The Management of Human Resources
Few managers would deny that people are critical to the success of an enterprise. In fact, most would agree that people are the most important asset of an enterprise. Yet, the development of these human resources is seldom managed in a systematic manner, although much time and money are invested in the recruitment, selection, and training of people. It is true that many companies engage in some human resource planning activities, but it is equally true that many of these companies encounter difficulties with a piecemeal approach to staffing. Usually there is little or no integration between human resource planning and other managerial ...view middle of the document...
FIGURE I SYSTEMS APPROACH TO HUMAN RESOURCE PLANNING
Enterprise Plans Internal Sources Organization Plans External Sources Number of Managers Required Analysis of Needs for Managers Management Inventory Recruitment Selection Placement Promotion Training and Development Appraisal
Leading and Controlling
Internal Environment Source: Developed by the author
--Personnel Policies --Reward System
Arizona Business © Heinz Weihrich
Manpower planning also affects leading and controlling as seen in the model. For instance, well-trained managers exert leadership by creating an environment in which people, working together in groups, can achieve enterprise objectives and at the same time accomplish personal goals. Similarly, the selection of qualified managers also affects controlling by, for example, preventing undesirable deviations from becoming major problems. Human resource planning, naturally, is situational; it is carried out within the enterprise, which, in turn, is linked to the external environment. Therefore, internal factors of the firm - such as personnel policies, organizational climate, and the reward system - must be taken into account. Clearly, without adequate rewards, it is impossible to attract and keep quality managers. Similarly, the external environment cannot be ignored; high technology demands well-trained, well-educated, and highly skilled managers. In fact, technology often demands a multiprofessional work force with managers trained in several professions such as engineering, physics, and mathematics. Another external factor may be a small supply of managers coupled with great demand for managers in the labor market, which may prevent an enterprise from growing at a desired rate. It is evident, then, that staffing is a complex process, but this does not mean that it cannot be systematic. On the contrary, effective staffing demands a systems approach. The model shown in Figure I presents an overview of human resource planning and needs to be discussed in greater detail. Enterprise Plans For effective manpower planning, one must start with enterprise plans (enclosed with broken lines in Figure I), which are formulated in the planning process. In planning, opportunities for the enterprise are identified, and objectives are set. Alternative courses of action are developed, evaluated, and selected. For example, a favorable market for a new energy-saving engine may be identified. Consequently, a specific market share objective - let us say 3 percent by the end of the year - for the new product line may be considered reasonable. This may be based on the premise that the Gross National Product will grow at G percent annually. To be sure, alternative product lines are also considered; but, based on the data, the energy saving vehicle is selected as having the best prospects for success. Because the enterprise operates in an uncertain environment, contingency plans are also developed. It is...