KAI LASH, KHAN SADDAM HUSSAI N, KUMAR

AGNI VESH
SCOPE OF CORPORATE
PLANNING IN HR
The planning process
It helps the organizations in defining goals and
objectives and course of action to be followed to
achieve them.
It helps in defining strategies to achieve the short
term and long term plans effectively.
It is necessary to ensure longevity and profitability of
a firm.
It helps in devising feasible strategies for the growth
and development of all participants in the
functioning of a firm viz. employees, stakeholders,
owners and customers.
Three Stages of the Planning Process
Determining the Organizations
mission and goals
(Define the business)
Strategy formulation
(Analyze current situation &
develop strategies)
Strategy Implementation
(Allocate resources & responsibilities
to achieve strategies)
Figure 7.1
Levels of Planning
Strategy
Implementatio
n
Corporate
mission & goals
Divisional
goals
Functional
goals
Corporate-
level strategy
Business-
level strategy
Functional-
level strategy
Design of
Corporate
Structure
Control
Design of
Business-unit
Structure
Control
Design of
Functional
Structure
Control
Goal
Setting
Strategy
Formulation
Corporate-
level Plan
Business-
level Plan
Functional
level Plan
Figure 7.2
Planning Levels
Corporate-level: decisions by top managers.
Considers on which businesses or markets to be in.
Provides a framework for all other planning.
Business-level: details divisional long-term goals
and structure.
Identifies how this business meets corporate goals.
Shows how the business will compete in market.
Functional-level: actions taken by managers in
departments of manufacturing, marketing, etc.
These plans state exactly how business-level strategies are
accomplished.
Corporate planning and HR
Delivery of high quality services to the customer requires
availability of high quality of human resource in any
organization.
Increased social complexities, changing demographics and
emerging economical and societal needs together create a
dynamic environment within which the services are to be
delivered to the customers.
All this necessitates a compact and sound CORPORATE
HUMAN RESOURCE planning which can focus on key areas
of human resource management while responding to changes
in overall environment.
It provides a foundation for all the departments to work
together to ensure that all the resources are appropriately
utilized along with the necessary skills, attitudes and the
ability to deliver those services to the end users.
Challenges faced by organizations
Almost all the organizations face similar problems when it comes to
setting goals and devising strategies in modern days. Some of them
are
DEMOGRAPHICS- Average age of employees, the decline in
productivity with age.
LABOUR AVAILIBILITY- Increasing rate of attrition, availability of
right workforce and their development with changing needs.
WELLNESS AND DISABILITIES- Real time availability of the
workforce due to both age related and other causes like sickness etc.
ATTRACTING AND RETAINING EMPLOYEES- Given the
demographics and labour market, attracting and retaining talent,
optimizing performance and building capacity are the top HUMAN
CAPITAL challenges faced by organizations across the globe.
Challenges faced by organizations
TECHNOLOGIES AND SYSTEMS- With changes being
introduced in technology almost at the blink of an eye,
adapting to these changes along with the workforce at
disposal of an organization presents another challenge
which needs tactful tackling.
DIVERSITY AND CULTURAL GAP- With the whole
world becoming a local market, a diverse workforce
resulting in cultural disparities and proper management
of them becomes necessary.
GOVERNMENT POLICIES- Organizations have to face
the challenge of adapting and adopting to different
policies in different countries.
HUMAN RESOURCE PLANNING
Right number of people with right skills at
right place at right time to implement
organizational strategies in order to
achieve organizational objectives
In light of the organizations objectives,
corporate and business level strategies,
HRP is the process of analyzing an
organizations human resource needs and
developing plans, policies, and systems to
satisfy those needs
HRP should be
Done to guide and coordinate all HR activities so
they work together to support the overall strategy

Responsive to internal and external environment

Planning - done in advance

Strategic - linked with higher level planning

Copyright 2010 Pearson Education, Inc.
publishing as Prentice Hall
4-11
Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting
Human
Resource
Requirements
Comparing
Requirements
and Availability
Forecasting
Human
Resource
Availability
Surplus of
Workers
Demand =
Supply
No Action
Shortage of
Workers
Recruitment
Selection
Restricted Hiring,
Reduced Hours, Early
Retirement, Layoffs,
Downsizing
FORECASTING AS A PART OF HRP
DEMAND FORECASTING-
Step 1: Define organizational objectives
Step 2: Demand forecast for each objective
Step 3: Aggregate demand forecasts
QUESTION: Does aggregate supply meet aggregate demand, if yes
then go for feasibility analysis.
If no then go for supply forecasting and take a look at the human
resource program adopted viz.
INTERNAL PROGRAMS (promotion, transfer, career planning,
training, turnover control etc.)
EXTERNAL PROGRAMS( recruiting, external selection, executive
exchange etc.)
Aggregate the internal and external forecasts and ensure that the
demand is met with.
HR strategies
Once a sound human resource plan is in hand it can be
made concrete by converting it into human resource
strategy.
HR strategies set out what the organization intends to do
about its human resource management policies and
practices and how they should be integrated with the
business strategy and with each other. Key elements:
Strategic objectives
Plan of action
There is no great strategy only great execution (Gratton
2000)

Categories of HR strategies
Evolutionary approach to HRM.
Broad-bush statements of aims and purpose that set
the scene for more specific strategies.
Specific and articulated plans to create sets of HR
practices and develop a coherent HR system.
Conscious introduction of overall approaches to
HRM such as:
High-performance management
High-involvement management
High-commitment management

High performance management
Aims to effect organizational performance through
people.
HRM areas involved
(HPWS high performance work systems):
Recruitment & selection
Training and development
Reward management
Performance management

High involvement management
Commitment ad involvement opposed to
bureaucratic control.
Treating employees as partners. Providing
opportunity for the employee to control and
understand their work.
Communication for mutual understanding.


High involvement management
A form of management aimed at eliciting a commitment
so that behavior is primarily self-regulated rather than
controlled. Organizational relations based on trust.
Approaches to achieve commitment:
Career ladders and emphasis on trainability
Functional flexibility
Reduction of hierarchy, ending of status differentails
Reliance on teams: dissemination, structuring work, problem solving
Intrinsic satisfaction via job design
Permanent employment with temporary workers
Merit pay and profit sharing
Involvement in quality management

Specific corporate HR strategies
1.High Commitment management
2.High-performance management
3.Corporate social responsibility
4.Organization development
5.Engagement
6.Knowledge management
7.Resourcing
8.Talent management
9.Learning and development
10.Rewarding
11.Employee relations


CONCLUSION
The corporate human resource planning is thus an
important document setting directions and priorities
for human resource management across all
organizations. It forms a framework for new
initiative and strategies. Shared effort and attention
will help ensure that implementation is done using
the guiding principles, in order to meet the overall
goals of the strategy, in conjunction with the
completion of the specific activities in the action
plan.