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BSBHRM602 Manage

human resources
strategic planning –
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TABLE OF CONTENTS
Table of Contents..................................................................................................................................3
APPLICATION.....................................................................................................................................5
UNIT SECTOR.....................................................................................................................................5
ELEMENTS AND PERFORMANCE CRITERIA .................................................................................5
FOUNDATION SKILLS .......................................................................................................................6
Topic 1 – Research planning requirements...........................................................................................8
ANALYSE STRATEGIC PLANS TO DETERMINE HUMAN RESOURCE STRATEGIC
DIRECTION, OBJECTIVES AND TARGETS .....................................................................................8
IDENTIFY  FUTURE LABOUR NEEDS, SKILL REQUIREMENTS AND  OPTIONS FOR
SOURCING LABOUR SUPPLY ........................................................................................................13
CONSIDER NEW TECHNOLOGY AND ITS IMPACT ON JOB ROLES AND JOB DESIGN .....16
REVIEW RECENT AND POTENTIAL CHANGES TO INDUSTRIAL AND LEGAL
REQUIREMENTS..............................................................................................................................18
Topic 2 - Develop human resource strategic plan...............................................................................19
Consult relevant managers about their human resource preferences................................................19
THE BELIEVER........................................................................................................................................................19
THE SOLDIER.........................................................................................................................................................19
THE IDEA CHAMPION..............................................................................................................................................19
THE CLIMBER........................................................................................................................................................20
THE DOORMAT......................................................................................................................................................20
THE TROUBLE MAKER.............................................................................................................................................20
THE MATERIALIST...................................................................................................................................................20
MR OCD..............................................................................................................................................................20
AGREE ON HUMAN RESOURCE PHILOSOPHIES, VALUES AND POLICIES WITH
RELEVANT MANAGERS ..................................................................................................................21
DEVELOP STRATEGIC OBJECTIVES AND TARGETS FOR HUMAN RESOURCE SERVICES .22
EXAMINE  OPTIONS FOR THE PROVISION OF HUMAN RESOURCE SERVICES AND
ANALYSE COSTS AND BENEFITS ..................................................................................................24
FULL-TIME EMPLOYEES............................................................................................................................................24
PART-TIME EMPLOYEES...........................................................................................................................................24
TEMPORARY EMPLOYEES.........................................................................................................................................24
LEASE EMPLOYEES..................................................................................................................................................24
JOB SHARE EMPLOYEES...........................................................................................................................................24
EMPLOYEES WITH CO-EMPLOYERS............................................................................................................................25
IDENTIFY APPROPRIATE TECHNOLOGY AND SYSTEMS TO SUPPORT AGREED HUMAN
RESOURCE PROGRAMS AND PRACTICES ..................................................................................26

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WRITE A STRATEGIC  HUMAN RESOURCE PLAN  AND OBTAIN SENIOR MANAGEMENT


SUPPORT FOR THE PLAN ..............................................................................................................27
RESTRUCTURING STRATEGIES....................................................................................................................................27
TRAINING AND DEVELOPMENT STRATEGIES.................................................................................................................27
RECRUITMENT STRATEGIES.......................................................................................................................................28
OUTSOURCING STRATEGIES......................................................................................................................................28
COLLABORATION STRATEGIES...................................................................................................................................28
DEVELOP RISK MANAGEMENT PLANS TO SUPPORT THE STRATEGIC HUMAN
RESOURCE PLAN.............................................................................................................................29
WORKFORCE PLANNING..........................................................................................................................................29
RECRUITMENT AND SELECTION.................................................................................................................................29
PERFORMANCE APPRAISAL.......................................................................................................................................29
Topic 3 - Implement human resource strategic plan...........................................................................30
WORK WITH OTHERS TO SEE THAT THE PLAN IS IMPLEMENTED ......................................30
MONITOR AND REVIEW THE PLAN .............................................................................................31
ADAPT PLAN SHOULD CIRCUMSTANCES CHANGE .................................................................31
EVALUATE AND REVIEW PERFORMANCE AGAINST PLAN OBJECTIVES .............................32
summary..............................................................................................................................................34
References...........................................................................................................................................34

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APPLICATION

This unit describes the skills and knowledge required to develop, implement and maintain a strategic
approach to managing human resources in an organisation ensuring that the organisation has the
structure and staff to meet current and foreseeable business and performance objectives

It applies to individuals employed as human resource managers after a firm grounding has been
established in a range of human resource activities.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

UNIT SECTOR

Workforce Development – Human Resource Management

ELEMENTS AND PERFORMANCE CRITERIA

ELEMENTS DESCRIBE THE PERFORMANCE CRITERIA DESCRIBE THE PERFORMANCE NEEDED TO


ESSENTIAL OUTCOMES. DEMONSTRATE ACHIEVEMENT OF THE ELEMENT.
1 Research planning 1.1 Analyse strategic plans to determine human resource strategic
requirements direction, objectives and targets

1.2 Undertake additional environmental analysis to identify emerging


practices and trends that may impact on human resource management
in the organisation

1.3 Identify future labour needs, skill requirements and options for


sourcing labour supply

1.4 Consider new technology and its impact on job roles and job design

1.5 Review recent and potential changes to industrial and legal


requirements

2 Develop human resource 2.1 Consult relevant managers about their human resource preferences
strategic plan
2.2 Agree on human resource philosophies, values and policies with
relevant managers

2.3 Develop strategic objectives and targets for human resource


services

2.4 Examine options for the provision of human resource services and


analyse costs and benefits

2.5 Identify appropriate technology and systems to support agreed


human resource programs and practices

2.6 Write a strategic human resource plan and obtain senior

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management support for the plan

2.7 Develop risk management plans to support the strategic human


resource plan

3 Implement human 3.1 Work with others to see that the plan is implemented
resource strategic plan
3.2 Monitor and review the plan

3.3 Adapt plan should circumstances change

3.4 Evaluate and review performance against plan objectives

FOUNDATION SKILLS

THIS SECTION DESCRIBES LANGUAGE, LITERACY, NUMERACY AND EMPLOYMENT SKILLS INCORPORATED
IN THE PERFORMANCE CRITERIA THAT ARE REQUIRED FOR COMPETENT PERFORMANCE.
Skill Performance Description
Criteria
Reading 1.1, 1.2, 1.3, 1.5,  Organises, evaluates and applies content from a range
of structurally complex texts relating to human
2.1-2.7, 3.2, 3.3, 3.4 resource strategic planning

Writing 1.1, 1.2, 1.3, 2.1 - 2.7,  Communicates complex ideas relating to strategic
3.3, 3.4 objectives, matching style of writing to purpose and
audience

Oral 2.1, 2.2, 2.6, 3.1  Establishes and maintains complex and effective
Communication spoken communications in a broad range of contexts
with relevant managers to determine resources
preferences, philosophies and values.

Numeracy 1.1, 2.4, 2.6, 2.7  Selects and interprets mathematical information that
may be embedded in a range of tasks and texts to
analyse costs and benefits as well as dealing with
budgets and risk management plans

Navigate the 1.2, 1.5  Ensures knowledge of legislative requirements and


world of work products is kept up to date in order to provide accurate
information
 Develops and implements strategies that ensure
organisational policies, procedures and regulatory
requirements are being met

Interact with 2.1, 2.2, 2.6, 3.1  Selects and uses appropriate conventions and
others protocols when communicating with managers at
various levels
 Participates in conversations relevant to role
responding, explaining, negotiating and persuading as

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required

Get the work 1.1-1.4, 2.3-2.7, 3.2-  Sequences and schedules complex activities, monitors
done 3.4 implementation and manages relevant communication
when developing the strategic plan
 Makes a range of critical and non-critical decisions in
relatively complex situations, analysing data and taking
a range of factors into account when researching
planning requirements and developing the plan
 Gathers and analyses data and seeks feedback to
improve plans and processes
 Uses digital technologies to manage business
operations and actively investigates new technologies
for strategic and operational purposes

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TOPIC 1 – RESEARCH PLANNING


REQUIREMENTS
ANALYSE STRATEGIC PLANS TO DETERMINE HUMAN RESOURCE
STRATEGIC DIRECTION, OBJECTIVES AND TARGETS

Strategies are the key approaches that an organisation uses in order to achieve its mission and
realize its vision. These strategies are used to bring an organisation from point A to point B or to
bring the organisation from where it is now to where it wants to go in the pre-determined time in
the future.

Soberg (2011) identifies three critical resources that organisations should effectively utilize for them
to become successful. These resources include technology resource, financial resource and human
resource. Technology resource refers to the technology that is used in creating products or the
technology that is used in delivering services. The finance resource on the other hand is used for the
organisation to pay whatever it requires to obtain technology and / or people’s skills, talents and
abilities. Finally, human resource refers to the people whose talents and skills are used in
manipulating technology and getting all other works done in the organisation.

What drives the use of these three critical resources is the mission and vision of the organisation.
The organisation’s mission and vision serves as the reason for the management and utilization of
these valuable resources. These resources are interdependent of each other as illustrated by Soberg
(2011) in the pie chart below.

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The chart shows that the link among the technology resource, financial resource and human
resource are critical in the success of the organisation as the strategies used in each of them must be
all aligned to the overall strategic plan of the organisation as driven by its vision and mission. As
such, the strategies that should be developed in utilizing these resources must be developed in
conjunction with one another because the results of what is planned and acted upon in one resource
will definitely have an influence and impact on the other two resources.

Human resources strategies have their corresponding influences and impacts on both the
technology resource and financial resource of the organisation. The organisation’s human resource
department develops its strategies in three main areas of:

 Attracting the right types and the correct number of people;


 Developing the knowledge, skills and abilities (KSA) of employees; and
 Retaining the employees of the organisation

Attracting and hiring the right type of people for the organisation involves finding those people who
have the right knowledge, skills and abilities in manipulating and handling the specific technology
the organisation is using to achieve its goals. In terms of the changes in technology, the company
should be prepared to train and develop its people for them to keep up with technological changes.

If the organisation or company is in the business of producing cars using machineries and
equipment, its employees should have the necessary KSAs in using those machineries and
equipment. If the company is in the business of providing accounting services to its clients, its
employees should be very well versed in the area of accounting policies, rules and regulations while
having the skills of using computers in manipulating accounting data and information.

Finding, hiring and developing people within the organisation or company involve financial resources
as expenses are incurred in recruitment, hiring, training and development activities of employees. As
such, the organisation should take effort in maintaining and keeping its people by attending to their
needs to keep them happy working for the company. For the human resource department, it is more
expensive to attract, recruit and hire new employees than keeping its people that the organisation
has already invested on developing their knowledge, skills and abilities. Keeping them involves
having a system of certain management techniques that keeps on motivating the highest level of
performance among the employees.

Resources:

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http://humanresources.about.com/od/humanresourcesstrategic/tp/human-resources-strategic-
planning.htm

Soberg, A. (2011). The Link Between Strategic Planning and Human Resource Planning. Retrieved at
http://www.hrvoice.org/the-link-between-strategic-planning-and-human-resource-planning/ on
March 12, 2015.

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UNDERTAKE ADDITIONAL ENVIRONMENTAL ANALYSIS TO IDENTIFY  EMERGING


PRACTICES AND TRENDS  THAT MAY IMPACT ON HUMAN RESOURCE
MANAGEMENT IN THE ORGANISATION

An organisation or a company must take into account the environment where it operates in order to
become successful in its endeavors. The organisation’s environment is generally divided into two,
the internal environment and the external environment. The internal environment includes all
factors within the organisation to which its management has a control over such as management
changes, employee morale, cultural changes and financial issues. External environment, on the other
hand, are factors outside the organisation which are harder to predict and control. External
environment is composed of political, technological, social and economic changes to which an
organisation or a company must adapt in order to survive and realize its mission and vision.

