Hope my understanding of your question is clear.
THIS IS A BROAD GUIDELINE.
THE ACTUAL APPROACH WILL VARY WITH:
- SIZE OF THE COMPANY
- NATURE OF THE ORGANIZATION
- SITUATIONAL FACTORS
ETC ETC
In most companies, HRM is part of senior management. HRM makes a contribution to the development of:
- corporate mission statement
- corporate objectives
- corporate strategy.
Normally, the senior management team or TOP management would consist of:
- CEO or managing director
- corporate planning manager
- finance manager
- marketing manager
- manufacturing manager
- sales manager
- supply chain manager
- HR manager
etc.
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STEP 1[a]
TOP management would:
- evaluate the current (last 12 months) performance against the objectives/target set previously, which includes return on investment, profitability, etc. Also, the performance of various departments like marketing, sales, HR, manufacturing, etc.
STEP 1[b]
TOP management will also evaluate the current mission, objectives, strategies, and policies.
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STEP 2[a]
CEO or MD will take the summary of the evaluation of the current performance to the board for review.
STEP 2[b]
Based on the review plus the external environmental factors, the board will make decisions on:
- new mission statement
- new corporate objectives
- new corporate governance
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STEP 3[a]
TOP management will scan and assess the company's external environment -- political/economic/social/technology, to determine the strategic factors that pose as OPPORTUNITIES/THREATS.
STEP 3[b]
TOP management will scan and assess the company's internal environment -- structure/culture/resources, etc., to determine the strategic factors that pose as OPPORTUNITIES/THREATS.
STEP 3[c]
TOP MANAGEMENT will analyze the strengths/weaknesses of the organization and pinpoint the problem areas that need attention and the strengths that could be exploited.
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STEP 4
Based on the above analyses, TOP management will generate, evaluate, and select the best strategic factors.
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STEP 5
TOP management will review and revise (if necessary) the mission statement and corporate objectives.
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STEP 6
TOP management will generate and evaluate strategy alternatives and objectives.
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STEP 7
This final corporate mission statement, objectives, and strategies becomes the foundation information for the various departments to work out their departmental objectives/strategies/plans.
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STEP 8
After working out their respective objectives/strategies/plans and the budgets, the departmental managers send their respective information to the TOP management for approval.
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STEP 9
On receiving the approved package from the TOP management, the departmental managers develop the implementation plan.
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STEP 10.
NOW you have mission/objectives/strategies/plans/budget/schedules.
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In the case of HR, which is a department by itself, this final corporate mission statement, objectives, and strategies become the foundation information for the HR department to work out your departmental objectives/strategies/plans.
THE HR DEPARTMENT PLANS COULD HAVE 3 PARTS:
PART 1 - plan of action to meet corporate objectives/strategies.
EXAMPLE:
- online recruitment
- focus on competence development
- market-oriented compensation packages
- organization development programs
etc.
PART 2 - plan of action to meet various departmental objectives/strategies.
EXAMPLE:
Discuss with the various other departments like sales/production/distribution/accounting/IT, etc., about their requirements for manpower, recruitments, replacements, training, etc.
Once you get their departmental requirements, HRM develops:
- recruitment/selection plans/programs/procedures/priorities
- training plans/programs/procedures/priorities
- rewards plans/programs/procedures/priorities
- development plans/programs/procedures/priorities
- payroll plans/programs/procedures/priorities
- performance management plans/programs/procedures/priorities
- staff/organization communication plans/programs/procedures/priorities
etc.
PART 3 - plan of action to meet HR DEPARTMENT'S OWN INITIATIVES.
EXAMPLE:
- KNOWLEDGE MANAGEMENT
- ORGANIZATIONAL CULTURE CHANGE MANAGEMENT
- HR POLICIES
- HR PROCEDURES
- HR PRACTICES
etc.
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HR PLANNING
1. DIFFICULTIES IN HR PLANNING:
- As the economy grows/declines, the demand for HR resources changes not only in quantity but also in quality/types.
- Social pressure to provide the right environment for employees.
- Political pressure to employ the local population, irrespective of skills/knowledge.
- Legal challenges to recruitment/compensation on discrimination.
- Technology changes mean getting the right type of people or providing the right type of training.
- Competitive pressure to get the right talent at the right compensation.
- Strategic planning seeks strategic HR planning.
- Budget constraints put pressure on HR to get the best resources for the least.
- Sales/production increases in business put pressure on HR to recruit more.
- Sales/production decreases in business put pressure on HR to rationalize recruitment.
- New ventures mean demand for new types of skills/knowledge.
- Acquisitions/mergers mean the rationalization of HR.
- Organization development means HR implementing a new structure, new culture, new systems, etc.
- Job redesign means HR implementing new methods, new processes, new systems, etc.
- Globalization means managing HR diversity, new culture change, new training, etc.
- HR challenges/difficulties include managing retirement, managing voluntary retirement schemes, managing terminations, managing leave of absence, managing part-time workers/casuals, managing layoffs.
- Balancing the INTERNAL SUPPLY ESTIMATES AND EXTERNAL SUPPLY ESTIMATES.
* INTERNAL SUPPLY ESTIMATES:
- staff skills inventories
- management inventories
- replacements requirements
- transition requirements
* EXTERNAL SUPPLY ESTIMATES:
- labor market supply
- community attitude
- demographic trends
* MANAGING WORK OPTIONS:
- shorter weeks
- flexitime
- telecommuting
- virtual organizations.
2. CONCEPTS OF HR PLANNING:
These include:
- Recruitment
- Selection
- Induction
- Orientation
- Training
- Development
- Compensation development
- Salary administration
- Payroll Administration
- Performance Appraisal
- Performance Management
- Industrial Relations
- Counseling
- Promotions
- Terminations
- Transfers
- Staff amenities.
etc.
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IN CORPORATE PLANNING, WE DO NOT USE THE TERM BUSINESS PLAN — WHICH COULD BE MISINTERPRETED.
WHAT WE HAVE IS A HUMAN RESOURCE DEPARTMENT PLAN WHICH IS AN ACTION PLAN TO MEET COMPANY HR NEEDS AND HR DEVELOPMENT.
SO, AT THE END, WHAT WE HAVE IS:
- CORPORATE PLAN
- DEPARTMENTAL PLANS
- HR PLAN.
REGARDS
LEO LINGHAM