STRATEGIC HR PLANNING

Prepared by:
Maria Lourdes J. Javier, MIR
Topics for Discussion

✓Strategic Human Resources Planning Defined

✓SHRP Process
✓Workflow Analysis and Strategic Job Analysis
Strategic Human Resource Planning

MP HRP
• deals with assessing the demand • long-term approach to meeting
and supply of people skill requirements
• traditional • different from MP because it
• short-term approach, done for a emphasizes the arrangement of
particular purpose to fill vacancies staff in light of the organization’s
long-term requirements
• ensures that it has the right
people, who are capable of
completing tasks that help the
organization reach its objectives
Strategic Human Resource Planning

HRP SHRP
• The goal is to get the right • Links people management to the
number of people with the right organization’s strategic plan
skills, experience, and • It deals with the linkage
competencies in the right jobs at between strategic business
the right time and at the right planning and HRP
cost to meet long-term needs
Key Features of HRP

• Monitoring and evaluating outcomes and feeding back results are

viewed as integral parts of the process (bin Idris and Eldridge, 1998;
Beardwell, 2004).
• The process should be driven by the strategic objectives of the
organization and its purpose is to help achieve their fulfilment
(Parker and Caine, 1996; bin Idris and Eldridge, 1998; Bratton and
Gold, 2003)
Key Elements of HRP

1.Strategic Planning Involves environmental scanning to identify key business

issues and formulate strategies to achieve organizational goals.
2.Demand Forecasting Focuses on determining how human resources align with
business strategies and predicting future HR needs to meet those objectives.
3.Auditing Current HR Capability Analyzes the existing labor resources, examines
internal labor supply, and assesses how labor is utilized within the organization.
4.Supply Forecasting Involves predicting the availability of internal and external
labor supply to ensure the organization has the workforce needed to meet its
strategic goals.
Key Elements of HRP

5. Gap Analysis This involves comparing the demand for labor (needs)
against the supply (availability). It helps to identify any gaps.
6. Planning This step includes developing HR goals to address any identified
labor shortages or surpluses and creating action plans to achieve those
goals.
7. Implementation and Evaluation This involves executing the action plans,
monitoring outcomes, and making adjustments based on feedback.
Distinguishing Characteristics of
Hard and Soft HRP
Major Difference:
Hard HRP prioritizes the
organization's needs, while
Soft HRP balances organizational
success with employee
development and well-being.
Distinguishing Characteristics of
Hard and Soft HRP

Major Difference:
Hard HRP prioritizes operational
efficiency and cost, while Soft HRP
focuses on fostering a supportive
environment that enhances
employee and organizational
growth.
Strategic Human Resource Planning
• SHRP should aim to capture ‘the people element’ of what an organization is
hoping to achieve in the long term, ensuring that it has the right people with
the right mix of skills and behavior
• Applying a talent management perspective to workforce planning requires
being proactive
• it requires paying continuous attention to workforce planning issues:
✓ Managers call this newer, continuous workforce planning approach
predictive workforce monitoring
Predictive Workforce Monitoring
• Involves using data and analytics to forecast workforce needs, trends,
and potential risks.
• It helps organizations prepare for future challenges by analyzing
patterns in employee performance, turnover, and staffing
requirements.
SHRP Process
The SHRP Process

• This process focuses on aligning the HR plan to support the

accomplishment of the company’s mission, vision, goals, and
strategies
• People are the primary source of competitive advantage
• Successful companies integrate and align HRP to the organization’s
strategic plan
The SHRP Process
In order to link HRP to overall business planning or strategic planning,
the following steps need to be followed:
1. Aligning HR Vision with Company Vision
2. Environmental Scanning
3. Developing Forecast through Workforce Analysis
4. Formulate HR Plans
5. Vertical and Horizontal Integration
6. Monitoring, Evaluating, and Reporting
The SHRP Process

1. Aligning HR Vision with Company Vision

Alignment of the HR vision with the organization’s vision is the starting

point of all HRP
The SHRP Process
1. Aligning HR Vision with Company Vision
• As the pace and magnitude of change in the environment increases,
the approach to SHRP changes substantially
✓First, the planning process is more agile; changes in plans are
much more frequent and are often driven by external changes
rather than made on a predetermined time schedule
✓Second, the planning process is more proactive.
✓Third, the planning process is no longer exclusively top-down;
input into the process comes from different organizational levels
The SHRP Process
2. Environmental Scanning
• A key component of HRP is understanding the workforce needs and planning for
projected shortages and surpluses in specific occupations and skill sets
• A good HRP process requires internal and external environmental scanning.
Internal Scan
This requires identifying factors internal to the organization that may affect HR’s
capacity to meet organizational goals
External Scan
To do HRP, one needs to have a sense of the current external environment and
anticipate things that may happen in the future in the labor marketplace
 The SHRP Process
Aligning HR Vision with Company Vision
Environmental Scanning Vertical and Horizontal Integration
Formulate HR Plans
Developing Forecast through Workforce Analysis Monitoring, Evaluating, and Reporting
 The SHRP Process
Aligning HR Vision with Company Vision
Environmental Scanning
Developing Forecast through Workforce Analysis Vertical and Horizontal Integration
Monitoring, Evaluating, and Reporting
Formulate HR Plans