Both the internal environment and the external environment have their corresponding impacts on
managing the human resources of the organisation. The difference between the two is that the
organisation’s management has a direct control over its internal environment while a more strategic
approach must be undertaken in order to respond to the challenges and take the opportunities that
the external environment can impact or bring to the organisation. Such strategic approach can be
designed and implement by first understanding trends in the external environment and how the
organisation’s HR department can respond to them.

Current trends in the society that have impact on the human resources of organisations include the
aging population, multiple generations in the workplace and the people’s changing attitude toward
“work”. Given these changes in the society, the HR department must continuously recruit talents,
control its benefits cost, manage the different expectations and needs of its employees, retool its
current skill-sets to fit the company’s needs, implement succession planning and phased retirement.

In terms of the emerging globalization and the blurring of organisational lines, the HR department
must help its employees embrace diversity, craft and manage an integrative, high performance and
customer focused environment. An open and accurate communication networks must also be
encouraged and developed for all employees.

Another strategy that can be implemented in responding to the external environment is developing
and maintaining a positive organisation and employee partnership and initiating balanced family-
work life among employees. These can be done through having flexible work arrangements,
integrating temporary and contract employees, ensuring a supportive workplace and designing
effective work-employee capability fits.

When it comes to technology, the HR department must continuously train and re-train its people,
create and maintain collaboration competencies and leveraging technology.

With the current global trends, organisations and companies can also network with other companies
through joint ventures and strategic alliances. Through these strategies, the organisation can
manage its growth as they develop and implement business development processes with their
strategic partners.

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Resources:
http://www.nacs.gov.tw/NcsiWebFileDocuments/69b9ec3510e3d7b5d8768a2cc6d2fd93.pdf

http://study.com/academy/lesson/internal-and-external-environments-of-business-lesson-quiz.html

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IDENTIFY FUTURE LABOUR NEEDS, SKILL REQUIREMENTS


AND OPTIONS FOR SOURCING LABOUR SUPPLY

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All companies need to forecast the manpower it would need in the future, and this is critical
in meeting the company’s strategic goals. In order to properly forecast the manpower need,
HR people must clearly establish the jobs that the company will need to fill, the type of skills
the future employees must have to perform their jobs and determine the challenges the
company will meet to fulfill its staffing needs.

In order for the company to successfully forecast its manpower needs for the future, its HR
people must scrutinize the current job market, evaluate its organisational needs, anticipate
its employee turnover, and estimate its future HR needs.

Scrutinizing the current job market means taking a closer look at both economic and
population issues, in general, which affect employment. For example, a significant number
of young graduates who enter the labor market at the same time means certain job
positions can be easily filled up at lower salaries and wages. Other factors to consider would
include the labor market’s age, level of education and trainings which spell out their talents,
skills, knowledge and abilities.

In evaluating the organisation’s needs, the HR must first collect data from all departments
and then assess their existing job positions as to whether those job positions are fit for the
achieving the company’s long-term strategic goals. Along with this is the analysis if those
people who are placed in those job positions have the right skills, knowledge and abilities.
The result of such analysis would determine if the company would need to lay-off or re-train
its current workforce or if they would need to hire additional manpower.

Anticipating the turnover rate of employees in the organisation can help HR people to
determine the need for filling up certain positions that will be vacated in the future either by
promotion of current employees, retirement or resignation. Knowing the type of people
available in the labor market is important in filling up job positions that will be vacated.

Estimating the future HR needs of the company would happen after the HR people have
determined the available type and number of potential employees in the labor market. Such
estimates would depend on the HR’s analysis of its present employee potentials, their
training needs and the type of succession plan that they will put in place. It is important that
HR people know if the employees who are currently working in their positions have talents,
strengths, abilities and potentials that are fully utilized.

After identifying the future labor needs of the organisation, HR people can source their
future manpower through the following:

 Internal sources of recruitment


 External sources of recruitment such as

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o Contracts through present employees


o Former employees
o Intermediaries
o Recruitment at the gate
o Unsolicited applications
o Advertisement
o Schools, colleges, universities and technical institutions
o Employment exchanges
o Private agencies
o Professional bodies
o Personal consultants

Sources:
http://smallbusiness.chron.com/proper-sequence-steps-hr-forecasting-process-36463.html

http://www.freemba.in/articlesread.php?artcode=845&substcode=47&stcode=13

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CONSIDER NEW TECHNOLOGY AND ITS IMPACT ON JOB ROLES AND


JOB DESIGN
Job design states and outlines the organisational tasks, duties and responsibilities of a
certain job position into a single unit of work in order for the organisation to achieve its
objectives. It further outlines the methods involved in completing specific tasks by
determining what tasks, how much tasks and the order of tasks that are needed to complete
a job. Job design specifically involves the integration of job responsibilities with the
qualifications that are required by the job. The clear and detailed statement of a job design
attracts the right candidates to the job as it makes the job look the job specialized and
interesting to applicants.

In creating specific job designs, the HR personnel should answer the following questions:
 What are the tasks involved in the job?
 How are these tasks performed?
 What is the amount of the tasks that is required?
 What is the correct sequence in performing the identified tasks?

The above-mentioned questions will help HR personnel to arrive at a clear description of the
job design which will serve as a guide for employees in performing their duties and
responsibilities. When job designs are properly described and stated, various organisational
problems are addressed as miscommunication is avoided because clarity becomes apparent
on the following:
 Work load, where work overloads and underloads are checked and corrected and / or
properly compensated
 Specific tasks, where repetitive tasks are avoided
 Employee welfare, where isolation of employees are identified and thereby avoided
whenever necessary
 Work processes, where procedures are established and followed

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When clarity is established in the areas mentioned above, employees become at eased and
relaxed in performing their tasks, duties and responsibilities thereby avoiding unnecessary
stress.

Based on the job design, a job role can be identified which further allows an employee to
have a clearer picture of how he is to function within the organisation. Specifically, a job role
is a description of what an employee does within his specified work process. A job role is
also the application of the employee’s talents and abilities in a specific situation. An example
of a job role is a “shut-down” coordinator, an engineer who is tasked to coordinate the
activities of different production employees during a production shut-down period.

