HR FORECASTING & PLANNING

[SCIT LIBRARY]

PAUL TURNER

JAICO BOOK

INDEX

PART TITLE CONTENTS

1 STRATEGY,

FORECASTING,

PLANNING &

PEOPLE

1. HR & ITS CONTRIBUTIONS TO STRATEGY

2. MODELS OF STRATEGY

3. FROM STRATEGIC MANPOWER PLANNING TO STRATEGIC HR

FORECASTING

2 THE STRATEGIC HR

FORECAST

4. THE COMPONENT PARTS OF THE STRATEGIC HR FORECAST

5. DEVELOPING ORGANIZATIONAL STRATEGY & STRATEGIC

OPTIONS

6. CREATING HR SCENARIOS

7. ASSESSING THE DEMAND FOR PEOPLE

8. ASSESSING THE SUPPLY OF PEOPLE IN ORGANIZATION

9. ASSESSING THE CULTURAL IMPLICATIONS OF STRATEGY

10. GAP ANALYSIS

3 THE HR PLAN 11. THE COMPONENT PARTS OF HR PLAN

12. THE QUANTITATIVE HR PLAN

13. ORGANIZATIONAL DESIGN & DEVELOPMENT

14. THE RESOURCING PLAN

15. THE LEARNING, TRAINING & DEVELOPMENT PLAN

16. THE REWARD PLAN

17. THE EMPLOYEE-RELATIONS PLAN

4 CONCLUSION 18. CONCLUSION

1

HR & ITS CONTRIBUTIONS TO STRATEGY

HR: HOW DOES HR MAKE A POSITIVE CONTRIBUTION TO STRATEGY?

GOOD HR PRACTICES IS A MAJOR CONTRIBUTOR TO AN ORGANIZATIONS’ COMPETITIVENESS

HUMAN EFFORTS IS A KEY INGREDIENT IN ACCOMPLISHING LONG TERM SUCCESS

THERE IS A LINK BETWEEN HRM & PERFORMANCE AS STATED BELOW:

o BUSINESS STRATEGY > HR STRATEGY > HR PROCESS > HR OUTCOMES [EMPLOYEE

COMPETENCE / COMMITMENT / FLEXIBILITY] > PRODUCTIVITY > FINANCIAL PERFORMANCE

o HR PROCESS > HR EFFECTIVENESS > HR OUTCOMES > QUALITY OF GOODS & SERVICES >

FINANCIAL PERFORMANCE

THE FOLLOWING ITEMS ARE ALSO POSITIVE CONTRIBUTION HR CAN MAKE TO STRATEGY:

o WEB ENABLEMENT

o OUTSOURCING

o ORGANIZATIONAL STRATEGY

WEB ENABLEMENT

o PUT WHOLE RANGE OF HR THINGS ON THE WEB.

o LET PEOPLE MANAGE THEIR OWN HR NEEDS THROUGH TECHNOLOGY

o THIS WILL FREE HR TO FOCUS ON BOTH OPERATIONS & STRATEGY

o COMPUTERIZATION WILL NOT SUBSTITUTE HR’S CLOSE & PERSONAL INTERACTION WITH

THE EMPLOYEES

OUTSOURCING

o OUTSOURCING NON-CORE HR ACTIVITIES TO THOSE AGENCIES FOR WHOM IT IS CORE

FUNCTION

o THIS WILL ALSO FREE HR TO FOCUS ON BOTH OPERATIONS & STRATEGY

ORGANIZATIONAL STRATEGY

o HR POLICIES SHOULD BE ALIGNED WITH ORGANIZATIONAL STRATEGIC PLAN

o SHRF & HRP ARE TWO TOOLS TO CONVERT HR INTO PRACTICAL WORKING THEORIES

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A NEW PARADIGM FOR HR

HUMAN CAPITAL PLANNING WOULD BECOME A STRATEGIC DRIVER, FOR KEY ISSUE FACING THE

ORGANIZATION IS ENSURING THAT RIGHT PEOPLE WITH RIGHT SKILLS ARE IN RIGHT JOBS AT THE

TIME.

DEAL WITH KNOWLEDGE MANAGEMENT, WORKFORCE SCENARIO PLANNING, EFFECTIVE DIVERSITY

MANAGEMENT, & VISION & VALUE ALIGNMENT

HR PROFESSIONAL HAVE TO BE BOTH OPERATIONAL 7 STRATEGIC, & ABLE TO DELIVER ADDED

VALUE TO THE STRATEGIC DEBATE.

IN ALL ORGANIZATIONAL DECISION MAKING, MAKE SURE THAT PEOPLE FACTOR IS CONSIDERED.

CHANGE FROM DELIVERER OF TRANSACTIONS TO A DELIVERER OF STRATEGY

COMMERCIALIZING & INDUSTRIALIZING THE PROCESS OF HR SO AS TO RESPOND TO BUSINESS

DEMANDS

ACHIEVEMENT OF LONG TERM SUCCESS

CHAMPION PEOPLE AT SENIOR MANAGEMENT LEVEL

DEVELOP NEW COMPETENCIES TO BECOME STRATEGIC PARTNER

TO BECOME AN EFFECTIVE BUSINESS PARTNER, COMBINE HRD, HRM & CRM [CUSTOMER

RELATIONSHIP MANAGEMENT]

CONCLUSION:

SHOW MANAGEMENT HOW PEOPLE CAN BE A SOURCE OF COMPETITIVE ADVANTAGE OR

SUSTAINED ORGANIZATIONAL SUCCESS

PROVIDE LINK BETWEEN CORE COMPETENCIES, SHARED LEARNING & SUCCESSFUL STRATEGY. IN

OTHER WORD MEANS HARNESSING INTELLECTUAL CAPITAL CONVERTING IT INTO

ORGANIZATIONAL LEARNING,& ENSURING ITS IMPLEMENTATION

3

MODELS OF STRATEGY: THE GROWING IMPORTANCE OF PEOPLE

THE IMPORTANCE OF PEOPLE TO ORGANIZATIONAL SUCCESS

ORGANIZATIONS HAVE TO GET THE PEOPLE THINGS RIGHT. IF THEY FAIL TO, THE PEOPLE WALK

AWAY, THERE IS CUSTOMER DISSATISFACTION, THE ORGANIZATIONS SUFFER & SHAREHOLDER’S

VALUE FALLS.

HR HAS TO DELIVER NOT ONLY OPERATIONAL EXCELLENCE IN THEIR TRADITIONAL ROLES

[FUNCTIONAL REQUIREMENT] BUT ALSO STRATEGIC VALUE ADDED THROUGH UNIQUE KNOWLEDGE

OF PEOPLE DYNAMICS. THIS IS A COMBINATION OF PRACTICAL EFFICIENCY & PROFESSIONAL

INSIGHT.

MANAGEMENT OF PEOPLE IS MORE THAN THE PROCESSING OF TRANSACTIONAL HYGIENE

FACTORS SUCH AS PAY OR SKILLS TRAINING. INSTEAD PEOPLE HAVE TO BE SEEN AS A SOURCE

OF COMPETITIVE ADVANTAGE. FOR SUSTAINED SUCCESS, ORGANIZATION HAS TO LOOK BEYOND

TRADITIONAL PSYCHOLOGICAL CONTRACT.

THERE IS A CHALLENGE OF ALIGNING THE NEEDS OF THE INDIVIDUALS & ORGANIZATIONS.

OUR STRATEGIC PLAN IS BASED ON THE ASSUMPTION THAT IF THE ORGANIZATION APPLIED

REASON RATHER THAN EMOTION TO THE FUTURE, EVERYTHING WOULD FALL INTO PLACE.

STRATEGY IS ABOUT TAKING STOCK OF WHAT IS GOING ON IN THE EXTERNAL ENVIRONMENT

[GOOD OR BAD] & TRYING TO ALIGN ALL THE PROCESSES OF THE ORGANIZATION IN A WAY THAT

WOULD MAXIMIZE OPPORTUNITY & MINIMIZE RISK

TODAY THERE IS GREATER RECOGNITION FOR FORECASTING & PLANNING, WHICH HAS BEEN

PRECIPITATED BY THE ECONOMIC ADJUSTMENT

WE PREPARE ORGANIZATIONS TO DEAL WITH THE VERY REAL PEOPLE CHALLENGE THAT THEY

WILL FACE IN THE 21ST CENTURY.

FOR THIS; WE USE STRATEGIC HUMAN RESOURCE FORECASTING [SHRF] THAT IS THE INPUT TO

THE STRATEGY PROCESS & HUMAN RESOURCE PLANNING [HRP] THAT IS THE OUTPUT

BOTH THESE ARE BASED ON THE FUNDAMENTAL ASSUMPTION THAT HR STRATEGY IS ALIGNED TO

THE BUSINESS STRATEGY.

