STRATEGIC HUMAN RESOURCES PLANNING

Strategic human resource planning

From Tafadzwa Maidza

 

Human resources planning is a process that identifies current and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning.

Contents

 [hide]

 

    1 Best Practices

    2 Implementation Stages

        2.1 Stage 1

        2.2 Stage 2

    3 Overarching Policy, Process & Tools

        3.1 Common Competency Dictionary and Architecture

        3.2 Human Resource Information Management Infrastructure

        3.3 Governance / Accountability Structure

    4 Process Implementation Stages

        4.1 Stage 1

        4.2 Stage 2

 

[edit] Best Practices

Hr-planning-model.png

 

The planning processes of most best practice organizations not only define what will be accomplished within a given timeframe, but also the numbers and types of human resources that will be needed to achieve the defined business goals (e.g., number of human resources; the required competencies; when the resources will be needed; etc.).

 

Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Targeted human resource strategies, plans and programs to address gaps (e.g., hiring / staffing; learning; career development; succession management; etc.) are then designed, developed and implemented to close the gaps.

 

These strategies and programs are monitored and evaluated on a regular basis to ensure that they are moving the organizations in the desired direction, including closing employee competency gaps, and corrections are made as needed. This Strategic HR Planning and evaluation cycle is depicted in the diagram below.

[edit] Implementation Stages

 

The following implementation stages are suggested for mid to large organizations implementing competencies in support of Strategic Human Resources Planning.

[edit] Stage 1

 

Short - Term HR Planning

 

 

    Establish a Competency Architecture and Competency Dictionary that will support Strategic Human Resource Planning.

    For each group to be profiled, define the roles and career streams to help identify current and future human resources needs.

    Determine how competencies will be integrated with the existing HR Planning process and systems (e.g., Human Resource Information Management systems; other computer-based tools, for example forecasting models).

 

[edit] Stage 2

 

    Build or revamp HR Planning tools, templates and processes to incorporate elements as determined in Stage 1.

    Train managers and / or facilitate corporate HR Planning process.

    Continuously monitor and improve processes, tools and systems to support HR Planning

 

[edit] Overarching Policy, Process & Tools

[edit] Common Competency Dictionary and Architecture

 

Establishing a common Competency Dictionary and Architecture is fundamental for the successful implementation of competencies throughout the organization. Maintaining this common architecture is essential for ensuring that all human resource management applications are fully integrated and that maximum efficiencies can be gained. It is important, therefore, to identify an organizational group accountable for the maintenance of the Competency Dictionary and Architecture on an ongoing basis.

[edit] Human Resource Information Management Infrastructure

 

In a recent review, the Gartner Group noted that CBM talent management initiatives have not necessarily yielded the desired benefits and return on investment, for the main part because organizations have not invested in the talent management software systems and infrastructure to facilitate full and effective implementation. To gain maximum benefit from CBM, organizations need to have a human resources management system and on-line tools and processes that will support many of the implementation recommendations contained in this document.

[edit] Governance / Accountability Structure

 

Organizations that have effectively implemented competencies on a corporate-wide basis have ensured that there is an appropriate project management, governance and accountability framework in place to support the development, maintenance and revision / updating of the competency profiles to meet changing demands.

[edit] Process Implementation Stages

 

The following implementation stages are suggested for mid to large organizations.

[edit] Stage 1

 

    Identify the infrastructure and system requirements to support full implementation (e.g., Human Resources Information Management System; other on-line software tools needed to support various CBM applications).

    Develop the competency profiles.

    Implement the competency profiles in a staged-way to demonstrate benefits and create buy-in (e.g., as soon as profiles for a group are developed, implement quickly within a low-risk high-benefit planned application for the group).

    Communicate success stories as competency profiles are implemented.

    Good for organization.

 

[edit] Stage 2

 

    Develop, revise / update competency profiles to meet changing deman

The organizational architecture is a description of the systems existing in the organization. Each organization has a lot of systems in place, some of them are extremely formal and many are informal and they are not described in any official document. The organizational architecture describes the systems, which make the organization living organization. The ability to design, develop, integrate and use such organizational systems is the basis for the efficient organization.