The processual approach to strategy and strategy-making

reverses the basic premise that organizations are viewed as
creations arising from the social interactions of their
stakeholders.
Benefits of HRP
The SHRP Process

3. Developing Forecast Through Workforce Analysis

• Workforce analysis involves identifying current and anticipated future
supply of labour and skills (supply analysis), identifying what one will
need in the future in terms of skills and competencies (demand
analysis), and then identifying the gaps between the supply and
demand (gap analysis).
The SHRP Process
3. Developing Forecast Through Workforce Analysis
Demand Analysis
• It depends on the primary demand for a firm’s goods and services
• An organization’s staffing needs depend on external environmental
and market conditions as well as its corporate strategy
• Forecasting workforce demand starts with estimating the demand for
one’s final products or services
• The planning process may also involve developing contingency
staffing plans to address the potential changes in demand
The SHRP Process
3. Developing Forecast Through Workforce Analysis
Supply Analysis
• Supply of candidates may be both from internal or external sources. It
is reasonable to start analyzing the supply of internal candidates first
• Organizations maintain databases to track organizational capabilities
inventory and to determine employees’ knowledge, skills, and
abilities (KSAs)
• Internal Supply Assessment is determining whether current
employees are qualified and suitable for the projected openings
The SHRP Process
3. Developing Forecast Through Workforce Analysis
Supply Analysis
• The critical information needed to tap internal sources of capabilities
are:
• Employee demographics
• Training imparted to employees
• Employee career progression
• Individual job performance data
• Workforce trends—such as eligibility for retirement and separation rate
The SHRP Process
3. Developing Forecast Through Workforce Analysis
Supply Analysis
• External Supply Assessment will depend on many things such as:
• Net migration for an area
• Individuals entering and leaving the workforce, schools, and colleges
• Changing workforce composition and patterns
• Economic forecasts
• Technological developments and shifts
• Government regulations and pressures
The SHRP Process

3. Developing Forecast Through Workforce Analysis

Gap Analysis
• Gap analysis requires comparing supply with demand analysis to
determine future shortages and excess in the number of employees
needed, types of occupations, and competencies
• It necessitates developing an action plan to match the projected
supply and demand
The SHRP Process
4. Formulate HR Plans
• The HR plan should identify the number and types of positions to be
filled, ratio of internal and external sources to be tapped for these
positions, time involved in filling the positions, training required in
placing the people, and promotion programs to be effected
• This will also entail working out the resources in terms of advertising
costs, recruiter fees, travel and interview expenses, promotion
budget, relocation costs, and so on
The SHRP Process
5. Vertical and Horizontal Integration
• The function is meant to support and enable the company to attain
its business goals and, hence, it needs to be linked to and driven by
those business or strategic goals (Vertical Integration)
• It is important to remember that the whole process of HRP is to serve
the stakeholders and ‘customers’ of the HR department
• Planning process must actively involve all stakeholders—functional
area heads, managers, executives, and line employees
The SHRP Process

5. Vertical and Horizontal Integration

• The planning process must be concomitant with plans of other

functional areas, such as marketing, operations, or finance
(Horizontal Integration)
• HR plans must be vertically and horizontally integrated
The SHRP Process

6. Monitoring, Evaluating, and Reporting

• Monitoring, evaluating, and reporting the results of HRP helps to

attain all-round integration and competitive advantage
• It involves assessing and sustaining organizational competence and
performance
• The outcomes of the implementation of an HR plan should be
measurable
Workflow Analysis and
Strategic Job Analysis
Workflow Analysis and Strategic Job Analysis
Human Resource Management (HRM) Flow:
1. Workforce and Job Analysis Determining what tasks and activities
need to be done and by whom
2. Human Resource Planning Forecasting and planning manpower
requirements
3. Recruitment Attracting applicants who match a certain job criteria
4. Selection Shortlisting candidates who are the nearest match in
terms qualifications, expertise, and potential for a certain job
Workflow Analysis and Strategic Job Analysis
Human Resource Management (HRM) Flow:
5. Placement Deciding upon the final candidate who gets the job and
giving them placement offers
6. Training and Development Designing programs for skills and
abilities upgradation
7. Performance Management Evaluating employee performance to
train, motivate, and reward workers
Workflow Analysis and Strategic Job Analysis
Human Resource Management (HRM) Flow:
8. Compensation and Reward Determining salaries and wages for
employees and dispensing with rewards
9. Industrial Relations Maintaining healthy relations with employees
and resolving disputes
10. Employee Termination Developing awareness of legal provisions
and ensuring rightful termination of employment
Workflow Analysis and Strategic Job Analysis