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HR FORECASTING & PLANNING STARTS WITH BUSINESS FORECASTING & PLANNING

MICHAEL PORTER VIEW OF STRATEGY

o ORGANIZATION HAS TO TAKE CLEAR STRATEGIC POSITION, UNDERSTAND THAT POSITION

[POSITION MEANS GOAL] & THEN MAKE SURE THAT ITS ACTIVITIES ARE AIMED AT

ACCOMPLISHING OR ENHANCING THE STRATEGY. [ACTIVITIES PERFORMED SHOULD ADD

VALUE, I.E. THERE SHOULD BE VALUE CHAIN]

o THREE TYPES OF STRATEGY:

COST LEADERSHIP

DIFFERENTIATION

FOCUS

THE PURPOSE BEHIND FORMULATING STRATEGY IS TO ACCOMPLISH AN ADVANTAGEOUS

POSITION FOR THE ORGANIZATION

IF THE STRATEGY IS SUCCESSFUL IT WOULD ENABLE AN ORGANIZATION TO GENERATE:

o AN UNDERSTANDING OF HOW COMPETITION FOR THE FUTURE IS DIFFERENT

o A PROCESS FOR FINDING & GAINING INSIGHT INTO TOMORROW’S OPPORTUNITIES

o AN ABILITY TO ENERGIZE THE COMPANY TOP TO BOTTOM FOR WHAT MAY BE A LONG &

ARDUOUS JOURNEY TOWARDS THE FUTURE

o THE CAPACITY TO OUTRUN COMPETITORS & GET TO THE FUTURE FIRST WITHOUT TAKING

UNDUE RISKS

ULTIMATELY SUCCESSFUL STRATEGY WOULD ENSURE THAT THE SHAREHOLDER VALUE IS

MAXIMIZED

ONE OF THE CHALLENGES FACING CONTEMPORARY ORGANIZATION IS TO TRY TO FIND

STRATEGIES & STRATEGIC SETTING PROCESSES THAT ARE RIGHT FOR THEM.

EVERY COMPETITIVE ADVANTAGE IS PREDICATED UPON A PARTICULAR SET OF CONDITIONS THAT

EXISTS AT A PARTICULAR POINT IN TIME FOR PARTICULAR REASONS.

THE VERY EXISTENCE OF COMPETITIVE ADVANTAGES SETS IN MOTIONS CREATIVE INNOVATIONS

THAT AS COMPETITORS STRIVE TO LEVEL THE PLAYING FIELD CAUSE THE ADVANTAGE TO

DISSIPATE.

STRATEGY SETTING IS NOT ALWAYS THE RESULT OF ECONOMIC ANALYSIS, BUT SHOULD ALSO BE

BOUND WITH EMOTION

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HENRY MINTZBERG’S VIEW OF STRATEGY

SEEING STRATEGY SETTING AS A SAFARI, BECAUSE OF

THE UNPREDICTABILITY OF STRATEGIC DECISION

MAKING

MANY ORGANIZATIONS USING STRATEGIC PLANNING

WASTE VALUABLE RESOURCES INEFFECTIVE

STRATEGIC PROCESSES. STRATEGIC THINKING IS

SEEING, HENCE THE APPROACH OF SEEING STRATEGY

SETTING AS SAFARI & NOT ADOPT A SPECIFIC SCHOOL.

THIS APPROACH SETTLES THE UNPREDICTABILITY OF

STRATEGIC DECISION MAKING IN AN ORGANIZATION

THERE IS NO ONE SCHOOL FOR STRATEGY FORMATION.

IT IS IMPORTANT TO BEYOND THE NARROWNESS OF

EACH SCHOOL.

ORGANIZATION HAS CHOICES IN HOW THEY SET

BUSINESS STRATEGY?

FOR HR PROFESSIONALS IT IS MOST IMPORTANT TO

UNDERSTAND AS TO HOW THE ORGANIZATION IS

UNDERTAKING ITS STRATEGY SETTING, & TO ENSURE

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THAT THEY CONFORM TO IT. HR SHOULD TAKE

RESPONSIBILITY FOR EVALUATING STRATEGIC

CHOICES ON BEHALF OF THE EMPLOYEES,

SHAREHOLDERS, OTHER STAKEHOLDERS &

THEMSELVES. THE STRATEGIC CHOICES SHOULD BE

MADE BASED ON RATIONALITY. THE OUTCOME OF THE

ORGANIZATION STRATEGY SHOULD BE USED IN HR

FORECASTING & PLANNING

THE ROLE OF THOSE RESPONSIBLE FOR HUMAN

RESOURCES IN AN ORGANIZATION IS TO PROVIDE THE

RATIONALLY DERIVED INFORMATION IN RESPECT OF

THE PEOPLE IMPLICATIONS OF STRATEGY & TO

COMBINE IT WITH THEIR OWN UNIQUE INSIGHT INTO THE

PEOPLE ASPECT

IT IS A REQUIREMENT OF STRATEGIC HUMAN

RESOURCES FORECASTING THAT SOME BASIC

QUESTIONS ARE ANSWERED:

o HOW MANY PEOPLE THE ORGANIZATION NEEDS TO

ACHIEVE ITS BUSINESS STRATEGY?

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o WHAT KIND OF COMPETENCIES THOSE PEOPLE

NEED?

o WHAT KIND OF MANAGEMENT CULTURE SHOULD

PREVAIL IN THE QUEST FOR SUSTAINED

ORGANIZATIONAL SUCCESS?

o HOW LEADERS CAN PROVIDE DIRECTION IN A

PREVAILING CULTURE OR HOW CULTURE SHOULD

BE CHANGED?

o HOW EMPLOYEES CAN BE ENGAGED WITHIN THE

ORGANIZATION’S MISSION?

ONCE THE ABOVE QUESTIONS ARE ANSWERED, THEN

THE ROLE OF HR IS TO CONVERT THE OUTCOME INTO

HR PLANS

8

FROM MANPOWER PLANNING TO STRATEGIC HR

FORECASTING

REASONS FOR THE USE OF STRATEGIC HR

FORECASTING & HR PLANNING ARE:

o TO TAKE INTO ACCOUNT PEOPLE’S UNIQUE

CONTRIBUTION TO STRATEGIC DIRECTION &

PERFORMANCE

o TO INTEGRATE PEOPLE & ORGANIZATIONAL

STRATEGIES

o ENSURE DEMAND MATCHES WITH SUPPLY OF

PEOPLE IN TERMS OF KNOWLEDGE & ATTITUDE

[COMPETENCE]

o PEOPLE CONSIDERATIONS APPEARS IN STRATEGY

SETTING

o ONE OF THE BUSINESS PLAN’S OUTCOMES

SHOULD BE PEOPLE RELATED

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SHRF & HRP SHOULD GO BEYOND THE APPLICATION OF

QUANTITATIVE METHODS, BY ALIGNING PEOPLE

MANAGEMENT TO BUSINESS STRATEGY

BESIDES HEADCOUNT FACTORS LIKE CULTURE,

ORGANIZATION WELL BEING HAS TO BE CONSIDERED.

EMPHASIS HAS TO BE ON DEVELOPMENT & RETENTION

OF TALENT & NATURE OF LEADERSHIP IN

ACCOMPLISHING THE STRATEGIC GOALS

SHRF & HRP ARE THE TOOLS & TECHNIQUES TO MAKE

THE ABOVE TRUE.

DEFINITION OF SHRF:

A PROCESS BY WHICH AN ORGANIZATION LOOKS

AHEAD AT PEOPLE IMPLICATIONS OF BUSINESS &

ORGANIZATIONAL STRATEGY

OBJECTIVE IS TO GIVE DIRECTIONS TO THE PEOPLE

DECISIONS AT THE STRATEGIC LEVEL THAT WILL

ENABLE THE ORGANIZATION TO ACCOMPLISH

SUSTAINED SUCCESS.

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IT IS CONCERNED WITH EFFECTS OF EXTERNAL

ENVIRONMENT ON PEOPLE.

IT IS CONCERNED WITH SOCIOLOGICAL DYNAMIC

WITHIN INTERNAL ENVIRONMENT

SHRF IS INTENDED TO FORM AN INTERVENTION INTO

THE STRATEGIC PLANNING PROCESS OF THE

ORGANIZATION. IT CONSISTS OF FOLLOWING

STRATEGIC HR ACTIVITIES:

o DIALOGUE WITH STRATEGY MAKERS

o SCENARIO PLANNING ALIGNED TO THE BUSINESS

STRATEGY

o DEMAND & SUPPLY FORECAST FOR THE PEOPLE

ASPECTS OF STRATEGY

o GAP ANALYSIS

o INPUT TO THE HR PLAN

ONCE SHRF HAS BECOME AN INPUT TO THE STRATEGY

SETTING PROCESS IN AN ORGANIZATION, THE OUTPUT

WILL NEED TO BE CONVERTED INTO SOMETHING THAT

WILL ENABLE THOSE IN HR TO ALLOCATE THEIR OWN

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RESOURCES IN A WAY ALIGNED TO BUSINESS

STRATEGY.

