Professional Documents
Culture Documents
[SCIT LIBRARY]
PAUL TURNER
JAICO BOOK
INDEX
PEOPLE FORECASTING
2 THE STRATEGIC HR 4. THE COMPONENT PARTS OF THE STRATEGIC HR FORECAST
OPTIONS
6. CREATING HR SCENARIOS
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GOOD HR PRACTICES IS A MAJOR CONTRIBUTOR TO AN ORGANIZATIONS’ COMPETITIVENESS
o HR PROCESS > HR EFFECTIVENESS > HR OUTCOMES > QUALITY OF GOODS & SERVICES >
FINANCIAL PERFORMANCE
THE FOLLOWING ITEMS ARE ALSO POSITIVE CONTRIBUTION HR CAN MAKE TO STRATEGY:
o WEB ENABLEMENT
o OUTSOURCING
o ORGANIZATIONAL STRATEGY
WEB ENABLEMENT
o COMPUTERIZATION WILL NOT SUBSTITUTE HR’S CLOSE & PERSONAL INTERACTION WITH
THE EMPLOYEES
OUTSOURCING
FUNCTION
ORGANIZATIONAL STRATEGY
o SHRF & HRP ARE TWO TOOLS TO CONVERT HR INTO PRACTICAL WORKING THEORIES
2
HUMAN CAPITAL PLANNING WOULD BECOME A STRATEGIC DRIVER, FOR KEY ISSUE FACING THE
ORGANIZATION IS ENSURING THAT RIGHT PEOPLE WITH RIGHT SKILLS ARE IN RIGHT JOBS AT THE
TIME.
IN ALL ORGANIZATIONAL DECISION MAKING, MAKE SURE THAT PEOPLE FACTOR IS CONSIDERED.
DEMANDS
TO BECOME AN EFFECTIVE BUSINESS PARTNER, COMBINE HRD, HRM & CRM [CUSTOMER
RELATIONSHIP MANAGEMENT]
CONCLUSION:
PROVIDE LINK BETWEEN CORE COMPETENCIES, SHARED LEARNING & SUCCESSFUL STRATEGY. IN
3
THE IMPORTANCE OF PEOPLE TO ORGANIZATIONAL SUCCESS
ORGANIZATIONS HAVE TO GET THE PEOPLE THINGS RIGHT. IF THEY FAIL TO, THE PEOPLE WALK
VALUE FALLS.
[FUNCTIONAL REQUIREMENT] BUT ALSO STRATEGIC VALUE ADDED THROUGH UNIQUE KNOWLEDGE
INSIGHT.
FACTORS SUCH AS PAY OR SKILLS TRAINING. INSTEAD PEOPLE HAVE TO BE SEEN AS A SOURCE
OUR STRATEGIC PLAN IS BASED ON THE ASSUMPTION THAT IF THE ORGANIZATION APPLIED
REASON RATHER THAN EMOTION TO THE FUTURE, EVERYTHING WOULD FALL INTO PLACE.
[GOOD OR BAD] & TRYING TO ALIGN ALL THE PROCESSES OF THE ORGANIZATION IN A WAY THAT
TODAY THERE IS GREATER RECOGNITION FOR FORECASTING & PLANNING, WHICH HAS BEEN
WE PREPARE ORGANIZATIONS TO DEAL WITH THE VERY REAL PEOPLE CHALLENGE THAT THEY
FOR THIS; WE USE STRATEGIC HUMAN RESOURCE FORECASTING [SHRF] THAT IS THE INPUT TO
THE STRATEGY PROCESS & HUMAN RESOURCE PLANNING [HRP] THAT IS THE OUTPUT
BOTH THESE ARE BASED ON THE FUNDAMENTAL ASSUMPTION THAT HR STRATEGY IS ALIGNED TO
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MICHAEL PORTER VIEW OF STRATEGY
[POSITION MEANS GOAL] & THEN MAKE SURE THAT ITS ACTIVITIES ARE AIMED AT
COST LEADERSHIP
DIFFERENTIATION
FOCUS
o AN ABILITY TO ENERGIZE THE COMPANY TOP TO BOTTOM FOR WHAT MAY BE A LONG &
o THE CAPACITY TO OUTRUN COMPETITORS & GET TO THE FUTURE FIRST WITHOUT TAKING
UNDUE RISKS
MAXIMIZED
STRATEGIES & STRATEGIC SETTING PROCESSES THAT ARE RIGHT FOR THEM.
