizational cultures.#p#分页标题#e#
On the whole, traditional HRP considered that the major activities included were predictions that were proposed for forecasting the future human resources’ quantity, quality and structure of organizations. In most cases, the problems were relatively fixed; it implied that the accuracy and rapidity of forecasting methods has become the focus of HRP contents. Moreover, traditional concepts on HRP were mainly focused on its effects on scientifically predicting and analyzing the human resource demand and supply in the changing environment, and according to that, it could develop necessary policies and measures to obtain the required personnel at right time for right positions, which might lead to long-term benefits for organizations.
Increasingly however, in the practice, the so-called HRP was not useful and then unable to effectively guide other HRM activities.
Considering forecasting methods of traditional HRP, two categories were introduced: qualitative and quantitative methods, which were detailedly elaborated in most previous HRP works. Quantitative methods included the applications of Markov analysis, exponential smoothing, computer simulation, research techniques and models updating, and the qualitative methods involved succession planning, supervision appraisal, etc (Greer, Jackson and Fiorito, 1989).
2.4.2 Contemporary Approach to HRP
On the basis of traditional HRP as well as a constant practice by trial and error under the contemporary markets, a new HRP idea was brought about. That is, combining strategic HRP with capacity-building and mechanism innovation, as to ensure the human resources to meet the requirements of organizations. Consequently, the main content of HRP has been transformed to individual development. With regard to the methodology, emphasizes were put on solving problems rather than blindly-sided stressing on the importance of predictions.
As summarized by Armstrong (2001), “soft” elements of HRP should be added into the contemporary approach along with the existing “hard” ones. They are attraction and maintenance of required people with appropriate capabilities, talents and expertise, problems identification of potential employee turnover, development of well-trained labors who can do contributions to organizations’ benefits by adapting to the changing environment, clear formulation of retention and development strategies which may lower dependence on external hiring, introduction of more flexible work patters in order to increase effectiveness of employees.
What’s more, in efforts to understand the functions and theories of HRP under the changing environment, a number of factors, both regarding the internal effects and the aspect of external relations, will probably be regarded as the guidelines. On one hand, when developing a strategic HRP, managers are concerned about the organizations’ management philosophy, as well as its employees’ characteristics. For example, in the late 20th century, Pepsi Company has implemented a new policy of smoke-free facilities, which enabled it to attach an approach to one of its core objectives: ‘protect the most vulnerable and helpless nonsmokers’. Also, this action has resulted in healthier workers, which could contribute to the reduction of absenteeism. This appears that the corporation has highly analyzed the reasons why its employees were absent from work (Liu, Lu, Zhao etc. 2006, p.6). Moreover, some other elements, such as the system of a company (knowledge-related or technology-intensive), workforce competency, the organization’s regulation or tactics, should also be considered to be the internal impellers. On the other hand, influenced by the new era of knowledge economy, most HR planners’ performances demonstrate that talent and technology have been regarded as two cornerstones in organizations’ strategy making. Compared to tradition HRP, which centralized the work as a universal goal, modern HRP not only focuses on the improvement of company productivity, but also makes greater efforts to maintain positive relationships among the enterprises (Liu, 2004).#p#分页标题#e#
Chapter Three Appraisal of Contemporary Approach to HRP and Further Issues
第三章 HRP的当代方法和增发考核
第三章 HRP的当代方法和增发考核
3.1 Appraisal of Contemporary Approach to HRP
HRP has traditionally been applied to ensure that there are right people in right positions at right time. Also, it previously focused on short-term benefits and concerned more about line management thoughts. Whereas, due to the increased environmental instability, greater shifts in demographic factors, significant changes in technology and more intense international competition, the changing requirements of HRP is presented. The contemporary approaches are increasingly the advanced interaction between top managers and HR planners. On the basis of contemporary HRP’s greater concentration on long-term as well as short-term solutions and increased involvement in business programs, the benefits of this new approach for businesses are obvious, although it could still be problematic. Both sides will be illustrated and discussed in the following.
3.1.1 Applicable Side
3.1.1.1 Satisfying Human Resource Needs
Contemporary HRP should occur within the organizational context that involves predicting future human resource requires of organizations and plans for actions to meet those needs. As described by Mills (1985), the advanced HRP takes more initiative in establishing aims of organizations and then implementing them via a variety of programs such as training, appraising, compensating and personnel assigning. Especially in this ever changing world, appropriate competences are required for people in where the organizations need them. As a consequence of developing employees and increasing their satisfaction, organizations’ productivity will be boosted. Furthermore, some trendy data can be gathered by HRP and then applied to assess the efficiency of ongoing activities; once there are problems, planners can be informed to conduct revisions.
3.1.1.2 Integrating Business Planning with HRP Forced by Environmental Uncertainties
Currently, a number of uncertainties have been created due to the changing dynamic economic environment. This forces organizations to focus on integrating business and HRP planning with a longer perspective. Johnson and Scholes (2002) have identified one of the most important elements of contemporary HRP: business plans and strategies that benefit organizations through “its configuration of resources within a changing environment” and satisfying stakeholders’ anticipations.
3.1.1.3 Scenario planning
This is a new introduced element of HRP models, which was designed to deal uncertainties and unknowns in the environment. The benefits of introducing in this element compared to traditional approaches are realized by replacing the traditional supply and demand predictions. According to Mintzberg’s (1994) argument, scenario planning was enhanced by the advancement of computer technology. This can help to broaden vision in management and future issues.#p#分页标题#e#
3.1.1.4 Increasing Effectiveness of Human Resources
Resource Planning of HRP in recent market places is highly related to the use of both internal and external labor forces. As Armstrong identified (2003), two major contents of resource planning are recruitment planning and “employer of choice” planning. Obviously, HRP is a benefit to enterprises’ boom by searching for better approaches to recruitment. This appears that how HR planning acts as the role in helping execute the business strategy should be examined from the hiring process. Consequently, HRP will be applicable if it has absorbed more competent recruits through this innovative HR plans. In other words, potential HR of an organization can be discovered through proper HRP practices.
