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Explain the strategic importance of HR planning for alignment and change

As the environment changes, HR activities need to be correctly aligned with these changing conditions


strategic alignment

The state where an organization's HRM system supports and facilitates the behaviors and competencies needed for organizational success


Vertical alignment

Exists when the HRM system fits with all other elements of the organizational environment - the culture, strategy, technology, etc


Horizontal alignment

Exists when all of the HR policies and practices that comprise the HRM system are consistent with each other and so present a coherent message to employees concerning how they should behave while at work


radical change

May be required when organizations make major adjustments in the ways they do business


incremental change

an ongoing process of gradual evolution, during which many small changes occur routinely


Reactive change

occurs when an organization is forced to change in response to an unanticipated event in the external or organizational environment


anticipatory change

when an organization takes action in anticipation of upcoming events or early in the cycle of a new trend


learning organization

continually finds new ways to satisfy customers and other stakeholders by skillfully integrating the resources of information, technology, and people to produce and the effectively use new knowledge


State the roles and responsibilities of the HR triad in HR planning

Responsibility for the planning process typically rests in the hands of line managers and HR professionals


Describe three major HR planning activities and their typical sequence

The HR planning phases include assessing the global and organizational environment, specifying HR objectives and metrics for change, and developing specific HR plans and timetables


HR planning

refers to the activities associated with scanning and assessing the environment; specifying the objectives to be achieved by HR activities, along with the measures to be used to asses thee achievement of those objectives and developing specific plans for HR policies and practices along with timetables for implementing the plans


HR objectives

state in quantitative or qualitative terms what is to be achieved with regard to the firm's human resources


HR metrics

the measurements that are used to assess progress against HR objectives


HR plans

can the thought of as blueprints for action; they specify who needs to do what, where, and how.



specify when each planned activity will be completed


Discuss how to scan and assess the external and organizational environments

To make sure the HR actions for change/alignment are appropriate, it is necessary to determine what needs to be done. Essential in this determination is scanning and assessing the qualities of the external and organizational environments


organizational analysis

An assessment of the external and internal environments


HR forecasts

estimates the firm's future HR needs


Judgemental forecasts

rely on the opinions of informed experts (usually managers), who provide their estimates of current and projected productivity levels, market demand, and sales, as well as current staffing levels and mobility information


statistical forecasts

rely heavily on objective data and formal models


scenario planning

begins with information about the changes likely to occur in the external environment, such as the characteristics an size of the labor force, new government regulations, and competitors' actions


Give several examples of HR objectives and metrics used to guide and monitor change

Organizations must keep two things in mind when determining HR objectives and metrics:
1) The HR objectives must be tied to strategic business objectives
2) The metrics must match the specified HR objective



Revenue - (Operating expense - [Compensation cost + Benefit cost])
Compensation Cost + Benefit Cost


HR Value added

Revenue - (Operating expense - [Compensation cost + Benefit Cost])
Total number of full-time equivalent employees (FTEs)


HR expense ratio

Total of all HR expenses
Total operating expenses


HR revenue ratio

Total revenue
Total number of FTEs


Explain how to develop HR plans and timetables

If an organization is structured along functional departments, then each department develops a strategic plan; if it is organized by region, then plans for each region are developed


succession planning

to ensure that the organization is prepared to fill key positions when the incumbents leave for any reason


talent pool

a list of employees who have been identified as having high potential for advancement , usually because they are top performers in their current positions