THAT AS COMPETITORS STRIVE TO LEVEL THE PLAYING FIELD CAUSE THE ADVANTAGE TO
DISSIPATE.
STRATEGY SETTING IS NOT ALWAYS THE RESULT OF ECONOMIC ANALYSIS, BUT SHOULD ALSO BE
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HENRY MINTZBERG’S VIEW OF STRATEGY
MAKING
EACH SCHOOL.
BUSINESS STRATEGY?
6
RESPONSIBILITY FOR EVALUATING STRATEGIC
PEOPLE ASPECT
NEED?
7
o WHAT KIND OF MANAGEMENT CULTURE SHOULD
ORGANIZATIONAL SUCCESS?
BE CHANGED?
ORGANIZATION’S MISSION?
HR PLANS
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FROM MANPOWER PLANNING TO STRATEGIC HR
FORECASTING
PERFORMANCE
STRATEGIES
[COMPETENCE]
SETTING
9
BESIDES HEADCOUNT FACTORS LIKE CULTURE,
DEFINITION OF SHRF:
ORGANIZATIONAL STRATEGY
SUSTAINED SUCCESS.
ENVIRONMENT ON PEOPLE.
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SHRF IS INTENDED TO FORM AN INTERVENTION INTO
STRATEGIC HR ACTIVITIES:
STRATEGY
ASPECTS OF STRATEGY
o GAP ANALYSIS
STRATEGY.
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SHRF PROCESS
ANALYSIS
FOR HR PLAN
DEFINITION OF HR PLANNING
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IT IS THE OUTPUT THAT ARISES FROM THE PROCESS OF
ORGANIZATIONAL DESIGN
o QUANTIFIED HR PLANS
o RESOURCE ALLOCATION
o EMPLOYEE COMMITMENTX
o EMPLOYEE RELATIONS
o LEARNING
PART 2
[SHRF]
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THE COMPONENT PARTS OF SHRF
INTRODUCTION:
THEIR INVESTMENTS
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SHRF IS NOT A HR PLAN, WHICH IS THE OUTPUT
TO DIRECTING. IT IS A CONTRIBUTION TO
STRATEGIC THINKING.
o CREATING HR SCENARIOS
o ASSESSING DEMANDS
o ASSESSING SUPPLY
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o MOVING TO THE HRP
STRATEGIC OPTIONS
16
WITHOUT AN UNDERSTANDING OF &
UNDERSTOOD.
17
IN FUTURE-ORIENTED, LOOK OUTWARD FOR
INTEGRATED.
18
THE PEOPLE IN THE ORGANIZATION CAN EXPECT
ORGANIZATION.
IMPLEMENTATION.
19
HR PROFESSIONALS HAVE TO PLAY DUAL ROLE:
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DIRECTORS DISCUSS WHICH OPTIONS TO
CHOOSE.
EACH OPTION.
21
22
CREATING HR SCENARIOS
(date 8.6.09)
CREATIVE THINKING.
CREATING HR SCENARIOS
FUTURE.
A DEBATE ON IT IS INSTIGATED.
PRODUCT?
DRIED UP?
23
o WHAT IF THE WAR FOR TALENT FIZZLED
OUT?
OPTIONS DERIVED
BE PURSUED.
24
THE BUSINESS STRATEGY SETTING PROCESS
PROCESS.
25
CONSIDER POSSIBLE SCENARIOS:
26
o IF OUR COMPANY BECAME A GLOBAL
IT?
27
THE PROCESS OF FOR RAISING THESE
MANAGER
POSSIBLE OUTCOMES.
28
FOR EACH SCENARIO IDENTIFY A RANGE OF HR OUTCOMES
ONCE THE STORY IS SET UP, THE NEXT STAGE WILL BE FOR THOSE WHO HAVE HAD AN INPUT TO
THIS IS AN EXERCISE IN BROADENING THE VISION BEYOND THE ORGANIC & INCREMENTAL.
