hrm -- strategic human resource management[1]
TRANSCRIPT
Strategic Human Strategic Human Resource Management Resource Management
HOW TO DEVELOP AN HR PLAN
By : Marsha Thomas-Frederick
WORKFORCE ANALYSIS SPECIALIST
HR PLAN SPECIALIST
2010:09:22
What is Strategic HRM?What is Strategic HRM?
Strategic Human Resource Management (HRM) is the
shaping of the workforce around the organisation’s business needs
and managing the behavioural changes to match the desired
environmental goals.
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What is Strategic HRM?What is Strategic HRM?
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Change in HRMChange in HRM
TRADITIONAL HR STRATEGIC HR
Reactive Proactive
Employee advocate Business partner
Task focus Task/enablement focus
Operational issues Strategic issues
Qualitative measures Quantitative measures
Stability Constant change
How? (tactical) Why? (strategic)
Functional integrity Multi-functional
People as expenses People as assets
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Holbeche, 2001, p. 5
Change in HRMChange in HRM
TRADITIONAL HR STRATEGIC HR
Focus Employee relations Partnerships with internal and external customers
Role of HR Transactional, change follower and respondent
Transformational, change leader and initiator
Initiatives Tactical, reactive, fragmented Fast, proactive, integrated
Time horizon Short-term Short, medium, long (as necessary)
Control Bureaucratic-roles, policies, procedures
Organic, flexible, holistic
Job design Tight division of labour, independence, specialization
Broad, flexible, cross-training, rotational
Key investments Capital, products People, knowledge
Accountability Cost center Investment center
5Strategic Human Capital management MERCER-SBF-SMU Executive Programme
Change in HRMChange in HRMROLE DELIVERABLE/OUTCOME METAPHOR ACTIVITY
Management of Strategic
HR
Executing Strategy Strategic partner Aligning HR and
business strategy
‘organisational
diagnosis’
Management of firm
infrastructure
Building an efficient
infrastructure
Administrative Expert Re-engineering
organisational
processes ‘shared
services’
Management of employee
contribution
Increasing employee
commitment and capability
Employee champion Listening and
responding to
employees ‘providing
resources to
employees’
Management of
transformation and change
Creating a renewed
organisation
Change agent Managing
transformation and
change ‘ensuring
capacity for change’
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Ulrich, 1997, p.25
Key issuesKey issues1. What are the key components of
the strategic direction of the organisation?
2. What is the vision, mission and core values of the organisation and each department and section?
3. What Key Result Areas (KRAs) and or Key Performance Indicators (KPIs) the organisation has to achieve?
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Situational/SWOT Analysis Situational/SWOT Analysis
Situation Analysis
Internal Analysis
Strengths Weaknesses
SWOT Profile
External Analysis
Opportunities Threats
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Sources of Sources of Primary/Secondary DataPrimary/Secondary DataOrganisation’s Strategies - Strategic Plan - Budget Estimates - Key organisational documents,
speeches etc. - Interviews with key stakeholders
Organization's KRAs and KPIs - Strategic Plan - Performance Appraisal forms - Key organisational documents - Interviews with key stakeholders 9
Overarching HR Overarching HR FrameworkFramework
Competency MethodologyA Competency can be defined as certain underlying characteristics which a person possesses which will enable him/her to deliver superior performance in a position. These underlying characteristics are of two types;
Threshold CompetenciesDifferentiating Competencies
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Competency Methodology Competency Methodology c’tdc’tdThreshold or technical competencies are
the characteristics which any jobholder needs in order to do a job effectively, such as qualifications and experience
Differentiating competencies are those characteristics that superior performers have but are not present in average performers. These are displayed by attitudes and behaviours exhibited.
The ideal employee would have both types of competencies; hence they would be able to perform at their best since they possess the knowledge, skills, abilities, attitudes and behaviours necessary to perform any task, activity or career.
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Competency Methodology Competency Methodology c’tdc’td
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How to develop the HR How to develop the HR Plan?Plan?
Step 1: Select a Model to Guide the
Process
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Why use a Model?Why use a Model?A model an abstract representation of
reality, so it shows the outcome of the process from the beginning.
It is a guide which allows one to focus on the main aspects of a phenomenon
It allows for the physical manifestation of a visionary concept.
It allows one to know and understand the subject matter at hand.
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How to develop the HR How to develop the HR Plan?Plan?
