chapter 5: managing hr planning for strategic change jackson and schuler 2003 south-western college...

Chapter 5:Chapter 5:

Managing HR Planning forManaging HR Planning forStrategic ChangeStrategic Change

Jackson and SchulerJackson and Schuler

© 2003 South-Western College Publishing. All rights reserved.

Eighth editionEighth edition

Managing Human Managing Human ResourcesResources

© 2003 South-Western College Publishing. All rights reserved. 5–2

Chapter OutlineChapter Outline

The Strategic Importance of HR PlanningThe Strategic Importance of HR Planning A Framework for Understanding HR PlanningA Framework for Understanding HR Planning Assessing the Global and Organizational Assessing the Global and Organizational

EnvironmentEnvironment Specifying the Objectives for a Change EffortSpecifying the Objectives for a Change Effort Developing the HR Plan, Measurements, and Developing the HR Plan, Measurements, and

TimetablesTimetables Implementing the Plans for Strategic ChangeImplementing the Plans for Strategic Change Review, Revise, and RefocusReview, Revise, and Refocus


The Strategic Importance of HR The Strategic Importance of HR PlanningPlanning

To succeed under new competitive To succeed under new competitive conditions, companies change vision, conditions, companies change vision, values, structure, strategy and values, structure, strategy and corporate culturecorporate culture

Changes in HR policies and practices Changes in HR policies and practices encourage and support behaviors encourage and support behaviors needed for organizational changeneeded for organizational change


Strategic ChangeStrategic Change

Major transformations in the structure, size, or Major transformations in the structure, size, or functioning of an organization for the purpose functioning of an organization for the purpose of achieving strategic objectivesof achieving strategic objectives

Degree of Change:Degree of Change: Radical changeRadical change

• Major adjustments in the Major adjustments in the ways a firm does businessways a firm does business

Incremental change: Incremental change: • Evolution over timeEvolution over time• Many small routine changesMany small routine changes


Timing of ChangeTiming of Change

Reactive Change: Reactive Change: Responding to changes in the external or Responding to changes in the external or

internal environment.internal environment. Anticipatory ChangeAnticipatory Change

Looking for better ways to stay Looking for better ways to stay ahead of the competition.ahead of the competition.


Framework for Understanding HR Framework for Understanding HR PlanningPlanning

ImplementPlans

HR Planning for

Strat egic Chan ge

Assess Global and Organizational Environment.

Participate in Assessing Global and Organizational Environment

Specify Strategic Objectives for Change Efforts

Review, Revise, Refocus

Develop HR Plans, Measurements, Timetables

Stra

tegi

c Bu

s ine

s s

Plan

ning

Specify Objectivesof HR Change Efforts

Develop Plans for Strategic Change


Elements of HR PlanningElements of HR Planning Objectives are quantitative and qualitativeObjectives are quantitative and qualitative

Historically, HR was only involved in getting the Historically, HR was only involved in getting the right people available at the right time and place.right people available at the right time and place.

Today HR Planning is more strategic and includes Today HR Planning is more strategic and includes scenario planning:scenario planning:

• Mission and value statementsMission and value statements• Helping others to change and adaptHelping others to change and adapt• Ensuring the firm has the competencies it needsEnsuring the firm has the competencies it needs• Addressing concerns of multiple stakeholdersAddressing concerns of multiple stakeholders• Monitoring effects of changeMonitoring effects of change• Integrating HRM with other operationsIntegrating HRM with other operations


Assessing the Global EnvironmentAssessing the Global Environment Economic and political trendsEconomic and political trends Industry trendsIndustry trends TechnologyTechnology Labor marketsLabor markets National and regional culturesNational and regional cultures Laws and regulationsLaws and regulations Unions and labor relationsUnions and labor relations


Organizational AnalysisOrganizational Analysis HR ForecastsHR Forecasts

Estimates of the firm’s future human Estimates of the firm’s future human resource needsresource needs

Judgmental forecastsJudgmental forecasts• Informed experts predict business trendsInformed experts predict business trends

Statistical forecastsStatistical forecasts• Using historical data Using historical data

to predict the futureto predict the future


Behavioral Cause-and-Effect ModelsBehavioral Cause-and-Effect Models Provide insight into Provide insight into

why employees why employees behave as they dobehave as they do

Identify the business Identify the business consequences of consequences of employee behaviorsemployee behaviors

Strategy maps: Strategy maps: Show cause-effectShow cause-effect Show connection Show connection

between HRM and between HRM and strategic successstrategic success


Employee OpinionsEmployee Opinions

Important part of Important part of organizational organizational analysisanalysis

Employee surveys Employee surveys are often usedare often used

Ask about problems Ask about problems and potential and potential solutionssolutions


Specifying the Objectives forSpecifying the Objectives fora Change Efforta Change Effort

Successful change is guided by clear Successful change is guided by clear objectives.objectives.

Objectives flow from corporate Objectives flow from corporate and business strategies.and business strategies.


