Strategic Human Resource

Management

HOW TO DEVELOP AN HR PLAN

By : Marsha Thomas-Frederick

WORKFORCE ANALYSIS SPECIALIST

HR PLAN SPECIALIST
2010:09:22
What is Strategic HRM?

Strategic Human Resource Management

(HRM) is the shaping of the workforce
around the organisation’s business needs
and managing the behavioural changes to
match the desired environmental goals.

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What is Strategic HRM?

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Change in HRM
TRADITIONAL HR STRATEGIC HR

Reactive Proactive

Employee advocate Business partner

Task focus Task/enablement focus

Operational issues Strategic issues

Qualitative measures Quantitative measures

Stability Constant change

How? (tactical) Why? (strategic)

Functional integrity Multi-functional

People as expenses People as assets

Holbeche, 2001, p. 5

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 Change in HRM
TRADITIONAL HR STRATEGIC HR

Focus Employee relations Partnerships with internal and external

customers

Role of HR Transactional, change follower and Transformational, change leader and

respondent initiator

Initiatives Tactical, reactive, fragmented Fast, proactive, integrated

Time horizon Short-term Short, medium, long (as necessary)

Control Bureaucratic-roles, policies, procedures Organic, flexible, holistic

Job design Tight division of labour, independence, Broad, flexible, cross-training, rotational
specialization

Key investments Capital, products People, knowledge

Accountability Cost center Investment center

Strategic Human Capital management MERCER-SBF-SMU Executive

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Programme
Change in HRM
ROLE DELIVERABLE/OUTCOME METAPHOR ACTIVITY

Management of Strategic HR Executing Strategy Strategic partner  Aligning HR and business

strategy ‘organisational
diagnosis’

Management of firm infrastructure Building an efficient infrastructure Administrative Expert  Re-engineering

organisational processes
‘shared services’

Management of employee Increasing employee commitment Employee champion  Listening and responding to
contribution and capability employees ‘providing
resources to employees’

Management of transformation and Creating a renewed organisation Change agent  Managing transformation and
change change ‘ensuring capacity for
change’

Ulrich, 1997, p.25

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Key issues
1. What are the key components of the
strategic direction of the organisation?

2. What is the vision, mission and core

values of the organisation and each
department and section?

3. What Key Result Areas (KRAs) and or

Key Performance Indicators (KPIs) the
organisation has to achieve?
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Situational/SWOT Analysis

Situation Analysis

Internal External Analysis

Analysis

Strengths Weaknesses Opportunities Threats

SWOT Profile

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Sources of Primary/Secondary Data
Organisation’s Strategies
- Strategic Plan
- Budget Estimates
- Key organisational documents, speeches etc.
- Interviews with key stakeholders
Organization's KRAs and KPIs
- Strategic Plan
- Performance Appraisal forms
- Key organisational documents
- Interviews with key stakeholders
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Overarching HR Framework
Competency Methodology
A Competency can be defined as certain
underlying characteristics which a person
possesses which will enable him/her to deliver
superior performance in a position. These
underlying characteristics are of two types;

 Threshold Competencies
 Differentiating Competencies

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Competency Methodology c’td
 Threshold or technical competencies are the
characteristics which any jobholder needs in order to
do a job effectively, such as qualifications and
experience

 Differentiating competencies are those characteristics

that superior performers have but are not present in
average performers. These are displayed by attitudes
and behaviours exhibited.

The ideal employee would have both types of

competencies; hence they would be able to perform at
their best since they possess the knowledge, skills,
abilities, attitudes and behaviours necessary to
perform any task, activity or career.
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Competency Methodology c’td

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How to develop the HR Plan?

Step 1: Select a Model to Guide the

Process

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Why use a Model?
A model an abstract representation of
reality, so it shows the outcome of the
process from the beginning.
It is a guide which allows one to focus on
the main aspects of a phenomenon
It allows for the physical manifestation of
a visionary concept.
It allows one to know and understand the
subject matter at hand.
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How to develop the HR Plan?

Step 2: Conduct a Workforce Analysis

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What is a Workforce Analysis?