 

The organizational architecture is about creation of roles in the organization, processes to handle inputs and outcomes and formal reporting lines in the organization for the management purposes. Traditionally, Human Resources is expected to play a significant role in the organizational architecture and for HR Business Partnering concept, the organizational architecture is extremely important as the HR Business Partner can provide the regular consultancy to the business leaders and managers.

 

There are many models describing the organizational architecture around us. The most classical ones are the Star Model by Jay Galbraith and 7-S organizational architecture description by McKinsey.

 

The Galbraith’s Star Model describes 5 most important factors of the efficient organizational architecture:

 

    Strategy

    Structure

    Business Processes and Lateral Links

    Rewards Systems

    Human Resources Management

 

The McKinsey’s 7-S organizational architecture model describes 7 factors of the successful organizational architecture:

 

    Strategy

    Structure

    Systems

    Staff

    Style

    Skills

    Super ordinate Goals/Shared Values

 

In both models, there is a huge responsibility of Human Resources as in both models, HR Role is significant and has a significant impact on the efficient organizational architecture and operation of the whole organization. The competitive advantage always starts with the winning organizational architecture and HR Business Partner is a key player in the setting of such an organizational architecture.

 

The HR Team has to understand the theory of the organizational design as they can play a useful role in the creation and design of the new architecture. Without the theory behind, the advices given are just based on the gut feeling and they cannot be respected by the internal clients.

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HRA HR Alignment Architecture™

 

HRA partners closely with organization stakeholders to understand the big picture, map out a strategic direction and then develop plans for aligning human resources. Once we understand business goals and how human capital can best be aligned, we work with with our clients to design and develop state-of-the-art, yet deeply practical, human resource architecture, processes and systems.

 

Specific service areas include: HR strategic planning, system design, job design, assessment programs, performance management, appraisal, 360-feedback, talent management, succession planning and workforce readiness.

 

HR Strategic Planning. This includes: prioritizing human resource initiatives; developing short- and long-term business plans; clarifying the HR vision, identity and brand; and building cross-unit synergies, partnerships and alignment. Goals are to: assure HR is up to date, aligned with business goals and drives organizational success, identify and integrate the most critical initiatives with strategic and tactical action plans; and to clarify HR identity, roles and accountabilities.

System Design. Design and develop integrated on-line systems for talent management, performance management, succession planning. Goals include: providing employees with integrated portal, web-based tools and data base for all talent management activities; and developing a central data base to manage the company talent portfolio and performance in real time.

    Job Design (New and Existing Jobs). Define job and cross-functional roles and responsibilities to accomplish key objectives. The primary goal is to redesign job roles and relationships to meet emerging business needs.

Assessment Programs. Develop valid and systematic programs to assess results and competencies needed for top performance. The primary goals are assessment programs for employee selection, placement, succession, performance management and development.

    Performance Management/Appraisal and 360 Feedback. Develop performance appraisals, performance management, coaching, mentoring and 360-degree feedback programs. The primary goals are: to develop systematic processes for performance evaluation and development; and to provide vehicles for employees to provide each other with focused, constructive feedback.

Talent Management and Succession Planning. Develop procedures for assuring bench strength and optimizing talent movement. The goals are to assure mission-critical positions are filled with strong talent; redeploy underperformers and o optimize individual contribution and talent capability.

Workforce Readiness and Redeployment. Develop plans to consistently adapt a workforce to emerging conditions. The key goal is to provide proactive implementation of plans to adjust workforce size, deployment and capabilities.

Strategic Human Resources Management

GREAT ZIMBABWE UNIVERSITY

FUCULTY OF SOCIAL SCIENCES

DEPARTMENT OF PSYCHOLOGY AND HUMAN RESOURCE MANAGEMENT

 

 

NAME                                                MAIDZA TAFADZWA

REG NUMBER                                   M091309

PROGRAMME                                   HUMAN RESOURCE MANAGEMENT

COURSE                                              SHRM

COURSE CODE                                   HRM 306

LECTURER                                           MR MUPANI

                                                             DEFINE THE CONCEPT OF STRATEGIC

                                                             HUMAN RESOURCE ARCHITECTURE AND

                                                             DEMONSTRATE USING EXAMPLES FROM

                                                             THE ZIMBABWEAN CONTEXT THE

                                                              LOGIC FOR SHRM ARCHITECTURE AND ITS

                                                              PREVALENCE.

