Strategy and Human Resource
Planning
Chapter
2
This chapter emphasizes that HR considerations are a critical part of any organization’s
strategic plan. The authors present a six-step process that shows how HR planning and
Chapter Outline
STRATEGIC PLANNING AND HUMAN RESOURCES
Strategic Planning and HR Planning: Linking the Processes
STEP ONE: MISSION, VISION, AND VALUES
STEP TWO: ENVIRONMENTAL ANALYSIS
Competitive Environment
Customers
STEP THREE: INTERNAL ANALYSIS
The Three Cs: Capabilities, Composition, and Culture
Capabilities: People as a Strategic Resource
Composition: The Human Capital Architecture
Strategic Knowledge Workers
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Quantitative Approaches
Qualitative Approaches
STEP FOUR: FORMULATING STRATEGY
Corporate Strategy
Growth and Diversification
STEP FIVE: STRATEGY IMPLEMENTATION
Taking Action: Reconciling Supply and Demand
STEP SIX: EVALUATION AND ASSESSMENT
Evaluation and Assessment Issues
Generating Interest
Consider using the On the Job Video Case to generate interest and launch the discussion of
this chapter. See the Instructor’s Resource Guide for a discussion guide to the video case
questions.
Dealing with Trouble Spots
The goal of human resources planning can be described as having the right number of people
with the right skills in the right place at the right time. Three factors that contribute to the
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Involving Students
Use this example for Step One: Mission, Vision, and Values:
1. Read students this mission statement from a well-known company and ask them to
guess what company it is:
Our mission declares our purpose as a company. It serves as the standard against which
2. Coca–Cola’s vision statement describes what Coca-Cola needs to accomplish in the
3. Note how every one of their values relate on some level to their employees. Coca-Cola
states their values serve as a compass for their actions and describe how they behave in
the world:
• Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius