Title: PLANNING FOR HUMAN RESOURCES

&

HARVARD MODEL

Submitted By: Kaneez Zahra

Sheeza Babar
Submitted to: Dr. Muhammad Iqbal
Course: Human Resource and
management
Degree: M. Phil Education
(Morning)
Session: 2021-2023

Division of Education, Township

University of Education
 PLANNING FOR HUMAN RESOURCES

What is HRM?

Human Resource Management, according to Michael Beer's Harvard Model of Human

Resource Management, is a strategic approach to the employment, growth, and wellbeing of
individuals working in a business. All management decisions and activities that affect the
connection between the organization and its human resources are referred to as human
resources management.

What Is Human Resource Planning (HRP)?

Human Resource Planning (HRP) is the process of anticipating an organization's future

human resource requirements and deciding how the organization's current human resource
capacity might be used to meet those needs. Thus, it focuses on the fundamental economic
notion of demand and supply in relation to the organization's human resource capacity. This
is the HRP process that assists the organization's management in fulfilling the organization's
future human resource demand by providing the suitable people in the appropriate numbers at
the appropriate time and place. Managing staff may only begin the recruitment and selection
process when a thorough analysis of the HR requirements has been completed. HRP is also
necessary (Somber Anderson, 2021).

HR planning benefits the organization in a variety of ways, including the following:

 HR managers are in the process of predicting workforce requirements rather than

being caught off guard by unexpected developments.
 Prevent the company from slipping into the trap of a changing labour market, which
is a concern shared by all businesses and sectors.
 Work ahead of the curve, as the workforce market does not necessarily expand in
lockstep with the workforce.
 Organizations in boom phase may face the task of meeting the need for crucial set of
skills, capabilities and expertise to meet their strategic goals in order to stand well-
prepared to fulfill the HR needs.
 Considering the organizational goals, HR Planning permits the identification, choice
and improvement of required expertise or competency within the organization. It is,
therefore, appropriate on the part of the organization to choose HR Planning to
prevent any needless hurdles in its team of worker’s needs.
 The management planning definition, often known as the managerial planning
process, is a step-by-step approach for developing a workable organizational plan that
specifies definite goals while utilizing the resources available to an organization (Adam
Haye, 2021).

Managerial planning is responsible for developing an organizational purpose

statement that takes into account both long- and short-term company objectives. The mission
statement generated by the management planning process defines an organization's vision and
strategic direction (Prachi Juneja, 2015).

The concept of managerial planning is critical for reducing uncertainty, engaging in

calculated risk management, and guaranteeing optimum resource allocation and utilization.
Organizations do not always follow the pattern put forth in the managerial planning definition
since contingencies and transitions might occur at any time, requiring a change. The
managerial planning process, on the other hand, is an important part of any company strategy
since it lays the groundwork for firms to consolidate and develop (Steijn, 2014).

IMPORTANCE OF MANAGERIAL PLANNING

With the concept of managing planning established, it's time to consider the significance of
managerial planning, which may be summarized as follows:

• The managerial planning process enhances coordination by bringing clarity and consistency
to important corporate decision-making areas.

• The managerial planning process establishes the goals that a company must try to attain
and, in doing so, provides workers with a clear grasp of what is expected of them in their
different responsibilities. Different divisions within a company can focus on different aspects
of a goal, and the company as a whole can begin to run like a well-oiled machine (Lars,
2014).

• Managerial planning guarantees that the organization's leadership is in charge of the daily
flow of work as well as the long-term criteria that must be met.

While too much control is undesirable since organizations must allow for some adaptability
and flexibility, managerial planning strikes a good balance between control and chaos to keep
businesses running smoothly.
• Managerial planning allows businesses to compare planned or expected outcomes with
actual outcomes, making quantitative and qualitative assessment easier. It also implies that
businesses may plan their growth and determine where and how they want to position
themselves in the market.

STEPS IN MANAGERIAL PLANNING

According to Sandra, 2016 of managerial planning, there are nine phases in the process.

