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Human Resource Planning And Employee Relations

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Discuss about human resources planning and employee relations?


1. Importance:

Accurate record keeping is an essential requisite for the success of any business organization. Record keeping is a potent tool of management.  Thus, giving due importance to record keeping is essential. Many entrepreneurs invest lots of capital in their business but fail to realize the importance of records keeping. Profit maximization is the main aim of a business organization (, 2015). They aspire for maximum returns to receive from their investments, and to preserve records is very much part of the equation.

Consequences due to lack of record keeping:

• Without records, business operations cannot be assessed.

• Without records the performance of employees cannot be determined.

• Records are pre-requisite for preparing financial statements like assets & liabilities, profit & loss, income statement, expenses, projection of cash flow which in turn induces good relation with banks.

• Lack of data can induce overpayment of taxes as well as underpayment of taxes.

Rationale for record keeping:

• Maintaining employee records is necessary for the following:

• Maintaining records helps in enabling to control cash inflow and cash outflow in a business.

• Maintaining records helps in knowing how much is spent and owed for goods and services.

• Maintaining records helps in knowing which products are helping in earning profits and which induces loss.

• Maintaining records helps in knowing how much cash is in hand.

• Maintaining records helps in knowing how much cash is tied up as stocks.

• Maintaining records helps in knowing the actual expenses.

• Maintaining records helps in knowing the overheads.

• Maintaining records can help entrepreneurs or business house to access the financial status of their business at any point of time.

• Maintaining records can help in comparing financial status with the previous years.

• Maintaining records assists the entrepreneur or business organizations in preparing their financial statements in a quick manner with accuracy.

• Maintaining records can measure the performance of business in accordance to what was being projected in the plan of business.

• Maintaining records can help in providing information about management in basing decisions about the business.

• Maintaining records helps in saving effort and time.

• Maintaining records helps in accessing how much tax is required to be paid by a business organization or an entrepreneur.

• Maintaining records provides information and details which is valuable for sales in future of the business organization or the entrepreneur.

• Maintaining records can help in quickly accessing the problem areas and offers remedies for the problems.

• Maintaining records help banks to gather information about a business organization or an entrepreneur.

• Maintaining records helps in keeping track of costs incurred for the employees of a business organization or employees of the entrepreneur.

• Maintaining records helps in accessing the performances of the employees.

• Maintaining records helps to detect thefts in the organization.

• Maintaining records helps to know the gross and net profit of a business.

• Maintaining records helps in increasing the chances of operations in business.

2. Formal documents are those which are mostly used for business purpose or office purpose. Formal words and formal language is used in this kind of document. Example is business e-mail. E-mail is used for day to day job activities of an employer. It is a proof from where data can be extracted about an employee’s attendance, transaction, leaves applications etc. Informal documentation uses light words and informal languages that are not recorded. Example e-card (congratulatory) sent to colleagues on their promotion. Employers can be protected by documentation in the sense that an employer can decide pay hikes, promotions, and terminations, disciplinary actions based on these documents as because the foundation stone of documentation is legal and government mandated elements.


3. Termination is a process of dismissing or releasing a worker of an organization with his will or without his will. Legal risks are inherent in dismissing or releasing an employee. For this, employers sack employees on behavioral ground after undergoing a counseling and disciplinary process which is progressive. Employees can seek time for correcting their behaviour through process of counseling and prevent themselves from termination.

4. Challenges faced by health care leaders are:

Providing equal opportunity to all: Providing equal opportunities to all the healthcare workers is an ethical problem faced by healthcare leaders (Maqsood Khan, 2015). Treatment should be equal for all. Being well known does not imply special treatment will be given to that person. All patients should be treated equally.

Employee behavior: Behavior of employees affects both the internal environment and external environment of a business. Behavior leads to retention of patients or attrition of patients.

Need for ethics:

Ethics is needed for proper functioning of an organization. Ethics are inborn and cannot be taught to the employees

5. An effective succession plan is required for the development of an organization.

• Identifying needs and objectives.

• Gathering information.

• Preparing Analysis.

• Developing an action plan.

• Implementing the plans.

• Monitoring the progress.

6. Unionization is required for perfect running an organization. Union is a bridge between the management and the employees. Unionization has both advantages and disadvantages from the management as well as the employees’ point of view. Both management and the employees, working under the same organization is benefited by the presence of the union. Union can do judgment about situations. Union can also help in arbitration when it is deemed compulsory due to unrest in the organization. The advantages are:

• Employees get job security due to unionization

• They can ventilate their complaints or grievances about the management through the union.

• Union fights for healthy working conditions of the healthcare workers. They ensure a safe, congenial and bonhomie working conditions.

• Employees can benefits like bonuses, health benefits, paid vacations with the help of union.

• Management can come to conclusion with the help of unions when any dispute arises with the healthcare workers.

• Unionization help in collective bargaining i.e. equal rights.

The disadvantages are:

Lockouts, picketing, strikes by employees with the aid of union can affect the day’s financial status of the company. Management may lose money due to non-production of work. Strikes may be boomerang on part of the organization as it may lose its existing customers or future prospective customers.

• If the conditions of a business change, the contracts with unions are hindrances for these changes.

• Unions can at times create dispute between the management of the organization and the employees of the organization.

• Unions encourage employees to demand for high wages which may not be feasible on part of the management.

• Human resource control may decrease due to unionization. People in the union are not judged based on their merit or productivity. Seniority and experience may not gain promotion due to union arbitration.

7. Organization changes according to time with technological leap frogging. Human resource management lays emphasis mainly on the human resources. As human capital brings the strategic changes, thus, HR can help as a strategic partner. If any strategic decisions are taken; each units of the business organization shall take a few years to implement it (Saez, 2015). HR helps in deciding the key skills and people required for the change. HR acquires staff according to their skills. Thus, HR knows better what strategy plans is fit for which employees. The role of Hr in strategy implementation is very high. It may be noted that, the strategic implementation planning activities are related to learning and growth of the employees of the organization.



Maqsood Khan, D. (2015). HR as a Strategic Partner: A Critical Review. Retrieved 8 June 2015, from

Saez, A. (2015). Advantages & Disadvantage of Labor Unions. Business & Entrepreneurship - Retrieved 8 June 2015, from,. (2015). The importance of record keeping. Retrieved 8 June 2015, from


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