• Talent management can be defined as an integrated process of

planning, acquiring, developing, managing, and rewarding employees
• Talent management can be seen in terms of a set of integrated HR
processes designed to attract, develop, motivate, and retain
productive employees
• The goal of talent management is to create a high-performance,
sustainable organization.
Workflow Analysis and Strategic Job Analysis

• Having a talent management perspective requires that the various HR

activities (such as recruiting, selecting, training, appraisal, and
compensation) are parts of a single interrelated process
Example:
Having employees with the right skills at the right place starts from
planning right to recruiting the right way to selecting the right
applicants, and subsequently giving the right kind of training, and so
on
Workflow Analysis

• Workflow analysis is a study of the way work (inputs, activities, and

outputs) moves through an organization
• It is a detailed study of the flow of work from job to job in a work
process
• Workflow analysis involves defining work and then dividing it into
jobs:
✓Work : Effort directed towards producing or accomplishing results
✓Job : A grouping of tasks, duties, and responsibilities that
constitutes the total work of an employee
Workflow Analysis
• Workflow design refers to the flow of activities and tasks that need
to be carried out in an organization to realize its goals and objectives
• Workflow analysis is the process of identifying and determining the
tasks necessary for the production of a good or service, prior to
allocating and assigning these tasks to a particular job category or
person
• Workflow analysis is extremely useful because it provides
information to managers to understand all the tasks required to carry
out a process as well as the skills necessary to perform those tasks.
Workflow Analysis
Workflow Analysis

Steps in Workflow Analysis

1. Understanding Business Goals and Strategies

Workflow analysis will usually begin with the process of understanding

the goals and strategies of the company. This provides a good starting
point to work from. The goals lend a direction to what needs to be
done and strategies provide an answer to how it is to be done.
Workflow Analysis

Steps in Workflow Analysis

2. Identify Inputs, Process, and Outputs
It is important to clearly identify and delineate how the business
activity combines human, physical, and financial resources to
create goods and services. This will help explain the role of the
input–process–output cycle in overall business activity.
Workflow Analysis
Steps in Workflow Analysis
3. Identify Unit-Wise Tasks
The analyst needs to understand the requirements in terms of
how every department or unit will contribute to the input–
process–output cycle in the light of the goals. This gives them an
even clearer look at how business is run day-to-day. Everything
from human resources and manufacturing to finance and
marketing is looked at closely, right down to how every task is
processed
Workflow Analysis

Steps in Workflow Analysis

4. Documenting Time, Resources, and Effort Needed
The next step will involve listing and documenting how much
time and effort is needed for each task, as well as how much it
will cost a business to accomplish these tasks. The workflow
business analyst will be able to see which activities are needed
and which ones are actually doing more harm than good or have
become obsolete and could be improved
Workflow Analysis

Steps in Workflow Analysis

5. Prepare a Final Workflow
After spending the necessary time getting to know the tasks of
the company from the lowest level to the highest level within an
organization, a workflow analyst will finally be able to put
together a comprehensive plan that will recommend the best
steps the company should take to attain its results most
efficiently and productively
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

1. Narrow Functional Roles to Generalist Orientation
Strategic job analysis mandates that the focus should shift from a
narrow, technical, and specialist mindset to a broader, more
generalist orientation for job holders
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

2. Specialization to Multi-Skilling
The traditional concept of division of labor involves specialization
in individual tasks so that the workers become highly proficient
in their area. The focus has now shifted to multi-skilling, which is
a labor utilization strategy where workers possess a range of
skills appropriate for more than one work process and are used
flexibly on several tasks and projects.
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

3. Job Descriptions to Job Fluidity
Jobs are becoming more and more dynamic in keeping with the
requirements of the changing external environment. Traditional
way of defining jobs through static job descriptions is gradually
paving way for dynamic and ‘fluid’ job demands and
responsibilities. People no longer take cues from a job description.
Signals come from the changing demands of the environment
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

4. Jobs to Profiles
Jobs are statically defined duties, whereas job profiles list
multiple competencies, traits, knowledge, and experience that
employees must be able to exhibit in a multi-skilled world. The
present competitive world demands shift in focus from doing
jobs to developing profiles.
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

