HUMAN RESOURCE INTERNATIONAL PLANNING

Context
1. STRATEGIC IMPORTANCE FOR HR PLANNING FOR ALIGNMENT AND CHANGE Alignment Organizational Change-Degree of change and Timing Change 2. HR PLANNING AND CHANGE PROCESS Scanning Objective and metrics Plans and Timetables 3. IMPLEMENTING THE HR ACTION PLANS FOR ALIGNMENT: FACILITATING CHANGE 4. REVIEW AND REFOCUS 5. Summary

1. STRATEGIC IMPORTANCE FOR HR PLANNING FOR ALIGNMENT AND CHANGE

In order to succeed under new competitive conditions, the company changed its vision, values, structure, strategy, and even its corporate culture.

To encourage and support the behaviors required in the new organization, many of the companys HR policies and practices had to be changed.

1. STRATEGIC IMPORTANCE FOR HR PLANNING FOR ALIGNMENT AND CHANGE (contd)

Alignment Human Resource policies and practices facilitate the behaviors and competencies needed for organizational success, the HRM system, and the needs of organization, the HRM system is in a state of alignment.

Vertical alignment Horizontal alignment

1. STRATEGIC IMPORTANCE FOR HR PLANNING FOR ALIGNMENT AND CHANGE (cont)

Vertical Alignment exists when the HRM system fits with all other elements of the organizational environment-the culture, strategy, structure and so on. Example:
Horizontal Alignment exists when all the HR policies and practices that comprise the HRM system are consist with each other so that they present a coherent message to employees

Also we have to understand about the Types of Organizational Change?

Because an organizations can undergo many types of planned change, which vary in both degree and timing.

1. STRATEGIC IMPORTANCE FOR HR PLANNING FOR ALIGNMENT AND CHANGE (contd)

Types of Organizational Change Degree of Change Radical change: when organizations make major adjustments in the ways they do business, it usually creates the need for radical change. Incremental change: is an going process of evolution over time, during which many small changes occur certainly. Timing of Change in addition to the differences in the magnitude of change are differences in the timing change. Reactive change-occurs when an organization is forced to change in response to some event in the external or organizational environment. Anticipatory change-When an organization takes action in anticipation of upcoming events or early in the cycle of a new trend.

2. HR PLANNING AND CHANGE PROCESS

Roles and Responsibilities for HR Planning alignment and Change
Line Managers HR Professionals Employees

Systematically san and assess the environment to help establish specific strategic objectives. In early phases of planned change, provide information about the current external and organizational environments and help forecast likely changes Share information with and involve HR professionals during development of plans, including development of metrics and timetables for evaluating change Participate in the process of evaluating and revising change initiatives.

Participate in environment scanning and assessment to gain an understanding of specific strategic objectives. Manage HR planning activities, including forecasting of labor needs and suppliers and identification of the HR implications of planned changes. Develop detailed HR objectives, plans, metrics, and timetables for strategic change

Monitor and seek to understand the environment and its potential implications for the company Provide input during early phases of planning for change as needed

Provide input during the development of HR plans. Approach change with a positive attitude rather than resistance. Participate in the process of evaluating change and making adjustments as needed.

Assist in conducting evaluating of change initiatives, interpreting the results and revising plans accordingly

2. HR PLANNING AND CHANGE PROCESS (cont)

The Elements of Human Resource Planning

The human resource planning refers to the activities associated with Scanning Objective and metrics Plans and Timetables
What is HR Planning ? The activity of planning human resources usually in connection with the overall strategic planning of the organization. Why HR planning? To provide linkage between different HR functions, compensation, benefits, staffing etc and overall strategic goals of the organization.

Steps in Strategic Business and HR Planning for Alignment and change

Detailed list of part 2

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HR PLANNING AND CHANGE PROCESS Judgmental Phase 1- Scanning HR forecasts Mathematical Employees opinions
Employees surveys Focus groups Involving employees in developing plans

Behavioral cause -and -effect models

HR metrics Balanced Scorecard

Phase 2- Objective and metrics

Benchmarking,

Phase 3- Plans and Timetables

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2. HR PLANNING AND CHANGE PROCESS (cont)

Scanning This is the first phase of the planning process, and importance of systematically and continuously scanning and assessing the external and organizational environments.

