STRATEGIC HUMAN RESOURCES/ WORKFORCE PLANNING

CHARLES COTTER

25 JULY 2013PALAZZO, MONTECASINO

Introduction

Key presentation topics

Summary

Questions

PRESENTATION OVERVIEW

Strategic Human Resources Management (SHRM)

Strategic Workforce Planning

DEFINING THE FUNDAMENTAL CONCEPTS

Strategic human resource management (SHRM) is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. By a strategic approach to HRM, we are referring to a managerial process requiring human resource (HR) policies and practices to be linked with the strategic objectives of the organization.

SHRM is an approach to managing people that deals with how the organization’s goals will be achieved through its human resources by means of integrated HR strategies, policies and practices.

STRATEGIC HRM

Both internal and external environmental forces shapes, influences and informs HR strategies and plans

The human resources of an organization play a strategic role in its success

HR strategies and plans should be integrated with business strategies and plans

Human capital is a major source of competitive advantage

It is people who implement the business strategy A systematic approach should be adopted to planning

and implementing HR strategies HRM functions are horizontally integrated (bundled)

SHRM PROPOSITIONS

HR/workforce planning is defined as a systematic, yet dynamic process of estimating the future demand for and supply for employees to execute the organization’s work in the ways that best support its strategic direction and deciding how to align and match them.

Workforce planning as assessing future business needs and deciding on the numbers and types of people required.

HR PLANNING

HR PLANNING

STRATEGIC HR PLANNING

Strategic HR planning predicts the future HR management needs of the organization after analyzing the organization's current human resources, the external labour market and the future HR environment that the organization will be operating in. The analysis of HR management issues external to the organization and developing scenarios about the future are what distinguishes strategic planning from operational planning.

Where are we going?

How will we develop HR strategies to successfully get there, given the circumstances?

What skill sets do we need?

STRATEGIC HR PLANNING

Ensure adequate human resources to meet the strategic goals and operational plans of your organization - the right people with the right skills at the right time

Keep up with social, economic, legislative and technological trends that impact on human resources in your area and in the sector

Remain flexible so that your organization can manage change if the future is different than anticipated

PURPOSE OF STRATEGIC HR PLANNING

TOP BENEFITS OF STRATEGIC HR PLANNING

Strategic Analysis

Forecasting HR Demand

Analyzing Supply

Reconciling

HR Action Planning

Monitoring and Evaluating the HR Action Plan

STRATEGIC HR PLANNING PROCESS

STRATEGIC HR PLANNING PROCESS ILLUSTRATED

Review current HR and organizational strategies

Conduct an environmental scan

Micro - sub environmentMarket - sub environmentMacro – sub environment

Preferred tools – SWOT and PESTEL analyses

STRATEGIC ANALYSIS

Forecasting should consider the past and the present requirements as well as future organizational directions

Number of employees

Type of employees

Skills requirements of these employees

Consider and assess the challenges and constraints

FORECASTING HR DEMAND

Assess the current HR capacity of the organization by means of the Skill inventories method

The knowledge, skills and abilities of your current staff need to be identified

Employee experience, education and special skillsCertificates or additional training should also be

included

A forecast of the supply of employees projected to join the organization from outside sources

ANALYZING SUPPLY

RECONCILING

Through a gap analysis, the organization then identifies the gaps between the current and projected human resource needs

Identify practices that could be improved or new practices needed to support the organization's capacity to move forward

What new jobs will we need?What new skills will be required?Do our present employees have the required skills?Are employees currently in positions that use their strengths?Do we have enough managers/supervisors?Are current HR management practices adequate for future

needs?

Determine surplus or deficit

RECONCILING

HR ACTION PLANNING

Restructuring strategies

Training and development strategies

Recruitment strategies

Outsourcing strategies

Collaboration strategies

HR ACTION PLANNING

MONITORING AND EVALUATING THE HR ACTION PLAN

Key points

Questions

Conclusion

Contact details:

Charles Cotter 084 562 9446 charlescot@polka.co.za Linked In Twitter: @Charles_Cotter

SUMMARY