Strategic HR Management and Planning.

        

    Strategic HR Management and Planning 

Figure 01:  Strategic Human Resource Planning Process By Dr.Soniya Yadwadkar 

What is Strategic Human Resource Planning?

As said “well begun is half done” and the beginning of anything great starts with excellent planning as planning is the initial step in the area of management. To manage everything well in any organization, the key factor is to plan everything perfectly. Since human assets are the most precious assets in the organization based on whom the journey of success starts so planning them well becomes even more essential, and this prospective approach for the human resources is called Strategic Human Resource Planning.

• Strategic HR planning is an essential component of HR management.. Organizations regularly complete financial plans to ensure they achieve organizational goals, and while workforce plans are not as common. It is defined as “Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders. It links human resource management to the overall strategic plan of an organization. Strategic HR planning is a process that helps an organization to identify current and future human resources needs to achieve the end goals.

   The importance of strategic HR planning process

A human resource (HR) strategic plan is a business's comprehensive approach to managing its people in alignment with its objectives. This plan guides the fundamental processes of the HR department, including recruitment, performance reviews, career development and remuneration. Understanding the importance of an HR strategic plan and how to create one can help  excel in an HR role. Some key importance of strategic HR planning are as follow;

 Predicting HR needs

A business that fully understands its current and future human resource requirements can be in a sound position to optimize its present HR situation and plan appropriately for its potential future HR situations.

Enhancing productivity

• HR strategic plans help put the right people in the right roles, which can boost efficiency and create higher levels of business productivity. HR strategic plans are also significant in the promotion of employee satisfaction because they help a business devise the necessary requirements for meeting its employees' needs

Increasing retention

• Strategic HR planning often focuses on employee engagement. There's usually a direct correlation between employee engagement and employee retention. HR strategic planning also allows a business to establish pathways for talented employees to follow to develop their careers within the business.

Optimizing performance

• An effective strategic plan requires ongoing monitoring and tracking. The continual visibility that this ongoing monitoring and tracking offers can help a business clearly identify the parts of its human resources that work and the parts that don't.

Reducing costs

• Predictable HR requirements, enhanced productivity, increased retention and optimized performance are all factors that can help a business reduce its costs. When a business can predict its HR needs and optimize performance, it can have the right people in the right roles working the right shifts.

4 Key Steps to Strategic Human Resources Planning 

Figure 02: 4 key stages of Human Resource Planning By Dr. Soniya

1.Valuating HR Capacity:

 Prior to initiating any hiring process, it’s crucial to identify the talent employee have at disposal. This can be achieved by building a well-defined skill inventory for your existing employees. Identifying the skills, talent, and knowledge of your employees will help you gather insights about the current potentialities and the existing gaps. The desired info is garnered through employee questionnaires or reviews or a combination of both. 

2.Estimating HR Requirements:

 Once we are aware of the potential resources at your disposal, it’s time to estimate the future requirements. It’s important to evaluate the company’s demand for qualified talent and supply of such resources either from within the organization or from outside.

• Demand Forecasting: This will entail the number and types of talents required to meet the company’s present and future requirements.

• Supply Forecasting: Here the company will look for the availability of skills that cannot be augmented by the existing employees.

• Balancing the Demand and Supply Gap: Filling the demand and supply gap is a challenging task that needs to be addressed deftly. A balance can be drawn by adopting measures like training the existing employees or hiring new talent or simply combining the two approaches.

3. Implementing Human Resource Action Plan: 

 The HR  process or action plan is determined according to the deficit or surplus of resources in the organization. Accordingly, plans can be implemented for new recruitment, training, and transfers in case of deficit or voluntary retirement schemes and redeployment in case of surplus.  

4. Monitoring and Evaluation: 

 This involves monitoring the efficacy of the human resource action plan. HR plans need to be updated regularly to adapt to changing market trends and organizational needs. At regular intervals, you can review and re-evaluate the existing HR management system process.

Conclusion: 

Strategic human resource planning forms the very foundation of the organization’s working system that aims at aligning human resources with the company’s goals. It is the continuous process of systematic planning that facilitates optimum use of an organization’s most valuable asset- qualified employees.

References:

5 reasons why a human resource strategic plan is importatnt [online] available at:https://au.indeed.com/career-advice/career-development/human-resource-strategic-plan [Accessed at:24th Apr.2023]

 

4 Key Steps to Strategic Human Resources Planning [online] available at:  https://www.cerveausys.com/blog/4-key-steps-strategic-human-resources-planning/  [Accessed at:24th Apr.2023]

 

 Devanna, M.A., Fombrun, C., Tichy, N. and Warren, L., 1982. Strategic planning and human resource management. Human Resource Management, 21(1), pp.11-17.

              

  Tichy, N.M., 1981. Strategic human resource management.

      Armstrong, M., 2011. Armstrong's handbook of strategic human resource management. Kogan Page Publishers.

 

        Lundy, O., 1994. From personnel management to strategic human resource                            management. International Journal of Human Resource Management, 5(3), pp.687-720.