Developing and

Implementing Strategic
HRM Plans
SZUSA HUSANA. LPT, RPm, CHRA
 Developing and
Implementing Strategic
HRM Plans
Strategic Planning
Writing the HRM Plan
Tips in HRM Planning
Strategic Planning
• In the past, human resource management (HRM) was called the
personnel department. In the past, the personnel department hired
people and dealt with the hiring paperwork and processes. It is believed
the first human resource department was created in 1901 by the
National Cash Register Company (NCR). The company faced a major
strike but eventually defeated the union after a lockout. (We address
unions in Chapter 12 “Working with Labor Unions”.) After this difficult
battle, the company president decided to improve worker relations by
organizing a personnel department to handle grievances, discharges,
safety concerns, and other employee issues. The department also kept
track of new legislation surrounding laws impacting the organization.
Strategic Planning
• More recently, however, the personnel department has divided into
human resource management and human resource development, as
these functions have evolved over the century. HRM is not only
crucial to an organization’s success, but it should be part of the overall
company’s strategic plan, because so many businesses today depend
on people to earn profits. Strategic planning plays an important role in
how productive the organization is.
Strategic Planning
Most people agree that the following duties normally fall under HRM. Each of these
aspects has its own part within the overall strategic plan of the organization:
1.Staffing. Staffing includes the development of a strategic plan to determine how
many people you might need to hire. Based on the strategic plan, HRM then
performs the hiring process to recruit and select the right people for the right jobs.
2.Basic workplace policies. Development of policies to help reach the strategic
plan’s goals is the job of HRM. After the policies have been developed,
communication of these policies on safety, security, scheduling, vacation times, and
flextime schedules should be developed by the HR department. Of course, the HR
managers work closely with supervisors in organizations to develop these policies.
Strategic Planning
3.Compensation and benefits. In addition to paychecks, 401(k) plans,
health benefits, and other perks are usually the responsibility of an HR
manager.
4.Retention. Assessment of employees and strategizing on how to
retain the best employees is a task that HR managers oversee, but
other managers in the organization will also provide input.
Strategic Planning
5.Training and development. Helping new employees develop skills
needed for their jobs and helping current employees grow their skills
are also tasks for which the HRM department is responsible.
Determination of training needs and development and implementation
of training programs are important tasks in any organization.
6. Regulatory issues and worker safety. Keeping up to date on new
regulations relating to employment, health care, and other issues is
generally a responsibility that falls on the HRM department.
Strategic Planning
In smaller organizations, the manager or owner is likely performing the
HRM functions (de Kok & Uhlaner, 2001). They hire people, train them,
and determine how much they should be paid. Larger companies
ultimately perform the same tasks, but because they have more
employees, they can afford to employ specialists, or human resource
managers, to handle these areas of the business. As a result, it is highly
likely that you, as a manager or entrepreneur, will be performing HRM
tasks, hence the value in understanding the strategic components of
HRM.
• Human resource strategy is an elaborate and systematic plan of
action developed by a human resource department. This definition
tells us that an HR strategy includes detailed pathways to implement
HRM strategic plans and HR plans.

