HR Strategy

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Human Resources Strategic Planning

HRM 329 Week 2

people and planning…what a great combination

- anonymous

Claremont Graduate University School of Behavioral and Organizational Sciences

Human Resources Management

Question for discussion: “Why do business leaders not see HR as KEY to

today’s people strategies?”

Some say HR is being pulled in two different directions. One part of the future is a function that is focused on

administrative and operational efficiency, and the other is an emerging people management function that may reside in

the HR department or in business operations. - Patrick Kiger

Workforce Magazine, May 2015

Do you agree or disagree with the above quote? Why so?

Introduction

The focal point is between Strategic Management and Strategic Human Resource Management.

The fundamental focus and key question is:

“How should firms effectively manage people

to support a selected organizational strategy, leading to a competitive advantage based upon

the contributions made by the organizational participants.”

Introduction

Definition

Strategic Human Resource Planning (SHRP) is a synergistic, systematic process intersecting strategic management and human resource management to bring about effective and satisfied Human Capital for one’s organization.

Process

The SHRP process is pivotal for understanding how a firm effectively manages people, to support one’s organizational strategy, and create a competitive advantage.

Strategic Human Resources

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A Visual Model for Strategic Human Resource Planning

Customer Needs

Determining the Org Climate

Fulfilling Human Capital Needs

Acquiring Human Capital

On-boarding Human Capital

Developing Human Capital

Retaining Human Capital

Metrics/Assessment

Key Strategies - Objectives - Allocation of Resources

Products, Programs, Services

Vision, Mission & Values

The S

H R

P P

rocess

What does my organization say and do that truly demonstrates people are a vital asset to our organization?

Does my organization have a clear vision, mission and set of values? …culture?

Does my organization regularly conduct SWOT or other analysis to identify the opportunities and issues inside and outside our organization?

Does my organization first, as a whole and departmentally, set regular goals that are adhered to?

Does my organization display a managerial attitude that the HR department is a “vital evil”, “gets in the way”, is administratively and functionally necessary or ?

What are examples of the managerial attitudes, comments and actions that support my thoughts? THIS IS KEY and overrides “LIP SERVICE.”

What do I believe is the “human capital value determination”factor for my organization on a scale of 1 though 10?

Determining the Organizational Climate Towards Your Human Capital

Climate Survey – ABC Company Partial Sample Ralph Stayer and Johnsonville Sausage – Strategy Thoughts

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Johnsonville Sausage…WHO?

Evidence-based change is a mind-set & approach to making HR decisions.

…the principles of evidence-based change must be combined with a change-management process to ensure a sustainable competitive advantage for an organization through HR.

More often than not, decisions about HR and people management are made on the basis of the instincts or uninformed preferences of the stakeholders.

The future of the HR profession lies in improving its ability to make decisions based on evidence.

The Five Principles of Evidence-Based Change

Greater strategy in leading-edge HR departments rely on the following 5 principals:

1. Logic-driven analytics – knowing the WHY behind WHAT you need. Different for different disciplines and roles

2. Segmentation – understanding the different roles. One cannot optimize if differences are not known first

3. Risk leverage – knowing when – and when not – to take risks.

4. Integration & synergy – it is important that HR practices work well together, in a unit and across the organization

5. Optimization – investing more where it will make a difference

Logic-driven analytics

…is about identifying the most pivotal issues that an organization needs to focus on and then using robust analysis to describe those issues.

The use of logic-driven analytics also ensures commonality in the frameworks and mental models used in analyzing issues and defining success.

Logic means “to make sense”. Analytics or analysis involves data collection and examination.

Therefore, one important use of logic is to discern which data and which analytics are likely to be most pivotal to the vital issues facing the organization.

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Jim Sinegal wasn’t just interested in taking care of the customers, he wants to take good care of his employees.

Strategically, what is the impact of this mindset?

Many Costco workers have been with the company since it was founded in 1983. Once hired, they rarely leave.

“Imagine that you have 120,000 loyal ambassadors out there who are constantly saying good things about Costco.”

How can human resources further support and impact Jim Sinegal (and Craig Jelinek’s) thought?

What other human resource value strategies are found at Costco and driven by the human resource department?

Human Resources Strategic Planning

HRM 329 Week 2

people and planning…what a great combination

- anonymous

Claremont Graduate University School of Behavioral and Organizational Sciences

Human Resources Management