DUE DATE                                           23 MARCH 2012

 

COMMENT

 

MARK

 

 

Strategic Human Resource Management is a new field of study and an emerging practice, especially in Zimbabwe. The concept of Strategic Human Resource Management Architecture encompasses various sub-concepts which transcends through the traditional concepts of Soft and Hard Human Resource Management, to create a hybrid form of Human Resource Management. The logic of Strategic Human Resource Management Architecture in Zimbabwe is somewhat transparent as the disparity between various employees of the same company is highly visible, in terms of compensation and benefits. This discourse seeks to describe in detail the Strategic Human Resource Architecture concept and then highlight its utility and rationale in Zimbabwe. The loopholes associated with the concept in Zimbabwe will also be shed light on.

 

A strategy is defined by Porter [1988] as a course of action, a plan or a ploy. Strategic Human Resource management is a detailed course of action that will be taken in respect to matters to do with employees. In as much as it is related to employee matters, the course of action should be aligned to the overall business objectives as highlighted on the mission statement and the business Plan. Armstrong [2004] defines Strategic Human Resource management as a process that involve the use of over-aching approaches to the development of Human Resource strategies, which are integrated vertically with the business strategy and horizontally with one another. Strategic Human Resource Management dwells much on practices that differentiates the firm from its competitors. In other words, Strategic Human Resource Management is about trying to achieve a competitive advantage through hybrid Human Resource Management practices.

 

Strategic Human Resource Management Architecture is described by Lepak and Snell [1999: p31-48] ” Recognizing that not all employees possess knowledge and skills that are of equal strategic importance, we draw on the resource-based view of the firm, human capital theory, and transaction cost economics to develop human resource architecture of four different employment modes: internal development, acquisition, contracting, and alliance. We use this architecture to derive research questions for studying the relationships among employment modes, employment relationships, human resource configurations, and criteria for competitive advantage”. The concept of Strategic Human Resource Architecture entails designing and expertly crafting policies that are in sync with each other, known as horizontal integration, as well as being in tandem with the overall business plan, known as vertical integration [www.newafricantimes.com ]. To architect Human Resource practices and concepts one must craft relevant Human Resource Management policies to suit the calibre of employees the policy is targeted to affect. For example the salaries or benefits of employees in affirm cannot be uniform because their contribution and strategic importance to an organisation is not uniform. To architect proper Human Resource Management strategies one must first familiarise with the various types of employees in the organisation so as to establish which employees are critical, which are necessary and which are the ones are ubiquitous [www.allafrca.com ]. This helps in crafting and implementing policies tailor-made to address Human Resources issues in a cost-effective manner [Porter: 1988]. For example the pecks given to the “top brass” can not be the same as the ones given to the shop-floor workers as their strategic value to the organisation is by far different.

 

Lepak and Snell [2002] used the Human Resource Management Architecture to identify Human Resource practices, employment modes and employment relationships for different classes of employees depending on the extent to which their contribution is unique and strategically valuable to the organisation. The four classes that they propounded are knowledge-based employment, job-based employment, contractual work employment and alliances.

 

Knowledge workers can be viewed as resources of uttermost importance, as they are a source of sustained competitive advantage [Lepak and Snell: 1999]. These strategically and functionally important employees are also known as core-workers in an organisation, because an organisation cannot function without them. Thus commitment-based Human Resource configuration should be used when dealing with such employees. Their services cannot be contracted or outsourced since their skills are usually rare to come across [www.newafricantimes.com]. They can be termed the ‘lifeline’ of the organisation. The Civil Aviation Authority of Zimbabwe views its Air Traffic Controllers as a critical resource which is vital for their survival and they cannot operate without such a calibre of employees readily available. CAAZ have made sterling efforts to retain such employees through lucrative reward strategies as well as flexible employment arrangements that ensure the employees have time at their disposal to engage in other activities. It would thus be rationale to put into place adequate Human Resource measures to retain such employees, due to their strategic importance, since just their departure represents a great loss to an organisation.

