4.1.2. The Planning Process
The initial and most crucial step in the planning process involves comprehending the business’s requirements. This requires identifying the business’s values, mission, goals, and objectives, and ensuring that your plans are in line with them. The mission and values serve as the foundation of your aspirations and offer direction for decision-making and solving challenges. Goals and objectives should span short and long-term horizons. Short-term goals and objectives are typically set on an annual basis to support the achievement of long-term goals for your business (Payne-Palacio, 2015).
The consequences of poor hiring practices and planning are profound. Employees who are not the right fit for your business are unlikely to stay long and can negatively impact your business in the long-term. Staff turnover is expensive and results in lost customer service, increased training time, low productivity, poor team morale, and the expenditure of valuable time and resources spent searching and interviewing to fill vacant positions. Making poor hiring decisions can cost you the equivalent of 6 to 18 months of a new employee’s annual salary (Laurano, 2015).
The planning process in HRM involves strategic foresight to ensure that the right number of employees with the right skills are available at the right time (Reynolds & Mcclusky, 2013). This process includes:
Workforce Analysis: This step involves assessing current workforce capabilities and predicting future needs based on the organization’s strategic goals. It helps identify gaps in skills and the number of employees required.
Job Analysis and Design: Job analysis entails defining the duties, responsibilities, and qualifications needed for each position. This information is crucial for creating job descriptions and specifications, which are essential tools in recruitment and selection.
HR Forecasting: HR forecasting predicts the organization’s future labor needs and involves analyzing both internal and external factors. Internal factors include retirement rates and internal promotions, while external factors cover labor market conditions and economic trends.
Succession Planning: Succession planning ensures that there are qualified candidates ready to fill key positions as they become vacant. This involves identifying and developing internal employees who have the potential to move into leadership roles.
Strategic HR Planning: This aligns HR strategies with the organization’s overall strategic plan. It involves developing HR policies and practices that support organizational goals, such as talent acquisition, employee development, and performance management.
