Hrm2605_study_notes(Complete)
Section 2 - Finding and Placing Qualified
Workers
Study Unit 4 - Strategic HR Planning and
Research
4.1 Types of HR Planning
The company can choose whether it wants to be proactive or reactive.
Organisations can make a decision regarding the breadth of t...
,Section 2 - Finding and Placing Qualified
Workers
Study Unit 4 - Strategic HR Planning and
Research
4.1 Types of HR Planning
The company can choose whether it wants to be proactive or reactive.
Organisations can make a decision regarding the breadth of the planning.
The formality of the plan. the company decision here can be the formal or informal route. Informal route - the planning
is done in the heads of managers and HR staff. In the formalised approach, the plan is clearly spelled out in writing and
backed up by supporting documentation and data.
o Craft has identified the following possible types of linkages:
Input linkages. Here HR information is made available either before or during the strategic planning
process. This can take place through a specialised HR unit doing scanning or through specialised
Committee of HR personnel.
Decision inclusion linkages. Here HR personnel are either directly or indirectly involved in the strategic
planning process of the company.
Review and reaction linkages. Here HR personnel can respond to a proposed or final strategic plan. The
plan may be reviewed from an HR flexibility (can the necessary manpower be obtained?) and
desirability (will there be a strike?) viewpoint or they may even have sign-off authority.
4.2 Planning Horizon
Short range Objectives = < 1 year & objectives are specific
Intermediate objectives = 2 – 4 years & Objectives are specific
Long range objectives = 5 - 15 years & objectives are General
4.3 Strategy-linked HRP
Strategic HR Planning The process through which company goals as put forth in mission statements and company plans
are translated into HR objectives to ensure that the company s neither over nor understaffed, that employees with the
appropriate talents, skills and desire are available to carry out their tasks in he right jobs at the right times.
4.4 Who is responsible for SHRP?
Main responsibility lies with HR Managers, should not be done in isolation but with line managers
o HR managers must be knowledgeable about company – enable them to analyse, collect data, develop plans &
programmes and ask questions that relate to the company mission and goals
o HR professional to demonstrate competence & expertise to line managers
o Developing linkages between HR planning & strategic company planning as process over time.
4.5 Why Is SHRP so Important
Strategic change refers to major transformations in the structure, size or functioning of an organisation for the purpose
of achieving strategic objectives.
4.6 Elements of SHRP
HR Objectives – objectives for change state what is to be achieved with regard to the firm's human resources.
Objectives may be stated in both quantitative and qualitative terms: when specifying objectives it is important to
also indicate who is responsible for making the needed changes.
HR Plans – can be thought of as blueprints for action. They specify who needs to do what, when, where & how
4.7 Steps In the SHRP Process
Step 1: Establishment of the mission and vision
4.8
Step 2: Environmental analysis
o Monitor and assess the company mission & core business
, o Conduct environment scanning to gather info about trend and anticipated developments in external &
internal environments
Step 2 : HR Demand analysis
o The determination of total manpower requirements of company
o Types, skills &location of employees must be determined
o Analyse past trends & productivity then linking company plans to productivity levels and projecting future
needs
Step 3 : HR Supply analysis
o Entails evaluation of future supply of labour (internal & external)
Step 4 : Strategy Development/Formulation
Step 5: Implementation of Strategy
Step 6 : Succession Planning – the process of identifying a longer-term plan for the orderly replacement of key
employees
1. Methods of forecasting HR Supply and Demand
Quantitative
Moving average – averages data about HR demand from recent periods and projects them into the
future
Exponential smoothing – forecasters can vary weights for HR demand assigned to different past time
periods used to project future HR demand
Trend projection – numbers of people hired or placed on one axis, time is placed on the other axis,
straight line is plotted from past to future to predict HR demand
Regression – mathematical formula used to relate staffing to several variables
Linear programming – assess required staffing levels that matches desired output level – subject to
certain constraints
Actuarial models – Relate turnover to such factors as age and seniority
Simulations – use scenarios to test the effect on various personnel policies
Probability matrixes – define “states” in the organisation – such as strategy levels, performance
ratings and identifies time periods
First-order Markov model – multiply number of people in each job category by the probability of
movement between jobs. The model assumes that the current job/position category is the chief
determinant of movement
Semi-Markov Model – Same as first order markov model accept for - probability of movement
determined by a) job / position category b) the individual’s length of stay in the job class
Qualitative
Delphi Technique – group of experts exchange several rounds of estimates of HR demands or supply,
without meeting face to face. Feedback from other experts is used by each individual to “fine tune”
their independent results.
Nominal Group Technique – a small group of experts meet face to face. Following a procedure that involves
open discussion and private assessment, the group reaches a judgment concerning f
4.9 Common pitfalls in SHRP
The Identity Crisis – HR planners must develop strong sense of mission (direction) or their existence might be
challenged
Top Management Support – it must have the full support of management, not always forthcoming.
Size of effort – programmes fail in beginning due to complex start, better to start with basic
Coordination with Other Functions – process must be coordinated with other management & HR functions
Integration with Company plan – HR plans must be derived company plan. isolation plans will not work
Non-involvement of operating Managers – coordinated efforts between Operating managers & HR staff if not done
designed / formulated plans will not be implemented by line managers
The technique trap – companies must decide on purpose of activity and obtain/use techniques most suited to
particular need
4.10 HR research
HR Research is the collection & investigation of facts related to HR problems in order to eliminate/reduce those problems
, Specific uses of HR Research:
Measurement & evaluation of present conditions
Prediction of condition, events & behavioural problems
Evaluation of current policies /programs/activities
Discovery of rational bases for revising current policies/ programs/activities
Appraisal of proposed policies/ programs/activities
Types of research:
Basic (pure research) – done to advance knowledge in particular field or to gather info on given subject e.g
universities, consultants, private – and non-profit institutions
Applied – is done to solve a particular problem, its results might be put to immediate use
The researchers:
Government – many government departments Labour & Human Science Research Counsel (HSRC)
Private organisations – Deloitte& KPMG
Universities –
Business Firms – on going research responsibilities of HR staff include:
o Evaluating T&D programmes
o Conducting periodic wage and salary surveys
o Predicting future HR staffing requirements
o Conducting surveys of employee attitudes
o Performing studies of employee productivity
o Validating selection & testing instructions
o Requests from other departments
Investigation of extreme high employee grievances in particular department
A programme to reduce absenteeism among clerical personnel
Evaluation of changes in a labour-management agreement that may affect productivity
Develop special performance appraisal method for sales personnel
HR Research publications – it's the most practical & expedient way for HR professionals to keep on top of the research is by
regularly a selected group of HR journals & magazines, or subscribing to electronic bulletin boards via the internet
4.11 Research techniques –
Important for 2 reasons:
1. The appropriate research technique must be applied to the issue at question as inappropriate techniques may
seriously affect the validity and usefulness
2. A broad knowledge of techniques is needed to read and understand the studies reported by other employers and
researchers
Surveys – employees survey most widely used technique e.g wage- & job satisfaction survey (aka attitude or morale
survey)
o Job satisfaction survey – linked with absenteeism & turn around studies.
Factors contributing to good job satisfaction:
The job itself – the kind of work performed & freedom to determine how work is done
Co-worker relations – the extend of acceptance , friendliness and support by fellow
workers
Good supervision – the perceived attributes of a good supervisor
Opportunity to grow – the chance to develop new skills and climbing the corporate ladder
Factors contributing to negative job satisfaction
Poor supervision – insensitive , incompetent & uncaring supervisors
Interpersonal conflicts – interpersonal conflicts, lack of teamwork unfriendliness
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