CH 2 – STRATEGY AND HUMAN RESOURCES PLANNING

CH 2 : STRATEGY AND HUMAN RESOURCES PLANNING

LO1: Explain how human resources planning and a firm’s mission, vision, and values are integrally linked to its strategy

Strategic planning and human resources

Strategic planning and HRP: linking the processes

• Strategy:
  • Strategic planning: procedures for making decisions about the organization’s long-term goals and strategies
  • Human resources planning (HRP): the process of anticipating and providing for the mvt of people into, within, and out of an organization
  • Strategic human resources management (SHRM): the pattern of HR deployments and activities that enable an org to achieve its strategic goals
  • HRP relates to strategic planning but focus on 2 issues:

  4 requirements of strategy

   good strategy is able to answer or address these 4 questions:

  Step 1: Mission, Vision and Values

  • Identify the market: Where do we compete?
    • Providing unique value: What unique value do we bring to those market?
    • Delivering value: What resources and capabilities do we utilize to deliver that value?
    • Sustaining value: How do we sustain our ability to provide that unique value?

  LO2: Understand how an organization’s external environment influences its strategic planning

  • Mission: the basic purpose of the org as well as its scope of operations – a statement of the org’s reason of existing.
    • Vision: a statement about where the company is going and what it can become in the future – clarifies the LT directions of the company and its strategic intent.
    • Values: the strong and enduring beliefs and principles that the company uses as a foundation for its decisions – underlying parameters for how the company will act toward customers, employees and public.
    • Example: putting people first – pursuing excellence – embracing changing – integrity

  Step 2: external analysis

  Environmental scanning

  The competitive environment

  • Systematic monitoring of the major external forces influencing the org

  

  LO3: Understand why it is important for an organization to do an internal resource analysis

  Step 3: internal analysis

  Capabilities: integrated

  Sustaining a competitive advantage through people

  • Knowledge sets within an org that distinguish it from its competitors and deliver value to customers (processes, systems, people make the difference form competitors)
    • Processes: “recipies”
    • Systems: info systems, databases, proprietary technology
    • People: key resource to a firm’s core capabilities

  Types of talent and their composition in the workforce

  • The resources must be:
    • Valuable
    • Rare
    • Difficult to imitate
    • Organized

  Corporate culture

  • Strategic knowledge workers (management, MIS, HR)

  Forecasting

  • Cultural audits: audits of the culture and quality of work life in an org
    • 4 types of corporate culture:
    • Values-based hiring: the process of outlining the behaviors that exemplify a firm’s corporate culture and then hiring people who are a fit for them

    LO4: Explain the linkages btnw competitive strategies and human resources

    • The demand of labour
      • Factors: competitive strategy, techno, structure, productivity
      • 2 approaches:
      • Quantitative (stat + math) – trend analysis: a quantitate approach to forecasting labour demand based on an org index.
      • Qualitative (art, env) – management forecast: the opinions of high knowledgeable people about the org’s future employment needs.
      • The supply of labour
      • Balancing supply and demand considerations

      Step 4: formulating strategy

      Corporate strategy

      Business strategy

      • Focuses on domain selection: market
        • Growth and diversification
        • Increase employee productivity
        • A greater nb of employees
        • Employees dvp and acquiring new skills
        • Mergers and acquisitions
        • Strategic alliances and joint ventures: cooperative strategies

      Functional strategy

      • Domain of navigation
        • To offer an attractive price to customers
        • Focus on efficiency, productivity, and minimizing waste
        • To provide something unique and distinctive
        • Based on high product quality, innovative features, speed to market

        LO5: Understand what is required for a form to successfully implement a strategy and asses its effectiveness

        • Ensuring alignment

        Step 5: strategy implementation

        Taking action: reconciling supply and demand

        • Hard S category: systems and processes formal and informal procedures
          • Soft S category: shared values or core values guiding parameter for strategic planning

        LO6: Describe how firms evaluate their strategies and human resources implementation

        • Proper balance btwn demand considerations (based on forecast trends in business activities) and supply considerations (to determine where and how candidates with the required qualifications can be found to fill a firm’s vacancies)
          • Increase workforce: recruitment and selection
          • Decrease workforce: attrition, termination and layoffs

        Step 6: evaluation and assessment

        Evaluation and assessment issues

        Measuring a firm’s strategic alignment

        • Benchmarking: the process of measuring one’s own services practices against the recognized leaders in order to identify areas for improvement

        Ensuring strategic flexibility for the future

        • Strategy mapping: balanced scorecard: a measurement framework that helps managers translate strategic goals into operational objective
          • Financial
          • Customer
          • Processes
          • Learning