chapter 5: managing hr planning for strategic change jackson and schuler 2003 south-western college...
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© 2003 South-Western College Publishing. All rights reserved.5–35–3 The Strategic Importance of HR Planning To succeed under new competitive conditions, companies change vision, values, structure, strategy and corporate culture Changes in HR policies and practices encourage and support behaviors needed for organizational changeTRANSCRIPT
Chapter 5:Chapter 5:
Managing HR Planning forManaging HR Planning forStrategic ChangeStrategic Change
Jackson and SchulerJackson and Schuler
© 2003 South-Western College Publishing. All rights reserved.
Eighth editionEighth edition
Managing Human Managing Human ResourcesResources
© 2003 South-Western College Publishing. All rights reserved. 5–2
Chapter OutlineChapter Outline
The Strategic Importance of HR PlanningThe Strategic Importance of HR Planning A Framework for Understanding HR PlanningA Framework for Understanding HR Planning Assessing the Global and Organizational Assessing the Global and Organizational
EnvironmentEnvironment Specifying the Objectives for a Change EffortSpecifying the Objectives for a Change Effort Developing the HR Plan, Measurements, and Developing the HR Plan, Measurements, and
TimetablesTimetables Implementing the Plans for Strategic ChangeImplementing the Plans for Strategic Change Review, Revise, and RefocusReview, Revise, and Refocus
© 2003 South-Western College Publishing. All rights reserved. 5–3
The Strategic Importance of HR The Strategic Importance of HR PlanningPlanning
To succeed under new competitive To succeed under new competitive conditions, companies change vision, conditions, companies change vision, values, structure, strategy and values, structure, strategy and corporate culturecorporate culture
Changes in HR policies and practices Changes in HR policies and practices encourage and support behaviors encourage and support behaviors needed for organizational changeneeded for organizational change
© 2003 South-Western College Publishing. All rights reserved. 5–4
Strategic ChangeStrategic Change
Major transformations in the structure, size, or Major transformations in the structure, size, or functioning of an organization for the purpose functioning of an organization for the purpose of achieving strategic objectivesof achieving strategic objectives
Degree of Change:Degree of Change: Radical changeRadical change
• Major adjustments in the Major adjustments in the ways a firm does businessways a firm does business
Incremental change: Incremental change: • Evolution over timeEvolution over time• Many small routine changesMany small routine changes
© 2003 South-Western College Publishing. All rights reserved. 5–5
Timing of ChangeTiming of Change
Reactive Change: Reactive Change: Responding to changes in the external or Responding to changes in the external or
internal environment.internal environment. Anticipatory ChangeAnticipatory Change
Looking for better ways to stay Looking for better ways to stay ahead of the competition.ahead of the competition.
© 2003 South-Western College Publishing. All rights reserved. 5–6
Framework for Understanding HR Framework for Understanding HR PlanningPlanning
ImplementPlans
HR Planning for
Strat egic Chan ge
Assess Global and Organizational Environment.
Participate in Assessing Global and Organizational Environment
Specify Strategic Objectives for Change Efforts
Review, Revise, Refocus
Develop HR Plans, Measurements, Timetables
Stra
tegi
c Bu
s ine
s s
Plan
ning
Specify Objectivesof HR Change Efforts
Develop Plans for Strategic Change
© 2003 South-Western College Publishing. All rights reserved. 5–7
Elements of HR PlanningElements of HR Planning Objectives are quantitative and qualitativeObjectives are quantitative and qualitative
Historically, HR was only involved in getting the Historically, HR was only involved in getting the right people available at the right time and place.right people available at the right time and place.
