HUMAN RESOURCE MANAGEMENT IN ENTREPRENEURSHIP
Learning Objective
By the end of the lesson the reader should be able to: -
i) To examine the concern of human resource management
ii) Define planning as used in human resources
iii) Describe the process of HRP
iv) Define staffing and the process of staffing
Human Resource Management (HRM) concerns the human side of the management of
enterprises and employees’ relations with their firms. Its purpose is to ensure that the employees of
an enterprise, are used in such a way that the employer obtains the greatest possible benefit from their
abilities and the employees obtain both material and psychological rewards from their work.
Planning for Human Resource
The people in an organization represent the most important single resource. Planning for the Human
Resource is seen as a key responsibility of every manager. Systematic Human resource planning is
essential as it serves as a guide to the management of Human Resource.
In recent years’ interest in Human Resource Planning has significantly increased due to certain factors;
such as, shortage of certain skills, technology changes, organizational chair demographic
changes, legislation and union pressures.
It is important for human resource practioners to familiarize themselves with this important task Human
Resource planning is a process of determining the number and the kind of human resource required in
the organization for a specific period in the future. Planning means makings decision in advance.
Forms of Human Resource Planning
i) Strategic Planning
This is the process of setting long term objectives and deciding actions to achieve the Strategic
HR plans involves an assessment of the future needs of the organization - both the external and
the internal supply of staff over the long run.
1
, ii) Tactical/Operational Planning
These are short plans designed to deal with specific problems that might disrupt strategic plans. Tactical
HR plans provide action plans which are put into effects plans may include recruitment, promotions,
training and transfers.
Objectives of Human Resource Planning
1) To acquire and retain the right number and quality of the human resource
2) To forecast on the likelihood of the HR deficit and surpluses and provide corrective mechanisms
3) To develop the kinds of the HR that will adopt to the changing organization environment.
4) To Develop a reservoir of skilled Human Resource which limits the extent of external
recruitment
5) To estimate the cost of the Human Resource. HR plans facilitate planning for the labour cost, that is, the
pay structure and benefits.
i) Succession planning: - HR plans facilitates career succession planning for employees
from one position to another. It also provides for management succession and
development.
ii) Labour turnover. The HR plans to assist in identifying employees who retire, die, resign
or become incapacitated and therefore provide replacement.
The Process of Human Resource Planning
1) Analyzing organizational plans
The mission, vision, objectives and strategic plans of the company are analysed. This may include
plans about technology, production, marketing, finance, expansion and diversification. It is important
to study the organizations plans because all manpower plans stem from the company level of
organization of activity.
2) Manpower demand forecast
On the basis of corporate plans, the future needs of HR in the organization are anticipated. This
involves the number of people and skill levels required. It is necessary to make projections for new
positions to be created and the vacancies arising from the current manpower. It is also important to
identify and specify jobs for each department. Staffing requirement need to be established in
consultation with the heads of departments.
2
Learning Objective
By the end of the lesson the reader should be able to: -
i) To examine the concern of human resource management
ii) Define planning as used in human resources
iii) Describe the process of HRP
iv) Define staffing and the process of staffing
Human Resource Management (HRM) concerns the human side of the management of
enterprises and employees’ relations with their firms. Its purpose is to ensure that the employees of
an enterprise, are used in such a way that the employer obtains the greatest possible benefit from their
abilities and the employees obtain both material and psychological rewards from their work.
Planning for Human Resource
The people in an organization represent the most important single resource. Planning for the Human
Resource is seen as a key responsibility of every manager. Systematic Human resource planning is
essential as it serves as a guide to the management of Human Resource.
In recent years’ interest in Human Resource Planning has significantly increased due to certain factors;
such as, shortage of certain skills, technology changes, organizational chair demographic
changes, legislation and union pressures.
It is important for human resource practioners to familiarize themselves with this important task Human
Resource planning is a process of determining the number and the kind of human resource required in
the organization for a specific period in the future. Planning means makings decision in advance.
Forms of Human Resource Planning
i) Strategic Planning
This is the process of setting long term objectives and deciding actions to achieve the Strategic
HR plans involves an assessment of the future needs of the organization - both the external and
the internal supply of staff over the long run.
1
, ii) Tactical/Operational Planning
These are short plans designed to deal with specific problems that might disrupt strategic plans. Tactical
HR plans provide action plans which are put into effects plans may include recruitment, promotions,
training and transfers.
Objectives of Human Resource Planning
1) To acquire and retain the right number and quality of the human resource
2) To forecast on the likelihood of the HR deficit and surpluses and provide corrective mechanisms
3) To develop the kinds of the HR that will adopt to the changing organization environment.
4) To Develop a reservoir of skilled Human Resource which limits the extent of external
recruitment
5) To estimate the cost of the Human Resource. HR plans facilitate planning for the labour cost, that is, the
pay structure and benefits.
i) Succession planning: - HR plans facilitates career succession planning for employees
from one position to another. It also provides for management succession and
development.
ii) Labour turnover. The HR plans to assist in identifying employees who retire, die, resign
or become incapacitated and therefore provide replacement.
The Process of Human Resource Planning
1) Analyzing organizational plans
The mission, vision, objectives and strategic plans of the company are analysed. This may include
plans about technology, production, marketing, finance, expansion and diversification. It is important
to study the organizations plans because all manpower plans stem from the company level of
organization of activity.
2) Manpower demand forecast
On the basis of corporate plans, the future needs of HR in the organization are anticipated. This
involves the number of people and skill levels required. It is necessary to make projections for new
positions to be created and the vacancies arising from the current manpower. It is also important to
identify and specify jobs for each department. Staffing requirement need to be established in
consultation with the heads of departments.
2
