Hr business planning and strategy formulation

relationship between human resource planning and strategic planning pdf

Similarly, if talent is acquired and deployed without reference to the company's strategic goals, then you're going to end up with a lot of people doing jobs that don't add value to the business, and which don't move the company closer to where it wants to be.

These processes can be a source of competitive advantage or sources of frustration, unnecessarily absorbing time, cost and resources. When the key elements are decided, there are a number of simple questions that the HR team should be asking itself as each element of the strategy is considered in turn: START — What are we not doing yet, that the business needs from us?

Usually these responses work at three levels — the individual, team and organisation — and all are geared to achieve high levels of organisational performance. The effort is worthwhile for several reasons.

Relationship between human resource planning and strategic planning

The strategic options here include: Developing new products to sell to its existing customers. What Is Strategic Planning? Because strategic planning and HR planning are interdependent, it really doesn't matter which plan the leadership team begins to develop first. Selling the same products to a completely new group of customers, such as people in a different country. Which Comes First, the Chicken or the Egg? From there, the company's leadership team would start drilling down into the specific strategies that can enable the company to meet its big-picture goals. Answering these questions ensures the business has the right people in the right numbers in the right job roles to ensure the company's profitability. If the organisation is transparent about its key roles and accountabilities, this will define the skills and knowledge required to undertake the work and determine strategic resourcing requirements. Deciding on your resourcing strategy means identifying a number of critical components. Human resources: This resource comprises the people whose talents, skills and personal characteristics the business can use to accomplish its strategic goals. If the organisational structure defines the accountabilities clearly at every level of the organisation, is your HR team selecting and developing against them? Easy, it either follows your business cycle, or is triggered by other key events such as a merger, an acquisition or a change in business direction. What Is the Strategic Planning Process? It is important at an individual level, particularly for senior people, that they feel their development needs are agreed and that they are provided with the skills to do their jobs. Structural weaknesses offer an opportunity to revamp any part of the organisation by identifying and making appropriate changes, reductions in size or cost; or improvements to the quality of the operation.

HR needs to create and install a robust performance management process that sets out performance objectives for all levels of staff within a business. It is important to select those that are most relevant to any particular organisation.

A key part of strategic planning is assessing the company's resources. This in turn identifies the key components of your HR strategy and the virtuous circle of providing whatever your organisation needs for success.

strategic planning and hr planning ppt

For most businesses, those resources fall into three main categories: Technology resources: This includes all the equipment, processes and infrastructure the business uses to create the products and services that it brings to market.

Structural weaknesses offer an opportunity to revamp any part of the organisation by identifying and making appropriate changes, reductions in size or cost; or improvements to the quality of the operation.

Human resources: This resource comprises the people whose talents, skills and personal characteristics the business can use to accomplish its strategic goals.

Hr business planning and strategy formulation

Another concern for HR is when it should make strategic interventions. These processes can be a source of competitive advantage or sources of frustration, unnecessarily absorbing time, cost and resources. The third element is a personal development review process where individual strengths and weaknesses are identified for the purposes of assessing and meeting organisational development needs. Executing the plan As soon as a strategic initiative receives the green light, the human resources team must ready the company's employees for the changes that are about to ensue. Strategic planning and human resources planning basically have a symbiotic relationship, in that each function is dependent on the other. Buying a company that operates a different business model that may or may not complement the company's business model. It's up to HR to feedback how long it will take to hire or upskill permanent staff members and whether the company can work with contractors in the interim. Selling the same products to a completely new group of customers, such as people in a different country. The effort is worthwhile for several reasons. When the key elements are decided, there are a number of simple questions that the HR team should be asking itself as each element of the strategy is considered in turn: START — What are we not doing yet, that the business needs from us?
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Developing HR strategy: 8 steps towards delivering a successful HR strategy