SHRF PROCESS

ESTABLISH BUSINESS STRATEGY

CREATE HR SCENARIOS IN RELATION TO THE POTENTIAL

DIRECTION OF THE BUSINESS

SCENARIO 1 SCENARIO 2 SCENARIO 3

ESTABLISH BUSINESS STRATEGY

ASSESS DEMAND

FOR PEOPLE

QUANTITATIVELY &

QUALITATIVELY

ASSESS SUPPLY

OF PEOPLE

QUANTITATIVELY &

QUALITATIVELY

ASSESS

CULTURAL

IMPLICATIONS OF

BUSINESS

STRATEGY

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PREPARE INITIAL STRATEGIC HR FORECAST & GAP

ANALYSIS

PREPARE & COMMUNICATE STRATEGIC HR FORECAST

PREPARE IMPLEMENTATION & MEASUREMENT PROPOSAL

FOR HR PLAN

DEFINITION OF HR PLANNING

IT IS THE OUTPUT THAT ARISES FROM THE PROCESS OF

BUSINESS OR ORGANIZATIONAL STRATEGY SETTING AS

IT AFFECTS THE PEOPLE IN AN ORGANIZATION.

IT CONTAINS QUANTITATIVE ANALYSIS OF HR DATA

RANGING FROM HEADCOUNT &

IT CONSISTS OF FOLLOWING KEY HR ACTIVITIES:

o RESOURCING THROUGH SPECIFIC

ORGANIZATIONAL DESIGN

o QUANTIFIED HR PLANS

o RESOURCE ALLOCATION

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o EMPLOYEE COMMITMENTX

o EMPLOYEE RELATIONS

o LEARNING

o REWARD & RECOGNITION

PART 2

THE STRATEGIC HUMAN RESOURCE FORECAST

[SHRF]

THE COMPONENT PARTS OF SHRF

INTRODUCTION:

THE BUSINESS STRATEGY SETTING HAS

FOLLOWING INPUTS: FINANCIAL, MARKETING,

TECHNOLOGY, POLITICAL, CORE COMPETENCIES

REQUIRED. THE OBJECTIVE IS TO GIVE

DIRECTION TO THE ORGANIZATION THAT

ENABLES RESOURCES TO BE ALLOCATED TO THE

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MOST APPROPRIATE AREA. SUCH A PROCESS

ALLOWS STAKEHOLDERS TO SEE HOW THEIR

INVESTMENT IS BEING UTILIZED & WHETHER

THEY ARE GETTING THE BEST RETURNS FOR

THEIR INVESTMENTS

THE SIGNIFICANT INPUTS INTO THIS PROCESS IS

THE PEOPLE IMPLICATION OF STRATEGY.

SHRF IS NOT A HR PLAN, WHICH IS THE OUTPUT

OF STRATEGIC DEBATE. DIRECTING AN

ORGANIZATION IS DIFFERENT FROM MANAGING

ONE. PLANNING IS A PROCESS AFTER

STRATEGIC THINKING. SHRF IS A CONTRIBUTION

TO DIRECTING. IT IS A CONTRIBUTION TO

STRATEGIC THINKING.

THE PROCESS OF FORECASTING

THE COMPONENTS OF SHRF ARE:

o ESTABLISHING BUSINESS STRATEGY

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o CREATING HR SCENARIOS

o ASSESSING DEMANDS

o ASSESSING SUPPLY

o ASSESSING THE CULTURAL IMPLICATIONS

OF THE BUSINESS STRATEGY

o PREPARING THE INITIAL SHRF

o MOVING TO THE HRP

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DEVELOPING ORGANIZATIONAL STRATEGY &

STRATEGIC OPTIONS

WITHOUT AN UNDERSTANDING OF &

PARTICIPATION IN THE ORGANIZATION’S

STRATEGY, THOSE RESPONSIBLE FOR HR WILL

NOT BE ABLE TO PROVIDE THE UNIQUE INSIGHTS

THAT FORM THE CORE COMPETENCE OF THE

PROFESSION. THIS IS ESSENTIAL TO ACHIEVE

SUSTAINED COMPETITIVE SUCCESS.

STRATEGIC THINKING IS TO RISE ABOVE DAILY

ROUTINE THINKING TO GAIN DIFFERENT

PERSPECTIVES OF THE INTERNAL & EXTERNAL

DYNAMICS CAUSING CHANGE IN THEIR

ENVIRONMENT, & THEREBY GIVE MORE

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EFFECTIVE DIRECTION TO THEIR

ORGANIZATION.. SUCH PERSPECTIVE SHOULD

BOTH FUTURE ORIENT & HISTORICALLY

UNDERSTOOD.

IN FUTURE-ORIENTED, LOOK OUTWARD FOR

STRATEGY FORMULATION & INWARD TO POLICY-

MAKING. WHILE IN PAST & PRESENT

[HISTORICAL] ORIENTATION LOOK OUTWARD

FOR PROVIDING ACCOUNTABILITY & INWARD

FOR MONITORING & SUPERVISING.

MEMBERS OF THE BOARD OF DIRECTORS ARE

DE-FACTO PEOPLE EXPERTS

HR SHOULD GAIN BOARD LEVEL COMMITMENTS

TO ITS STRATEGIC INITIATIVE.

IT IS NOT ENOUGH FOR HR TO BE AN APPENDIX

TO THE MAIN PROCESS OF STRATEGY SETTING.

IT SHOULD BE FUNDAMENTAL & TOTALLY

INTEGRATED.

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THE BOARD OF DIRECTORS SET OVERALL

BUSINESS TARGETS. THE BOARD WILL ALSO

WANT TO AGREE THE PRINCIPLES WITHIN WHICH

THE PEOPLE IN THE ORGANIZATION CAN EXPECT

TO WORK. THESE PRINCIPLES RELATE TO

ETHICAL BEHAVIOUR OF THE EMPLOYEES, &

GOVERNANCE OF THE ORGANIZATION. OTHER

ISSUES LIKE DIVERSITY, EQUALITY OF

OPPORTUNITY, REWARD, REMUNERATION OF

SENIORS & LEADERSHIP ARE REGULAR HR

ITEMS ON THE AGENDA OF THE BOARD. THE

BOARD IS ALSO CONCERNED WITH HOW

MANAGERS ARE EXPECTED TO MANAGE THE

ORGANIZATION.

ONCE THE STRATEGY SETTING PROCESS IS

ESTABLISHED & AGREED, IT IS UPTO THOSE IN

HR TO UNDERSTAND IT. HR PROFESSIONALS

ARE NOT ONLY ACCOUNTABLE FOR STRATEGY

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SETTING PROCESS, BUT ALSO IN ITS

IMPLEMENTATION.

HR PROFESSIONALS HAVE TO PLAY DUAL ROLE:

ONE OF BUSINESS UNIT CHAMPION & THE OTHER

IS ORGANIZATION WIDE PEOPLE SPONSOR.

STRATEGY SETTING RELIES ON BOTH EXTERNAL

& INTERNAL INFORMATION. EXTERNAL

INFORMATION ABOUT MARKETS & COMPETITORS

OR SERVICE REQUIREMENT FROM THE

GOVERNMENT MAKES HELP IN STRATEGIC

DECISION MAKING. THOSE IN HR ARE EXPECTED

TO PROVIDE AN OVERVIEW OF LABOUR

MARKETS, PAY, AND LEGISLATION. THE ABOVE

INFORMATION HAS TO BE INCORPORATED INTO

THE STRATEGY SETTING PROCESS.

IN THE STRATEGY SETTING PROCESS, WIDE

RANGE STRATEGIC OPTIONS WILL BE PUT

FORWARD. BUSINESS UNITS OR FUNCTIONAL

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DIRECTORS DISCUSS WHICH OPTIONS TO

CHOOSE.

EACH OPTION HAS TO BE EVALUATED TO

DETERMINE THE RESOURCES REQUIRED FOR

EACH OPTION.

FINALLY A STRATEGY OR AT LEAST A DIRECTION

EMERGES & PLANS ARE MADE ACCORDINGLY.

21

22

CREATING HR SCENARIOS

(date 8.6.09)

SCENARIO PLANNING IS LINKED WITH

CREATIVE THINKING.

CREATING HR SCENARIOS

SCENARIO PLANNING TRIES TO IMAGINE THE

FUTURE.

A DEBATE ON IT IS INSTIGATED.

THE DEBATE .CAN BE:

o WHAT IF THE ORGANIZATION BECAME A

GLOBAL MARKET LEADER FOR ITS

PRODUCT?

o WHAT IF THE SOURCE OF RAW MATERIAL

DRIED UP?

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o WHAT IF THE WAR FOR TALENT FIZZLED

OUT?

ANOTHER METHOD IS SCENARIO PLANNING WITH

AN OPTION. IN THIS METHOD WE PLAN THE

SCENARIOS FOR EACH OF THE STRATEGIC

OPTIONS DERIVED

FOR EXAMPLE FOR STRATEGIC OPTION “X” HR

RAISES TE SCENARIOS THAT THE ORGANIZATION

MIGHT NOT BE ABLE TO DELIVER BECAUSE

THERE ARE NOT ENOUGH SKILLED PEOPLE

AVAILABLE TO STAFF UP THE BUSINESS UNITS..

THAT IS A GREAT STIMULUS TO DEBATE & CAN

LEAD TO A WHOLE RANGE OF POLICY

CONSIDERATIONS THAT MIGHT NOT NORMALLY

BE PURSUED.

THE BUSINESS STRATEGY SETTING PROCESS

INDICATES STRATEGIC OPTIONS

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STRATEGIC OPTIONS SHOULD BE DEBATED AT

AN EARLY STAGE IN THE STRATEGY SETTING

PROCESS.