Workforce Analysis (WFA) is a systematic

process whereby an organization
identifies the human capital required to
meet organisational goals in the present
and to determine whether the organization
possesses the talent necessary for optimal
functioning in the future

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What is a Workforce Analysis c’td?
Itrequires an understanding of the make-
up of the current workforce and an
investigation into the future workforce.

Itdetermines the knowledge, skills,

abilities, experience and numbers
required at present, where and when they
will be needed, and forecasts future labour
market needs.
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 Understanding Workforce
Composition
What your workforce
looked like before

What your workforce will

look like in the future

What your workforce looks

like now
Why do Workforce Analysis?
Retention
Restructuring

Strategic
HR

WORKFORCE Training
ANALYSIS

Employee
Engagement

Recruitment
Talent
Management
How to do a Workforce Analysis?
It involves three distinct phases:

1. Supply Analysis
2. Demand (or Needs) Analysis
3. Gap Analysis

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How to do a Workforce Analysis
c’td?
Phase I—Supply Analysis: Evaluating the
Current Resources

This phase is generally the easiest because

much of the information has been collected
already somewhere in the organization.

 Evaluating current employee and

demographic data will help identify future
needs as well as a projected workforce
strategy

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How to do a Workforce Analysis
c’td?
Below is a list of the kind of data you will need and some potential
sources of it.

Existing Employee Data.

- Most of the employee data is available to authorized users through the
HRIS

 What are the demographics of your current workforce? (Gender,

ethnic, disabled, full/part time, classified/LTE, etc.)
 How many people are performing each job?
 Where are the jobs located?
 What is the employee/supervisor ratio?
 What are the pay rates of current employees?
 What is the likelihood of attrition through retirements?
 How many people have left the organisation and where did they go?
 How many people have we been recruiting?
 Which jobs have the most/least people and why?
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How to do a Workforce Analysis
c’td?
Phase II—Demand Analysis: Evaluating the
Future Needs
To assess future needs, determine the answers to the following
questions:
 How essential is each job?
 What job functions, if any, could be consolidated?
 How many people are needed in the future to perform each job?
 What knowledge, skills, competencies and abilities (KSA) are
needed to perform anticipated job functions?
 What technology changes will be made?
 What processes could be done more efficiently or effectively ?

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How to do a Workforce Analysis c’td?
Phase III—Gap Analysis: Comparing Supply
and Demand
This phase can be completed in a fairly
straightforward manner. Simply take the
demand analysis results and match them to your
supply results. Any mismatches indicate either a
projected unmet need or a surplus, either of
which presents a challenge.

To fill the gaps between current resources and

future needs, use the results of the other core
components of your workforce analysis to craft
possible solutions.
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 Workforce Analysis Methods

ANALYSIS DATA SOURCES STATUS CHECKS METHODS

Demand Forecast Budget, projected labour outlook, projected
retirements, organisational and strategic plans,
organisational design, organisational size
New programmes, changes in
technology, changes in strategic
plan, pending legislation, changes in
business processes, conditionalities
of external agencies ( IMF)
 Method
 Staffing Table Approach
 Regression Analysis
 Time Series Analysis
 Linear programming

Supply Projection Employee profiles, organisational
budgets, job descriptions
charts, Strategic objectives, technology,
current skills sets, current job
classifications, sources of HR
metrics, quality, efficiency, ethics,
equity
 Skills Inventory
 Replacement Charts
 Succession Planning
 Flow Modeling/Markov Analysis
 Computer simulations

Feasibility Budgets, current strategic plan, SWOT analysis Managerial attitudes, change  Cost benefit analysis in both
orientation, organisational culture, qualitative and quantitative terms
Employee Satisfaction Survey
Purpose of a WFA in an HR Plan
It allows one to identify the key strategic
areas of focus upon which to build the plan.
It makes HR more scientific since the plan is
built upon data driven evidence.
It allows HR to be more strategic since HR
interventions will be linked to HR issues
which will be addressed in the HR Plan.
Action Planning will be tailored to current
HR realities and aimed at addressing the core
HR challenges rendering greater likelihood
for successful implementation.
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How to develop the HR Plan?

