Human Resource Planning

Evaluation
End-Term 40%

Quizzes 20%

Assignments 10%

Project 30%
 Strategy

Strategy: The formulation of organizational

objectives, competitive scopes, as well as
action plans for gaining advantage
• The plan for how an organization intends to
achieve its goals
 Descriptions of Strategy
Strategy: A declaration of intent
Strategic intent: A tangible corporate goal; a
point of view about the competitive positions
a company hopes to build over a decade
Strategic planning: The systematic
determination of goals and the plans to
achieve them
Difference between Strategy and Plan?

• Strategy speaks to the reasons why, while the

plan is focused on how.
 Strategic Plan
• Strategic plans are designed with the entire organization
in mind and begin with an organization's mission.

• Top-level managers, such as CEOs or presidents, will

design and execute strategic plans to paint a picture of
the desired future and long-term goals of the
organization.

• Strategic plans look ahead to where the organization

wants to be in three, five, even ten years.
 Strategic Plan
• Achieving growth

• Improving productivity and profitability

• Increasing return on investments

 Tactical Plans
• Tactical plans support strategic plans by
translating them into specific plans relevant to
a distinct area of the organization.

• Tactical plans are concerned with the

responsibility and functionality of lower-level
departments to fulfill their parts of the
strategic plan.
 Tactical Plan
• Operations Department: Assessing, ordering and
stocking inventory;
• Finance Department: Creating a monthly
budget;
• Marketing Department: Developing a
promotional advertisement for the quarter to
increase the sales of a certain product
• HR Department: Outlining employee's
performance goals for the year.
 Operational Plans
• Operational plans sit at the bottom; they are the plans
that are made by frontline, or low-level, managers.

• All operational plans are focused on the specific

procedures and processes that occur within the lowest
levels of the organization.

• Managers must plan the routine tasks of the

department using a high level of detail.
 Operational Plan

• Looking into purchasing a better oven that can

speed up the amount of time it takes to cook a
pizza

• Considering ways to better map out delivery

routes and drivers.
 The Reality of the Strategic Process

1. Intended strategy: The agreed-upon strategy

arrived at through the formal planning process
2. Emergent strategy: Created from new ideas and
conditions
3. Discarded strategy: Deemed inappropriate due to
changing circumstances
4. Realized strategy: The implemented plan; what
actually happened
The Reality of the Strategic Process
Intended Strategy
• David McConnell aspired to be a
writer.

• When his books were not selling he

decided to give out perfumes as
gimmick.

+
 Emergent Strategy

• The perfume McConnell gave out with his

books were popular than his books :-) ,
inspiring the foundation of California Perfume
Company.
 Realized Strategy
• The California
Perfume Company
changed its name
and became ?

• Avon in 1939
 Intended Strategy
• In mid-1978, faced with unemployment after
being fired from his job as Communications
Director, Bill Rasmussen founded ESPN.
Emergent Strategy
 Realized Strategy
• ESPN is now regarded as the worldwide
leaders in sports, owning several ESPN
affiliates, have ESPN magazine, ESPN radio and
so on
 Facebook –Intended Strategy
Zuckerberg’s original concept in 2003 had a dark
nature.

Zuckerberg created a website called “FaceMash”

where the attractiveness of young women could
be voted on. 
 Discarded Strategy
• Thefacebook for Harvard students only.
 Realized Strategy
• How many active users Facebook has?
• Your Decision to do MBA is an intended/
emergent/ realized strategy?
Corporate and Business Strategy
 Business vs. Corporate Strategies

Business strategy:
The action plan for a single line of business to gain
competitive advantage
 Corporate Strategy
• Growth
• Maintenance of Status Quo (Stability)
• Restructuring
 Growth Strategies

Incremental growth:
Can be attained by
expanding the client
base, increasing

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products/services,
changing the
distribution networks,
or using technology
 Growth Strategies
International growth: Can be attained by
seeking new customers or markets by
expanding internationally
Acquisition: The purchase of one company by
another
Merger: Two organizations combine resources
and become one
 Restructuring Strategies
Turnaround strategy: An attempt to increase the
viability of an organization
Divestiture: The sale of a division or part of an
organization
Liquidation: The termination of a business and the sale
of its assets
Bankruptcy: A formal procedure in which an appointed
trustee in bankruptcy takes possession of a business’s
assets and disposes of them in an orderly fashion
 Turnaround

• HUL faced pressure in 2008 and had to make its brand

competitive.

• Invested in processes and technology. Controlled costs.

 Turnaround
• In the mid-1990s, the company
undertook a massive expansion
of its denim capacity even
though other cotton fabrics
were slowly replacing the
demand for denim. 

• It went into a big debt trap.

• Later, the company came up

with a debt-restructuring plan
for the long-term debts being
taken up in February 2001.
Turnaround
• It manufactures, boilers, vapor
absorption machines, offers water
and waste solutions and installs
captive power projects.

• Revenues and profits stagnated in

the early 2000.

• Restructured Thermax into six core

businesses.

• Brought in professional top

management.
 Turnaround

• Despite high demand for consumer products Dabur was

not able to grow.

• The company outsourced non-core businesses. entered

into new categories (Juice, soups etc).

• Targeted rural India.

• Expanded overseas.
 CESC
• CESC was in red.

• It needed to raise tariffs, increase

capacity and end load shedding.

• Set up a plant. Improved

distribution efficiency.

• Increased service quality.

 Divestiture
• The partial or full disposal of a business unit through sale,
exchange, or closure.

