HRM & Strategic Planning

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					Table of contains
   Introduction
   Literature review
   Relationship between strategic planning and HRM
   Links of strategy and HR implements
   Conclusion
   References

Strategic planning
Planning the future –thinking about the most opportunity strategies ,and changes in strategic
direction is essential for organization , particularly these experiencing turbulent
environments. By proper planning used carefully is helpful to provide a valuable description
and analysis of where the organization is now, but for managing the future and its inherent
uncertainties ,vision and flexibility will also be essential ,alongside a clear direction of and
purpose. New thinking is essential for reach new high ground first.
Value of strategic planning

Hunan resource planning or man power planning as it was originally called had. Its start after
world war 2. In the industrial training boards in Great Britain mandate was to require
effective man power planning at the industrial level. It resulted from the influence of
socialistic government policies in England to provide the correct number of skilled
employees within certain age groups for their nationalized industries.
Human resource planning is prerequisite for planning for the future. The HRM manager must
know what skills and potential are present available before beginning to plan, this initial
inventory is called as human resource inventory. The success system is HRM planning , job
analyses and productivity.

Literature review
HRM planning as a part of the strategic planning must considered the environmental
influences on an organization. Human resource planning or, manpower planning as it was
originally called had after world war 2. In the industrial training boards in great Britain whose
mandate was to require effective man power planning at the industrial level.HR planning
must reflect the environmental trends and issues that affect an organization management of
the human resource government regulation relating to condition of employees , EEO,
industrial relations, and occupational health and safety for example must be integrated with
an organization hrm strategies.

   The first stage of a two-stage research project on the relationship between human resource
management (HRM) and strategic business planning (SBP) is described. Based on data
collected from senior human resource executives in 10 Cleveland area companies, a typology
of HRM-SBP linkages is developed. Factors which appear to influence the extent of HRM-
SBP integration are identified and discussed. An agenda for future research is provided.
Here we find the relation more clear. We have the overall corporate strategy that enables the
strategist and the HR manager to formulate the HR objectives. This in turn, give the base to
the manager to plan out the annual HR related programmes broadly, like labor requirements,
recruitment, selection etc. This is further detailed into stepwise and time bound operational
plans, such as whether it would be internal recruitment or external, when will the selection
start, do internal recruitees need to be trained for the proposed project (depending upon the
corporate strategy).

Last but not the least, to remain alive and performing, the feedback cycle is a must at every
stage. we will observe that all the sub systems here are interrelated and interdependent. To
keep in line with the bigger picture and to match each step one needs at every step go back to
the base- step1, which acts as a monitor here. It is time now that we all developed a similar
flow chart in relation to our earlier examples.

Some of the links between strategy and human resource planning are illustrated
in the table below:
Strategies                                                          HR implications
What strategy are we in?                                    What people do we need?
Culture and value system                                       How do you change?
- Appropriate
- Inappropriate
Strategic direction                                     Who will we need in future?
New businesses                               What systems and procedures might be

New markets
Strengths                                     How far related to existing use of HR?
Weaknesses                                                           (e.g. skills base)
Opportunities                                Demand and supply in the labor market?
Critical success factors                        How far do these depend on employees,


 HR management must become an integral part of strategic management process. All
activities of HRM - planning, hiring, training, remunerating and maintaining must be merged
with strategic management.

HR planning can become part of strategic planning at tow ends. At the beginning of strategic
planning HRP provides a set of inputs into the strategic formulation process in terms of
deciding whether the types and numbers of people are available to pursue a given strategy. At
the end of strategic planning process, HRP is relevant in terms of implementation concerns.
Once the strategy is set, executives need to make resource allocation decisions, including
those pertaining to structure, processes and human resources.
In most successful companies there is virtually no distinction between strategic planning and
HRP; the planning cycles are the same and HR issues are seen as inherent in the business
management. HR managers are important facilitators of the strategic planning process and are
viewed as important contributors to carve the organization's future. of both lines as well as
staff managers. Although HRP is initiated and executed by the corporate HR staff, it requires
the input and cooperation of all.

What’s important to note about HR overall is that too often it is omitted from participation in
key strategic decisions. This mistake can be quite detrimental to effectively achieving
strategic goals. Here are some reasons to include HR in the planning process (as well as in
meetings of top management):

1. Selection and Staffing: When goals are set, it’s people who work to fulfill those goals.
Having the right people in the right places is vital, and if new hiring is to occur, finding the
right people is equally vital. HR folks are usually on top of the employee market, and
decisions will be more effective if HR knows firsthand the clear direction of the company.
They can immediately speak to any potential conflicts between what a company wants and
what is truly realistic in HR terms, thus helping ensure the plans are workable right from the
2. Organizational Development: Strategic planning often encompasses change in workplace
systems or processes. Although individual departments are likely aware of the status of their
own departments, HR folks are often aware of group initiatives and changes that has occurred
company-wide. Accordingly, they will be able to speak to OD issues with unique insights on
how changes may impact systems and processes already in place.

3. Training & Development: Research shows that only 20% of the workforce has the skills
that will be required ten years from now. That means training and development are
guaranteed to be needed at some point of the strategic growth process. Again, HRD folks will
be able to speak instantly to any issues, and possibly provide input that could help a company
achieve its goals faster. More reasons exits, but we’ll stop there.

The main point is that HR is often thought of as the place to go for employee conflict,
employee assistance, or compliance issues. But HR is much more than that, and top
management would do themselves and their organizations well if they included HRM and
HRD professionals in their strategic planning.

So we can say that every strategy evolves certain HR needs and to fulfil these needs different
approaches are available. A contingency needs to be developed for the best fit. For instance,
the first strategy may be appropriate in a relatively stable business environment. It counters
competition through its low price and high quality of product or service. As those
explanation it provide that the relation between HRM planning and strategic planning is

by Richard Niehaus Paul Michael Swiercz, Ph.D., Department of Management Science, The
Washington University(HUMAN RESOURCE PLANNING VOL,18.1995)

The role of hr in stratigic planning(by Dan bobinsky,trainning specalist auther 24 feb 2004 .)

Human resource planning:HRP and corporate objectives (lesson 6)

Shay S. Tzafrir, Department of Human Services, Faculty of Social Welfare and Health
Studies, University of Haifa, Haifa, Israel(vol 21,year 2006)