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Problems associated with the performance appraisal process include appraiser discomfort,
lack of objectivity, halo/horn error, leniency/strictness effect, central tendency error, recent
behavior bias, personal bias (stereotyping), manipulating the evaluation, and employee anxiety.
Strategic HR Planning
Strategic HR planning is an important component of strategic HR management. It links HR
management directly to the strategic plan of your organization. Most mid- to large sized
organizations have a strategic plan that guides them in successfully meeting their missions.
Organizations routinely complete financial plans to ensure they achieve organizational goals and
while workforce plans are not as common, they are just as important.
The strategic HR planning process
The strategic HR planning process has four steps:
Assessing the current HR capacity
Forecasting HR requirements
Gap analysis
Developing HR strategies to support organizational strategies
1- Assessing current HR capacity
- Based on the organization's strategic plan, the first step in the strategic HR planning
process is to assess the current HR capacity of the organization. The knowledge, skills and
abilities of your current staff need to be identified. This can be done by developing a skills
inventory for each employee.
- The skills inventory should go beyond the skills needed for the particular position. List all
skills each employee has demonstrated. For example, recreational or volunteer activities
may involve special skills that could be relevant to the organization. Education levels and
certificates or additional training should also be included.
- An employee's performance assessment form can be reviewed to determine if the person is
ready and willing to take on more responsibility and to look at the employee's current
development plans.
2- Forecasting HR requirements
The next step is to forecast HR needs for the future based on the strategic goals of the
organization. Realistic forecasting of human resources involves estimating both demand and
supply. Questions to be answered include:
How many staff will be required to achieve the strategic goals of the organization?
What jobs will need to be filled?
What skill sets will people need?
When forecasting demands for HR, you must also assess the challenges that you will have in
meeting your staffing need based on the external environment. To determine external impacts,
you may want to consider some of the following factors:
How does the current economy affect our work and our ability to attract new employees?
How do current technological or cultural shifts impact the way we work and the skilled
labor we require?
What changes are occurring in the Canadian labor market?
How is our community changing or expected to change in the near future?
3- Gap analysis
The next step is to determine the gap between where your organization wants to be in the future
and where you are now. The gap analysis includes identifying the number of staff and the skills
and abilities required in the future in comparison to the current situation. You should also look at
all your organization's HR management practices to identify practices that could be improved or
new practices needed to support the organization's capacity to move forward. Questions to be
answered include:
What new jobs will we need?
What new skills will be required?
Do our present employees have the required skills?
Are employees currently in positions that use their strengths?
Do we have enough managers/supervisors?
Are current HR management practices adequate for future needs?
Ensure that the board chair, executive director and senior managers agree with the strategic HR
plan. It may seem like a redundant step if everyone has been involved all the way along, but it's
always good to get final confirmation.
2- Communication
It is impossible to communicate too much (but all too easy to communicate too little), especially
when changes involve people. However, the amount of detail should vary depending upon the
audience.
Ensure that the actions you are considering are compliant with existing laws, regulations and the
constitution and bylaws of your organization.
4- Organizational needs
Whether you are increasing or reducing the number of employees, there are implications for
space and equipment, and on existing resources such as payroll and benefit plans.
5- Evaluation
HR plans need to be updated on a regular basis. You will need to establish the information
necessary to evaluate the success of the new plan. Benchmarks need to be selected and measured
over time to determine if the plan is successful in achieving the desired objectives.
Build Your HR Strategy
- Once you have identified key people, you can effectively develop and implement an HR
strategy to ensure that you have the right people with the right skills doing the right things in
those jobs that are important to the successful execution of the business strategy.
Remember that studies of HR strategy suggest that there are some best practices,
including:
• Recruiting large pools of applicants that enable you to be more selective.
• Using valid selection tests to assess the skills of the applicants.
• Performing regular appraisals to distinguish levels of performance.
• Giving regular formal and informal feedback.
• Providing substantial training to upgrade or maintain skill levels.
• Offering competitive pay packages.
• Tying monetary incentives (merit increases, bonuses, etc.) to high performance.
• Providing information on the company’s performance, competitors and industry.
• Allowing employees to participate in decisions
International HR Issues
Compliance with International Laws
As businesses begin to expand into the global marketplace or as they hire employees
from diverse geographic and cultural backgrounds, they may have to adapt to new labor
laws and tax liabilities. Doing business in Europe, for example, will require the business
to pay value added tax.
Cultural Diversity
A salient issue in international HR is understanding and maintaining cultural diversity.
Working with people from different locations or from different cultural backgrounds
mean adapting the business's work style to new ideas, new ways of communicating and
unfamiliar social practices.
Benefits and Compensation
Benefits and compensation are the backbone of any HR strategy, but in international HR,
benefits and compensation are even more important in focusing on the work-life balance
of employees. The idea behind work-life balance is to provide employees with programs
and initiatives that improve both their personal and professional lives. This is considered
part of international HR, because many multinational companies have already
implemented programs such as flexible working time, paternity leave, extended holidays
and on-site childcare.
training and Development
Training programs typically encompass in-house seminars and meetings designed to give
employees on-the-job knowledge of skills that are important to doing business globally.
HR might offer language classes, for example. Professional development encompasses
the "extra" training that HR provides to its employees, such as allowing them to attend
networking events and conferences, global training seminars and other specific
competency-based programs.