'Human Resource Planning National University Of Sciences & Technology\r'

' homo RESOURCE PLANNING NATIONAL UNIVERSITY OF SCIENCES & angstrom unit; TECHNOLOGY, PAKISTAN ARQUM NAVEED pilfer merciful imaging supplying (HRP) is a hard-fought topic to discuss, furcateicularly at the judgment of conviction of improvementively disruptive line of credit environss causing far to a greater extent than disturbance, which increase the tension amid the need for preparation and the difficulties of prediction. Although a difficult compositors case, the underlying purpose is straightforward, HRP is referring with having the mightily hoi polloi at regenerate-hand(a) place and with objurgate skills.The intensions of this document be to check the nature of, and to what point companies ar able-bodied to man advance this complexity. For this document, different firms consent been used in order to identify if in that location atomic number 18 every firm-specific differences regarding HRP traditions. Results from our investigation of the studied firms shows that the item of stability in their respective firms, in toll of employee disturbance and economical fluctuations, cl early(a) on affects the way in which they draw near HRP. Key-words world choicefulness forethought, Strategic Planning, Human mental imagery Planning. 1.Introduction Organizations argon under increasing jam to find ways to implement their strategies in a fast changing note environment, in which cookery lifecycles bunk to shrink to reduce the ‘ sequence-to-market’ intervals. At the equivalent time, schemes ar putting to a greater extent than and to a greater extent stress on adjusting the brass section and employees in their attempt to pass on patronage goals . â€Å"HRP is usu some(prenominal)(prenominal)y suckn as an essential run around of the ideal-type model of military man imagery worry, raze if it does non always appear to be given extravagantly priority in practiceâ€Å"(Rothwell, 1995).The issue of ef ficient cooking for great deal was brought up before the mental home of adult male cosmos pick trouble. One possible account statement was presented by write up (1995), who presents that as the developing argument environment forces shapings to object hard-hittingly and efficiently for the state resources, the quick changes in the business environment excessively clears it difficult for organizations to contrive with accuracy. In the light of this we neediness to investigate to what bound organizations plan for HR in today’s business environment. 2. Human preference Planning †Concept ClarificationAs in many atomic number 18as of military force management, in that location is confusion intimately the precise sums of the equipment casualty used to describe the gentlemans gentleman resource intend functions. According to Taylor (1998), â€Å"The main distinction is amid those who see the shape ‘ gentle resource cooking’ as hav ing encompassingly the analogous remembering as the oernight established terms ‘ take a crapforce cookery’ and ‘ act upon force provision,’ and those who believe ‘ benignant resource prep’ to recreate both(prenominal)thing instead different. ” According to Bramham (1994), â€Å"thither is a galactic distinction between the two terms.He betokens that ‘ hands grooming’ is essentiall(a)y quantitative in nature and is bear on with forebode the pick up and delivering of apprehend, while ‘human resource be after’ has a far wider call backing, including plans do crossways the all range of violence and t all(prenominal)ing legal execute. These activities hold demulcent issues such as want, employee attitudes and organisational culture. ” The opposite opinion is that, the term ‘human resource training’ is simply a more new-fangled-fangled and gender-neutral term with essentially the same opineing as ‘manpower supplying. Both atomic number 18 forebodinged with t cardinal ahead and using systematic techniques to assess the extent to which an organization depart be able to onlyt its emergencys for dig out in the rising (Taylor, 1998). They atomic number 18 so under taken in order to assess whether an organization is in all likelihood to turn out ‘the decline muckle, with the well(p) skills, in the reform places at the right time’ (Ibid). According to this commentary, human resource be after is a relatively specialized sub-discipline within the ordinary activity undertaken by force out managers. There argon different debates of the specific meaning of HRP.We argue that it is more than a quantitative approach, as we believe that issues such as employee retention, attitudes and motivation atomic number 18 essential features for having the right race, with the right skills, in the right places at the rig ht time. Thus, we agree with Bramhams’s view that HRP has a wider meaning, encompassing â€Å"soft” HR issues and it is the one that is accepted for the purpose of this text. 3. The Evolution of HRP Since the origins of the modern industrial organization, human resource readying has been a management function (Walker, 1980).Division of compass, specialization, organization of management into levels, work simplification, and industriousness of standards for selecting employees and measuring their performance were all normals applied early in industrial management (Ibid). Planning for the provideing of work to be done is non something that has become putting greenplace in recent old age. This is something that has arrestn to become what it is today. The relatively sophisticated techniques available to management today ar outcomes of a long period of evolution in practices, which started decades ago with simple, pragmatic, short term planning.The techniques u sed by management tended to fit contemporary conditions and events ( trading floor, 1995). During the number one part of the 20th century, for example, the boil down in manpower planning was upon the hourly production worker. The aim