Introduction to

Human Resource

Management

Class 4

Class OverviewThis class, we will focus on current strategic Human

Resource challenges. Through understanding the

challenges that HRM faces, students will be able to

understand how the subcategories related to HRM

influence the field overall.

In addition to understanding the changes that HRM

faces, students will explore the topic of planning and

implementing strategic HR tactics/ programs.

Understand strategic HR planning is essential in

understanding the benefits/ drawbacks of certain

organization factors.

What is Strategic Human Resource

Challenge?

“A human resource strategy refers to a firm’s

deliberate use of human resources to help it gain

or maintain an edge against its competitors in the

marketplace.” (Gomez-Mejia, Balkin, and Cardy 2)

Please watch the video above regarding

HR strategy and future challenges.

Future HR Challenges

According to the Society for Human

Resource Management, “HR

professionals say that the three biggest

challenges facing HR executives over the

next 10 years are retaining and rewarding

the best employees (59%), developing the

next generation of corporate leaders

(52%), and creating a corporate culture

that attracts the best employees to

organizations (36%).”

Types of HRM Challenges

• Environmental Challenges - Forces that

are external to the firm.

• Organizational Challenges - Internal forces

within the firm.

• Individual Challenges - Reflect what is

happening in the larger organization.

Environmental Challenges

– Rapid Change

– Internet Revolution

– Workforce Diversity

– Globalization

– Legislation

– Evolving Work/ Family Roles

– Skill Shortages

– Natural Disasters

– Collapse of Housing Market

Organizational Challenges

– Decentralization

– Downsizing

– Organizational Restructuring

– Self-Managed Work Teams

– Growth of Small Businesses

– Organizational Culture

– Technology

– Internal Security

– Data Security

– Outsourcing

– Product Integrity

Individual Challenges

– Matching People and Organizations

– Ethics and Social Responsibility

– Productivity

– Empowerment

– Brain Drain

Understanding These Challenges

Through understand potential environmental,

organizational, and individual challenges, HR

practitioners can assist in preventing,

addressing, and correcting these challenges

before they affect the organization’s well-being.

Planning and Implementing

Strategic HR

“To be successful, firms must closely align their

HR strategies and programs with environmental

opportunities, business strategies, and the

organization’s unique characteristics and

distinctive competences.”

What is Strategic Human Resource

Planning?

“The process of formulating HR strategies

and establishing programs or tactics to

implement them.”

Proactive vs. Reactive Approach

Through recognizing the components of

environmental, organizational, and individual

challenges, business can plan for the future.

The idea of “those who plan ahead, get ahead,” is

extremely applicable at the organizational level.

Forward thinking organizations that are proactive in

planning often get ahead.

Importance of Planning

4 Step Process

There are various processes associated with

Strategic HR Planning. The simplest

process of understand is the four step

process.

– Assessing the current HR capacity

– Forecasting HR requirements and future

– Understanding potential and future HR gaps

– Developing HR strategies to support

organizational strategies

Another Strategic HR Planning

Model

Another Strategic HR Planning

Model

According to this model, like so many other Strategic HR Planning

models, the planning process is continuous and constantly evolving.

Examples of Strategic HR Planning

HR strategies can fall under a number of categories, including:

• Developing a talent pool– Examples: succession planning, relationship building,

training and development

• Analyzing the work environment– Examples: leadership, communication, safety

• Organizational effectiveness– Examples: departmental collaboration, teams,

organizational structure

Benefits of Strategic Human

Resource PlanningThere are many benefits of Strategic Human Resource Planning. Unfortunately, the size and capabilities of a HR Department can limit the ability to plan ahead.

Benefits of Strategic Human Resource Planning include:• Explicit communication of company goals

• Stimulation of critical thinking and ongoing examination of assumptions

• Identification of gaps between current status and future vision

• Encouragement of line manger participation

• Identification of HR constraints and opportunities

• Creation of common bonds

Strategic HR Choices to Consider

When determining future organizational

plans, the following HR choices should be

considered:• Work Flows

• Staffing

• Employee Separations

• Performance Appraisal

• Training and Career Development

• Compensation

• Employee and Labor Relations

• Employee Rights

• International Management

Making a Fit

It is essential that when organizations plan

for the future, they consider the following:

– Organizational Strategies

– Organizational Characteristics

– Organizational Capabilities

– Environment

– HR Best Practices