With the advent of technology, many job designs and job roles have changed and affected.
Such changes are described by Lewis (1996) as follows:

We are indeed witnessing a revolution in the workplace, wrought substantially by the introduction
of technology, the consequence of which is that the very nature of work is changing, with jobs
either being transformed or made obsolete (Danziger, 1985; Ducatel, 1994; Fearfull, 1992; Form,
1987; Freeman & Soete, 1994; McLoughlin & Clark, 1994; Spenner, 1983, 1985; Wallace, 1989; Zuboff,
1988) and with skill being redefined and its measurement the object of contestation ( Attewell,
1990; Carnevale, Gainer, & Meltzer, 1988; SCANS, 1991; Spenner, 1990; Vallas, 1990). These changes
have important human and societal consequences. At the human level, while some workers may
find that technology makes their jobs more complex and satisfying, others may find themselves
bewildered and suddenly incompetent. Still others may find that their work has become less
challenging and that the expertise and artistry they had acquired over the years no longer matter.
Some may pay the ultimate price of job loss. At the societal level, balancing productivity gains due
to technology with its undesirable side effects (e.g., technological unemployment, lower wage jobs,
or worker alienation) has become a challenge.

The developments brought about by technology indeed changed many of traditional job
designs and job roles. Knowing and understanding these changes drive every human
resource of organisations and companies to keep on adapting by equipping their employees
with continuous training and development activities. These training and development
activities allow for the right fit of the employee talents and abilities with what different jobs
require.

Sources:
Lewis, T. (1996). Studying the Impact of Technology on Work and Jobs. Retrieved on March 15, 2015
at http://scholar.lib.vt.edu/ejournals/JITE/v33n3/lewis.html

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http://www.managementstudyguide.com/job-design.htm

http://english.stackexchange.com/questions/107632/job-title-vs-job-role

REVIEW RECENT AND POTENTIAL CHANGES TO INDUSTRIAL AND


LEGAL REQUIREMENTS
Every organisation, may it business in nature or otherwise, must comply with certain legal
requirements. This means that concerned individuals of organisations and businesses should stay
abreast with the many legal concerns that affect the organisation. For example, the business
structures corporation and partnership have their different rules and regulations to follow. Their
specific legal concerns must be thoroughly reviewed and understood to avoid lawsuits and liabilities
that may happen in the course of the business operations. Compliance with these laws start at the
moment the business exists through getting business permits from concerned government agencies.
As these permits are issued to them, companies are made aware of their responsibilities to the laws
and the rules and regulations they must follow and comply.

There are many legal concerns involved in managing and handling the human resources of an
organisation. These would include labour laws, discrimination laws and compliance issues as regards
hiring and managing employees.

Managing employees within the organisation or company involves complying with several legal
issues like employee compensations, benefits and privileges. Managing these, together with the
legal issues attached to it form the employee relation of companies. Employee relations within the
company are formally managed through managing the outcomes of Performance Appraisals of
employees, provision of employee counselling, employee assistance programs, dispute resolutions,
assessment of education, training and development needs of employees and outplacement services.
When the HR department of the company has well-established systems on these areas, smooth
operations of the business happens which leads to an overall high employee morale.

It is equally important for the HR department of the company or the organisation to take care and
manage its industrial relations. Industrial relations refer to the legal compliance of the company with
the laws that govern the industry where it belongs. Different business industries have different
specific regulations to follow on top of the usual and regular laws that are imposed on all businesses,
in general. Some industry regulations may include Employee Relations Acts, Health & Safety
Legislation, Workers Accident Compensation and other company obligations to their companies as
mandated by law. Knowing all these and being responsible and concerned for their employees can
help companies avoid lawsuits and foster excellent relationship with their employees and a very
good relationship with the industry itself.

Sources:

http://www.hrinz.org.nz/Site/Resources/Knowledge_Base/I-P/Industrial_Relations_.aspx

http://smallbusiness.chron.com/business-management-basics-1792.html

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TOPIC 2 - DEVELOP HUMAN RESOURCE


STRATEGIC PLAN
 CONSULT RELEVANT MANAGERS ABOUT THEIR HUMAN RESOURCE
PREFERENCES

Human resources are valuable assets of an organisation or a company and managing them is of
prime importance to the HR manager. Maximizing the use of employees’ talents to accomplish the
goals and objectives of the company begins by understanding who they are by looking at the type of
employees they are. Below are 8 different types of employees whom HR managers should know and
understand for them to better lead the people they work with.

The Believer

This is the type of employee whom every employer would love to have because this type of
employee is someone who is dedicated, very committed to his job and really loves what he does.
This is a person who is very loyal to the company and someone who has a way of getting his tasks
done somehow effortlessly.

The Soldier

This type of employee is someone who is very dedicated and committed to his job whom when given
a task would make sure that the task can be done in no time. This is the type of person who would
stay in the company for a long time. This person is a great team player but someone who lacks
leadership. They are very good at waiting for orders and getting them done, but initiating is not his
style.

The Idea Champion

This type of employee is someone who always have new thoughts and ideas, and he loves taking
initiatives and very good at starting projects. This person thinks big and very proactive and would
really push his ideas to the fore. However, this person finds it difficult to stay with the project while
it is in progress. This person is more of a starter but not really a finisher because while one project is
in its execution stage, and he comes up with another big idea, he would tend to abandon the first
project and move on to the next big thing. He is someone who is very good at seeing the big picture,
but he misses out details.

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The Climber
This type employee has his focus on making it big in the corporate world, and he is impatient to rise.
He would do his best to climb up the ladder, and it is apparent that he wants to be recognized for his
efforts. He always networks with people who matter and prefer to be a part of more ‘visible’
projects.

The Doormat
This person is someone who can be easily pushed around and bullied. He is someone who normally
asks for sympathy. This person is someone new to the team who should learn how to stop avoiding
confrontation and someone who should speak up for himself whenever necessary.

The Trouble Maker


This type of employee is someone who doesn’t like his job and makes sure that everyone around
him notices his resentment. This person is someone who is usually late to work, lagging behind
deadlines, speaks ill about the company and his team and someone who does not take initiatives.