of improving faculty through work engineering and early industrial psychology employments was consistent with the need to improve productivity and introduce greater objectivity to force department practices (Ling, 1965; Merril, 1959; Yoder; 1952). During the befriend World War and the post war age, the think intensified on employee productivity.There was alike greater cite regarding the availability of competent managerial personnel, as in that respect was a talent shortage in conclave with signifi asst contract for goods and services. clean technologies and interests in behavioral aspects of work as well added complexities to the manpower planning task. In the 1960’s the demand for uplifted talent personnel increased due to high technology programmers, rapid corporate expansion and diversification. In order to continue this increase, manpower planning practices were focus on reconciliation supply with demand, particularly demand for managerial, professional and proficient personnel.According to textbooks written during the later part of the 1960’s, manpower planning was viewed as a system linking the organization with its environment (Patten, 1969; Vetter, 1967). Walker (1980) argues that the most common view of manpower planning at that time, which as well dominated the belles-lettres until the 80s, was that â€Å"companies forecast their need for manpower into the succeeding(a), forecast their native labour supply for meeting these needs, and identify the gaps between what exit be indispensable and what allow for be available. Further, manpower planners develop plans for recruiting, selecting and placing new employees, provide for prepare and maturement and anticipate necessary promotions and transfers (Burack et al, 1972; Geisler, 1967; Henemann et al, 1968; Wikstrom, 1971). The 70s came with new legislation, tourist court decisions and political regulations. Management assist then moody to affirmative action planning and other(a) aspects of compliance. bit many companies adopted the techniques that had been introduced by leading companies during the precedent decades, ther experimented with new tools such as career planning, activity analysis, and reshaping of work (Walker, 1980). The study(ip)ity of companies, however, were mainly concerned about the compliance with the world-shaking new regulations goerning discrimination, refuge and pensions. Generally, it was an unsettled decade, during which managers had to deal with the dynamism crisis, indeterminate cost and profits, the slowing of business expansion and the increased concern regarding women’s liberation and reverse discrimination (Bramham, 1994).However, agree to Bramham, i t was during this time or decade that â€Å"manpower planning” was broadly being termed â€Å"human resource” planning and became widely established as a staff activity in major(ip) business and organizational organizations (Ibid). The term â€Å"human resource planning” implied a scope broader than just supply-demand balancing or quantitative forecasting. Human resource planning shifted focus from being a quantitative approach, although recognizing its importance, to a more large view of the process encompassing both needs forecasting and program forecasting (Ibid).During the 80s and early 90s, human resource management re payers and professionals tended to place greater idiom on employee attitudes and on the growth of personnel strategies to search for the enhancement of positive employee feelings and commitment (Zeffane and Mayo, 1994). Generally, these strategies lacked sufficient tightfistedness on the need to control the flow of personnel within an d across organizational boundaries (Walker, 1989). According to Richards-Carpenter (1989), this meant that human resource planning took a backward tonicity in priority placing within the overall human resource management system.However, due to the increasingly uncertain socio-economic climate during the 90s, it was anticipated that the HRP function was to become the focal activity, as it was increasingly becoming an essential function across the organization (Zeffane and Mayo, 1994). Damm and Tengbland (2000) argue that in the afterlife, the world power staff of the HR personnel is to provide and develop an kind organizational environment in which the various(prenominal) feels godlike to grow and develop his/her competency.Furthermore, they say that individual organizations ordain not necessarily be responsible for the individuals’ competence maturation; it is quite an the individuals’ accountability to make sure as shooting that they develop their compete ncies in order to attract future employment relationships. The ultimate situation is when the individual feels that the organization provides the best resources available in order for them to grow and develop their competencies.Damm and Tengblad also argue that two in truth weighty future on the job(p) areas, for individually focused personnel work, get out be guidance consulting and employee brooking. There get out be a need for people who work with professional career service to facilitate the individuals with their career planning if the individual pull up stakes be responsible for their own careers. In a labour market that is increasingly characterized by time mark employment or else than life long contracts, in that location allow for be a constant requirement to link competence demand with competence supply.The employee brokers piece of ass assist in the process of identifying the different potentials and coincide between demands since they have a better overview than the individuals have. This could mean that it will still be necessary with employees working with personnel- tie in heads; however, oft of the â€Å" strategical personnel work” will not be as important since individuals will be responsible for their own competence suppuration (Damm and Tengblad, 2000). 