HR SHOULD BE INVOLVED IN THE DEBATE TO

UNDERSTAND THE OUTPUT.

THIS ENSURES THAT VITAL PEOPLE ISSUES ARE

ON STRATEGIC AGENDA. AT SOME POINT IN THE

DEBATE A SERIES OF STRATEGIC OPTIONS WILL

BE CONSIDERED. IT IS AT THIS POINT THAT HR

CAN LOOK TO SCENARIO PLANNING TO

EVALUATE THE STRATEGIC OPTIONS IN TERMS

OF CONTINGENCIES THAT MAY PROMOTE OR

HINDER THEIR SUCCESS.

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CONSIDER POSSIBLE SCENARIOS:

HAVING LOOKED AT THE POSSIBLE OPTIONS

THAT MIGHT ARISE FROM THE BUSINESS

STRATEGY, IT MIGHT BE POSSIBLE TO PLAN OUT

SOME SCENARIOS FOR DEBATE. THESE MAY BE

PHRASED IN FORM OF QUESTIONS & INCLUDE;

o IF OUR COMPANY BECAME A GLOBAL

PLAYER, WOULD WE BE ABLE TO MANAGE

IT?

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o WHERE ARE THE MAIN SOURCES OF

COMPETITIVE ADVANTAGE THROUGH

PEOPLE? HOW CAN WE STRENGTHEN

THEM? WHAT IF THEY ARE LOST THROUGH

THE ATTRITION OF KEY STAFF?

o WHAT IF WE MOVED FROM CENTRALIZED TO

DECENTRALIZED STRUCTURE OR VICE

VERSA? HOW WOULD THIS AFFECT THE

WAY WE MANAGED THE ORGANIZATION?

THEY ARE STORIES ABOUT THE FUTURE FROM

WHICH IMAGINATIVE POSSIBILITIES CAN BE

EXTRAPOLATED. THEN THEY CAN BE

CONVERTED INTO PLANS

THE PROCESS OF FOR RAISING THESE

SCENARIOS VARIES. OPTIONS INCLUDE:

o PUTTING SCENARIO PLANNING ON THE

AGENDA AT STRATEGY MEETING

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o SETTING UP A FOCUS GROUP OF SENIOR

MANAGER

o SETTING UP A BRAINSTORMING SESSIONS

WITH A MIXED GROUP

o ALLOCATING SCENARIO PLANNING TO A

GROUP OF HIGH POTENTIAL FAST

TRACKERS TO COME UP WITH SOME

POSSIBLE OUTCOMES.

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FOR EACH SCENARIO IDENTIFY A RANGE OF HR OUTCOMES

ONCE THE STORY IS SET UP, THE NEXT STAGE WILL BE FOR THOSE WHO HAVE HAD AN INPUT TO

THE SCENARIO TO IDENTIFY A RANGE OF POSSIBLE OUTCOMES.

THIS IS AN EXERCISE IN BROADENING THE VISION BEYOND THE ORGANIC & INCREMENTAL.

EXAMPLE:

o THE BUSINESS STRATEGY SUGGESTS A SCENARIO THAT THE ORGANIZATION WINS A

CONTRACT IN ASIA-PACIFIC TO SET JOINT VENTURE COMPANIES TO MANUFACTURE

PRODUCT. THE TIME PERIOD IS TWO YEARS. THE ORGANIZATION HAS NO OFFICE IN ASIA-

PACIFIC REGION.

o WHAT WOULD BE THE HR OUTCOMES OF THIS SCENARIO?

o THE PROCESS FOR IDENTIFYING HR OUTCOMES IS:

DEFINE SOME POSSIBLE OUTCOMES THAT ARE AT THE EXTREME. EXAMPLE:

SALES TAKES OFF 500% OF FORECAST. OR SALES DO NOT TAKE OFF AT ALL.

THERE IS A POLITICAL CHANGE THAT MAKES THE VENTURE POSSIBLE OR

IMPOSSIBLE

DEFINE THE GENERAL PEOPLE REQUIREMENTS OF THE RESULTS OF THE IDEAS

AROUND THESE SCENARIOS

DEFINE THE SPECIFICS IN RELATION TO PEOPLE ISSUES [COMPENSATION

ISSUES FOR EXPATRIATES & LOCAL, EMPLOYEE RELATIONS ISSUES]

QUANTIFY THE COSTS OF SUCH VENTURES IN TERMS OF INCREASES TO THE

PAY BILL, TRAINING COSTS

o THIS IS THE TYPE OF GENERAL & SPECIFIC OUTCOMES WITH WHICH EACH SCENARIO

SHOULD BE FURNISHED, & THE PROCESS SHOULD BE UNDERTAKEN FOR EVERY

SCENARIO THAT COMES OUT OF THE STRATEGY SETTING PROCESS.

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o THE BENEFIT OF ENSURING THAT EACH OF THE STRATEGY OPTIONS HAS A THOROUGH

GROUNDING IN ALTERNATIVE, POSSIBILITIES OF BROADER MINDSET

IDENTIFY SUCCESS & DISASTER POSSIBILITIES

ONCE THE POSSIBLE OUTCOMES FROM THE VARIOUS SCENARIOS HAVE BEEN IDENTIFIED, ASK

THE FOLLOWING TWO QUESTIONS:

o WHAT WOULD SUCCESS LOOK LIKE?

o WHAT ARE THE RISKS TO & THE POSSIBLE SHOW-STOPPERS OF THESE OUTCOMES

KNOWING WHAT THE RISKS TO THE PEOPLE ASPECTS OF A SCENARIO ARE, & THEN DEALING WITH

THEM, IS AN IMPORTANT PART OF THE PROCESS

IDENTIFY DIFFERENCES BETWEEN CURRENT POSITION OF ORGANIZATION & DESIRED FUTURE POSITION

ONE OUTPUT OF SCENARIO PLANNING IS TO HIGHLIGHT GAPS FROM PEOPLE’S PERSPECTIVE.

THE GAPS WITH RESPECT TO ABOVE EXAMPLE SETTING UP A JOINT VENTURE IN ASIA-PACIFIC

THAT MAY EMERGE ARE:

o LACK OF SUITABLE TRAINED STAFF TO RUN JOINT VENTURE

o LACK OF INTERNATIONAL EXPERIENCE

THE GAP ANALYSIS WILL FACILITATE ACTION PLANNING ONCE ONE PROJECTED SCENARIO

BECOMES FIRM

IDENTIFY SUCCESSFUL ACTIONS & MEASURES OF SUCCESS

ONE OF THE MOST IMPORTANT ASPECTS OF THIS PART OF THE SCENARIO PLANNING PROCESS IS

TIME & TIMING.

TOO OFTEN THE PEOPLE ISSUES OF STRATEGY ARE ASSUMED

THE TIME IT TAKES TO DO SOME OF THE PEOPLE PARTS OF STRATEGY IS INVARIABLY

UNDERESTIMATED

REFER BACK TO THE STRATEGY FORUM

ONCE THE SCENARIO HAS BEEN WORKED THROUGH, IT IS ESSENTIAL TO REFER BACK TO THE

STRATEGY FORUM FOR WIDER STRATEGIC DEBATE

THERE IS A TIME LIMIT WITHIN WHICH THE PROCESS IS TO BE MONITORED.

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ASSESSING THE DEMAND FOR PEOPLE

ATTRACTING, DEVELOPING & RETAINING THE RIGHT PERSONNEL FOR BUSINESSES TODAY IS WHAT

LIES AT THE ROOT OF THEIR SUCCESS OR THEIR FAILURE

THE ALIGNMENT OF CORPORATE & PERSONAL VALUES SHOULD LIE AT THE ROOT OF ANY

RECRUITMENT EXERCISE

THE SUCCESS OF ANY BUSINESS IS LARGELY RELIANT ON THE QUALITY & COMMITMENT OF ITS

PERSONNEL

TO GROW OUR BUSINESS, WE HAVE TO FOCUS ON RECRUITING & DEVELOPING PEOPLE NOT JUST

FOR OUR IMMEDIATE REQUIREMENTS BUT ALSO FOR THE FUTURE AS WELL. FOR THIS WE MUST

OFFER THEM AN ENVIRONMENT THAT THEY WANT TO BE IN, ASPIRATIONAL & INSPIRATIONAL

GOALS, & PERSONAL DEVELOPMENT OPPORTUNITIES WHERE THEY CAN THRIVE IN A

CHALLENGING SITUATION.

DEVOTE SUFFICIENT TIME & ATTENTION TO UNDERSTAND & CLARIFY EXACTLY WHAT IS REQUIRED.

