Executive Summary

Human resource strategic planning is an important aspect in any organization that is determined to succeed in business operation. It aligns the HRM to the mission, goals and objectives of the firm. An organization with a human resource department develops strategic plan that leads it in decision making concerning recruitment, training and development of employees’ skills. Strategic human resource planning plays a crucial role in determining the training and recruitment cost into the operating budget. It contributes to establishment of HR strategies that help an organization to support its functions. It is crucial to personal credibility with other partners in the firm. Therefore, strategic HR planning ensures that the business is responsive, committed and shows the value of human resource activities. Personal communication and awareness is the capacity for self-control and making communications clear at all stages both externally and internally. It also helps to maintain skills, knowledge and showing of good practice skills that are relevant. Delivery metrics in human resources help with strategic plans on how to improve business efficiency and effectiveness. In the contemporary world, organizations must produce the value of investment resources on HR training and operations. Since human resource management acts as a strategic component for the business, an actionable plan should be provided for every function of the company. HR mission statement ensures a proper partnership with all departments and offers excellent services for human resource.

Human Resources Strategic Plan

Introduction

Strategic planning is a crucial aspect of strategic HR management. It connects HR management to the organization’s goals, missions and objectives. Many organizations have a strategic plan that helps them to accomplish their missions successfully (Gomez-Meija, Balkin, & Cardy, 2012, p. 21). Firms regularly fulfill their financial plans in order to achieve their goals while workforce plans are also important in the organization. Strategic human resource management helps to integrate systems aiming to accomplish the overall success, strategies and missions of the company while satisfying stakeholders and employee’s needs (Gomez-Meija, Balkin, & Cardy, 2012, p. 33). Every organization establishes strategic plan that acts as a guide in decision making concerning the future. A firm uses strategic plan to produce strategic human resource plan that will enable it to make decisions on HR management for the future directions of the firm. Moreover, strategic human resource planning is essential from a budgetary perspective as it plays a crucial role in determining the training and recruitment cost into the operating budget (DeCenzo & Robbins, 2005, p. 13). It also contributes to satisfy the strategic goal and business operational plans.

Strategic Contribution

Strategic human resource management planning is designed and executed to contribute to the firm’s strategy. In this respect, its main purpose is to contribute strategically to sufficient human resource that satisfies strategic goal and organization operational plans (Bandt & Haines, 2002, p. 42). In addition, it enables the organization to keep technological, legislative, economic and social trends that affect human resources in the operational sector (Gomez-Meija, Balkin, & Cardy, 2012, p. 36). The staff also stays flexible in order for an organization to manage changes if the future is different from the expected.

Strategic human resource planning forecast the needs of HR management in the future following analysis of the current resources and external labor market and the future environment where the business will be performed (Salaman, Storey, & Billsberry, 2005, p. 37).  The HR management conducts analysis of the external issues and establishes measures in the future to solve the problems. It contributes to establishment of HR strategies that help organization to support its functions (DeCenzo & Robbins, 2005, p. 15).

The firm meets its future goals using several HR strategies which include restructuring strategies, development and training strategies, recruitment, outsourcing, and collaboration strategies. Restructuring strategies assist in reducing staff through either attrition or termination (Bandt & Haines, 2002, p. 49). If after assessment there is a surplus of skills, there are options to help with adjustments. Workers’ termination produces quick results. Attrition is the process of failing to replace employees after they leave to reduce staffing. However, it depends on how the firm considers the urgency of reducing the workers.

In this regard, jobs in the firm should be reorganized in order to cover important work of departing employees (Gomez-Meija, Balkin, & Cardy, 2012, p. 37). However, explicit evaluation of the regrouped workloads of the remaining staffs needs to be analyzed to determine whether they lead to higher outcomes. In addition, it reforms roles to establish distinguished jobs. It also improves efficiency by re-organizing the job units. It is crucial to take care of contemporary labor market trends since it may produce long-term effects if the workers leave (Bandt & Haines, 2002, p. 54). In some cases, workers may be determined to minimize their hours, particularly if the circumstances are temporary. Another alternative is sharing services. The main factor of success is to ensure that all workers are satisfied with the new working structures (Gomez-Meija, Balkin, & Cardy, 2012, p. 39). It is important for employees to confirm the new arrangement in writing so that it satisfies the employers’ need. Proper communication is a requirement for success.