Steps in Strategic Business and HR Planning for Alignment and change

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment The external environment encompasses local, national, and multinational conditions that confront an organization. Economic conditions Political landscape Industry Dynamics Labor Markets Country Cultures Organizational Environment refers to conditions within the organization itself. Technology Company culture Strategy

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment

An assessment of the external and internal environments is often referred to as organizational analysis. The aim is to fully understand the current environment before taking action. Three common HR methods used during organizational analysis are HR forecasts, employees opinions, and behavioral cause -and -effect models.

More detail in next slides

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment

HR Forecasting The use of information from the past and present to identify expected future conditions. Forecasting efforts focused on: Developing estimates of how many people with which competencies would be needed Forecasting the likely supply of people and skills and Implementing plans to ensure that the right number and type of people was expected to exceed the projected needs, downsizing plans might be developed.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Forecasts two commonly used methods are:

Judgmental Mathematical

Judgmental: Rely on the opinions of informed experts (usually mangers), who provide their estimates of current and projected productivity levels, market demand, and sales and, as well as current staffing levels and mobility information.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Mathematical: Rely heavily on objective data and formal models.
Example: Statistical forecasting could be used to determine how long it would take to reduce the work force by 15% through normal attrition.

Statistical regression analysis Simulation models Productivity ratiosunits produced per employee Staffing ratiosestimates of indirect labor needs Forecasting Periods Short-termless than one year Intermediateup to five years Long-rangemore than five years

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Employees Opinions

Opinions about both problems and potential solutions can be helpful when planning for change.
Three way: Employees surveys Focus groups Involving employees in developing plans

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Employees Opinions (contd) Employees surveys are one method for finding out employees opinions. The of the survey depends on the areas of most concern to the organization. Example: Yum! Restaurant uses an employee survey to assess the state of the organizations culture in order to determine whether any managerial actions
Leadership Survey to Assess Companys Culture Questions (example)
1. Leadership Our emplyees know our organizational mission (what we are trying to accomplish) Our Leadership team shares information about the organization 2. Strategic Planning As our leadership team plans for the future, we ask our employees for ideas Our employees know hoe the parts of our organization's plans will affect them and their work
Strongly disagree Neither Agree nor Disagree Strongly Agree Disagree Agree

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Employees Opinions (contd)

Focus group small number of employees to discuss a specific issue during a conversation guided by trained facilitator.
Involving Employees in Developing Plans is another way to ensure employees views are taken into consideration is by involving employees directly in the development of the HR plans. Example: Unilever BestFoods, employees opinions can be more than a source of diagnostic information they may also from the basis of a plan to address strategic business issues,

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Behavioral Cause-and-effect models Behavioral cause-and effect model can be used to provide a more detailed understanding of how organizational outcomes and interest. Example: if pharmaceutical companys strategic business objective is growing revenues, developing innovative drugs, in turn, requires managing research and development (R&D) teams effectively. Behavioral cause-and-effect model could be used to understand the attitude and behaviors that contribute to the success of R&D teams that develop new products. And also show direct links between specific HR practices and measures of organizational performance.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -First phase is Scanning of External Environment and organizational environment
Example: Behavioral Cause-and-effect models
Clear Direction Employees understand the business priorities and agree with the business plan

Long-term orientation Employees believe the Company is striving for Long term success and Direct their own efforts

Belief in the use of Brand equity Employees use brand equity statement as a basis For their actions on a regular basis

Business Unit Effectiveness Brands gain market share Profitability increases Customer loyalty is strengthened

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Second phase is HR Objective and metrics HR objectives state in quantitative or qualitative terms what is to be achieved with regard to the firms human resources.

Steps in Strategic Business and HR Planning for Alignment and change

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2.HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Second phase is HR Objective and metrics Strategic Business objective help focus attention on several important aspects of managing employees, including The number of employees that will be needed as a consequence of anticipated growth or decline New competencies and behaviors that will be required as a consequence of aspiring to provide higher quality customer service Higher levels of productivity needed as a consequence of identifying the reduction of operating costs as an objective. Example: At Unilever BestFoods, the companys international growth strategy stimulated a discussion about how to ensure the company would have the global leaders it would need to succeed in the future. At P&G one of the strategic business objectives that drove change efforts was rebuilding market share for its leading brands.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Second phase is HR Objective and metrics

HR Metrics. One way to gain managers acceptance of the HR metrics used to track the success of change efforts is to use HR metrics that are similar to other so called bottom line measures. A human capital return on investment (HR ROI)

C ROI A B
A = Operating costs for a new or enhance system for the time period B = One-time cost of acquisition and implementation C = Value of gains from productivity improvements for the time period

