Human Resource Planning: the role of people, its challenges and advantages, and compensation strategy
Every organisation – profit or non-profit in nature – considers employees as its most fundamental asset. In order for such organisations to maximise their assets, they should manage the employees’ working conditions as well as its immediate environment in the most intelligent and efficient way possible ( 1998). As and (1996) suggest, human resource must be allowed to be involved in making work-related decisions to further improve the organisational structure. Furthermore, the proper way of structuring of tasks among the employees strengthens the organisational performance (, 1989). As various operating industries are aiming for competitive advantage and sustainable development among its management and operations, there are numerous actions that are being implemented and directed to the eventual success and growth of the company’s human assets. Similarly, globalisation issues increases the pressure among the industries and intensifies market competition. In competition, there is motivation in every business to improve and develop their objectives. For an enterprise to succeed in local or global competition, hence, there is a continuous plan to develop human resource management techniques such as planning.
This paper presents a comprehensive discussion on how human resource or people in the designer restaurant organisation can contribute to its human resource planning. Also, it critically analyses the potentialities of compensation strategy on whether or not it will benefit the designer restaurant in achieving its strategic direction.
The Role of People in Human Resource Planning
Planning is commonly known as the process of formulating in advance as organized behaviour or action. While it is true that people do not always plan their actions, it is inherent for any organisations to plan. However, whether dealing with the context by which planning is occurring or whether on the individual or organisational level, the process takes shape according to the prevailing attitudes, beliefs and goals that are involved. Planning is absolutely important for future human resource needs and possibilities. The firm's objectives should reflect standards of success in financial and competitive performance, as well as acceptable levels of risk and rates of long-term growth ( 2004) in the process of planning. The essence of human resource planning is the presence of a concrete plan of getting the right people particularly the employees as well as coaches in the given right place and time (and 2000). (1995, ) provide a definition of HR planning as an attempt to predict future business and environmental demands and needs on an organisation and to similarly provide competent people to carry out business needs and gratify demands. Human resource planning is not simply a component of the HR function but it is perceived as a process that focuses on identifying an organisation's labour needs under varying conditions and at the same time developing the interventions and initiatives essential to satisfy those identified needs ( and 2000). HR planning is an essential aspect of human capital development ( and 2001, ). and added that human resource planning includes "job analysis, career planning, and other activities designed to identify what is best for the organization as a whole" (). Thus, it is a very essential as aspect of HR function towards every organisational growth and achievement.
HR experts and organisational leaders are involved in performing related series of tasks that ensure suitable human resources particularly on its identification, recruitment, selection, and development. They do so to improve business results and to remain at full alert, poised to do battle at a moment's notice. The knowledge and management of an organisation's human resources is pivotal to its responsiveness. In order to achieve organisational optimum performance, the role of people and organisational management needs to change from reactive to proactive. If it is to be used to an organisation's competitive advantage, it needs to go beyond merely attracting and retaining good people who will work in specified jobs. Management should also strive to gain a complete understanding of its workforce and develop organisational systems and processes that enable individuals to add value within a larger organisational unit ( and 1989). Then the question is: how the various people in the designer restaurant organisation can contribute to its human resource planning efforts.
Treating the employees as champions and as significant aspect of the organisation naturally results to other positive outcomes. Positive outcomes may come in form of a very constructive suggestion from an experienced member of the workforce. and (2000) welcome the input and recommendations of employees, particularly those who show a high level of mastery in his/her given area of expertise. For the given case, the employees of the designer restaurant must freely air their comments, suggestions, and feedbacks. It is identified that upper members of the organisation are responsible for the major decision making and taking mechanisms but the important contribution of employee’s suggestions is also given of sufficient value. A good suggestion from the labour force may result to the improvement of the overall organisational performance ( and 2000). A number of empirical studies have concluded that understanding people and organisational practices have a significant effect on the organisation, which leads to high performance and productivity (, and 1999). One good example that identifies this relationship was the study conducted by and (1996). Utilizing 590 profit and non-profit-oriented firms, the researchers concluded that HRM practices like staffing, selection, and training are positively associated with organisational performance. At the organisational level, HR professionals engage in human resource planning, as well as recruitment and selection, redesigning the organisational system (including culture, structure, managerial practices, and work environment), and compensation and remuneration program ( and 2000, ).
Employees’ suggestions must be acknowledged properly by the management. As organisational performance is achieved through HRM functions, they mould the employees as significant contributors to the firm ( 2002). In return, the learning that is experienced by the employee in the working environment particularly in the designer restaurant is applied. Having the appropriate skills that are honed to the maximum level, people and organisational management practices will subsequently lead to the attainment of various goals of the organisation. From this relationship, it is then appropriate to conclude that the understanding of people and organisational management directly connects to the success or failure of the organisation. And the recognition of valuable suggestions counts a lot.