THE DEMAND FOR PEOPLE

THE NATURE OF THE DEMAND INFORMATION WILL BE BOTH QUALITATIVE & QUANTITATIVE.

o QUANTITATIVE:

HEADCOUNT

NUMBER OF PEOPLE REQUIRED

GEOGRAPHY

WHERE EMPLOYEES ARE LOCATED

WHERE THEY WILL BE IN FUTURE

DEMOGRAPHICS

AGE

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GENDER

ETHNIC GROUPING

FUNCTIONS

SALES

CUSTOMER SERVICE

TECHNOLOGY

RATIOS

SALES PER PERSON

UNITS MANUFACTURED PER PERSON

RATIO OF HR TO TOTAL WORKFORCE

BENCHMARKS AGAINST OTHER ORGANIZATIONS IN SECTOR

o QUALITATIVE

SKILLS

COMPETENCIES

KNOWLEDGE

TRAINING NEEDS

M & A SKILLS

FUNCTIONAL SKILLS

THE PROCESS FOR DERIVING A DEMAND FORECAST

THE BUSINESS STRATEGY DETERMINES THE LIKELY PEOPLE REQUIREMENTS IN TERMS OF

NUMBERS, LOCATION, AND SKILLS ETC.

o QUANTIFY PEOPLE REQUIREMENTS BY TOTAL NUMBER

o QUANTIFY REQUIREMENTS BY BUSINESS UNIT OR DIVISION

o QUANTIFY REQUIREMENTS BY LOCATIONS

o QUANTIFY REQUIREMENTS BY SKILL / COMPETENCY TYPES

PREPARE AN INITIAL DEMAND FORECAST. [TOTAL THE REQUIREMENT]

SHOW THE REQUIREMENT TO BUSINESS MANAGER. HAVE A DIALOGUE WITH HIM. ENQUIRE WITH

THEM THE FOLLOWING:

o WHETHER THE DEMAND CAN BE PHASED OUT

o WHETHER REDEPLOYMENT IS POSSIBLE

o WHETHER RETRAINING IS POSSIBLE

HR ADDS VALUE THROUGH THE ABOVE DIALOGUE

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THE FIGURE SO ARRIVED IS NOT FINAL. IT CAN BE REVISED DURING THE COURSE OF PERIOD OF

TIME, FOR ENVIRONMENT IS DYNAMIC.

ONCE THE FINAL FIGURE HAS BEEN AGREED UPON THE FORECAST IS CONVERTED INTO PLANS.

THUS FOLLOWS HRP

ASSESSING THE SUPPLY OF PEOPLE IN ORGANIZATIONS

16/04/09

PEOPLE SUPPLY IS AN IMPORTANT DETERMINANT OF WHETHER AN ORGANIZATION WILL BE ABLE

TO DELIVER ITS REQUIRED LEVELS OF PERFORMANCE

THE PROCESS OF DELIVERING A SUPPLY FORECAST IS AS FOLLOWS:

o THE BUSINESS STRATEGY INFORMS INTERNAL SUPPLY OF PEOPLE

o EXTERNAL ANALYSIS USED TO INFORM LIKELY EXTERNAL SOURCES OF SUPPLY

QUANTITY OF SUPPLY ANALYZED BY TOTAL NUMBERS

QUANTITY OF SUPPLY ANALYZED BY LOCATION

QUANTITY OF SUPPLY ANALYZED BY SKILL TYPES

QUANTITY OF SUPPLY ANALYZED BY BUSINESS UNIT

o PROVIDE FEEDBACK TO BUSINESS MANAGERS FOR DEBATE & DIALOGUE

o ONCE THE DIALOGUE HAS TAKEN PLACE & STRATEGY IS AGREED OR CHANGED, THE

PROCESS OF PLANNING STARTS.

o ASSESS THE SUCCESS OF YOUR PLAN

THE FOLLOWING FACTORS AFFECTS THE SUPPLY OF MANPOWER

o POPULATION AGES

o THE SIZE & COMPOSITION OF WORKFORCE DEPENDS PRIMARILY ON THE PROPORTION OF

THE POPULATION THAT PARTICIPATES IN THE ECONOMY & CHARACTERISTICS OF

PARTICIPANTS. THIS PROPORTION- KNOWN AS THE ECONOMIC ACTIVITY RATE-

COMPRISES PEOPLE IN WORK & THOSE ACTIVELY SEEKING WORK. FEMALE ACTIVITY

RATE CONTINUES TO RISE. THE ACTIVITY

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o RELATIVELY FEWER MEN IN THE WORKFORCE

o AN AGEING WORKFORCE

o SKILL PROJECTIONS

o THE IMPORTANCE OF EMPLOYABILITY

o OCCUPATIONAL SHIFTS & TRENDS IN QUALIFICATION

ASSESSING THE CULTURAL IMPLICATIONS OF STRATEGY

CULTURE IS THE CONTEXT WITHIN WHICH INDIVIDUALS & GROUPS OPERATE

IT COMPRISES SET OF BELIEFS, VALUES & ASSUMPTIONS

IT ENABLES ITS MEMBERS TO WORK EFFECTIVELY

THE CULTURAL IMPLICATIONS OF STRATEGY

UNDERSTANDING THE CULTURE OF AN ORGANIZATION IS A PREREQUISITE TO MANAGING ANY

SORT OF CHANGE

THERE IS A CHANGE IN THE ATTITUDE TOWARDS WORK.. ORGANIZATION IS MOVING FROM JOB

CREATION TO WEALTH CREATION, WHICH HAS IMPLICATIONS FOR LOYALTY & DISLOYALTY

HR HAS MAJOR ROLE TO PLAY AS THE VOICE OF CULTURE IN THE ORGANIZATION

THE IMPORTANCE OF UNDERSTANDING CULTURE

THE CULTURE OF THE ORGANIZATION WILL AFFECT THE CONTENT OF CHANGES RECOMMENDED

AS WELL AS HOW THE CHANGES ARE COMMUNICATED

CULTURE HAS AN IMPACT ON THE ULTIMATE SUCCESS OR FAILURE OF THE STRATEGY

CORPORATE CULTURES OF THE WORLD’S MOST ADMIRED COMPANIES ARE:

o ENCOURAGE TEAMWORK

o DELIVERING RELIABILITY ON COMMITMENTS TO CUSTOMERS

o TREATING EMPLOYEES FAIRLY & CONSISTENTLY

o MAXIMIZING CUSTOMER SATISFACTION

o TAKING THE INITIATIVE

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o REWARDING SUPERIOR PERFORMANCE

o ENCOURAGING INNOVATION

o CAPITALIZING ON CREATIVITY

FOLLOWING ARE THE OBSERVABLE WAYS IN WHICH CULTURE SHOWS ITSELF IN ORGANIZATION

o WAY PEOPLE INTERACT, THE WAY THEY ADDRESS, & THE LANGUAGE THEY USE

o THE DRESS CODE

o THE WAY WORK IS ORGANIZED & CONDUCTED EG. PRODUCTION-LINE ASSEMBLY VERSUS

CELLULAR TEAM ARRANGEMENTS

o ORGANIZATION’S SELF IMAGE

o THE DOMINANT VALUES IT ESPOUSES THROUGH ITS MISSION STATEMENTS, COMPANY &

PRODUCT LITERATURE

o THE WAY IT TREATS ITS EMPLOYEE & RESPONDS TO ITS CUSTOMERS

o THE TYPES OF BEHAVIOUR ASSOCIATED WITH BEING A GOOD EMPLOYEE

WHAT ISSUES SHOULD BE RAISED IN THE STRATEGIC HUMAN RESOURCE FORECASTING PROCESS?

UNDERSTAND THE PHYSICAL SETTING

THE EXISTING STATEMENTS ABOUT THE ORGANIZATION’S CULTURE

THE IMAGE THE COMPANY PROJECTS TO THE OUTSIDE WORLD, 7 THE WAY IT IS DISPLAYED IN THE

BEHAVIOURS OF THE INDIVIDUALS

THE PROCESS FOR ASSESSING THE CULTURAL IMPLICATIONS OF STRATEGY

IN ASSESSING CULTURE IDENTIFY THE POSSIBLE CHANGES THAT MIGHT TAKES PLACE AS A

RESULT OF THE STRATEGIC PLANS THAT ARE BEING FORMULATED EG. MERGERS & ACQUISITIONS

OUTSOURCING OF NON-CORE ACTIVITIES

MANUFACTURING IS TO CLOSED IN ONE COUNTRY & MOVED TO ANOTHER. NATIONAL &

ORGANIZATIONAL CULTURES HAVE TO BE TAKEN INTO ACCOUNT

CONDUCT CULTURAL AUDIT FOR THE EXISTING ORGANIZATION

ASSESS THE CULTURAL IMPLICATIONS OF THE NEW BUSINESS STRATEGY. THAT IS FORECAST THE

TYPE OF CULTURE THAT WILL BE SUCCESSFUL IN THE NEW STRATEGIC SCENARIO

IDENTIFY CULTURAL GAPS. PLAN TO CLOSE THE GAPS

COMMUNICATION, EDUCATION & HR PRACTICES TO DEVELOP THE REQUIRED CULTURE

LEADERSHIP TEAM MUST ENGAGE IN THE NEW CULTURAL REQUIREMENTS & WALK THE TALK

CHANGE IN REWARD SYSTEM

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IDENTIFYING MEASURES OF SUCCESS:

MEASURES OF SUCCESS CAN BE CLASSIFIED INTO

o BUSINESS MEASURES

HAS THE STRATEGY DELIVERED THE ANTICIPATED BUSINESS BENEFITS

SUCH MEASURES WOULD BE CONSTITUTED BY SALES, CUSTOMER

SATISFACTION & SO ON

o BEHAVIOURAL MEASURES

HAS THERE BEEN SHIFTS IN THE ATTITUDE OF THE EMPLOYEES.