New roles for employees require proper training, hence, the staff needs development opportunities to introduce them to jobs in the future (DeCenzo & Robbins, 2005, p. 16). The firm can meet development and training needs through different ways. One strategy for the firm is aimed at paying special attention to improving workers’ skills. Therefore, employees may be sent to take a certificate or courses or it may be achieved via on-the-job training.

Several developments and training needs can be achieved via cost effective techniques (Bandt & Haines, 2002, p. 53). It is important to recruit new employees with abilities and skills that the firm will need in the future. Recruitment strategies consider all existing alternatives for strategically promoting career opening and enticing candidates with proper qualifications to apply (Gomez-Meija, Balkin, & Cardy, 2012, p. 43). Strategic human resource planning contributes to the recruitment of workers with adequate skills for strategic achievement of goals. The outsourcing strategies contribute to the fulfillment of some responsibilities from external organizations or individuals. Some firms use employees from external source skills (Millmore, 2007, p. 12). It assists to achieve specific and technical responsibilities that do not need full-time hiring.

Some firms outsource specific HR functions, bookkeeping or project activities. For instance, a firm may hire payroll services from an external firm instead of using a staff person (Bandt & Haines, 2002, p. 69). The project designed for short-term period may use a consultant or a particular expertise such as legal advice from external sources. There should be a careful assessment of the organizational goals for the proper achievement of organizational goals.

Collaboration strategies are very crucial in HR strategic planning as they may lead to indirect approaches that may indirectly assist the organization (Gomez-Meija, Balkin, & Cardy, 2012, p. 55). Collaboration is very beneficial as it strategically assists in dealing with shortage of specific skills. Collaboration helps to share cost of training for groups of workers and permits staffs from different companies to visit each other in order to obtain insights and skills (DeCenzo & Robbins, 2005, p. 20).

Personal Credibility

Personal credibility for employees is crucial with other partners in the organization. Therefore, strategic HR planning ensures that the business is responsive, committed and shows the value of human resource activities (Millmore, 2007, p. 24). A human resource practitioner plays a critical role in business as they act as role models and business partners with stakeholders and organization. Human resource expert acquires respect and credibility via their service and actions deliverables and performing their duties diligently (Bandt & Haines, 2002, p. 62). In personal credibility a human resource practitioner requires competencies such as effective relationships, achieving results, and personal communication and awareness.

Effective relationships create sustainable relationships of credibility and trust depending on efficient delivery. Consequently, it generates engagement with a consumer-based business model for human resources across the organization. Achieving good outcomes satisfy commitment and create a record of accomplishment to produce greater results (Gomez-Meija, Balkin, & Cardy, 2012, p. 66). It produces results with a high magnitude of professional and business integrity. Professional integrity ensures performance in an ethical and in an expertise manner and safeguards updated human resource, industry and business knowledge.

Personal communication and awareness is the capacity for self-control and clear communications at all stages both externally and internally. It takes care of not only HR issues, but also concerning business needs. Ultimately, it produces positive results (Bandt & Haines, 2002, p. 172). Personal credibility in strategic human resource planning enables HR practitioner to establish, deliver and facilitate sustainable and robust relationships with external and internal stakeholders across the firm (Salaman, Storey, & Billsberry, 2005, p. 62). Therefore, HR expert is able to persuade senior management of personal integrity. In addition, HR practitioners perform their duties in a manner that enhances the business to accomplish maximum performance (DeCenzo & Robbins, 2005, p. 22). Furthermore, they understand the essence of stakeholder needs of their performance and work accordingly.

Human resource expert should be a holder of suitable tertiary qualifications and preferably postgraduate diploma (Gomez-Meija, Balkin, & Cardy, 2012, p. 71). Therefore, they are able to advise and make significant contributions that connect firm with HR capacity.

Moreover, creating productive and enduring relations with senior management enables to be recognized as a key leader of personal credibility to the rest of HR teams. They frequently produce high standards and knowledge of their personal contributions and develop interventions that effectively produce strategic success of the company. Personal credibility helps to maintain skills, knowledge and show good practice skills that are relevant and up-to-date (Bandt & Haines, 2002, p. 155). They also initiate innovative ways to promote their existence with HR practice, leadership and concepts.