Step 2: Conduct a Workforce Analysis
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What is a Workforce What is a Workforce Analysis?Analysis?
Workforce Analysis (WFA) is a systematic process whereby an
organization identifies the human capital required to meet
organisational goals in the present and to determine whether the
organization possesses the talent necessary for optimal functioning in
the future
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What is a Workforce Analysis What is a Workforce Analysis c’tdc’td??It requires an understanding of the
make-up of the current workforce and an investigation into the future workforce.
It determines the knowledge, skills, abilities, experience and numbers required at present, where and when they will be needed, and forecasts future labour market needs.
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Understanding Workforce Understanding Workforce CompositionComposition
What your workforce looked like before
What your workforce looks like now
What your workforce will look like in the
future
Why do Workforce Analysis?Why do Workforce Analysis?
WORKFORCE ANALYSIS
Strategic HR
RetentionRestructurin
g
Training
Recruitment
EmployeeEngageme
nt
Talent Manageme
nt
How to do a Workforce How to do a Workforce Analysis?Analysis?It involves three distinct phases:
1. Supply Analysis2.Demand (or Needs) Analysis 3.Gap Analysis
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How to do a Workforce How to do a Workforce Analysis Analysis c’tdc’td??
Phase I—Supply Analysis: Evaluating the Current Resources
This phase is generally the easiest because much of the information has been collected already somewhere in the organization.
Evaluating current employee and demographic data will help identify future needs as well as a projected workforce strategy
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How to do a Workforce How to do a Workforce Analysis Analysis c’tdc’td??Below is a list of the kind of data you will need and some
potential sources of it.
Existing Employee Data. - Most of the employee data is available to authorized
users through the HRIS
What are the demographics of your current workforce? (Gender, ethnic, disabled, full/part time, classified/LTE, etc.)
How many people are performing each job? Where are the jobs located? What is the employee/supervisor ratio? What are the pay rates of current employees? What is the likelihood of attrition through retirements? How many people have left the organisation and where
did they go? How many people have we been recruiting? Which jobs have the most/least people and why?
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How to do a Workforce How to do a Workforce Analysis Analysis c’tdc’td??Phase II—Demand Analysis:
Evaluating the Future Needs
To assess future needs, determine the answers to the following questions:
How essential is each job? What job functions, if any, could be consolidated? How many people are needed in the future to
perform each job? What knowledge, skills, competencies and abilities
(KSA) are needed to perform anticipated job functions?
What technology changes will be made? What processes could be done more efficiently or
effectively ?23
How to do a Workforce How to do a Workforce Analysis Analysis c’tdc’td??
Phase III—Gap Analysis: Comparing Supply and Demand
This phase can be completed in a fairly straightforward manner. Simply take the demand analysis results and match them to your supply results. Any mismatches indicate either a projected unmet need or a surplus, either of which presents a challenge.
To fill the gaps between current resources and future needs, use the results of the other core components of your workforce analysis to craft possible solutions. 24
ANALYSIS DATA SOURCES STATUS CHECKS METHODS
Demand Forecast Budget, projected labour outlook, projected retirements, organisational and strategic plans, organisational design, organisational size
New programmes, changes in technology, changes in strategic plan, pending legislation, changes in business processes, conditionalities of external agencies ( IMF)
Method Staffing Table Approach Regression Analysis Time Series Analysis Linear programming
Supply Projection
Employee profiles, organisational charts, budgets, job descriptions
Strategic objectives, technology, current skills sets, current job classifications, sources of HR metrics, quality, efficiency, ethics, equity
Skills Inventory Replacement Charts Succession Planning Flow Modeling/Markov
Analysis Computer simulations
Feasibility Budgets, current strategic plan, SWOT analysis
Managerial attitudes, change orientation, organisational culture, Employee Satisfaction Survey
Cost benefit analysis in both qualitative and quantitative terms
Workforce Analysis Methods
Purpose of a WFA in an HR Purpose of a WFA in an HR PlanPlanIt allows one to identify the key strategic
areas of focus upon which to build the plan.
It makes HR more scientific since the plan is built upon data driven evidence.
It allows HR to be more strategic since HR interventions will be linked to HR issues which will be addressed in the HR Plan.
Action Planning will be tailored to current HR realities and aimed at addressing the core HR challenges rendering greater likelihood for successful implementation.
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How to develop the HR How to develop the HR Plan?Plan?
