What is the Difference Between HR Management & HR Planning
There are quite a few responsibilities within an organization that falls upon the human resources (HR) department’s shoulders. Not only are they required to oversee the hiring and firing of all employees, but they are also performing several other duties, as well. An HR department’s tasks often include staying on top of upholding a positive work culture, developing compensation packages for staff, undertaking performance reviews, handling workplace grievances, upholding legal compliance, and even drafting wellness programs for their employees. The difference between HR Management & HR Planning is discussed in further more detail.
However, their duties do not end there, which is where human resource management (HRM) and human resource planning (HRP) come into play. While there is a significant overlap between these two concepts, there are also several chief differences between them. Knowing the difference between HRM and HRP can make all the difference in a business’s success, not only today but also in the upcoming years.
What is Human Resource Management?
When many people think of HR, it is actually human resources management that is coming to mind. The HR department of an organization is often responsible for more than just onboarding new staff. They are the part of the business which oversees the organization’s employees, from start to finish. They are responsible for hiring and exit interviews, and their tasks can include ensuring that fair labor practices are enforced.
However, HRM does not stop there. Once an employee is brought into an organization, HRM will follow through with making sure these new hires are provided with the tools and resources to correctly perform their jobs. This can include training and onboarding and even incentive programs. They also help the new hire understand their role within the organization. HRM also makes sure that management knows how to work with their team, providing them with the necessary training to oversee their employees. In short, HRM’s function is to stay on top of every aspect of an organization’s employees, from upper management to entry-level.
What is Human Resources Planning?
If human resource management is the department that oversees the hiring and maintenance of staff, then human resources planning is the branch that looks to the future of these hires. It is one thing to bring on new employees, but another one entirely to actually maintain them. Within every business is the expectation of turnover but maintaining a high retention rate of these staff is a fairly common goal of HRP. HRP’s primary responsibilities include training their eye on what a company is currently doing and planning for where they want to be in the pending months and years.
In the past, HRP was not a consideration for many businesses. However, with the introduction of new legal policies and competitive incentive packages, the need to help ensure that staff stick around became evident. HRP not only on what an employee is doing and receiving now but what role they will play for the company in upcoming months (and even years). Not only are they invested in the role of these staff, but they are also focused on the synergistic relationship between these employees and what they mean for the company in the future.
HRP’s tasks include taking a hard look at the numbers and setting a budget. They then will draft positions and outlines for the responsibilities of each role necessary for achieving these goals. Once they finalize these job descriptions, they will then craft necessary compensation packages for these potential new hires, ensuring they draw top candidates to their business. They also closely examine the company’s current financial position and compare it to its sales projections, which can help mitigate a scenario where there are gaps in hiring or capital.
The Roles of HRM and HRP Within a Business
Aside from the rare exception, most organizations reasonably want to remain profitable in the coming years. Because of this understandable desire, the roles of human resource management and human resource planning cannot be understated. By employing HRM and HRP, a business can help ensure that they are operating at peak efficiency today and maintain this momentum tomorrow.
While many considerations go into the hiring and training staff, HRM and HRP ensure that major pitfalls that can derail an organization are avoided. Not only can they help make sure that current staff are both beneficial to an organization and pleased to be employed there, but they can also see that a business is a solvent, staffed, and stable — both now and into the future.