Terms to Be Encountered

 Human Resources Management Strategic Plan

 Human Resources Planning
 Staffing
 Vision
 Mission

HRM Strategic Plan

What is HR planning?

Human resource planning is an important for

helping both organizations and employees to prepare
for the future. The basic goal of human resource
planning is to predict the future and based on these
predictions, implement programmes to avoid
anticipated problems.

Very briefly humans resource planning is the process

of examining an organization’s or individual’s future
human resource needs for instance, what types of
skills will be needed for jobs of the future compared to future human resource capabilities (such
as the types of skilled employees you already have) and developing human resource policies and
practices to address potential problems for example, implementing training programmes to avoid
skill deficiencies.

The objectives of human resources planning are the following, namely:

Forecasting Human Resources Requirements:

HRP is essential to determine the future needs of
HR in an organization. In the absence of this plan
it is very difficult to provide the right kind of
people at the right time.
 Effective Management of Change: Proper planning is required to
cope with changes in the different aspects which affect the
organization. These changes need continuation of allocation/
reallocation and effective utilization of HR in organization.

Realizing the
Organizational Goals: In order to meet the
expansion and other organizational activities, the
organizational HR planning is essential.

Promoting Employees: HRP gives the feedback in the

form of employee data which can be used in decision-
making in promotional opportunities to be made available
for the organization.

Effective Utilization of HR: The data base will provide

the useful information in identifying surplus and
deficiency in human resources. The objective of HRP is to
maintain and improve the organizational capacity to reach
its goals by developing appropriate strategies that will
result in the maximum contribution of HR.

Human Resources Management is crucial to an organization's success and it should be part of

overall strategic plan. Hence, strategic planning plays an important role in the productivity of an
organization.
The following are the duties of HRM:

Staffing. Staffing includes the development of a

strategic plan to determine how many people need to
hire.

Basic workplace policies. Development of policies to help

reach the strategic plan’s goals is the job of
HRM.

Compensation and benefits. Motivate the

workers to do their best and may affect the
progress of the organization.

Retention. Assessment of employees and strategizing on how to

retain the best employees.

Training and development. Determination of

training needs and development and
implementation of training programs are important
tasks in any organization.

Regulatory issues and worker's safety. Keeping

up to date on new regulations relating to
employment, health care, and other issues is
generally a responsibility that falls on the HRM
department.
Try it! Give your prior knowledge to the terms in the table.

Human Resources Strategy

Human Resources Management

Strategic Plan

Human resource strategy is an elaborate and systematic plan of action developed by a human
resource department. It also involves choice making regarding the management of people within
the organization.

HRM strategic plan as the major objectives the organization wants to achieve, and the HR plan
as the specific activities carried out to achieve the strategic plan.

Strategic Planning is the art of creating specific business

strategies, implementing them, and evaluating the results of
executing the plan, in regard to the organization’s overall
long-term goals.

It is also a systematic process of envisioning a desired

future, and translating this vision into broadly defined goals
or objectives and a sequence of steps to achieve them.

Price Waterhouse developed the Classic 4-

Step Approach to strategic planning.

This simple structure will help both holistically

and on detailed at the drafting and developing as
well as implementation of plan.

Step 1: Where are we now? (Situation Analysis)

It includes studying the organization’s history and profile, previous and current status and
analysis, strategies, financial standings, and governance structure within the organization.

PESTELI Trends Analysis

In this analysis, it should consider the external

environment may affect such as Political, Economic,
Social, Technological, Environmental, Legal, and
Industry which may be relevant to the organization.

SWOT Analysis

It is a widely used tool to formally analyze the strengths,

weaknesses, opportunities, threats to the organization.
Asking the following questions such as: What are we
good at? What do we need to get a grip on? Anything
happen outside which might actually benefit us if we
take advantage of it? Anything happens outside which
we need to be able to defend ourselves from? This are
the internal and external factors that need to be consider.

Step 2: Where do we need to get to? (Future Direction)

Mission statement is an organization ‘raison d’

etre’(reason for being). The mission will outline the
organization’s purpose and values.

Vision defines the desired or intended future state of

a specific organization in terms of its fundamental
objectives and /or strategies direction.

Aims are typically quite broad and will give an

anticipated outcome that is intended or that guide the planned action.
 Objectives are the detailed requirements to achieve
the overall aim. They are statements of overall
desirable achievements, described possibly in
quality, quantity, and time. It provide definition and
direction to the long-term aims and goals that an
organization seek to realize and should meet the
SMART Test (Specific, Measurable, Achievable,
Relevant, and Time-bound).

Step 3: How are we going to get there? (Strategy

Development)

This is the “route map” of the organization to get where

they desired based on their vision for the future. It
includes actions such as supporting the core strategies,
what is going to be implemented and what financial,
administrative, and governance support will be required.

Step 4: How will we know when we get there?