• Divestiture may result from a management’s decision to no

longer operate a business unit because it is not part of a
core competency.

• It may also occur if a business unit is deemed redundant

after a merger or acquisition, if jettisoning a unit increases
the resale value of the firm or if a court requires the sale of
a business unit to improve market competition.
 Liquidation
• Liquidation: The termination of a business and
the sale of its assets
 Liquidation
The Bengal Modern Tea Co.

Tatanagor Foundry Co. Ltd.C.P. No.268 of

Shree Baidyanath Iron & Steel Co.
Ltd.C.P. No. 169 of 1965
Hanuman Fiundries Ltd.C.P. No. 141 of Ltd.C.P. No.38 of 1968
1965
Bangeswari Cotton Mills
Ltd.C.P. No.120 of 1965
Chittagong Engg. Electric Supply Co. United Provinces Commercial Corpn.
Ltd.C.P. No.85 of 1966
Shree Mahakali Coal Mines Ltd.C.P.
No. 134 of 1966
Indian Chemical & Therapeutical
works Ltd.C.P. No. 114 of 1966
Standard Industries & Commercial
Corporation Ltd.C.P. No.192 of 1966
Thackers Press & Directories
Ltd.C.P. No.223 of 1964
1968
Thakurdas Suerekha Iron Foundry
Agrind Fabrication Ltd.C.P. No. 64 of 1967
Ltd.C.P. No.270 of 1967
India Electric works Ltd.C.P. No.261 of
1967
Assam Bengal Cement Co.
Ltd.C.P. No.183 of 1968
Kanoria Industries Ltd.C.P. No.100 of 1968 Indian National Steamship Co.
West Jamuria Coal & Trading co. Ltd.
Instrument Research Laboratory
LtdC.P. No.388 of 1969.
Hill Tippera Tea Co. Ltd.1913 Act
Modern Modulers Ltd. C. P.No
234 of 1971
Pioneer Tea Co. Ltd.C. P. No 4 of
1968
Free India Corp. LimitedC. P. No
275 of 1970
Hindusthan Shipping Co. Ltd.
Rajendra Bros. Ltd.C.P. No.64 of
1970
W. M. Powel & Sons. Ltd.
Ltd.C. P. No 186 of 1970
Mahesh Chunder Lands
Recalmation & Agricultural
Improvement Co. Ltd.
 Bankruptcy/ Liquidation
• Bankruptcy is a legal status of a person or other
entity that cannot repay the debts it owes to
creditors. In most jurisdictions, bankruptcy is
imposed by a court order, often initiated by the
debtor.

• In law, liquidation is the process by which a company

(or part of  a company) is brought to an end, and the
assets and property of the  company are
redistributed
 Bankruptcy/ Liquidation
BASIS OF
BANKRUPTCY LIQUIDATION
COMPARISON
Meaning Bankruptcy is a Liquidation is a
state, where a process in which
person or entity is a company is
not able to pay off finally wound up.
his debts further.

Coverage Persons and Companies only

companies
 Bankruptcy Laws in India

• The special legislation entitled Sick Industrial

Companies (Special Provisions) Act, 1985
('SICA') was enacted to take preventive or
remedial measures for sick companies.

• The Board for Industrial and Financial

Reconstruction (BIFR) was set up under SICA
to deal with revival and rehabilitation of sick
industrial companies.
 Stability Strategies
• These are maintenance strategies where
companies do not wish to see their companies
grow and so their strategic HRM practices
remain constant. These can be called
– status quo
– neutral
– do-nothing strategies
Porter’s Five Generic Competitive Strategies

1. Low-cost provider strategy

2. Broad differentiation strategy
3. Best-cost provider strategy
4. Focused or market niche strategy based on
lower cost
5. Focused or market niche strategy based on
differentiation
 Focused Cost Leadership
• A firm that follows this strategy does not
necessarily charge the lowest prices in the
industry.

• Instead, it charges low prices relative to other

firms that compete within the target market. 
 Focused Differentiation
• A focused differentiation strategy requires
offering unique features that fulfill the
demands of a narrow market.

• Some firms using a focused differentiation

strategy concentrate their efforts on a
particular sales channel, such as selling over
the Internet only
 Focused Differentiation
• Others target particular demographic groups.
• Advantages and Disadvantages of the Focused
Strategies?
 Linking HR Processes to Strategy
Aligning HR strategy with business strategy can be
done in one of three ways:
1. Start with organizational strategy and then create
HR strategy.
2. Start with HR competencies and then craft business
strategies based on these competencies.
3. Do a combination of both in a form of reciprocal
relationship.
 Business Strategy Leads to HR Strategy

• A traditional view that supports the notion

that HRM programs flow from corporate
strategy
• The HR needs are derived subsequent to the
inception of the corporate plan.
• For example, a low-cost strategy needs to be
aligned with low-cost labour, like McDonald’s
or Walmart
HR Competencies Lead to Business Strategy

• A more current view assumes that an

organization cannot implement a strategy if it
does not have the necessary human capital.
• Small businesses are more in tune with this
approach because the impact of human
capital has a greater effect.
 HR Becomes a Business Partner
• Requires concurrent strategy formulation
• HR professionals play a more strategic role, moving from
outsider to insider status.
• HR manager is a partner and problem solver
 Characteristics of an Effective
HRM Strategy

• External fit
• Fit HR and organizational
strategies
• Internal fit
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• Link HR programs to other

functional areas.
• Focus on results
• Results must be measured
and tracked.
 An Overview of HR Planning

Source: Monica Belcourt, Strategic Planning, Cengage Publication