Variante REINER VOLLER TEXT Strategic HR Theory_NOT_LAYOUTED.docx

Inhaltsverzeichnis {#inhaltsverzeichnis.Inhaltsverzeichnisberschrift} ================== [**Chapter 1: Introduction to Strategic Human Resource Management** 1](#chapter-1-introduction-to-strategic-human-resource-management) [Defining Human Resource Management 1](#defining-human-resource-management) [Definition of HR 1](#definition-of-hr) [HR's Role 1](#hrs-role) [HR Functions 2](#hr-functions) [\*\*The HR Department 4](#the-hr-department) [Evolution of HR Management 7](#evolution-of-hr-management) [Classic Foundational Theories 7](#classic-foundational-theories) [\*\* Trends shaping HR 10](#trends-shaping-hr) [Role and Importance of Strategic HR in Organizations 12](#role-and-importance-of-strategic-hr-in-organizations) [Strategic HR Defined 12](#strategic-hr-defined) [Benefits of Strategic HR 13](#benefits-of-strategic-hr) [An Overview of Common HR Digitalization Strategies 14](#an-overview-of-common-hr-digitalization-strategies) [Agility vs Stability 15](#agility-vs-stability) [Balancing Stability and Agility in Times of Digitization 15](#balancing-stability-and-agility-in-times-of-digitization) [Stability VS Agility 16](#stability-vs-agility) [More on Agility 19](#more-on-agility) [**Chapter 2: Strategic HR Planning** 21](#chapter-2-strategic-hr-planning) [Strategic Alignment of HR with Organizational Goals 21](#strategic-alignment-of-hr-with-organizational-goals) [HR's role in Business Strategy Planning 21](#hrs-role-in-business-strategy-planning) [The Strategy Planning Process 21](#the-strategy-planning-process) [Aligning HR to organizational strategy 22](#aligning-hr-to-organizational-strategy) [HR Steps to achieve Strategic Alignment 23](#hr-steps-to-achieve-strategic-alignment) [Forecasting HR Needs 25](#forecasting-hr-needs) [Forecasting HR needs with workforce analysis. 25](#forecasting-hr-needs-with-workforce-analysis.) [Forecasting methods 26](#forecasting-methods) [Workforce Planning 28](#workforce-planning) [The Role of Workforce Planning (WFP) 28](#the-role-of-workforce-planning-wfp) [Workforce Planning Process 29](#workforce-planning-process) [Skills Gap Analysis 30](#skills-gap-analysis) [Evaluating Supply and Demand 32](#evaluating-supply-and-demand) [Job Analysis and Description 35](#job-analysis-and-description) [Job Analysis 35](#job-analysis) [Job Descriptions: 37](#job-descriptions) [Job Design 39](#job-design) [What is Job Design? 39](#what-is-job-design) [Succession Planning and Talent Management 41](#succession-planning-and-talent-management) [Talent Management 41](#talent-management) [Succession Planning 43](#succession-planning) [Talent Management Vs Succession Planning 44](#talent-management-vs-succession-planning) [The Role of Technology in Strategic HR Planning 45](#the-role-of-technology-in-strategic-hr-planning) [**Chapter 3: Talent Acquisition and Recruiting** 48](#chapter-3-talent-acquisition-and-recruiting) [Recruiting Strategies and Channels 48](#recruiting-strategies-and-channels) [Strategic Recruiting 48](#strategic-recruiting) [Recruiting Strategies 49](#recruiting-strategies) [Recruitment Channels 50](#recruitment-channels) [Candidate Sourcing 52](#candidate-sourcing) [Strategic Candidate Sourcing 52](#strategic-candidate-sourcing) [Talent Identification 54](#talent-identification) [Talent Identification 54](#talent-identification-1) [Internal mobility 55](#internal-mobility) [How to master the internal talent identification process: 55](#how-to-master-the-internal-talent-identification-process) [Selection Techniques and Interview Approaches 57](#selection-techniques-and-interview-approaches) [Selection Techniques 57](#selection-techniques) [The Interview 58](#the-interview) [Effective interview practices 58](#effective-interview-practices) [Key Considerations 59](#key-considerations) [Reducing the Selection Bias Risk 61](#reducing-the-selection-bias-risk) [Different types of hiring bias 61](#different-types-of-hiring-bias) [How to avoid selection bias 62](#how-to-avoid-selection-bias) [Employer Branding 63](#employer-branding) [What is an employment brand? 63](#what-is-an-employment-brand) [Brand Building Strategies 63](#brand-building-strategies) [Brand Building Steps 64](#brand-building-steps) [The Role of Technology in Talent Acquisition and Recruiting 66](#the-role-of-technology-in-talent-acquisition-and-recruiting) [HR Technologies for Recruiting Talent 66](#hr-technologies-for-recruiting-talent) [Recruiting technology best practices 67](#recruiting-technology-best-practices) [Recruiting Software 67](#recruiting-software) [Internal talent marketplace 68](#internal-talent-marketplace) [**Chapter 4: Employee Onboarding and Orientation** 69](#chapter-4-employee-onboarding-and-orientation) [Introduction 69](#introduction) [Onboarding Objectives 70](#onboarding-objectives) [Onboarding vs. Orientation 71](#onboarding-vs.-orientation) [Understanding The Critical Role of Managers in Onboarding 72](#understanding-the-critical-role-of-managers-in-onboarding) [Between the Job Confirmation and the First Day of Work 73](#between-the-job-confirmation-and-the-first-day-of-work) [Overview of the Onboarding Process 77](#overview-of-the-onboarding-process) [Key Takeaways 77](#key-takeaways) [References 79](#references) [**Chapter 5: Remuneration: Compensation and Benefits** 0](#_Toc175679292) [Introduction 0](#_Toc175679293) [Types of Compensation 2](#types-of-compensation) [Differences Between Merit Pay and Incentive Pay 2](#differences-between-merit-pay-and-incentive-pay) [Income Tax & Salary Components 3](#income-tax-salary-components) [Regulatory Framework & Collective Agreements 3](#regulatory-framework-collective-agreements) [MANDATORY BENEFITS 5](#mandatory-benefits) [VOLUNTARY BENEFITS 6](#voluntary-benefits) [Cafeteria Benefit System 9](#cafeteria-benefit-system) [Key Takeaways 10](#key-takeaways-1) [**References** 11](#references-1) [**Chapter 6: Performance Management** 12](#chapter-6-performance-management) [Performance Management Systems 12](#performance-management-systems) [Setting Performance Expectations 14](#setting-performance-expectations) [Developing Objectives 15](#developing-objectives) [Performance Appraisal Methods 17](#performance-appraisal-methods) [Appraisal Methods 17](#appraisal-methods) [Errors and Bias 20](#errors-and-bias) [Appraisal Objectives 20](#appraisal-objectives) [Assessing Performance 21](#assessing-performance) [New Approaches to Appraisal 23](#new-approaches-to-appraisal) [Data collection and Legal Considerations 23](#data-collection-and-legal-considerations) [Providing Feedback and Coaching 25](#providing-feedback-and-coaching) [Feedback 25](#feedback) [Performance Improvement Plans 26](#performance-improvement-plans) [Annual Review Vs Real Time Feedback 27](#annual-review-vs-real-time-feedback) [Agile Performance Management 28](#agile-performance-management) [Remote workers 29](#remote-workers) [Qualitative Feedback Methods 29](#qualitative-feedback-methods) [Coaching 30](#coaching) [The Role of Technology in Performance Management 31](#the-role-of-technology-in-performance-management) [Performance Management Software 31](#performance-management-software) [**Chapter 7: Learning and Development** 34](#chapter-7-learning-and-development) [Concepts of Learning and Knowledge 34](#concepts-of-learning-and-knowledge) (#section-27) [Key Concepts 34](#key-concepts) [Creating a Learning Culture 35](#creating-a-learning-culture) [Employee Training Methods 36](#employee-training-methods) [Training Methods 36](#training-methods) [Training Needs Analysis 39](#training-needs-analysis) [Needs Assessment 39](#needs-assessment) [Design and Delivery of Training Programs 41](#design-and-delivery-of-training-programs) [The Addie model of instructional design 42](#the-addie-model-of-instructional-design) [Evaluating Training Effectiveness 44](#evaluating-training-effectiveness) [Simple Survey 44](#simple-survey) [Kirkpatrick Model 45](#kirkpatrick-model) [Strategic Metrics 46](#strategic-metrics) [Employee Development 47](#employee-development) [Development Defined 47](#development-defined) [Assessing Development Needs 48](#assessing-development-needs) [Career Management 50](#career-management) [Promotions and Internal Movement 51](#promotions-and-internal-movement) [The Role of Technology in Learning and Development 53](#the-role-of-technology-in-learning-and-development) [Learning Technologies 53](#learning-technologies) [The Potential of AI 53](#the-potential-of-ai) [Virtual Reality - the future of training 55](#virtual-reality---the-future-of-training) [**Chapter 8: HR Legal Compliance** 56](#chapter-8-hr-legal-compliance) [Employment Law 56](#employment-law) [Main Areas of Employment Law 58](#main-areas-of-employment-law) [**Employment Contracts: Why They Matter** 60](#_Toc175679351) [Key HR Steps for Legal Compliance 61](#key-hr-steps-for-legal-compliance) [**Stay Informed and Educated** 61](#_Toc175679353) [**Develop and Maintain Comprehensive Policies** 62](#_Toc175679354) [**Implement Effective Hiring Practices** 62](#_Toc175679355) [**Ensure Fair Compensation and Benefits** 62](#_Toc175679356) [**Provide Ongoing Training and Education** 62](#_Toc175679357) [**Monitor Workplace Safety and Health** 62](#_Toc175679358) [**Manage Leave and Accommodation Requests** 62](#_Toc175679359) [**Implement Fair Disciplinary and Termination Procedures** 63](#_Toc175679360) [**Protect Employee Privacy and Data** 63](#_Toc175679361) [**Conduct Regular Audits and Reviews** 63](#_Toc175679362) [**Foster Open Communication** 63](#_Toc175679363) [**Prepare for and Manage Crises** 63](#_Toc175679364) [Key Takeaways 64](#key-takeaways-2) [References 66](#references-2) [Supreme Court of Canada. (1997). Wallace v. United Grain Growers Ltd., 3 S.C.R. 701. 66](#supreme-court-of-canada.-1997.-wallace-v.-united-grain-growers-ltd.-3-s.c.r.-701.) [Chapter 9: Diversity and Inclusion in the Workplace 67](#chapter-9-diversity-and-inclusion-in-the-workplace) [Importance of Diversity and Inclusion 67](#importance-of-diversity-and-inclusion) [DEI laws in EU 68](#dei-laws-in-eu) [Alternative (a more concise summary) 70](#alternative-a-more-concise-summary) [Creating a Diverse and Inclusive Culture 71](#creating-a-diverse-and-inclusive-culture) [Diversity Training and Initiatives 76](#diversity-training-and-initiatives) [Diversity Training 76](#diversity-training) [Diversity Initiatives 78](#diversity-initiatives) [The Role of Technology in Workplace Diversity and Inclusion 82](#the-role-of-technology-in-workplace-diversity-and-inclusion) [Understanding Employee Engagement 84](#understanding-employee-engagement) [What is Engagement? 