Study Notes for HRM 2605 – Larry Mowbray
HUMAN RESOURCE MANAGEMENT
HRM 2605
TOPIC 2
STUDY UNIT 4:
Chapter 4: Strategic HR planning and research
Introduction
The long-term success of any organisation ultimately depends on having the right people in the right jobs at the
right time. The key to the desired result is effective HR planning (HRP) sometimes referred to as workforce
planning.
How does the HR Manager ensure that the right number of people with the right skills, qualifications and
experience are available in the company at the right time?
HR planning is a process whereby the HR manager anticipates and provides for the movement of people into,
within and even out of the organisation. On the other hand strategic HR planning implies that the company
goals are reflected in company’s mission, which will then translate into appropriate HR objectives that will
ensure that these goals are achieved.
Types of HR Planning
When doing HRP, companies can consider a number of options.
The company can choose whether it wants to be proactive or reactive.
Organisations can make a decision regarding the breadth of the planning by either choosing a narrow focus
by doing only one or two HR areas e.g. recruitment and selection, or it can choose a broad focus by
including additional activities such as training, compensation and so on.
The company can then chose a route to follow, either a formal one or an informal route. When using the
informal route, the planning is done by the thinking and intuition of managers and the HR staff. In the
formal approach a plan is clearly spelled out in writing and backed up by supporting documentation and
data. The latter of which involves to which degree the human resource plan “fits” in with the strategic plan
of the company.
The plan can be loosely tied, if at all, to the company’s strategic plan, or it can be fully integrated with the
strategic plan. Craf has identified the following possible types of linkages, namely;
Input linkages: Here HR information is made available via a specialist HR unit or HR committee doing
scanning either before or during the strategic planning process.
Decision inclusion linkages: Here HR personnel such as the HR executive may serve as a full time partner in
the strategic planning team, and participate in the sessions from an HR perspective.
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,Study Notes for HRM 2605 – Larry Mowbray
Review and reaction linkages: Here HR personnel can respond to a proposed or final strategic plan by
reviewing the plan for flexibility (can the necessary manpower be obtained) and desirability (will there be a
strike) viewpoint.
Planning Horizon
Objectives set out by companies are usually expressed in terms of a time frame or planning horizon; the length
of time required, and the plan for accomplishing the objectives.
Short range objectives (1 year or less) – objective are specific
Intermediate range objectives (1 to 4 years) – objectives are specific
Long range objectives (5 to 15 years) – objectives are general.
Strategy linked HRP
Strategy linked HRP according to Dryer “is the process through which company goals as put forth in mission
statements and company plans are translated into HR objectives”. SHRP thus helps to ensure that the company
is neither over nor understaffed, that employees with the appropriate talents, skills and desire are available to
carry out their tasks in the right jobs at the right times.
Who is responsible for SHRP
The main responsibility rests with HR managers at all levels within the company. In order to do this successfully
the HR managers must liaise with line management. For the HR managers to be successful, the following is
important;
HR managers need to be knowledgeable about the company, as this will enable them to undertake a
thorough analysis and collect data to develop appropriate plans and programmes with align with company
mission and goals.
The HR manager will need to demonstrate their competence and expertise to line managers.
Developing the necessary linkages between HR planning and strategic company planning is a process that
occurs over time. The speed of which this occurs depends on the competitive circumstance, the perceived
potential of HR to play a significant role in the company and the readiness of the HR managers to respond
to opportunities.
Why is SHRP so important?
Linking HR planning with the company planning process will facilitate the organisation’s ability to successfully
pursue a given number of strategic objectives and initiatives and as a result create a competitive advantage.
By linking HR planning with strategic company planning, it will help to ensure that HR programmes and policies
function in such a manner that they achieve immediate and long-range company goals. HR programmes work
better when they are backed by the support of senior management.
Elements of Strategic Human Resource Planning
The 2 essential elements in SHRP are: HR Objectives, and HR Plans.
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,Study Notes for HRM 2605 – Larry Mowbray
HR Objectives: state what is to be achieved with regards to the organisation’s human resources. The
objectives may be stated in both quantitative and qualitative terms, when specifying objectives it is
important to indicate who is responsible for making the needed changes.
HR Plans: can be thought of as a blue print for action. They specify who needs to do what, when, where and
how.
Steps in the SHRP Process (Pg 120 TB)
Situation analysis:
The first step is to monitor and assess the company mission and core businesses, its strategic plans
and parameters as well as its concepts, structure and cultural and HR challenges.
The second step is to conduct environmental scanning to gather information about trends and
anticipated developments in the external (economic, social, technological and political trends) and
internal environment (turn-over, absenteeism, managerial obsolescence, employee demographic
and skill levels) and its relevance for HR strategy. Employee opinions can also be considered via a
survey.
HR demand analysis:
This analysis entails the evaluation of the future supply of labour. The supply component consists of both
internal and external supply.
The success of internal labour supply requires that a detailed employee history is maintained such as in an
HRIS. Information regards the possible external labour supply can also be maintained via an HRIS from
previous applications or from a review of the labour market via surveys.