Challenges and Advantages in Human Resource Planning
The core value of human resource planning as well as other HR functions like recruitment and selection is the enhancement of organisational competitiveness and renewal of existing capabilities that serve as the motivating factors of the whole organisation ( and 2000). Today's HR highly developed extensively in its sophistication and strategic planning processes ( 2004).
Human resource planning is a method of systematically arranging the future. It also includes putting into place a plan designed to address upcoming performance problems or productivity and quality requirements. Thus, the advantage of such process is the reduction of risks and threats that create impact to the whole organisation and its productivity. By addressing unknown variables through HR planning, organisations have the opportunity to support and configure their expectations to guarantee definite and positive outcomes. Failing to do so would lead to uncertainties that will eventually create another organisational difficulty. The failure to conduct human resource planning endangers the organisation's future success.
Similarly, human resource planning is incorporated with the organisation's strategic plan that mainly involves development as well as other organisation-wide initiatives, which reveals a strong interdependency among other HR activities such as employee recruitment, selection, orientation, appointment, performance management, the learning and change process, career development, and compensation and rewards ( and 2000, ). If the process is not integrated in approach, it cannot optimistically create and develop the type and quality of labour forces needed to guarantee developmental organisational regeneration and competitive inclination.
The challenges of HR planning include the needs of the business, competitive pressures, and future HR trends and requirements ( and 2000, ). It is presupposed that organisations have their individual business needs and requirements. These may refer to the needs of better business returns, productivity, quality, value, competence, safety, and customer satisfaction. These needs likewise create anxiety within the bounds of the organisation, hence contributing to the other pressures directly related to the employees. To address such, a smart organisation should learn to anticipate resurging occurrences and how the quality and quantity of human resources can provide the given business needs. In general, businesses are motivated to meet future organisational needs, for this is also a determinant of organisational growth. For the issue of competitive pressures, this is apparently connected to the emerging culture of competition among the various industries in the global marketplace. An organisation is given the option to fight such pressures or succumb to its effects. To solve this, it is important for organisations to immediately formulate business solutions that can adequately respond to their competitors and among these solutions are the sufficient and competent human resources. This is practically effective if incorporated with the benefits of employee training and development. Lastly, the HR function is facing future trends that basically affect and transform its conventional functions. It is necessary to forecast future HR requirements as a result of emerging trends for the reason that the organisation will be ready with whatever circumstance that will occur. Thus, it will condition itself by having increased workforce quality and quantity, project outcomes, and minimise potential organisational hazards especially in the HR activities.
The Benefits of Compensation Strategy in Achieving Strategic Direction of Designer Restaurant
Human resource management literatures proved that employee performance and productivity – individual or team, is likely interconnected with an agreeable remuneration system. Hence, managing remuneration, reward, or compensation is an important HR function. Given the existing circumstances regarding compensation present in the case of designer restaurant, a compensation strategy is a good action to solve such issues. Primarily, compensation serves as a very persuasive motivational factor in any working environment.
According to and (2004, ), employees become committed to perform well if organisations value and reward them especially in their set jobs. As a result, the organisation accomplishes more and it can then reward employees more and attracts and retain more talented employees. This leads to even higher organisational performance. It also involves developing a variety of HRM practices that motivate people to peak performance with accompanying rewards. Staffs, in turn, are more committed to the organisation and more responsible for their own behaviours (contribution, learning, development, etc.).
HRM practices can also influence levels of motivation through the use of performance appraisals, pay-for-performance incentives, and internal promotions systems based on merit (, , and 2003, ). HRM practices can also influence the design of work so that highly motivated and skilled employees can use what they know in performing their jobs ( and 2002, ). Giving incentives on a favourable performance appraisal is an example of a positive reinforcement that will impact the attitudes and behaviour of employees particularly those who show efficiency and mastery of the job. This mechanism falls under performance management functions handled by HR managers.
However, there are some positive and negative consequences in giving incentives as compensation strategy. Incentives work as a positive reinforcement when used as a motivational factor and reward system ( 2001, ). It motivates employee to work for a common goal. On the other hand, rewards and incentives insinuate competition among employees, thus, breaking the perspective of teamwork ( and 2004, ). A compensation system that only rewards individual performance is not consistent with sustaining teamwork ( 1995, ) because the compensation system tells employees which behaviours will be rewarded and which will be punished (. 2004, ). If the system strictly reinforces individualistic behaviour, without any consideration for collaboration or collective goals, then teamwork behaviours will be inhibited.
In relation to the traditional system of incentives and incentives based on customer satisfaction in a variety of industry, the both possess similar operations. There is no significant difference in performance management except to the fact that they involve two different workforces but still working on one objective –growth in the case of designer restaurant operations. The potential solution to a balance incentives or rewards management lies in the hand of an effective HR manager and efficient HR function.
References
0 comments:
Post a Comment