• Think of the HRM strategic plan as the major objectives the

organization wants to achieve, and the HR plan as the specific
activities carried out to achieve the strategic plan. In other words, the
strategic plan may include long-term goals, while the HR plan may
include short-term objectives that are tied to the overall strategic plan
 Ulrich HR model
• The Ulrich HR model, a common way to
look at HRM strategic planning, provides an 1.Strategic partner.
overall view of the role of HRM in the
organization. His model is said to have 2.Change agent.
started the movement that changed the
view of HR; no longer merely a functional
3.Administrative expert and
area, HR became more of a partnership functional expert.
within the organization. While his model has
changed over the years, the current model 4.Human capital developer.
looks at alignment of HR activities with the 5.Employee advocate.
overall global business strategy to form a
strategic partnership (Ulrich & Brockbank,
2005). His newly revised model looks at five
main areas of HR:
Ulrich HR model
1.Strategic partner. Partnership with the entire organization to ensure
alignment of the HR function with the needs of the organization.
2.Change agent. The skill to anticipate and respond to change within
the HR function, but as a company as a whole.
3.Administrative expert and functional expert. The ability to
understand and implement policies, procedures, and processes that
relate to the HR strategic plan.
4.Human capital developer. Means to develop talent that is projected
to be needed in the future.
5.Employee advocate. Works for employees currently within the
organization
 According to Ulrich (Ulrich, 2011),
implementation of this model must
Ulrich HR model happen with an understanding of the
overall company objectives, problems,
challenges, and opportunities. For
example, the HR professional must
understand the dynamic nature of the
HRM environment, such as changes in
labor markets, company culture and
values, customers, shareholders, and
the economy. Once this occurs, HR can
determine how best to meet the needs
of the organization within these five
main areas.
 HRM as a Strategic Component of the
Business
https://www.youtube.com/watch?v=om-QOUNeWtM

David Ulrich discusses the importance of bringing HR to the table in strategic planning.
Keeping the Ulrich model in mind, consider these four aspects when creating a good
HRM strategic plan:
1.Make it applicable
2. Be a strategic partner
3. Involve people
4. Understand how technology can be used
HRM as a Strategic Component of the
Business
https://www.youtube.com/watch?v=om-QOUNeWtM
David Ulrich discusses the importance of bringing HR to the table in strategic planning.
Keeping the Ulrich model in mind, consider these four aspects when creating a good HRM strategic plan:

1.Make it applicable. Often people spend an inordinate amount of time developing plans,
but the plans sit in a file somewhere and are never actually used. A good strategic plan
should be the guiding principles for the HRM function. It should be reviewed and changed
as aspects of the business change. Involvement of all members in the HR department (if it’s
a larger department) and communication among everyone within the department will
make the plan better.
2. Be a strategic partner. Alignment of corporate values in the HRM strategic plan should
be a major objective of the plan. In addition, the HRM strategic plan should be aligned with
the mission and objectives of the organization as a whole. For example, if the mission of
the organization is to promote social responsibility, then the HRM strategic plan should
address this in the hiring criteria.
 HRM as a Strategic Component of the
Business
https://www.youtube.com/watch?v=om-QOUNeWtM
David Ulrich discusses the importance of bringing HR to the table in strategic planning.
Keeping the Ulrich model in mind, consider these four aspects when creating a good HRM strategic plan:

3.Involve people. An HRM strategic plan cannot be written alone. The plan should involve
everyone in the organization. For example, as the plan develops, the HR manager should meet
with various people in departments and find out what skills the best employees have. Then the
HR manager can make sure the people recruited and interviewed have similar qualities as the
best people already doing the job. In addition, the HR manager will likely want to meet with the
financial department and executives who do the budgeting, so they can determine human
resource needs and recruit the right number of people at the right times. In addition, once the
HR department determines what is needed, communicating a plan can gain positive feedback
that ensures the plan is aligned with the business objectives.
4.Understand how technology can be used. Organizations oftentimes do not have the money
or the inclination to research software and find budget-friendly options for implementation.
People are sometimes nervous about new technology. However, the best organizations are
those that embrace technology and find the right technology uses for their businesses. There
are thousands of HRM software options that can make the HRM processes faster, easier, and
more effective. Good strategic plans address this aspect.
The Steps to Strategic Plan Creation

• Conduct a Strategic Analysis

• Identify Strategic HR Issues
• Prioritize Issues and Actions
• Draw Up an HRM Plan
The Steps to Strategic Plan Creation

Conduct a Strategic Analysis

A strategic analysis looks at three aspects of the individual HRM department:

1. Understanding of the company mission and values.
2. Understanding of the HRM department mission and values.
3. Understanding of the challenges facing the department.
 The Steps to Strategic Plan Creation