Today HR Planning is more strategic and includes Today HR Planning is more strategic and includes scenario planning:scenario planning:
• Mission and value statementsMission and value statements• Helping others to change and adaptHelping others to change and adapt• Ensuring the firm has the competencies it needsEnsuring the firm has the competencies it needs• Addressing concerns of multiple stakeholdersAddressing concerns of multiple stakeholders• Monitoring effects of changeMonitoring effects of change• Integrating HRM with other operationsIntegrating HRM with other operations
© 2003 South-Western College Publishing. All rights reserved. 5–8
Assessing the Global EnvironmentAssessing the Global Environment Economic and political trendsEconomic and political trends Industry trendsIndustry trends TechnologyTechnology Labor marketsLabor markets National and regional culturesNational and regional cultures Laws and regulationsLaws and regulations Unions and labor relationsUnions and labor relations
© 2003 South-Western College Publishing. All rights reserved. 5–9
Organizational AnalysisOrganizational Analysis HR ForecastsHR Forecasts
Estimates of the firm’s future human Estimates of the firm’s future human resource needsresource needs
Judgmental forecastsJudgmental forecasts• Informed experts predict business trendsInformed experts predict business trends
Statistical forecastsStatistical forecasts• Using historical data Using historical data
to predict the futureto predict the future
© 2003 South-Western College Publishing. All rights reserved. 5–10
Behavioral Cause-and-Effect ModelsBehavioral Cause-and-Effect Models Provide insight into Provide insight into
why employees why employees behave as they dobehave as they do
Identify the business Identify the business consequences of consequences of employee behaviorsemployee behaviors
Strategy maps: Strategy maps: Show cause-effectShow cause-effect Show connection Show connection
between HRM and between HRM and strategic successstrategic success
© 2003 South-Western College Publishing. All rights reserved. 5–11
Employee OpinionsEmployee Opinions
Important part of Important part of organizational organizational analysisanalysis
Employee surveys Employee surveys are often usedare often used
Ask about problems Ask about problems and potential and potential solutionssolutions
© 2003 South-Western College Publishing. All rights reserved. 5–12
Specifying the Objectives forSpecifying the Objectives fora Change Efforta Change Effort
Successful change is guided by clear Successful change is guided by clear objectives.objectives.
Objectives flow from corporate Objectives flow from corporate and business strategies.and business strategies.
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Specifying Objectives for ChangeSpecifying Objectives for Change Involving EmployeesInvolving Employees
Task forcesTask forces Focus groupsFocus groups SurveysSurveys Hot linesHot lines Informal conversationsInformal conversations
Action learningAction learning Involve employees in environmental Involve employees in environmental
assessment and problem solvingassessment and problem solving
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Specifying Objectives for Change Specifying Objectives for Change (cont’d)(cont’d)
AccountabilityAccountability Specifying who is responsible for making Specifying who is responsible for making
needed changesneeded changes HRM systems can hold people accountable HRM systems can hold people accountable
for change effortsfor change efforts• Performance measurement systemsPerformance measurement systems• Incentive pay and bonus systemsIncentive pay and bonus systems
© 2003 South-Western College Publishing. All rights reserved. 5–15
HRM Link to Business ObjectivesHRM Link to Business Objectives
Business objectives Business objectives focus attention on:focus attention on: Number of Number of
employees needed employees needed for growth or declinefor growth or decline
Required Required competencies and competencies and behaviorsbehaviors
Required levels of Required levels of productivity productivity
© 2003 South-Western College Publishing. All rights reserved. 5–16
Developing the HR Plan, Developing the HR Plan, Measurements, and TimetablesMeasurements, and Timetables
The HR strategic plan The HR strategic plan May be prepared for the functional area of May be prepared for the functional area of
HRMHRM May be addressed within a division’s May be addressed within a division’s
strategic plan. strategic plan.
