L4 - SHRP

• VUCA Environment


  Volatile, Uncertain, Complex, Ambiguous
• Strategic Human Resource Planning (SHRP)


  A long term blueprint to ensure workforce optimization - a holistic strategy encompassing recruitment, developing, managing, retaining and redeploying talent to maximize the effectiveness of both the current and future workforce in light of strategic business priorities
• Strategic Human Resource Planning Process

  1. Environmental Scanning

  2. Demand Forecasting

  3. Supply Forecasting

  4. Action Planning

  
• Strategic Human Resource Planning

  • A process by which an organisation looks ahead at the people implications of a business and organisational strategy, and facilities a dialogue within the organisation about these implications
  • Its objective is to give direction to the people decisions to be made at the strategic level that will enable the organisation to achieve substantiated success
  • It deals with the quantification of the people implication of business or organisational strategy and the likely qualitative inputs or outputs of the strategy
  • It comprises of a process intended to form an intervention into strategic planning process or the strategy-setting process of the organisation

  
• Strategic Human Resource Planning

  The process of aligning the human resources of an organization with its strategic goals and objectives

  
• Importance of Strategic Human Resource Planning

  • Helps the organization to optimize its human resources and leverage their strengths and competencies
  • Helps the organization to anticipate and respond to the changes and challenges in the external environment
  • Helps the organization to create a positive and engaging work culture that fosters employee satisfaction, loyalty, and performance
• Strategic Human Resource Planning


  A management process of ensuring that the organisation has the right people with the right skills at the right time at the right place to drive the strategy to achieve organisational goals
• Environmental Scanning


  • Collecting and analyzing information about the internal and external factors that affect the organization's performance and goals
  • Assessing the strengths, weaknesses, opportunities, and threats (SWOT) of the organization
  • Assessing the political, economic, social, technological, environmental, and legal (PESTEL) factors that influence its operations
• Demand Forecasting


  Estimating the quantity and quality of human resources that the organization will need in the future to achieve its strategic objectives
• Supply Forecasting


  Estimating the availability and suitability of human resources that the organization currently has or can acquire in the future
• Action Planning


  Developing and implementing specific plans and programs to bridge the gap between the demand and supply of human resources
• Organisational Strategy


  • Stability Strategy
  • Growth Strategy
  • Retrenchment Strategy
• Organisational Strategy


  HR Planning

  
• Key Elements of HRP Process

  • Strategic Planning
  • Demand Forecasting
  • Auditing current HR capability
  • Supply forecasting
  • Gap Analysis
  • Planning
  • Implementation and Evaluation

  
• Labour Forecasting


  A process for predicting changes in the demand for (needs) and supply (capabilities) human capital
• Labour Demand Forecasting


  Estimating in advances the number of employees the organisation will need in the future
• Labour Supply Forecasting


  Estimating the availability of workers with the required skills, knowledge and abilities to meet the company human capital needs in the future
• Netflix


  • Focuses on building a strong employer brand to attract highly skilled candidates
  • Prioritizes internal development with robust training programs and opportunities for employees to move across different teams
• Southwest Airlines


  • Puts a huge emphasis on hiring for attitude
  • Has extensive training programs and a strong emphasis on employee recognition
• Tangible Benefits of Strategic Human Resource Planning

  • Makes better business decisions
  • Obtains higher-quality talent
  • Retains key employees
  • Avoids future downsizing in response to surplus staff
• Potential Concerns and Proposed Solutions

  • Difficulty Interpreting Business Strategy
  • Workforce Plans Too Static for Changing World
  • Talent Supply Outside of Organization's Control
  • Unsure Where to Focus Resources
• Workforce Shaping


  An approach that involves asking bold questions about the future that will impact the shape of the workforce, not just numbers of the workforce
• People Analytics/ Predictive Analytics

  Advanced smart machines that will be critical for workforce planning as they will provide and predict the talent needs of an organisation
• Key Features of Strategic Human Resource Planning


  • HRP is viewed as a process
  • There is a temporal perspective such that HRP is directed at meeting both current and future needs
  • HRP is seen to progress through distinct phases
  • Monitoring and evaluating outcomes and feedback results are viewed as integral parts of the process
  • The process should be driven by the strategic objectives of the organisation and its purpose is to help achieve their fulfilment