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HRM2601 Exam Chapter Revision
Notes

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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 by 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.

Definitions:

Human resource Planning – process of anticipating and providing for the movement of people into, within and out of an
organization with the aim of finding the best fit between employees and jobs.

Strategic HR planning – the process by which organizational goals, as put forth in mission statements and organizational
plans, are translated into HR objectives to ensure that the organization is neither over-not under staffed, and that
employees with the appropriate talents, skills and desire are available to carry out their tasks/duties in the right jobs at the
right times.


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 the 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.
• HR responsibilities:
o HR Unit
▪ Participates in strategic planning process
▪ Identifies HR strategies
▪ Design the HR planning data systems
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▪ Compiles and analyses data from managers on staffing needs
▪ Implements the HR plan as approved by top management
o Line Managers:
▪ Identify supply and demand needs for each division/department
▪ Review/discuss HR planning information with HR specialists
▪ Integrate the HR plan with departmental plans
▪ Monitor the HR plan to identify changes needed
▪ Review employee succession plans associated with the HR plan.
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 and values
4.8
• Step 2: external 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 3: Conduct an internal analysis:
o Organization, determine what needs to change and improve and what it is doing well and thus should keep
on doing.

• Step 4 : Forecasting demand
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 5 : Forecasting Supply
o Entails evaluation of future supply of labour (internal & external)
• Step 6 : Strategy Development/Formulation
• Step 7 : 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


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• 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 except 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 future
HR demand and supply.
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 rather than complex
system.
• Coordination with Other Functions – process must be coordinated with other management & HR functions
• Integration with Company plan – HR plans must be derived company plans. 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 and Metrics

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 specialDownloaded
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