These stages are outlined below in the sequence in which they should be carried out:

1. Project Awareness and Distribution of Resources

Managerial planning guarantees that the organization's leadership is in charge of the
daily flow of work as well as the long-term criteria that must be met. While too much
control is undesirable since organizations must allow for some adaptability and
flexibility, managerial planning strikes a good balance between control and chaos to
keep businesses running smoothly (Jan, 2012). Managerial planning allows businesses
to compare planned or expected outcomes with actual outcomes, making quantitative
and qualitative assessment easier. It also implies that businesses may plan their
growth and determine where and how they want to position themselves in the market
(Sandra, 2016)
2. Receiving Information
This step entails conducting extensive market and industry research to determine
which trends are performing well, which customers to target first, how to continue
growing and expanding, which products to launch, and just about any other
information that can help an organization's goals be more precise. When completing
this research, make sure to double-check sources for validity and establish a clear line
of duty for information management. (Sandra, 2016)
3. Establishing Objectives
The third phase in managerial planning entails defining as clearly as possible the
goals that a business should strive for. Organizations typically choose between two
sets of goals: one for the short term and another for the long term. Aside from
outlining these goals, it's a good idea to organize them into a hierarchy so that the
most important ones get the attention they need. (Sandra, 2016)
4. Expectation
 It is not enough to just set objectives for an organization to have a fair probability of
success. There must also be an attempt to predict how things will turn out in the future
based on historical data, present trends, and a natural ability to read consumer
behaviour and the market. Anticipation, which is reserved for topic specialists, often
entails estimates of demand and supply variations, future price increases, raw material
availability, technology, labour, and government economic policies. (Sandra, 2016)
5. Putting A Definite Path in Place
The most crucial step in managerial planning occurs in the middle, when an
organization's core management is supposed to weigh the advantages and
disadvantages and choose a firm course of action, barring an emergency or crisis. This
route of action lays out the specifics of how an organization is meant to accomplish its
goals, as well as the timelines for achieving them and the resources and individuals
allotted to each stage of the plan. (Sandra, 2016)
6. Evaluating The Course of Action
Evaluation is the underpinning of ongoing performance in every sector. Once a path
or course of action has been established, it must be examined on a regular basis to
identify any flaws or gaps that may be inhibiting optimal performance. (Sandra, 2016)
7. Creating Possibilities
Back-up plans are essential for every organization's endeavor, and this phase is all
about having options in place in the event that the initial plan goes awry. Creating
contingencies, on the other hand, isn't only about abstract thinking; it's also about
resource allocation and tangible processes that can be switched to and implemented
quickly if the initial plan fails. (Sandra, 2016)
8. Implementation Of the Plan
The last phase in the managerial planning process is the point at which everything is
set in motion, which is what companies look forward to the most. Plans must be
implemented in a methodical and planned manner, with essential monitoring at each
level.
During implementation, all units and departments must be in sync, and there should
be no ambiguity about individual or collective duties. (Sandra, 2016)
9. Monitoring And Re-Evaluation
There's always the risk of complacency or inefficiency if a management strategy isn't
properly examined. The monitoring team should be aware of relevant economic
developments and be able to make timely decisions in the event that something has to
 be rectified. Monitoring and reevaluation, on the whole, necessitate minor tweaks
rather than a complete overhaul. (Sandra, 2016)

