STRATEGIC HUMAN RESOURCE MANAGEMENT

Objectives of SHRP

The overarching business strategy of an organization is linked to the goals of strategic HRP. An organization's performance is mostly determined by two factors: the industry environments in which it operates and its internal strengths and weaknesses. Formulating a strategy requires first analyzing these forces.

Succession planning : It entails the process of identifying and readying individuals for leadership positions that will probably be filled soon. Individuals who exhibit traits of leadership and the appropriate mindset are given the required instruction and training. To guarantee a seamless handoff from the older to the younger generation, succession planning is implemented.

Workforce mobility : It describes an instance where employees are moved from one department or role to another in response to organizational needs. In order to increase a worker's skill set and capacity to manage multiple roles concurrently, cross-training across different job roles is necessary. A bank employee who has received training in all aspects of banking, for instance, can operate the teller, loan, current and savings account and brokerage, demand draft, customer service, and so forth sections. The employee may be asked to take charge of one specific area, depending on the needs of the business on any given day. In this manner, transactions go smoothly and customer service is not impacted.

Employee engagement: Happy workers who are passionate about their work strive to further the organization's goals and reputation. This aids in setting up the ideal environment for workers to put forth their best effort every day and stay inspired to contribute to the success and expansion of the company. Disengaged workers, however, are simple to spot because they put in little effort, frequently get into arguments, and do not perform voluntarily.

Executive leadership: Senior management in an organization always leads by example for lower level staff members. Within an organization, innovative and forward-thinking business ideas are fostered by the executive leadership. This further motivates middle and lower level staff members to take initiative and present their qualifications to executive leadership.

Benefits of SHRP

SHRP is the discipline that emerges when HR planning is combined with an organization's business strategy. The advantages of SHRP are numerous. Among them are:

Development of organizational culture, behavior, and competencies: SHRP outlines organizational culture, employee behavior expectations, and necessary skills and abilities of workers to execute a range of tasks. This promotes openness in the information flow across the entire company.

Operational advantages: SHRP looks for trends and current capabilities in addition to operational requirements. Therefore, appropriate measures are taken in accordance with any shortage or excess of available manpower.

Strategic advantages: Finding methods for creating and preserving core competencies is the primary goal of SHRP, which is an essential component of the overall strategic planning process.

STRATEGIC HUMAN RESOURCE PLANNING PROCESS

The SHRP procedure is a crucial component of an organization's overall strategic planning. The SHRP process is a multifaceted procedure that necessitates a range of actions from an organization. An organization must determine whether its present and future labor needs are in line with its business strategy before launching the SHRP process.

Environment Scanning :

Environmental scanning is the deliberate observation of external elements influencing an organization. By evaluating and monitoring the constantly changing environment and promptly making the necessary changes to the organization's human resources, HR managers can anticipate the impact of these factors on HRP. The following external factors are examined during the environmental scanning process:

Economic aspects These variables include the overall, regional, and local economic circumstances of the nation in which an organization conducts business.

Technological factors: These comprise things like automation, obsolescence, and changes in technology. Factors related to age, education, gender, income, religion, ethnicity, and the size and distribution of the population in the area where the organization works are all considered demographic.

Political and legal factors: These consist of the nation's political climate and legal system in which an organization conducts business.

Social and cultural factors: These comprise the availability of childcare, educational, and recreational resources in the community in which an organization works.

DEMAND FORECASTING :

Forecasting Demand The process of projecting an organization's demand for human resources in terms of both quantity and quality is known as demand forecasting. The forecast needs to be based on long-term organizational goals and the capital that is currently available. When predicting the demand for human resources, pertinent internal and external factors need to be considered. Budgetary restrictions, organizational structure and design, employee turnover rate, production level, introduction of new goods and services, degree of domestic and international competition, laws and judicial systems, technological advancements, and so on are a few of these factors.

