Why UK HR Managers in the 21 Century Should Consider Strategic Resourcing in Their Resource Planning Activities Essay

The word has changed, but not everyone has realized it. For last decade conditions of success of the companies in the market have undergone serious changes. The most important strategy for organisations now is selection and development of personnel. Human Resource managers help to generate strategy for personnel and to find excellent staff. The aim of Human Resource Management is to effectively manage people. HRM has two ways of treating workers hard and soft, however some managers likely to be in the middle. Individuals who believe in the hard approach to HRM consider members of the workforce to be a resource”, so managers who use this approach doesn’t care to much about employees needs. Soft approach is completely different. “In soft approach managers consider their workforce to comprise individual human beings who contribute to the organization”. (Maund L. 2001:5) According to these we can say that HRM is the way managers manage employees. As a worker it is very important to know in what way the organisation is going to treat you.

Vetter (Vetter, 1967:15) defined human resource planning as the process by which management determines how the organization should move from its current manpower position to its desired position. Through planning, management strives to have the right number and the right people, at the right places, at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefits. Why employers use strategic resourcing? Nowadays in the whole world we have demographical, and technological changes.

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In compliance with national statistics in UK the retirement age for women is 60 and for men is 65 years. “The percentage of the population aged under 16 has been declining since 1995 and, for the first time ever. has dropped below the percentage of the population of state pensionable age. Average growth in the population aged over state pensionable age between 1981 to 2007 was less than one per cent per year, however, between 2006 and 2007 the growth rate was nearly 2 per cent. ” (http://www. statistics. gov. k/cci/nugget. asp? id=949, 03. 11. 08). From BBC news we can see that pension age for both women and men will rise in near future. “Under current government policy, the state pension age for women will gradually rise from 60 to 65 between 2010 and 2020. And for both men and women it will rise further, from 65 to 68, between 2024 and 2046. ” (BBC news, 23. 10. 08). As we can see the world for business became unpredictable. “In the UK there are currently 21 people over the age of 65 for every 100 people of working age.

After 2010 this number will start to rise significantly. By 2030 more than a quarter of the population will be over 65. The coming years will therefore see a substantial change in the age profile of the workforce, as the population as a whole gets older and a greater proportion of young people remain in full-time education for longer” (Torrington D, 2008:108). Therefore there will be some changes in the labour force. There are more and more organisations who want to attract talented labour force by providing them some benefits. People from 50 to 54-year-olds will constitute the largest economically active group in 2020, the activity rates of women will increase over this period, partly because, by 2020, women will have to work until the age 65 therefore they can claim the state pension” (Hook C, Foot M. 2008-46). As we know in the recent years number of women in the workforce has increased, especially in part time jobs. “In 1980 the employment rate for women of working age was 59 per cent, since when the figure has risen steadily, while that for men has declined somewhat. ” (Torrington D. , Taylor S. 008-109).

Changes in demographical structure influence organisation work therefore HR managers should update program for personnel recruitment to have competitive advantage. For instance: to implement some training, rewards, and pension benefits. Each organisation has strategic plan for people recruitment. As the world have significant changes, people interests change as well. To have best workers, managers need to define their needs, desires and how to attract them to work with them. Some firms encourage people by developing their skills, promotion possibilities or flexibility. Recruitment is a critical activity, not just for the HR team but also for line managers who are increasingly involved in the selection process. ” (http://www. cipd. co. uk/subjects/recruitmen/general/recruitmt. htm, 04. 11. 08). Initial stage in HRM is employment which includes first of all such processes, as a set and selection of staff. It is important to select right people as the work of the company depends on it. To find the suitable person for certain work HR manager should gather exact idea about character of the work, qualification and qualities of the applicant which are required for the job.

It is an essential part of preliminary preparation at a set and selection of staff which is often underestimated. To gather these information is usually conducted in three stages: 1) the analysis of the contents of work; 2) the description of a kind of work 3) requests to staff. It is important not to forget about internal employee. Providing opportunities for development and career progression can help to retain employees. There are a lot of methods to find employees outside of the company. Such as advertisement in the newspapers or in company website.

However many organisations use special recruitment agencies or recruitment consultants. They help to the organisation find right people. “Recruiting on this basis also helps avoid complaints of unlawful discrimination. After selection, a good induction programme is the best way to help a new employee settle into the organisation and become effective in the shortest possible time. ” Also there is a big interest in the idea of outsourcing HR. There are many factors which can explain the interest in outsourcing.

Such as globalization, technologies, “the need to expand operations internationally leads to the employment of overseas workers by employers who are not familiar with prevailing employment rights and customs in foreign countries. They are therefore obliged to hire external advisors. ” (Taylor S. 2005-137). Since 1990s the war for talent begun because of big change in the economy and technology. As the technology develops fast, is become harder for the business to survive in this uncertain environment. As we can see technology plays very important role in our lives.

Every time organisations need to update their technology in order to compete with their rivals. Not everyone can cope with new technologies doing some recruitment in order to find right people. Human Resource Managers have found some ways for companies to win the war for talent. First is to avoid layoffs, “when money is tight, avoiding layoffs requires creativity” (Raymond A. , 2004:14). Second is to “lure them back” in other words to attract previous workers to return when company get better. Third one and I think very important is to teach managers to save workers and create good atmosphere in a workplace. The war for talent and talent management affects all aspects of HR from recruitment and selection to reward and motivation and learning and development” (Foot M. , Hook C. 2008:20). In the 21st century we have many large businesses, so they can’t provide good contact between employees. Human Resource Managers help them to provide this connection between employees. “In the past, these workers performed the administrative function of an organization, such as handling employee benefits questions or recruiting, interviewing, and hiring new staff in accordance with policies established by top management.

Today’s human resources workers manage these tasks, but, increasingly, they also consult with top executives regarding strategic planning. They have moved from behind-the-scenes staff work to leading the company in suggesting and changing policies. ” (http://www. bls. gov/oco/ocos021. htm, 23. 10. 08). Talented people are the valuable asset of the company. To carry out all activities – find, motivate and keep the talented employee can make only very talented HR-managers. Talents can be different, and it is necessary to find out the particular area in which employee good at.

It is important to find clever worker in the sphere which company need. That is way manager need to have strategy in recruitment. There are many organisations with high performance because they have best employee involvement. If the organisation involves workers in decision making, take their ideas into account and consult with them, in this way a diverse workforce can be committed to a common goal of the enterprise. Labour market could be ‘tight’ or ‘loose’. In ‘tight’ labour market employer should compete for the people they need, because there are more jobs available than people who is seeking for a job.

In ‘loose’ labour market is easier to fill free vacancies, so it is opposite of the tight labour market. Therefore if the labour market is tight, employers have some difficulties to fill the jobs and they have “skills shortage”. Because of skills shortages, employers are lowering their expectations when recruiting people and cutting back on capacity and quality levels. Skills shortage can appear because of many factors. Sometimes it is possible that employer can’t find person that are needed. Because of the demographic changes, companies can also face skills shortage.

Employers have to compete in the labour market with others, as he wants to get the best workers. “The professional HR manager will always be aware of this constraint and of the need to operate effectively as a labour market competitor. This will ensure that the organisation is best placed to secure the services of the people it needs. Effective labour market competition involves the following: Understanding the dynamics of the labour, considering the long-term implications of management actions, acting to bolster the organisation’s labour market reputation. (Foot M, Hook C. 2008:47-48) For instance as I have mentioned above the birth rate has decreased, but the population is increasing because people live longer than before, so there is more old people in the labour market. As a result it will be harder to find and keep young talented workers. Organisations need to encourage people who are still in the labour market to extend the length of their paid working lives. Organisations need have strategy because world became unpredictable.

The resourcing function can thus be usefully said to comprise a set of management activities that facilitate the achievement of four fundamental groups of Personnel and Development objectives: staffing, performance, administration and change management. ” (Taylor S. 2005:2) “Older workers aged 50 and over, women workers and those who are employed in small firms and establishments will increasingly determine the future development of the British labour market. ” (http://www. esrc. ac. uk/ESRCInfoCentre/Images/fow_publication_4_tcm6-6058. df, 01. 11. 08) “Developing more flexible and dynamic workplaces is seen not only as a necessary means both to improve the country’s comparatively poor productivity performance and increase business competitiveness but also make Britain a much fairer and more inclusive society. ” (Taylor R. p6. ) “Recruitment is a form of business competition, and it is fiercely competitive. It begins with a clear statement objectives, based on the types of knowledge, skills, abilities, and other characteristics that an organisation needs.

Objectives are also based on consideration of the gender and ethic group representation of the workforce, relative to that of the surrounding labour force. Finally , a recruitment policy must spell out clearly an organisation’s intention to evaluate and screen candidates without regard to factors such as race, gender, age or disability. The actual process of recruitments- number, skills mix, levels, and the time frame within which such needs must be met. ” (Wayne F. Cascio,2006:226)