EXAMPLE:
PRODUCT. THE TIME PERIOD IS TWO YEARS. THE ORGANIZATION HAS NO OFFICE IN ASIA-
PACIFIC REGION.
SALES TAKES OFF 500% OF FORECAST. OR SALES DO NOT TAKE OFF AT ALL.
IMPOSSIBLE
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DEFINE THE SPECIFICS IN RELATION TO PEOPLE ISSUES [COMPENSATION
o THIS IS THE TYPE OF GENERAL & SPECIFIC OUTCOMES WITH WHICH EACH SCENARIO
o THE BENEFIT OF ENSURING THAT EACH OF THE STRATEGY OPTIONS HAS A THOROUGH
ONCE THE POSSIBLE OUTCOMES FROM THE VARIOUS SCENARIOS HAVE BEEN IDENTIFIED, ASK
o WHAT ARE THE RISKS TO & THE POSSIBLE SHOW-STOPPERS OF THESE OUTCOMES
KNOWING WHAT THE RISKS TO THE PEOPLE ASPECTS OF A SCENARIO ARE, & THEN DEALING WITH
IDENTIFY DIFFERENCES BETWEEN CURRENT POSITION OF ORGANIZATION & DESIRED FUTURE POSITION
THE GAPS WITH RESPECT TO ABOVE EXAMPLE SETTING UP A JOINT VENTURE IN ASIA-PACIFIC
THE GAP ANALYSIS WILL FACILITATE ACTION PLANNING ONCE ONE PROJECTED SCENARIO
BECOMES FIRM
ONE OF THE MOST IMPORTANT ASPECTS OF THIS PART OF THE SCENARIO PLANNING PROCESS IS
UNDERESTIMATED
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ONCE THE SCENARIO HAS BEEN WORKED THROUGH, IT IS ESSENTIAL TO REFER BACK TO THE
ATTRACTING, DEVELOPING & RETAINING THE RIGHT PERSONNEL FOR BUSINESSES TODAY IS WHAT
THE ALIGNMENT OF CORPORATE & PERSONAL VALUES SHOULD LIE AT THE ROOT OF ANY
RECRUITMENT EXERCISE
THE SUCCESS OF ANY BUSINESS IS LARGELY RELIANT ON THE QUALITY & COMMITMENT OF ITS
PERSONNEL
TO GROW OUR BUSINESS, WE HAVE TO FOCUS ON RECRUITING & DEVELOPING PEOPLE NOT JUST
FOR OUR IMMEDIATE REQUIREMENTS BUT ALSO FOR THE FUTURE AS WELL. FOR THIS WE MUST
OFFER THEM AN ENVIRONMENT THAT THEY WANT TO BE IN, ASPIRATIONAL & INSPIRATIONAL
CHALLENGING SITUATION.
DEVOTE SUFFICIENT TIME & ATTENTION TO UNDERSTAND & CLARIFY EXACTLY WHAT IS REQUIRED.
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THE NATURE OF THE DEMAND INFORMATION WILL BE BOTH QUALITATIVE & QUANTITATIVE.
o QUANTITATIVE:
HEADCOUNT
GEOGRAPHY
DEMOGRAPHICS
• AGE
• GENDER
• ETHNIC GROUPING
FUNCTIONS
• SALES
• CUSTOMER SERVICE
• TECHNOLOGY
RATIOS
o QUALITATIVE
SKILLS
COMPETENCIES
KNOWLEDGE
TRAINING NEEDS
M & A SKILLS
FUNCTIONAL SKILLS
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o QUANTIFY REQUIREMENTS BY LOCATIONS
SHOW THE REQUIREMENT TO BUSINESS MANAGER. HAVE A DIALOGUE WITH HIM. ENQUIRE WITH
THE FIGURE SO ARRIVED IS NOT FINAL. IT CAN BE REVISED DURING THE COURSE OF PERIOD OF
ONCE THE FINAL FIGURE HAS BEEN AGREED UPON THE FORECAST IS CONVERTED INTO PLANS.
