Human Resource Planning Process Assignment
1 Describe the strategic planning process.
2 Explain the human resource planning process.
3 Describe forecasting requirements.
4 Summarize forecasting human resource availability.
5 Explain what a firm can do when either a shortage or surplus of workers exists.
6 Describe strategic succession planning in today’s environment.
7 Describe the types of information required for job analysis and the reasons for conducting it.
8 Summarize the types of job analysis information.
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9 Explain the various job analysis methods.
10 Describe the components of a job description.
11 Explain the Standard Occupational Classification (SOC) and the Occupational Information Network (O*NET)
12 Summarize job analysis for team members.
13 Explain how job analysis helps satisfies various legal requirements.
14 Describe what competencies and competency modeling are.
15 Summarize job design concepts.
16 Describe the importance of global talent management.
4 Strategic Planning, Human Resource Planning, and Job Analysis Chapter ObjeCtives After completing this chapter, students should be able to:
Learn It If your professor has chosen to assign this, go to mymanagementlab.com to see what you should particularly focus on and to take the Chapter 4 Warm-Up.
The tools we describe in this chapter and in Chapters 5 and 6 provide human resources (HR) professionals with a foundation to harness the capability of a company’s human capital to its competitive advantage. Let’s consider a metaphor to bring the opening sentence to life. Take, for example, your favorite hit movie or television show. Many factors contribute to the show’s success, which we might measure as the size of enduring viewership and awards recognizing excellent talent. Perhaps three of the most important factors to determine whether a show will be successful are the story line, character development and scripts, and casting actors into roles.
From an HR standpoint, the story line can be thought of as a strategy to create a distinctive story that is unique from others, character development and scripts as job analysis and work flow, and casting requirements as HR planning. We take up these topics in this chapter.
strategic planning process As discussed in Chapter 1, HR executives are now focusing their attention on how HR can help the organization achieve its strategic objectives. Thus, HR executives are highly involved in the strategic planning process. In the past they often waited until the strategic plan was formulated before beginning strategic planning, which is the process by which top management determines overall organizational purposes and objectives and how they are achieved.
Strategic planning is an ongoing process that is constantly changing to find a competitive advantage. At times an organization may see the need to diversify and increase the variety of the
Describe the strategic planning process.
strategic planning Process by which top management determines overall organizational purposes and objectives and how they are achieved.
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goods that are made or sold. At other times, downsizing may be required in response to the external environment. Or the strategic plan may see integration, the unified control of a number of successive or similar operations, as their driving force. Strategic planning attempts to position the organization in terms of the external environment. For example, the recent recession showed weakness in the marketplace for some firms, which led to lower company valuations, increased business failures, and firms spinning out or selling off their noncore business units. Forward-thinking companies found opportunities that were not available when business was booming, such as expanding their company through acquisition.1 Companies always need to look for ways to stay competitive, gain market share, and be the first to innovate a new product or service.
Strategic planning at all levels of the organization can be divided into four steps: (1) deter- mination of the organizational mission, (2) assessment of the organization and its environment, (3) setting of specific objectives or direction, and (4) determination of strategies to accomplish those objectives (see Figure 4-1). The strategic planning process described here is basically a derivative of the strengths, weaknesses, opportunities, and threats (SWOT) framework that affects organizational performance, but it is less structured.
Mission Determination The first step in the strategic planning process is to determine the corporate mission. The mission is a company’s continuing purpose or reason for being. The corporate mission is the sum total of the organization’s ongoing purpose. Arriving at a mission statement should involve answering questions such as: What are we in management attempting to do for whom? Should we maximize profit so shareholders will receive higher dividends or so share price will increase? Or should we empha- size stability of earnings so employees will remain secure? In the case of not- for-profit companies, is the focus on extending its humanitarian reach from tragic events in the United States to tragic events in other countries? Certainly, HR can provide valuable assistance in answering these questions.
There are many other mission possibilities. Mission determination also requires deciding on the principles on which management decisions will be based. Will the corporation be
mission Company’s continuing purpose or reason for being.
MISSION DETERMINATION Decide what is to be accomplished (purpose)
Determine principles that will guide the effort
STRATEGY SETTING Specifying and documenting corporate–level strategies and planning
Specifying corporate–level objectives that are: * Challenging, but attainable * Measurable * Time specific * Documented (written)
ENVIRONMENTAL ASSESSMENT External Internal
Determining external conditions, threats, and opportunities Determining competencies, strengths, and weaknesses within the organization
Figure 4-1 Strategic Planning Process
ChaPter 4 • StrategiC Planning, human reSourCe Planning, and Job analySiS 81
socially responsible and environmentally friendly (sustainability)? Will the company be forth- right in dealing with its various constituents such as its customers? The answers to these ques- tions tend to become embedded in a corporate culture and help determine the organizational mission. Top management expects HR activities to be closely aligned to this mission and add value toward achieving these goals. The following is a part of General Mills’ corporate mission:
Our mission at General Mills is Nourishing Lives—making lives healthier, easier and richer.
- We make lives healthier with foods such as yogurt, soups, vegetables and whole grain breakfast cereals.
- We make lives easier with foods that are simple to prepare—we have hundreds of products that can be made in less than 15 minutes.
- And whether it’s a cake for a child’s birthday, a savory snack to help unwind after work or the trimmings for a holiday family meal, we make lives richer with foods to celebrate special moments.2
General Mills also includes two additional objectives: environmental sustainability (Nourishing the Future) and community enhancement (Nourishing Communities). For instance, General Mills uses recycled materials for its product packaging and it regularly contributes money to K–8 educa- tion, respectively.
Environmental Assessment Once the mission has been determined, the organization should assess its strengths and weaknesses in the internal environment and the threats and opportunities from the external environment (often referred as a SWOT analysis). Making strategic plans involves information flows from both the internal and the external environments. From inside comes information about organizational com- petencies, strengths, and weaknesses. Scanning the external environment allows organizational strategists to identify threats and opportunities, as well as constraints. In brief, the strategy would be to take advantage of the company’s strengths and minimize its weaknesses to grasp opportuni- ties and avoid threats. For example, social networking company LinkedIn can capitalize on the following opportunities, which include the growing adoption of LinkedIn’s recruitment services among corporations, growing urbanization, changing attitudes toward employment, and increasing premium subscriptions.3
HR professionals can take advantage of LinkedIn technology and services by connecting to more candidates who subscribe to LinkedIn than would typically otherwise be the case for traditional recruitment methods such as career portals on corporate Web sites, campus hiring, recruitment agencies, and job boards. Also HR professionals are in the best position to identify workforce strengths and weaknesses. Should the company be considering, for instance, a merger or acquisition, HR would be able to work with top management to determine whether the present workforce can be effectively integrated into the workforce of the merged company. For example, does the workforce of the merged company improve the overall value of the company, or is there only duplication of talent? Any reorganization affects people and HR professionals must be in the forefront of people-related matters.
There are always threats that counterbalance opportunities. For example, LinkedIn faces at least two significant future threats.4 Competitors such as Google and Facebook could challenge LinkedIn’s success by offering similar services to customers such as mixing social networking with recruitment services. In addition, although LinkedIn has established a presence in Latin America, South America, and Asia-Pacific regions, the growth in average revenue per customer will be much lower than in the United States because of lower purchasing power of countries in these international regions.