Human Resource Management

Strategy & Planning

Score allocation

Scoring Items Remarks

Class Attendance 05
Class Participation 05
Group Assignment 10
Individual Assignment 10
Class Test 10
Mid Term Exam 20
Final Exam 40

Human Resource Management

Definition of Human Resource Management

The art and science of acquiring, motivating, maintaining, developing, evaluating and rewarding people in
their jobs in light of their personal, professional and technical knowledge, skills, potentialities, needs and
values and in synchronization with the achievement of individual, organization and society’s goals
According to Edwin Flippo,

"Personnel Management is the planning, organizing, directing and controlling of the procurement,
development, compensation, integration and maintenance of people for the purpose of contributing to
organizational, individual and social goals".
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HRM- How It Works In An Organization

HR Director
Support

ER/ IR Talent Reward  Talent Business HR

Management Acquisition Partner Operations

Admin & Shared Services

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Strategy & Planning

HR Strategic Planning
Human Resource Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for which they
are suited for the achievement of goals of the organization.

Human resource strategy is designed to develop the skills, attitudes and behaviors among staffs that will
help the organization meet its goals.

Definition of Strategic human resource management

Strategic human resource management or SHRC can be defined as the linking of human resources with
strategic goals and objectives, in order to improve business performance and develop organizational
culture that foster innovation, flexibility and competitive advantage.
In an organization, SHRM means accepting and involving the HR department as a strategic partner in the
formulation and implementation of the company's strategies through HR activities such as recruiting,
selecting, training and rewarding personnel.

Strategic HRM Objectives and Plans

Strategic HRM objectives and plans can be linked to strategic organisational objectives such as:
 Cost control — cost reduction via reduced headcount, improved expense control, improved
productivity, reduced absenteeism and lower labour turnover

 Customer service — improved customer service through recruitment and selection, employee
training and development, and rewards and motivation
 Organisational effectiveness — organisational structure, job design, employee motivation,
employee innovation, adaptability to change, flexible reward systems and employee relations.
 Social responsibility —legal compliance and improvements in areas such as equal opportunity,
occupational health and safety, and minority opportunities and development
 Integrity — enhancement of the organisation’s reputation for ethical behaviour, fair treatment of
employees, honesty in communications and honoring of agreements.
 Efficient utilization- Efficient management of Talent becomes an important function in new world
of business. Setting of large scale enterprises requires management of large scale Human Resource.
It can be effectively done through right Talent sourcing strategy. Seeing that all concerned in
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Strategy & Planning
strategic planning appreciate the HR implications of their proposals and understand the potential
HR constraints if action is not taken
 Motivated Team - Ensuring that business planning processes recognize from the outset that the
ultimate source of value is people. Human Resource strategy not only includes putting right men on
right job, but it also comprises of different employee engagement strategy. i.e., incentive plans to
be framed for further participation and employment of employees in a concern.
 Creating a performance oriented culture strategy - Designing and managing the culture, climate
and organizational processes of the business to ensure that everyone can do their job better and
that high-calibre people are found and kept. A concern can stabilize itself if human relations
develop and are strong. Human relations become strong through effective control, clear
communication, effective supervision, mutual respect and leadership style in a concern. A
performance oriented organization needs a right HR Strategy.
 Higher productivity- Productivity level increases when resources are utilized in best possible
manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies.

Areas covered in HR strategic PLANNING

Human resource strategy consists of principles for managing the workforce through HR policies and
practices. It covers the various areas of human resources functions such as
- Employee relations and Industrial relations
- Reward and recognition
- Talent acquisition
- HR Operations
- Talent Management (Training, Development, Career Planning, Career Development)
- Performance management
- HR Business partner
- Re-engineering/Downsizing
- Outsourcing
- Shared Service

HR strategic PLANNING – STEPS

Human Resource Planning has got an important place in the arena of industrialization. Human Resource
Planning has to be a systems approach and is carried out in a set procedure. The steps are as follows:
 
 Analyzing the current Human Resource inventory
 Making future Human Resource forecasts
 Developing employment programs (Employer branding, Recruitment, HR Operation etc)
 Performance management Strategy
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 Design training and development programs
 Performance Evaluation

i. Analyzing the current Human Resource inventory

 
Before a manager makes forecast of future Human Resource, the current Human Resource status has to be
analyzed. For this the following things have to be noted-
 
