Question

Part 1: Human Resource Planning
Discuss the development of an effective human resource planning process. Be sure to identify the major players and their functions, components of the process, and suggestions to improve the process.

Part 2: Compensation and Rewards
Differentiate among direct financial compensation, indirect financial compensation, and non-financial rewards. Be sure to include specific examples of each.

Answer 1

Human resource is an essential element for the functioning and growth of any organization. No matter how advacned technologies and systems are being used but they will be a failure if effective and skilled human resource is not added to the organizational operations. But making optimum use of this resource is also possible if an effective strategic planning of the human resource takes place. A human resource planning is the process of staffing adequately for meeting the organizational objectives. Understanding from the human resource what the organizational needs are, where the organization stands currently and what more will be required for the optimum results.

The first step to an effective HR planning process is identifying and accessing the capacity of the present HR of the organization. Evaluating their skills and capacity will give a clear understanding of how they can be utilised for the organizational goals before hiring new employees. This evaluation can be done through several methods. Once the current HR capacity is accessed the forecast will be made for the new requirements of the HR missing to acheive the goals of the organization. This can be done by surveying through demand forecasting and supply forcasting. Demand forecasting makes one understand what is required by the company for growth and supply forecasting shows the resources that are available internally and externally for this growth.

Once the current HR capacity is accessed and forecasting of requirement of additional resources is done the next step is the developing and adding of talent to the HR of the organization. This process involves a number of steps which practised one by one results to the most effective HR management. These steps are recruitment, hiring, selection of new employees to fulfill the requirement of the company, providing the new staff traning and development programs to enhance the skills and give them an understanding of the requirement of the company goals is essential. A proper administration of remuneration and benefits provided to the employees has to be made so that the employees get the feeling of satisfaction at work and give their maximum efforts towards the growth of the organization.

Once the planning process has been made and implemented as per the above steps it is reviewed and evaluated from time to time to see the effectiveness of the same and evaluate how helpful it has been for the ultimate growth of the company. The improvements and developments can then be made accordingly making changes in the planiing process or repeating the steps where required.