Strategic Planning, Training and

Organizational Development

Kamal Uddin Ahmed Ph.D.

NSU, MBA, HRM 603

Summer
Summer2016,
2016,Friday
Friday13
13May
May16
16

Planning

Understanding the value of having a

plan of action before starting a project.
additional time for planning at the
beginning of a project
Save time, prevent mistakes and
ensure all important steps.
The cornerstone for quality programs
"plandocheck" cycle.
Large organization or single
department, planning is a key to
organizational success.

Strategic planning
development of long-term objectives
and plans for pursuing an organizations
mission.
provides direction to all units of an
organization.
HRD department reference the strategic
plan to determine priorities for developing
employee KSAs.

Mutual support
Functional areas provide valuable
input to shape the development of
Strategy.
Though HR and HRD function both
directed by organizational strategies,
they should also help shape their
content.

Strategy development
Planning of strategy occurs throughout the
organization, with
each higher level of the
organization providing direction to the lower
levels.
Strategic plan development process is similar
whether strategy is developed for entire
organization or for some subunit.
Differs in the type of information collected and
analyzed to develop strategy and level of details
provided in directing actions.

Strategic coordination
Strategy provides direction to the individual units
Units develop objectives to accomplish strategy.
To accomplish objectives units develop their own
strategies/tactics.
Individuals within unit are given objectives to achieve
unit objectives through chosen tactics.
When viewed from the HR unit, the strategy provides
general direction that leads to the objectives for HR.
These objectives require supporting tactics.
Tactics lead individuals to achieve a set of objectives.
This way, plans provide direction to fulfill organization's
mission and are developed and coordinated throughout
the organization.

Linkages among Strategy,

Tactics and Objectives
Competitive
Strategy :

Mission
Opportunities
Threats
Strengths
Weaknesses

Tactical Activities

Unit
Objectives

Unit
Strategies
and Tactics

Implementation, Evaluation, and Feedback

Employee
Objectives

HRD in Strategic planning

Why did HRD is needed to be involved in shaping
strategy?
One reason : strategies depended heavily on the
competencies of upper Management.
Without knowing current capabilities of individuals,
company does not know whether it has the
capabilities to implement the strategy successfully.
HRD can and should be involved with strategic
planning at three levels: organizational strategy, HR
strategy (tactics), and HRD strategy (more tactics).

HRD - case
At organizational level, HRD can contribute to
shape organization's competitive strategy.
In any case : divisional staffs ability to carry
out strategy is seen as a problem.
Any org can decide to go ahead with her
strategy, but would it be better served by
adopting a strategy that matched more
closely the KSAs of their staff ?
Have they identified right people for key
positions to get them in place.

 If not enough people with desired

competencies alternatives ?
Hire people from outside?
Train high potential insiders?
Answers to these questions help
to define objectives and tactics
used in pursuing organization's
competitive Strategy.

HR strategy
HR function needs to create a succession
planning process and a corresponding
executive development program for those
identified as successors.
Before committing to this strategy, HRD
manager needs to be consulted to determine
probable cost and time parameters of such a
program.
This HR program will depend on a human
resource information system (HRIS) that
provides accurate and meaningful data
necessary for HR planning.

HRD strategy

Assuming any org continues current strategic

direction, what are the implications for HRD
strategy?
How to determine competencies of executives?
If conduct a needs analysis, how to store and
review information?
Clearly, development of the HRIS is an important
first step.
If they decide to develop their current executives,
should these executive development programs be
centralized at corporate HR or decentralized to the
regions and divisions?

HRD strategy
Should they be developed inhouse or
farmed out to firms specializing in
executive development?
How does executive development fit
into the culture of the organization ?
The answers to these kinds of
questions provide the content of an
HRD strategy.

 Strategic planning and strategy implementation

involve change.
HRD must understand change process,
It involves principles and concepts of OD.
OD uses the research base and techniques
related to organizational improvement and
managing change.
When organization's objectives and strategies
change, KSAs required of employees change
as well.
It is not enough simply to provide new KSAs.
Organization's systems and procedures must
change to support use of the new KSAs if
desired the change in performance is to occur.

Manage change
What types of systems and procedures
must change if the strategies are to be
successful?
The reward system?
The field of OD provides processes for
identifying when systems and procedures
need to change and how to manage the
change.