84](#what-is-engagement) [Measuring Engagement 86](#measuring-engagement) [Conducting An Engagement Survey 87](#conducting-an-engagement-survey) [Strategies for Engagement 88](#strategies-for-engagement) [Strategies for Motivating Employees 92](#strategies-for-motivating-employees) [Motivation Theories 92](#motivation-theories) [Motivation Strategies 96](#motivation-strategies) [Building a Positive Work Culture 99](#building-a-positive-work-culture) [Positive Energy 99](#positive-energy) [Employee Retention 103](#employee-retention) [Strategic Retention 104](#strategic-retention) [\*Flexibility and the Future of work 107](#flexibility-and-the-future-of-work) [The Role of Technology in Employee Engagement and Motivation 109](#the-role-of-technology-in-employee-engagement-and-motivation) [Chapter 11: Employee Relations and Conflict Resolution 112](#chapter-11-employee-relations-and-conflict-resolution) [Employee Relations Policies 112](#employee-relations-policies) [People Policies 114](#people-policies) [Handling Grievances and Disputes 118](#handling-grievances-and-disputes) [Defining Grievances and Disputes 118](#defining-grievances-and-disputes) [Mediation and Conflict Resolution Techniques 122](#mediation-and-conflict-resolution-techniques) [Conflict Resolution 122](#conflict-resolution) [Mediation 123](#mediation) [Managing Workplace Conflict 123](#managing-workplace-conflict) [The Role of Technology in Employee Relations and Conflict Resolution 126](#the-role-of-technology-in-employee-relations-and-conflict-resolution) [**Chapter 12: Employee Termination** 128](#chapter-12-employee-termination) [Introduction 128](#introduction-2) [The Perils of Downsizing 128](#the-perils-of-downsizing) [Rightsizing vs. Downsizing: Understanding the Nuances 129](#rightsizing-vs.-downsizing-understanding-the-nuances) [So, What's the Impact of Employee Termination? 131](#so-whats-the-impact-of-employee-termination) [Exploring the Different Types of Employee Termination 131](#exploring-the-different-types-of-employee-termination) [Voluntary Termination 132](#voluntary-termination) [Involuntary Termination 133](#involuntary-termination) [Mutual Termination 134](#mutual-termination) [Legal Protection & Compliance 135](#legal-protection-compliance) [Preventing Retaliatory Misconduct 136](#preventing-retaliatory-misconduct) [7 Steps in the Employee Termination Process 136](#steps-in-the-employee-termination-process) [Outplacement 138](#outplacement) [Redeployment & Internal Transfers 139](#redeployment-internal-transfers) [**Severance in Austria** 140](#_Toc175679415) [Key Takeaways 140](#key-takeaways-3) [References 142](#references-3) [Chapter 13: Global HR Management 143](#chapter-13-global-hr-management) [Challenges of Managing a Global Workforce 143](#challenges-of-managing-a-global-workforce) [Cross-Cultural Communication 145](#cross-cultural-communication) [HR Strategies for International Expansion 148](#hr-strategies-for-international-expansion) [HR's Role in Global Expansion Strategy 148](#hrs-role-in-global-expansion-strategy) [Strategic Options 149](#strategic-options) [**Appendix 1** 153](#appendix-1) [Current Sources (if not listed directly in chapter) 153](#current-sources) **Chapter 1: Introduction to Strategic Human Resource Management** ================================================================== Defining Human Resource Management ---------------------------------- Human Resources (HR) is the department of an organization focused on managing the people that work for it, to achieve the organization\'s mission, vision and goals. - HR supports strategy with planning that helps the organization meet long- term strategic objectives. - HR professionals ensure that the organization has the employees it needs to succeed, and that those employees have a positive work environment. - HR creates value by engaging in activities that cultivate the employee behaviors an organization needs to achieve its strategic goals.. ### Definition of HR The Big Book of HR defines human resources as "the function that is actively involved in setting strategy around the people who do the work that moves organizations toward the achievement of their missions, visions, and goals." - HR professionals and executives are advisors to leadership who develop strategic workforce plans aligned with the organization's overall strategic plan - Strategic HR planning ensures that the right people are on board so that the firm can meet its objectives. ### HR's Role Employees are the most valuable (and expensive) resource that any organization has, and they are behind every success that an organization achieves. The role of HR is to manage all the people-related aspects of the workplace, in particular: - HR ensures that an organization has the talent---the right combination of skills, knowledge, aptitude and attitude---to achieve its strategic goals. - HR practices aim to increase engagement and retain employees by providing a positive, safe and pleasant environment. - HR ensures that employees have access to opportunities for development and that people have all the training and necessary resources to do their jobs effectively. - HR advises management on compensation, benefits and rewards to attract and retain talent and to minimize costly employee turnover. ### HR Functions **The Key Functional Areas of HR** - **Talent Management:** HR must protect the financial interests of the organization while ensuring that employees have the resources they need to stay engaged and productive in a work environment that attracts and retains qualified people. - **Recruitment and Training**: HR is responsible for finding, recruiting, screening, and training job applicants. - **Compensation**: HR also handles compensation, incentives and and administers employee benefit programs.Incentives and rewards - **Administration** - **Compliance**: HR ensures compliance with federal, state, and governmental laws and regulations and HR departments implement company policies and procedures. - **Safe Work Environment**: HR professionals attend to employee concerns about labor relations, health and safety, and fairness. ### **HR activities in these functional areas include:** +-----------------+-----------------+-----------------+-----------------+ | **Staffing** | **Training & | **Compensation* | **Administratio | | | Development** | * | n** | +-----------------+-----------------+-----------------+-----------------+ | Workforce | Employee | Motivation | Safety and | | planning | training | | health | | | | Wages and | | | Strategy | Onboarding | salary | Employee | | Aligning | | | relations | | | Management | Job evaluation | | | Job analysis | development | | Labor relations | | | | Pay and | | | Recruitment | Career | benefits | Grievance | | | development | | | | Selection | | Discipline | Risk management | | | Performance | | | | Placement | evaluation | Resource | Social security | | | | allocation | | | Transfer | Succession | | Welfare | | | planning | Payroll | | | Promotion | | | Record keeping | | | | Bonus | | | | | | Personnel audit | | | | Incentives | | +-----------------+-----------------+-----------------+-----------------+ SOURCE : Lumen [[12 Key HR functions AIHR]](https://trello.com/c/6DfFsoaq) \*\*The HR Department --------------------- HR's model and placement in an organization depends on the size, culture and strategic goals of the business. Common forms include: - A **Transactional HR Group** provides support for day-to-day transactional activities using centralized call centers and outsourcing to provide HR services. - A **Corporate HR Group** focuses on assisting top management in developing and explaining the personnel aspects of the company\'s long-term strategic plan. - An **Embedded HR Unit** features HR Business Partners who are HR professionals assigned to departments where they partner with line managers to meet departmental needs and achieve strategic goals. - **HR Centers of Expertise** are specialized HR consulting units that provide assistance in areas like organizational change or Learning and Development. [[HR Operating Models]](https://www.aihr.com/blog/types-of-hr-operating-models/) **HR Roles** In smaller and growing organizations HR professionals often take on multiple roles - **HR Managers** are the strategic leaders who oversee the department\'s operations. They partner with leadership to align HR strategy with business goals, develop strategic HR plans and strategies, and ensure the effective execution of HR initiatives. - **HR Generalists** serve as versatile HR practitioners, handling a wide range of responsibilities, from employee relations and benefits administration to performance management and talent development. - **HR Coordinators** manage the entire employee lifecycle in small to smaller organizations. In larger organizations, their role is more specialized. - **HR Business Partners (HRBPs)** act as strategic liaisons between HR and an organization\'s business units. They collaborate directly with line managers to help the organization achieve its strategic goals and advise the company on implementing HR policies, practices, and processes. In larger organizations, HR professionals specialize in specific HR functions like talent acquisition, learning and development or data analysis. [[IMAGE Ref HR Job Titles ]](https://trello.com/c/nVCwih1z) **HR Analysts** collect, analyze, and report HR data. They use this data to provide recommendations to senior management on people-related issues and assist HR leadership in staffing or implementing new initiatives. **Talent Acquisition Specialists** find, attract, and hire qualified candidates. They focus on developing a strong talent pipeline and ensuring a smooth onboarding process for new hires. **Diversity, Equity, Inclusion, and Belonging (DEIB) Officers** promote equality and reduce discrimination in the workplace. They ensure equal treatment and access to services across the organization and develop the company culture and policies to increase employees' sense of belonging and inclusion. **Compensation and Benefits (C&B) Specialists** manage employee compensation. They develop C&B initiatives, analyze C&B market trends, and assist HR Business Partners and managers in C&B-related issues. **HR Data Scientists** apply statistical theory and methods to collect, analyze, and summarize HR data. They use this data to make predictions and provide leaders with actionable recommendations on people-related issues. **Learning and Development (L&D) Managers** oversee the training and professional development of all employees. They develop and implement learning strategies, design training programs, assess training success, and manage the development of the HR team. **Chief Talent Officers** are in charge of talent acquisition strategy, particularly for senior roles. They manage talent supply and demand based on an organization's needs and workforce planning. **Chief Wellness Officers** take care of the overall physical, mental, and emotional well-being of employees. They develop well-being programs, create a workplace wellness culture, and communicate the importance of well-being. Evolution of HR Management -------------------------- Current HR practice is built on over 100 years of evolution from guilds, through an era of personnel management to modern times where technologies are changing how companies are structured and how HR views work. - Three main Foundational Theories emerged in the 20th century, known as the scientific, administrative and humanist schools of thought. - New forces are shaping the business world and HR as hybrid and remote work forces emerge, HR practice is adapting to be more flexible and people-centered. ### Classic Foundational Theories **Scientific Management** This school of thought emerged in the early 1900's with a view of workers as machines that could be optimized to improve their efficiency for greater output. **Dr Frederick Taylor** (1911) developed a method to analyze