MEASURED BY STAFF ATTITUDE SURVEYS

o

HAS THERE BEEN SHIFTS IN THE ATTITUDE OF THE EMPLOYEES.

MEASURED BY STAFF ATTITUDE SURVEYS

MONITOR THE CULTURAL CHANGE

GAP ANALYSIS

GAP ANALYSIS REPRESENTS A FINAL PART OF THE SHRF

IN THE PAST GAP ANALYSIS MEANT FILLING THE GAP IN TERMS OF HEAD COUNT. BUT TODAY IT

INCLUDES:

o TRAINING

o CULTURE

o SUCCESSION MANAGEMENT

THE ABOVE ELEMENTS ARE OF HIGH PROFILE BECAUSE OF THE WAR FOR TALENT & ITS

IMPLICATIONS FOR RECRUITMENT& RETENTION, & BECAUSE OF THE NEED TO KEEP A FIRM GRIP

ON COST MANAGEMENT. THE ABOVE ELEMENTS ARE INCLUDED TO GIVE A HOLISTIC APPROACH TO

SHRF

GAP ANALYSIS SHOULD COVER BOTH SHORT & LONG TERM INITIATIVES. IN SHORT TERM, ANY GAP

WILL BE FILLED BY OBJECTIVE BASED REWARD & TRAINING. IN THE LONGER TERM THE FOCUS IS

ON ORGANIZATION & WORKFORCE DEVELOPMENT

IN PEOPLE CONTEXT THERE ARE FOUR CRITICAL AREAS IN WHICH GAPS MAY BE IDENTIFIED AS A

PART OF STRATEGIC HR FORECASTING PROCESS:

o IN THE SUPPLY & DEMAND FOR LABOUR: EITHER AS EXCESSES OF SUPPLY OR EXCESS

OF DEMAND

o DIFFERENCE BETWEEN THE CURRENT CULTURAL MAKE UP OF THE ORGANIZATION & THE

DESIRED FUTURE

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o DIFFERENCE BETWEEN CURRENT THE CURRENT ORGANIZATIONAL STRUCTURE & THAT

INDICATED BY THE STRATEGY DEBATE

o IN ALL ASPECTS OF ORGANIZATIONAL DEVELOPMENT SUCH AS LEARNING, REWARD &

EMPLOYEE RELATIONS

THE ABOVE ISSUES SHOULD BE RAISED IN STRATEGIC DEBATE

PART 2

THE COMPONENT PARTS OF THE HR PLAN:

THE KEY COMPONENTS & THEIR CONSTITUENTS PARTS ARE AS FOLLOWS:

o THE QUANTITATIVE HR P-LAN

o ORGANIZATIONAL DESIGN & DEVELOPMENT

o THE RESOURCING PLAN

o THE LEARNING, TRAINING & DEVELOPMENT PLAN

o THE EMPLOYEE RELATIONS PLAN

THE QUANTITATIVE HR PLAN

IN QUANTITATIVE HR PLAN WE STUDY THE PEOPLE IMPLICATIONS OF STRATEGIC OPTIONS

WE TRY TO PUT SOME DIMENSIONS ON THE FOLLOWING QUESTIONS:

o HOW MANY PEOPLE WE WILL NEED OVER THE NEXT 3-5 YEARS?

o IN WHICH DIVISION / FUNCTIONS DO WE NEED PEOPLE

o WHAT SKILLS DO WE EXPECT THEM TO HAVE

o HOW WILL WE MANAGE SUCCESSION?

o HOW MUCH WILL THE LABOUR FORCE COST?

PREPARE A BASE CASE BY COLLECTING DATA ABOUT PEOPLE WORKING IN THE ORGANIZATION.

THE DATA SHOULD CONTAIN THE FOLLOWING:

o HOW MANY PEOPLE ARE WORKING FOR THE ORGANIZATION?

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o HOW MANY IN EACH DIVISION / DEPARTMENT?

o BREAKUP OF THE PEOPLE IN TERMS OF GENDER / GRADES / COMPETENCE

THE BASE DATA BECOMES THE FOUNDATION FOR FUTURE PLAN.

THE TWO MAIN COMPONENTS OF THE QUANTITATIVE ANALYSIS ARE DEMAND & SUPPLY.

FOLLOWING ARE THE TECHNIQUES USED TO DETERMINE THE EMAND FOR PEOPLE:

o TREND ANALYSIS

STUDY OF PAST EMPLOYMENT TRENDS OVER THE LAST FIVE YEARS IN ORDER

TO PREDICT FUTURE TRENDS

o RATIO ANALYSIS

IT IS RATIO BETWEEN CAUSAL FACTORS LIKE SALES VOLUME & THE NUMBER OF

EMPLOYEES REQUIRED

o SCATTER PLOT

DETERMINING WHETHER TWO ORGANIZATIONAL FACTORS: A MEASURE OF

BUSINESS ACTIVITY & THE STAFFING LEVELS ARE RELATED.

THERE IS A CONSTANT NEED FOR MONITORING & UPDATING OF THESE PLANS

SIMILARLY PREPARE AN ANALYSIS OF THE REQUIREMENTS FOR SUPPLY OF PEOPLE. THE

OBJECTIVE IS TO IDENTIFY THOSE ISSUES LIKELY TO IMPACT ON THE ABILITY TO DELIVER TO THE

STRATEGY. WE ADDRESS THE FOLLOWING FACTORS ON SUPPLY OF LABOUR SIDE:

o LABOUR MARKET TRENDS FOR KEY SECTORS

o LABOUR MARKET TRENDS FOR GEOGRAPHIC SECTORS

o DEMOGRAPHIC IMPLICATIONS

OUTLINE ANY CHANGES IN THE SKILLS MIX THAT MIGHT RESULT FROM THE ORGANIZATIONAL

STRATEGY

COMBINE ALL ELEMENTS INTO A QUANTIFIED HR PLAN SHOWING FLOWS & GRADE / SKILLS MIX

COMMUNICATE THE QUANTIFIED HR PLAN TO THE SENIOR MANAGEMENT TEAM

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ORGANIZATIONAL DESIGN & DEVELOPMENT

TWO CONCEPTS ARE IMPORTANT IN PREPARING THE HR PLAN:

o ORGANIZATIONAL DESIGN

o ORGANIZATIONAL DEVELOPMENT

THERE ARE TWO ASPECTS IN DESIGNING AN ORGANIZATION:

o BASIC STRUCTURE

HOW THE WORK IS DIVIDED & ALLOCATED BETWEEN VARIOUS INDIVIDUALS OR

DEPARTMENTS. THAT IS ALLOCATION OF TASKS & RESPONSIBILITIES

THE SYSTEM OF REPORTING RELATIONSHIPS, THE HIERARCHY & THE VARIOUS

SPANS OF CONTROL

o OPERATING MECHANISM

CONSISTS OF RULES , PROCEDURES, CONTROLS & POWERS

IN ORGANIZATIONAL DEVELOPMENT THE FOCUS IS ON INDIVIDUAL SKILLS, MOTIVATION &

COMMITMENT. IT IS INCREASING ORGANIZATION EFFECTIVENESS THROUGH INTERVENTIONS IN

ORGANIZATIONAL PROCESS.

THE PROCESS FOR PREPARING THE ORGANIZATIONAL DESIGN & DEVELOPMENT PLAN

THE PROCESS IS AS FOLLOWS:

o IDENTIFY & ARTICULATE THE BASIS OF THE CURRENT STRUCTURE [WHETHER

ORGANIZATION STRUCTURE IS FUNCTION BASED OR PRODUCT BASED OR GEOGRAPHY

BASED]

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o IDENTIFY & ARTICULATE THE EXISTING CULTURE OF THE ORGANIZATION.[WHETHER IS

ORGANIZATION IS STRONGLY CENTRALIZED STRUCTURE, & IF ORGANIZATION WANTS TO

TRANSFORM ITSELF INTO DECENTRALIZED STRUCTURE, HR SHOULD BE ABLE EXPLAIN ITS

RAMIFICATIONS]

o KNOW THE CURRENT HEADCOUNT

THE STARTING POINT FOR ORGANIZATIONAL DESIGN IS THE BUSINESS STRATEGY. THE KEY FOCUS

TO BE SOUGHT FROM BUSINESS STRATEGY ARE:

o PLANS TO ACQUIRE OR MERGE

o PLANS TO EXPAND INTO NEW AREAS

o PROPOSALS TO COMBINE DEPARTMENTS

o PROPOSALS TO SET UP SHARED SERVICES FOR SUPPORT FUNCTION

EACH OF THESE HAS ITS OWN IMPLICATIONS FOR THE STRUCTURE OF THE ORGANIZATION.

