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Lecture 4

rsm361h1 Lecture 4: LECTURE4


Department
Rotman Commerce
Course Code
RSM361H1
Professor
Jelena Brcic
Lecture
4

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Strategic HR Planning and Recruitment
Chapter 2: Strategy and Human Resource Planning
Strategic Planning and Human Resources
Strategic planning: procedures for making decisions about the organizations
long-term goals and strategies.
Human resources planning: the process of anticipating and providing for the
movement of people into, within, and out of an organization.
The plans especially focus on how the organization will position itself relative to
its competitors to ensure its long-term survival, create, value and grow.
Overall, its purpose is to help managers deploy their human resources as
effectively as possible, where and when they are needed, to accomplish the
organization’s goals.
Strategic human resources management: the pattern of human resources
deployments and activities that enable an organization to achieve its strategic
goals.
Strategic Planning and HR Planning: Linking the processes
As organizations plan for their future, HR managers must be concerned with
meshing HRP and strategic planning for the organization as a whole.
HRP relates to strategic planning in several ways, but at a fundamental level, we
can focus on two issues: strategy formulation and strategy implementation.
HRP provides a set of inputs into the strategic formulation process in terms of
what is possible, that is, whether a firm has the types and numbers of people
available to pursue a given strategy.
In addition to strategy formulation, HRP is important in terms of strategy
implementation
In other words, once the firm has devised its strategy, the company’s executives
must make resource allocation decisions to implement that strategy including
decisions related to the firm’s structure, processes, and human capital.
All the available evidence suggests that the integration of HRP and strategic
planning tends to be most effective when there is a reciprocal relationship
between the two processes.
When this occurs, a firm’s top management team recognizes that strategic
planning decisions affect – and are affected by – HR concerns.
Step One: Mission, vision, and values:
oMission: the basic purpose of the organization as well as its scope of
operations
oStrategic 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.
oCore values: the strong and enduring beliefs and principles that the
company uses as a foundation for its decisions.
Step Two: Environmental Analysis:

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oChanges in the external environmental have a direct impact on the way
organizations are run and people are managed.
oSome of these changes represent opportunities and some of them represent
threats to the organization.
oBecause of this, successful strategic management depends on an accurate
and thorough evaluation of the environment.
oEnvironmental scanning: systematic monitoring of the major external
forces influencing the organization.
Economic factors
Industry and competitive trends (customers, new entrants,
suppliers, substitutes, and rival firms)
Technological changes
Government and legislative issues
Social concerns
Demographic and labour market trends
Step Three: Internal Analysis: provides strategic decision makers with an
inventory of organizational skills and resources as well as performance levels.
oCore capabilities: integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to customers.
oPersonalized plans are designed to address the individual needs of
employees so they will be in a better position to help implement their
firms strategies.
oOrganizations can achieve a sustained competitive advantage through
people if they are able to meet the following criteria:
The resources must be valuable
The resources must be rare
The resources must be difficult to imitate
The resources must be organized
oEvidence from research suggests that employment relationships and HR
practices for different employees vary according to which segment they
occupy in this matrix:
Strategic knowledge workers
Core employees
Supporting workers
Partners and complementary skills
oCultural audits: audits of the culture and quality of work life in an
organization.
oValues-based hiring: the process of outlining the behaviours that
exemplify a firm’s corporate culture and then hiring people who are a fit
for them
Forecasting: A critical element of planning
Managers must continually forecast both the needs and the capabilities of the firm
for the future to do an effective job at strategic planning.
oForecasting the demand for labour

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Predicting the number and types of people an organization needs to
meet its objectives.
There are two approaches to HR forecasting: quantitative and
qualitative.
Quantitative: trend analysis is a quantitative approach to
forecasting labour demand based on an organizational index such
as sales. 1. Select an appropriate business factor 2. Plot a historical
trend of the business factor in relation to the number of employees
(this will provide the labour productivity ratio). 3. Compute the
productivity ratio for at least the past five years. 4. Calculate HR
demand by multiplying the business factor by the productivity
ratio. 5. Project the firm’s HR demand out to the target year. Most
basic method because it relies on one factor.
Qualitative: management forecasts: the opinions (judgments) of
supervisors, department managers, experts, or others
knowledgeable about the organizations future employment needs.
Delphi technique attempts to decrease the subjectivity of forecasts
by soliciting and summarizing the judgements of preselected group
of individuals.
Ideally, forecasting should include the use of both quantitative and
qualitative approaches.
oForecasting the supply of labour
Staffing tables: graphic representations of all organizational jobs,
along with the numbers of employees currently occupying those
jobs and future employment requirements.
Markov analysis: a method for tracking the pattern of employee
movements through various jobs
Quality of fill: a metric designed to assess how well new hires are
performing on the job.
Skill inventories: files of personnel education, experience,
interests, and skills that allow managers to quickly match job
openings with employee backgrounds.
Replacement charts: listings of current jobholders and people who
are potential replacements if an opening occurs
Succession planning: the process of identifying, developing, and
tracking key individuals for executive positions.
oBalancing supply and demand considerations
Consider for a moment the high costs of not forecasting or forecasting poorly. If
job vacancies are left unfilled, the resulting loss in efficiency can be very costly,
particularly when you consider the amount of time it takes to hire and train
replacement employees. Poor forecasting that leads to unnecessary layoffs also
makes it difficult for employees to accurately assess their own career prospects
and development.
Once a company has assessed both the supply and the demand for employee
skills, talent, and know-how, it can begin to understood its human capital
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