Lesson 4: Strategic planning, HRM planning, and job analysis
1. HR strategic planning process
strategic planning
-determining overall organizational purposes/objectives and how to achieve them
-a series of judgments under uncertainty that companies direct toward specific goals
-based on environmental scanning activities
4 steps of strategic planning (derivative of SWOT)
1. determination of the organizational mission
2. assessment of the organization and its environment
3. setting of specific objectives or direction
4. determination of strategies to accomplish those objectives
mission determination
mission
-continuing purpose or reason for being
-sum of the organization's ongoing purpose
-management expects HR activities to be closely aligned to this mission and add value
toward achieving these goals
environmental assessment
-assess strengths and weaknesses in the internal environment and the threats and
opportunities from the external environment
-there are always threats that counterbalance opportunities
objective setting
objectives: the desired end results of any activity
4 basic characteristics:
1. expressed in writing
2. measurable
3. specific as to time
4. challenging but attainable
strategy setting
-strategies should be developed to take advantage of the company’s strengths and minimize
its weaknesses to grasp opportunities and avoid threats
-lowest-cost strategy: focuses on gaining competitive advantage by being the lowest-cost
producer of a product, selling the product at a price advantage
differentiation strategy: unique services/products (design, brand image, technology,
features, customer service, price), brand loyal consumers are less sensitive to price increase
Lesson 4 1/6
, employee associated with competitive strategies
-deciding which employee roles are instrumental to the attainment of competitive
strategies
-lowest-cost strategy: repetitive and predictable behaviors, short-term focus, autonomous
or individual activity, high concern for quantity of output, primary concern for results
-differentiation strategy: highly creative behavior, long-term focus, cooperative and
independent behavior, risk-taking
strategy implementation
requires changes in the organization’s behavior, which can be brought about by changing
one or more organizational dimensions, including management’s leadership style,
organizational structure, information and control systems, production technology, and HR
leadership: to encourage employees to adopt supportive behaviors, and when necessary, to
accept the required new values and attitudes
organizational structure: determined by the needs of the firm, can be. restructured
information and control systems: reward systems, incentives, objectives-oriented systems,
budgets for allocating resources, information systems, and the organization’s rules, policies,
and implementations
technology: revolutionizing how operations operate today
human resources: central to understanding the future of an asset that is increasingly
important to the organization
2. Human resource planning
HRM planning
systematic process of matching the internal and external supply of people with job openings
anticipated in the organization over a specific period
requirements forecast
determining the number, skill, and location of employees the organization will need at
future dates to meet its goals
availability forecast
determination of whether the form will be able to secure employees with the necessary
skills, and from what sources
forecasting HR requirements
zero-base forecast
uses the organization’s current level of employment as the starting point for determining
future staffing needs meaning each budget must be justified again each year
Lesson 4 2/6
1. HR strategic planning process
strategic planning
-determining overall organizational purposes/objectives and how to achieve them
-a series of judgments under uncertainty that companies direct toward specific goals
-based on environmental scanning activities
4 steps of strategic planning (derivative of SWOT)
1. determination of the organizational mission
2. assessment of the organization and its environment
3. setting of specific objectives or direction
4. determination of strategies to accomplish those objectives
mission determination
mission
-continuing purpose or reason for being
-sum of the organization's ongoing purpose
-management expects HR activities to be closely aligned to this mission and add value
toward achieving these goals
environmental assessment
-assess strengths and weaknesses in the internal environment and the threats and
opportunities from the external environment
-there are always threats that counterbalance opportunities
objective setting
objectives: the desired end results of any activity
4 basic characteristics:
1. expressed in writing
2. measurable
3. specific as to time
4. challenging but attainable
strategy setting
-strategies should be developed to take advantage of the company’s strengths and minimize
its weaknesses to grasp opportunities and avoid threats
-lowest-cost strategy: focuses on gaining competitive advantage by being the lowest-cost
producer of a product, selling the product at a price advantage
differentiation strategy: unique services/products (design, brand image, technology,
features, customer service, price), brand loyal consumers are less sensitive to price increase
Lesson 4 1/6
, employee associated with competitive strategies
-deciding which employee roles are instrumental to the attainment of competitive
strategies
-lowest-cost strategy: repetitive and predictable behaviors, short-term focus, autonomous
or individual activity, high concern for quantity of output, primary concern for results
-differentiation strategy: highly creative behavior, long-term focus, cooperative and
independent behavior, risk-taking
strategy implementation
requires changes in the organization’s behavior, which can be brought about by changing
one or more organizational dimensions, including management’s leadership style,
organizational structure, information and control systems, production technology, and HR
leadership: to encourage employees to adopt supportive behaviors, and when necessary, to
accept the required new values and attitudes
organizational structure: determined by the needs of the firm, can be. restructured
information and control systems: reward systems, incentives, objectives-oriented systems,
budgets for allocating resources, information systems, and the organization’s rules, policies,
and implementations
technology: revolutionizing how operations operate today
human resources: central to understanding the future of an asset that is increasingly
important to the organization
2. Human resource planning
HRM planning
systematic process of matching the internal and external supply of people with job openings
anticipated in the organization over a specific period
requirements forecast
determining the number, skill, and location of employees the organization will need at
future dates to meet its goals
availability forecast
determination of whether the form will be able to secure employees with the necessary
skills, and from what sources
forecasting HR requirements
zero-base forecast
uses the organization’s current level of employment as the starting point for determining
future staffing needs meaning each budget must be justified again each year
Lesson 4 2/6