16/04/09
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o ONCE THE DIALOGUE HAS TAKEN PLACE & STRATEGY IS AGREED OR CHANGED, THE
o POPULATION AGES
COMPRISES PEOPLE IN WORK & THOSE ACTIVELY SEEKING WORK. FEMALE ACTIVITY
o AN AGEING WORKFORCE
o SKILL PROJECTIONS
SORT OF CHANGE
THERE IS A CHANGE IN THE ATTITUDE TOWARDS WORK.. ORGANIZATION IS MOVING FROM JOB
CREATION TO WEALTH CREATION, WHICH HAS IMPLICATIONS FOR LOYALTY & DISLOYALTY
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THE IMPORTANCE OF UNDERSTANDING CULTURE
THE CULTURE OF THE ORGANIZATION WILL AFFECT THE CONTENT OF CHANGES RECOMMENDED
o ENCOURAGE TEAMWORK
o ENCOURAGING INNOVATION
o CAPITALIZING ON CREATIVITY
FOLLOWING ARE THE OBSERVABLE WAYS IN WHICH CULTURE SHOWS ITSELF IN ORGANIZATION
o WAY PEOPLE INTERACT, THE WAY THEY ADDRESS, & THE LANGUAGE THEY USE
o THE WAY WORK IS ORGANIZED & CONDUCTED EG. PRODUCTION-LINE ASSEMBLY VERSUS
o THE DOMINANT VALUES IT ESPOUSES THROUGH ITS MISSION STATEMENTS, COMPANY &
PRODUCT LITERATURE
WHAT ISSUES SHOULD BE RAISED IN THE STRATEGIC HUMAN RESOURCE FORECASTING PROCESS?
THE IMAGE THE COMPANY PROJECTS TO THE OUTSIDE WORLD, 7 THE WAY IT IS DISPLAYED IN THE
IN ASSESSING CULTURE IDENTIFY THE POSSIBLE CHANGES THAT MIGHT TAKES PLACE AS A
RESULT OF THE STRATEGIC PLANS THAT ARE BEING FORMULATED EG. MERGERS & ACQUISITIONS
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MANUFACTURING IS TO CLOSED IN ONE COUNTRY & MOVED TO ANOTHER. NATIONAL &
ASSESS THE CULTURAL IMPLICATIONS OF THE NEW BUSINESS STRATEGY. THAT IS FORECAST THE
LEADERSHIP TEAM MUST ENGAGE IN THE NEW CULTURAL REQUIREMENTS & WALK THE TALK
o BUSINESS MEASURES
SATISFACTION & SO ON
o BEHAVIOURAL MEASURES
GAP ANALYSIS
IN THE PAST GAP ANALYSIS MEANT FILLING THE GAP IN TERMS OF HEAD COUNT. BUT TODAY IT
INCLUDES:
o TRAINING
o CULTURE
o SUCCESSION MANAGEMENT
THE ABOVE ELEMENTS ARE OF HIGH PROFILE BECAUSE OF THE WAR FOR TALENT & ITS
IMPLICATIONS FOR RECRUITMENT& RETENTION, & BECAUSE OF THE NEED TO KEEP A FIRM GRIP
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ON COST MANAGEMENT. THE ABOVE ELEMENTS ARE INCLUDED TO GIVE A HOLISTIC APPROACH TO
SHRF
GAP ANALYSIS SHOULD COVER BOTH SHORT & LONG TERM INITIATIVES. IN SHORT TERM, ANY GAP
WILL BE FILLED BY OBJECTIVE BASED REWARD & TRAINING. IN THE LONGER TERM THE FOCUS IS
IN PEOPLE CONTEXT THERE ARE FOUR CRITICAL AREAS IN WHICH GAPS MAY BE IDENTIFIED AS A
o IN THE SUPPLY & DEMAND FOR LABOUR: EITHER AS EXCESSES OF SUPPLY OR EXCESS
OF DEMAND
o DIFFERENCE BETWEEN THE CURRENT CULTURAL MAKE UP OF THE ORGANIZATION & THE
DESIRED FUTURE
EMPLOYEE RELATIONS
PART 2
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THE QUANTITATIVE HR PLAN
o HOW MANY PEOPLE WE WILL NEED OVER THE NEXT 3-5 YEARS?
PREPARE A BASE CASE BY COLLECTING DATA ABOUT PEOPLE WORKING IN THE ORGANIZATION.