3.1.1.5 More Flexible Planning
Differing from the traditional planning, contemporary approaches are more flexible by offering greater operational flexibility, enhancing staffs’ capability utilization, decreasing employment costs, and facilitating achievement of downsizing as well as raising organizations’ productivity (Armstrong, 2003).
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3.1.1.6 Organizational Design and Staffing Strategies
By recognizing the importance of human beings, in building quality into a product, the staffs in recent organizations were frequently trained to follow rules and standards. Moreover, as illustrated by some practical cases such as Toyota, have established the key strategy-personnel which succeeded by thoroughly getting local employees to ‘inherit’ the organizational cultures, in trying to get more in the relevant markets (Toyota Motor Corporation, 2003). This means it is necessary to be concerned about the development of employees, and then meeting the challenges from global markets.
Furthermore, According to Maslow’s theory, every human being has hierarchy of five needs, and for every human being the level of their needs varies; therefore, to be human resource managers, recognizing different stages of employees’ needs and finding ways to satisfy those needs, the managers would succeed in winning the willingness and diligent participations (Liu, 2004). Besides, recognition from employers should also do a contribution to employees’ job satisfaction, and even more motivational. Thus, recently, employees have increasingly generated more motivational factors such as achievement, recognition, growth, advancement and interest in the job, responsibility for enlarged task. These factors are yielding employees’ motivation rather than movement.
3.1.1.7 Supportive Communication
With the purpose of supporting an accurate and honest communication, the major attributes in the text book (Carlopio, Andrewartha and Armstrong, 2005) should be noticed by analyzing the applicable factors of contemporary HRP approaches. For example, the importance of feedback appeared to be certified since some barriers would have emerged in one-side communication. Also, it is an emphasis on some attributes of supportive communication. Supportive listening is more valuable than one-way listening; it implies that open questions or feedback should be included in a supportive communication. As reflected in recent HRP practices, a lot of tasks are required to be fulfilled by groups instead of individuals.#p#分页标题#e#
3.1.2 Problematic Side
In Sisson and Storey’s (2000) words, “To put it bluntly, much of the decentralization that has taken place [within companies] is an 'illusion'. Things may 'happen' at local level, but they are not 'decided' there. Many of the key issues of employment relations policy are likely to be determined at higher levels in the organization. Shifts towards harmonization or the introduction of quality circles or TQM are good examples. The same is true of specific conditions of employment.”
This posted the major problem associated with recent HRP arrangements. Hence, as applying decentralised decision making, an organization may not benefit from fully utilizing the scarce resources. Also, the decisions made by centre managers may not be more feasible although they have higher level of capacity and knowledge.
3.2 Relevance of HRP to Contemporary Organizations
As summarized by Torrigton, Hall and Taylor (2005), relevance of HRP to contemporary organizations can be observed in the following aspects:
Firstly, by training programs for center employers, the relationship between management and employees can be effectively handled. Second, the most qualified personnel will be identified for ensuring the match of capabilities to fill in vacancies. Apart from these, consistency between business departments’ accomplishment and the objectives of organizations has significantly impacted on future business activities. Finally, internal staffing promotion can be ensured through successful management reviews with participations on HRP throughout the organizations including design of new staff orientations.
In practice for example, Employees at China Hewlett-Packard Company were graded into ten ranks and promoted on the grounds of their high performance. Additionally, HP’s training fell into five categories: technique, management, specializations, project management and leadership (CRF Company, 2007, p.299). This is why the company has been in a dominant position in the global enterprise market. As mentioned by Tan and Torrington (2004, p.247), training and development, as one part of the job of HR planners, is the process of improving employees’ knowledge and skills, which may also be valuable in their future tasks. All in all, by upgrading staffs’ capability, HRP contributes substantially to organizations’ achievement.
3.3 Possible Future Directions
Affecting by the growth of multinationals, it is necessary for HR managers to be concern about strategic planning in the dynamic situations. Theorists like Brews and Hunt (1999) have indicated that in an unstable environment, HRP is more relevant to businesses but needs to focus on adapting to changes such as the more intense competition. In order to adapt to the dynamic environment, HR planners should conduct more systematic planning strategies, and then to meet changing requirements. As illustrated by Javidan (1984) and Kukalis (1989), there is a proof that the American organizations have responded to greater uncertainties and complexities of environment with more encompassing planning.#p#分页标题#e#
Chapter Four Conclusion
第四章 结论
第四章 结论
Among all the management functions, HRP has the most of strategic and initiative characteristics. Science and technology are constantly changing with the competitive environment becomes more unpredictable; this will not only make difficulties for manpower forecasting, but also make HR prediction more urgent. There are a great number of benefits brought by HRP established in the dynamic environment such as consistence between organizations’ objectives and staffs’ development, satisfaction of future HR supply and demand needs, strategic scenario planning, timely access to necessary personnel, and realization of organizational strategic objectives, etc. It appears that in various management functions, HRP is playing the role of bridge and link under the changing environment.
All in all, it is necessary to conduct HRP in recent organizations in order to ensure the practicality and effectiveness of planning. In terms of the long-run planning, strategic HR planning is disposed to make clear the key steps and programs and refine them into concrete executable programs, preferably make a precise plan of responsibilities and requirements for organizations. In the future, enterprises’ HRP will more highly focus on key aspects of business activities such as data analysis and quantitative assessment, and will be more cautious on the scope of HRP.
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