Strategy development:
HR situation and demand analysis provide diagnostic information which is used in the formulation of the HR
strategy and the design of action programmes. Action programs may include recruitment, selection,
placement, compensation, reduction in work force and appraisal. These activities will have to designed in
accordance with operational requirements.
Succession planning:
Lower level jobs as well as key positions within a company requires to be analysed to determine the
availability of skills to fill these positions in the case of promotions, transfers, retirements, deaths,
resignations or other reasons. This process is known as successor planning, and involves identifying key
management positions and other that the organisation cannot afford to have vacant.
Successor planning is the process of identifying a longer – term plan for the orderly replacement of key
employees.
Successor planning facilitates the transition when an employee leaves, and identifies the development
needs of high potential employees. A replacement chart is a tool used as a tool in traditional succession
planning which indicates key positions and likely candidates. Modern succession planning tools
incorporates this idea in HRIS.
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, Study Notes for HRM 2605 – Larry Mowbray
Common pitfalls in SHRP (Pg 122 TB)
The following has been identified as common pitfalls in the SHRP process:
The identity crises: HR planners work in an environment characterised by ambiguous regulations, company
politics and diverse management styles. Unless HR planners develop a strong sense of mission their
existence might be challenged.
Top management support: For any process to be viable, it must have the full support of management, and
this may not always be forthcoming.
Size of effort: Many SHRP programmes fail early on in the process because of a complex start, the process
should therefore be gradually built up.
Coordination with other functions: It is important that the process is coordinated with the other
management and HR functions.
Integration with company plans: HR plans must be derived from organisational goals and objectives. Plans
made in isolation will not serve any purpose.
Non-involvement of operating managers: Successful SHRP requires a coordinated effort on the part of
operating managers and HR staff. If not the plans designed / formulated will not be executed by line
management.
The technique trap: As the process becomes part of the way an organisation does business, new and
sophisticated techniques have been developed to assist in SHRP. Organisations must decide on the use of
techniques that will fit their needs and work through those systematically, as there is a tendency to adopt
too many varied techniques based on its use by other organisations.
HR Research (Pg 126 TB)
HR research is the collection and investigation of facts related to HR problems in order to eliminate or reduce
those problems. Specific uses of HR research include the following:
The measurement and evaluation of present conditions,
The prediction of conditions, events and behavioural patterns,
The evaluation of current policies, programmes and activities,
The discovery of rational bases for revising current policies, programmes and activities,
The appraisal of proposed policies, programmes and activities
Types of research
HR research as with most research can be classified into basic or applied research.
Page | 4 4
HUMAN RESOURCE MANAGEMENT
HRM 2605
TOPIC 2
STUDY UNIT 4:
Chapter 4: Strategic HR planning and research
Introduction
The long-term success of any organisation ultimately depends on having the right people in the right jobs at the
right time. The key to the desired result is effective HR planning (HRP) sometimes referred to as workforce
planning.
How does the HR Manager ensure that the right number of people with the right skills, qualifications and
experience are available in the company at the right time?
HR planning is a process whereby the HR manager anticipates and provides for the movement of people into,
within and even out of the organisation. On the other hand strategic HR planning implies that the company
goals are reflected in company’s mission, which will then translate into appropriate HR objectives that will
ensure that these goals are achieved.
Types of HR Planning
When doing HRP, companies can consider a number of options.
The company can choose whether it wants to be proactive or reactive.
Organisations can make a decision regarding the breadth of the planning by either choosing a narrow focus
by doing only one or two HR areas e.g. recruitment and selection, or it can choose a broad focus by
including additional activities such as training, compensation and so on.
The company can then chose a route to follow, either a formal one or an informal route. When using the
informal route, the planning is done by the thinking and intuition of managers and the HR staff. In the
formal approach a plan is clearly spelled out in writing and backed up by supporting documentation and
data. The latter of which involves to which degree the human resource plan “fits” in with the strategic plan
of the company.
The plan can be loosely tied, if at all, to the company’s strategic plan, or it can be fully integrated with the
strategic plan. Craf has identified the following possible types of linkages, namely;
Input linkages: Here HR information is made available via a specialist HR unit or HR committee doing
scanning either before or during the strategic planning process.
Decision inclusion linkages: Here HR personnel such as the HR executive may serve as a full time partner in
the strategic planning team, and participate in the sessions from an HR perspective.
Page | 1 1
,Study Notes for HRM 2605 – Larry Mowbray
Review and reaction linkages: Here HR personnel can respond to a proposed or final strategic plan by
reviewing the plan for flexibility (can the necessary manpower be obtained) and desirability (will there be a
strike) viewpoint.
Planning Horizon
Objectives set out by companies are usually expressed in terms of a time frame or planning horizon; the length
of time required, and the plan for accomplishing the objectives.
Short range objectives (1 year or less) – objective are specific
Intermediate range objectives (1 to 4 years) – objectives are specific
Long range objectives (5 to 15 years) – objectives are general.