The Materialist
This type of employee is someone who works just for his salary. He is someone who has lost his
interest to his job, and he lacks the motivation to work. He is someone who decides to stay in the
company because he has already reached a comfortable position, and he needs the money as his
salary.

Mr OCD
This person is someone who is highly obsessive-compulsive who wants everything to be in order.
This person is relentless and tireless and is someone who is very dedicated to his work.
Source:

http://timesofindia.indiatimes.com/life-style/relationships/work/8-types-of-employees-in-
office/articleshow/31328550.cms

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AGREE ON HUMAN RESOURCE PHILOSOPHIES, VALUES AND POLICIES


WITH RELEVANT MANAGERS
Human resources management system and style emanate from the organisational philosophy and
vision. HR management strategic approach must be aligned with the organisation’s ideological and
philosophical orientation. This is necessary for the organisation to have competitive advantage and
for the organisation to become successful in all its endeavours.

In the management context, philosophy is comprised of an integrated set of beliefs and assumptions
about the nature of business and the purpose of the activities the organisation is involved with.
These assumptions and beliefs which are created by the business owners, managers and other key
decision makers become the base to which the organisation’s vision and mission are formed.

When it comes to the human resource philosophy, the beliefs and assumptions that are practised
within the HR department are those that came from the organisation’s overall philosophy. These
beliefs and assumptions and philosophy become the guiding principles on how people within the
organisation should be treated. Some of the approaches on how to treat people include the
commodity approach, machine approach and the humanistic approach. Commodity approach treats
people like commodities who can be bought or sold for a price. Machine approach treats people part
of a machine that can be fitted or placed as a part of a machine. The humanistic approach treats
people as human beings in their totality that includes the person’s physical, psychological, mental
and spiritual well-being. Given these, HR philosophy can be based on the following beliefs:

 The most important assets in the organisation are human beings


 Human beings have creative energies that can be developed
 When human beings develop a sense of belongingness with the organisation, they
would be committed to the organisation
 Human beings can develop the sense of belongingness when the organisation satisfies
their needs
 When individuals get the opportunity to develop their potentials, they contribute more
to the organisation
 The organisation has the responsibility to foster a healthy working environment
Based on the beliefs mentioned above, which are the bases of the HR philosophy, the HR
department can create policies that would be most beneficial to the company. These policies are
then those that define the company on how they deal with their stakeholders which include
employees, customers, suppliers, distributors and other parties that the company deals with in its
daily operations.

Source:
http://www.academia.edu/2454504/HUMAN_RESOURCE_PHILOSOPHY

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DEVELOP STRATEGIC OBJECTIVES AND TARGETS FOR HUMAN


RESOURCE SERVICES
Strategic human resource management is generally and broadly defined as the integration of human
resource management systems and strategies in achieving the overall mission and objectives of the
organisation and meeting the needs of all its stakeholders. The success of human resources
management always begin with a clear and comprehensive plan that is aligned with the
organisation’s mission and vision and which is at the same time is developed in conjunction with the
strategies used in managing the organisation’s technology and financial strategies.

The main purpose of developing strategic human resources plans are as follows:

 To ensure that the organisation has the adequate number and type of employees to
meet its strategic goals by effectively executing its operational plans
 To keep up with the changes in the social, legislative, technological and economic trends
and factors that affect the organisation
 To manage the changes that will happen in the future by remaining flexible

Strategic human resources planning anticipates the human resource the organisation will need in the
future based on its current human resource, the external labour market and the future environment
where the organisation will operate. As such, the HR strategic plan must answer the following
questions:

 Where do we want to go?


 How are we going to develop HR strategies to successfully get to where we want to go
given our circumstances?
 What HR skill sets do we need?

These three critical questions can then be translated into four steps that the organisation’s human
resource department must take which include:

 Assessing the present HR capacity


 Forecasting the requirements of the human resource
 Analyzing the gap between what the HR currently has and what it actually needs
 Developing specific HR strategies that are aligned and supportive of the overall
organisational strategies

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 Understanding the steps mentioned above will guide you in setting the most appropriate
strategic objectives and targets for the human resource department.

Assessing the present HR capacity is determining what kind of people you have at present in terms
of their current knowledge, skills and abilities. Some of the ways to assess your HR capacity would
include developing and administering skills inventory for each employee. This should be done on top
of having a ready list of your employees’ education level and training certificates. In addition,
employees’ performance assessment should also be included. Having all these at hand, you will have
a clear picture of what your people are capable of doing at the present. These information can give
you an indication of what additional skills and abilities your employees should acquire in the future
as you anticipation where your organisation will be in the next few years.

As you determine the future of your organisation or company, you will be able to forecast your HR
requirements for the future. With this, you must also start estimating the demand and supply of the
type of people you would need. To do this, you must answer the following questions:

 How many employees would you need to achieve your organisation’s strategic goals?
 What are the specific job designs you would need to create?
 What skill sets would you require your employees of the future to have?

It is also important to analyse and understand the gap between what your HR currently has and
what it would need in the future. This gap analysis involve knowing that number and type of
employees you have right now in comparison to what you will need to have in the future in
consideration of the anticipated changes that will happen in the areas of technology, economy,
society and politics in general.

In setting your strategic objectives and targets, there are several HR strategies that you can employ
depending on what you want to achieve. These HR strategies include restructuring strategies,
training and development strategies, recruitment strategies, outsourcing strategies and
collaboration strategies. You can choose one from these strategies, or you may use a combination of
them or improvise on them depending on your set goals and objectives and available resources.

Resources:

http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm

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EXAMINE OPTIONS FOR THE PROVISION OF HUMAN RESOURCE


SERVICES AND ANALYSE COSTS AND BENEFITS

There are several human resources services available for organisations, and the HR people can
decide on what services they would use. The choice would depend on what the company needs and
what is the most cost-efficient and beneficial to the overall operations of the organisation. Below are
the different types of human resource services.

Full-time Employees

These are workers who work on a full-time basis where they usually spend 40 hours of work per
week. This type of employees mostly receive many employee benefits that may include retirement
fund contribution, vacation time, sick leave, health benefits and other additional benefits.