work and find the most efficient way to do tasks. His four principles of scientific management were: - Use scientific analysis to determine task efficiency. - Match workers to jobs based on capability and motivation, then train for efficiency - Use instruction and supervision to ensure "best" methods for tasks - Divide work between managers (planning, training) and workers (production) According to scientific management, if you pay employees more, they will be motivated to work harder. Many of Taylor's ideas were used by Henry Ford at the Ford Motor Company. In addition to standardizing the workflow and introducing the first moving assembly line, Ford started paying his workers \$5 a day, which was more than double the average factory wage. Productivity surged and Ford Motor Company doubled its profits within two years. [[Frederick Winslow Taylor (public domain)]](https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor#/media/File:Frederick_Winslow_Taylor_(1).JPG) **Frank Gilbreth** and his wife, **Dr. Lillian Gilbreth** (1909-1917) were engineers who tried to identify "the one best way" to perform any task. Using film to record, study and improve work processes, they documented work as a collection of individual motions called "therbligs" that could be optimized to increase production. They believed that happy, healthy workers led to greater profits so they asked companies that benefited from their methods to increase wages. Their management theory boiled down to: 1. Reduce the number of motions in a task. 2. Focus on the incremental study of motions and time. 3. Increase efficiency to increase both profit and worker satisfaction. [[Public domain film]](https://en.wikipedia.org/wiki/File:Original_Films_Of_Frank_B_Gilbreth_(Part_I).ogv) , [[Frank Bunker Gilbreth Sr.]](https://en.wikipedia.org/wiki/Frank_Bunker_Gilbreth#/media/File:Frank_Bunker_Gilbreth_Sr_1868-1924.jpg) and [[Lillian Moller Gilbreth]](https://en.wikipedia.org/wiki/Lillian_Moller_Gilbreth#/media/File:Lillian_Moller_Gilbreth,_1921.jpg) #### **Administrative Management** An alternative theory that emphasized the role of management practice on workplace productivity was developed by **Henri Fayol**, a mining executive. Hia management theory was called Fayolism, and he saw workers as people motivated by more than just money but his view was from the top down. Fayol proposed 14 principles of management in his 1916 book, *Administration Industrielle et Générale* (Industrial and General Administration) which correspond to the five elements of management that are still used today, although "command and control" are generally replaced with "leading and motivating" for the sake of political correctness. Henri Fayol\'s 5 elements of management are: 1. **Planning**: Create an action plan. 2. **Organizing**: Provide resources and define responsibilities to carry out the plan. 3. **Command**: Implement the plan by leading and motivating personnel. 4. **Coordination**: Harmonize activities through communication to achieve success. 5. **Control**: Evaluate activities to ensure quality, take corrective action. [[Henri Fayol (public domain)]](https://en.wikipedia.org/wiki/Fayolism#/media/File:Fonds_henri_fayol.jpg) #### **Behavioral Management** A human-centric view of workers emerged in opposition to the "man as machine" approach of scientific management. Humanists saw workers as individuals with particular social needs, expectations and interests. Also known as Human Relations this school of thought explored the effect of motivation, and group dynamics, on efficiency and productivity. **Elton Mayo**, an Australian psychologist, conducted research at Western Electric\'s factory in Hawthorne, Chicago in the late 1920s and early 1930s. He observed that employee performance is influenced by the work environment, co-workers, and innate ability. His work gave rise to the \"Hawthorne Effect\", a term that describes how people change their behavior when they know they are being observed. Mayo's Hawthorne experiments were designed to see if lighting changes affected productivity. He and his colleagues found that both increased and decreased lighting led to higher productivity than before the experiments. They concluded that the attention workers received, not the lighting, caused the increase. This has been interpreted in two ways: some argue that workers were motivated because managers cared about their work situation, while others believe workers worked harder because they were being observed. Even so, the Hawthorne experiments proved that money is not the only motivator for employees. [[Portrait of Elton Mayo (public domain)]](https://en.wikipedia.org/wiki/Elton_Mayo#/media/File:Elton_Mayo.jpeg) **Mary Parker Follet** (1918) was a Humanist who saw conflict as an opportunity for innovation and a chance to develop "integrated solutions\" which she described as a "win-win" situation. She defined management as \"the art of getting things done through people\" and her book \"The New State,\" published in 1918, expressed her ideas on conflict resolution, participatory democracy and how society and personal identities form each other. Her impact on management theory was immense: - She recognised the lateral processes within hierarchical organizations which led to the formation of matrix-style organizations, like DuPont - The idea of the \"authority of expertise,\" that leaders should be defined by their expertise not their position in the hierarchy. - She argued that managers did not need to manipulate workers but could instead empower them to achieve results. - She said: "Neither working for someone nor paying someone\'s wages ought to give you power over them." - She used the term \"reciprocal relationships\" to explain how individuals relate to others, and "followership" to describe the group power of goals shared by leaders and followers. - She proposed a management style based on "transformative leadership" and the principle of \"integration,\" or non coercive power-sharing, which means empowering others (power with) rather than wielding power (power over). [[Follett, at her graduation from Radcliffe (public domain)]](https://en.wikipedia.org/wiki/Mary_Parker_Follett#/media/File:Mary_Parker_Follett.png) Psychologist **Abraham Maslow (1943)** argued in \"A theory of Human Motivation\" that people are motivated by five categories of needs, especially those that are unmet. The bottom four levels are "deficiency needs" that result in anxiety when not met, while the fifth level is a "growth need" because it enables self-actualization. [[IMAGE Maslow's Hierarchy of Needs]](https://trello.com/c/bvfsXFee) or [[Source (CC by A)]](https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs#/media/File:MaslowHierarchy.png) Maslow\'s pyramid of needs is a theory of human motivation that suggests people are motivated by five categories of needs. - **Physiological needs**: These are basic needs for survival, such as food, water, and shelter. In the workplace, this translates to a need for a paycheck to afford these necessities. - **Safety needs**: Once physiological needs are met, people seek security, stability, and protection from harm. In the workplace, this includes job security, health insurance, and safe working conditions. - **Love and belonging needs**: After feeling safe, people desire social connection, intimacy, and a sense of belonging. In the workplace, this means feeling connected to colleagues and having positive relationships with managers and teammates. - **Esteem needs**: When people feel a sense of belonging, they seek recognition, status, and a feeling of accomplishment. In the workplace, this translates to receiving praise, positive feedback, promotions, and increased responsibilities. - **Self-actualization needs**: At the highest level, individuals strive to reach their full potential and find meaning in their work. In the workplace, this means having opportunities for creativity, autonomy, and personal growth. Note: Motivation is dealt with in more detail in chapter 10 \*\* Trends shaping HR ---------------------- The modern HR landscape is evolving in response to several key trends: - **Hybrid Workforce:** The workforce now includes remote workers, freelancers, and gig workers alongside traditional full-time employees. - **People-Centered HR Policies:** Organizations are prioritizing employee well-being and work-life balance, recognizing that human sustainability drives business success. - **Flexibility:** Flexible work arrangements benefit both employees and employers, offering advantages like improved work-life balance and increased job satisfaction. - **Employee Wellness:** There\'s a growing emphasis on mental health and overall well-being in the workplace. - **Diversity, Equity, and Inclusion (DEI):** DEI initiatives are becoming increasingly important. - **Employee Reskilling and Upskilling:** HR leaders prioritize building critical skills and competencies within the workforce. - **Technology:** AI and predictive analytics are transforming workforce management. - **Agile Business Practices:** Organizations adopt agile methods to adapt to change, boost productivity, and meet customer needs. **Deloitte Predictions for the Future of Work 2024** Five predictions highlight the transformative potential of technology in HR: - **Generative AI Integration with HR:** Generative AI will become ubiquitous in HR, automating tasks and enhancing decision-making. - **Headless HR Systems:** These systems will offer flexibility and customization, allowing workers to access HR technology seamlessly. - **Total Workforce Intelligence:** Organizations will strategically utilize contingent labor through comprehensive workforce data analysis. - **Deskless Worker Design:** HR technology will cater to the needs of deskless workers, improving their experience and productivity. - **Digital Identity Management:** Digital identity management will become a standard hiring requirement, enhancing security and privacy. ### Role and Importance of Strategic HR in Organizations ---------------------------------------------------- Strategic HR goes further than routine employee management and administrative tasks to embrace the strategic vision of the organization by directing all HR activities to support strategic objectives and achieve long-term goals. - Strategic HR has a comprehensive plan, aligned with organizational strategy, for people, policies and practice to work together to support a competitive strategy. - Strategic HR practice ensures that employees with the necessary attitude, skills, or motivation are hired to achieve the organization\'s strategic objectives. - Strategic HR policies have numerous benefits like increased performance and productivity, enhanced employee engagement and better use of resources ### Strategic HR Defined The role of HR is to fully understand and embrace organizational strategy, and then formulate a plan, or HR strategy, that sets out in clear and measurable objectives, how human capital will be invested and optimized to reach strategic long-term goals. Key activities used for strategic HR include: - **Workforce Planning**: Strategic planning analyzes the current workforce and identifies future needs to ensure the organization has the right talent in place. - **Talent Management**: Strategic recruitment plans