Specifying Objectives for ChangeSpecifying Objectives for Change Involving EmployeesInvolving Employees

Task forcesTask forces Focus groupsFocus groups SurveysSurveys Hot linesHot lines Informal conversationsInformal conversations

Action learningAction learning Involve employees in environmental Involve employees in environmental

assessment and problem solvingassessment and problem solving


Specifying Objectives for Change Specifying Objectives for Change (cont’d)(cont’d)

AccountabilityAccountability Specifying who is responsible for making Specifying who is responsible for making

needed changesneeded changes HRM systems can hold people accountable HRM systems can hold people accountable

for change effortsfor change efforts• Performance measurement systemsPerformance measurement systems• Incentive pay and bonus systemsIncentive pay and bonus systems


HRM Link to Business ObjectivesHRM Link to Business Objectives

Business objectives Business objectives focus attention on:focus attention on: Number of Number of

employees needed employees needed for growth or declinefor growth or decline

Required Required competencies and competencies and behaviorsbehaviors

Required levels of Required levels of productivity productivity


Developing the HR Plan, Developing the HR Plan, Measurements, and TimetablesMeasurements, and Timetables

The HR strategic plan The HR strategic plan May be prepared for the functional area of May be prepared for the functional area of

HRMHRM May be addressed within a division’s May be addressed within a division’s

strategic plan. strategic plan.


Considering AlternativesConsidering Alternatives

There are alternative ways to achieve There are alternative ways to achieve strategic objectives. For example, possible strategic objectives. For example, possible solutions to a labor shortage include:solutions to a labor shortage include: Raising base wagesRaising base wages Reducing turnoverReducing turnover Implementing new technologiesImplementing new technologies Utilizing foreign labor marketsUtilizing foreign labor markets


Staffing Plans: Ensuring SupplyStaffing Plans: Ensuring SupplyMatches DemandMatches Demand

Succession PlanningSuccession Planning Ensures key positions can be Ensures key positions can be

filled when vacancies occurfilled when vacancies occur Talent PoolTalent Pool

A list of employees with high A list of employees with high potential for advancementpotential for advancement

Replacement ChartsReplacement Charts Lists of key jobs, incumbents Lists of key jobs, incumbents

and names from employee and names from employee talent pooltalent pool


Additional Components of the HR Additional Components of the HR PlanPlan

Training PlansTraining Plans Leadership Development PlansLeadership Development Plans Plans for Changes in BenefitsPlans for Changes in Benefits


Measuring Progress TowardMeasuring Progress TowardHRM ObjectivesHRM Objectives

Recruitment Yield RatesRecruitment Yield Rates First-pass (% of resumes leading to First-pass (% of resumes leading to

interviews)interviews) Second-pass (% of interviews resulting in Second-pass (% of interviews resulting in

offersoffers Offer Acceptance RatesOffer Acceptance Rates Customer SatisfactionCustomer Satisfaction IntangiblesIntangibles

Knowledge and learningKnowledge and learning


Measuring Progress TowardMeasuring Progress TowardHRM Objectives (cont’d)HRM Objectives (cont’d)

TimetablesTimetables Deadlines and check points keep change Deadlines and check points keep change

movingmoving Realistic expectations are importantRealistic expectations are important


Implementing the Plans forImplementing the Plans forStrategic ChangeStrategic Change

Reasons for Resistance to ChangeReasons for Resistance to Change FearFear MisunderstandingsMisunderstandings CynicismCynicism

Forms of Resistance to Forms of Resistance to ChangeChange CriticismCriticism Malicious complianceMalicious compliance SabotageSabotage SilenceSilence


Implementing the Plans forImplementing the Plans forStrategic Change (cont’d)Strategic Change (cont’d)

Setting the Stage for Successful Setting the Stage for Successful Implementation of Change:Implementation of Change: Employee involvementEmployee involvement Two-way communicationTwo-way communication EmpowermentEmpowerment


Creating Readiness for ChangeCreating Readiness for Change

Developing a pro-learning orientation among Developing a pro-learning orientation among employeesemployees Opportunities for problem solvingOpportunities for problem solving Information on organizational success and Information on organizational success and

failuresfailures Information on customer preferences and Information on customer preferences and

evaluationsevaluations Small-scale experimentationSmall-scale experimentation


Creating Readiness for Change Creating Readiness for Change (cont’d)(cont’d)

Develop a resilient Develop a resilient workforceworkforce Hire and promote Hire and promote

based on resiliencebased on resilience Educate about Educate about

changechange Train to reduce Train to reduce

resistanceresistance Celebrate successful Celebrate successful

change effortschange efforts


Creating Readiness for Change Creating Readiness for Change (cont’d)(cont’d)

Build the architecture to Build the architecture to support change initiativessupport change initiatives Record and use lessons Record and use lessons

learnedlearned Train in structured Train in structured

approachesapproaches Create opportunities for Create opportunities for

cross-functional cross-functional teamworkteamwork

Identify key performance Identify key performance measuresmeasures


Review, Revise, and RefocusReview, Revise, and Refocus

The success of products and services offered The success of products and services offered in the internal marketplace should be in the internal marketplace should be monitored.monitored.

Human resource information management Human resource information management system (HRIM) provides the means for system (HRIM) provides the means for collection and dissemination of evaluation collection and dissemination of evaluation data.data.

Make sure there are “short-term wins” to Make sure there are “short-term wins” to celebrate.celebrate.


Line Managers• Model effective learning and change

• Provide info and forecast labor needs

• Help evaluate alternatives

• Work with HR on objectives and plans

• Collaborate to collect data

• Communicate constantly

HR Professionals• Facilitate change; help others

• Mange HR planning

• Facilitate discussions about alternatives

• Develop HR change objectives, plans, and measures

• Assess HR progress

• Communicate HR changes and respond to questions

Employees• Develop personal capacity for frequent change

• Participate in generating and evaluating alternatives

• Provide input to HR plans, measures, and timetables

• Take personal responsibility

Roles and Responsibilities for HR Roles and Responsibilities for HR Planning and Strategic ChangePlanning and Strategic Change

chapter 5: managing hr planning for strategic change jackson and schuler 2003 south-western college...

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