Identify Strategic HR Issues In this step, the HRM professionals will

analyze the challenges addressed in the
first step. For example, the department
may see that it is not strategically
aligned with the company’s mission and
values and opt to make changes to its
departmental mission and values as a
result of this information.
 The Steps to Strategic Plan Creation

Identify Strategic HR
Issues
Many organizations and departments will
use a strategic planning tool that identifies
strengths, weaknesses, opportunities, and
threats (SWOT analysis) to determine
some of the issues they are facing. Once
this analysis is performed for the business,
HR can align itself with the needs of the
business by understanding the business
strategy.
The Steps to Strategic Plan Creation

Prioritize Issues and Actions

• Based on the data gathered in the last step, the HRM manager should prioritize the
goals and then put action plans together to deal with these challenges. For example,
if an organization identifies that they lack a comprehensive training program, plans
should be developed that address this need
• An important aspect of this step is the involvement of the management and
executives in the organization.
• Once you have a list of issues you will address, discuss them with the management
and executives, as they may see other issues or other priorities differently than you.
 The Steps to Strategic Plan Creation

• Draw Up an HRM Plan

Once the HRM manager has met with executives and

management, and priorities have been agreed upon, the plans are
ready to be developed.
Even if a company does not have an HR department, HRM strategic plans and HR plans should still be developed by
management. By developing and monitoring these plans, the organization can ensure the right processes are implemented
to meet the ever-changing needs of the organization. The strategic plan looks at the organization as a whole, the HRM
strategic plan looks at the department as a whole, and the HR plan addresses specific issues in the human resource
department.
 Developing and
Implementing Strategic
HRM Plans
Strategic Planning
Writing the HRM Plan
Tips in HRM Planning
The Steps to Strategic Plan Creation
The six parts of the HRM plan include the following:
1.Determine human resource needs. This part is heavily involved with the strategic plan. What
growth or decline is expected in the organization? How will this impact your workforce? What is
the economic situation? What are your forecasted sales for next year?
2.Determine recruiting strategy. Once you have a plan in place, it’s necessary to write down a
strategy addressing how you will recruit the right people at the right time.
3.Select employees. The selection process consists of the interviewing and hiring process.
4.Develop training. Based on the strategic plan, what training needs are arising? Is there new
software that everyone must learn? Are there problems in handling conflict? Whatever the
training topics are, the HR manager should address plans to offer training in the HRM plan.
5.Determine compensation. In this aspect of the HRM plan, the manager must determine pay
scales and other compensation such as health care, bonuses, and other perks.
6. Appraise performance. Sets of standards need to be developed so you know how to rate the
performance of your employees and continue with their development
 The Steps to Strategic Plan Creation
The six parts of the HRM plan include the following:
1.Determine human resource needs.
The first part of an HR plan will consist of determining how many people are
needed. This step involves looking at company operations over the last year and
asking a lot of questions:
Were enough people hired?
Did you have to scramble to hire people at the last minute?
What are the skills your current employees possess?
What skills do your employees need to gain to keep up with technology?
Who is retiring soon? Do you have someone to replace them?
What are the sales forecasts? How might this affect your hiring
 The Steps to Strategic Plan Creation
2.Determine recruiting strategy.

Recruit
Recruitment is an important job of the HR manager. Depending on availability and
time, some companies may choose to outsource their recruiting processes. For some
types of high-level positions, a head hunter will be used to recruit people nationally
and internationally. A head hunter is a person who specializes in matching jobs with
people, and they usually work only with high-level positions. Another option is to use
an agency that specializes in hiring people for a variety of positions, including
temporary and permanent positions. Some companies decide to hire temporary
employees because they anticipate only a short-term need, and it can be less expensive
to hire someone for only a specified period of time.
The Steps to Strategic Plan Creation
3.Select employees. The selection process consists of the interviewing and
hiring process.

