Strategic Planning and Human Resources
- 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.
Strategic Human Resources Management (SHRM)
- The pattern of human resources deployments and activities that enable an organization to
achieve its strategic goals.
Strategy formulation—providing input as to what is possible given the types and
numbers of people available.
Strategy implementation—making primary resource allocation decisions about
structure, processes, and human resources.
Step One: Mission, Vision, and Values
- The basic purpose of the organization as well as its scope of operations.
- 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.
- The strong and enduring beliefs and principles that the company uses as a foundation for its
Step Two: Environmental Analysis
Environmental Analysis: The systematic monitoring of the major external forces influencing the
1. Economic factors: general and regional conditions
2. Competitive trends: new processes, services, and innovations
3. Technological changes: robotics and office automation 4. Political and legislative issues: laws and administrative rulings
5. Social concerns: child care and educational priorities
6. Demographic trends: age, composition, and literacy
Five Forces Framework
- Firm should focus on value
- Speed of delivering normal orders
- Willingness to meet extraordinary needs
- Availability of installation and repair services and parts
2. Rival Firms:
- Examining the nature of competition
3. New Entrants:
- New companies enter an industry and compete well against firms
- Firms may need to adjust their employee skill bases to support different technologies
- They provide raw materials for production, money and labour
Step Three: Internal Analysis
- Audits of the culture and quality of work life in an organization
Strategic knowledge workers
- Employees who have firm-specific skills that are directly linked to the company’s
strategy. Example: Senior software programmer
- Employees with skills to perform a predefined job that are quite valuable to a company,
but not unique. Example: Security guard
- Employees whose skills are of less strategic value and generally available to all firms.
Example: General electrician
Alliance or Partners
- Individuals and groups with unique skills, but those skills are not directly related to a
company’s core strategy. Example: Independent product label designer
Forecasting involves: - forecasting the demand for labour.
- forecasting the supply of labour.
- balancing supply and demand considerations
Quantitative Approach: Trend Analysis
Forecasting labour demand based on an organizational index such as sales:
- Select a business