Two-way HR Planning Process


Like other business strategies, human resource strategies are shaped through both top-down and bottom-up processes in an organization. A top-down processes provides the strategic context necessary for team and unit planning.

Through a focused company environmental assessment, it provides information on possible future trends and issues affecting  the business and influencing the shaping of plans and objectives. People close to the operating business may not readily take such a broad future view. It requires looking outside the company to external competitive practices, economic and social trends, and possible future conditions that may some day have an impact on the business.

A plan is strategic in character if it is focused on important issues raised in an environmental assessment. In today’s competitive organization, it is important that employees at all levels be attuned to external  forces and changes and to the strategic direction being taken to address them.

In a bottom-up approach, planning of human resource actions is a cumulative process. Instead of broad strategies being broken down into progressively greater detail, detailed strategies are aggregated and synthesized into  meaningful umbrella strategies. Each business unit or department is asked to identify the human resource issues of concern, taking into consideration the guidance of the long-term planning inputs. They are also asked to specific analyses, forecasts, and assessments regarding these issues. Specific action plans are selected and adopted. Both human resource staff and managers should participate in this effort.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Incremental Change Analysis


Most business focuses on the current situation, with changes defined on an iterative, cumulative basis. In this context, issues represent problems or opportunities for change from the current situation. The gaps represent ways that a company may achieve or enhance a competitive edge.

The most common way to define issues is to assess the changes that are expected t occur. These are derived from either internal or external changes, intended by management or occurring as a result of uncontrolled forces (as in workforce changes). Issues are identified in the way that people normally think—incrementally from the present toward future.

In this process, managers identify and evaluate human resource issues by sorting through available strategic planning, competitive, and environmental information for evidence of changes having human resource implications and then define human resource issues that may be addressed. Such analysis may examine employee productivity issues, service quality, staffing surpluses or shortfalls, succession needs, skill requirements, utilization, costs, turnover/retention patterns, or employee attitudes.

Managers also obtain and consider perspectives of relevant constituents, such as other managers and employees, vendors, suppliers, and customers. Companies solicit inputs from managers at various levels through their participation in the planning process or through interviews, focus groups, or surveys with key managers. Many companies survey employees, either specifically for planning inputs or more broadly as an assessment of organizational climate and human resource practices. Companies may involve employees through interviews or focus groups to help define issues and alternative strategies. Some also interview or survey customers, contractors, and other business partners regarding human resource issues to be addressed.

Environmental scanning is used to identify prospective human resource issues deriving from changing external conditions. Scanning the many changes occurring in social, political, legislative, demographic, economic, technological and other areas yields a wide array of issues that may be considered.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Imitability


If a firm is making profits from core competences, the question is, why can’t other firms imitate it and build similar competences. This takes us to one property of competences: imitability—the extent to which a competence can be duplicated by competitors.  A firm would rather have competences that are difficult to duplicate or substitute. The question is, how? If the knowledge that underpins the competences is tacit in that it is not coded but rather embedded in organizational routines and cumulatively learned over time, potential imitators have three problems. In the first place, it is difficult to know just what it is that one wants to imitate in the second place, even if a firm knew exactly what it is that it wants to imitate, the firm may not know how to go about it since competence is learned cumulatively over the years and embedded in individuals or routine of firms. In the third place, since competences take time to build, imitators may find them themselves always lagging as they spend time imitating while the original owners of the competences move on to higher levels of the competences to newer ones.

If a competitor cannot build competences, the next question is, why not buy them? One answer is that competences may not be tradable or easily moved from one firm to another. Two reasons have been advanced for why. First, because of the tacit nature of the underlying knowledge, it may be difficult to tell just what it is that one wants to trade and who has the property rights for what parts of the underlying knowledge. What is it that we will buy from Honda that allows us to build zippy engines for cars, motorcycles, lawnmovers, and marine vehicles? Who has the rights for what part of the technological knowledge that underlies this competence? Second, the underlying knowledge may be sticky in that it is too costly to transfer. Because of the tacit nature of the data, one may need to observe the seller over long periods in order to learn. This may be too complex and expensive.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.