shrm mod 3 part 2

8/9/2019 SHRM MOD 3 part 2

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Strategic Planning and HumanResources

Strategic Planning Procedures for making decisions about

the organizations long-term goals andstrategies

Human Resources Planning (HRP) Process of anticipating and making

provision for the movement ( o ) ofpeople into! ithin! and out of anorganization"

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Strategic Planning and HRPlanning

Strategic Human Resources #anagement(SHR#)

$he pattern of human resources deplo%mentsand activities that enable an organization toachieve its strategic goals

Strateg% formulation&providing input as to hat ispossible given the t%pes and numbers of people

available" Strateg% implementation&making primar% resource

allocation decisions about structure! processes! andhuman resources"

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HRP and Strategic Planning

Strategic 'nal%sis hat human resources are needed and

hat are available

Strategic *ormulation hat is re+uired and necessar% in

support of human resources

Strategic ,mplementation Ho ill the human resources be

allocated

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Human ResourcesHuman ResourcesPlanningPlanning

Human ResourcesHuman ResourcesPlanningPlanning

StrategicStrategicPlanningPlanning

StrategicStrategicPlanningPlanning


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Figure 2Figure 2 11 Linking Strategic Planning and Human ResourcesLinking Strategic Planning and Human Resources

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Step ne. #ission! /ision! and/alues

#ission $he basic purpose of the organization as ell as

its scope of operations

Strategic /ision ' statement about here the compan% is goingand hat it can become in the future0 clari1esthe long-term direction of the compan% and itsstrategic intent

2ore /alues $he strong and enduring beliefs and principles

that the compan% uses as a foundation for itsdecisions

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Step $ o. 3nvironmentalScanning

3nvironmental Scanning $he s%stematic monitoring of the ma4or e5ternal

forces in uencing the organization"

6" 3conomic factors. general and regional conditions7" 2ompetitive trends. ne processes! services! and

innovations8" $echnological changes. robotics and o9ce

automation

:" Political and legislative issues. la s andadministrative rulings

;" Social concerns. child care and educational priorities


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Figure 2Figure 2 22 Five Forces Framework Five Forces Framework

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Step $hree. ,nternal'nal%sis

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CompositionComposition

CultureCulture CompetenciesCompetencies

InternalInternalAnalysisAnalysis


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Scanning the ,nternal3nvironment

2ultural 'udits 'udits of the culture and +ualit% of ork

life in an organization"

Ho do emplo%ees spend their time

Ho do the% interact ith each other

're emplo%ees empo ered

hat is the predominant leadership st%le ofmanagers

Ho do emplo%ees advance ithin theorganization

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2ompetitive 'dvantagethrough People

2ore 2ompetencies ,ntegrated kno ledge sets ithin an organization

that distinguish it from its competitors anddeliver value to customers"

Sustained competitive advantage throughpeople is achieved if these human resources.6"'re valuable"

7"'re rare and unavailable to competitors"8"'re di9cult to imitate":"'re organized for s%nerg%"

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2omposition. $he Human2apital 'rchitecture

2ore kno ledge orkers

3mplo%ees ho have 1rm-speci1c skills thatare directl% linked to the compan%s strateg%"

35ample. Senior soft are programmer

$raditional 4ob-based emplo%ees

3mplo%ees ith skills to perform aprede1ned 4ob that are +uite valuable to acompan%! but not uni+ue"

35ample. Securit% guard

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2omposition. $he Human2apital 'rchitecture (contd)

2ontract labor

3mplo%ees hose skills are of less strategicvalue and generall% available to all 1rms"

35ample. >eneral electrician

'lliance?partners

,ndividuals and groups ith uni+ue skills! butthose skills are not directl% related to acompan%s core strateg%"

35ample. ,ndependent product label designer

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Step *our. *ormulatingStrateg%

Strateg% *ormulation #oving from simple anal%sis to devising a

coherent course of action"

S $ anal%sis ' comparison of strengths ! weaknesses !

opportunities ! and threats for strateg%formulation purposes"

@se the strengths of the organization tocapitalize on opportunities! counteractthreats! and alleviate internal eaknesses"

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2orporate Strateg%

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Strategic AlliancesStrategic Alliancesand Joint Venturesand Joint Ventures

Growth andGrowth andDiversificationDiversification

Mergers andMergers andAcquisitionsAcquisitions

CorporateCorporateStrategyStrategy


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Ausiness Strateg%

/alue 2reation hat the 1rm adds to a product or service b%

virtue of making it0 the amount of bene1tsprovided b% the product or service once the costsof making it are subtracted"

Bo -cost strateg%. competing on productivit% ande9cienc%

Ceeping costs lo to oDer an attractive price to

customers (relative to competitors)" =iDerentiation strateg%. compete on added value

,nvolves providing something uni+ue and distinctive tocustomers that the% value"

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*unctional Strateg%. 3nsuring'lignment

35ternal *it (or 35ternal 'lignment) *ocuses on the connection bet een the

business ob4ectives and the ma4orinitiatives in HR"

,nternal *it (or ,nternal 'lignment) 'ligning HR practices ith one another

to establish a con1guration that ismutuall% reinforcing"

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Figure 2Figure 2 88 The 7-S ModelThe 7-S Model

217Source: McKinsey & Company


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Step *ive. Strateg%,mplementation

$aking 'ction. Reconciling Suppl% and=emand Aalancing demand and suppl% considerations

*orecasting business activities (trends) Bocating applicants

rganizational do nsizing Reducing EheadcountF

#aking la%oD decisions Seniorit% or performance Babor agreements

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Step Si5. 3valuation and'ssessment

3valuation and 'ssessment ,ssues Aenchmarking. $he process of comparing

the organizations processes andpractices ith those of other companies

Human capital metrics 'ssess aspects of the orkforce

HR metrics 'ssess the performance of the HR functionitself

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Reading ;"8. Reactive and Proactive HR

perationall% Reactive HR *ocuses on implementing the da%-to-da% demands

for HR"

perationall% Proactive HR ,mproves upon the design and deliver of the e5isting

HR basics before problems set in"

Strategicall% Reactive HR

*ocuses on supporting the successfulimplementation of the business strateg%"

Strategicall% Proactive HR *ocuses on creating strategic alternatives"


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Reading ;"8. Strategicall% Reactive HR

HR becomes strategicall% reactive inbusiness strateg% implementationthrough. Supporting the e5ecution of tactics that

drive the long-term strategies" =eveloping the cultural and technical

capabilities necessar% for long-termsuccess"

A% providing change management supportfor tactical activities"


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Reading ;"8. 2reating a Strateg%-*ocused 2ulture

6" =e1ne the business unit for hich theHR practices are being designed"

7" Specif% the ke% trends in the e5ternal

business environment"8" ,dentif% and prioritize the 1rms sources

of competitive advantage

:" =e1ne the re+uired culture andtechnical kno ledge and skill areasre+uired to support the sources ofcompetitive advantage"


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Reading ;"8. 2reating a Strateg%-*ocused 2ulture

;" ,dentif% cultural characteristics that the1rm should reduce or eliminate if it is tooptimize competitive advantage"


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Reading ;"8. Strategicall% Proactive HR

Aecomes proactive b%. learning enough about other functional areas to

allo HR to contribute to the business e5panding?enriching parameters of HR agendas

through hich strategic alternatives are de1ne andcreated"

2reates a culture of of creativit% and innovation" ,s involved in the full breadth of mergers and

ac+uisition activities" 2reates internal capabilities based on future

e5ternal environmental re+uirements"

shrm mod 3 part 2

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