Part-time Employees

These are workers who spend less than 40 hours of work per week. Some employee benefits may be
provided to them, but these benefits are often reduced or limited compared to the full-time
employees.

Temporary Employees

These employees are mostly employed by temporary service businesses where work is available only
for a short period of time. The temporary service businesses are those that a company engaged in on
a temporary basis. Temporary employees are those employed by the temporary businesses, and
they are paid with certain wages. These employees also have some taxes withheld; they have social
security, unemployment insurance and worker’s compensation from their paychecks. Few
temporary businesses offer benefit programs such as retirement plan, health insurance, sick leave
and paid vacations. Those who are most commonly hired for this type of job include clerical and
office support staff, technical workers and professionals such as lawyers, doctors and corporate
executives.

Lease Employees

These employees are those who are provided by service firms who supply different type of workers
to their client companies on a temporary basis. Leased employees can be assigned to one particular
job for one year or longer depending on the arrangement. The leased employees receive their
salaries from the service firm, and the client company pays the service firm in bulk amount to cover
all the leased employees that are provided to them.

Job Share Employees

When it comes to job share arrangement, a full time job is shared by two or more employees. Two
employees who share one full time job may agree to have twenty hours of work for each of them.
The benefits they receive, on the other hand, are therefore prorated between them.

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Employees with Co-Employers


This is a work arrangement where Professional Employee Organisations (PEOs) are responsible in
providing companies, usually small businesses, with several human resource responsibilities that
may include paychecks, benefits, retirement programs, health insurance, withholding taxes, handling
of personnel issues, unemployment insurance, and workman’s compensation.

Source:

http://spot.pcc.edu/~rjacobs/career/types_of_employees.htm

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IDENTIFY APPROPRIATE TECHNOLOGY AND SYSTEMS TO SUPPORT


AGREED HUMAN RESOURCE PROGRAMS AND PRACTICES
Managing human resources is a detailed endeavour as it deals with all employees involved in the
organisation. Employees’ records, attendance, payroll and other information must be kept intact at
all times. There are information that are regularly used for decision makings and having timely
access to these information is crucial to the operations of the HR department and the whole
company, in general.

Take, for example, the employee information about their attendance and the salaries and wages
that must be computed on a bi-monthly basis or weekly basis. Computing their salaries become easy
when the right computer technology is used for this purpose, where in checking and recording the
employee daily attendance, a finger scanning system attached to a computer is used. Such
technology immensely helps the HR department in terms of getting this specific task done in a timely
manner.

There are five simple steps in selecting the right software technology for the effective and efficient
use of the human resources department. The first step is to determine the specific need of the
department. The more detailed the HR people are on the identification of these needs, the better it
is for them because it will be their guide in finding the best possible technology match they can have
for their unique needs.

The next step would be to find the right and proper vendors or technology providers who are
capable of responding to the specified HR technology needs. The vendors or technology providers
usually have their feature list where the HR people can find out if their basic needs can be provided
by the vendor or not. This is a way for the HR people to compare what different vendors can provide
in terms of the technology can be best useful for the company. HR people can also ask other HR
professionals within their industry as to which system works best for them and which vendors are
capable of providing such system.

The next step is to set-up the HR software technology system demonstration from the list of vendors
who can provide what the company needs. In the demonstrations, the HR people should make sure
that the vendors are showing and demonstrating their software capabilities that are directly
responding to the needs that were identified in the first step.

After the demonstrations, the HR people can now have a short list of which vendors are best capable
of providing them what they need. Further research should be done among these vendors in the
short list as to how long have they been in the business and what is their level of financial standing
and what are their overall reputation within the industry.

The last step is to choose the vendor who can best provide the software technology needs of the
human resources. Upon selecting the best vendor, the HR people should be able to gain the top
management’s approval on this decision. Such can be done through a detailed explanation of exactly
what the department needs and how the chosen company can meet those needs.

Source:
http://humanresources.about.com/od/hristechnology/a/hr_technology.htm

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WRITE A STRATEGIC HUMAN RESOURCE PLAN AND OBTAIN SENIOR


MANAGEMENT SUPPORT FOR THE PLAN
Human resources planning involves the identification of the processes needed to systematically
forecast the demand and supply of employees in the future. An important consideration in the
human resource planning is the strategic goals and objectives of the organisation which would
define the type of plan the HR department would need to design. The HR plan must respond to the
organisation’s overall goals and objectives to ensure that it can provide the needed supply of human
resources in terms of both quality and quantity.

HR planning as an endeavour to chart down specific activities and strategies to use in order to
respond to the future needs of the organisation can work on any or a combination of the following
strategies:

 Restructuring strategies
 Training and development strategies
 Recruitment strategies
 Outsourcing strategies
 Collaboration strategies

Restructuring Strategies
Restructuring strategies can be done through reducing the number of employees, regrouping tasks
in order to create better job designs and re-organising work units for better efficiency. Reducing staff
can become possible through termination of employees provided that the company follow the laws
that govern termination where terminated employees are given their corresponding benefits.
Another way to reduce employees is through attrition which is when an employee resigns, the
position he vacated will not be filled up. When the number of current employees is reduced, re-
grouping tasks or re-organizing work units must follow. This is because such would result to either
somebody would be responsible for the job that a terminated or resigned person left or that a new
flow of work and tasks will be implemented.

Training and Development Strategies


Training and development strategies include the provision of staff training so that concerned staffs
can take new roles within the company. Another strategy is to train and develop employees so that
can be prepared for their future jobs in the company. These strategies can be implemented through
the company paying for the upgrade of its employees’ skills by sending them to certification trainings
or through making them undergo specific on-the-job trainings.

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Recruitment Strategies
When the HR department has identified and created a new job design, new staff who have the right
skills and abilities can be recruited and hired for the job. This would mean that the HR department
should consider all available options in promoting the new position so that it can attract the most
qualified person for the job.

Outsourcing Strategies
An outsourcing strategy is about hiring external organisations or individuals to complete specific
tasks for the company. They hire these external organisations or individuals under a contract for a
period of time depending on what the company wants to be accomplished within a certain period of
time.

