1. HR Planning for Alignment and Change
Chapter 4
HR Planning for Alignment and Change

2. Chapter Outline
THE STRATEGIC IMPORTANCE OF HR PLANNING FOR ALIGNMENT AND CHANGE
Alignment
Types of Organizational Change
Learning Organizations
OVERVIEW OF THE HR PLANNING AND CHANGE PROCESS
The Elements of Human Resource Planning
Aligning Business Planning and HR Planning
The HR Triad
THE HR TRIAD: Roles and Responsibilities for HR Planning, Alignment, and Change
SCANNING AND ASSESSING THE EXTERNAL AND ORGANIZATIONAL ENVIRONMENTS
Organizational Analysis
MANAGING CHANGE: Organizational Analysis at Procter & Gamble
HR Forecasts
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3. Chapter Outline (cont’d)
SCANNING AND ASSESSING THE EXTERNAL AND ORGANIZATIONAL ENVIRONMENTS (cont’d)
Employees’ Opinions
Behavioral Cause-and-Effect Models
MANAGING GLOBALIZATION: Building Global Leaders at Unilever Best Foods
DETERMINING HR OBJECTIVES AND METRICS
Linking HR Objectives to Strategic Business Objectives
MANAGING CHANGE: Flying High at Continental
Developing Metrics to Match the Objectives
DEVELOPING HR PLANS AND TIMETABLES
Considering Alternatives
Building a Complete HR Plan
Timetables
IMPLEMENTING THE HR ACTION PLANS FOR ALIGNMENT: FACILITATING CHANGE
Involving Employees
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4. Chapter Outline (cont’d)
IMPLEMENTING THE HR ACTION PLANS FOR ALIGNMENT: FACILITATING CHANGE (cont’d)
Involving Employees
Establishing Accountability
Change Has Already Started
Managing Resistance to Change
Showing Respect in Difficult Times
REVIEW, REVISE, AND REFOCUS
Projects to Extend Your Learning
CASE STUDY: Aligning HR with the Business at SBC
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5. The Strategic Importance of HR Planning for Alignment and Change
To succeed under new competitive conditions, companies must change vision, values, structure, strategy and corporate culture.
Changes in HR policies and practices encourage and support behaviors needed for organizational change.
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6. Alignment Vertical alignment Horizontal alignment
Exists when the HRM system fits with all other elements of the organizational environment—the culture, strategy, structure, and so on.
Horizontal alignment
Exists when all the HR policies and practices that comprise the HRM system are consistent with each other so that they present a coherent message to employees concerning how employees should behave while at work.
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7. Types of Organizational Change
Major transformations in the structure, size, or functioning of an organization for the purpose of achieving strategic objectives.
Degree of Change:
Radical change
Major adjustments in the ways a firm does business
Incremental change:
Evolves over time from many small routine changes
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8. Timing of Change Reactive Change: Anticipatory Change
Occurs when an organization is forced to change in response to some event in the external or organizational environment.
Radical or incremental
Anticipatory Change
When an organization takes action in anticipation of upcoming events or early in the cycle of a new trend.
Often incremental R
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9. Learning Organizations
Continually finds new ways to satisfy customers and other stakeholders by integrating information resources, technology, and people to produce and then effectively use new knowledge.
Constantly changing through experimentation and learning from others.
Planning ensures the HRM system provides learning opportunities to build competencies and keeps employees motivated and interested in learning.
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10. Aligning Human Resource Management in Learning Organizations
EX 4.1
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11. Phases in Strategic Business and HR Planning for Alignment and Change
CHANGES IN EXTERNAL AND ORGANIZATIONAL ENVIRONMENTS
EX 4.2
© S. E. Jackson and R. S. Schuler, 2005.
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12. Elements of HR Planning
Human Resource Planning Activities
Scanning and assessing the external and organizational environments.
Specifying the objectives to be achieved by HR activities along with the measures to be used to assess the achievement of those objectives.
Developing specific plans for HR policies and practices, along with timetables for implementing those plans.
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13. The Most Common Objectives When Changing HR Practices
EX 4.3
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14. How Well Is HR Planning Linked to Strategic Business Planning
How Well Is HR Planning Linked to Strategic Business Planning? (Responses from 1,277 HR Professionals)
EX 4.4
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15. Who Participates in the Development, Review, and Approval of Strategic Business Plans?
EX 4.5
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16. Scanning and Assessing the External and Organizational Environment
Economic conditions
Political landscape
Regional Trade Zones
Technology
Industry Dynamics
Labor Markets
Country Cultures
Laws and Regulations
Unions and Labor Relations
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17. Changing Age Demographics of the U.S. Population
EX 4.6
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18. Organizational Analysis
An assessment of the external and internal environments
Organizational Analysis Methods
HR forecasts
Employee opinions
HR cause-and-effect models
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19. Organizational Analysis (cont’d)
HR Forecasts
Estimates of the firm’s future human resource needs
Judgmental forecasts
Informed experts predict business trends
Statistical forecasts
Rely on objective data and formal models
Use historical data to predict the future
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20. Asking about problems and potential solutions:
Employee Opinions
Asking about problems and potential solutions:
Employee surveys
Focus groups
Involving employees in developing HR plans
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21. Behavioral Cause-and-Effect Models
Provide insight into why employees behave as they do
Identify the business consequences of employee behaviors
Models show:
Cause-effect
Connection between HRM and strategic success
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22. Example of a Behavioral Cause-and-Effect Model Developed by P&G
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23. Determining HR Objectives and Metrics
Linking HR Objectives to Strategic Business Objectives
Business objectives focus attention on:
The number of employees needed for growth or decline of the firm
New required competencies and behaviors for higher performance
Higher levels of productivity
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24. Specifying the Strategic Objectives of a Change Effort
Mergers and Acquisitions: Soft due diligence
Activities used to assess the compatibility of potential new partners, taking into consideration the corporate cultures and HR policies and practices in the organizations being combined.
