HR Planning (HRP)

Goals / strategies cascade

Head of HR

Goals / Objectives from HR functional CBIs and KSFs

Objectives / Tactical plans / action items from Corporate plans

Integrated HR Plan

Head Training

Head Staffing

Head C&B

Head diversity Head IR

Head Shared services

Head communication

Appropriate goals will cascade down to these functionaries either in form of secondary ownership of strategic goals or as action items or as Tactical objectives. This is coupled with routine process improvement projects, management of business fundamentals and cross functional projects

Examples of corporate goal alignment

Business objective: Improve the customer satisfaction survey (CSS) results to 4.2 from current 3.1 May 2011 survey.

Business Situation:
Customers are unhappy in Eastern & Western regions. Common complaints turnaround time of repairs, lack of adequate

product knowledge in field force, poor warranty performance

HR Business Objective: Support the improvement of CSS results Possible Ingredients to make this objective SMART:
Facilitate improvement projects in manufacturing to reduce the

manufacturing defects Ensure support engineers receive refresher training for repairs by .. Hire right number to fill the gaps of engineers in the field & induct them in to the Company by .. Ensure product training is given to our sales team and distributors employees

Defining SHRM
SHRM is concerned with creating a competitive advantage for organizations by closely aligning human resource processes, such as recruitment, selection, training, appraisal and reward systems (Fornburn, 1984) It is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals (Wright and McMahan, 1992)

Strategic Human Resource Management

Involves development of consistent, aligned collection of practices, programs, and policies to facilitate achievement of strategic objectives Requires abandoning (dump) mindset and practices of personnel management, and focusing on strategic issues, rather than solely on operational issues

Integration of all HR programs within larger framework, facilitating mission and objectives
Writing down strategy facilitates involvement and buy-in of senior executives and other employees

PWC study: Organizations with written HR strategy

had 35% higher revenues and 12% less absenteeism and lower turnover

Strategic Planning and Human Resources

Strategic Planning
Procedures for making decisions about the

organizations long-term goals and strategies

Human Resources Planning (HRP)

Process of anticipating and making provision for the

movement (flow) of people into, within, and out of an organization.

Strategic Planning and HR Planning

Strategic Human Resources Management (SHRM)
The pattern of human resources deployments and

activities that enable an organization to achieve its strategic goals

Strategy formulationproviding input as to what is possible given the types and numbers of people available. Strategy implementationmaking primary resource allocation decisions about structure, processes, and human resources.

Linking Strategic Planning and HRP

Strategic Analysis
What human resources are needed and what are

available?

Strategic Formulation
What is required and necessary in support of human

resources?

Strategic Implementation
How will the human resources be allocated?

Human Resources Planning

Strategic Planning

Linking Strategic Planning and Human Resources

Internal Analysis

Culture

Capabilities

Internal Analysis

Composition

HR Planning:
Human resource planning is the process of systematically reviewing human resoure requirements to ensure that the required numbers of employees with the required skills are available when and where they are needed. According to Vetter HRP is a process by which an organisation should move from its current position to its desired manpower condition. Human resource planning includes four factors: Quantity: How many employees do we need? Quality: Which skills, knowledge and abilities do we need? Space: Time: Where do we need the employees? When do we need the employees? How long do we need them?

Model of HR Forecasting

Forecasting: A Critical Element of Planning

Forecasting involves:
a. forecasting the demand for labor b. forecasting the supply of labor c. balancing supply and demand considerations.

Forecasting Demand for Employees

Quantitative Methods

Forecasting Demand
Qualitative Methods

Quantitative Approach: Trend Analysis

Forecasting labor demand based on an organizational index such as sales:
1. Select a business factor that best predicts human

resources needs.
2. Plot the business factor in relation to the number of

employees to determine the labor productivity ratio.

3. Compute the productivity ratio for the past five years.
4. Calculate human resources demand by multiplying the

business factor by the productivity ratio.

5. Project human resources demand out to the target

year(s).

Determining the Relationship Between Hospital Size and Number of Nurses

Note: After fitting the line, you can project how many employees youll need, given your projected volume.

Size of Hospital (Number of Beds) 200 300 400 500 600 700 800 900

Number of Registered Nurses 240 260 470 500 620 660 820 860

Qualitative Approaches
Management Forecasts
The opinions (judgments) of supervisors,

department managers, experts, or others knowledgeable about the organizations future employment needs.

Delphi Technique
An attempt to decrease the subjectivity of forecasts

by soliciting and summarizing the judgments of a preselected group of individuals. The final forecast represents a composite group judgment.

Forecasting the Supply of Employees: Internal Labor Supply

Staffing Tables Markov Analysis Skill Inventories Replacement Charts Succession Planning

Forecasting Internal Labor Supply

Staffing Tables
Graphic representations of all organizational jobs,

along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.

Markov Analysis
A method for tracking the pattern of employee

movements through various jobs.

Internal Demand Forecasting Tools

Skill Inventories
Files of personnel education, experience, interests,

skills, etc., that allow managers to quickly match job openings with employee backgrounds.

Replacement Charts
Listings of current jobholders and persons who are

potential replacements if an opening occurs.

Succession Planning
The process of identifying, developing, and tracking

key individuals for executive positions.

Succession-Planning Checklist

RATE THE SUCCESS OF YOUR SUCCESSION PLANNING

For each characteristic of a best-practice successionplanning and management program appearing in the left column below, enter a number to the right to indicate how well you believe your organization manages that characteristic. Ask other decision makers in your organization to complete this form individually, compile the scores, and compare notes.

Formulating Strategy
Strategy Formulation
Moving from simple analysis to devising a coherent

course of action.

SWOT analysis
A comparison of strengths, weaknesses,

opportunities, and threats for strategy formulation purposes. Use the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses.

Corporate Strategy
Growth and Diversification Mergers and Acquisitions

Corporate Strategy

Strategic Alliances and Joint Ventures

Key HR Activities Associated with Merger or Acquisition Phases

Business Strategy (contd)

Functional Strategy: Ensuring Alignment
External Fit/Alignment

Focuses on the connection between the business objectives and the major initiatives in HR. Aligning HR practices with one another to establish a configuration that is mutually reinforcing.

Internal Fit/Alignment

Strategy Implementation
Taking Action: Reconciling Supply and Demand
Balancing demand and supply considerations

Forecasting business activities (trends) Locating applicants Organizational downsizing, outsourcing, offshoring Reducing headcount Making layoff decisions Seniority or performance? Labor agreements

Evaluation and Assessment

Evaluation and Assessment Issues
Benchmarking: The process of comparing the

organizations processes and practices with those of other companies Human capital metrics

Assess aspects of the workforce Assess the performance of the HR function itself

HR metrics

Measuring a Firms Strategic Alignment

Strategy Mapping and the Balanced Scorecard
Balanced Scorecard (BSC)

A measurement framework that helps managers translate strategic goals into operational objectives financial customer processes learning

Balanced Score Cared- Building the Metrics

Ensuring Strategic Flexibility for the Future

Organizational Capability
Capacity of the organization to act and change in

pursuit of sustainable competitive advantage.

Coordination flexibility

The ability to rapidly reallocate resources to new or changing needs.

Resource flexibility

Having human resources who can do many different things in different ways.