THE TWO MAIN COMPONENTS OF THE QUANTITATIVE ANALYSIS ARE DEMAND & SUPPLY.
FOLLOWING ARE THE TECHNIQUES USED TO DETERMINE THE EMAND FOR PEOPLE:
o TREND ANALYSIS
STUDY OF PAST EMPLOYMENT TRENDS OVER THE LAST FIVE YEARS IN ORDER
o RATIO ANALYSIS
IT IS RATIO BETWEEN CAUSAL FACTORS LIKE SALES VOLUME & THE NUMBER OF
EMPLOYEES REQUIRED
o SCATTER PLOT
OBJECTIVE IS TO IDENTIFY THOSE ISSUES LIKELY TO IMPACT ON THE ABILITY TO DELIVER TO THE
o DEMOGRAPHIC IMPLICATIONS
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OUTLINE ANY CHANGES IN THE SKILLS MIX THAT MIGHT RESULT FROM THE ORGANIZATIONAL
STRATEGY
COMBINE ALL ELEMENTS INTO A QUANTIFIED HR PLAN SHOWING FLOWS & GRADE / SKILLS MIX
o ORGANIZATIONAL DESIGN
o ORGANIZATIONAL DEVELOPMENT
o BASIC STRUCTURE
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HOW THE WORK IS DIVIDED & ALLOCATED BETWEEN VARIOUS INDIVIDUALS OR
SPANS OF CONTROL
o OPERATING MECHANISM
ORGANIZATIONAL PROCESS.
THE PROCESS FOR PREPARING THE ORGANIZATIONAL DESIGN & DEVELOPMENT PLAN
BASED]
RAMIFICATIONS]
THE STARTING POINT FOR ORGANIZATIONAL DESIGN IS THE BUSINESS STRATEGY. THE KEY FOCUS
EACH OF THESE HAS ITS OWN IMPLICATIONS FOR THE STRUCTURE OF THE ORGANIZATION.
ONCE THE ORGANIZATION DESIGN HAS BEEN OUTLINED FOR DISCUSSIONS, THE ORGANIZATION AL
THE ORGANIZATION DESIGN SHOULD BE AGREED BY CEO & HIS TEAM MEMBERS
THEN PREPARE A TRANSITION PLAN TO TAKE THE ORGANIZATION FROM CURRENT STATE TO NEW
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o COMMUNICATING NO CHANGE
CULTURAL ISSUES SHOULD BE IDENTIFIED FOR ALIGNMENT PURPOSE. FOLLOWING KEY CULTURAL
CONSIDERED.
o HR SHOULD COME OUT WITH TEAM BUILDING & PERSONAL DEVELOPMENT TECHNIQUES
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o TALENTED PEOPLE CARRY A PREMIUM. HENCE NEED TO RETAIN KEY TALENT
IN RESOURCE PLANNING:
ONE OF THE DIVISION THERE IS A NEED FOR PEOPLE FOR THERE IS A LAUNCH
QUANTIFY THE IMPLICATIONS FOR EACH AREA & DERIVE NET INFLOWS &
OUTFLOWS.
STUDY THE PROPOSALS FOR EACH OF THE ACTIVITIES [COST OF EACH RECRUIT
& EXIST
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o PLANNING FOR DEPLOYMENT & REDUNDANCY
TAKING PLACE.
• LEGAL COMPLIANCE
• POLITICAL IMPLICATIONS
• FINANCIAL PROVISIONS
RESOURCE PLAN
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THE LEARNING, TRAINING & DEVELOPMENT PLAN
IN THE FAST MOVING ENVIRONMENT THE EFFECTIVE HARNESSING & DEVELOPMENT OF PEOPLE
TRAINING PLAN
ROLE OF GOVERNMENT
ROLE OF TECHNOLOGY
ENVIRONMENT
TRAINING NEEDS]
• HOW IS IT DONE:
o SUCCESSION PLANNING
o PERFORMANCE APPRAISAL
o CAREER DEVELOPMENT
• HOW IS IT DONE
ACTION]
• HOW IS IT DONE
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o PREPARING TRAINING SPECIFICATION
• HOW IS DONE:
• HOW IS IT DONE
MODEL
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THE REWARD PLAN
REWARD IS FUNDAMENTAL PART OF THE RELATIONSHIP, BETWEEN THE EMPLOYEE & THE
ORGANIZATION.
