2) hr strategy and planning

• HR Strategy & Planning

  • Strategic Planning
  • HR Planning
  • Environmental Scanning
  • External/Internal Workforce
  • Forecasting HR Supply and Demand
  • Shortage and Surplus of Employees
  • Measuring the effectiveness of HRM
• Strategy


  A plan an organization follows for how to compete successfully, survive, and grow
• Strategic Planning


  Defining organizational strategy or direction and allocating resources toward its achievement
• Organizational mission


  The core reason for the existence of the organization and what makes it unique
• Strategic Planning Process for the Organization

  1. Evaluate and Reassess

  2. Covers 3-5 years (10+ years)

  3. Consider internal and external forces

  4. Analyze strengths, weaknesses, opportunities, threats

  5. Determine objectives

  6. Formulate strategies to meet objectives

  7. Managers must focus on strategy

  8. Ongoing process, reevaluated periodically
• HRM can support organizational strategy by:
• HR Strategy


  • Analyzes and identifies the need for and availability of people so that the organization can meet its strategic objectives
  • Ensures the right number of people with the right capabilities at the right times and in the right places
• HR Planning Process


  1. Review Organization's Environmental Analysis/Strategic Plans

  2. Assess External & Internal Workforce

  3. Compile HR Planning Forecasts

  4. Develop HR Staffing Plans & Actions
• Environmental Scanning


  • Assessment of external and internal environmental conditions that affect the organization
  • External environment: Economic, political, and competitive forces
  • Internal environment: Quality and quantity of human resources, Organizational culture, Talent pipeline and leadership bench strength
  • Helps identify strengths, weaknesses, opportunities, and threats
• HR Factors in the SWOT Analysis

  • Economic and Governmental Factors – Impact HR Planning
  • Geographic/Competitive Evaluations
  • Changing Workforce Considerations
• Factors Affecting External Workforce Availability

  • Government regulations affect labor supply
  • Tax legislation at local, state, and federal levels
  • Net migration
  • Direct competitors
  • International competition
  • Aging of the workforce
  • Growing diversity of workers
  • Female workers and work-life balancing concerns
  • Availability of contingent workers
  • Outsourcing possibilities
• Factors Affecting Internal Workforce Availability

  • Current and Future Job Audit
  • Employee and Organizational Capabilities Inventory
• Forecasting


  Using information from the past and present to predict future conditions, Need+Supply of HR
• HR Forecasting Methods


  • Judgmental Methods: Estimates, The rule of thumb, The Delphi technique, Nominal groups
  • Mathematical Methods: Statistical regression, Simulation models, Productivity ratio, Staffing ratios
• HR Forecasting Planning Periods

  • Short-range plans (6-12 months)
  • Intermediate-range plans (1-3 years)
  • Long-range plans (beyond 3 years)
• Forecasting External Supply of Employees

  • Net migration into and out of the area
  • Individuals entering/leaving the workforce
  • Individuals graduating from schools/colleges
  • Changing workforce composition/patterns
  • Economic forecasts for the next few years
  • Technological developments and shifts
  • Actions of competing employers
  • Government regulations and pressures
  • Circumstances affecting persons entering/leaving the workforce
• Managing Employee Supply Imbalances

  • Managing an Employee Surplus: Reductions in work hours, Reductions in compensation, Attrition, Hiring freezes, Voluntary separation programs, Early retirement, Workforce downsizing
  • Managing an Employee Shortage: Use overtime, Rearrange work, Automation, Try alternative work arrangements, Reduce turnover, Retraining, Recruit new hires, Bring back recent retirees, Outsorce work, Increase contingent workers
• Alternate Work Arrangements


  Nontraditional schedules that provide flexibility to employees
• Turnover


  The process in which employees leave an organization and have to be replaced
• Outsourcing


  Transferring the management and performance of a business function to an external service provider
• Contingent worker


  Someone is not an employee but is a temporary or part-time worker for a specific period of time and type of work
• HR Metrics


  Specific measures of HRM practices
• HR Analytics


  An evidence-based approach to making HRM decisions on the basis of quantitative tools and models
• Characteristics of HR Metrics and Analytics

  • Accurate data can be collected
  • Measures are linked to strategic and operational objectives
  • Calculations can be clearly understood
  • Measures provide information valued by executives
  • Results can be compared both externally and internally
  • Measurement data drive HRM efforts
• HR Benchmarking, Balanced Scorecard


  Measuring the Effectiveness of HRM
• HR audit


  • Formal research effort to assess the current state of an organization's HRM practices
  • Audit areas: Staffing and compensation, Health and safety, Legal compliance, Administrative processes and record-keeping, Employee retention and benefits
  • Audit levels: Compliance Audit → Full HR Audit
• The definitions of the following expressions should be known as they appear in the slides:
• Explain the concept of HR planning and present the steps of the HR planning process briefly.
• Define forecasting, name its main methods and compare the planning periods.
• Present the ways of managing an employee surplus.
• Present the ways of managing an employee shortage.
• Job


  • Grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee
  • The control unit of the organization to which we assign the tasks, the place of work, the order of work, relationships, and responsibilities
  • The elementary unit of the organization
• Workflow analysis


  Study of the way work (inputs, activities, and outputs) moves through an organization
• 1. Why are there so many jobs?

  2. What principles does the speaker detail?

  3. In his opinion, is there nothing to worry about the future of work? Are our fates sealed?
• Workflow Analysis


  • Inputs: Material, information, data, etc.
  • Equipment: Machines, facitilities, etc.
  • People: Skills, experience, availability
  • Work: That which is required to produce the output
  • Output: What comes from the work. Measured for quality & quantity
• Job analysis


  • Gathering and analyzing information about the content, context, and the human requirements of jobs
  • A basic building block of HRM, the basis for all HRM practices
  • Purpose: Aids in HR planning, recruiting, and hiring, Provides accurate information for equal employment opportunity matters, Is the basis for compensation, training, and employee performance appraisals
• Usage of Job Analysis

  • Relations with employees: Recruiting, Selection, Key positions, Performance Appraisal, Promotion, Career Planning, Development, Compensation
  • Organizational needs: Reorganization, Development options, HR Planning, Internal mobility, Succession Plans, Modernization
  • Legal requirements: Legislation, Working conditions, Work safety
  • Labor relations: The basis of collective negotiation, conciliation
• Job Analysis Methods


  • Observation: Work Sampling, Employee Diary/Log
  • Interviewing: often with standardized interview form
  • Questionnaire: Job Analysis Questionnaire, Managerial Job Analysis Questionnaire
• Job Description


  • The output of job analysis
  • Identification of a job's tasks, duties, and responsibilities
  • Components: Identification, General Summary/Objectives, Essential Job Functions and Duties, Disclaimers and Approvals
• Act I of 2012 on the Labor Code Section 46 (1)