1. Strategic Planning & Human Resources The Diagnostic Model

2. Strategic Planning & Organizational Behavior
Procedures for making decisions about the organization’s long-term goals and strategies
Organizational Behavior - Human Resources Planning (HRP)
Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.

3. Organizational Behavior
Actually Strategic Human Resources Management (SHRM)
The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals
Strategy formulation—providing input as to what is possible given the types and numbers of people available.
Strategy implementation—making primary resource allocation decisions about structure, processes, and human resources.

4. OB and Strategic Planning
Strategic Analysis
What human resources are needed to do job and what are available?
Strategic Formulation
What structure is required and necessary in support of human resources?
Strategic Implementation
How will the human resources be allocated?
Human Resources Planning
Strategic Planning

5. Linking Strategic Planning and Organizational Behavior

6. 1. Mission, Vision, and Values
The basic purpose of the organization as well as its scope of operations
Strategic Vision
A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent
Core Values
The strong and enduring beliefs and principles that the company uses as a foundation for its decisions

7. 2. THE DIAGNOSTIC MODEL F E E D B A C K World ASSESS ENVIRONMENT SET
OBJECTIVES
APPLY
HUMAN
RESOURCE
ACTIVITIES
EVALUATE
RESULTS
EXTERNAL
CONDITIONS
World
Conditions
Economic
Government
Regulations
Unions
Technology
ORGANIZATIONAL
Nature of the
Organization
Work
EMPLOYEE
Abilities (KSA)
Motivation
Interests
EFFICIENCY
Organization
Employee
EQUITY
PLANNING
STAFFING
DEVELOPMENT
EMPLOYEE/UNION
RELATIONS
COMPENSATION
EFFICIENCY
EQUITY
2. THE DIAGNOSTIC MODEL
George Milkovich
John Boudreau

8. 2. Diagnostic Model - External Environmental Scanning
Environmental Scanning (Assess Environment)
The systematic monitoring of the major external forces influencing the organization.
Economic factors: general and regional conditions
Competitive trends: new processes, services, and innovations
Technological changes: robotics and office automation
Political and legislative issues: laws and administrative rulings
Social concerns: child care and educational priorities
Demographic trends: age, composition, and literacy

9. 3. Internal Organizational Analysis
Culture
Competencies
Internal Analysis
Composition

10. Scanning the Internal Environment
Cultural Audits
Audits of the culture and quality of work life in an organization.
How do employees spend their time?
How do they interact with each other?
Are employees empowered?
What is the predominant leadership style of managers?
How do employees advance within the organization?

11. 4. Determining Required Employee Skill Mix
Core Competencies
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.
Sustained competitive advantage through people is achieved if these human resources:
Are valuable.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.

12. 5. Formulating Strategy – (Setting Objectives)
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.

13. Corporate Strategy Corporate Strategy Growth and Diversification
Mergers and Acquisitions
Corporate Strategy
Strategic Alliances and Joint Ventures

14. Setting Business Strategy
Value Creation
What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted.
Low-cost strategy: competing on productivity and efficiency
Keeping costs low to offer an attractive price to customers (relative to competitors).
Differentiation strategy: compete on added value
Involves providing something unique and distinctive to customers that they value.

15. Functional Strategy: Ensuring Alignment
External Fit (or External Alignment)
Focuses on the connection between the business objectives and the major initiatives in HR.
Internal Fit (or Internal Alignment)
Aligning HR practices with one another to establish a configuration that is mutually reinforcing.

16. Forecasting involves:
6. Applying Human Resource Activities Forecasting: A Critical Element of Planning
Forecasting involves:
forecasting the demand for labor
forecasting the supply of labor
balancing supply and demand considerations.

17. Model of HR Forecasting
FORECASTING DEMAND
Considerations
Product/service demand
Technology
Financial resources
Absenteeism/turnover
Organizational growth
Management philosophy
Techniques
Trend analysis
Managerial estimates
Delphi technique
BALANCING SUPPLY AND DEMAND
(Shortage) Recruitment
Full-time
Part-time
Recalls
Techniques
Staffing tables
Markov analysis
Skills inventories
Management inventories
Replacement charts
Succession planning
External Considerations
Demographic changes
Education of the workforce
Labor mobility
Government policies
Unemployment rate
(Surplus) Reductions
Layoffs
Terminations
Demotions
Retirements
FORECASTING SUPPLY

18. Applying Human Resource Activities: Determining Types of Employees
Core knowledge workers
Employees who have firm-specific skills that are directly linked to the company’s strategy.
Example: Senior software programmer
Traditional job-based employees
Employees with skills to perform a predefined job that are quite valuable to a company, but not unique.
Example: Security guard

19. Applying Human Resource Activities: Determining Types of Employees
Contract labor
Employees whose skills are of less strategic value and generally available to all firms.
Example: General electrician
Alliance/partners
Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy.
Example: Independent product label designer

20. McKinsey’s 7-S Model
Source: McKinsey & Company

21. 7. Strategy Implementation
Taking Action: Reconciling Supply and Demand
Balancing demand and supply considerations
Forecasting business activities (trends)
Locating applicants
Organizational downsizing
Reducing “headcount”
Making layoff decisions
Seniority or performance?
Labor agreements

22. 8. Evaluation and Assessment
Evaluation and Assessment Issues
Benchmarking: The process of comparing the organization’s processes and practices with those of other companies
Human capital metrics
Assess aspects of the workforce
HR metrics
Assess the performance of the HR function itself

23. Measuring 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

24. Balanced Scorecard

25. 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.