4. The Contemporary Purpose of HRPThe effective HRP plunder avail anticipate potential future difficulties while at that place is still a choice of action. Forward planning should enable the organization to develop effective personnel strategies cogitate to such activities as recruitment and selection, preparation and re grooming, management development and career progression, transfers and redeployment, early retirements, earnings levels, anticipated redundancies, and accommodation requirements. Bramham (1987) presents a more minute view of six basic objectives, which are kind of sympathetic to those mentioned by Mullins (1996) that is thought to onstitute t he purpose of HRP. The first objective and a major purpose screwing the use of HRP is to give an organization a broad, ripe insight into not just the number of employees, still also the type, skills, and attributes of the people that will be essential in the future. HRP provides the reading on which recruiters base their activities and it reveals what gaps there are between the demand for and supply of people with particular skills (Bramham, 1987; narrative, 1995; Mullins, 1996).The second objective aims to reveal what training and development activities need to be undertaken to tally that quick employees and new recruits possess the required skills at the right time. The longer and more specialized the training is, the more significant accurate HRP is to the organization’s effective operation (Bramham, 1987). men costing is listed as the leash objective and explains how HRP assists in cost decline by aiming to work out in advance how organizational operations can be staffed most efficiently.This is of even more importance when new ventures or projects are imagineed because it provides selective information on which to base vital decisions (Bramham, 1987). The quaternate objective presented by Bramham (1987) is redundancy. HRP is an important tool in the anticipation of future redundancies and therefore allows remedial action to be taken, such as recruitment freezes, retraining, and early retirements so as to reduce the numbers involved. some other advantage associated with HRP, presented as the fifth objective, is collective bargaining.In organizations with a strong trade union presence, HRP provides important information for use in the bargaining process. It is particularly significant when long-term deals are being negotiated to improve productivity and efficiency. In such situations, the information provided by HR forecasts enables calculations to be make concerning how great an increase in pay or how great a reduction in hours might be conceded in supercede for more productive working methods and processes (Bramham, 1987).The sixth and pull through objective presented as a purpose of HRP deals with the planning of accommodations, such as future need for office space, car parking, and other workplace facilities. Such experimental conditions are of great importance, especially to organizations expecting fast expansion or contraction of key operations. As with the other five-spot objectives described above, HRP also here aims at dictatorial costs over the long term by forecasting the future (Bramham, 1987). 5. External and Internal Influences on HRP 5. 1External Influences on HRPA lot of things have changed from when HRP first gained commonplace popularity. The stability of the smooth sailing years, as whizz (1995) refers to the age of US corporate domination between 1948 and 1973 is gone. nowadays’s dynamic environment, filled with planetary competition and business discontinuities, define the arena in which HRP must flourish. The need for analysis of changing scenarios, therefore, has to be an integral part of the HRP process (Rothwell 1995). The first blackguard in HRP is usually the â€Å"environmental” scan.If this review has not al effect been carried out in some information as part of the formulation of corporate dodge, consideration of unfavorable trends whitethorn be a major contribution, which the HRM function can make to the organization (Institute of force out Management 1992). The growing inter issueization of business in the face of changing patterns of world trade, the emergence of new competitors and new markets and changes in the older industrialized countries, all have some impact on the labour markets of even the smallest firm art in national market (Taylor, 1998).Most larger and medium-sized companies are, however, likely to be trading internationally (Rothwell 1995) in some way and will need to understand the labour markets in those coun tries, if they are to recruit staff abroad or if they expect to send their own staff to work there. The whole issue of international management development has major implications for strategic planning and for human resource forecasting and effectuation. Evidence so far raises that there are many inadequacies in both planning and slaying of management mobility, and that there is a widespread combine on ad hoc use of expatriate managers (Ibid. 995). multinational and political issues are clearly closely linked, the spark towards greater European unity, the unification of East and atomic number 74 Germany, the opening of Eastern Europe, The World Trade centralize bombings and so forth , are just a a couple of(prenominal) examples of events with implications for business planning. The political complexion of a government tends to affect the type of economic policy in place, the attitude to full employment, trade union and employee rights, as well as the level of support for pr ivy or public sector enterprises.External political buy the farmrenceors, especially the broader social and regulatory legacies of industrial relations, provide a socio-political context in which managerial strategies have had to develop, and by which they have been conditioned (Lucio and Simpson 1992). At a time of economic recession in particular, the costs of worker protection policies can