support the organization's business strategy and HR people management practices nurture, develop and retain top talent. - **Performance Management**: Employees are motivated and evaluated in a process that involves setting clear expectations and reachable goals, tracking performance, and providing feedback. - **Learning and Development**. Strategies to improve employee performance and retention include providing opportunities to learn, grow and progress and ensuring that they have the resources and skills they need to perform. - **Communication**: HR makes employees aware of strategic goals, and how their work contributes, and what they stand to gain from attaining them. ### Benefits of Strategic HR HR plays a strategic role in shaping an organization's future by aligning HR practices with the core organizational values and business strategy. Bene - **Achieving Business Objectives**: Strategic HR helps organizations attract, develop, and retain the talent they need to achieve their strategic goals. By understanding the organization\'s direction, HR can develop targeted initiatives that support those goals with specific objectives - **Improved Performance**: Strategic HR practices can lead to a more engaged and productive workforce. When employees understand how their work contributes to the organization\'s success, they\'re more likely to be motivated and satisfied in their roles. - **Reduced Costs**: Strategic HR can help organizations save money by reducing turnover, improving recruitment efforts, and ensuring compliance with labor laws. - **Competitive Advantage**: In today\'s competitive job market, a strong employer brand and strategic HR practices can help organizations attract and retain top talent. This can give them a significant advantage over their competitors. - **Proactive Approach**: Strategic HR allows organizations to be proactive in addressing future challenges, such as skills gaps or technological advancements. By anticipating future needs, HR can develop strategies to address them before they become problems. - **Better Decisions**: Increased alignment between HR initiatives and business goals resulting in better HR decision-making based on data and analysis, enhanced employee engagement and motivation and a more valuable and effective strategy. An Overview of Common HR Digitalization Strategies -------------------------------------------------- According to Trost: The four types of HR (in regard to digitization) are - **Hire & Pay:** This type of HR is characterized by a minimal approach to HR practices. Companies that adopt this approach typically prioritize cost efficiency and operational simplicity. They may not have formal HR departments or extensive HR systems in place. Instead, they rely on informal communication and individual discretion to address HR-related matters. - **Central Planning and Control:** This type of HR is characterized by a highly structured and centralized approach to managing people. Companies that adopt this approach typically have well-defined HR processes, systems, and policies. HR plays a central role in planning and controlling all aspects of people management to align with the company\'s strategic goals. This approach often emphasizes efficiency, standardization, and compliance. - **People-Centered Enablement:** This type of HR is characterized by a focus on empowering employees and teams. Companies that adopt this approach prioritize employee autonomy, development, and engagement. HR acts as an enabler, providing support and resources to help individuals and teams succeed. This approach often emphasizes flexibility, collaboration, and innovation. - **The Digital Dehumanization of Human Resource Management:** This type of HR represents a future scenario where artificial intelligence, machine learning, and big data play a central role in HR decision-making. This approach could lead to increased efficiency and objectivity in HR processes but also raises concerns about the potential loss of human judgment and the ethical implications of algorithmic decision-making. Agility vs Stability -------------------- Armin Trost argues that HR strategies need to find a balance between stability and agility to keep organizations relevant and competitive in the face of digitization and a complex, uncertain world. - Stability is based on hierarchies and top-down management by command and control. It offers predictability but can lead to rigidity and stagnation. - Agility promotes flexibility and innovation but it is unpredictable and can lead to instability and loss of control. ### Balancing Stability and Agility in Times of Digitization Armin Trost is a leading proponent of agile HR. In his book \"Human Resources Strategies: Balancing Stability and Agility in Times of Digitization\" He argues that the traditional, hierarchical model of HR, while effective for stable environments, may not be suitable for the rapidly changing digital age. Instead, HR needs to shift its focus to enabling employees and teams to be more agile and adaptable. According to Trost "For HR this means moving away from hierarchical thinking, where we think of management in a top-down sense and we start with company purpose and then design policies and roll them out. We design jobs based on the mission, we find the people to fill these jobs, we train them so they fit into the predesigned organization so basically we treat it like a machine and we call this 'having the right people at the right in the right places'." He outlines six possible roles for HR in the context of digitization - **Administrator:** Optimizes existing HR processes through digital technology. - **Supporter:** Provides employees and managers with electronic assistance for HR-related tasks. - **Companion:** Supports the company with HR-related challenges during digital transformation. - **Creator:** Uses digital technology to change the way employees work. - **Entrepreneur:** Determines how the company should position itself in terms of products and partnerships during digital transformation. - **Enabler:** Changes structural and cultural frameworks to strengthen competitiveness in the face of digitization. **Trost** focuses on the role of the enabler and focuses on the need for alternative approaches and solutions as companies transition to more agile models. ### Stability VS Agility +-----------------------+-----------------------+-----------------------+ | | STABILITY | AGILITY | +-----------------------+-----------------------+-----------------------+ | Key Features | Hierarchical | Organizations | | | structure with clear | prioritize | | | rules and "command | flexibility, | | | and control" | adaptability, and | | | management. | responsiveness. | | | | | | | Centralized | Decentralized | | | decision-making | decision-making | | | concentrated at the | distributes power to | | | top levels of | the frontline | | | management. | | | | | A culture of | | | Rigid structure with | collaboration | | | clearly defined roles | empowers employees to | | | and responsibilities | take responsibility. | | | | | | | Rule-bound processes | Flexible and adaptive | | | are focussed on | processes encourage | | | control, efficiency | innovation and | | | and predictability. | responsiveness. | +-----------------------+-----------------------+-----------------------+ | HR Practice | HR enforces | HR acts as an | | | people-policies | enabler, providing | | | dictated by | support and resources | | | organizational | to help individuals | | | strategy objectives. | and teams succeed. | | | | | | | HR strategic planning | HR Strategic planning | | | proceeds in a linear | is an ongoing, | | | way from a company\'s | iterative process | | | mission statement. | that adapts quickly | | | | to meet challenges.. | | | HR plans and controls | | | | all aspects of people | HR favors | | | management to align | people-centered | | | with the | practices, | | | organizational | encouraging employees | | | strategy | and teams to take | | | | ownership of their | | | | work and success. | +-----------------------+-----------------------+-----------------------+ | Values | Prescriptiveness | Adaptability | | | | | | | Management and | Inspiration and | | | retention | engagement | | | | | | | Extrinsic rewards | Intrinsic motivation | | | | | | | Obligation | Ambition | +-----------------------+-----------------------+-----------------------+ | Benefits | Enables quick | | | | decision | | | | implementation and | | | | structured monitoring | | | | | | | | Provides a clear | | | | chain of command | | | | | | | | Reduces ambiguity and | | | | uncertainty | | +-----------------------+-----------------------+-----------------------+ | Challenges | Can slow operational | | | | processes | | | | | | | | May result in lower | | | | employee satisfaction | | | | and engagement | | | | | | | | Limits adaptability | | | | and innovation | | +-----------------------+-----------------------+-----------------------+ | How the two | | | | approaches manifest | | | | in key HR areas | | | +-----------------------+-----------------------+-----------------------+ | Recruitment | Focussed on | Focussed on | | | attracting permanent | attracting candidates | | | candidates who fit | who bring diverse | | | the company\'s | perspectives. Hybrid | | | predetermined | workforces and | | | requirements and | outside freelancers | | | culture. | play a much bigger | | | | role | +-----------------------+-----------------------+-----------------------+ | Employer Branding | The employer brand is | The employer brand is | | | carefully crafted and | co-created with | | | controlled by the | employees and | | | company. | reflects the | | | | company\'s values and | | | | mission. | +-----------------------+-----------------------+-----------------------+ | Talent Acquisition | Relies on formal | Uses a variety of | | | processes and | methods, including | | | assessments to | informal networks and | | | identify and select | referrals, to | | | candidates. The focus | identify and attract | | | is on finding | talent. The focus is | | | individuals who meet | on finding | | | the job\'s specific | individuals with | | | requirements. | potential for growth | | | | and adaptability. | +-----------------------+-----------------------+-----------------------+ | Performance | Sets clear objectives | Sets goals | | Management | and evaluates | collaboratively and | | | performance against | provides continuous | | | them. Formal annual | feedback. Focused on | | | appraisals are | team performance and | | | focussed on | individual | | | individual | development. | | | accountability. | | +-----------------------+-----------------------+-----------------------+ | Learning and | Provides structured | Encourages continuous | | Development | training programs and | learning and provides | | | focuses on developing | opportunities for | | | specific skills and | self-directed | | | competencies. The | development. | | | company controls the | Employees take | | | learning process. | ownership of their | | | | learning journey. | +-----------------------+-----------------------+-----------------------+ | Compensation | Use a fixed salary | Use a more flexible | | | structure with | approach with broader | | | clearly defined pay | pay bands. Reward | | | grades and bands. | team performance and | | | Reward individual | focus on external | | | performance and focus | competitiveness. | | | on internal equity. | | +-----------------------+-----------------------+-----------------------+ | Workforce | Employees are managed | Employees work in | | | in set departments | fluid teams with less | | | according to | rigidly-defined roles | | | predefined roles and | on shorter-term | | | work towards meeting | projects, managed by | | | the long-term | different leaders | | | strategic objectives | with relevant | | | of the organization. | expertise. | +-----------------------+-----------------------+-----------------------+ | Strategy | Strategy flows from a | Agile Strategy is not | | | mission statement and | defined, fixed and | | | is defined, fixed and | implemented, but is | | | implemented with all | in a constant flow of | | | levels and | definition, | | | departments focussed | realization, | | | on long-term goals. | measurement, and | | | | adaptation. | +-----------------------+-----------------------+-----------------------+ ‌ **The Challenge:** The digital world demands agility, but organizations still need some stability to function effectively. Trost doesn\'t advocate for complete abandonment of either concept. Instead, HR should strive for a strategic balance between the two, considering factors like the organization\'s culture, goals, business model and market conditions. In Trost\'s view, successful HR in a digital age requires: - **Shifting leadership styles**: From directive to coaching and enabling - **Empowering employees**: Granting them more autonomy and fostering a sense of ownership. - **Prioritizing learning and development**: To keep up with the ever-changing digital landscape. **Trost proposes that a successful HR strategy should** - Align with the company\'s overall business purpose and strategic goals. - Identify and focus on key areas that will most effectively address the company\'s specific challenges. - Be guided by an organization's structure and leadership style when considering to lean more towards a hierarchical or agile approach - Foster a culture of continuous learning and adaptation, allowing for failure and learning from mistakes. ### More on Agility Organizations transitioning from stable to agile models often encounter challenges: - Coordinating between departments can be difficult, especially when breaking down hierarchies. - Employees and managers used to traditional structures may resist adapting to new ways of working. - During crises, people may revert to familiar hierarchical behaviors, hindering agile adoption. - Organizations might unintentionally recreate hierarchies within agile teams, undermining the transformation\'s benefits. - Well-intentioned agile initiatives can become overly bureaucratic and lose flexibility. - Additionally, external regulations may conflict with agile principles, requiring careful navigation. To overcome these challenges and successfully transition to agile models, companies can follow the **Principles of Agile Transformation** - **Agility Is Not an End in Itself:** Agility should be seen as a means to achieve strategic goals, not as a goal in and of itself. - **Self-Critical Status Review and Realistic Expectations of the Future:** Companies need to honestly assess their current state and set realistic expectations about the transformation process. - **The CEO Must Really Want it:** Strong leadership and commitment from the top are essential for driving and sustaining the agile transformation. - **Coaching by Externals with Experience:** External coaches with experience in agile transformations can provide valuable guidance and support. - **Agile Principles in Transformation:** The transformation process itself should embody agile principles, such as iterative development, continuous feedback, and adaptability. - **Personal Experience Instead of Only Theoretical Teaching:** Employees and managers need to experience agile practices firsthand to fully understand and embrace them. - **One Stone at a Time:** The transformation should be implemented gradually, focusing on small, manageable changes that build upon each other. - **Allowing Failure and Learning from it:** Companies should create a safe environment where failure is seen as an opportunity for learning and improvement. - **Green Meadow as an Option:** In some cases, it may be more effective to create a separate, agile unit within the company rather than trying to transform the entire organization at once. - **Be Bold, Be Right:** Companies need to be courageous in their pursuit of agility, taking calculated risks and learning from their experiences. **Chapter 2: Strategic HR Planning** ==================================== Strategic Alignment of HR with Organizational Goals --------------------------------------------------- HR plays a pivotal role in achieving an organization\'s goals by addressing people-related aspects of business strategy. Most managers agree that an effective HR plan is a key to a successful business strategy. - Strategic Alignment of HR is the key to successful strategy implementation and successful companies involve HR in all stages of the strategic planning process - Strategic Alignment of HR ensures that HR's people, planning and practices support the organization\'s goals and objectives. - Alignment ensures that HR planning produces initiatives, policies and processes geared to help the organization succeed.. ### HR's role in Business Strategy Planning The relationship between business strategy and HR strategy is key to achieving an organization\'s goals. HR planning should support and align with the overall business strategy to ensure that the organization has **the right people with the right skills in the right positions** to accomplish the overarching business goals. Alignment produces consistency and ensures that HR-related activities reinforce the organization's competitive strategy. Effective strategic HR planning includes initiatives that directly support the success of the business strategy. ### The Strategy Planning Process The main steps for developing any strategy, including strategic HR plans, are: 1. **Analysis:** establish the organization's mission, vision and and consider the role that culture and core values play; use situational analysis tools like SWOT to analyze strengths, weaknesses, opportunities, and threats within the context of market realities; 2. **Formulation**: convert the insights from analysis into a competitive strategy and a business plan with objectives or KPIs - tangible targets and goals to achieve the mission. 3. **Implementation**: Establish an action plan for projects and activities that will deliver on the objectives Smart organizations include HR in strategic planning because HR has many ways to contribute to organizational strategy: - HR supports analysis of the organization\'s strengths and weaknesses, identifying areas of expertise and competitive advantage. - HR identifies and assesses critical skill gaps, knowledge gaps, and leadership development needs. - HR provides insight into external risks and opportunities based on legal, market, societal, technological, and geopolitical factors. - HR develops strategies and objectives that support the implementation of the organization\'s chosen strategy. - HR helps align the organization\'s structure, policies, and practices (including recruitment and employee development) with its chosen strategy. - HR can assist in creating a strategic plan that aligns with the organization\'s mission statement. - HR develops a workforce plan that assesses the current workforce, identifies skill and ability gaps, and determines how to fill them. - HR communicates the organization's strategic direction and goals to employees, so they understand how they contribute to organizational success. (SOURCE: LUMEN) ### Aligning HR to organizational strategy Strategic alignment is how the company's structure, culture, use of resources and business processes support business strategy. Aligning human resources (HR) with an organization\'s strategy is the starting point for strategic HR planning. When this alignment is successful, the activities fit strategically and reinforce each other, producing consistency and ensuring that HR-related activities support the organization's business strategy. HR activities that can be directed to support organizational strategy include: - **Staffing:** HR can ensure that the organization has the right number of employees with the necessary skills to achieve its objectives. This might involve recruiting new employees with specific skill sets or providing training and development opportunities to existing employees to help them acquire new skills. - **Compensation:** HR can develop compensation plans that attract and retain top talent and motivate employees to perform at their best. This might involve offering competitive salaries, bonuses, and benefits packages. - **Benefits:** HR can design benefits programs that meet the needs of employees and support the organization\'s goals. This might involve offering health insurance, retirement plans, and other benefits that promote employee well-being and financial security. - **Employee experience:** HR can create a positive employee experience that fosters engagement, productivity, and retention. This might involve creating a supportive and inclusive work environment, providing opportunities for growth and development, and recognizing and rewarding employee contributions. - **Employee engagement:** HR can develop programs and initiatives that promote employee engagement. This might involve conducting employee surveys, providing feedback and recognition, and creating opportunities for employees to participate in decision-making processes. - **Retention:** HR can develop strategies to retain top talent. This might involve offering competitive compensation and benefits packages, providing opportunities for growth and development, and creating a positive and supportive work environment. - **Succession management:** HR can identify and develop future leaders within the organization. This might involve providing training and development opportunities, mentoring programs, and opportunities for high-potential employees to gain experience in different roles. - **Employee development:** HR can provide employees with the training and development they need to improve their skills and performance. This might involve offering formal training programs, on-the-job training, mentoring, and coaching. - **Management and Leadership development:** HR can provide managers with the training and development they need to be effective leaders. This might involve offering leadership development programs, coaching, and mentoring. ### HR Steps to achieve Strategic Alignment 1. **Understanding the Organization\'s Strategic Goals:** This involves a deep understanding of the organization\'s mission, vision, values, and long-term goals. HR professionals need to be aware of the direction in which the organization is heading and always be closely aligned with the strategy. 2. **Identifying HR\'s Role in Achieving Strategic Goals:** HR needs to determine how it can contribute to the organization\'s success. This includes identifying the people-related aspects that will impact the achievement of strategic goals. 