Try your hands in Creating a Human Resource Management Plan

‘Humans’ are the essence of Human Resource Management and to create a perfect plan is the priority as it ensures that an organization has the right people, with the right skills, in the right jobs.

Why is it important?

This is simple, an organization exists because of people coming together to accomplish certain objectives laid by the founders of the organization. If there is chaos due to the mismanagement of this important resource, the organization will eventually crumble. Every employee in an organization is totally different in every term so to equate them with all is bit of a problem and this is where a Human Resource Managers come to rescue. It is they who can meticulously address this challenge with their strategy.

What Makes a Human Resource Plan Unique?

During the industrial revolution, when Europe witnessed its highest expansion in terms of entrepreneurship, the condition of the employees was hardly reckoned with. The term “Human Resource” became popular after its first use in its modern form was in a report by economist E. Wight Bakke in 1958. Though informally, it was implemented as a goodwill factor by the organizations, however, the real value of human resource was realized pretty late.

Currently, the human resource is directly linked to the growth of the organization which simply can be stated in a simple phrase- “Happy employees brings success to an institution.” With each passing year, Human Resource has evolved as a very crucial role player in the job market, so much so that a bad HR policy can tarnish the image of a reputed organization. This makes all the more necessary to create a perfect Human Resource Plan.

Creating a Human Resource Plan

Developing a Human Resource Plan guides participants through a step-by-step process of developing a human resource plan that includes: staffing, forecasting, performance management, compensation, and employee development.

Before starting with the plan the HR Manager should access the Company Strategic Plan which would prove to be a Marco Polo’s Travelogue if you are treading an unknown path. The Strategic Plan will contain the near future vision of the company, the way it wants to expand, revenue earned and the array of business it is into etc.

One can follow a 6-step approach to create a Human Resource Plan-

Define your human resource needs. This part is heavily involved in the strategic plan. What growth or decline is expected in the organization? How will this impact your workforce? What is the economic situation? What are your forecasted sales for next year?

Ascertain recruiting strategy. To form a correct strategy addressing how you will recruit the right people at the right time.

Selection Process. The process of the interviewing and hiring process.

Determine compensation. In this aspect of the HRM plan, the manager must determine pay scales and other compensation such as health care, bonuses, and other perks.

Develop training. Based on the strategic plan, what training needs are arising? Is there new software that everyone must learn? Are there problems in handling conflict? Whatever the training topics are, the HR manager should address plans to offer training in the HRM plan.

Appreciate performance. Sets of standards need to be developed so you know how to rate the performance of your employees and continue with their development. Maintain a holistic approach.

Defining Human Resource Needs

In this first step, the HR Manager tries to understand the current scenario in depth to look out answers to these vital questions-

What is the current strength of employees?

Which vertical of the business needs more attention in terms of employees?

Was the last hiring process successful?

Were enough employees hired?

Assess the skills that the employees possess and the returns on their skills?

How many vacancies have been created due to resignation and retirement?

Is the sales forecast promising enough to take in new employees?

A report on all these basic questions can streamline the effort and look at a specific area which needs more attention and to get the overall picture.HR managers should also look at all job components and will analyze each job. This exercise brings clarity to the different kinds of skills that are needed to perform a job successfully. Once the HR manager has assessed the number of employees needed in which capacity and time frame they need to be hired, the manager can proceed to the next step- the recruitment strategy also called a staffing plan.

Ascertain a Recruitment Strategy

The process of Recruitment is one of the most important part of the HRM (Human Resource Management) and it forms the entire backbone of the HR function.

Organization=Employes> Selected and Hired by HR Managers

At this stage, it is a challenge for HR Managers to assess the number of people to be hired, skills they ought to possess, and the right time for hiring. Most of the time the candidate to be hired might have all the necessary educational qualification, however, do not exhibit that spark, attitude or personality and it can prove to be a big challenge.

Depending on the type of job, HR team may float an appropriate job description online, or advertise on the conventional medium like newspapers, television ads to reach out to the potential hires.

Sometimes companies resort to outsourcing their hiring initiative to a third party, which is mainly done for recruiting temporary employees on a short-term basis, which can be less expensive.

Selection Phase

Review the job applications and sort out the resumes that seem fit. After sorting, HR Managers can go for a Skype or telephonic interview which narrows down the selection process and the finalist candidates can be called for either a face-to-face interview or Asynchronous video interviewing, wherein the candidates can record their responses. The selection process can start with the HR round and further proceed to domain-specific interviews to be taken by managers from respective domains as they will better possess the skills to assess a candidate.

After completing the selection process, the HR managers can initiate a background check.

Deciding Compensation

Payment is the primary motivation which draws in applicants towards a particular job and most of the time Managers think it is a difficult thing to decide on a compensation. A compensation should be fair and justifiable that keeps the morale of the employees high. Though there can be budget constraints, however, the pay must be fair that an employee can meet his or her basic needs, as no one would like to work by paying from their pocket.

The process of determining the right pay for the right job can have many variables, firstly, the life cycle of an organization can determine the pay strategy. Secondly, the supply and demand for certain skills in the market, economy, region, or area in which the business is located can also be a decisive factor in determining compensation. For example, the demand for graphic designers can be more in Mumbai than in Delhi, in addition to that, the cost of living in Mumbai is higher than in Delhi, so an employee in Mumbai will be paid more than his or her counterpart in Delhi, although they are working for the same organization in the same designation.

Develop a Training Model

It is very crucial for an organization to properly train its employees which helps them to brush their skills and give them time and space to be at the wavelength of the company’s aspirations. The training should be designed carefully and should include-

An Introduction to the Company Culture- Every organization functions in a unique way and introducing the company culture to the new hires can help them understand the values of the organization. Update them more on the different processes and vertical heads to establish a camaraderie.

Skills needed for the job- Your hires might have been into different vertical in the past while working for the past organization so training them to excel the new set of skills should be the priority, this will ensure viscosity within the process and everyone will be on the same page.

Developing Soft Skills- Interpersonal skills also called soft skills are very much a part of corporate culture, as an employee should be good in both external and internal skills. Communication and behaviour form the external set of the skills which is very much required to maintain a healthy workspace.

Appreciate Performance

Everyone likes a pat on their back for the efforts that they have put in. Managers should ensure that even minuscule things are appreciated; often times only big Joe’s grab all the limelight which can demotivate others whose contribution has been less, however, it is every bit of contribution that makes an organisation grow, it is like a matrix where every end is connected with other which makes it whole. Approach this thing holistically and let everyone feel like one family which surely brings out high performance.

All these steps can help you in understanding the entire process which is to be implemented, however, the role of an HR is a fine balance between humanness and official regulations. HR has to go deep in understanding the psyche of the employees and know their expectations and on the other hand, has to fit in the official policies in such a way that both the employees and the organisation is happy.