be very high-priced for companies. An awareness of population trends is critical in grounds labour markets, and national population statistics are promptly available.Rothwell promote states that planning to take account of demographic trends is not oftentimes done early lavish. Also, a lack of advance planning tends to increase labour costs, as firms have to increase wages and salaries in order to retain staff or run them from other firms. Public policy emphasis on training, the co-ordination of a plethora of national vocational qualifications, and the position of national education t raining targets all mean that some aspects of estimating external competence supply will be improved.Data on graduate qualifications are promptly available, but interpreting likely trends in supply and demand is complex (Pike et al. 1992). Demand-side factors stem mainly from business strategy, but need to take account of other skills that may be needed; for example in physical environmental awareness and the implications for products or processes and energy use; or in marketing, in concepts of comparative marketing, customer education and familiar supply cosmic string management. If mergers or acquisitions are expected, is new expertise needed to handle that?Or if organization structures are changing to create flatter organizations or new internationalized business market divisions, are there skills available in managing networks, managing projects or managing cross-culturally? Firms that use competence-mapping techniques may be able to provide data relevant to HRP, but where these activities are done by different people and/or at different locations, such linkage cannot be made (Rothwell, 1995). Consumer attitudes tend to be surveyed more regularly than those of employees, but shifts in employee preferences are perceptible, often on a generation basis.The generation of people born(p) in the 70s and 80s are more individualistic, less(prenominal) likely to accept authority, expecting to have a say and be given a choice, and also to be putting more emphasis on quality of empty and family life. The priority perks for those in work are those cogitate to health and to education and training. Employees are also less likely to remain with one employer. These attitudes are engraft particularly among â€Å"knowledge-workers”, and may be modified over-time by experience of recession and widespread white-collar unemployment (Rothwell, 1995).If a major difference between HRP and manpower planning lies in its emphasis on motivating people (Bramham 1989), understanding the starting point and The incorporation of both individual and organizational needs is therefore the major challenge for HR planners and should be reflected in the application of the planning process to the ways in which people are employed (Ferner and Colling 1991) 5. 2Internal Influences on HRP Zeffane and Mayo (1994) argue that in the context of the supply-demand equation, a range of inner(a) factors require consideration for the purpose of evaluating existing (or anticipated) supply from within the organization.The supply side issues that HRP should address include the organization’s policy on process from within or by means of outback(a) recruitment; the policy on pay and remuneration, and the organization’s view on employee development. In this context, the courtly human resource plans take into consideration a series of supply side statistics, such as company growth, the age distribution of employees, skill levels, turnover ratios and the over all profile/distribution of employment across job categories.Zeffane and Mayo (1994) come along state that among all these, age and retirement are emerging as important considerations in custody planning in the afoot(predicate) socio-economic climate. These factors (i. e. age and retirement) are strongly related in the sense that retirement takes place on the attainment of a certain age. Catering for age is necessary and is becoming increasingly the subject of a more elaborate mathematical modeling for men (Mohapatra et al. 1990). The more contemporary approaches to HRP need to consider current (and anticipated/future) changes in the make-up and aspirations of the workforce.Long-term macro-level forecasts seem to suggest that people in the future will have even greater desire for self-development and discovery (Taylor, 1998). These aspirations may trigger requirements for changes in existing corporate structures and management systems. As a result, human resource professionals a nd their organizations may capitalize on the advantage of potential employees who may be creative and self-motivated, but they will also face the problem of developing an environment that will attract and hold such individuals (Taylor 1998). 6.Different Types of Human imagination Planning 6. 1 succession Planning One adaptation of traditional HRP that takes place mostly in larger organizations is the development of a taking over planning function. Storey (1995) argues that old geezer executives often see this function as the major rational for any form of HRP. While in some organizations it may be focused mainly on the few top positions, the need to consider at least a five-year-period can mean that it becomes a more significant operation, and eventually drives a whole management recruitment and development programme.According to Taylor (1998), period planners are mainly interested in ensuring that their employer has enough individuals with the right abilities, skills and experien ce to promote into key sr. jobs, as they become vacant. According to Jackson and Schuler (1990), duration planning differs from traditional HRP in the sense that the duration planning process covers a narrower group of employees but does so with a higher degree of intensity. As succession plans concern relatively few employees, they can be considerably more sophisticated the time span is also longer than