impact OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PRODUCTIVITY
1.1 BACKGROUND OF STUDY
Human Resource Planning is the personnel process that attempt to provide adequate HR to achieve future organizational objectives. It includes forecasting future needs for employees of various types, comparing these needs with the present workforce and determining the numbers and types of employees to be recruited or fazed out of the organization's employment group (Harvey & Bowin, 1996).
human resource management is a set quantity of work in an organization that focuses on the management of staffing, giving direction to the people who work in the organization and issues related to the people such as hiring, employee motivation, remuneration, communication, wellness, safety administration and training.
Human resource management also focuses on the personal management and organizational development. It is mandatory for every organization to have a formal human resource department in their organization and now a day's human resource management is seen strategically by the top management.
Kaplan and Norton (1992) defined organizational productivity as a set of financial and nonfinancial indicators capable of assessing the degree to which organizational goals and objectives have been accomplished.
The challenge for any organizational performance is generally indicated by the effectiveness of an organization to achieve its objectives and efficiency to use the resources properly, satisfaction of employees and customer innovation, quality products and services and thereby ability to maintain unique human resource pool (Dyer & Reeves,1995; Katou & Budwar, 2007).
Increasing and intense competitiveness in the market has made performance the most important issue for profit and non-profit organizations for businesses. It comprises of three specific areas of firm outcome which includes financial performance, product market performance and shareholder return (Richard, Simon & Brut, 2009).
It is very vital for managers to know which factors influence an organization's performance in order for them to take appropriate steps to initiate them. Organizational performance guarantees the continuity of the organization to be competitive in a global market place.
Organizational performance can be seen as a multi-dimensional construct consisting of more than simply financial performance (Baker & Sinkula, 2005). It describes the extent to which the organization is able to meet the needs of its stakeholders and its own needs for survival (Griffin, 2003). In this sense, organizational performance depicts that an organization is achieving its mission and goals.
Organizations are seeking to create much competition between them, taking more market, more customers, more sales, etc. Rapid changes stemming from globalization, advancement of information systems and other factors have caused higher competition.
Many organizations are driven by the market to set their goals in their performance. Some of the goals are: cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, improving productivity and quality, innovative products.
The realization of the set goals will be achieved through the human resources management in organizations. Workforce, as the key to success, will enable the achievement of organizational performance (Luftim, 2014).
Human resources are regarded as one of the most important resources of today's firms. Human resources management is more important than other competitive resources because these people use other assets in organization, create competitiveness and realize objectives.
Thus firstly, organizations must understand the expectations of their workforce in order to achieve the desired performance. The realization of the expectations of employees will enable the desired behaviorof employees in the organization. Some of the desired outcomes of the organization in managing their workforce are: competence, cooperation of employees with managers, cooperation ofemployees between them, showing the capabilities of employees; motivation, commitment and satisfaction; attitude and presence; employee behaviors (Luftim, 2014).
Human resources of a company is said to be one of the important capital is playing such an important role in the operation of an organization. Pfeffer (1994) argued that human capital has long been held to be a critical resource in most firms.
Companies are now trying to add value with their human resources and human resource (HR) department has been set up in order to manage their human capital, whereas organization in last decade, managed their human capital through personnel department which is only a small division of the company. The process of managing the human capital is called human resource management (HRM).
Although people's understanding of Human Resource Planning (HRP) differs, the general objective is how to use scarce talents in an effective way in the interest of work and organization. Human Resource Planning may be seen in its entirety as an effort to anticipate the future of the organization and to provide personnel to fulfill that organization and to satisfy customer's demands.
According to Bulla and Scott (1994) as “the process of ensuring that human resource requirements of an organization are identified and plans are made for satisfying those requirements”. This view suggests several specific, interrelations activities that together constitute HRP which include personnel inventory, human resource process, action plan, control and evaluation.
In order to gain competitive advantage over the competitors, Gould (1984) explained that different advantageous ways are found out using strategic human resource functions, thus showing that these functions play a critical role in making a company competitive.
Biles (1980) elaborated that organization's ability to achieve strategic objectives is discriminated by its human resource in following three ways: cost economics, capacity for effective operations, ability to take new enterprise and change the operations.
The overall goal of performance management is to create a culture as high performance in which individuals and teams to take responsibility for the continuous improvement of business processes and their skills and contribute in achieving the targets set by managers.
In particular, management performance can be expressed as the approximation of individual objectives of employees with organizational objectives provided that employees support the culture of the organization.
It provides for expectations to be defined and agreed in terms of role responsibilities and accountabilities (expected to do), skills (expected to have) and behaviors(expected to be) (Armstrong, 2006).The organizational performance variables of included features such as product quality,
customer satisfaction, new product development, ability to attract employees, ability to retain employees, and relationship between management and employees. The ultimate goal of a business organization is higher financial performance or maximization of wealth for stake holders (Becker& Huselid, 1998; Horngren, Foster, & Datar, 2000).
Nonetheless, attaining the organization's goals depends upon the extent to which its organizational performance is reached (Katou & Budhwar, 2007). Organizational performance is generally indicated by effectiveness (whether an organization can achieve its objectives),
efficiency (whether an organization uses resources properly), satisfaction of employees and customers, innovation, quality of products or services, and ability to maintain a unique human pool (Delaney & Huselid, 1996; Dyer & Reeves, 1995; Guest, 2001; Katou & Budhwar, 2007
1.2 STATEMENT OF THE PROBLEM
In this research we will identify those determinants that can improve the organizational performance like selection criteria, hiring, training, and giving benefits and if they would follow those tools of human resource planning it would be easy to manage employees and in return it will increase the organizational performance.