Collaboration Strategies
Collaboration strategies include working with another company or organisation in order to influence
schools and training institutions to offer certain educational program that the industry, where the
company belongs, needs. Another collaboration strategy is working with other organisations to
prepare future industry leaders in developing individuals who have to potential to become excellent
leaders. Another strategy is sharing the cost of training for groups of employees of two or more
organisations. Collaboration can also include allowing employees to visit organisations where they
can learn and gain new skills and insights that are related to their jobs.

Sources:

https://www.boundless.com/management/textbooks/boundless-management-textbook/human-
resource-management-7/purpose-of-human-resource-management-56/human-resource-planning-
281-8373/

http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm

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DEVELOP RISK MANAGEMENT PLANS TO SUPPORT THE STRATEGIC


HUMAN RESOURCE PLAN
Risk is the threat that a certain action or event will adversely affect the operations of a business.
Risk as a “perceived extent of possible loss” should be managed, and such management entails a
detailed and careful process of protecting the organisation so that it can avoid financial loss. Part of
managing risk is to choose the action that would result to the least possible cost. As such, the goal of
risk management is to identify, assess and resolve specific risk items before they become
uncontrollable that may result to the detriment of the entire business organisation.

The three HR operations areas, where threats can greatly impact the organisation, include: (1) the
workforce planning which covers job analysis and job description; (2) recruitment and selection and;
(3) performance appraisal.

Workforce Planning
When the HR function of planning for job analysis and job descriptions is not given due attention or
neglected, such action can result to a great risk as the company will not be able to hire the right type
of people to meet the company’s goals and objectives. This can result to having shortage of the right
people for the company and will become very risky for the organisation. As such, planning for job
analysis and job descriptions should be of paramount concern for HR people so that the risk of
having shortage of excellent employees can be avoided.

Recruitment and Selection


Attracting people who have the necessary knowledge, skills and abilities to perform specific tasks is a
very challenging task for the HR department of a company. When this HR function is not properly
handled, the company will face the risk of not meeting its goals and objectives as there will be no
enough employees who can perform the roles that resulted from careful job analysis of what jobs
should be accomplished in the company on a regular basis. Given this, the HR can minimize this risk
if creativity and effective strategies are implemented in recruiting and hiring highly qualified
employees.

Performance Appraisal
A well-established performance appraisal is crucial to the success of a business, and this
responsibility rest upon the HR department. When the performance appraisal of the employees are
not properly implemented, the company would face the risk of having low morale among
employees as the efforts of the high performing employees would not be recognized while low
performing employees are not given due attention. This kind of situation would result to low
production and to avoid this kind of risk, the HR department must ensure that the company has a
well-designed performance appraisal system that is properly implemented, and continuously
monitored, evaluated and improved.

Source:

http://www.deccanherald.com/content/165365/devising-risk-management-human-resources.html

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TOPIC 3 - IMPLEMENT HUMAN


RESOURCE STRATEGIC PLAN
WORK WITH OTHERS TO SEE THAT THE PLAN IS IMPLEMENTED
Working with others through effective communication is the key to the successful implementation of
an organisation’s plan. It is important that clear and regular communication about the actions that
should be taken get across the concerned parties. Delivering important messages that will move the
organisation towards meeting its goals should be informative and relevant. With the relevant
information that gets across to the members of the organisation, dialogue should be encouraged so
that suggestions can come out, and feedbacks are heard. When this type of communication is
facilitated, the proper implementation of the plan happens because conflicts are avoided, and
misunderstandings are resolved.

The important considerations to take in communicating to the different members of the


organisation for the plan to be implemented involve the following:

 Honest, consistent, timely and accurate communication


 Clear explanation of the vision, mission, goals, objectives and the step by step process of
implementing the plan
 Participation, feedback and suggestions of the people involved in the implementation of
the plan
 Adapting communication strategies that can address and resolve unforeseen issues and
concerns
The managers, supervisors and team leaders in-charge of the implementation of the plan play
important roles that are critical to the success of the plan implementation. They should be able to
provide a clear direction of how to implement the steps outlined and identified in the plan. They
must also send consistent message of support to the people involved and provide regular updates
during the implementation of the plan. These managers, supervisors and team leaders should be
open to suggestions and make timely judgments. They should make the necessary changes based on
the suggestions of the people working on the team for the successful implementation of the plan.

In addition, the type of communication that should happen within the working team should always
be clear and in context as what actions are to be done, why they are important, and how they
should be done. Statements of the information should always be clear, concise and easy to
understand.

Source:
http://hr.anu.edu.au/employment-at-anu/organisational-change/plan/communication-strategies

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MONITOR AND REVIEW THE PLAN


Monitoring and reviewing the plan is like checking the signposts when one is on a journey towards a
particular destination. It is about checking the relevance of the plan while the project is its
implementation stage. This is to check if the details of the plan are still working within the
environment where it is being implemented. When there changes in the external environment which
the organisation cannot control, the plan should be changed or revised so that the organization can
still meet its desired vision, mission, goals and objectives.

Monitoring and reviewing the plan is also about knowing how well the plan is being implemented,
and it is succeeding as anticipated. This can be done through answering the following questions:

 Are the specified activities in the plan being carried out as planned?
 Are predicted effects realized?
 Are the predicted cost increased or decreased?
 Are the assumptions where the plan was based proved to be correct?
 Are the goals and objectives still valid and relevant?
 How have the team achieved the goals?
After answering the above-mentioned questions, analysis should immediately follow so that the
necessary changes in the plan can be made and implemented. Timely decisions of this type are
crucial for the successful operation of the organization since there are time tables to be followed as
part of the plan.

Monitoring and reviewing of the plan involves a number of observation activities and discussion with
key personnel. When relevant information are gathered, there should be a comparison of what was
actually observed and what was planned. If there are discrepancies, the reasons of the deviations
should be identified like if the assumptions that were made were incorrect. Once this kind of analysis
is done, corrective actions and change in the plan would automatically follow. Change in the plan
would be necessary so that the organization can still meet its goals and objectives even if the
activities that were originally planned were changed.