ONCE THE ORGANIZATION DESIGN HAS BEEN OUTLINED FOR DISCUSSIONS, THE ORGANIZATION AL

DEVELOPMENT IMPLICATIONS SHOULD THEN BE PUT FORWARD

THE ORGANIZATION DESIGN SHOULD BE AGREED BY CEO & HIS TEAM MEMBERS

THEN PREPARE A TRANSITION PLAN TO TAKE THE ORGANIZATION FROM CURRENT STATE TO NEW

DESIGN. THE TRANSITIONAL PLAN SHOULD INCLUDE THE FOLLOWING:

o APPOINTMENTS IF THE STRUCTURE UNDERGOES A CHANGE

o HR SUPPORT FOR THIS PROCESS

o DEALING WITH THOSE WHO DO NOT FEATURE IN NEW DESIGN

o COMMUNICATING NO CHANGE

THE TRANSITIONAL PLAN SHOULD BE MAINTAINED BY HR HEAD TILL IT IS STABILIZED

IN APPOINTMENTS IT IS MOST CRITICAL TO GET RIGHT PERSON

CULTURAL ISSUES SHOULD BE IDENTIFIED FOR ALIGNMENT PURPOSE. FOLLOWING KEY CULTURAL

POINTS SHOULD BE TAKEN INTO ACCOUNT WHEN ORGANIZATIONAL DESIGN IS BEING

CONSIDERED.

o BE AWARE OF CULTURAL DIFFERENCES. IDENTIFY THEM, & RAISE THEM AS A HR ISSUE

o BE SPECIFIC ABOUT CULTURE. IT IS NOT A SOFT ISSUE TO BE IGNORED. IF IGNORED IT

CAN LEAD TO FAILURE OF A CHANGE

o SHOW HOW CULTURE WILL CHANGE BECAUSE OF CHANGES IN ORGANIZATIONAL DESIGN

o HR SHOULD COME OUT WITH TEAM BUILDING & PERSONAL DEVELOPMENT TECHNIQUES

TO HELP IN THE PROCESS OF CULTURAL CHANGE

FINALLY IMPLEMENT & COMMUNICATE THE NEW STRUCTURE.

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THE RESOURCING PLAN

THE IMPORTANCE OF RESOURCING

RESOURCING IS BECOMING CRITICAL FOR

o DEMAND FOR TALENT EXCEEDS SUPPLY

o TALENTED PEOPLE CARRY A PREMIUM. HENCE NEED TO RETAIN KEY TALENT

o IF THE ORGANIZATION GOES FOR DOWNSIZING, THEN IT HAS AN EFFECT ON THE

COMMITMENT OF THE PEOPLE WHO STAY BACK

o REDEPLOYMENT IS AN ATTRACTIVE OPTION IN RESOURCE PLANNING. INSTEAD OF

DOWNSIZING. IT INVOLVES RETRAINING & RELOCATION.

THE RESOURCING PLAN

IT SHOULD BE ALIGNED TO BUSINESS STRATEGY

IN RESOURCE PLANNING:

o IDENTIFYING THE LEVELS OF RECRUITMENT, REDEPLOYMENT & REDUNDANCY FROM THE

STRATEGIC HR FORECASTING PROCESS

THE STARTING POINT OF THE RESOURCING PLAN IS THE OUTPUT OF THE

STRATEGIC HUMAN FORECAST. DONE TO ENSURE ALIGNMENT OF RESOURCING

WITH BUSINESS STRATEGY

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IF THE STRATEGY IS RECRUITMENT, REDEPLOYMENT, REDUNDANCY, THE

RESOURCE PLANNING SHOULD IDENTIFY ITS IMPLICATIONS. FOR EXAMPLE IN

ONE OF THE DIVISION THERE IS A NEED FOR PEOPLE FOR THERE IS A LAUNCH

OF A NEW PRODUCT, & IN ANOTHER .DIVISION THERE IS A NEED FOR

DOWNSIZING FOR THERE ARE SURPLUS PEOPLE,

QUANTIFY THE IMPLICATIONS FOR EACH AREA & DERIVE NET INFLOWS &

OUTFLOWS.

STUDY THE PROPOSALS FOR EACH OF THE ACTIVITIES [COST OF EACH RECRUIT

& EXIST

THEN PREPARE RESOURCE PLAN.

o IDENTIFYING KEY RETENTION ISSUES THAT ARISE FROM THE FORECAST

IDENTIFY WHICH INDIVIDUALS OR GROUPS OF EMPLOYEES ARE CRITICAL OVER

THE LIFE OF THE STRATEGY

PUT REMUNERATION PACKAGE IN PLACE, TO ENSURE RETENTION OF KEY

EMPLOYEES. TO SEE THE STRATEGIES THROUGH.

o SETTING RECRUITMENT OBJECTIVES & TARGETS

IN CASE OF RECRUITMENT, SET MEANINGFUL TARGETS SO THAT SPECIFIC

ACTIONS CAN BE TAKEN.

o PLANNING FOR DEPLOYMENT & REDUNDANCY

REDEPLOYMENT IS AN EXCELLENT OPTION IN CASE RECRUITMENT HAS TO BE

DONE IN ONE UNIT,& REDUCE PEOPLE AT SOME OTHER DIVISION.

RESOURCE PLANNING SHOULD ANTICIPATE THE REDUNDANCY THAT WILL BE

TAKING PLACE.

BEFORE BEGINNING THE PROCESS OF REDUNDANCY, ENSURE THE FOLLOWING:

COMMUNICATE THE EMPLOYMENT ABOUT LAY OFFS & CLOSURE

LEGAL COMPLIANCE

POLITICAL IMPLICATIONS

FINANCIAL PROVISIONS

OPPORTUNITY FOR REDEPLOYMENT

o RESOURCING PLAN SHOULD BE BASED ON PRINCIPLES

o THERE SHOULD BE POLICY ON RESOURCING PLAN

o ESTABLISH RETENTION POLICIES & PRACTICES

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o THE BUSINESS MANAGERS SHOULD ACCEPT THE RESPONSIBILITY OF IMPLEMENTING THE

RESOURCE PLAN

THE LEARNING, TRAINING & DEVELOPMENT PLAN

THE IMPORTANCE OF LEARNING, TRAINING & DEVELOPMENT

SUCCESS OF AN ORGANIZATION DEPENDS ON LEARNING, TRAINING & DEVELOPMENT.

IN THE FAST MOVING ENVIRONMENT THE EFFECTIVE HARNESSING & DEVELOPMENT OF PEOPLE

SKILLS ARE INCREASINGLY BECOMING A POWERFUL SOURCE OF COMPETITIVE ADVANTAGE.

THERE ARE THREE SIGNIFICANT CONTRIBUTORY ELEMENTS TO THE PREPARATION OF THE

TRAINING PLAN

o AN UNDERSTANDING OF EXTERNAL INFLUENCE

ROLE OF GOVERNMENT

ROLE OF TECHNOLOGY

CHANGING BUSINESS ENVIRONMENT

o AN UNDERSTANDING OF INTERNAL FACTORS

UNDERSTANDING OF BUSINESS OR ORGANIZATION STRATEGY

TRAINING AS A TOOL FOR RETAINING & MOTIVATING.

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CAREER & SUCCESSION PLANNING

o THE PROCESS BY WHICH THE PLAN IS TO BE PREPARED

1. WHAT ARE THE BUSINESS NEEDS?

HOW WILL IT BE MET? BY SYSTEMATICALLY SCANNING THE

ENVIRONMENT

2. WHAT ARE THE PERFORMANCE NEEDS BEST MET BY TRAINING? [IDENTIFYING

TRAINING NEEDS]

HOW IS IT DONE:

o SUCCESSION PLANNING

o PERFORMANCE APPRAISAL

o CAREER DEVELOPMENT

3. WHAT PRECISELY IS THE PERFORMANCE GAPS? [SPECIFYING TRAINING NEEDS]

HOW IS IT DONE

o PREPARING JOB SPECIFICATION

o ANALYZING PERFORMANCE GAPS

4. WHAT ARE THE TRAINING DECISIONS? [TRANSLATING TRAINING NEEDS INTO

ACTION]

HOW IS IT DONE

o DECIDING ON FORMAL / INFORMAL TRAINING

o PREPARING TRAINING SPECIFICATION

o DECIDING TO MAKE OR BUY TRAINING

5. WHAT IS THE TRAINING PLAN [PLANNING THE TRAINING]

HOW IS DONE:

o ASSEMBLING & PRIORITIZING INFORMATION

o PREPARING & MONITORING TRAINING PLANS

6. IS THE TRAINING EFFECTIVE IN MEETING BUSINESS NEEDS?

HOW IS IT DONE

o EVALUATING TRAINING PROGRAM THROUGH KIRKPATRICK’S

MODEL

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THE REWARD PLAN

REWARD IS FUNDAMENTAL PART OF THE RELATIONSHIP, BETWEEN THE EMPLOYEE & THE

ORGANIZATION.

REWARD IS NO LONGER JUST ABOUT MONEY, IT IS ABOUT A COMPLEX SET OF OPTIONS THAT

INCLUDE NON-FINANCIAL BENEFITS.

REWARD PLAN IS ABOUT ACHIEVING BOTH THE OBJECTIVES OF THE BUSINESS & THOSE OF

INDIVIDUALS

REWARD PLAN SHOULD BE BASED ON A RANGE OF INPUTS INCLUDING THE BUSINESS STRATEGY &

THE ORGANIZATION’S APPROACH TO PERFORMANCE MANAGEMENT.