5. Tasks to Roles
The above changes have necessitated that organizations and
employees lay more emphasis on performing certain roles rather
than carrying out activities and tasks. Individuals are required not
just to complete tasks but adopt different roles at different
times.
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

6. Skills to Attitudes
Another important change taking place in organizations is that
employee attitudes are becoming more important than employee
skills. An attitude is generally defined as the way a person responds
to his or her environment. Having the right attitude and
predisposition in a continuously changing environment sometimes
takes precedence over having a certain skill.
Strategic Job Analysis
Strategic Job Analysis Has Brought About A Shift In Focus From:
7. Intelligence Quotient to Emotional Quotient
Intelligence quotient (IQ) is a measure of one’s ability to think and
reason. Emotional quotient (EQ) or emotional intelligence (EI), on the
other hand, is the ability of individuals to recognize and understand
emotions and to use emotional information to guide thinking,
behavior, and decision-making. Research has shown that EQ is more
directly linked to productivity and performance than IQ in the present
organizational settings
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

8. Technical Skills to Conceptual and Human Skills
Henry Mintzberg theorized that managers are required to
possess certain skills and competencies that allow them to play
their roles effectively and efficiently. He talked about three
important skills, namely technical, conceptual, and human skills,
necessary for managers.
Strategic Job Analysis
Strategic Job Analysis Has Brought About A Shift In Focus From:
8. Technical Skills to Conceptual and Human Skills
Technical Skills refer to the ability to utilize tools, techniques, and
procedures that are specific to a particular field
Human Skills enable them to understand and get along with other people
while getting the most out of them
Conceptual Skills enable managers to think of the abstract, examine
different situations, and see beyond the present in order to recognize new
opportunities and threats
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

9. Duties to Personal Contributions
It is an accepted fact that the growth of every organization
depends on the dedication, hard work, creativity, and ability of
each and every employee. In a fast-paced economy, making
personal contributions is valued more than carrying out duties
and tasks
Strategic Job Analysis

Strategic Job Analysis Has Brought About A Shift In Focus From:

10. Present Incumbency to Future Opportunities
Organizations are focusing more on future employability of their
employees in various assignments within the organization rather
than just having the skill to perform present jobs. The
importance given to concepts such as multi-skilling, multi-
tasking, and job rotation reiterates the fact that future growth
and employability of employees is paramount
Strategic Job Analysis
Strategic Job Analysis and Dejobbing

• With dejobbing, workers are paid not for their ability to work for fixed
hours but rather for their performance.
• Employees are given the flexibility and freedom to innovate and
experiment.
• Dejobbed organizations prepare their employees not for today’s jobs
but for tomorrow’s roles.
Strategic Job Analysis and Dejobbing

• The level of dejobbing varies with the stage of growth of an

organization
• In start-up companies, ‘job-hazyness’ is a common phenomenon.
• Since start-ups are in their formative stages, jobs per se have not
crystallized as yet
• People just do whatever needs doing. These organizations symbolize a
natural form of dejobbing
Strategic Job Analysis and Dejobbing

• When start-ups grow and expand, jobs begin to firm up. This gives
rise to concrete job descriptions
• As organizations further grow and competition intensifies, managers
may realize the need for handling unplanned work demands and
challenges
Competency Profiling and Strategic Job Modelling

Competency Profiling
• The concept of strategic job analysis, thus, necessitates that job
descriptions should become flexible and futuristic
• Consequently, the focus has shifted from defining tasks and duties to
creating competency profiles
Example of Competency Mapping (HR Manager)
Competencies at different levels are:
Foundational Level Payroll preparation, database maintenance, dispensing
with rewards, preparing paychecks, and so on
Intermediate Level Records and information management, structuring
benefits, packages, supervising level 1, and so on
Advanced Level Laying down compensation policy, environment scanning
for industry benchmarking, drawing guidelines for compensation,
supervising level 2, and so on
Strategic Job Modelling

• SJM aims at understanding the ultimate objective of the organization

and then drawing it into work requirements
• Jeffery S. Schippman calls job modelling an upgraded approach to
job analysis (author, Strategic Job Modeling: Working at the Core of
Integrated Human Resources)
• Traditional job analysis procedures are too short-sighted to meet the
strategic and future-oriented needs of today’s organizations
Strategic Job Modelling

• SJM is about a ‘next-generation’ job analysis method that involves

translating business strategies into work performance and
competency requirements
• The purpose of SJM is to develop a trajectory of work competencies
that are expected from an incumbent in a particular ‘job’
• This differs from a traditional job analysis approach that details only
the present duties
Strategic Job Modelling

• SJM takes into account two set of competencies:

✓Can-do competencies: present skills
✓Will-do competencies: future skills