Sources:
http://www.diycommitteeguide.org/resource/strategic-plan-step-6-monitor-and-review

http://www.fao.org/docrep/t0715e/t0715e0a.htm

ADAPT PLAN SHOULD CIRCUMSTANCES CHANGE


Deviating from the plan is normal during its implementation because a plan is not a strict roadmap
but rather a guideline that can be adjusted whenever there is a need. Changes in the plan usually
happen when there are changes in the external environment and when the organisation’s clients
changed what type of service or product they want from the organisation or company. Changes in
the plan also happen when there are changes in the availability of resources for the organization
where the original plan becomes difficult to follow and carry out.

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What is important in changing the plan is knowing and understanding why the change has to be
made. One must have a really good understanding of what is going on around the business and
understand why a change of plan has to be made. For this clarity and understanding to come out,
the following questions should be answered:

 What is causing the change of plan?


 Why should the change be made?
 How will the change affect goals, objectives timelines and responsibilities that were
originally outlined?
Knowing what is the cause of the change in plan and why it should happen serves as a guide as to
what kind of new plan needs to be drafted and implemented. This will give the concerned
management team an overview or an overall picture of the direction and strategies that should be
undertake for the organization to efficiently and effectively serve its clients.

Source:

http://managementhelp.org/strategicplanning/implementing-plan.htm

EVALUATE AND REVIEW PERFORMANCE AGAINST PLAN OBJECTIVES


The purpose of evaluating and reviewing performance against plan objectives is to ensure that the
organisation’s aims and objectives are met and to ensure that project implementation progress is
moving towards the achievement of the set mission or purpose. Evaluation and review of
performance also ensure that the organisation is meeting the needs of its beneficiaries and
stakeholders. It is also a good indicator of whether or not the resources are maximized and
efficiently used. It also allows the management team to see if the organisation complies with the
law and works within the organisation’s policy framework.

Through the process of performance evaluation, ongoing improvement is encouraged while such
provides an evidence of the quality of impact the specific activities have on the overall achievement
of the organisation’s goals and objectives. In addition, it provides valuable information that can be
the basis of critical decisions during the implementation of the plan.

The managers, supervisors and team leaders should be able to use regular reports to check if
employees’ performance is within the standard that was drafted at the planning stage. They have to
make sure that actions are aligned and are adhering to the strategic aims and objectives of the
organisation. As such, they must ensure that the people who are assigned to do specific tasks are
keeping appropriate records of their specific progress for assessment purposes. Such can be
facilitated through the structures and systems that were set up in the planning stage. With this,
proper performance evaluation can be implemented.

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When performance evaluation is conducted, the progress of the project implementation is checked
and corrected whenever deviations to the plan happen. Performance evaluation in this sense gives
an indication of how well the team is doing as compared to the ideal performance that was
identified during the planning stage.

During performance evaluation the following actions should be taken:

 Keep the project / activity implementation within the parameters of strategic aims and
objectives
 Ensure that the activities are aligned with the vision, mission and values of the
organisation
 Carefully monitor both internal and external environmental changes that may require
some adjustments in the organisation’s strategies in order to achieve objectives
For evaluation and review of plans to be effective, such should be considered as an ongoing learning
process where continuing improvement and development is the always the goal. What is important
here is that the people involved in the project implementation, specially the management team,
know what they are measuring. This can be made possible through advanced planning where clear
and measurable objectives are incorporated in the strategic and operational plan.

Source:
http://www.diycommitteeguide.org/resource/strategic-plan-step-6-monitor-and-review

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SUMMARY
Now that you have completed this unit, you should have the ability to manage human resources
strategic planning.

If you have any questions about this resource please ask your trainer. They will be only too happy to
assist you when required.

REFERENCES
http://english.stackexchange.com/questions/107632/job-title-vs-job-role

http://hr.anu.edu.au/employment-at-anu/organisational-change/plan/communication-strategies

http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm

http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm

 http://humanresources.about.com/od/hristechnology/a/hr_technology.htm

http://humanresources.about.com/od/humanresourcesstrategic/tp/human-resources-strategic-
planning.htm

http://managementhelp.org/strategicplanning/implementing-plan.htm

http://smallbusiness.chron.com/business-management-basics-1792.html

http://smallbusiness.chron.com/proper-sequence-steps-hr-forecasting-process-36463.html

http://spot.pcc.edu/~rjacobs/career/types_of_employees.htm

http://study.com/academy/lesson/internal-and-external-environments-of-business-lesson-quiz.html

http://timesofindia.indiatimes.com/life-style/relationships/work/8-types-of-employees-in-
office/articleshow/31328550.cms

http://www.academia.edu/2454504/HUMAN_RESOURCE_PHILOSOPHY

http://www.deccanherald.com/content/165365/devising-risk-management-human-resources.html

http://www.diycommitteeguide.org/resource/strategic-plan-step-6-monitor-and-review

http://www.diycommitteeguide.org/resource/strategic-plan-step-6-monitor-and-review

http://www.fao.org/docrep/t0715e/t0715e0a.htm

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http://www.freemba.in/articlesread.php?artcode=845&substcode=47&stcode=13

http://www.hrinz.org.nz/Site/Resources/Knowledge_Base/I-P/Industrial_Relations_.aspx

http://www.managementstudyguide.com/job-design.htm

http://www.nacs.gov.tw/NcsiWebFileDocuments/69b9ec3510e3d7b5d8768a2cc6d2fd93.pdf

https://www.boundless.com/management/textbooks/boundless-management-textbook/human-
resource-management-7/purpose-of-human-resource-management-56/human-resource-planning-
281-8373/

Lewis, T. (1996). Studying the Impact of Technology on Work and Jobs. Retrieved on March 15, 2015
at http://scholar.lib.vt.edu/ejournals/JITE/v33n3/lewis.html

Soberg, A. (2011). The Link Between Strategic Planning and Human Resource Planning. Retrieved at
http://www.hrvoice.org/the-link-between-strategic-planning-and-human-resource-planning/ on
March 12, 2015.

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