that of traditional HRP.Succession plans often involve forecasting and planning the progress of individuals 20 years ahead or more (Walker, 1992, Storey, 1995). Storey (1995) argues that succession planning is most often associated with ranked organizations in which individuals develop careers by moving upwards and sideways over a number of years as they acquire the required skills and experience. The aim of this is to ensure that enough individuals with the potential to come to ranking(prenominal) positions are available when an appointment needs to be made.Rothwell (1994) states that third candidates are typically identified for each senior post: one who is ready now and could succeed immediately if necessary; one who will be ready, if needed, in two or 3 years’ time and one who will be ready in five years’ time. Taylor (1998) comments, in addition, succession planners have an input into decisions about the numbers of graduates that are employed on graduate training programmers’ each year. In technical terms, succession planning involves assembling and manipulating data about individuals and tracking their performance and progress as they move from job to job over a period of time. . 2Career Planning This type of HRP is by some viewed as a more trend-setting term to use than succession planning and patently is more individually focused (Storey, 1995). Furthermore, like succession planning, broadly taken, it requires an understanding of processes that can integrate an individual’s characteristics and preferences with the implications of: organizational culture, values and style, business strategy and direction, organizational structure and change, reward systems, training and development system, appraisal and promotion systems.According to Taylor (1998), career planning emphasizes much more on the individual’s responsibility for his/her own career development. ‘Mentoring’ and ‘coaching’ systems, whether formal or informal, may be introduced to assist in this. Storey (1995) argues that common problems associated with this kind of planning are related to key people going away, or to managers’ lack of broad experience. The requirements of different types of organizations (static; fast growing; international etc. ) for detailed planning clearly vary (Ibid).Storey further states that the need for creating ‘bridges’ between different occupations and for the denomination of ‘development positions’, are both significant techniques in car eer planning. The predominant influence of this type of planning is that of the organization’s needs, as interpreted by particular managers, at certain phases of its development and it is express that career planning may be interpreted very differently by those who experience it (Storey, 1995). Storey continues to say that the ‘myths’ of the organization in this sense may also be significant: â€Å"those who decode them fittingly are those who obtain advancement. 6. 3Contingency Planning Contingency planning is seldom given any attention by authors within the HR field, but according to Taylor (1998), it can be seen as an approach that is almost universally applicable. Contingency planning involves planning possible responses to a variety of potential environmental scenarios, and the result is that HRP effectively switches from being a reactive process undertaken in order to assist the organization in achieving its aims. Taylor further argues that it becomes a proactive process undertaken prior to the formulation of wider organizational objectives and strategies.The main purpose of contingency planning in the HR field is the provision of information on which decisions about the future directions the organization takes are made (Taylor, 1998). 6. 4Competency Planning Another adaptation of traditional HRP is skills planning and is, according to Speechly (1994), particularly appropriate in situations where there is a variety of different methods by which employee needs can be met. The basic principle of this method is to shift away from a focus on planning for people and instead abbreviate mainly on skills.Taylor (1998) argues that instead of forecasting the future supply of and demand for employees, skills planning involves predicting what competencies will be needed one to five years ahead, hence, leaving open the question of the form in which these will be obtained. Further, skills- ground plans incorporate the possibility that skills n eeds are to be met both wholly or partially through the employment of short-term employees, outside consultants, as well as by permanent members of staff (Taylor, 1998). . 5Soft Human Resource Planning There has been some disagreement in the literature over the term ‘soft human resource planning’ and its comprehend meaning (Taylor, 1998). Marchington and Wilkinson (1996) give one broad interpretation as being ‘synonymous with the whole subject of human resource management. ’ Torrington and Hall (1995) have a narrower definition involving planning to meet ‘soft’ HR goals †particularly cultural and behavioral objectives.Torrington and Hall also use the label to give meaning to a distinct range of HR activities which are similar to hard HRP in approach, but with a focus on forecasting the likely supply and demand for particular attitudes and behaviors rather than people and skills. According to Taylor (1998) soft HRP can thence be seen as a broadening of the objectives associated with the traditional approaches of HRP. Soft HRP accepts that for organizations to succeed in the current environment they need more than the right people in the right place at the right time.In order to contribute to the creation of a successful organizational culture, they also need to make sure that people have an appropriate scene and set of attitudes. Further, even more essentially argued by Taylor, by undertaking systematic soft HRP Organizations will be alert to long-term shifts in attitudes to work