Demand forecasting is carried out for a variety of purposes. Nonetheless, estimating the future demand for human resources is the primary goal of demand forecasting. Additionally, it aims to: Determine the quantity of jobs needed to produce the given quantity of goods or services. Find out what kind of employee mix will be needed in the future.

Analyze whether the organization's various departments and divisions have enough employees. Prevent human resource scarcity so that it can be used as needed.

While making job reservations, keep an eye on how closely the organization complies with the law.

An organization's demand for human resources is predicted using a variety of forecasting techniques. These methods could be grounded in a quantitative or qualitative manner.

The process of projecting future human resource supply to satisfy future demand is known as supply forecasting. It illustrates the HR department's capacity to hire the necessary number of workers when needed. Numerous factors, including waste, internal transfers, promotions, absenteeism, adjustments to work schedules or other conditions, etc., are taken into account in supply forecasting. Identify the number of jobs and people who are likely to be available in the future so that the organization can meet its goals and make its plans is one of the many reasons supply forecasting is done. Ascertain the potential employee mix that may be accessible in the future. Examine the current staffing numbers in each of the organization's departments. Avoid a shortage of human resources.

Gap Analysis : Analysis of Gaps Finding any gaps between the supply and demand forecasts is the goal of gap analysis. Redistributing the available workforce can address shortages and overstaffing in the event that supply and demand are in balance. In the event that demand exceeds supply, the organization must hire more personnel. Nonetheless, the organization must take action, such as layoffs, downsizing, and voluntary retirement schemes (VRS), if the supply exceeds the demand.

The use of action programming : Putting gap analysis's recommendations into practice is what action programming is all about. The steps needed to close the gaps—which were noted in the previous step—are completed in this step. These measures can include training staff members to advance their skills, hiring more workers when there is a shortage or cutting back when there is a surplus, etc.

Managing and Assessing : HR plans' performance is evaluated during the controlling and evaluation phase to make sure they are operating as intended or not. An HR plan tells you whether HR operations are carried out in accordance with the allocated funds, deadlines, goals, and established standards. The process of evaluation involves contrasting the actual performance with the standard performance.

STRATEGIC ISSUES IN HUMAN RESOURCE PLANNING

The goal of HRP is to accurately estimate human resources and use them as efficiently as possible within an organization. Nevertheless, there are instances when HRP is ineffective and encounters numerous strategic problems, which could make it more difficult for the organization to implement HRP successfully. These are the explanations for these strategic issues:

Absence of purpose: Organizations occasionally struggle to comprehend the reasoning behind HRP. These companies restrict HR's role. Professionals to the development and upkeep of the pay scale. Ideally, an HR specialist is in charge of drawing in bringing in exceptional candidates and providing current staff with training to boost productivity. But some organizations don't give these HR initiatives enough money to be implemented. As a result, HRP lacks a clear purpose in many organizations.

Absence of support from upper management: This causes problems for HR planners in various organizations throughout their planning initiatives. Top management occasionally fails to communicate their HR needs to HR planners, which results in plans being implemented ineffectively. Thus, it is imperative that the Top management supplies the tools, collaborates, and supports HRP as needed to make it successful.

Absence of initial effort: This causes an HR planner to predict the organization's human resource requirements incorrectly. Additionally, it causes delays in the hiring and choosing procedures. Occasionally, HR planners choose the incorrect applicants for a position because they do not comprehend the importance of the job description and specifications. It is best to begin cautiously by estimating and evaluating the need for human resources before easing into the hiring procedure.

Insufficient coordination with other departments: In many organizations, human resources is handled independently. HR plans are hampered by a lack of coordination within an organization. This is due to the fact that it gets harder to understand what the organization's employees expect of them.

In many organizations, HRP fails as a result of a lack of integration with strategic planning. The creation of HR plans apart from organizational goals is the reason behind HRP's demise. Because the organization's strategic plans depend on the knowledge, abilities, attitudes, and appropriate behavior of its human resources, it is imperative that HRM be integrated with strategic planning. This suggests that effective channels of communication between organizational and HR planners are necessary.