The Link Between Strategic Planning and Human Resource Planning, Essay Example

Introduction

Human Resources (HR) are an influential foundation to any organization.  The area generallyconsists of planning, and executing and evaluating activities within the business.  More specifically however, strategic HR planning is a vitalelementin strategic Human Resources management. This areaconnects HR management to the overall strategic development plan of the business or organization.This important component of the organizational development includes evaluating the current HR capacity, predicting HR requirements, gap analysis, and developing HR strategies to support organizational strategies; all while managing and staffing productive employees.

Most companies, including small organizations with as little as ten or so employees, implement a strategic plan that directs them in successfully meeting goals and objectives.  “Organizations routinely complete financial plans to ensure they achieve organizational goals and while workforce plans are not as common, they are just as important” (HR Council, 2014).Establishedaround the company’s overall strategic plan, Human Resources can then create a strategic HR plan.  The strategic Human Resources plan will support HR management decisions thatpromote the future and success of the organization.

Strategic Human Resources planning is likewisesignificantfor a business’s budget and financial goals.  Strategic planning can weigh the prices of recruiting new employees, types of training, hiring, rewarding, etc. into theoverall budget of the company (Soberg, 2011).This type of strategic planning incorporates Human Resource management plans and methodsin order to attain the generalcalling, tactics, and achievement of the company while connecting the necessities of employees and other participants and shareholders.

Strategic HR Planning

Integral in the success of any business and organization are the detailed four steps of the strategic Human Resources planning.  Following these essential strategic HR steps will ensure that an organization meets goals and operates efficiently and successfully.  This type of HR planning comprises ofevaluating the current HR capacity, predicting HR requirements, gap analysis, and creating HR strategies in order to support the organizational strategies(HR Council, 2014).

Assessing the Current HR Capacity

The first steps of the process include managing and staffing employees to ensure the overall success of the company.  The HR strategic planning stems from the organization’s broader plans and objectives.  Therefore, the initialstage in the strategic Human Resource planning procedure is to assess the current HR capacity of the company.  During this process the competency levels, skills and capabilitiesare identified among the current staff(Plunkett, Attner, & Allen, 2007).

Assessing HR capacity can be completedthroughthe development of a skills inventory for every staffed employee.  The inventory itself should reachoutside the skills necessary for the employee’sspecific position.The HR Council suggests, “List all skills each employee has demonstrated. For example, recreational or volunteer activities may involve special skills that could be relevant to the organization. Education levels and certificates or additional training should also be included” (2014).  During the assessment process, an employee’s performance evaluationmayalso be consideredin order to decide if the employee is prepared and eager to accept new responsibilities andto study the employee’s current development intentions and gauge growth within the organization.

Forecasting HR Needs

The following step in strategic HR planning is to forecast and predict HR requirements for the future.  This is determinedby the overall strategic ambitions of the company. The forecasting of HRincludespredicting and appraisingsupply and demand within the organization.

Some important questions that should be answered during this step include:  “How many employeesare needed in order to achieve the strategic goals and plans of the organization?”“What jobs need to be filled in order to meet the goals of the organization?”“What skill sets will employees within the organization require in order to meet the broader goals of the company?”

Furthermore, whilepredicting and determining the demands for Human Resources, individuals should also evaluate the challenges influenced by factors outside of the company.

Some questions to be asked while determining external influences include:  “Does the current economy impactthe organization’s work and theaptitude to attract new employees?”“How doestechnologyand cultural shifts influence the way the company operates and how does that influence the labor and staff required?”“What shifts are occurring within the labor market?”“How is the community transforming over time?”

Eight Elements of the Staffing Process

According to assessing and forecasting within HR, staffing is an important factor in the strategic development and planning of the organization.  The primary purposes of staffing are attracting, training, developing, hiring, retaining, and rewarding.  Furthermore, there are eight essential elements included in the staffing process, which are all crucial in the success of any organization.

The eight elements of the staffing process include human resource planning; recruitingqualified employees from inside and outside of the company; employee selection through testing and interviewing candidates and hiring the best; orientation in which new employees learn about their new work environment; training and development; performance appraisal and establishing the criteria for evaluating performance; compensation in which pay, benefits, and incentives are established; and employment decisions such as transfers, promotions, demotions, layoffs and firings(Plunkett, Attner, & Allen, 2007).

Gap Analysis

The followingstage in strategic HR planning is determining the space between where the organization is at the current moment and where it should be in the future.  The gap analysis comprises ofpinpointing the amount of staff and the abilities and skills required in order to meet the demands of the future company. This step also includesevaluatingthe organization’s HR management procedures in order to detectmethods that could be improved or added in order to support the organization’s forward progression.

Questions to be answered during this step in the process include:“What new jobs will be needed?”“What new skills are required?”“Do thecurrent employees have thesenecessary skills?”“Are employees in positions that best utilize strengths and skills?”“Are there currently enough managers for meeting the organization’s future goals?”“Are the current HR management proceduressatisfactory for the future needs of the company?”

Developing HR Strategies

The final stage in strategic HR planning involves developing Human Resource strategies.  This comprises of five HR strategies for meeting the organization’s requirements in the future.  These strategies are: restructuring strategies, training and development strategies, recruitment strategies, outsourcing strategies, and collaboration strategies.

Conclusion

Every organization, both large and small, can benefit from a strategic HR plan.  This strategic HR planning is essential in strategic Human Resources management.  Itis the point in which HR management is connected to the overall strategic development plan of the business or organization.  It is a significant component of the organizational development, and includesevaluating the current HR capacity, predicting HR requirements, gap analysis, and developing HR strategies to support organizational strategies; all while managing and staffing productive employees.  Without strategic HR planning, organizations risk ultimate failure and defeat.

References

HR Council. (2014, May 5). HR Planning . Retrieved from HR Council: http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm

Plunkett, W. R., Attner, R. F., & Allen, G. S. (2007). Management: Meeting and Exceeding Customer Expectations. Mason, OH: Thomson Higher Education.

Soberg, A. (2011, February 14). The Link Between Strategic Planning and Human Resource Planning. Retrieved from HR Voice: http://www.hrvoice.org/the-link-between-strategic-planning-and-human-resource-planning/