© 2003 South-Western College Publishing. All rights reserved. 5–17
Considering AlternativesConsidering Alternatives
There are alternative ways to achieve There are alternative ways to achieve strategic objectives. For example, possible strategic objectives. For example, possible solutions to a labor shortage include:solutions to a labor shortage include: Raising base wagesRaising base wages Reducing turnoverReducing turnover Implementing new technologiesImplementing new technologies Utilizing foreign labor marketsUtilizing foreign labor markets
© 2003 South-Western College Publishing. All rights reserved. 5–18
Staffing Plans: Ensuring SupplyStaffing Plans: Ensuring SupplyMatches DemandMatches Demand
Succession PlanningSuccession Planning Ensures key positions can be Ensures key positions can be
filled when vacancies occurfilled when vacancies occur Talent PoolTalent Pool
A list of employees with high A list of employees with high potential for advancementpotential for advancement
Replacement ChartsReplacement Charts Lists of key jobs, incumbents Lists of key jobs, incumbents
and names from employee and names from employee talent pooltalent pool
© 2003 South-Western College Publishing. All rights reserved. 5–19
Additional Components of the HR Additional Components of the HR PlanPlan
Training PlansTraining Plans Leadership Development PlansLeadership Development Plans Plans for Changes in BenefitsPlans for Changes in Benefits
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Measuring Progress TowardMeasuring Progress TowardHRM ObjectivesHRM Objectives
Recruitment Yield RatesRecruitment Yield Rates First-pass (% of resumes leading to First-pass (% of resumes leading to
interviews)interviews) Second-pass (% of interviews resulting in Second-pass (% of interviews resulting in
offersoffers Offer Acceptance RatesOffer Acceptance Rates Customer SatisfactionCustomer Satisfaction IntangiblesIntangibles
Knowledge and learningKnowledge and learning
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Measuring Progress TowardMeasuring Progress TowardHRM Objectives (cont’d)HRM Objectives (cont’d)
TimetablesTimetables Deadlines and check points keep change Deadlines and check points keep change
movingmoving Realistic expectations are importantRealistic expectations are important
© 2003 South-Western College Publishing. All rights reserved. 5–22
Implementing the Plans forImplementing the Plans forStrategic ChangeStrategic Change
Reasons for Resistance to ChangeReasons for Resistance to Change FearFear MisunderstandingsMisunderstandings CynicismCynicism
Forms of Resistance to Forms of Resistance to ChangeChange CriticismCriticism Malicious complianceMalicious compliance SabotageSabotage SilenceSilence
© 2003 South-Western College Publishing. All rights reserved. 5–23
Implementing the Plans forImplementing the Plans forStrategic Change (cont’d)Strategic Change (cont’d)
Setting the Stage for Successful Setting the Stage for Successful Implementation of Change:Implementation of Change: Employee involvementEmployee involvement Two-way communicationTwo-way communication EmpowermentEmpowerment
© 2003 South-Western College Publishing. All rights reserved. 5–24
Creating Readiness for ChangeCreating Readiness for Change
Developing a pro-learning orientation among Developing a pro-learning orientation among employeesemployees Opportunities for problem solvingOpportunities for problem solving Information on organizational success and Information on organizational success and
failuresfailures Information on customer preferences and Information on customer preferences and
evaluationsevaluations Small-scale experimentationSmall-scale experimentation
© 2003 South-Western College Publishing. All rights reserved. 5–25
Creating Readiness for Change Creating Readiness for Change (cont’d)(cont’d)
Develop a resilient Develop a resilient workforceworkforce Hire and promote Hire and promote
based on resiliencebased on resilience Educate about Educate about
changechange Train to reduce Train to reduce
resistanceresistance Celebrate successful Celebrate successful
change effortschange efforts
© 2003 South-Western College Publishing. All rights reserved. 5–26
Creating Readiness for Change Creating Readiness for Change (cont’d)(cont’d)
Build the architecture to Build the architecture to support change initiativessupport change initiatives Record and use lessons Record and use lessons
learnedlearned Train in structured Train in structured
approachesapproaches Create opportunities for Create opportunities for
cross-functional cross-functional teamworkteamwork
Identify key performance Identify key performance measuresmeasures
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Review, Revise, and RefocusReview, Revise, and Refocus
The success of products and services offered The success of products and services offered in the internal marketplace should be in the internal marketplace should be monitored.monitored.
Human resource information management Human resource information management system (HRIM) provides the means for system (HRIM) provides the means for collection and dissemination of evaluation collection and dissemination of evaluation data.data.
Make sure there are “short-term wins” to Make sure there are “short-term wins” to celebrate.celebrate.
© 2003 South-Western College Publishing. All rights reserved. 5–28
Line Managers• Model effective learning and change
• Provide info and forecast labor needs
• Help evaluate alternatives
• Work with HR on objectives and plans
• Collaborate to collect data
• Communicate constantly
HR Professionals• Facilitate change; help others
• Mange HR planning
• Facilitate discussions about alternatives
• Develop HR change objectives, plans, and measures
• Assess HR progress
• Communicate HR changes and respond to questions
Employees• Develop personal capacity for frequent change
• Participate in generating and evaluating alternatives
• Provide input to HR plans, measures, and timetables
• Take personal responsibility
Roles and Responsibilities for HR Roles and Responsibilities for HR Planning and Strategic ChangePlanning and Strategic Change