3. **Conducting a Workforce Analysis:** Analyzing the current workforce is crucial to identify strengths, weaknesses, gaps in skills, and potential challenges. This analysis helps in understanding the organization\'s current human capital and its alignment with future needs. 4. **Developing HR Strategies and Actions:** Based on the workforce analysis and strategic goals, HR develops strategies and action plans. These plans outline specific steps, initiatives, and programs that HR will implement to support the organization\'s objectives. 5. **Implementation and Evaluation:** The HR strategies and action plans are put into action. Regular evaluation and monitoring are essential to measure the effectiveness of HR initiatives and make necessary adjustments. 6. **Communication:** HR helps align employees with organizational goals by creating awareness and understanding of the company\'s mission, vision, and goals. This alignment can promote a sense of purpose and direction among employees 7. **Continuous Learning and Adaptation:** HR professionals need to stay updated on industry trends, best practices, and changes in employment laws. Continuous learning and networking help keep HR responsive to the evolving needs of the organization. ### ### Forecasting HR Needs -------------------- Forecasting is the process of predicting an organization\'s future staffing requirements, or demand for labor. It\'s essentially looking ahead and trying to understand what kind of workforce you\'ll need to achieve your business goals. - HR supply forecasting analyzes various factors like workload and employment trends to predict future needs. - Forecasting helps HR to anticipate how many employees will be needed, what skills they will require, and when they will be needed ### Forecasting HR needs with workforce analysis. Forecasting is a critical component of workforce planning as it enables organizations to analyze their future talent needs in alignment with their strategic plans. Forecasting plays a crucial role in strategic planning, particularly in the realm of workforce planning. It involves analyzing future talent needs based on various factors to ensure that the organization is equipped with the right people who possess the necessary skills to achieve its strategic objectives. Some factors that are considered when forecasting talent requirements: - **Growth projections:** If the organization anticipates growth, it\'s important to forecast the number and types of employees needed to support that growth. - **Anticipated retirements:** As employees approach retirement age, organizations need to forecast the potential loss of skills and experience and plan for replacements. - **Technological changes:** Rapid advancements in technology may require new skills and competencies, necessitating a forecast of future talent needs in emerging areas. In addition to these factors, current workforce composition (labor supply) is analyzed to identify potential gaps. Factors that are considered include: - **Age demographics:** Understanding the age distribution of the workforce helps identify potential retirement risks and the need for succession planning. - **Skill sets:** Assessing the current skills and competencies of employees helps identify areas where there may be gaps or shortages in the future. By considering these factors and conducting a thorough workforce analysis, organizations can proactively develop recruitment and development strategies to address their future talent needs This ensures a smooth transition as employees retire or leave the organization and enables the organization to adapt to changing business demands and technological advancements. Forecasting labor supply assists in effective planning for: - **Proactive Talent Acquisition:** By anticipating future needs, you can start planning recruitment efforts well in advance. This ensures you have a pipeline of qualified candidates ready when positions open up. - **Cost Savings:** Reactive hiring can be expensive. Rushing to fill positions often leads to rushed decisions and potentially bad hires. Forecasting allows for a more measured approach, potentially saving money on recruitment and training costs. - **Improved Skills Development:** Knowing what skills you\'ll need in the future allows you to invest in training and development programs for existing employees. This helps close any skill gaps and promotes a culture of learning. - **Strategic Decision Making:** HR forecasting informs broader business decisions. For example, if you see a surge in demand for a particular product or service, you might need to expand your workforce in that area. - **Competitive advantage:** By implementing HR forecasting, organizations can be better prepared for future challenges and opportunities. It allows for proactive planning and ensures the right people are in place to achieve success. ### Forecasting methods Each HR planning and forecasting method has its strengths and limitations, and organizations may use a combination of approaches to develop more accurate and robust HR forecasts. Common techniques used for HR forecasting include: - **Workload analysis:** This involves estimating the workload based on projected sales, production, or other factors. You can then determine how many employees are needed to handle that workload. - **Skills inventory:** Maintaining records of employees\' skills, competencies, and career aspirations to facilitate better matching of personnel to future job openings. - **Skills gap analysis:** This involves comparing your current workforce skills with the skills you\'ll need in the future. This helps identify any gaps that need to be addressed through recruitment or training. - **Replacement planning**: Identify key positions within the organization and develop succession plans to ensure suitable internal candidates are prepared to fill those roles in the event of vacancies. - **Succession planning:** This involves identifying and developing employees who can fill key positions when they become vacant. - **Trend analysis:** Looking at historical data on hiring, turnover, and business growth can help predict future trends. Some common HR forecasting methods: - **Ratio-trend analysis**: This method involves analyzing historical data such as past staffing levels, turnover rates, and business performance to identify patterns and trends that can be used to predict future HR requirements. - **Managerial estimates**: HR managers and department heads provide their insights and predictions based on their knowledge of business operations, upcoming projects, and anticipated changes in staffing needs. - **Delphi method**: This is a structured approach in which a panel of experts anonymously provides their forecasts, which are then aggregated and iteratively refined through multiple rounds of feedback until a consensus is reached. - **Workload analysis**: Assessing the workload of various departments or teams to determine staffing needs based on productivity targets, project timelines, and expected work volumes. - **Regression analysis**: A statistical method that examines the relationship between sales volumes and workforce size to determine staffing needs for different sales levels. - **Replacement planning**: Identify key positions within the organization and develop succession plans to ensure suitable internal candidates are prepared to fill those roles in the event of vacancies. - **Skills inventories**: Maintaining records of employees\' skills, competencies, and career aspirations to facilitate better matching of personnel to future job openings. \[Not in BIG BOOK- compiled from multiple sources\] Workforce Planning ------------------ Workforce Planning (WFP) sets out to support all the human related parts of the strategy with thorough analysis and a comprehensive plan to leverage the skills, abilities, and competencies of the workforce to achieve strategic goals. - Workforce planning is the key strategic contribution of HR and is done in lockstep with the organization's strategy. - Workforce plans analyze talent requirements, forecast workforce trends, and create long-term strategies for employee retention and development ### The Role of Workforce Planning (WFP) Workforce planning is a process that organizations use to analyze their current workforce and determine what skills and abilities will be required in the future to achieve business objectives. It is a long-term process that aligns HR in support of the organization's strategy Workforce planning informs staffing, employee development and succession planning needs. It analyzes all current and future positions and focuses attention on positions that are key to the organization's success and/or hard to fill. It should be an iterative and ongoing activity that is evaluated and adjusted frequently Workforce planning teams should be led by HR and include leaders from all parts of the organization in an inclusive, ongoing process to make short and long-term plans that are evaluated and revised as needed. A well-crafted workforce plan contains broad mission-related targets and milestones that translate strategic thinking into concrete actions. It has the potential to save the organization time and money by laying out a logical way to hire, train, and develop employees. Workforce planning plays a crucial role in an organization\'s strategic business planning,: - It provides a holistic view of the organization and its future needs. - It is informed by in-depth data-driven analysis - It helps make informed decisions for both the short and long term. - It Identifies key positions critical to the organization\'s success. - It directs staffing, employee development, and succession planning. - It enables organizations to be more agile and adaptable to change. - It aligns HR activities with the organization\'s strategies. ### Workforce Planning Process The workforce planning process can be broken down into four key steps: **Step 1: Analyze the Current Workforce** - This step involves taking stock of the current workforce and noting the skills, abilities, and demographics of the employees. - It is important to consider the age of employees in relation to retirement. - Organizations should also project attrition rates (due to resignations, retirements, internal transfers, promotions, and terminations) **Step 2: Determine What Knowledge, Skills, and Abilities Will Be Required to Achieve Business Objectives for the Next Year** - In this step, organizations must consider their strategic plans for the upcoming years when determining what skills will be needed. - This includes changes to the mission, vision, budget, and objectives of the company, as well as labor force trends and technological innovations. - Questions about the organization\'s growth and changing business environment should be considered. **Step 3: Do a Gap Analysis** - The gap analysis compares the current workforce (and its predicted attrition rate) to the projected skills and abilities that will be required. - Organizations should consider if current employees can be trained to fill the gaps or if new staff will need to be hired. **Step 4: Implement the Workforce Plan** - During the implementation phase, the plan is put into action with a schedule that includes