Strategic HRM Planning process and tools

1. STRATEGIC HUMAN RESOURCES/
WORKFORCE PLANNING
CHARLES COTTER
25 JULY 2013
PALAZZO, MONTECASINO

2. Introduction
Key presentation topics
Summary
Questions
PRESENTATION OVERVIEW

3. Strategic Human Resources Management (SHRM)
Strategic Workforce Planning
DEFINING THE FUNDAMENTAL
CONCEPTS

4. Strategic human resource management (SHRM) is the
process of linking the human resource function with the
strategic objectives of the organization in order to
improve performance. By a strategic approach to HRM,
we are referring to a managerial process requiring human
resource (HR) policies and practices to be linked with the
strategic objectives of the organization.
SHRM is an approach to managing people that deals with
how the organization’s goals will be achieved through its
human resources by means of integrated HR strategies,
policies and practices.
STRATEGIC HRM

5. Both internal and external environmental forces shapes,
influences and informs HR strategies and plans
The human resources of an organization play a strategic role
in its success
HR strategies and plans should be integrated with business
strategies and plans
Human capital is a major source of competitive advantage
It is people who implement the business strategy
A systematic approach should be adopted to planning and
implementing HR strategies
HRM functions are horizontally integrated (bundled)
SHRM PROPOSITIONS

6. HR/workforce planning is defined as a systematic, yet
dynamic process of estimating the future demand for and
supply for employees to execute the organization’s work
in the ways that best support its strategic direction and
deciding how to align and match them.
Workforce planning as assessing future business needs
and deciding on the numbers and types of people
required.
HR PLANNING

7. HR PLANNING

8. STRATEGIC HR PLANNING

9. Strategic HR planning predicts the future HR management
needs of the organization after analyzing the organization's
current human resources, the external labour market and the
future HR environment that the organization will be operating
in. The analysis of HR management issues external to the
organization and developing scenarios about the future are
what distinguishes strategic planning from operational
planning.
Where are we going?
How will we develop HR strategies to successfully get there, given
the circumstances?
What skill sets do we need?
STRATEGIC HR PLANNING

10. Ensure adequate human resources to meet the strategic
goals and operational plans of your organization - the right
people with the right skills at the right time
Keep up with social, economic, legislative and
technological trends that impact on human resources in
your area and in the sector
Remain flexible so that your organization can manage
change if the future is different than anticipated
PURPOSE OF STRATEGIC HR
PLANNING

11. TOP BENEFITS OF STRATEGIC HR
PLANNING

12. Strategic Analysis
Forecasting HR Demand
Analyzing Supply
Reconciling
HR Action Planning
Monitoring and Evaluating the HR Action Plan
STRATEGIC HR PLANNING PROCESS

13. STRATEGIC HR PLANNING PROCESS
ILLUSTRATED

14. Review current HR and organizational strategies
Conduct an environmental scan
Micro - sub environment
Market - sub environment
Macro – sub environment
Preferred tools – SWOT and PESTEL analyses
STRATEGIC ANALYSIS

15. Forecasting should consider the past and the present
requirements as well as future organizational directions
Number of employees
Type of employees
Skills requirements of these employees
Consider and assess the challenges and constraints
FORECASTING HR DEMAND

16. Assess the current HR capacity of the organization by
means of the Skill inventories method
The knowledge, skills and abilities of your current staff
need to be identified
Employee experience, education and special skills
Certificates or additional training should also be included
A forecast of the supply of employees projected to join
the organization from outside sources
ANALYZING SUPPLY

17. RECONCILING

18. Through a gap analysis, the organization then identifies the gaps
between the current and projected human resource needs
Identify practices that could be improved or new practices needed to
support the organization's capacity to move forward
 What new jobs will we need?
 What new skills will be required?
 Do our present employees have the required skills?
 Are employees currently in positions that use their strengths?
 Do we have enough managers/supervisors?
 Are current HR management practices adequate for future needs?
 Determine surplus or deficit
RECONCILING

19. HR ACTION PLANNING

20. Restructuring strategies
Training and development strategies
Recruitment strategies
Outsourcing strategies
Collaboration strategies
HR ACTION PLANNING

21. MONITORING AND EVALUATING THE
HR ACTION PLAN

22. Key points
Questions
Conclusion
Contact details:
 Charles Cotter
 084 562 9446
 charlescot@polka.co.za
 Linked In
 Twitter: @Charles_Cotter
SUMMARY