1. Strategy and Human Resources Planning

2. Managing Human Resources - Unit 2
Learning Outcomes
Identify the advantages of integrating human resources planning and strategic planning.
Understand how an organization’s competitive environment influences strategic planning.
Understand why it is important for an organization to do an internal resource analysis.
Describe the basic tools for human resources forecasting.
Explain the linkages between competitive strategies and HR.
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3. Learning Outcomes (cont’d)
Managing Human Resources - Unit 2
Learning Outcomes (cont’d)
Understand what is required for a firm to successfully implement a strategy.
Recognize the methods for assessing and measuring the effectiveness of strategy.
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4. Strategic Planning and Human Resources
Managing Human Resources - Unit 2
Strategic Planning and Human Resources
Strategic Planning
Human Resources Planning (HRP)
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5. Strategic Planning and HR Planning
Managing Human Resources - Unit 2
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.
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6. HRP and Strategic Planning
Managing Human Resources - Unit 2
HRP and Strategic Planning
Strategic Analysis
Strategic Formulation
Strategic Implementation
Human Resources Planning
Strategic Planning
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7. Step One: Mission, Vision, and Values
Managing Human Resources - Unit 2
Step One: Mission, Vision, and Values
Mission
Strategic Vision
Core Values
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8. Step Two: Environmental Analysis
Managing Human Resources - Unit 2
Step Two: Environmental Analysis
Environmental Analysis
The systematic monitoring of the major external forces influencing the organization.
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9. Figure 2–2 Five Forces Framework
Managing Human Resources - Unit 2
Figure 2–2 Five Forces Framework
Rival
Firms
New Entrants
Suppliers
Customers
Substitutes
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10. Step Three: Internal Analysis
Managing Human Resources - Unit 2
Step Three: Internal Analysis
Composition
Culture
Competencies
Internal Analysis
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11. Scanning the Internal Environment
Managing Human Resources - Unit 2
Scanning the Internal Environment
Cultural Audits
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12. Competitive Advantage through People
Managing Human Resources - Unit 2
Competitive Advantage through People
Core Competencies
Sustained competitive advantage through people is achieved if these human resources:
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13. Composition: The Human Capital Architecture
Managing Human Resources - Unit 2
Composition: The Human Capital Architecture
Strategic knowledge workers
Core employees
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14. Composition: The Human Capital Architecture (cont’d)
Managing Human Resources - Unit 2
Composition: The Human Capital Architecture (cont’d)
Supporting Labour
Alliance or Partners
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15. Forecasting: A Critical Element of Planning
Managing Human Resources - Unit 2
Forecasting: A Critical Element of Planning
Forecasting involves:
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16. Figure 2–4 Model of HR Forecasting
Managing Human Resources - Unit 2
Figure 2–4 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
Labour mobility
Government policies
Unemployment rate
(Surplus) Reductions
Layoff
Attrition
Termination
FORECASTING SUPPLY
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17. Forecasting a Firm’s Demand for Employees
Managing Human Resources - Unit 2
Forecasting a Firm’s Demand for Employees
Quantitative Methods
Qualitative Methods
Forecasting Demand
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18. Quantitative Approach: Trend Analysis
Managing Human Resources - Unit 2
Quantitative Approach: Trend Analysis
Forecasting labour demand based on an organizational index such as sales:
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19. Figure 2–5 Example of Trend Analysis of HR Demand
Managing Human Resources - Unit 2
Figure 2–5 Example of Trend Analysis of HR Demand
BUSINESS  LABOUR = HUMAN RESOURCES FACTOR PRODUCTIVITY DEMAND
YEAR (SALES IN THOUSANDS) (SALES/EMPLOYEE) (NUMBER OF EMPLOYEES)
2002 $2,
2003 $2,
2004 $2,
2005 $3,
2006 $3,
2007 $3,
2008 $3,
2009* $4,
2010* $4,
2011* $4,
*Projected figures
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20. Qualitative Approaches
Managing Human Resources - Unit 2
Qualitative Approaches
Management Forecasts
Delphi Technique
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21. Forecasting the Supply of Employees: Internal Labour Supply
Managing Human Resources - Unit 2
Forecasting the Supply of Employees: Internal Labour Supply
Staffing Tables
Markov Analysis
Skill Inventories
Replacement Charts
Succession Planning
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22. Forecasting Internal Labour Supply
Managing Human Resources - Unit 2
Forecasting Internal Labour Supply
Staffing Tables
Markov Analysis
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23. Hypothetical Markov Analysis for a Telecommunication Company
Year
2012
Year 2011
Director Marketing
Senior Manager Marketing
Regional Manager Marketing
Exit
Director
Marketing (n = 4)
3 (75%) -
1 (25%)
Senior
Manager
Marketing (n=6)
2 (33%)
1 (17%)
Regional
Marketing (n=5)
2 (40%)
1 (20%)
Supply (n=15) 5 3 2
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24. Internal Demand Forecasting Tools
Managing Human Resources - Unit 2
Internal Demand Forecasting Tools
Skill Inventories
Replacement Charts
Succession Planning
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25. External Labour Supply
Canadian Occupational Projection System (COPS)
Job Futures
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26. Step Four: Formulating Strategy
Managing Human Resources - Unit 2
Step Four: Formulating Strategy
Strategy Formulation
SWOT analysis
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27. Managing Human Resources - Unit 2
Corporate Strategy
Mergers and Acquisitions
Growth and Diversification
Corporate Strategy
Strategic Alliances and Joint Ventures
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28. Managing Human Resources - Unit 2
Business Strategy
Value Creation
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29. Functional Strategy: Ensuring Alignment
Managing Human Resources - Unit 2
Functional Strategy: Ensuring Alignment
External Fit (or External Alignment)
Internal Fit (or Internal Alignment)
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30. Step 5 Strategy Implementation
Human resources management is critical to every aspect of strategy implementation.
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31. Human Capital Readiness: Gap Analysis
The process of evaluating the availability of critical talent in the company and comparing it to the form’s strategy.
Demand
Supply
Gap
(shortage or surplus)
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32. Labour Surpluses Downsizing Restructuring
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33. Lay off strategies Collective agreements Last hired, first fired
By units
Seniority
Least competent
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34. Workforce Reduction options
Reduce hours
Eliminate shifts
Transfers
Attrition
Hiring freeze
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35. Termination Strategies
Severance pay
Outplacement services
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36. Effectiveness of Restructuring
Financial measures
Climate
Public image
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37. Labour Shortages Hiring full time Working overtime Hiring part time
Temporary staffing agencies
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38. Step Six: Evaluation and Assessment
Managing Human Resources - Unit 2
Step Six: Evaluation and Assessment
Evaluation and Assessment Issues
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39. Measuring Strategic Alignment
Managing Human Resources - Unit 2
Measuring Strategic Alignment
Strategy Mapping and the Balanced Scorecard
Balanced Scorecard (BSC)
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40. Ensuring Strategic Flexibility for the Future
Managing Human Resources - Unit 2
Ensuring Strategic Flexibility for the Future
Organizational Capability
Capacity of the organization to act and change in pursuit of sustainable competitive advantage.
Coordination flexibility
Resource flexibility
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41. Assessing the HR Function
Compliance
Client satisfaction
Culture management
Cost control
Contribution
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