Strategic Planning and Human Resource Practices

In every organization, motivation and incentives should be attached with a goal to work on. A needs assessment and HR development strategies should be deployed focused towards accomplishing the organization’s mission. Such needs assessment and HR development and their effective planning leads to improved productivity. It is then implemented by using macro tools, such as Management by Objectives at the individual level, and Total Quality Management at the group level.

Strategic planning is referred to as rational examination, considering ‘what should be implemented’ and ‘what is the right path to implement a strategic plan’. Strategic planning is focused on the future, how and what it should be. Therefore, it steers the development of an organization. Besides, it also helps in converting individual efforts into a team effort. It helps in the development of goal-oriented performance evaluation and total quality management. Employees can be assigned with accountability for results. The process itself is a team-building course that contemplates into perceptions different individual and different projects and is focused upon achieving systemic viewpoints. All the managers involved in making strategic planning should also make themselves aware of other potential concerns, for which they need ample training as well as revised training in order to cope with unexpected queries that may arise post implementation. There could be fights, ambiguities and chaos in the beginning and for some time thereafter.

The real benefits of strategic planning can only be well utilized if the individuals learn how to implement it and know its value. In a cosmopolitan, knowledge-based organization, strategic planning is basically referred to as strategic human resource planning. The empirical research studies revealed that the strategic human resource management affects organizational performance. Some of the common HR practices include formal training systems, career structure, result-oriented performance evaluation, employee participation, employment security, detailed job profiles and reward-based compensation, which form the basis of the theory of strategic human resource management and contribute significantly to organizational success.

Formal Training Systems

It should not be taken for granted that each employee comes with a required skill set. In today’s world of advancement, there is the need for particular adjustment. Not just a fresher but even a well-trained employee would need specific training to become an ideal worker for a particular job and make a valuable contribution to the existing team. It is the supervisor’s prime role to arrange for the capacity build of the people in his / her unit. While the managers play the role of coaches, other employees take on the role of implementation. Each manager needs to ensure that the employee is geared up to undertake the task. Though the potentiality of training and development is known, they are often neglected at many organizations.

Career Structure

A career structure is essential for an individual to focus on the strategic concerns of an organization in the due course. Any goals and incentives attached to the short-term can result into dysfunctional behaviour and objective dislodgment. A long-term perspective encourages an employee’s dedication towards the organization. This induces organizations to deploy training and invest in productivity enhancements, with an expectation of reaping benefits through improved knowledge and experience. Trainings are focused on the development of existing job skills instead of that of the employee for further performance improvements.

Result-Oriented Performance Evaluation

A performance evaluation system acts as a support to making informed decisions related to promotion, demotion, compensation, and transfer, and as a guiding tool for assessing training requirements and employee feedback. Besides, it also supports in effectuating various other functions of the organization, in terms of selecting and hiring practices, maintaining employee-employer relationship and fostering the organizational culture.

Employee Participation

When an employee exits the organization, a typology of his/her responses to dissatisfaction should be recorded. The theory of employee self-interest drives on the economic market in relation to socio-political values, and attempts to justify the survival of the organization. The decisions taken on the acceptance or dissatisfaction of an organization’s goods or services are correlated to similar decisions taken by the organization’s manpower vis-à-vis the organization. Any efforts made to bring change to a perceived depressing situation can evoke voice, which could indicate a political dimension encompassing a basket of behaviours, including participative management, democracy and grumbling. This signifies a feasible, non-market source to ensure the survival of an organization. The voice is based on the internal advocacy of reform, and loyalty on the willingness of the employee to ‘stand up’ for the organization. Advocacy is an outcome of external criticism and an expression of confidence in the organization.

Employment Security

Employee rights act as a safeguard to assure that employees maintain the dignity every human being has the right to. There ought to be legal, formal systems to cope with abuses and prohibit any wrongful practices. Employment security always remains a characteristic of public employment, in that it enables employees to focus in doing their job than worrying about losing their job anytime.

Performance-based Pay

It is important that all decisions concerning pay and incentives are designed to attract, motivate and retain employees in an organization. Therefore, the pay structure should be designed such that it adheres to above. However, a majority of organizations put a limit to their pay system to only a percentage of the pay package. Only those who perform well are guaranteed a standard pay package. Nevertheless, this also keeps the employees ensured about them financial security and helps in retaining them in the organization. Various extrinsic performance-based pay systems are adopted by organizations. The most known and frequently used system is the base-pay system. Here, the pay is put at risk without endangering the employee’s basic financial security. The employee’s overall performance can be addressed, whilst simultaneously the group performance can also be measured at team level. Individual pay systems on the basis of performance increases, whereas bonuses, gratuities and annuities are standard across all skill sets. Also, performance-based incentives are encouraged at all levels to induce employees to work efficiently throughout.