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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
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.
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 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
Because an organizations can undergo many types of planned change, which vary in both degree and timing.
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
HR PLANNING AND CHANGE PROCESS Judgmental Phase 1- Scanning HR forecasts Mathematical Employees opinions
Employees surveys Focus groups Involving employees in developing plans
Benchmarking,
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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.
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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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