Essays /

Note Essay

Essay preview

Chapter 2 – Strategy and Human Resources Planning

Strategic Planning
Strategic planning – procedures for making decisions about the organization’s long-term goals and strategies Human resources planning (HRP) – the process of anticipating and providing for the movement of people into, within, and out of an organization Strategic human resources management (SHRM) – the pattern of human resources deployments and activities that enable an organization to achieve its strategic goals Dramatic shifts in the composition of the labour force require that managers become more involved in planning, since such changes affect the full range of HR practices (recruitment, selection, training, compensation and motivation) Increased emphasis on HR issues becomes especially critical when organizations consider global strategies, mergers, relocation of plants, innovation, downsizing, outsourcing, offshoring, or the closing of operating facilities

Strategic Planning and HR Planning: Linking the Processes
HR managers are concerned with meshing HRP and strategic planning for the organization Through strategic planning, organizations set major objectives and develop plans to achieve those objectives There are two ways human resources planning relates to strategic planning Strategy formulation  what’s possible? Whether the types and numbers of people are available to pursue a given strategy? Strategy implementation  Once strategy is devised, executives must make primary resource allocation decisions

Step One: Mission, Vision and Values
Mission – the basic purpose of the organization as well as its scope of operations Strategic vision – a statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent Core values – the strong and enduring beliefs and principles that the company uses as a foundation for its decisions Underlying parameters for how the company will act toward customers, employees, and general public

Step Two: Environmental Analysis
Analysis of external opportunities and threats
Changes in the external environment have an impact on the way organizations are run and how people are managed Successful strategic management depends on an accurate and thorough evaluation of the environment because some changes are good opportunities and some are threats Environmental scanning – systematic monitoring of the major external forces influencing the organization The following six forces monitored most frequently:

1. Economic factors, including general, regional, global conditions 2. industry and competitive trends, including new processes, services and innovations 3. Technology changes, including information technology, innovations, and automation 4. Government and legislative issues, including laws and administrative rulings 5. Social concerns, including child care, elder care, the environment and educational priorities 6. Demographic and labour market trends, including age, composition and literacy

Competitive Environment
Analysis of the firm’s competitive environment is central to strategic planning In strategic planning, firms analyze the competitive environment in order to adapt to or influence the nature of competition The more power the force has, the less profitable the industry will be

Customers
Most important assessments a firm can make is identifying the needs of its customers Organizations need to know how they’re going to provide value to customers – foundation for strategy and influences the kinds of skills/behaviours that will be needed from employees

Rival Firms
Need to know who is your competition, need to think outside the box Example: Toys R Us  Walmart wasn’t a toy store but moved into toys successfully

New Entrants
To protect their position, companies try to establish entry barriers tot keep new firms out of the industries

Substitutes
Sometimes the biggest opportunity or threat comes from substitution not from direct competition Firms need to adjust their skill base in order to support different technologies or may need to think about how they could compete in different ways Example: landline phones, cell phones, internet calling

Suppliers
Suppliers provide organizations with key inputs
Inputs include: raw materials for production, money, information and people External Supply of Labour
Many factors influence the labour supply (demographic changes in the population, national and regional economics, education level of the workforce, demand for specific employee skills, population mobility and gov...

Read more

Keywords

-5 1 15 2 3 4 5 6 abil abl acceler accelerated/early account accur achiev acquisit across act action activ ad adapt add adjust administr adopt advanc advantag advic affect age agenc agil agreement aid align allianc alloc allow along also alway among amount analysi analyz and/or anoth anticip anymor approach appropri architectur area aren around aspect aspir assess asset assign attempt attent attitud attrit audit autom autonomi avail background balanc barrier base basi basic becom begin behaviour belief benchmark bend benefit best big biggest bit bonus box bring bsc built busi c calcul call canada candidi cannot cant capabl capac capit care case cash cast categori cell central chang chapter chart child clarifi clear clearl close collect combin come commit compani compar compat compens compet competit competitor complet composit comput concentr concern condit conduct configur conflict connect consid consider contact contract contribut control control/predict cooper coordin copi core corpor cost could creat creation criteria critic cross cross-train cultur current custom data deal death decis decreas deem defin deliv deliveri delphi demand demograph demot depart departur depend deploy depth design desir detail determin develop devis differ differenti difficult direct disadvantag disavantag discret discuss distinct distinguish domain downsiz dramat due duti dynam econom economi educ effect effici effort elder element elicit eligbl elimin els emphasi employ employe empow enabl endur engag enhanc enough ensur enter entrant entri environ environment equal especi establish etc evalu event examin exampl exchang execut expens experi expert extern facil factor failur fall fashion fastest featur file fill financi fire firm firm-specif fit flexibl focus follow forc forecast form formul forthcom found foundat four framework free freez frequent full function fundament futur gap gather general get given global go goal golden good govern government graphic great group guarante help high highlight hire histor holt hope hr hrm hrp hrsdc human i.e idea identifi ignor imit impact implement import improv in-depth incent incl includ inconsist increas index individu industri infiltr influenc info inform initi innov input intang integr intent interact interest intern internet interview inventori invest involv issu job job-bas jobhold joint judgment keep key kind know knowledg labour landlin large law lawyer lay layoff learn least leav left legisl less level life limit link list literaci littl locat logic long long-term longer longer-term look low low-cast low-cost lower lump lump-sum luxuri m made major make maker manag manager mani map market markov match materi mathemat may mean measur member merg merger mesh met method metric minim mission mobil mode model moment money monitor month motiv move movement movi much multipli must mutual nation natur navig need needs/capabilities new news no-layoff nonunion note notic number nurtur object observ occupi occur od offer offshor often on-go one open oper opinion opportun option order organ organiz orient other outcom outplac outsid outsourc overburden overemphas paid parachut paramet part partner past pattern pay paymentgiven peopl percentag perform perman personnel phone physic place plan plant play plot polici popul popular posit possibl potenti power practic pre pre-select predefin predictor prefer price primari principl prioriti problem procedur process product product/service products/services profit project promot protect provid public publish purplus purpos pursu pursuit qualif qualit qualiti quantit question quick quit r rang rapid rare ratio raw re re-employ realloc receiv recent recogn reconcil recruit redeploy redeployment/termination reduc reduct region reinforc relat relationship reliabl reloc remain reorgan replac represent requir resourc respect restrict restructur result retir reveal rewards/security right rival role root rotat rout rule run sale salespeopl save scale scan scope scorecard season select sell senior seniority/ability separ server servic service/salary set sever share shift short short-term show shown shrm sinc six size skill skills/behaviours social solicit someth sometim somewher sourc specif speed spend staf staff standpoint statement statist stay step still store strateg strategi strong structur studi subject substitut subtract success suffici sum summar superior supervisor supplant suppli supplier support sure surplus survey sustain system systemat tabl take talent target team team-bas teamwork technic techniqu technolog tend term termin terminant thing think thorough threat three time togeth told tot toward toy track tradit train transfer translat trend tri two type typic uch under union uniqu upcom us use vacanc valu valuabl various ventur view virtu vision vital vrio vs w walmart wasn wast way weigh weight well wherebi whether within without work worker workflow workforc workweek would year yet