Chapter 2 :

1. Chapter 2: Strategic HR Management and Planning

2. Introduction • What is strategy ? • Why we need strategy/strategies in managing HR? • What are the characteristics of SHRM

3. SHRM • Strategy helps organisations to compete as well as enable them to survive or grow better • SHRM should be responsible to lead or drive people within the organisation to achieve the overall objectives • Therefore, Strategic HR management refers to the use of employees to gain or maintain CA.

4. SHRM must • Have the right people in the right place and at the right time • Must move beyond the administrative and legally mandates • become more sensitive to the changes (scanning the environment) • Be able to make people add value and improve business performance • Have sufficient measurement (metrics) to value the human capital

5. SHRM Process • Figure 2.1

6. How to make strategizing HR successful • 3 ways; • Operationalizing HR • Using HR as a core competency • Organizational culture & HR

7. The Nature of Strategy and HR Management (Contd.) • OperationalizingHR Strategy • HR strategies will need to • Understand the business • Focus on key business goals • Know what to measure • Prepare for the future

8. The Nature of Strategy and HR Management (Contd.) • Using Human Resources as a Core Competency

9. The Nature of Strategy and HR Management (Contd.) • Organizational Culture and HR • HR must keep in mind the climate experienced by employees and managers in the day-to-day and longer-term activities • Culture is important because it tells people how to behave. • Managers must aware whether the organisation is practicing a positive culture or culture that can threaten and challenges the organisation

10. HR as an Organizational Contributor • As HR involve identify people CA, they need to ensure the contribution in terms of productivity, service and quality as well as financial contribution

11. HR as an Organizational Contributor (Contd.) • HR-related competencies can be seen in the following three areas: • Organizational Productivity • Organizational restructuring • Re-designing work • Aligning HR activities with organizational efforts • Outsourcing analyses

12. HR as an Organizational Contributor (Contd.) 2. Customer Service and Quality Linked to HR Strategies • HR needs to consider what customers are looking for 3. HR Effectiveness and Financial Performance • HR needs to consider the ROI (return on investment) of its programs

13. Class Activity 1 • Work in a group. • How the company or organisation use the HR to • Improve productivity • Improve service and quality • Improve financial performance

14. Global Competitiveness and Strategic HR • Types of Global Organizations • Importing and Exporting (travel policy to a foreign country) • Multi-National Enterprises (adapting to foreign practices) • Global Organization (integrating to create a global mindset) • How SHRM can become more GLOBAL?

15. Global Competitiveness and Strategic HR (Contd.) Incorporating and understanding of • Global Legal and Political Factors • Political and legal landscape change at a different pace from one country to another • Global Cultural Factors • Global Economic Factors • Wage rates differ across countries but a lower wage rate in a country may not mean employees do not enjoy good working conditions and living standards

16. Global Competitiveness and Strategic HR (Contd.)

17. Human Resource Planning • Human resource planning is a process of analysing and identifying the needs and availability of HR so that organizational objectives can be met • Line managers and HR staff must work together to make HR planning work • To do right HR planning, we need plenty of time and effort…it can’t be done in short time. • The HR Planning Process: Figure 2-7 shows a logical flow chart to guide decision makers through a systematic HR planning process

18. HR planning process • What are the comp. obj? • Analysed the needs and supply of sources; internally or externally. • Internally, checked at our own HRMS • Mgmt formulate HR strategies & plans to fill the vacancies

19. Human Resource Planning (cont) • HR planning process

20. Scanning the External Environment • Government Influences • Economic Conditions • Geographical and Competition Concerns • Workforce Composition • When scanning the workforce we need to consider: • Aging of the workforce • Growing diversity of workforce • Women worker • Availability of contingent workforce • Outsourcing possibilities

21. Class discussion: Scanning the environment • When we want to plan for HR, we must scan the environment to help us identify the opportunities and threats. Based on these major factors, discuss and describe how they can affect HR decision. • Government influence • Economic condition • Global competition • Workforce diversity • Technological advance • Employee expectation

22. Human Resource Planning (Contd.) • Forecasting HR Supply and Demand • Judgmental or mathematical • Quantitative + subjective judgment • Three Planning Periods • Short range (within 1 year) • Intermediate range (1-3 years) • Long range (beyond 3 years)

23. Example • Guardian drugstore: strategy: every new store must at least have 2@3 pharmacists, a manager and customer service employees. • Challenges • to make sure the pharmacist are available throughout their opening hours. • The pharmacist are able to give satisfied service to the customers • To make sure no short supply of staff at the store • The pharmacist may need to work at different hours and facing different kind of customers who their demand are different when they go to hospital or clinics • To replace those staff who left or retired

24. Human Resource Planning (Contd.) • Forecasting the Demand for Human Resources • Entire organization and individual units • Chain effects must be considered if internal promotions and transfers are used to fill job openings • Forecasting the Supply of Human Resources • External supply • Migration • New labor market entrants • Output from schools and colleges • Workforce composition changes • Economic outlook • Technological changes • Competing employers’ actions • Government regulations and pressures

25. Workforce Realignment