Step 3: Review Organisation’s Strategic Direction
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Review of Organisation’s Review of Organisation’s Strategic DirectionStrategic Direction
Review of vision, mission , core values as well as primary and secondary data sources to yield the following;
Situational Analysis SWOT Analysis Organisation’s Strategies Organisation’s Key Result Areas Organisation’s Key Performance Indicators
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How to develop the HR How to develop the HR Plan?Plan?
Step 4: Review Organisation’s Internal HR Processes,
Procedures andSystems
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Why do Internal HR Why do Internal HR Review?Review?
There is the need to gain an appreciation for the organisation's current HR Processes, Procedures and Systems since;
These will be strengthened and built upon in the HR Plan
Identifies priority areas upon which to allocate resources
Is part of the HR Architecture to aid in the realization of strategic goals and initiatives
Is a prime indicator of whether there is any strategic HR in the organisation.
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How to develop the HR How to develop the HR Plan?Plan?
Step 5: Building the HR Plan
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Building the HR PlanBuilding the HR PlanEach Strategic Area of Focus (SAF) as
identified in the Workforce Analysis is then developed to show its objectives, strategies and timelines.
A system of HR Measurements are developed to aid in tracking organisational performance with respect to achieving the SAF as identified.
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Ensuring Closure of the Ensuring Closure of the HR PlanHR Plan
A detailed Action Plan involving the breakdown of each SAF is then developed with a focus on activities, deliverables, results/impact, who accountable/responsible for the activities as identified.
An implementation strategy is then crafted
A proposed costing for the plan is then undertaken
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CASE STUDY EXAMPLECASE STUDY EXAMPLE
Developing a Strategic HR Plan for an entire Public
Service Organisation in the Commonwealth Caribbean.
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Context of Project Context of Project Conceived due to Government's need
to reform and modernise the Public Sector which is a critical success factor for growth and development of the economy.
Ability to enable the improvement of the country’s competiveness – regionally and internationally – by nurturing a new culture of productivity and results-based performance 35
Aim of HR PlanAim of HR Plan
To ensure that staff is equipped with the requisite skills,
knowledge and attitudes to ensure improved efficiency,
productivity, quality and innovativeness both in respect of
current needs, and those anticipated in the future as a result of economic, social and
political change.36
Pre-work leading to PlanPre-work leading to PlanAn HR Audit on the Public Service was done with the following results;
Review of Human Resource PoliciesPersonnel Files ReviewPerformance Management/AppraisalHR ProcessesHiring and Orientation ProceduresSkills Gap Analysis – spreadsheet of
demographic data arising from personnel files review
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Key Objective of HR PlanKey Objective of HR Plan
To bring the deliverables of the HR Audit to life by providing the
strategic approach to HR as the context, and alignment of the
current organisational HR systems, practices, processes and policies
with novel approaches which when combined would then contribute to
the culture change necessary for the achievement of Government’s goals
and objectives. 38
Step 1: Selection of ModelStep 1: Selection of Model
The results-based, performance-driven,
competency-adept model was utilised to create the
linkages between the strategic HR function and
the organisation’s business goals and objectives.
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The ModelThe Model
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Source: A Strategic Human Resource Management System for the 21st Century. Naval Personnel Task Force, September 2000 (Adapted)
Strategic Direction
The strategic direction & outcomes that the organisation
seeks to achieve
HRM System
Shaping HRM for organisational success
Planning the Total Workforce
Deciding the numbers and competence of personnel the organisation requires
Generating Required Human Resources
Attracting, assessing and initially assigning the people needed in the organisation’s total workforce
Assessing and Sustaining Organisational Competence & Performance
Measuring the organisation’s progress towards its desired outcomes and adjusting the system accordingly
COMPETENCY & RESULTS BASED PERFORMANCE
Investing in Human Resource Development & Performance
Developing & reinforcing competence and performance in individual groups and teams in the organisation’s total workforce
Step 2Step 2: Conduct a : Conduct a Workforce Workforce AnalysisAnalysisKey inputs;1.Skills gap Analysis spreadsheet which
was reconfigured by adding additional fields and mathematical formulae to aid with calculations.
2.The HR Audit Report which detailed a review of the corporate plans, organisational charts, job descriptions, key result areas, vision for the next three years for ministries and department and the Employee Satisfaction Survey results which lends to an understanding of the organisational culture. 41
Key Inputs to WFAKey Inputs to WFA
3. The approved 2009/2010 Budget for the Country.
4. Major documents detailing the Country’s and Public Sector strategies.
5. Findings of the HR Forecasting Survey – a data collection instrument developed for the Workforce Analysis
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The Supply Analysis The Supply Analysis
Key findings;Total number of employeesDepartments with the
highest/lowest number of employees.