Strategic Planning Process

Similarities among HRD
departments
Process of developing and
providing training should be
similar across organizations
But many differences exist among
organizations

Mission
Why organization exists and
its commitments
Focal point for strategy
development
Outlines what the strategy is
designed to achieve

Strategy
How an organization is going about
accomplishing its mission.
Attempt to optimize the match between
what is occurring or is projected to occur
in the external environment and the
organizations internal operations
Short and long term objectives,
courses of action to achieve those and
allocating resources to carry out actions.

Competitive strategy
Concerns positioning the company in
the marketplace
Interrelated internal and external
choices made by the company to
improve or retain its competitive position
Documented relationship to many
aspects
of
managerial
and
organizational behavior

Competitive strategy
Market leader :
Prospectors and innovators
Find and exploit new pdts and mkt
opportunities
Survey wide range of environmental
conditions, trends and events and
move quickly into windows of
opportunity

Competitive strategy
Market follower :
analyzer and differentiator
Minimizes risk and maximizes profit
opportunity by moving into a market after its
vitality is established by others
Copying and improving upon pdts with an
established market
Middle portion of the competitive strategy
continuum

Competitive strategy
Cost leader :
Defender
Low cost provider in the industry
Success depends on pricing competitiveness
Having a pdt that is acceptable to the mkt
Produce a standardizised pdt or svc efficiently
by using economies of scale, low cost labour
Introduce innovative pdtn methods

Strategic contingencies
Success of CS is contingent upon demands
of external environment and factors internal
to organization
Strategy is the process of making internal
adjustments to accommodate the demands
of the external environment while remaining
true to the mission
External strategy requires an internal
strategy to be developed and implemented

Matching factors
Internal strategy (IS) reflects how the org must
change in order to carry out the CS
Key factor of IS
Org Structure (div of labor, policy, procedure)
Core technology (how pdts & svcs created)
Core tech is critical to implementing external strategy, it
can influence strategy that is adopted
When CS is not consistent with CT, one of these factors
must be changed
External and internal strategies are aligned to maximize
the match between environmental demands, CT & the
org structure

Mission, Strategy, Technology,

Structure Relationship
Environment

External

Internal

Strategy

Strategy

Mission

Technology

Structure

External Environment
Elements outside the org that influences
orgs ability to achieve its mission
Competitors, economy, societal norms and
values, laws and regulations, raw
materials, suppliers, technological
innovations
A factor important for one org may not be
so for another, even if in same industry

External Environment
Orgs differ mission, resources, operation
Each org must examine env for threats and
opportunities
Success of a CS can be significantly influenced
by the uncertainty of env
Envl uncertainty : Complexity and Stability
Complexity : number of factors in the env and
how interrelated they are
Stability : rate at which key factors in the env.
Change. Rapid change more unstable

High

High

Low

Moderate
uncertainty

High
uncertainty

Low

Low uncertainty

Moderate
uncertainty

Factors influencing environmental uncertainty

Environmental uncertainty
More uncertain env org must be flexible
and adaptable Market leader strategy
More certain env less flexibility, so
rigid operating method minimizes cost and
maximize profitability cost leader
strategy
Uncertain env favors decentralized DM
Certain env- certain DM

Core technology
Technology how work gets done in Org
Core tech.-main activities associated with orgs pdts and
svcs
Routine to Nonroutine technology
Routine : Highly predictable, few problems, well
structured and well defined solutions if problem occur
cost leader str
Nonroutine : difficult to predict, problems occur
unexpectedly, solutions not readily available
Employees need more DM capability, higher level KSAs
Market Leader str : dev and pdn of new pdt is the key
Software and computer chip manufacturers

Organizational structure
How a firm is organized, policies and procedures for
coordinating activities
Utilized to carry out strategy
Must be aligned to address both strategic envl factors
and the Core Technology
Org Design : Mechanistic, Organic
Mechanistic : rigid, highly defined tasks, detailed procedures,
vertical comm. Channel routine technologies
Organic : flexible rules, loosely defined procedure, highly reliant
on experts non routine technology

Decision autonomy : How much authority given

Division of labour : the way work is divided :line and staff

Relationship between Competitive and Human Resource Strategy

External Environment

Competitive
Strategy

Labor market

Production Technology

Corporate
culture

Human
Resource
Strategy
Economic
Condition

Labor Relations Climate

Employee KSAs

Thanks
for your
patience