Human resource planning encompasses the process that identifies the number of employees a company requires in terms of high quality and quantity; hence it seen as an ongoing process of regular and structured planning. This planning process confirms that employees are in the right number as required i.e.
there is neither a surplus of manpower nor a shortage. Parker and Caine (2006) states that it is important for organizations to have the right number of manpower in order to avoid unwanted situation i.e. issue of shortage and excess of manpower.
Hassan (2003) states that failure to properly articulate and implement the three fundamental functions of human resource planning which include labor forecast, managing demand for employees and available supply in market and keep a balance between labor supply and demand predictions will pose a great problem to organizational productivity in terms of cost and expertise (skilled personnel) thereby reducing their competitiveness.
Gould (1984) holds that in order to gain competitive advantage over the competitors, different advantageous ways are found out using strategic human resource functions, thus showing that these functions play a critical role in making a company competitive.
Human resource planning if not systematically carried out cannot bring to equilibrium demand and supply of manpower in organizations (Armstrong, 2006).
Organizations are unable to meet their human resource needs. There is a problem of inadequate right number of people to carry out the essential duties in the Organizations.
They lack sufficient employees in the organization for production and render delivery of services as demanded by the customers in terms of service delivery, industrial production, capacity utilization and drilling operations which affects the performance of the firm negatively.
Shortfall of human resource needs delay in the production process and reduces the profit of the organization. Shortfall of human resource needs in Organizations might result to poor completion of task and assignment, extra workload, increase in fatigue, high stress intensity, and decrease in the firm's ability to meet set goals (Flippo, 1984).
By having the right number of human resources at a specific time to carry out organizational services, it will help the organization to increase in their performance and productivity which in turns helps to achieve the strategic objectives and goals of the organization very easily.
It is on these problems that this research is carried on to ascertain the impact of human resource planning on organizational productivity.
1.3 AIMS AND OBJECTIVES
The aim of the study is the impact of human resource planning on organizational productivity. Other specific objective includes:
1. to determine the relationship between human resource planning and organizational productivity.
2. to examine factors that improve on organizational productivity.
3. to ascertain the impact of human resource planning on organizational productivity.
4. to examine the importance of human resource to organizational productivity.
5. to examine the challenges of organizational productivity.
6. to proffer solutions to the challenges of organizational productivity.
1.4 RESEARCH QUESTION
1. What is the relationship between human resource planning and organizational productivity?
2. What are the factors that improve on organizational productivity?
3. What is the impact of human resource planning on organizational productivity?
4. What is the importance of human resource to organizational productivity?
5. What are the challenges of organizational productivity?
6. What are the solutions to the challenges of organizational productivity?
1.5 STATEMENT OF RESEARCH HYPOTHESIS
1. H0: human resource planning has no significant impact on organizational productivity.
2. H1: human resource planning has no significant impact on organizational productivity.
1.6 SIGNIFICANCE OF STUDY
The research will be valuable reference material for students, organizations, other interested persons and researchers who can expand it by conducting research in similar study. Recommendations made by the study would enable organizations to have more insights on the need to shift from ad hoc planning to more systematic and scientific based planning of their human resources.
This study will provide a better understanding and is expected to contribute to the already established knowledge on the impact of effective human resource planning on organization performance.
The study will be beneficial to organizations, in the sense that it tend to expose all forms of challenges and prospects they are likely to encounter with the human resource planning. Regulatory Bodies will find this study to be of immense use because they will know to what extent corporate entities recruit effective human resource.
In addition to the above, a lot of work is written as a result of the endless argument on the impact of effective human resource on organization performance. This study is another contribution to the existing work on the study of the impact of effective human resource on organization performance.
Finally, it would enable ISD to appreciate the effectiveness of Human Resource Planning on the organization. the field, hence research is a continue circle, other research would find this one as a contribution to further researches so as to provide more information on this topic.
1.7 SCOPE OF STUDY
The scope of the study will cover impact of human resource planning on organizational productivity.
LIMITATION OF STUDY
1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
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1.9 DEFINITION OF TERMS
HUMAN RESOURCE: are those inherent and special traits as skills, creative abilities, experience, talents, energy, knowledge competence, belief etc. that a person possesses which are needed and put to use by a person or a group of people to achieve set goals and objectives (Stewart, 1994).
PLANNING: is the process managers use to identify and select appropriate goals and courses of action of an organization. They resultant plans that come out of planning process details the goals of the organization and specifies how they are intended to be attained.
Like people, organizations can not have it all done, so in a scale of preference, they need to determine their pro-rates and concentrate their time, energy, and other resource to release their aims (Stewart, 1994).
ORGANIZATION: According to Stewart (1994) “organizations are set up to achieve purposes that individuals to achieve on their own organization they provide a means of working with others to achieve goal….like to determine by whoever is in the best position to influence them…
A key characteristic of organization is their complexity”. Individuals in organization, depend on each other‟s effort through interactions and which enable them work to words the realization of common goal. Laid down structures however fashion out how they relate to others.
It can also be define as a group of people identified with shared interest or purposes, example business or school.
HUMAN RESOURCE PLANNING: is defined as a rational approach to the effective recruitment, retention, and deployment of people within an organization including, when necessary, arrangements for dismissing staff. It is therefore concerned with the flow of people through and sometimes out of the organization.
It is however not a mere numbers game but rather concerned with the optimum deployment of peoples knowledge, skill creative abilities, etc. and hence qualitative and quantitative.
Human resource planning has been defined by Denisi and Griffin(2nd Edition) as „the process of forecasting the supply and demand for human resources within an organization and developing action plans for aligning the two‟.
PRODUCTIVITY: the state or quality of being productive. The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input
IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PRODUCTIVITY
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