THE FOLLOWING ARE THE THEMES FOR SHAPING THE STRATEGIC APPROACH TO REWARD:

o INCREASE EMPLOYEES’ ENGAGEMENT WITH THEIR ORGANIZATIONS

o MANAGING SKILL / COMPETENCY SHORTAGES

o RECOGNITION OF CONTRIBUTIONS MADE BY INDIVIDUALS & TEAM MEMBERS

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o MOVE ALL THE EMPLOYEE’S UP THE PERFORMANCE CURVE.

THE FOLLOWING ARE THE FOUR ELEMENTS THAT ALIGN REWARD TO BUSINESS OBJECTIVES:

o DEFINING STRATEGIC OBJECTIVES FOR BOTH ORGANIZATION AS A WHOLE & INDIVIDUAL

BUSINESS UNITS

WHAT ARE THE THINGS THAT EMPLOYEE WILL WANT TO GET OUT OF REWARD

RELATIONSHIP WITH EMPLOYER

WHAT DOES EMPLOYER WANT TO ACHIEVE BY REWARD STRATEGY & PLAN.

EMPLOYEE OBJECTIVE EMPLOYER OBJECTIVE

PURCHASING POWER PRESTIGE: THE ENDEAVOUR TO BECOME KNOWN AS

A GOOD PAYER

TERMS & CONDITIONS THAT ARE FELT FAIR TO PAY COMPETITIVE RATES

GUARANTEED EMPLOYEE RIGHTS TO MAINTAIN CONTROL OF OPERATIONS

RETENTION OF RELATIVITIES BETWEEN GROUPS & /

OR INDIVIDUALS

TO PROVIDE PAY THAT MOTIVATES & INCREASES

PRODUCTIVITY

RECOGNITION OF PERSONAL CONTRIBUTION TO MINIMIZE COSTS

COMPOSITE COMPENSATION: VARIABLE MAKE UP OF

THE REWARD PACKAGE

o WHILE PREPARING REWARD PLAN FOLLOWING INFORMATION IS NEEDED:

BASIS OF REWARD

ORGANIZATIONAL DIVISION

REGIONAL VARIATIONS

FUNCTIONAL VARIATIONS

AGE GROUP

GENDER

LEVEL OF RESPONSIBILITY

o BASIS OF BREAKDOWN OF REWARD:

DIRECT OR INDIRECT

OVERTIME

PENSIONS

BENEFITS

EMPLOYEE SHARE OWNERSHIP

o BASIS FOR KEY REWARD INDICATORS:

MOVEMENT IN EARNINGS

LABOUR TURNOVER

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RECRUITMENT & RETENTION RATES

o EXTERNAL INFLUENCES ON REWARD

LEGISLATION

COMPETITION FOR LABOUR IN INDUSTRY OR MARKET RATES

BENCHMARKING AGAINST COMPETITOR OR SIMILAR ORGANIZATIONS

o WHILE PREPARING REWARD PLAN FOLLOWING APPROACHES ARE CONSIDERED:

VERTICAL

APPLICABLE TO A DIVISION OR FUNCTION.

EG. SALES INCENTIVE

PRODUCTIVITY BASED PAY SCHEME

PROJECT BASED INCENTIVES

CUSTOMER SERVICE BONUS SCHEME

HORIZONTAL

ORGANIZATIONAL APPROACH

EG. EQUAL PAY

BROADBANDING

OVERALL COMPANY PROFIT

o STARTING POINT FOR A REWARD PLAN IS UNDERSTANDING WHAT IS CURRENTLY IN

PLACE

o THEN COMPARE THE EXISTING REWARD SCHEME WITH PROPOSED REWARD SCHEME

o LOOK AT THE IMPLICATIONS ON REWARD OF THE STRATEGIC OPTIONS THAT HAVE BEEN

PROPOSED. LOOK AT THE OVERALL PICTURE.

o ADDRESS THE HORIZONTAL & VERTICAL PART OF THE REWARD SYSTEM.

o IDENTIFY THE REWARD OPTIONS THAT RESULTS FROM THE STRATEGY. FLEXIBLE

BENEFITS CAN BE CONSIDERED AS AN OPTION FOR REWARD STRATEGY

o OUTLINE HOW THE REWARD STRATEGY MIGHT MOVE THE ORGANIZATION FROM CURRENT

TO PROPOSED OPTION.

o QUANTIFY THE COSTS OF THE REWARD PLANS & THEIR BENEFITS.

o PRESENT TO OPTIONS TO CEO & HIS TEAM. FOR APPROVAL.

o CONSULT THE EMPLOYEE REPRESENTATIVES ON REWARD PLAN.

o AGREED OPTION IS COMMUNICATED TO THE EMPLOYEES.

o MONITOR & EVALUATE THE REWARD PLAN.

o BRING ABOUT AMENDMENTS, IF ANY BASED ON FEEDBACK

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THE EMPLOYEE RELATIONS PLAN

EMPLOYEE RELATIONS & BUSINESS STRATEGY

o EVERY BUSINESS STRATEGY WILL HAVE AN IMPLICATION ON EMPLOYEE RELATIONS.

o EMPLOYEE RELATIONS INCLUDE:

INDUSTRIAL RELATIONS

EMPLOYEE COMMITMENT

o IR IS RELATIONSHIP BETWEEN MANAGEMENT & WORKERS. WORKERS ARE REPRESENTED

BY UNIONS.

o THE OBJECTIVE BEHIND SUCH FORMAL RELATIONSHIP BETWEEN WORKERS &

EMPLOYERS ARE:

MINIMIZING WORK DISRUPTION

REDUCE OVERT CONFLICT

HAVING GRIEVANCE PROCEDURE

INCREASING COOPERATION & COMMITMENT SO AS TO INCREASE ACCEPTANCE

OF CHANGE

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TO DETERMINE EMPLOYEE COMMITMENT THROUGH ATTITUDE SURVEY.

ANOTHER INDICATOR OF EMPLOYEE COMMITMENT IS EMPLOYEE TURNOVER.

o IR CONSISTS OF FOLLOWING STAGES:

PRESENTATION OF BOTH SIDES OF THE CASE

NEGOTIATION & AGREEMENT

IF UNDERSTANDING REACHED, AGREEMENT DRAWN UP.

IF FAIL TO AGREE OPTIONS ARE:

REFER TO ARBITRATION

OR STRIKE

o TODAY HR PROFESSIONALS NEED NEW SET OF COMPETENCIES TO DEAL WITH MODERN

WORKFORCE

o EMPLOYEE RELATIONS MEANS THE OVERALL RELATIONS AN INDIVIDUAL HAS WITH THE

ORGANIZATION.

o A SUCCESSFUL RELATIONSHIP CAN BE ESTABLISHED IF THERE IS TRUST, PERCEPTIONS

OF FAIRNESS, DEVELOPMENT OF INDIVIDUALS, INVOLVEMENT OF INDIVIDUALS EXISTS IN

WORK ENVIRONMENT

EMPLOYEE RELATIONS PLANNING PROCESS:

ALIGN EMPLOYEE RELATIONS TO BUSINESS STRATEGY

STUDY THE IMPLICATIONS OF EMPLOYEE RELATIONS ON BUSINESS STRATEGY, ESPECIALLY IN

THE FOLLOWING AREAS:

o EMPLOYEE INVOLVEMENT

o PSYCHOLOGICAL CONTRACT

o EMPLOYEE PARTICIPATION.

IDENTIFYING THE INDUSTRIAL RELATIONS IMPLICATIONS FOR WHICH FORMAL AGREEMENT FROM

UNION WILL BE SOUGHT.

ENGAGE THE EMPLOYEES IN IMPLEMENTATION OF THE STRATEGY

CONCLUSION:

HR HAS A KEY ROLE IN BRINGING STRATEGY TO LIFE

HR HAS TO ENSURE THAT PEOPLE STRATEGIES ARE ALIGNED TO BUSINESS STRATEGIES.

THE FOLLOWING HR PRACTICES ARE GOOD FOR BUSINESS:

o COMPETENCY ACQUISITION

o DEVELOPMENT

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o KNOWLEDGE MANAGEMENT

o MOTIVATION

o COMMITMENT

o JOB DESIGN

o INVOLVEMENT

o PARTICIPATION

o LEARNING AT ALL LEVELS

IN ORDER TO GREAT PLANNING ANALYZE THE FOLLOWING FOUR INTERDEPENDENT FACTORS:

1. PEOPLE

2. OPPORTUNITY

3. THE CONTEXT

4. RISK / REWARD

1 & 2 DEALS WITH STRATEGY, WHILE 3 & 4 DEALS WITH PLANNING

IT IS ESSENTIAL FOR HR PROFESSIONALS TO UNDERSTAND BUSINESS ISSUES, STRATEGIES &

METHODOLOGIES

IT IS NOT ONLY ESSENTIAL TO BE INVOLVED IN STRATEGY, BUT ALSO DO OPERATIONAL THINGS

EXCELLENTLY

THE END

THANK YOU FOR PATIENT LISTENING.

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