Because it is so expensive to hire, it is important to do it right. First, résumés are

reviewed and people who closely match the right skills are selected for interviews.
Many organizations perform phone interviews first so they can further narrow the
field. The HR manager is generally responsible for setting up the interviews and
determining the interview schedule for a particular candidate. Usually, the more
senior the position is, the longer the interview process takes, even up to eight
weeks (Crant, 2009). After the interviews are conducted, there may be reference
checks, background checks, or testing that will need to be performed before an
offer is made to the new employee.
The Steps to Strategic Plan Creation
4.Develop training.
One way we can ensure success is by training our employees in three main areas:
1.Company culture. A company culture is the organization’s way of doing things.
Every company does things a bit differently, and by understanding the corporate
culture, the employee will be set up for success. Usually this type of training is
performed at an orientation, when an employee is first hired. Topics might include
how to request time off, dress codes, and processes.
2.Skills needed for the job. If you work for a retail store, your employees need to
know how to use the register. If you have sales staff, they need to have product
knowledge to do the job. If your company uses particular software, training is needed
in this area.
3.Human relations skills. These are non-job-specific skills your employees need not
only to do their jobs but also to make them all-around successful employees. Skills
needed include communication skills and interviewing potential employees.
The Steps to Strategic Plan Creation

5.Determine compensation.
 The Steps to Strategic Plan Creation
The performance appraisal can be
6. Appraise performance.
called many different things, such
as the following:
1.Employee appraisal
2.Performance review
3.360 review
4. Career development review
Performance evaluation includes metrics on which the employee is measured. These metrics should be based on the
job description, both of which the HR manager develops. Various types of rating systems can be used, and it’s usually
up to the HR manager to develop these as well as employee evaluation forms. The HR manager also usually ensures
that every manager in the organization is trained on how to fill out the evaluation forms, but more importantly, how to
discuss job performance with the employee. Then the HR manager tracks the due dates of performance appraisals and
sends out e-mails to those managers letting them know it is almost time to write an evaluation.
 Developing and
Implementing Strategic
HRM Plans
Strategic Planning
Writing the HRM Plan
Tips in HRM Planning
Tips in HRM Planning

• Link HRM Strategic Plan to Company Plan

• Monitor the Plan Constantly
• Measure It
• Sometimes Change Is Necessary
• Be Aware of Legislative Changes
Tips in HRM Planning

Link HRM Strategic Plan to Company Plan

Understanding the nature of the business is key to being

successful in creating a strategic plan for HRM.
Tips in HRM Planning

Monitor the Plan Constantly

Oftentimes a great strategic plan is written, taking lots of time, but isn’t actually put
into practice for a variety of reasons, such as the following:
1.The plan wasn’t developed so that it could be useful.
2.The plan wasn’t communicated with management and others in the HRM
department.
3.The plan did not meet the budget guidelines of the organization.
4.The plan did not match the strategic outcomes of the organization.
5.There was lack of knowledge on how to actually implement it.
Tips in HRM Planning

Measure It

A good strategic plan and HR plan should discuss the way “success”
will be measured. For example, rather than writing, “Meet the hiring
needs of the organization,” be more specific: “Based on sales forecasts
from our sales department, hire ten people this quarter with the skills to
meet our ten job openings.”
Tips in HRM Planning

Sometimes Change Is Necessary

• It can be difficult to base an entire plan on forecasted numbers.

As a result, an HRM department that is willing to change quickly
to meet the needs of the organization proves its worthiness.
Tips in HRM Planning

Be Aware of Legislative Changes

Most budgets are based on certain current laws, knowing when the law
changes and how it will affect department budgets and planning (such
as compensation planning) will create a more solid strategic plan.
-END OF DISCUSSION-
SEATWORK
• What is the difference between HR plans and HRM strategic plans?

HR PLANS HRM STRATEGIC PLANS

SEATWORK
• RANK the areas of focus in HRM according to the importance,
Explain your reason for your ranking

_____________staffing
____________policy development
____________ compensation and benefits
____________retention issues
____________training and development
____________issues and worker protection
SEATWORK

• Why is it important to plan your staffing before you start to hire people ?
• Why do we need to conduct training in an organization?
• Why it is important to Link HRM Strategic Plan to Company Plan?