Personal credibility assists to advance strategic HR planning as the human resource management can communicate their advice effectively both in writing and verbally. They are also aware of when there is a need for urgent focus on emerging issues that can affect the business outcomes (Millmore, 2007, p. 31). In addition, HR manager strategically uses emotional intelligence in order to accomplish good results in difficult circumstances. HR practitioner will influence and challenge to produce better results (Bandt & Haines, 2002, p. 112). Besides, using personal credibility they enhance to the integrity of the human resource profession.

Human Resource Metrics

HR metrics are indicators used to show the effectiveness and value of strategies used in human resource. They involve measurements such as benefit costs per workers, productivity costs and rates and human capital return on investments (Bandt & Haines, 2002, p. 133). HR delivery metrics provide information about the past performance that helps to take informed actions which assist human resource manager to produce maximum strategic outcomes. Delivery metrics in human resources help with strategic plans on how to improve business efficiency and effectiveness. In the contemporary world, organizations must produce the value of investment resources on HR training and operations (Gomez-Meija, Balkin, & Cardy, 2012, p. 72). Therefore, appropriate metrics should be connected with business goals and missions.

Human resource manager should produce actionable information to senior management that assists them in making right decision about new products, strategies for marketing and investment (Millmore, 2007, p. 33). HR delivery metrics are a crucial way to strategic plan for the appropriate cost and the effects of workers programs as well as a way to determine the failure or success of human resource operations. In addition, it helps senior management to monitor the trends and make plans in areas that require changes (DeCenzo & Robbins, 2005, p. 29). For instance, a firm may use cost per hire to determine the hiring cost and assess whether money were used for employing appropriate people. Additionally, it helps to determine organization’s expenditure and HR expenses (Bandt & Haines, 2002, p. 125). Therefore, delivery metrics help the organization to determine if the HR expenditures are higher than the total revenue.

Key Performance Measurements (KPM)

For strategic planning, key performance measurements are quantifiable indicators than a firm uses to measure the performances of specific areas of its operations. KPMs may depend on business, department or project and can be either financial or nonfinancial. Key performance measurements are strategically associated with the firm’s long-term business objectives and crucial achievement factors (Gomez-Meija, Balkin, & Cardy, 2012, p. 45). For instance, a reduction in time-to-fill positions of sales helps to minimize arrangement problems, which ultimately leads to higher revenue for the organization because of suitable staffing levels. Key performance measurements such as decreased turnover produce lower costs of cost-per hire and training cost to a company bottom line.

Human resource management needs strategic planning when determining key performance measurements (Bandt & Haines, 2002, p. 119). In this regard, HR management should encourage the senior management to engage HR in the creation of business strategies and goals. In addition, it needs to understand the firm’s stakeholders culture and goals. Therefore, it should focus on deliverables that are crucial to the company such as branding, firm’s performance and core business growth. Using this knowledge, the HR will be able to assess where to concentrate its efforts when determining KPMs (Millmore, 2007, p. 42). It also helps to know what measures that can be analyzed to be connected with specific deliverables and factors.

Sometimes human resource management should collaborate with other departments to acquire required information for accurate KPM reporting. Ultimately, HR department should analyze the KPMs to evaluate whether the company improves or whether there is availability of opportunities to promote development (Bandt & Haines, 2002, p. 127). Furthermore, it will create a timeline for regular reporting of KPMs such as monthly, quarterly or semiannually and the format of information dissemination, for instance, Human resource scorecard.

Action Plan for each Functional Area

Every aspect of human resource requires strategic planning and HR manager should highlight the goals and then combine action plans together in the right manner. Since human resource management acts as a strategic component for the business, an actionable plan should be provided for every function of the company (Millmore, 2007, p. 49). An action plan should be applicable, hence, must be a guiding factor for all human resource management functions.

Human resource management should analyze and rectify all issues according to current business changes (Gomez-Meija, Balkin, & Cardy, 2012, p. 88). Therefore, all members’ engagement in HR department and proper communications help to improve the plan. As a business partner, HR should align company’s values in HR strategic plan as the main objective of the plan. Moreover, HR strategic plan must be linked to organizational objectives and missions. For instance, if the organization’s mission is to enhance corporate social responsibility, then the plan must focus on the hiring standards (Bandt & Haines, 2002, p. 146). People engagement is very crucial in the development of an action plan for the functional plan of the firm.