Strategy linked HRP
Strategy linked HRP according to Dryer “is the process through which company goals as put forth in mission
statements and company plans are translated into HR objectives”. SHRP thus helps to ensure that the company
is neither over nor understaffed, that employees with the appropriate talents, skills and desire are available to
carry out their tasks in the right jobs at the right times.
Who is responsible for SHRP
The main responsibility rests with HR managers at all levels within the company. In order to do this successfully
the HR managers must liaise with line management. For the HR managers to be successful, the following is
important;
HR managers need to be knowledgeable about the company, as this will enable them to undertake a
thorough analysis and collect data to develop appropriate plans and programmes with align with company
mission and goals.
The HR manager will need to demonstrate their competence and expertise to line managers.
Developing the necessary linkages between HR planning and strategic company planning is a process that
occurs over time. The speed of which this occurs depends on the competitive circumstance, the perceived
potential of HR to play a significant role in the company and the readiness of the HR managers to respond
to opportunities.
Why is SHRP so important?
Linking HR planning with the company planning process will facilitate the organisation’s ability to successfully
pursue a given number of strategic objectives and initiatives and as a result create a competitive advantage.
By linking HR planning with strategic company planning, it will help to ensure that HR programmes and policies
function in such a manner that they achieve immediate and long-range company goals. HR programmes work
better when they are backed by the support of senior management.
Elements of Strategic Human Resource Planning
The 2 essential elements in SHRP are: HR Objectives, and HR Plans.
Page | 2 2
,Study Notes for HRM 2605 – Larry Mowbray
HR Objectives: state what is to be achieved with regards to the organisation’s human resources. The
objectives may be stated in both quantitative and qualitative terms, when specifying objectives it is
important to indicate who is responsible for making the needed changes.
HR Plans: can be thought of as a blue print for action. They specify who needs to do what, when, where and
how.
Steps in the SHRP Process (Pg 120 TB)
Situation analysis:
The first step is to monitor and assess the company mission and core businesses, its strategic plans
and parameters as well as its concepts, structure and cultural and HR challenges.
The second step is to conduct environmental scanning to gather information about trends and
anticipated developments in the external (economic, social, technological and political trends) and
internal environment (turn-over, absenteeism, managerial obsolescence, employee demographic
and skill levels) and its relevance for HR strategy. Employee opinions can also be considered via a
survey.
HR demand analysis:
This analysis entails the evaluation of the future supply of labour. The supply component consists of both
internal and external supply.
The success of internal labour supply requires that a detailed employee history is maintained such as in an
HRIS. Information regards the possible external labour supply can also be maintained via an HRIS from
previous applications or from a review of the labour market via surveys.
Strategy development:
HR situation and demand analysis provide diagnostic information which is used in the formulation of the HR
strategy and the design of action programmes. Action programs may include recruitment, selection,
placement, compensation, reduction in work force and appraisal. These activities will have to designed in
accordance with operational requirements.
Succession planning:
Lower level jobs as well as key positions within a company requires to be analysed to determine the
availability of skills to fill these positions in the case of promotions, transfers, retirements, deaths,
resignations or other reasons. This process is known as successor planning, and involves identifying key
management positions and other that the organisation cannot afford to have vacant.
Successor planning is the process of identifying a longer – term plan for the orderly replacement of key
employees.
Successor planning facilitates the transition when an employee leaves, and identifies the development
needs of high potential employees. A replacement chart is a tool used as a tool in traditional succession
planning which indicates key positions and likely candidates. Modern succession planning tools
incorporates this idea in HRIS.
Page | 3 3
, Study Notes for HRM 2605 – Larry Mowbray
Common pitfalls in SHRP (Pg 122 TB)
The following has been identified as common pitfalls in the SHRP process:
The identity crises: HR planners work in an environment characterised by ambiguous regulations, company
politics and diverse management styles. Unless HR planners develop a strong sense of mission their
existence might be challenged.
Top management support: For any process to be viable, it must have the full support of management, and
this may not always be forthcoming.
Size of effort: Many SHRP programmes fail early on in the process because of a complex start, the process
should therefore be gradually built up.
Coordination with other functions: It is important that the process is coordinated with the other
management and HR functions.
Integration with company plans: HR plans must be derived from organisational goals and objectives. Plans
made in isolation will not serve any purpose.
Non-involvement of operating managers: Successful SHRP requires a coordinated effort on the part of
operating managers and HR staff. If not the plans designed / formulated will not be executed by line
management.
The technique trap: As the process becomes part of the way an organisation does business, new and
sophisticated techniques have been developed to assist in SHRP. Organisations must decide on the use of
techniques that will fit their needs and work through those systematically, as there is a tendency to adopt
too many varied techniques based on its use by other organisations.
HR Research (Pg 126 TB)
HR research is the collection and investigation of facts related to HR problems in order to eliminate or reduce
those problems. Specific uses of HR research include the following:
The measurement and evaluation of present conditions,
The prediction of conditions, events and behavioural patterns,
The evaluation of current policies, programmes and activities,
The discovery of rational bases for revising current policies, programmes and activities,
The appraisal of proposed policies, programmes and activities
Types of research
HR research as with most research can be classified into basic or applied research.
Page | 4 4