STRATEGIC PLANNING AND HUMAN RESOURCE MANAGEMENT

Yearly staffing predictions are often used as a foundation for external recruiting, promotions,
and annual training programme planning. However, this one-year planning horizon ignores
long-term company demands such as new facilities, new goods, retrenchment, and
expansions. Long-term career development and long-term planning for the use of human
resources in a business are both important aspects of good human resources planning
(Afrahi,2022). The following are some of the expected advantages of long-term human
resource planning:
1. a better knowledge of how corporate strategies affect human resources.
2. Recruiting experienced personnel far ahead of demand from both universities and the
market.
3. better assignment planning and other staff development activities, such as lateral
moves, to allow for a long-term broadening of management viewpoint.
4. more objective criteria for payrolls, turnover, relocation, training, and other charges,
allowing for better analysis and control of personnel-related costs.
Human resources improve an organization's ability to fulfil its strategic goals in three ways:
cost efficiency, operational effectiveness, and the ability to take on new ventures and
activities. The highlighted criteria can be used by business planners to emphasize the
importance of human resource planning. They also serve as the foundation for the
methodologies that are typically utilized to connect the two planning processes (Shamsul,
2018).
WORKFORCE PLANNING AND FORCASTING

Workforce planning is the process of analyzing, forecasting, and planning workforce supply
and demand, identifying gaps, and determining target talent management interventions to
ensure that an organization has the right people in the right places at the right time to fulfil its
mandate and strategic objectives (Carlos, 2019). Six stages of Workforce Planning and
forecasting are as follows:

1. Strategic Direction
Understand key mission goals and future objectives set by organization leadership and how
the workforce needs to be aligned to achieve them.

2. Supply Analysis

Understand the current workforce and how it is projected to change over time, due to erosion
and other trends.

3. Demand Analysis

Understand the organization's current and future workforce requirements.

4. Gap Analysis

Understand the gaps between workforce demand and supply and to define top priority gaps
with the greatest impact on organizational performance.

5. Solution Implementation

The appropriate workforce interventions and activities to close identified workforce gaps and
enable your organization to meet its strategic goals.

6. Monitoring Progress

Monitor the performance of solutions and their impact on the gaps they were designed to
address, and to continuously improve the solutions to maximize their effectiveness.

Types of Workforce Planning:

There are primarily two types of workforce planning:

Strategic Workforce Plan

A strategic workforce plan is developed to help the organization achieve its long-term vision.
Strategic workforce planning is created by designing a process that proactively anticipates
future human resource requirements. It will ensure that the organization has a quality
workforce needed to meet its business goals. It:

1. Support the organization’s strategic plan

2. Address external workforce factors that affect the entire business
3. Maintain organizational capacity
4. Mitigate risk exposure
Operational Workforce Planning

Operational workforce planning helps in deciding what needs to be done to achieve the
business’s immediate priorities. It aims to create a focused, realistic plan to deliver unit-level
business objectives. It helps to run the day-to-day activities in the company as efficiently as
possible. At this level, it also complements an organization’s strategic plan for the long-term
future.

ORGANIZATIONAL DEMAND AND SUPPLY FOR HUMANS

Predicting future labour demand and supply requires an understanding of current business
requirements and resource capabilities, as well as the availability or supply of relevant market
talent. An organization's demand for labour will depend on a combination of factors at both
the macro and micro level, including the economy, geopolitical relations, government and
regulatory policies, industry development, competitive factors, trends in technology, and
consumer preferences (Fernandez, 2011).

Evaluate Current Resources

The first step in determining labour demand involves assessing existing resources or the
domestic supply of labour. That is, current employees should be assessed on the basis of their
ability to meet expected future requirements, taking into account training, retraining, transfer
and promotion. Estimates of internal workforce recruitment also take into account voluntary
layoffs and turnovers (such as resignations and retirements) (Arrogat, 2011).

Tracking Potential Talent

HR can develop work plans for tracking high-potential talent. Graphic technology can also be
used for succession planning, where HR develops and manages a list of CEOs and other
critical roles. To differentiate between change and succession planning, succession planning
has a broader development purpose. This means that the goal is to prepare highly qualified
people for positions in large companies (Fernandez, 2011).

Using Analysis

From a Manpower Planning Perspective this is one of the main uses of analytics to identify
talent trends and gaps. Above all, performance management data can identify underutilized
resources, highly qualified opportunities and the need for leadership training (Fernandez,
2011)..
External Labour Supply

External job offers are a function of a number of economic and quality factors, including
housing affordability, transport, quality of life and the number and quality of local / regional
educational institutions. Wages, competition for jobs, demographic and immigration trends,
individual policies and preferences and perceptions of usefulness and job structure will also
influence labour availability and participation in the workforce (Arrogat, 2011).