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Second phase is HR Objective and metrics

Economic Value Added (EVA) A firms net operating profit after the cost of capital (required return) is deducted. Cost of capital is the benchmark for returns for all HR activities. HR and the Balanced Scorecard- a measurement framework that helps managers translate strategic goals into operational objectives

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Second phase is HR Objective and metrics

Balanced Scorecard will help you evaluate performance of HR managers and find solutions to problems. Once you enter all data, you will see graphs and values in percents which will indicate how well HR department is performing. With Balanced Scorecard you will be able to evaluate all KPI (Key Performance Indicators) to see what needs to be improved. Benchmarking Comparing specific measures of performance against data on those measures in other best practice organization.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Second phase is HR Objective and metrics Assessing HR Effectiveness
HR Audit -A formal research effort that evaluates the current state of HR management in an organization Audit areas: Legal compliance Current job specifications and descriptions Valid recruiting and selection process Formal wage and salary system Benefits Employee handbook Absenteeism and turnover control Orientation program Training and development Performance management system

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Third phase is building HR plans and Timetable HR plans can be thought as a blueprints action; they specific who needs to do what, where and how timetables specify when each planned activity will be completed.

Steps in Strategic Business and HR Planning for Alignment and change

HR planning should parallel the business planning process.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Third phase is Building HR plans and Timetables

Addressing strategic business objectives such as the need to reduce costs usually requires multipronged solutions, thus comprehensive HR plan for change is likely to have many components, just as a companywide plan for change has many components. To illustrate what some of the components of an HR plan might be HR activities: Staffing plans, training plans, and leadership development..

Describe
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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Third phase is Building HR plan

Staffing plans the plans for staffing arise out of forecasts about future labor demand and supply. Talent management plans is refers to a list of employees who have been identified as having high potential for advancement usually because they are top performs in their current positions. Training plans to help managers perform in their new roles, the HR group developed a leadership framework and offered to train interested managers.
At P&G, the need for better skills among marketers was met with a plan to develop a marketing university. Now employees can attend several one week colleges that focus on developing the competencies needed for new job assignments.

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2. HR PLANNING AND CHANGE PROCESS (cont)

HR Planning -Third phase is Building HR plans and Timetables

Timetable Change is tough work that often involves making difficult and sometimes painful decisions. Building in deadlines and scheduling checkpoints is one way to keep the change process moving ahead. The challenge is to set deadlines that are challenging but achievable.

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2. HR PLANNING AND CHANGE PROCESS (cont) Benefits of HR Planning

Better view of the HR dimensions of business decisions Lower HR costs through better HR management. More timely recruitment for anticipate HR needs More inclusion of protected groups through planned increases in workforce diversity. Better development of managerial talent

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3. IMPLEMENTING THE HR ACTION PLANS FOR ALIGNMENT: FACILITATING CHANGE

Involving Employees This is the important role for HR professionals during the planning implementing planned action in which HR professionals find ways to involve people.
See funny

Establishing Accountability When specifying objectives, it is important to state not only what is to be achieved, but also who is responsible for making the needed changes.

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4. REVIEW AND REFOCUS

Human Resource plan almost complete Overall objectives for the change effort are not likely to be changed at this point, but new goals might be added and timetables might be adjusted. Review the original plan

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Summary

The dynamic external environment often creates the need for organizations to do things differently, requiring new strategies and new strategic objectives. As the environment changes, organizations also change, thus HR activities need to be correctly aligned with these changing condition, Human resource planning refers to the systematic efforts of firms and HR professionals to identify and respond to the short and long term human resource implications of a companys strategic business objectives created by the changing environment. The several phases of HR planning include assessing external and organizational environment, HR objective and metric, HR plans and timetable. A comprehensive HR plan for strategic change is likely to address a variety of HR activities, including staffing, training, leadership development.

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Summary (contd)
Effective HR planning, aligning and changing improve the ability of organizations to satisfy customers while also addressing to concerns of other stakeholders. The HR planning, aligning and changing, in turn, require an understanding of specific HR policies and practices and their impact on employees.

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REFERENCES
Bohlander-Snell (2007), Managing Human Resource Randall S.Schuler, Susan E.Jackson (2006) Human Resource Management Robert L.Maths, John H. Jackson (2005), Human Resource Management Scored Metrics for Human Resource (2007-2010) 2005 Thomson Business & Professional Publishing. www.google.com www.hr-scored-metrics.com

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THANK YOU FOR KIND ATTENTION

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