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Strategic HRM Planning process and tools
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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 [email protected] Linked In Twitter: @Charles_Cotter
SUMMARY