DEVELOPING ACTION PLAN FOR ORGANIZATION

An action plan is a way to solidify your organization's vision. An action plan consists of
several action initiatives or changes brought about by the community (Nolan, 2015).

An action plan is a checklist for the steps or tasks you need to complete in order to achieve
the goals you have set. It’s an essential part of the strategic planning process and helps with
improving teamwork planning. Not only in project management, but action plans can be used
by individuals to prepare a strategy to achieve their own personal goals as well (Nolan,
2015).

Components of an action plan include

1. A well-defined description of the goal to be achieved

2. Tasks/ steps that need to be carried out to reach the goal
3. People who will be in charge of carrying out each task
4. When will these tasks be completed (deadlines and milestones)
5. Resources needed to complete the tasks
6. Measures to evaluate progress (Stamper, 2007).

Why should you develop an action plan?

Here's an inspiring saying. 'People don't plan to fail. Instead, they fail to plan.” Since you
certainly don't want to fail; it makes sense to take whatever steps are necessary to ensure
success, including developing a plan of action (Kelechi, 2008). There are many good reasons
to develop the details of your organization's work into an action plan, including:

1. To give your organization credibility. The action plan shows community members
(including donors) that your organization is well organized and dedicated to getting
things done.
 2. To not miss the details
3. To understand what an organization can and cannot do
4. For efficiency: To save time, energy and resources in the long run
5. For Responsibility: Do what people need to do to increase your chances of doing.

Steps To Develop an Action Plan

Step 1: Define your end goal 

 Specific – well-defined and clear

 Measurable – include measurable indicators to track progress  
 Attainable – realistic and achievable within the resources, time, money, experience,
etc. you have
 Relevant – align with your other goals 
 Timely – has a finishing date 

Step 2: List down the steps to be followed 

Create a rough template to list down all the tasks to be performed, due dates and people
responsible. It’s important that you make sure that the entire team is involved in this process
and has access to the document. This way everyone will be aware of their roles and
responsibilities in the project. Make sure that each task is clearly defined and is attainable. If
you come across larger and more complex tasks, break them down to smaller ones that are
easier to execute and manage (Marcel, 2010). 

Step 3: Prioritize tasks and add deadlines

It’s time to reorganize the list by prioritizing the tasks. Some steps, you may need to prioritize
as they can be blocking other sub-steps. Add deadlines, and make sure that they are realistic.
Consult with the person responsible for carrying it out to understand his or her capacity
before deciding on deadlines (Marcel, 2010). 

Step 4: Set Milestones 

Milestones can be considered mini goals leading up to the main goal at the end. The
advantage of adding milestones is that they give the team members to look forward to
something and help them stay motivated even though the final due date is far away. Start
from the end goal and work your way back as you set milestones. Remember not to keep too
little or too much time in between the milestone you set. It’s a best practice to space
milestones two weeks apart (Marcel, 2010). 

Step 5: Identify the resources needed

Before you start your project, it’s crucial to ensure that you have all the necessary resources
at hand to complete the tasks. And if they are not currently available, you need to first make a
plan to acquire them. This should also include your budget. You can assign a column of your
action plan to mark the cost of each task if there are any (Marcel, 2010). 

Step 6: Visualize your action plan

The point of this step is to create something that everyone can understand at a glance and that
can be shared with everyone. Whether your action plan comes in the shape of
a flowchart, Gantt chart, or table, make sure that it clearly communicates the elements we
have identified so far – tasks, task owners, deadlines, resources, etc. This document should be
easily accessible to everyone and should be editable (Marcel, 2010). 

Step 7: Monitor, evaluate and update

Allocate some time to evaluate the progress you’ve made with your team. You can mark
tasks that are completed as done on this final action plan, bringing attention to how you’ve
progressed toward the goal. This will also bring out the tasks that are pending or delayed, in
which case you need to figure out why and find suitable solutions. And then update the action
plan accordingly (Marcel, 2010). 

