Manish Lal (15)


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  • The success of HR strategies depends on the situation or context in which they are used. An HR strategy’s effect on firm performance is always dependent on how well it fits with other factors. This slide depicts the key factors that firms should consider in determining which HR strategies will have positive impact on firm performance: organizational strategies, environment, organizational characteristics, and organizational capabilities.
  • Look at page 37 (questions).For the sake of the firm, managers and the HR department need to work together closely. Lack of cooperation has traditionally been a problem. The next five slides highlight five competencies required of HR departments in order that they might be strategic partners with management. Companies can take certain steps to foster an effective partnership between managers and HR department. Companies should: (1) Analyze the people side of productivity rather than depend solely on technical solutions to problems. (2) View HR professionals as internal consultants who can provide valuable advice and support that improve the management of operations. (3) Instill a shared sense of common fate in the firm rather than a win/lose perspective among individual departments and units. (4) Require some managerial experience as part of the training of HR professionals. (5) Actively involve top corporate and divisional managers in formulating, implementing, and reviewing all HR plans and strategies in close collaboration with the HR department. (6) Require senior HR executives to participate on an equal basis with other key managers from the various functional areas (marketing, finance) involved in charting the enterprise’s strategic direction.
  • To have that human capital strategy be effective, a number of functional strategies have to underpin it. One of those is the HR function strategy itself. It needs to be far more specific in terms of how the function will deliver the expected value and contributions to the organization to allow that human capital strategy to be accomplished and therefore, to drive the business. From that function strategy, we have learned that many truly successful HR functions have been able to put a value proposition in place which crystallizes their strategy. That value proposition becomes the driver for shaping the day to day operating model of the function. Let’s take a look at this right hand side of this model a bit. This is much of what we’ll focus on today – that day to day operation of the function that is absolutely essential. It is the root to execution and to making sure that the balance that I showed earlier gets accomplished. We see three main parts to the operating model that the HR function has to worry about, validate, and measure. One is sourcing. What activities will you do yourselves in your own enterprises vs. the activities will you have others do outside the function or enterprise? How will you infrastructure the function? What kind of capabilities do you need in terms of people, technology, process and the like, to bring life to the function strategy? And lastly, HR governance. How does the HR function go about leading itself and managing the related investments in the midst of the larger enterprise? Before we leave this page I want to draw note to one very easily missed part of this graphic, which is the arrow that runs across the bottom from right to left. That’s the absolute importance that we now believe is in measuring, monitoring and renewal. Effective functions, ones who have put forward a good day to day operating model, will tell you that their ability to sustain the model has been due to their ability to build a feedback loop for monitoring, measuring, renewing, questioning and challenging the human capital strategy and the function strategy.
  • Manish Lal (15)

    1. 1. MGMT 610 Case # 15 Does HR Planning Improve Business Performance Author: Bill Macaleer and Jones Shannon By Manish K Lal
    2. 2. Human Resource Planning Words of Wisdom <ul><li>‘ Most chief executives acknowledge that there is a link between HR practices and business performance.’ </li></ul><ul><li>‘ Retaining and motivating “knowledge workers” has become the primary aim … When they leave, the business loses an essential element of intellectual capital.’ </li></ul>
    3. 3. <ul><li>Human resource planning is the </li></ul><ul><li>process of systematically </li></ul><ul><li>forecasting the future demand and </li></ul><ul><li>supply for employees and the </li></ul><ul><li>deployment of their skills within the </li></ul><ul><li>strategic objectives of the </li></ul><ul><li>organization. </li></ul>Human Resource Planning
    4. 4. Human Resource Planning <ul><li>Is there a link between good HRM and business performance? </li></ul><ul><li>In the 2000s, there is growing evidence that </li></ul><ul><li>progressive HR practices can enhance a </li></ul><ul><li>company’s sustainability and profitability if there </li></ul><ul><li>is integration with business purpose. There is </li></ul><ul><li>however also evidence of a failure by many senior managers to recognize this. </li></ul>
    5. 5. Critical Success Factors to HR Planning <ul><li>Organizations integrate business and HR plans </li></ul><ul><li>Managers take ownership for HR planning </li></ul><ul><li>HR planners support managers </li></ul><ul><li>Resources are allocated to build HR planning capacity </li></ul><ul><li>Central agency support is provided to departments and agencies (e.g. ‘Centre of Excellence’) </li></ul>