Gender Profile of the workforceAge Profile of the workforceYears of service of employeesAbsenteeism analysis across
ministries/departments. 43
The Supply AnalysisThe Supply Analysis c’td c’td
Number of VacanciesDistribution of VacanciesMost and least Populated jobsSeparationTermination vs. HiresHires by Contract
Each of these key findings was married with relevant HR theory to highlight Strategic Areas of
Focus 44
The Supply AnalysisThe Supply Analysis c’td c’td
In addition an analysis was undertaken in each ministry and department to ascertain whether the composition and number of the staff was sufficient to aid in the achievement of the KRAs of each ministry and department.
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The Demand AnalysisThe Demand AnalysisArising out of the HR Forecasting Survey which was done on each ministry and department for the next three years, the following resulted;
The position most in demand in the future
The minimal educational requirement for jobs in the future.
New competencies requiredNew jobs required
A profile for the future worker emerged46
Gap AnalysisGap Analysis Analysis of issues arising out of the
Supply and Demand Analysis as well as an in-depth analysis of numbers and composition of staff required for the present and in the future.
Areas where there are vacancies and a proposed plan for filling these.
Identification of priorities with respect to Strategic Areas of Focus
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Some of the Strategic Areas Some of the Strategic Areas of Focus of Focus
Job AnalysisRetentionRecruitmentSuccession PlanningTraining and Development
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Step 2.1: Development of Step 2.1: Development of a TNAa TNATraining Needs Assessment (TNA)
was done by building on the outcomes of the Workforce Analysis via an instrument designed linking department’s mission, KRAs and competencies and linking these to training needs, types of training and their urgency.
Findings of the TNA corroborated with findings of the WFA with respect to additional competencies and skills required for the future 49
Step 3: Review of Step 3: Review of Organisation’s Organisation’s Strategic DirectionStrategic Direction
The Situational Analysis focused on factors in four categories; social/legislative, political, economic and technological.
Availability of resourcesChanging governmental prioritiesImpact of regional and global
initiatives on the national agenda 50
Review of Organisation’s Review of Organisation’s Strategic Direction Strategic Direction c’tdc’td
Arising out of the Situational Analysis a SWOT Analysis was undertaken
Key areas upon which to focus for successful implementation
Key issues which may impact negatively on the initiative.
Identified areas which could improve organisational effectiveness
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Review of Organisation’s Review of Organisation’s Strategic Direction Strategic Direction c’tdc’td
The Strategic Direction of each ministry and Department was ascertained since each ministry and department has its own vision, mission, core values and Key Result Areas (KRAs).
Strategic areas upon which to focus to improve service delivery
Identification of change management initiatives to help create a common Public Service culture
Development of major initiatives to aid in employee engagement 52
Step 4: Review of Internal HR Step 4: Review of Internal HR Systems Systems
Overview of HRM SystemRecruitment and SelectionPerformance Management
SystemTraining and DevelopmentCompensationOther HR SystemsHRIS
Current HR Systems show some leaning toward Strategic HR 53
Step 5: Building the PlanStep 5: Building the PlanPrioritised Strategic Areas of Focus (SAF) broken out to show objectives, strategies and timelines.
Some of the SAF were identified as Main Interventions since these were necessary to inculcate the changes necessary to create efficiency, and performance
Others were deemed Cross Cutting Interventions since these created the behaviour change necessary for the successful implementation of the HR Plan. These are a feature throughout each intervention and is carded for the lifecycle of the implementation of this HR Plan 54
Building the Plan Building the Plan c’tdc’td
HR Scorecard and HR Strategy Maps were created specifically for the Public Service Organisation to assist them to identify and link the key HR Metrics with specific outcomes.
A detailed Action Plan was developed to link activities from the HR Plan to key deliverables. In addition it specified who was accountable and responsible for the various activities and outcomes.
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Building the Plan Building the Plan c’tdc’td
An Implementation Strategy was developed to breathe life into the Action Plan by creating a visual image of how the plan should occur.
Each strategic initiative and its various activities were then ascribed an element of costing to assist the client with their resource allocation.
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THE ENDTHE END
Any questions?
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