 Type of organization
 Number of departments
 Employees in these work units
 Business Targets
 Organization’s vision 
Once these factors are registered by a manager, he goes for the future forecasting.

ii. Making future Human Resource forecasts- 

 
Once the factors affecting the future Human Resource forecasts are known, planning can be done for the
future talent requirements in several work units. The talent forecasting techniques commonly employed by
the organizations are as follows:
 
- Expert Forecasts
- Trend Analysis
- Work Load Analysis
- Work Force Analysis
- Other methods

iii. Developing employment programs 

 
Once the current inventory is compared with future forecasts, the employment programs can be framed
and developed accordingly, which will include transfer, recruitment, selection procedures and placement
plans.
 
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iv. Design Training & Development programs

 
These will be based upon
 extent of diversification
 expansion plans,
 Business/Organization target vs Timeline
 Development programs etc.
Training programs depend upon the extent of improvement in technology and advancement to take place.
It is also done to improve upon the skills, capabilities, knowledge of the workers.

HR Strategic planning Execution

Effective execution is one of the biggest challenges that any manager faces. Most organizations are fairly
competent at strategic planning. When it comes to execution of these plans, however, there is a wide gap
between the plan and its implementation. Only a very small percentage of strategic plans actually get
executed. This applies as much to HR strategic plans, as they do to the broad strategic plans for the
organization.
So, how do we ensure that our HR plans get implemented successfully? The answer will vary for each
organization depending on
- the nature of the leadership and the organizational culture.
- It will also depend on the willingness of senior management to be open to new ideas for better
performance,
- and the unique HR related challenges facing the organization.

Nevertheless, broadly speaking, a focus on three key areas can help improve the success rate for the
implementation of your HR strategy.

Step 1: Involvement and Buy-in

Step 2: Commitment
Step 3: Accountability
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Step: 1 Involvement and Buy-in

 
Success in execution begins during the planning phase itself. This can be achieved by getting a high level of
involvement, not just from the HR executives who are part of the planning process, but also from senior
executives who will be critical to the implementation of the plan, from other parts of the organization.
Involving them in the planning process can be accomplished by 

a) ensuring they understand the organization's HR strategy

b)  soliciting their inputs in the planning process
c)  obtaining feedback from them - on challenges and opportunities that success is contingent on 
d) conducting a reality check on actions to execute 
With involvement, comes the ‘buy in’. It is an established fact, that even when people give inputs which are
not finally integrated into the strategy, they still feel a sense of involvement and contribution. This in turn,
helps increase the buy in.

Step: 2 Ensure Commitment

 
Critical to successful execution, is the enhancement and reinforcement of the commitment level of people,
who are responsible for the implementation of the HR strategy. Once again, this will include not just HR
team members but also senior executives from other parts of the organization whose commitment to the
HR strategy is essential for its success.
 
A higher level of involvement and buy in, to a strategic plan leads to a higher level of commitment for
execution. This is why the first step for involvement needs to be applied to all the key people, who will be
involved in its execution. If they have a greater buy in to the plan, they will be more committed to the
execution of the plan, thereby ensuring its success.

Step: 3 Accountability
 
In most organizations, accountability is politely used  to allocate responsibility for a problem, or to find
someone to blame for mistakes made. The word accountability reminds negative emotions.
 
It is important for organizations to build cultures of accountability, by removing the negative emotions
associated with the word and building a positive energy around it. The implementation of accountability in
its true, positive sense, leads to enhanced performances. This happens because, when people work in
organizations, that have a culture of accountability, they then deliver on their commitments to a greater
degree and this leads to more effective execution, which in turn, enhances performance.
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It is a proven fact that more often than not, a culture of accountability has actually enhanced the success
rate of strategic plans being executed.

Factors influence in HR Strategic Planning

Legal
Consideration Vision &
Policy Economy

Technol
Union
Management Corporateogy
Style Culture

Factors
Labor
Market Share
Holder

Employee
Other Unit
Capabilities

Customer

Reference Book
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Strategy & Planning
• Human Resource Management- Gray Dessler
• Human Resource Management -Armstrong M.
• Human Resource Management- Fisher Schoenfeldt
• Human Resource Management- De Cenzo Robbins

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Email: [email protected], Mobile# 01713077770