Strategy and Human Resources Planning PDF

Strategy and Human Resources Planning Human capital readiness The process of evaluating the availability of critical talent in a company talent in a company and comparing it to the firm’s supply quantity and quality of employees required vs quantity and quality of employ...

Strategy and Human Resources Planning Human capital readiness The process of evaluating the availability of critical talent in a company talent in a company and comparing it to the firm’s supply quantity and quality of employees required vs quantity and quality of employees required The GAP *critical knowledge, skills and behaviors necessary to build core capabilities Assessing a Firm’s Human Capital Readiness: Gap Analysis 4. Formulating a Strategy SWOT Analysis a. Corporate Strategy - domain selection Growth and Diversification a. Increased employees productivity b. Greater number of employees c. Employees developing or acquiring new skills Mergers and Acquisition Strategic Alliances and joint Ventures b. Business Strategy - domain navigation Low-cost strategy : compete on productivity and efficiency CSF : efficiency, productivity and minimizing waste, economies of scale in production and distribution - manage labor cost – same workforce or less, but produce more; outsourcing (may result in lay-offs and transfers) but requires understanding of core processes and skills Differentiation strategy : Compete on Unique Value Added Compete : delivering high quality product, innovative feature, speed to market, superior service…. CSF : empower employees; instill cultural values c. Functional Strategy : Ensuring Alignment Translate strategic priorities to functional areas in the organization Vertical Fit/Alignment Capabilities of employees are aligned with value proposition Ex. Domino pizza: 30 minutes or free Horizontal Fit/Alignment Need to ensure that their HR practices are all aligned with one another internally; a configuration that is reinforcing; same objectives Ex. Teamwork vs. individual high flyers? 5. Implementing a Firm’s Strategy Gap: strategy execution problem The need to “translate” strategic priorities into functional areas of the organization  HRs role in strategy implementation is to reconcile 1. Human resource demand 2. Human Resources available a. Taking Action : Reconciling supply and Demand Strive for a proper balance between demand considerations and supply considerations Meeting HR Demand Staffing options : recruiting, hiring full-time employees, reducing turn- over, having employees work-overtime , recalling laid-off workers, using temporary or contract employees, outsourcing or off-shoring Offerings: flexible scheduling, health care,… Labor Shortage: develop talent from ground up; OJT students Surplus of employees Restrict hiring, reduce employees’ work hour, furlough, lay-offs, across the board cuts (in lieu of lay-offs), rely on attrition “sweetened” retirement benefits Lay-offs : seniority or performance Downsizing : ensure no laws are violated; comply with other government provisions – workers and family provided with temporary health care coverage at group rates 6. Evaluation Assessing a firm’s effectiveness; a final step in the planning process but also a first step a. Evaluation and Assessment issues Establish a set of “desired” objectives and the metrics to be used to monitor Benchmarking – the process of looking at your practices and performance in a given area and then comparing them with those of other companies  HR Metrics 1. Human capital metrics - assess workforce 2. HR metrics - assess performance b. Measuring a firm’s alignment Strategy Mapping and Balanced Scorecard BSC (Kaplan and Norton) - Translates strategic goals into operational objectives 1. Financial 2. Customer 3. Processes 4. Learning Measuring Horizontal Fit -scale : - 5 not supportive and 5 supportive Building the Metrics Model c. Ensuring strategic flexibility for the future Organizational capability The capacity of the organization to act and change in pursuit of sustainable competitive advantage Flexibility : 1. Coordination Flexibility – rapidly reallocate resources to new or changing needs (retrain, modify incentives..) 2. Resource Flexibility – having resources used in different ways and people who can perform different functions in different ways (cross- training, rotating into different jobs)