(Monitoring and Evaluation)

Plan: Action: Review Approach to ensure that the

indicators were performed as expected.

Monitoring is an ongoing analysis of whether planned

results are being achieved.

Evaluation aims to determine the relevance and fulfillment

of objectives, efficiency, effectiveness, impact, and
sustainability.

Monitoring and evaluation can only be successful if

considered at the beginning of a strategic planning cycle.
Dave Ulrich revolutionized the view on human resources from a mere functional area to link and
partnership, within the organization.

1. Strategic partner. Partnership with

the entire organization to ensure
alignment of the HR function with the
needs of the organization.

2. Change agent. The skill to anticipate

and respond to change within the HR
function, but as a company as a
whole.

3. Administrative expert and functional expert. The ability to understand and implement
policies, procedures, and processes that relate to the HR strategic plan.

4. Human capital developer. Means to develop talent that is projected to be needed in the
future.

5. Employee advocate. Works for employees currently within the organization.

The successful writing of HRM strategic plan, better understand the dynamic of external
environment.

Keeping the Ulrich model in mind, consider these four aspects when creating a good HRM
strategic plan:

1. Make it applicable. Often people spend

an inordinate amount of time developing
plans, but the plans sit in a file
somewhere and are never actually used.

2. Be a strategic partner. Alignment of

corporate values in the HRM strategic
plan should be a major objective of the
plan.

3. Involve people. An HRM strategic plan

cannot be written alone. The plan should
involve everyone in the organization.  
 4. Understand how technology can be used. Organizations oftentimes do not have the
money or the inclination to research software and find budget-friendly options for
implementation.

The Steps to Strategic Plan Creation

Conduct a Strategic Analysis

A strategic analysis looks at three aspects of the individual HRM department:

1. Understanding of the company mission and values.

It is impossible to plan for HRM if one does not know the values and missions of the
organization.

2. Understanding of the HRM department mission and values.

HRM departments must develop their own departmental mission and values. These guiding
principles for the department will change as the company’s overall mission and values change.

3. Understanding of the challenges facing the department.

The HRM manager should know what upcoming challenges may be faced to make plans to deal
with those challenges better when they come along. This makes the strategic plan and HRM plan
much more usable.

 
Identify Strategic HR Issues

Many organizations and departments will use a strategic planning tool that identifies strengths,
weaknesses, opportunities, and threats (SWOT analysis) to determine some of the issues they are
facing.

Prioritize Issues and Actions

Based on the data gathered in the last step, the HRM manager should prioritize the goals and
then put action plans together to deal with these challenges.

Draw Up an HRM Plan

Once the HRM manager has met with executives and management, and priorities have been
agreed upon, the plans are ready to be developed.

By developing and monitoring these plans, the organization can ensure the right processes are
implemented to meet the ever-changing needs of the organization. The strategic plan looks at the
organization as a whole, the HRM strategic plan looks at the department as a whole, and the HR
plan addresses specific issues in the human resource department.

 Conclusion

Strategic planning is, an acknowledge essential discipline, a vital, systematic and ongoing
process that enable organization to plan use and application of their resources, skills, and
knowledge in order to achieve the organizational mission, goals, and objectives in a changing
world.

Writing the HRM Plan

The writing of an HRM strategic plan

should be based on the strategic plans
of the organization.
The six parts of the HRM plan:

1. Determine human resources needs. This part is heavily involved with the strategic plan.
What growth
2. Determine recruiting strategy. Once you have a plan in place, it is necessary to write
down a strategy addressing how you will recruit the right people.
3. Select employees. The selection process consists of the interviewing and hiring process.
4. Develop training. Based on the strategic plan, what training needs are rising? Is the new
software that everyone must learn?
5. Determine compensation. In this aspect of the HRM plan, the manager must determine
pay scales and other compensations such as health care, bonus, and other perks.
6. Appraise performance. Sets of standard need to be developed so you know how to rate
the performance of your employees and continue with their development.

Determine Human Resources Needs

 Were enough people hired?

 What are the skills your current employees possess?
 What skills do your employees need to gain to keep up with technology?

Recruiting

Knowing how many people to hire and what skills they

should possess.

Select

After you have reviewed resumes for a position, now is

time to work toward selecting the right person for the job.
Hiring individuals who have not only skills to do the job
but also the attitude and personality that would fit to the
organization.
Determine the Compensation

Pay system must be developed that motivate employees and embody fairness to everyone
working at the organization.

Develop Training

 Company culture
 Skills needed for the job.
 Human relation skills.

Perform Performance Appraisal

It is a method by which job performance is measured.

References:
Saylor Academy. (2012). Human Resources Management.
https://saylordotorg.github.io/text_human-resource-management/s06-developing-and-
implementing-st.html

https://brauss.in/hrm-basic-notes.pdf

Link for image:

https://open.lib.umn.edu/app/uploads/sites/7/2015/03/cff772060cd59eeceeb524290ab78eea.jpg

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