ROLES AND SKILL FOR HR

Roles:

1. Recruit candidates

HR must understand the needs of the organization and ensure they are met when hiring for
new positions. It's not as simple as advertising on Indeed: you have to analyze the market.
Consult with stakeholders and manage budget. (Fernandez, 2011)..

2. Hire the right employees

The human resources department is responsible for organizing interviews, coordinating
recruiting activities and recruiting new staff. They are also responsible for ensuring that all
paperwork associated with hiring a person is completed and ensuring that everything from
day one to every day thereafter is done successfully (Fernandez, 2011)..

3. Process payroll

Salary is a beast apart. Each payment day must have a calculation of the fees and hours
collected. You have to pay the cost and have to add and add bonuses. If you think paying
taxes only once a year is a chore, imagine what it's like to work in HR and make sure they're
deducted correctly every pay period (Teresa, 2012).

4. Conduct disciplinary actions

This responsibility may be the reason that HR tends to have a bad reputation. If misused,
disciplinary action can result in loss of valuable employees and litigation or a bad reputation.
However, if handled properly, disciplinary action can result in an employee's success.
(Fernandez, 2011).

5. Update policies

The policy should be updated (or at least reviewed) annually as the organization changes. The
role of HR is to make official policy updates and suggest changes to policies when they no
longer serve the company or its employees. Sometimes policies need to be updated in
response to an event. HR should always be involved and discuss these decisions. (Fernandez,
2011).

6. Maintain employee records

Personnel record keeping is required by law. These records help employers identify skills
gaps to assist with the hiring process and analyze demographic and regulatory compliance.
They also contain personal data and emergency contacts for each employee. (Fernandez,
2011)..

7. Conduct benefit analysis

Staying competitive is of utmost importance when trying to attract top talent. Potential
employees can choose another company with a lower salary if the benefits are more
attractive. HR should regularly check similar companies to see if their interests are
competitive. (Teresa, 2012).
Skills:

The following are the skills for any HR expertise must attain.

1. Communication skills
2. Administrative expert
3. HRM knowledge and expertise
4. HR strategy creation & execution
5. Managing priorities
6. Proactivity
7. Advising
8. Coaching
9. Recruitment and selection
10. Employee experience expertise
11. Command of technology
12. Being analytical and data-driven
13. HR reporting skills
14. Commercial awareness
15. Cultural awareness and sensitivity
16. Wellbeing evangelism
17. Active listening
18. Teamwork (Teresa, 2012).

Harvard Model of HRM

Introduction:

The Harvard School of Beer et al (1984), who devised what Boxall (1992) refers to as the
"Harvard framework," were the other founding fathers of HRM. This framework is founded
on the assumption that the difficulties of historical people management can only be solved via
a process of exclusion:

when general managers have an opinion on how they want workers to be involved in
and developed by the company, and what HRM policies and practices will help them
accomplish that vision. HRM is likely to remain a collection of individual operations, each
led by its own practice tradition, without either a core philosophy or a strategic vision - which
can only be offered by general managers. (Richardson,1997)
 'Today, various demands are demanding a larger, more complete, and more strategic
approach with regard to the organization's human resources,' Beer and his colleagues thought.
'A longer-term view in managing people and evaluation of people as potential assets rather
than just a fluctuating expense,' according to these demands. They were the first to emphasize
the HRM principle that it is the responsibility of line managers. 'Human resource
management encompasses all management choices and actions that impact the character of
the organization's connection with its personnel - its human resources,' they added.
(Paauwe,2001)

The Harvard framework as modelled by Beer et alis shown in Figure 1.3.