Successful strategic changes are guided by clear objectives that flow from corporate and business strategies.
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25. Developing Metrics to Match the Objectives
Accepted as Legitimate
Relatively Easy to Use
Best HR Metrics
Connected to Business and HR Objectives
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26. “Bottom-Line” HR Metrics.
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27. HR Metrics for Risk Management at Deutsche Bank
EX 4.9
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28. Staffing Metrics Used by SunTrust Bank to Measure the Success of Its New Staffing Practices
EX 4.10
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29. Considering Alternatives
There are alternative ways to achieve strategic objectives.
Layoffs and reductions in force (RIFS)
Reducing turnover
Outsourcing
Offshoring
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30. Still More Alternatives!
Internal transfers
Restricting overtime
Reducing the hours in a standard workweek
Not renewing contracts for temporary and part-time workers
Offering temporary leaves
Job sharing
Retraining
Providing seed funds and entrepreneurship training and encouraging employees to start their own businesses
Transferring staff to other companies (e.g., suppliers, customers)
Giving early retirement with preferential conditions
Reducing executive salaries and incentive pay
Partnering with government agencies and professional societies to find jobs for displaced employees
Managing an employee buyout of the company
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31. Considering Alternatives (cont’d)
There are other alternatives to achieving strategic objectives.
For example, possible solutions to a labor shortage include:
Raise base wages to attract more applicants
Offer more financial incentives to boost productivity
Reduce turnover rates to lessen the need for new hires
Hire people without the skills needed and train them
Buy up other companies to acquire their workforce
Buy new technologies that require fewer workers
Utilize foreign labor markets
Make decisions that reduce the need for skilled workers
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32. Building a Complete HR Plan
A comprehensive HR plan for change is likely to have many components, just as a companywide plan for change has many components.
Staffing Plans
Talent Management Plans
Training Plans
Leadership Development Plans
Plans for Changes in Benefits
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33. Staffing Plans: Ensuring Supply Matches Demand
Succession Planning
Ensures key positions can be filled when vacancies occur
Talent Pool
A list of employees with high potential for advancement
Replacement Charts
Lists of key jobs, incumbents and names from employee talent pool
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34. Best Practices in Succession Planning
The process is simple, with minimal paperwork.
Process is decentralized and owned by local managers.
Information technology makes it easy to give employees feedback.
The process fits with the corporate culture.
Employees receive a variety of job assignments early in their careers.
Bosses are trained to hold good career discussions.
Bosses are held accountable for ensuring that developmental action plans are implemented.
One-on-one mentoring and mentoring networks are supported by the company.
EX 4.12
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35. Timetables Challenges Timelines for Developing Talent
Building deadlines and scheduling checkpoints to keep change moving.
Developing challenging but achievable deadlines.
Developing realistic expectations about change.
Timelines for Developing Talent
Timelines for Layoffs and Plant Closings
Worker Adjustment and Retraining Act of 1988 (WARN)
60 days’ advance notice of plant closings and layoffs covered under the act.
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36. Implementing The HR Action Plans for Alignment: Facilitating Change
Involving Employees
Task forces
Focus groups
Surveys
Hot lines
Informal conversations
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37. Implementing The HR Action Plans for Alignment: Facilitating Change (cont’d)
Establishing Accountability
Specifying who is responsible for making needed changes
Implications for holding people accountable for change efforts:
Improved performance measurement systems
Changes in incentive pay, promotion, and bonus systems
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38. Implementing The HR Action Plans for Alignment: Facilitating Change (cont’d)
Change Has Already Started
Employee involvement
Two-way communication
Empowerment
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39. Managing Resistance to Change
Reasons for Resistance to Change
Fear
Misunderstandings
Cynicism
Forms of Resistance
Criticism
Malicious compliance
Sabotage
Silence
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40. Managing Resistance to Change: Showing Respect in Difficult Times
Causes of Negative Reactions to Workforce Reductions
Loss of attachment
Lack of information
Perception of managerial capriciousness
Fear of future reductions
Challenge
Maintaining employee morale and regaining employee trust while the actions of the company seem to say, “You are not valuable.”
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41. Review, Revise, and Refocus
The success of products and services offered in the internal marketplace should be monitored.
Human resource information management system (HRIM) provides the means for collection and dissemination of evaluation data.
Make sure there are “short-term wins” to celebrate.
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42. TERMS TO REMEMBER Anticipatory change Horizontal alignment
HR forecasts
HR metrics
HR objectives
HR plans
Human resource planning
Incremental change
Judgmental forecasts
Learning organization
Offshoring
Organizational analysis
Outsourcing
Radical change
Reactive change
Replacement chart
Soft due diligence
Statistical forecasts
Succession planning
Talent pool
Timetables
Vertical alignment
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