| In an annual survey from the London-based Economist | | | | education, experience, and compensation history can |
| Intelligence Unit entitled, CEO Briefing: Corporate | | | | address changing needs. |
| Priorities for 2006 and Beyond, senior executives | | | | 2. Demand Analysis: Forecast the competencies that |
| worldwide indicated they were unhappy about their | | | | will be required by the company's future workforce to |
| company's HR functions. Historically known as a | | | | be successful. Review internal and external influences |
| support department with a lot of responsibility and little | | | | to predict how the nature of the work will change. |
| control over outcomes, HR has taken a direct hit. To | | | | These include reviewing the business mission, |
| survive in organizations driven by globalization, changing | | | | strategies, goals, legislation, economic conditions, |
| demographics, cost containment, advanced technology | | | | technological advances, and market competition. |
| and legislation, HR must prove its importance by acting | | | | Scenario planning is an effective way to systematically |
| as a strategic partner and aligning with company wide | | | | evaluate these variables by answering the question, |
| objectives, or face outsourcing themselves. | | | | "What would happen if...?" They may also be |
| The new HR professional performs transformational | | | | developed through the use of back-casting. |
| work that involves knowledge management, foresight, | | | | 3. Gap Analysis: Compare the supply and demand |
| and strategic redirection and renewal. Knowledge | | | | data collected during steps 1 and 2. The results |
| programs evaluate and manage the process of | | | | determine skill surpluses, skill deficiencies, and help |
| accumulation, creation, and application of intellectual | | | | pinpoint who is at risk. |
| capital. Foresight is used to plan for the future. | | | | 4. Solution analysis: Develop strategies for closing the |
| According to Edward Cornish, those who study the | | | | gaps identified in step 3. Identify ways to build skills that |
| future concentrate on three areas. First, they believe | | | | are in short supply and reduce those that are overly |
| that the world and all its systems and inhabitants are | | | | abundant in relation to the organizations projected |
| interconnected and dependent on each other. Second, | | | | needs. Focus on optimizing the current and future |
| they are focused on time as a critical force and | | | | workforce. |
| believe that to change the course of events, one has | | | | Strategic human resource planning drives the other |
| to begin now. Third, ideas of the future are paramount | | | | human resource management functions by providing a |
| for improving the lot of humankind. Knowledge | | | | framework for policies and programs such as |
| management and foresight are both used in the | | | | compensation and training. The process is used to |
| strategic processes. Strategy-making involves | | | | determine how people will be hired and used in the firm |
| capturing data from all sources, including insight, internal | | | | as it considers: |
| and external material, and then synthesizing the | | | | - Tasks and responsibilities that are tied to business |
| learning from that data into a direction for the business | | | | goals |
| to pursue. It encompasses projecting knowledge into a | | | | - Competencies and skills necessary to produce |
| future state of existence. These skills allow HR leaders | | | | outstanding performance |
| to act as consultants in the advancement of state of | | | | - Which combinations of resources are most |
| the art systems and processes for use within the | | | | productive |
| organization, and to help business unit line executives | | | | - Tools designed to make the better hiring choices |
| strategically address and forecast staffing needs. | | | | A strategic staffing plan that is carefully designed and |
| There is a two-way relationship between human | | | | executed transforms hiring practices to align with the |
| resource planning and companywide strategic planning. | | | | organizations human capital and strategic goals. These |
| Human resource planning helps the organization create | | | | methods improve employee utilization and the |
| a feasible strategy that makes sure people are | | | | company's overall effectiveness and competitive |
| available with the appropriate skills to pursue the firms' | | | | positioning. |
| strategic objectives. It identifies gaps between staffing | | | | In concluding, we must realize that job markets today |
| needs and current or projected demographics, | | | | are about variety, choice, and change. HR |
| determines the strategy for recruiting, retaining, or | | | | professionals that think like futurists and take a |
| retraining critical talent, and monitors those strategies to | | | | strategic approach to designing organizational |
| ensure alignment. According to Raymond Noe, from his | | | | structures can lead their company into a new era. This |
| book, Employee Training & Development, "human | | | | involves the continuous process of futures fluency; |
| resource planning includes the identification, analysis, | | | | gathering data to monitor changes, accessing the |
| forecasting, and planning of changes needed in the | | | | implications of change, imagining alternative futures, |
| human resources area to help the company meet | | | | envisioning ideals, and planning. The success of future |
| changing business conditions". Planning allows a | | | | American corporations relies on the development of |
| company to anticipate the movement of employees | | | | systems and practices that attract, retain, and develop |
| due to turnover, transfers, retirements, or promotions. | | | | a skilled, educated, and talented workforce. |
| Rapid technological advances can cause serious | | | | References |
| mismatches between the jobs available and the | | | | Economist Intelligence Unit. "CEO Briefing: Corporate |
| number of people with the necessary skills to fill those | | | | Priorities for 2006 and Beyond." Graphics.eiu (2006). |
| jobs. Strategic HR matches employee skills with other | | | | Hoyle, John. Leadership and Futuring: Making Visions |
| positions in the organization when necessary and | | | | Happen. Thousand Oaks: Corwin Press, 1995. |
| provides training to prepare employees for increased | | | | "Knowledge Management." Wikipedia (September |
| responsibility or predicted job opportunities. | | | | 2006). |
| Since strategic staffing involves forecasting the supply | | | | Messmer, Max. Human Resources Kit. New York: |
| and demand of appropriate human resources for the | | | | Hungry Minds, 1999. |
| organization, planners must understand the external | | | | Mintzberg, Henry. "The Fall and Rise of Strategic |
| business environment and the trends that occur within | | | | Planning." Harvard Business Review Jan-Feb 1994: 107. |
| it. In an article called, "Workforce Planning: The | | | | Morfield, C. "Workforce Planning: The Strategy Behind |
| Strategy Behind Strategic Staffing," Christina Morfeld | | | | Strategic Staffing." SHRM. |
| suggests using a four-step model to staff strategically. | | | | Noe, Raymond. Employee Training & |
| | | | Development. New York: McGraw-Hill, 2002. |
| 1. Supply Analysis: Identify the demographics and | | | | O'Toole, James., and Edward Lawler III. The New |
| competencies of your current workforce by examining | | | | American Workplace. New York: Palgrave Macmillan, |
| attrition statistics, including resignations, retirements, | | | | 2006. |
| internal transfers, promotions, and involuntary | | | | Schultz, Wendy. "Defining Futures Fluency." Regent |
| terminations. A skill inventory that captures information | | | | University (1995). |
| on each employee's knowledge, skills, abilities, | | | | |