 

Blue-collar employees are regarded as those employees whose skills are crucial for the functioning of the organisation, even though the skills themselves are not rare on the labour market. Most blue-collar enter organisations through apprenticeship training because their skills are easily transferable. A lot of companies also hold Training workshops to further enhance the skills of their blue-collar employees so that they become more productive and efficient in carrying out their various duties. This will be part of a productivity-based Human Resource configuration aimed at increasing the overall productivity of the organisation. Human Resource policies should be focused on increasing job-related skills of such employees through coaching clinics and workshops. The potential benefits of their development include greater stability and predictability of a firm’s stock of skills and capabilities, better co-ordination and control, increased socialisation, lower transaction costs and overly increased productivity [Pfeffer and Baron:1988]. Hence it explains the prevalence of internal development in Zimbabwe.

 

Contracting is also a significant factor of strategic Human Resource Management which is literary rampant in Zimbabwe. Many organisations across all sectors of the economy practice some form of employee contracting as a way of militating against an inflated wage bill by redundant employees. Employee contracting is a cost-cutting tool prevalent in almost all companies, but most rampant in numerically flexible firms. Contracting is highly prevalent in Non-Governmental Organisations (NGOs), the construction industry, the manufacturing industry, agricultural industry and some higher learning institutions. The rationale behind contracting is that work might not always be there and there is no need to have permanent employee who will be redundant, otherwise the wage bill will exceed the best-practice level of 33% of total costs. Some organisations’ workload is seasonal and it is rational that they contract seasonally. The departure of contract workers from an organisation do not represent any loss whatsoever as their skills are ubiquitous. Thus the prevalence of contractual work in Zimbabwe is quite justified by the financial rationale behind contractual work.

 

Alliances or outsourcing is another highly prevalent Human Resource Practice in Zimbabwe. This is regarded as a collaborative approach to Human Resource Management. Outsourcing allows organisations to focus much on their core activities and presents an Opportunity to the Human Resource department to concentration developing the core employees of an organisation. Outsourcing also allows firms to decrease their overhead and administrative costs [Williamson: 1975]. Most Zimbabwean organisations do not have a permanently employed financial auditor, but rather they outsource the function to auditing firms because the services are only required once in a financial year. Such is also the case with lawyers; their services are only engaged when an organisation is engaged in a legal case. This situation requires the use of compliance-based Human Resource configuration. Such employees should only comply with the orders they would have been given otherwise a new service provider is sought This has led to the success of firms like Ernest and Young as well as Price Water House Coopers, both auditing firms. Most organisations do not have permanent posts for supporting service like cleaning and security and rely mostly on outsourcing. The prevalence of this practice is largely premised on cost-cutting and avoiding administrative hustles associate with having a higher employee contingent.

 

However laudable the concept of Strategic Human Resource Management Architecture might be to the field of academia as well as the highly ambitious practitioner it is not always the case on the ground in Zimbabwe. Zimbabwe has the most educated people in Africa coupled by very high levels of unemployment it automatically spells employment disaster. This might mean that Zimbabwean organisations can only practice fragmented Human Resource Management Architecture as there is no apparent impetus to fully embrace an apparently expensive approach with no quantifiable results. This has prompted some academics to argue that developing countries are still practicing traditional personnel management under the burner of Human Resource Management.

 

In as much as the concept of Strategic Human Resource Architecture is regarded as a contemporary issue in Human Resource Management it actually leads to sour industrial relations as those regarded as blue-collar employees and contract workers can be disgruntled by the large margin of disparity that exist between them and the knowledge workers.

 

To sum up this discourse it can be said that Strategic Human Resource Management Architecture is a highly prevalent practice in Zimbabwe and even though there are a few instances where it can be criticised there is vast logic in practicing it.

 

 

 

 

 

 

 

 

 

 

 

References

Armstrong, M. [2004]. Handbook of Human Resource Management. London, Kogan Page Limited.

Lepak, D.P. and Snell, S.A. [1999]. The Academy of Management Review. London, Academy of Management.

Lepak, D.P. and Snell, S.A. [2002]. Examining the Human Resource Architecture. London, Journal of Management Sage Publication.

Porter, M.E. [1988]. Competitive Strategy: Techniques for Analysing Industries and Competitors. New York, The Free Press.

Williamson, P. [1981]. www.ithaka.com

www.allafrica.com/shrm/architecture

www.newafricantimes.com/strategic_human_resource_management