objectives, goals, timetables, and milestones. - The plan should be continually measured for its success and adjusted as needed. - Key metrics include staffing levels, organizational effectiveness, and workload or workforce gaps. **A workforce plan includes these key elements:** - **Alignment with strategic plan**: The workforce plan should be grounded in the organization\'s strategic plan, including its mission, vision, and values. This ensures that HR activities support and reinforce the overall business strategy. - **Evaluation of impact on current workforce**: The plan should assess its effect on the existing workforce and aim to maintain a proper diversity mix. - **Determination of future needs**: It should determine the number and skill set of employees required to meet upcoming challenges, considering factors like growth, downsizing, or new products/services. - **Gap analysis**: A gap analysis should be conducted to identify discrepancies between current workforce capabilities and future needs. - **Strategies to address gap**s: The plan should include strategies to bridge the gaps between projected supply and demand of skills and staff. - **Action plan**: A detailed action plan with assigned responsibilities, due dates, and necessary resources should be in place. - **Communication and support plan**: The plan should be communicated to relevant stakeholders and have the support of organizational leadership, especially top management. - **Ongoing evaluation and updates**: The plan should include a strategy for regular evaluation and updates to adapt to changing business conditions. **Tips for successful workplace planning:** - Ensure senior-level managers lead the planning process to align workforce plans with the business\'s strategic direction. - Designate an HR team lead to manage the process and involve finance, marketing, and operations leaders. - Find a senior executive to champion the process. - Identify and involve key stakeholders in the planning process. - Coordinate the plan with strategic, succession, and career development plans. - Ensure ongoing evaluation and frequent adjustments to the workforce plan. - Ground the workforce plan firmly in the organization\'s culture ### Skills Gap Analysis Gap analysis is the way HR can assess current human resources by developing a profile of employees that includes staff levels, demographics, and competencies and KSAs (knowledge, skills, and abilities). To compile and analyze human resource data, you must first understand the why you're doing the work, what your deliverable should be, and what steps you should take: **Purpose**. Provides the data for the workforce plan, using systematic analysis to reveal the department's workforce gaps. **Deliverable**. A comprehensive analysis of the department's staffing and competency gaps and a list of the department's classifications in order of risk level. **Primary Steps**. Develop a profile of your current workforce that includes both staffing (composition such as number of staff and demographics) and competencies (knowledge, skills and abilities). 1. Use the results from the strategic planning phase to project future human resource needs. 2. Perform a gap analysis to identify current and future staff and competency needs. 3. Develop and prioritize a list of human resource risks to inform the workforce action planning. SOURCE: LUMEN Evaluating Supply and Demand ---------------------------- Strategic HR includes analysis of workforce supply and demand by forecasting future staffing needs and assessing the supply of relevant talent. - Supply refers to the internal talent pool and its capabilities while demand refers to the organization\'s future talent needs. - Workforce planning balances workforce demand and talent supply to avoid surpluses and shortages. Evaluating supply and demand is a critical step in the workforce planning process. Analytical methods are used to assess macro and micro level factors on current resources to forecast demand and to assess the availability or supply of relevant talent in the market. Evaluating supply and demand in workforce planning involves assessing the following: - **Supply:** This refers to the internal talent pool and its capabilities. It involves analyzing the skills, experience, and qualifications of the current workforce. Age demographics, retirement eligibility, and potential for internal mobility can also be considered. - **Demand:** This refers to the organization\'s future talent needs. It involves considering the organization\'s strategic goals, as well as any upcoming changes in the industry or business environment. Factors that influence demand include plans for growth, mergers and acquisitions, and technological advancements. **Evaluating Supply and Demand** Gap analysis is the process of comparing your current workforce supply to your workforce demand and identifying deficits or surpluses. By evaluating both internal and external factors that affect supply and demand, organizations can identify any gaps between their current workforce capabilities and their future needs. For instance, supply analysis makes projections of attrition (due to resignations, retirements, internal transfers, promotions, and involuntary terminations) over the planning period.These are taken into consideration when evaluating what the future demand will be, in terms of the number of employees and the specific skills needed to achieve strategic objectives. This information is used to develop strategies to address those gaps, such as recruitment, training, or outsourcing. **Workforce demand analysis** figures out the quantity and quality of employees an organization will need in the future. Methods include: - **Quantitative Forecasting** estimates the number of employees needed to meet future organizational needs, considering business growth plans, market conditions and strategies, and potential new markets or products. - **Qualitative Forecasting** examines what specific skills, competencies, and roles will be required to achieve these objectives by considering the impact of new technologies, changing job roles and emerging skill sets. - **External Influences** such as market and industry trends, laws and regulations and climate change emerge to alter the needs of the future workforce and forecasts have to adapt. **Workforce Supply Analysis** assesses the capacity of the current and future workforce capacity by analyzing: - **Current Workforce Capability** using skills inventories, performance evaluations and potential assessments to assess the internal workforce in terms of skills, experience, and potential of current employees to meet future needs. - **External Labor Market Conditions** by applying labor market trends, demographic changes, and the global availability of critical skills to analyze availability of required skills in the external market. - **Workforce Change Predictions** anticipate how the workforce will be impacted by factors like attrition, turnover and hiring trends.[[SOURCE]](https://blog.agentnoon.com/workforce-demand-supply-analysis-strategic-workforce-planning) **Other methods:** **Data processing analytics** are useful for assessing workforce by processing HR data such as performance management figures to spot opportunities for skills training, or development needs. **Markov Analysis** tracks the pattern of employee movements within the organization to develop a transitional probability matrix for forecasting internal supply by specific categories like job title or gender ![](media/image2.png) [[SOURCE]](https://blog.agentnoon.com/workforce-demand-supply-analysis-strategic-workforce-planning) [[Placeholder IMAGE agentnoon]](https://trello.com/c/EG0rvN8T). Job Analysis and Description ---------------------------- The first step in writing a job description is to do job analysis, which HR uses to improve efficiency, productivity, and legal compliance in the organization - The information gathered in the process of job analysis forms the basis for writing a job description - A job description outlines the duties, responsibilities, functions, and requirements of a specific position. ### Job Analysis Job analysis is a fundamental HR practice that offers numerous benefits to organizations. It provides a foundation for various HR functions, including recruitment, performance management, compensation, and employee development. The purpose of job analysis is to systematically study and gather information about the activities and responsibilities of specific jobs, as well as the qualifications and conditions required for their performance. Key elements that a job analysis should contain are the KSAs - **Knowledge:** the information necessary for task performance. - **Skills:** the level of competency or proficiency. - **Abilities:** traits or capabilities necessary to perform the job. - **The job\'s context:** its purpose, work environment, and place in the organization. - **The job\'s content:** duties and responsibilities. - **Associated behaviors**: how people doing the job are expected to act. **Steps to perform Job Analysis** 1. **Identify the reason for doing the job analysis** and determine the desired outcome. 2. **Select the method(s) to be used**, the positions to be analyzed, and review any available resources. Determine the appropriate sample size for the analysis. 3. **Choose the analysts** who will perform the analysis. They could be external consultants or internal staff. 4. **Train the analysts** on the chosen methodology. 5. **Prepare for the analysis** by setting up documentation, establishing time frames, and communicating the project and its purpose to the organization. 6. **Collect data** and then review and verify the collected information. Involve supervisors in the review process and return to the original source to verify data and ask any follow-up questions. 7. **Consolidate the results** of the analysis. 