Introduction
Human Resource (HR) plans and Human Resource Management (HRM) strategic plans both serve important roles in a company’s management, even though they are distinct approaches with different objectives. Consequently, in recent years, there has been an increase in research on the importance of HR plans and HRM strategic plans for organizational success. However, HR plans to focus on day-to-day operations such as recruitment, training, compensation, and benefits administration, which is in contrast to HRM strategic plans that aim to align HR practices with the strategic vision of the company to achieve long-term success.
HR plans are reactive, addressing specific issues that arise during day-to-day operations. For example, an HR plan may involve responding to employee complaints or introducing new policies and procedures for onboarding new workers. HR plans also include developing budgets for recruiting and training expenses and ensuring that workplace safety standards are met (Sherpa, 2021). The primary objective of HR plans is to ensure the efficient functioning of HR operations within an organization.
On the other hand, HRM strategic plans focus on aligning HR operations with long-term organizational goals. This involves defining clear objectives for the company and incorporating them into HR policies and practices. HRM strategic plans also involve researching and selecting tools and systems that can help optimize HR processes, such as recruitment and employee performance tracking software. HRM strategic plans aim to ensure that HR operations align with the overall organizational strategy, allowing companies to achieve their long-term goals.
Although they have distinct objectives, HR plans, and HRM strategic plans share some common features. For example, both involve the development of policies and procedures that help guide HR operations within an organization. For example, a company may develop a policy on handling employee grievances, which could be included in both an HR and an HRM strategic plan. Similarly, both plans involve research and analysis into tools and systems that can help optimize HR operations.
A further similarity between HR and HRM strategic plans is that both offer businesses a road map for managing their human resources. Both plans center on the aims and goals of the company, as well as the tactics that will be implemented to accomplish those goals and objectives (Al-Qudah et al., 2020). They also examine the strategies used for succession planning, recruiting, and employee retention. In addition, they involve how the performance of the employees will be evaluated, as well as how the employees’ growth and training will be overseen.
In general, the difference between HR plans and HRM strategic plans lies in their objectives. HR plans are focused on day-to-day operations such as recruitment and training, while HRM strategic plans aim to align HR practices with the company’s long-term vision. However, both types of plans share some common features, such as developing policies and procedures to guide HR operations and researching and selecting tools for optimizing HR processes. HR plans and HRM Strategic Plans are both necessary for an effective human resources management program. The two plans should work together to ensure that the organization’s goals are met promptly and efficiently. By taking a holistic view of the organization’s human resources management strategy, HR personnel can ensure that all aspects of the program are managed effectively.
Order of Importance of the Areas of Focus in HRM
For HRM to be effective, organizations need to focus on all areas of HRM. However, after careful consideration and analysis, I believe that the most important area of HRM is employee relations. Employee relations involve establishing a harmonious working environment by developing productive relationships between employers and employees (Bray et al., 2020). This creates an environment where employees and employers can work together collaboratively, respectfully, and productively.
In second place comes HR planning, an essential HRM component that involves forecasting the organization’s staffing needs in light of its goals, objectives, and strategy. It also entails identifying gaps between the current workforce and the organization’s future needs (Hancock et al., 2020). HR planning is essential for ensuring the organization has the right mix of skills and talent to achieve its goals in a timely manner.
The third area of focus, in terms of importance, is the analysis and design of work. It involves analyzing job tasks and then designing jobs to maximize employee efficiency, productivity, and satisfaction. It includes breaking down jobs into tasks, defining roles and responsibilities, and defining job requirements and competencies. Job analysis and design are performed to gather and analyze data pertinent to a specified job profile.
Fourth on my list is recruiting, which involves creating a recruitment strategy to attract suitable candidates for the organization’s open positions. It also involves determining the most effective recruiting channels, developing job postings, screening resumes, conducting interviews, and assessing candidates. Every company requires an effective HR department and managers to streamline recruiting so every employee can contribute significantly.
Fifth is selection which is an area that involves selecting the most suitable candidates from the pool of applicants. There is a broad variety of options open to companies when it comes to selecting new staff. These options are contingent on factors like the size and composition of the existing workforce and the resources at their disposal. It consists of evaluating and screening potential employees, carrying out reference checks, issuing job offers, and extending employment contracts.
Sixth on my list is training and development, which involves designing, delivering, and evaluating training programs for current and new employees to ensure they have the knowledge and skills to do their jobs effectively. It also involves assessing training needs and developing individualized learning plans for employees. Human resources’ duty in training and development is to help workers develop to their fullest capabilities. Organizations that invest in their workers likely see positive returns on such investments.
Seventh is performance management which involves creating a system of formal feedback, goal setting, appraisals, and rewards that help employees reach their full potential and achieve organizational goals. Companies today are becoming increasingly aware of the need to update their management systems to align with modern business practices. As a result, performance management has gained increasing interest among businesses, and they are heavily investing in it.
Finally, eighth is compensation which involves determining an organization’s pay structure, developing job descriptions and salary bands, negotiating salaries with new hires and existing employees, administering benefit plans, and managing payroll. The ability to create a competitive pay plan for current workers depends on a solid understanding of the various forms compensation may take. This will aid in the recruitment of new employees as well as the retention of current top performers.
Conclusion
In conclusion, HRM plays a critical role in the success of any organization. Employee Relations is the most important area of HRM because it is essential for creating a harmonious working environment and fostering productive relationships between employers and employees. In addition, HR Planning, Analysis, Design of Work, Recruiting, Selection, Training and Development, Performance Management, and Compensation are important. Without effective HRM practices in all these areas, organizations cannot attract the right talent or retain and motivate their employees.
References
Al-Qudah, S., Obeidat, A. M., & Shrouf, H. (2020). The impact of strategic human resources planning on the organizational performance of public shareholding companies in Jordan. Problems and Perspectives in Management, 18(1), 219. Web.
Bray, M., Budd, J. W., & Macneil, J. (2020). The many meanings of co‐operation in the employment relationship and their implications. British Journal of Industrial Relations, 58(1), 114-141. Web.
Hancock, B., Lazaroff-Puck, K., & Rutherford, S. (2020). Getting practical about the future of work. McKinsey Quarterly, 1, 65-73. Web.
Sherpa, S. (2021) Paradigm Shift in Management Practice in the Era of Industry 4.0. IJEMR, Vol 11 Issue 10. Web.