Step 3: Review Organisation’s

Strategic Direction

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Review of Organisation’s Strategic
Direction
Review of vision, mission , core
values as well as primary and
secondary data sources to yield the
following;

 Situational Analysis
 SWOT Analysis
 Organisation’s Strategies
 Organisation’s Key Result Areas
 Organisation’s Key Performance Indicators

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How to develop the HR Plan?

Step 4: Review Organisation’s Internal

HR Processes, Procedures and
Systems

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Why do Internal HR Review?
There is the need to gain an appreciation
for the organisation's current HR
Processes, Procedures and Systems since;
These will be strengthened and built upon in the
HR Plan
Identifies priority areas upon which to allocate
resources
Is part of the HR Architecture to aid in the
realization of strategic goals and initiatives
Is a prime indicator of whether there is any
strategic HR in the organisation.
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How to develop the HR Plan?

Step 5: Building the HR Plan

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Building the HR Plan
Each Strategic Area of Focus (SAF) as
identified in the Workforce Analysis is
then developed to show its objectives,
strategies and timelines.

A system of HR Measurements are

developed to aid in tracking
organisational performance with respect
to achieving the SAF as identified.
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 Ensuring Closure of the HR Plan
A detailed Action Plan involving the
breakdown of each SAF is then developed
with a focus on activities, deliverables,
results/impact, who accountable/responsible
for the activities as identified.

An implementation strategy is then crafted

A proposed costing for the plan is then

undertaken 33
 CASE STUDY EXAMPLE

Developing a Strategic HR Plan

for an entire Public Service
Organisation in the
Commonwealth Caribbean.

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Context of Project
Conceived due to Government's need to
reform and modernise the Public Sector
which is a critical success factor for
growth and development of the economy.

Ability to enable the improvement of the

country’s competiveness – regionally and
internationally – by nurturing a new
culture of productivity and results-based
performance
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Aim of HR Plan
To ensure that staff is equipped with the
requisite skills, knowledge and attitudes
to ensure improved efficiency,
productivity, quality and innovativeness
both in respect of current needs, and those
anticipated in the future as a result of
economic, social and political change.

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Pre-work leading to Plan
An HR Audit on the Public Service was
done with the following results;
Review of Human Resource Policies
Personnel Files Review
Performance Management/Appraisal
HR Processes
Hiring and Orientation Procedures
Skills Gap Analysis – spreadsheet of
demographic data arising from personnel
files review
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Key Objective of HR Plan
To bring the deliverables of the HR Audit
to life by providing the strategic approach
to HR as the context, and alignment of the
current organisational HR systems,
practices, processes and policies with
novel approaches which when combined
would then contribute to the culture
change necessary for the achievement of
Government’s goals and objectives.

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Step 1: Selection of Model

The results-based, performance-

driven, competency-adept model
was utilised to create the linkages
between the strategic HR
function and the organisation’s
business goals and objectives.

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The Model
Strategic Direction Planning the Total Workforce
HRM System
The strategic direction & Deciding the numbers and competence of
outcomes that the organisation Shaping HRM for
organisational success personnel the organisation requires
seeks to achieve

COMPETENCY &
RESULTS BASED
PERFORMANCE

Assessing and Sustaining Organisational

Competence & Performance Generating Required Human Resources
Measuring the organisation’s progress towards its desired Attracting, assessing and initially assigning the people
outcomes and adjusting the system accordingly needed in the organisation’s total workforce

Investing in Human Resource Development & Performance

Developing & reinforcing competence and performance in individual groups and teams in the organisation’s total workforce

So u rc e : A Stra te g ic Hu m a n R esou r ce Ma n a ge m en t Sy st em f or t h e 2 1 st Cen tu r y . N a v a l Per son n e l 40

T a sk Force, Se p t e m b er 2 0 0 0 (A d a p te d )
Step 2: Conduct a Workforce
Analysis
Key inputs;
1. Skills gap Analysis spreadsheet which was
reconfigured by adding additional fields and
mathematical formulae to aid with
calculations.
2. TheHR Audit Report which detailed a
review of the corporate plans, organisational
charts, job descriptions, key result areas,
vision for the next three years for ministries
and department and the Employee
Satisfaction Survey results which lends to an
understanding of the organisational culture.
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Key Inputs to WFA
3. The approved 2009/2010 Budget for the
Country.