Stakeholder
interests:
● shareholders
● management
● employees
● government HRM policy Long-term
● unions choices: consequences
HR outcomes:
● employee ● individual
● commitment
influence wellbeing
Situational ● congruence
● human resource ● organizational
factors: ● cost
flow effectiveness
● work force effectiveness
● reward systems ● societal
characteristics ● work systems wellbeing
● business
strategy and
conditions
● management
philosophy
● labour market
● unions
● task technology
● laws and social
values

The Harvard school suggested that HRM had two characteristic features:

1) line managers accept more responsibility for ensuring the alignment of competitive
strategy and personnel policies;
2) personnel have the mission of setting policies that govern how personnel activities are
developed and implemented in ways that make them more mutually reinforcing. (Beer et
alis,1984)

The Harvard model for HRM is a five-part HR strategy paradigm that includes:

On the left, the model begins with stakeholder interest. Shareholders, management,
employee groups, the government, and others are among the stakeholders. The model of
HRM policy is defined by these interests. Situational circumstances impact these interests at
the same time. Workforce characteristics, unions, and all the other components described in
the 8-box model are all situational considerations. HRM policies are influenced by situational
conditions and stakeholder interests. Recruitment, training, and reward systems are examples
of key HR tasks. Strategic HRM policies, when implemented correctly, result in favorable
HRM results. Retention, cost-effectiveness, dedication, and competency are among them.
These good HRM results have long-term ramifications. These might be personal,
organizational, or social in nature. (Hope-Hailey et al,1998)

HRM Themes According to Harvard Model:

The model classifies HRM policies and practices into our themes as follows:

1. HR flows: Recruitment, selection, placement, promotion, appraisal and assessment,

promotion, termination and the like.
2. Reward system: pay system, non-monetary recognition schemes and so on.
3. Employee influence: clarification of responsibilities, authority, hierarchy and
delegation of powers
4. Work system: definition of work and alignment of people. (Beer et alis,1984)

The above HR practices are centered on four C’s as described in the following:

1. Commitment. HRM policies must help to instill employee loyalty to the company.
The commitment will have two advantages. To begin with, it will improve staff
performance and commitment to their jobs. Second, it will boost a person's self-
esteem and value.
2. Competence. Human resource management policies and procedures will be designed
to recruit, develop, and retain individuals with important skills and expertise.
3. Cost effectiveness. Wages, benefits, turnover, absenteeism, strikes, and other aspects
of HRM policy must all be considered.
 4. Congruence. There must be consistency among and between the HRM rules and
procedures in use. (Beer et alis,1984)
Advantages of Harvard Model of HRM:

According to Boxall (1992) the advantages of this model are that it:

1. includes consideration of a variety of stakeholder interests;

2. acknowledges the importance of 'trade-offs,' either directly or implicitly, between
owners' and employees' interests, as well as between diverse interest groups;
3. expands the scope of human resource management to encompass 'employee
influence,' work structure, and the related issue of supervisory style;
4. recognizes a wide variety of contextual impacts on management's strategy decision,
implying a convergence of product-market and socio-cultural logics;
5. It focuses on strategic decision rather than situational or environmental determinism.
Managerial Implication:

The approach aids HR managers in developing HR strategies for their companies. This
approach provides three key takeaways for practice.

 To begin, HRM policies should be developed with environmental issues and

stakeholder concerns in mind. In other words, the corporate environment and HR
policies must be compatible.
 Second, such HRM policies and practices must have a purpose of achieving employee
commitment, competence growth, and internal cohesion, as well as utilizing cost-
effective techniques.
 Finally, HRM that is founded on the four C's and comes from environmental variables
will result in employee and organizational performance. Because it is built on
stakeholders' concerns and dedication to corporate goals, this is a soft model.

The Harvard model has had a significant impact on HRM theory and practice, particularly in
terms of emphasizing the idea that HRM is a management problem rather than a people
function one. (Beer et alis,1984)

References:

Dessler, G & Varkkey, B. (2015) 14th edition. Humnan Resource Management, Delhi:
Pearson Prentice Hall.
Kandula, Srinivas R., (2014) Human resource Management in Practice: with 300 Models,

techniques and tools, Delhi: PHI Learning Private Limited

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