An action plan should include every person in the organization. For instance, as the plan progresses, human resource manager needs to work with different people across all departments and identify the best skills possessed by these people. In addition, HR manager should ensure that individuals recruited and interviewed people have proper qualities as people already possessing the job (Gomez-Meija, Balkin, & Cardy, 2012, p. 73). HR manager should also work with executives and finance departments involved in budgeting. Therefore, they determine the needs of human resources and recruit the appropriate personnel at the right time (Millmore, 2007, p. 51). Following the determination of what is required, a positive feedback can be obtained from communicating a plan because it connects with the business objectives.

An action plan should consider the use of technology. The best companies are those that embrace new technology in their business plans. There are many human resource software alternatives that can improve company’s processes and improve company’s effectiveness (Bandt & Haines, 2002, p. 117). A proper strategic plan, therefore, should provide new technology for HR department to improve its performance. Human resource management understands the business and its needs and can initiate a plan to satisfy those needs. They are also aware of current events; hence, they understand what is happening globally that could influence their strategic plan. If they identify, for instance, that an economic crisis is about to happen, they will change their strategic plan (Gomez-Meija, Balkin, & Cardy, 2012, p. 79). Therefore, an action plan should be a living document that shifts as the world and business changes.

HR Mission Statement

Strategic planning articulates human resource with mission statement in business. HR mission statement ensures proper partnership with all departments and offers excellent services for human resource management, initiative solutions and proper leadership (Salaman, Storey, & Billsberry, 2005, p. 67). HR mission statement values their customer as their priority and the focus on advocacy, stewardship, service and planning (DeCenzo & Robbins, 2005, p. 26). All people in the organization are treated with dignity and respect and have a chance of professional development and growth, and they receive equal and fair treatment. In addition, the mission statement ensures that employees work in a safe environment.

Moreover, professional staff of the firm is responsive, dedicated and enthusiastic and works as a team (Bandt & Haines, 2002, p. 155).  Therefore, they ensure that they demonstrate high personal integrity and maintain provide maximum service to their customers (Millmore, 2007, p. 55). They also work with both internal and external partners who through their expertise and specialties assist them in achieving their missions.

HR Vision Statement and Objectives

The role of the vision statement of a firm is to make sure that the firm is an employer of choice. In addition, it strategically positions itself as a viable partner at all levels of the organization. It ensures that the firm remains a leader of inventive human resources services (Gomez-Meija, Balkin, & Cardy, 2012, p. 99). A firm is led by the values of creativity, flexibility and timely responsiveness to the adequate and diverse needs of workers and senior management. An efficient and effective firm should have both internal and external competencies that offer reliable and practical services and advice all workers and managers.  A vision statement should also be responsive and dynamic with internal abilities of the organization to focus on emerging problems and needs (Bandt & Haines, 2002, p. 199). A vision statement is an important part of the strategic planning process of all departments at the organization. It has the capacity to know and generate value to the mission of their consumers (Gomez-Meija, Balkin, & Cardy, 2012, p. 97). A vision statement is highly transformative and effective to the firm’s strategic plans, and it brings leadership and value addition.

Conclusion

Strategic planning is a crucial aspect of strategic HR management. It connects HR management to the organization’s goals, missions and objectives. Many organizations have a strategic plan that helps them to accomplish their missions successfully and contribute to the firm’s strategy (Salaman, Storey, & Billsberry, 2005, p. 59). In this respect, its main purpose is to contribute strategically to sufficient human resource management that satisfies the goal and organization operational plans. In addition, it enables organization to keep technological, legislative, economic and social trends that affect human resources in the operational sector (Bandt & Haines, 2002, p. 147). Some firms use staffs from external sources. It assists in achieving specific and technical responsibilities that do not need full-time hiring. Some firms outsource specific HR functions, bookkeeping or project activities.

References

Bandt, A., & Haines, S. (2002). Successful strategic human resource planning. San Diego, CA: Centre for Strategic Management.

DeCenzo, D., & Robbins, S. (2005). Fundamentals of human resource management. Hoboken (NJ): J. Wiley.

Gomez-Meija, L., Balkin, D., & Cardy, R. (2012). Managing Human Resources. Upper Saddle Ridge, New Jersey: Pearson.

Millmore, M. (2007). Strategic human resource management. Harlow: Financial Times Prentice Hall.

Salaman, G., Storey, J., & Billsberry, J. (2005). Strategic Human Resource Management. London: Sage Publications Ltd.