Strategy and Human Resources Planning 49 Strategy and Human Resources Planning © 2007 Thomson/South-Western. All rights reserved.

Strategic Planning and Human Resources 50 Strategic Planning and Human Resources Strategic Planning Procedures for making decisions about the organization’s 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. © 2007 Thomson/South-Western. All rights reserved.

Step One: Mission, Vision, and Values 51 Step One: Mission, Vision, and Values Mission 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 © 2007 Thomson/South-Western. All rights reserved.

Step Two: Environmental Scanning 54 Step Two: Environmental Scanning Environmental Scanning 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 © 2007 Thomson/South-Western. All rights reserved.

Step Three: Internal Analysis 58 Step Three: Internal Analysis Culture Competencies Internal Analysis Composition © 2007 Thomson/South-Western. All rights reserved.

Competitive Advantage through People 59 Competitive Advantage through People 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. © 2007 Thomson/South-Western. All rights reserved.

Forecasting: A Critical Element of Planning 61 Forecasting: A Critical Element of Planning Forecasting involves: forecasting the demand for labor forecasting the supply of labor balancing supply and demand considerations. © 2007 Thomson/South-Western. All rights reserved.

Internal Demand Forecasting Tools 66 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. © 2007 Thomson/South-Western. All rights reserved.

Step Four: Formulating Strategy 67 Step Four: 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. © 2007 Thomson/South-Western. All rights reserved.

Corporate Strategy 69 Corporate Strategy Growth and Diversification Mergers and Acquisitions Corporate Strategy Strategic Alliances and Joint Ventures © 2007 Thomson/South-Western. All rights reserved.

Step Five: Strategy Implementation 73 Step Five: 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 © 2007 Thomson/South-Western. All rights reserved.

Step Six: Evaluation and Assessment 77 Step Six: 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 © 2007 Thomson/South-Western. All rights reserved.