    6. 6. The genesis of HR Planning <ul><li>Manpower Planning </li></ul><ul><li>Manpower plans were designed to fit in with the </li></ul><ul><li>overall business strategy and plan. </li></ul><ul><li>It represents a response by the personnel function to </li></ul><ul><li>ensure that the necessary supply of people is </li></ul><ul><li>forthcoming to allow measurable financial, marketing </li></ul><ul><li>and production targets to be met. </li></ul><ul><li>Manpower planning was defined by the Department of </li></ul><ul><li>Employment in 1974 as ‘strategy for the acquisition, </li></ul><ul><li>utilization, improvement and preservation of an organization’s human resources.’ </li></ul>
    7. 7. Manpower Planning <ul><li>Organization strategy and targets </li></ul><ul><li>Organization practices and methods </li></ul><ul><li>Manpower Review and Analysis </li></ul><ul><li>Internal External </li></ul><ul><li>Forecast </li></ul><ul><li>Demand Supply </li></ul><ul><li>Adjust to Balance </li></ul><ul><li>Recruit Retain Reduce </li></ul>
    8. 8. Misconception <ul><li>There is a common misconception that human resources planning is the same as manpower or staff planning. </li></ul><ul><li>Not so ! </li></ul>
    9. 9. HR Strategy Leads to Improved Organizational Performance HR Strategies Organizational Strategies Organizational Characteristics Organizational Capabilities Environments
    10. 10. LEADERSHIP How HR can be a Strategic Partner <ul><li>Understand styles of leadership </li></ul><ul><li>Display appropriate leadership </li></ul><ul><li>Demonstrate leadership at all levels of performance – team, individual, unit or organization </li></ul>
    11. 11. <ul><li>HR must understand… </li></ul><ul><ul><li>internal / external customers </li></ul></ul><ul><ul><li>key business disciplines </li></ul></ul><ul><ul><li>business structure, vision, values, </li></ul></ul><ul><ul><ul><li>goals, strategies, finances </li></ul></ul></ul><ul><ul><li>competitors, products, technology and sources of competitive advantage </li></ul></ul>KNOWLEDGE OF BUSINESS How HR can be a Strategic Partner
    12. 12. STRATEGIC THINKING How HR can be a Strategic Partner <ul><li>Understand strategic business planning </li></ul><ul><li>Apply a systematic HR planning process </li></ul><ul><li>Integrate HR systems to build capability and competitive advantage for the firm </li></ul><ul><li>Develop and integrate department strategies within corporate framework </li></ul>
    13. 13. PROCESS SKILLS How HR can be a Strategic Partner <ul><li>Know management processes </li></ul><ul><li>Know process skills: consulting, problem solving, evaluation and communication </li></ul><ul><li>Understand organizational development </li></ul><ul><li>Facilitate and manage change </li></ul><ul><li>Manage under uncertainty and instability </li></ul>
    14. 14. TECHNOLOGY How HR can be a Strategic Partner <ul><li>Maintain HR documentation using knowledge management and technology </li></ul><ul><li>Build firm’s capability using info systems </li></ul><ul><li>Provide training in use of technology </li></ul>
    15. 15. Roadblocks <ul><li>Most human resources and business professionals understand this concept, but it is alarming how few are able to implement it. Why is this? </li></ul>
    16. 16. How does it work ? <ul><li>Business Design Model </li></ul><ul><li>Liberating the Potential of People </li></ul><ul><li>Role of HR Council </li></ul>
    17. 17. Summary <ul><li>For exceptional business performance, it’s important that human resources becomes a strategic partner in the business. </li></ul>
    18. 18. Summary (contd) <ul><li>HR planning does enhance business performance when : </li></ul><ul><li>The HR plan is strategy-based </li></ul><ul><li>HR is a credible strategic partner </li></ul><ul><li>The HR function is driven by the strategic rather than the technical </li></ul><ul><li>HR comprises professionals who have strategic competencies </li></ul><ul><li>HR sees its role as a key player in implementing the business strategy </li></ul><ul><li>HR has designed and uses a measurement system to display its influence in the achievement of the business strategy </li></ul>
    19. 19. Discussions
    20. 20. Questions / Comments
    21. 22. Extra Slides
    22. 23. Business design model Business and environmental context Performance monitoring and renewal Business strategy Human capital strategy How will we deliver expected value and contribution to the organization? Sourcing What activities will we do ourselves/have others do? Infrastructure What capabilities are needed to fulfill HR’s strategy? HR operating model Governance How will we lead the function and manage related investments? How will we secure, manage, and motivate a workforce that can execute the business strategy? HR function strategy A Business Design for HR HR Value Proposition
    23. 24. Liberating the Potential of People <ul><li>A system-wide initiative to design and deploy excellent HR strategies and services which will: </li></ul>FULFILL MISSION ACHIEVE OPERATIONAL EXCELLENCE RECRUIT RETAIN DEVELOP Liberating the Potential of People <ul><ul><li>Recruit, retain and develop the right talent </li></ul></ul><ul><ul><li>Help us achieve operational excellence </li></ul></ul>Assure our success in fulfilling our Mission
    24. 25. The Role of The HR Council <ul><li>Mission </li></ul><ul><li>Share accountability for aligning HR strategies with business and mission goals </li></ul><ul><li>Guide the direction, design, oversight and implementation of HR strategies </li></ul><ul><li>Champion and advocate service, quality, value and ongoing continuous improvement </li></ul><ul><li>Key responsibilities </li></ul><ul><li>Identify and monitor performance metrics </li></ul><ul><li>Set performance standards </li></ul><ul><li>Represent the interests of Local Systems and encourage two way communication </li></ul><ul><li>Manage HR leadership development & succession </li></ul><ul><li>Leverage Best Practices </li></ul><ul><li>Champion process improvement </li></ul>
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