4. Major documents detailing the

Country’s and Public Sector strategies.

5. Findings of the HR Forecasting Survey –

a data collection instrument developed
for the Workforce Analysis

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The Supply Analysis
Key findings;
Total number of employees
Departments with the highest/lowest
number of employees.
Gender Profile of the workforce
Age Profile of the workforce
Years of service of employees
Absenteeism analysis across
ministries/departments.
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The Supply Analysis c’td
Number of Vacancies
Distribution of Vacancies
Most and least Populated jobs
Separation
Termination vs. Hires
Hires by Contract

Each of these key findings was married with

relevant HR theory to highlight Strategic
Areas of Focus
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The Supply Analysis c’td

In addition an analysis was undertaken in

each ministry and department to ascertain
whether the composition and number of
the staff was sufficient to aid in the
achievement of the KRAs of each
ministry and department.

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The Demand Analysis
Arising out of the HR Forecasting Survey
which was done on each ministry and
department for the next three years, the
following resulted;
The position most in demand in the future
The minimal educational requirement for jobs in
the future.
New competencies required
New jobs required

A profile for the future worker emerged

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Gap Analysis
 Analysis of issues arising out of the
Supply and Demand Analysis as well as
an in-depth analysis of numbers and
composition of staff required for the
present and in the future.
Areas where there are vacancies and a
proposed plan for filling these.
Identification of priorities with respect to
Strategic Areas of Focus
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Some of the Strategic Areas of
Focus

Job Analysis
Retention
Recruitment
Succession Planning
Training and Development

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Step 2.1: Development of a TNA
Training Needs Assessment (TNA) was done
by building on the outcomes of the
Workforce Analysis via an instrument
designed linking department’s mission,
KRAs and competencies and linking these to
training needs, types of training and their
urgency.
Findings of the TNA corroborated with
findings of the WFA with respect to
additional competencies and skills required
for the future
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Step 3: Review of Organisation’s
Strategic Direction

The Situational Analysis focused on factors

in four categories; social/legislative,
political, economic and technological.

Availability of resources
Changing governmental priorities
Impact of regional and global initiatives
on the national agenda
 
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Review of Organisation’s
Strategic Direction c’td
Arising out of the Situational Analysis a
SWOT Analysis was undertaken

Key areas upon which to focus for

successful implementation
Key issues which may impact negatively
on the initiative.
Identified areas which could improve
organisational effectiveness
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Review of Organisation’s
Strategic Direction c’td
The Strategic Direction of each ministry
and Department was ascertained since
each ministry and department has its own
vision, mission, core values and Key
Result Areas (KRAs).
Strategic areas upon which to focus to
improve service delivery
Identification of change management
initiatives to help create a common Public
Service culture
Development of major initiatives to aid in
employee engagement 52
Step 4: Review of Internal HR
Systems
Overview of HRM System
Recruitment and Selection
Performance Management System
Training and Development
Compensation
Other HR Systems
HRIS

Current HR Systems show some leaning

toward Strategic HR
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 Step 5: Building the Plan
Prioritised Strategic Areas of Focus (SAF)
broken out to show objectives, strategies and
timelines.
Some of the SAF were identified as Main
Interventions since these were necessary to
inculcate the changes necessary to create
efficiency, and performance
Others were deemed Cross Cutting Interventions
since these created the behaviour change
necessary for the successful implementation of
the HR Plan. These are a feature throughout
each intervention and is carded for the lifecycle
of the implementation of this HR Plan
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Building the Plan c’td
HR Scorecard and HR Strategy Maps
were created specifically for the Public
Service Organisation to assist them to
identify and link the key HR Metrics with
specific outcomes.
A detailed Action Plan was developed to
link activities from the HR Plan to key
deliverables. In addition it specified who
was accountable and responsible for the
various activities and outcomes.
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Building the Plan c’td
An Implementation Strategy was
developed to breathe life into the Action
Plan by creating a visual image of how
the plan should occur.

Each strategic initiative and its various

activities were then ascribed an element
of costing to assist the client with their
resource allocation.
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THE END

Any questions?

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