REWARD IS NO LONGER JUST ABOUT MONEY, IT IS ABOUT A COMPLEX SET OF OPTIONS THAT
REWARD PLAN IS ABOUT ACHIEVING BOTH THE OBJECTIVES OF THE BUSINESS & THOSE OF
INDIVIDUALS
REWARD PLAN SHOULD BE BASED ON A RANGE OF INPUTS INCLUDING THE BUSINESS STRATEGY &
THE FOLLOWING ARE THE THEMES FOR SHAPING THE STRATEGIC APPROACH TO REWARD:
THE FOLLOWING ARE THE FOUR ELEMENTS THAT ALIGN REWARD TO BUSINESS OBJECTIVES:
BUSINESS UNITS
WHAT ARE THE THINGS THAT EMPLOYEE WILL WANT TO GET OUT OF REWARD
A GOOD PAYER
TERMS & CONDITIONS THAT ARE FELT FAIR TO PAY COMPETITIVE RATES
GUARANTEED EMPLOYEE RIGHTS TO MAINTAIN CONTROL OF OPERATIONS
RETENTION OF RELATIVITIES BETWEEN GROUPS & / TO PROVIDE PAY THAT MOTIVATES & INCREASES
OR INDIVIDUALS PRODUCTIVITY
RECOGNITION OF PERSONAL CONTRIBUTION TO MINIMIZE COSTS
COMPOSITE COMPENSATION: VARIABLE MAKE UP OF
BASIS OF REWARD
• ORGANIZATIONAL DIVISION
• REGIONAL VARIATIONS
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• FUNCTIONAL VARIATIONS
• AGE GROUP
• GENDER
• LEVEL OF RESPONSIBILITY
DIRECT OR INDIRECT
OVERTIME
PENSIONS
BENEFITS
MOVEMENT IN EARNINGS
LABOUR TURNOVER
LEGISLATION
VERTICAL
HORIZONTAL
• ORGANIZATIONAL APPROACH
• BROADBANDING
PLACE
o THEN COMPARE THE EXISTING REWARD SCHEME WITH PROPOSED REWARD SCHEME
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o LOOK AT THE IMPLICATIONS ON REWARD OF THE STRATEGIC OPTIONS THAT HAVE BEEN
o IDENTIFY THE REWARD OPTIONS THAT RESULTS FROM THE STRATEGY. FLEXIBLE
o OUTLINE HOW THE REWARD STRATEGY MIGHT MOVE THE ORGANIZATION FROM CURRENT
TO PROPOSED OPTION.
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o EVERY BUSINESS STRATEGY WILL HAVE AN IMPLICATION ON EMPLOYEE RELATIONS.
INDUSTRIAL RELATIONS
EMPLOYEE COMMITMENT
BY UNIONS.
EMPLOYERS ARE:
OF CHANGE
• REFER TO ARBITRATION
• OR STRIKE
WORKFORCE
o EMPLOYEE RELATIONS MEANS THE OVERALL RELATIONS AN INDIVIDUAL HAS WITH THE
ORGANIZATION.
WORK ENVIRONMENT
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STUDY THE IMPLICATIONS OF EMPLOYEE RELATIONS ON BUSINESS STRATEGY, ESPECIALLY IN
o EMPLOYEE INVOLVEMENT
o PSYCHOLOGICAL CONTRACT
o EMPLOYEE PARTICIPATION.
IDENTIFYING THE INDUSTRIAL RELATIONS IMPLICATIONS FOR WHICH FORMAL AGREEMENT FROM
CONCLUSION:
o COMPETENCY ACQUISITION
o DEVELOPMENT
o KNOWLEDGE MANAGEMENT
o MOTIVATION
o COMMITMENT
o JOB DESIGN
o INVOLVEMENT
o PARTICIPATION
1. PEOPLE
2. OPPORTUNITY
3. THE CONTEXT
4. RISK / REWARD
METHODOLOGIES
EXCELLENTLY
THE END
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