An Investigation into the Strategic Process of Human Resource Planning in Private Sector

Abstract

Human resources is about managing employees and their well-being. Planning for HR therefore requires that you, as the small-business owner, match employees with the job functions that best meet their skills and interests. As your business grows and changes, you will find that you'll need to have a supply of employee candidates lined up to fill important positions in the organization. Successful organizations are able to manage HR as part of the business's overall strategy plan. In other words, you are able to recruit employees that help you meet the business's goals. An important part of planning for human resources is forecasting demand. This comes in a number of forms: first, you'll want to have some idea of where the business is headed with its sales and revenue. Do you expect to sell 25 percent more this coming quarter than last? If so, you'll probably need to take on new staff to help meet this demand. The point is that the financial success of your business is intimately tied to its human resources planning. If you don't have enough employees, you can't meet demand, and not meeting demand means you turn away otherwise happy customers Strategic HR planning is an important component of strategic HR management. It links HR management directly to the strategic plan of your organization. Most mid- to large sized organizations have a strategic plan that guides them in successfully meeting their missions. Organizations routinely complete financial plans to ensure they achieve organizational goals and while workforce plans are not as common, they are just as important. Even a small organization with as few as 10 staff can develop a strategic plan to guide decisions about the future. Based on the strategic plan, your organization can develop a strategic HR plan that will allow you to make HR management decisions now to support the future direction of the organization. Strategic HR planning is also important from a budgetary point of view so that you can factor the costs of recruitment, training, etc. into your organization's operating budget. The present paper investigates the strategic process of human resource planning in private sector.