Strategic Human Resources Management (SHRM)
Strategic Workforce Planning
DEFINING THE FUNDAMENTAL
Strategic human resource management (SHRM) is the
process of linking the human resource function with the
strategic objectives of the organization in order to
improve performance. By a strategic approach to HRM,
we are referring to a managerial process requiring human
resource (HR) policies and practices to be linked with the
strategic objectives of the organization.
SHRM is an approach to managing people that deals with
how the organization’s goals will be achieved through its
human resources by means of integrated HR strategies,
policies and practices.
Both internal and external environmental forces shapes,
influences and informs HR strategies and plans
The human resources of an organization play a strategic role
in its success
HR strategies and plans should be integrated with business
strategies and plans
Human capital is a major source of competitive advantage
It is people who implement the business strategy
A systematic approach should be adopted to planning and
implementing HR strategies
HRM functions are horizontally integrated (bundled)
HR/workforce planning is defined as a systematic, yet
dynamic process of estimating the future demand for and
supply for employees to execute the organization’s work
in the ways that best support its strategic direction and
deciding how to align and match them.
Workforce planning as assessing future business needs
and deciding on the numbers and types of people
Strategic HR planning predicts the future HR management
needs of the organization after analyzing the organization's
current human resources, the external labour market and the
future HR environment that the organization will be operating
in. The analysis of HR management issues external to the
organization and developing scenarios about the future are
what distinguishes strategic planning from operational
Where are we going?
How will we develop HR strategies to successfully get there, given
What skill sets do we need?
STRATEGIC HR PLANNING
Ensure adequate human resources to meet the strategic
goals and operational plans of your organization - the right
people with the right skills at the right time
Keep up with social, economic, legislative and
technological trends that impact on human resources in
your area and in the sector
Remain flexible so that your organization can manage
change if the future is different than anticipated
PURPOSE OF STRATEGIC HR
Review current HR and organizational strategies
Conduct an environmental scan
Micro - sub environment
Market - sub environment
Macro – sub environment
Preferred tools – SWOT and PESTEL analyses
Forecasting should consider the past and the present
requirements as well as future organizational directions
Number of employees
Type of employees
Skills requirements of these employees
Consider and assess the challenges and constraints
FORECASTING HR DEMAND
Assess the current HR capacity of the organization by
means of the Skill inventories method
The knowledge, skills and abilities of your current staff
need to be identified
Employee experience, education and special skills
Certificates or additional training should also be included
A forecast of the supply of employees projected to join
the organization from outside sources
Through a gap analysis, the organization then identifies the gaps
between the current and projected human resource needs
Identify practices that could be improved or new practices needed to
support the organization's capacity to move forward
What new jobs will we need?
What new skills will be required?
Do our present employees have the required skills?
Are employees currently in positions that use their strengths?
Do we have enough managers/supervisors?
Are current HR management practices adequate for future needs?
Determine surplus or deficit