8. **Develop job descriptions and job specifications** based on the consolidated results. **Job Analysis Methods**: - **Observation:** Directly observing employees performing tasks and recording observations to identify necessary knowledge, skills, and abilities. Best for short-cycle production jobs. - **Interview:** Using predetermined and follow-up questions in face-to-face interviews to gather information from employees about required KSAs. Best for professional jobs. - **Open-Ended Questionnaire:** Gathering information on KSAs from job incumbents and managers through questionnaires. Useful when analyzing many jobs with limited resources. - **Highly Structured Questionnaire:** Using questionnaires with specific response options to determine task frequency, importance, and required skills. Enables computer-based analysis. - **Work Diary or Log:** Employees maintain a diary or log, recording task frequency and timing. Provides a large amount of data that can be difficult to interpret and maintain. **Information sources** **Internal sources** of information include published information, input from management, employees and/or a relevant subject matter expert and job incumbent log of daily activities **O\*Net OnLine database** is updated regularly and contains standardized and occupation-specific descriptors on almost 1,000 occupations ### ### Job Descriptions: A job description defines the basic details of a job and it serves as a roadmap for employees, clarifying expectations and aiding in performance evaluation. **What is included in a Job Description:** - Position title - Supervisor/manager - Geographic location - Date prepared - FLSA status (exempt or nonexempt)\* - Summary: a brief overview of the job\'s purpose, expected results, and autonomy - Responsibilities or essential duties: tasks, duties, and their importance for ADA compliance - Nonessential duties - Required and desired skills and experience - Managerial responsibilities (if applicable) - Physical demands and work environment - Success factors: personal characteristics for success - Disclaimers (e.g., \"other duties as assigned\") - Signature of incumbent and date signed **Writing Job Descriptions:** - Base descriptions on actual duties and responsibilities - Use accurate titles and reflect FLSA status\* - Keep the summary concise - Ensure all functions are job-related - Include disclaimers - Use gender-neutral language and action verbs - Define acronyms - Regularly review and update descriptions **Essential Job Functions (applies to U.S)** Be sure to understand how to identify and define theEssential Job Functions, as defined by the Americans with Disabilities Act, because they are an integral part of any job and must be stipulated clearly. They are the absolutely necessary job functions that are core to the position and define its primary purpose and how they are defined has implications for ADA compliance, legal clarity and employee protection, not to mention that they are important for a number of HR processes. \*Legal requirements vary from region to region, the information here is based on regulations in the U.S. \* The Society for Human Resource Management (SHRM) has a toolkit to assist with preparing job descriptions which you can find at www.shrm.org \* The Fair Labour Standards Act (FLSA) is the federal regulation for employee working hours and pay standards in the U.S. It determines the exempt or non-exempt status of jobs and overtime requirements. Job Design ---------- Job design is the process of creating a job that motivates and rewards the employee but it must also enable the organization to achieve its goals - A well-designed job leads to more job satisfaction which means higher productivity and quality of work leading to lower rates of absence and turnover. - Four traditional job design strategies are used to create more meaningful roles for workers, but really intended to result in a more productive work environment. ### What is Job Design? Job design is concerned with enhancing jobs to increase performance which means reducing job dissatisfaction. This means balancing the organizations' need for workplace safety and employee efficiency with the ability of employees to perform their work effectively in a satisfying role **Job Characteristics Theory** Job Design is influenced by principles developed by organizational psychologists J. Richard Hackman and Greg Oldham. In 1980 they based their 1980 job design theory on five key characteristics that determine how satisfying a job is, Their Motivating Potential Score is based on how much a job offered any of the following: - **Skill Variety**: the degree to which a job requires a variety of different activities in carrying out the work - **Task Identity**: the degree to which the job requires completion of a whole, identifiable piece of work - **Task Significance**: the degree to which the job has a substantial impact on the lives of other people - **Autonomy**: the degree to which the job provides substantial freedom, independence, and discretion to the individual - **Feedback**: the degree to which carrying out the work activities required by the job provides the individual with direct and clear information Jobs with more of these characteristics were found to be more meaningful and motivating, leading to higher quality performance, more job satisfaction, and lower workplace absenteeism and job turnover. These characteristics informed **four key job design strategies** that Organizations can use to design jobs that lead to greater satisfaction and a healthier more productive work environment. They are: - **Job Enlargement:** Expanding the scope of a job by adding more tasks of a similar nature. - **Job Enrichment:** Making a job more challenging and rewarding by adding planning, control, and decision-making aspects. - **Job Rotation:** Moving employees between different tasks or positions to provide variety and develop new skills. - **Job Simplification:** Breaking down a complex job into smaller, more manageable tasks. \[Source:Lumen \] **Job Crafting** Job Design is not always a top-down process. An emerging trend is for employees to initiate their personal work design process to change the characteristics of their jobs to align better with their individual skills, needs and goals. These changes also lead to greater satisfaction and more engagement but require no input from management. \[SOURCE: [[What Job Crafting Looks Like by Jane E. Dutton and Amy Wrzesniewski]](https://hbr.org/2020/03/what-job-crafting-looks-like)\] **Getting into the flow** What is flow? According to Deloitte it is "An engrossing and enjoyable state of mind that occurs when people feel optimally challenged and are fully absorbed in their current activity." To meet productivity and engagement goals, workers should be given the tools, space, and freedom to get into a work rhythm. This also requires well-designed tasks that include - Clear instructions on how to complete the task that also develop worker skills. - The mental and physical space to complete the task with minimal distractions. - Clear expectations that challenge, but don't overwhelm, employees. - An understanding of the task's overall value to employees and the organization. - Enough flexibility for employees to be able to modify aspects of their tasks. - A feedback channel for managers to provide positive reinforcement. - Examples of success in terms of metrics defining quality and quantity outcomes. [[Source: ]](https://d1lzrgdbvkolkd.cloudfront.net/Designing_Work_for_Flow_1b33c3896d.pdf) Succession Planning and Talent Management ----------------------------------------- Talent management and succession planning enable organizations to adapt to changing business needs and market conditions by having a pool of skilled and adaptable employees ready to take on new challenges - Talent management is a broad HR practice that encompasses various strategies and activities aimed at attracting, developing, and retaining top talent - Succession planning is a specific component of talent management that focuses on identifying and preparing high-potential employees for future leadership roles. ### Talent Management Talent management is the goal-oriented and integrated process of selecting, recruiting, developing, managing, motivating and compensating employees. HR talent management is a coordinated set of processes and activities to identify, recruit, hire and develop high-performing employees to achieve competitive advantage for the organization. They include: - **Attracting Top Talent:** This involves developing a strong employer brand, crafting compelling job descriptions, and utilizing effective recruitment strategies to source and attract qualified candidates. - **Selection and Onboarding:** The selection process should identify individuals who possess the skills, experience, and cultural fit for the role. Effective onboarding programs help new hires integrate into the organization and become productive members of the team. - **Performance Management:** Setting clear goals, providing regular feedback, and offering opportunities for growth and development are crucial aspects of performance management. This helps employees understand their role, improve their performance, and stay engaged. - **Learning and Development:** Providing employees with opportunities to learn new skills and develop their careers is essential for talent retention. This can involve training programs, mentoring opportunities, and tuition reimbursement programs. - **Career Development:** Helping employees see a clear career path within the organization can increase their engagement and motivation. This can involve providing opportunities for internal mobility, promotions, and leadership development programs. - **Compensation and Benefits:** Offering competitive compensation and benefits packages is essential for attracting and retaining top talent. The book might discuss strategies for designing and implementing effective compensation and benefits programs that are aligned with employee needs and industry standards. - **Retention Strategies:** The book may discuss strategies to retain top talent, such as creating a positive work environment, fostering employee engagement, and recognizing and rewarding employees for their contributions. **Benefits of Talent Management:** - **Improved Performance:** Effective talent management practices can lead to a more skilled, engaged, and productive workforce. This can result in improved performance and increased profitability for the organization. - **Competitive Advantage:** Having a strong talent pool can give an organization a competitive advantage in the marketplace. - **Innovation and Creativity:** A diverse and well-developed workforce can foster innovation and creativity, leading to new ideas and solutions. - **Reduced Costs:** Effective talent management can help reduce costs associated with employee turnover and recruitment. **Replacement Charts for Talent Tracking and Succession Planning** Replacement charts are a graphic tool used by HR to keep track of high potential talent that can also be used to track succession planning. The difference between replacement and succession planning is that succession planning has a broader development objective to develop high potential individuals for positions in the organization. See image caption for link to alternative text. [[Replacement Chart Image (Lumen)]](https://trello.com/c/3udmXBsU) ### Succession Planning Succession planning is a proactive process that ensures the organization has qualified replacements ready to step into key positions when they become vacant due to retirement, resignation, promotion, or other reasons. Succession management processes are how HR identifies and develops future leaders within the organization. This might involve providing training and development opportunities, mentoring programs, and opportunities for high-potential employees to gain experience in different roles. Succession planning is a strategic move for organizations to ensure they have a pipeline of qualified talent ready to contribute to the organization\'s long-term success, and HRs role is to: 1. **Identify Key Positions:** The first step involves identifying critical roles within the organization that are essential for its success. These are positions that require specialized skills, experience, or leadership qualities. 2. **Assess Talent Pool:** HR assesses the current talent pool to identify potential successors for these key positions. This involves evaluating employees\' skills, experience, performance history, and potential for development. 3. **Develop Successors:** Once potential successors are identified, HR develops

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