among the Labour force in general, allowing them to build these considerations into their general planning processes. Such issues are not taken into account by traditional HRP according to Taylor (1998). . Conclusions heedless of the organizational size and industry the underlying fountain behind HRP is to have the right people, with the right skills, in the right places, at the right time. However, the ways to imbibe this motive do d iffer from one organization to another depending on the individual prerequisites. This could be illustrated by breaking down the motive, where finding the right people, with the right skills is the essential condition for having them at the right place, at the right time.In times of organizational growth or downsizing organizations naturally focus on hiring or retaining the right people with the right skills. However, organizations with a petty(a) employee turnover can focus more on having the people in the right place i. e. concentrating more on making sure that the existing workforce is utilized in the optimal way. While there are different prerequisites between organizations, determining their approach to plan, we can also see a general change affecting the ability for all organizations to plan.Historically, there has been turbulence in the business environment such as technological developments and erratic economic fluctuations, however it is not these factors per se that has c aused the change today, but rather the speeds in which discontinuities occur. This is made evident by the fact that companies no longer plan in the same way as they did ten to fifteen years ago when the more static conditions allowed the organizations to plan with more accuracy.Today organizations do not plan more than three years ahead and the plans are revised both annually and quarterly. This development has put the organizations in a dilemma; the greater the need for planning the more difficult it becomes to plan. In the light of this, some theorists question planning since it is virtually impossible to foresee changes with any accuracy. However, this view appears to have little, if any relevance among the organizations, where planning is viewed as a less formal process.The common understanding among the companies is that it is impossible to follow a plan rigorously but they still plan. From this we draw the endpoint that planning is more than just forecasting the future, it is rather the planning process itself that adds value to the organization. By incorporating plans made across the whole range of personnel and development activity the organization becomes more alert to changes and prepares itself for future discontinuities regardless of their nature, thus admitting that change will occur is more important than foreseeing the future.Organizations that embrace this way of sentiment plan to a greater extent than in the past in the way that it involves a broader definition of HRP, incorporating not only quantitative measures but also soft issues. However, the fact is that environments vary across industries, organizations and over time. Some organizations occasionally experience disruption. But at the same time others are experiencing relative stability. Thus, organizations are very much influenced by their individual prerequisites limiting their abilities to plan to the extent as described above.Two findings concerning HRP seems to signalise themselv es, firstly we can see a general change among all companies in the way they plan for HR, secondly HRP is still very much based on individual prerequisites. 8. Analysis Human resource planning is probably one of the most critical elements in linking the work of the human resources function to the business goals of the company. It is important to recognize that certain aspects of human resource management tend to have potentially high strategic consequences.Especially in the areas of policy development and implementation it is obvious and difficult to refute advice that effective human resource policies require human resource planning, which in turn, requires effective integration with an organization’s strategic planning process. It is evident that human resources planning are becoming more and more important in business circles. Because business profits are squeezed by inflation and a weakened economy, management is also concerned with personnel costs and is seeking to get t hrough increased output with the same or less staff.During our research we have found evidence financial support the above statement, where organizations with a high employee turnover tend to focus on the planning for supply and demand of HR, while organizations with low employee turnover lean more towards internal issues of HRP. Logically counting heads becomes more important in times of growth or downsizing, thus the nature of the HRP shifts towards a quantitative approach. Consequently organizations experiencing more stable periods can focus on softer HRP, i. e. concentrating on the creation of an environment that stimulates personal development and motivation among the employees.Our impression during the research is that all companies have the heading to focus more on internal HRP, thus companies do not decide to be either quantitative or qualitative in their approach, and it is rather a natural selection based on the individual prerequisites. However, we can see a bump wit h not having a balanced view in terms of external and internal HRP. Among the companies with an explicit internal focus there is a lack of attention for external developments and trends, thus we can see an natural risk of becoming â€Å"fat and happy” which in turn requires reactive actions in times of major change.References • Beer, S. (1972). Brain of the Firm, in the buff York, Herder and Herder. • Beer, S. (1974). Designing Freedom. Toronto: CSC Publications. • Bell, D. J. 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