First of all, strategic human resource management (SHRM) is a key issue in an organisation in order to maximise profit through achieving its goals and objectives.
According to Appleby & Marvin (2000) SHRM is generally, to manage people who seek to achieve competitive advantage through their skills, capabilities and knowledge they have that contribute to an organisation by the strategic development of a highly committed and capable workforce. Miller (1989) states that decisions and actions made by employees should meet the strategic goals by 'attracting and maintaining employees' in order to create, develop and sustain competitive advantages. Therefore, SHRM basically aims at development and improvement of people in order to achieve the goals and objectives defined strategically, as well as customer or shareholder satisfaction.
There are basically three models of SHRM, the best practice view, the best fit view and the resource-based approach. Cadbury is in the best fit model as HR strategy becomes more efficient when it is linked to its environment of the business. Two forms of best fit view that are external and internal fit that HR strategy fits with the demands of business strategy and activities fit together, so they can be a coherent whole.
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In the given case study, Cadbury's goals are firstly to deliver shareholder performance by gaining dividends and enhancing its reputation with staff as a 'fifth-placed priority'. Cadbury also realise that its workforce is a key element of achieving the goals.
Cadbury's approach in SHRM is the contingency approach. The contingency approach can be divided into two fits which is firstly the vertical fit that the HR strategy fits in with because of the demand of business strategy. Second fit is the horizontal fit, where everything fits together so that they make a coherent whole. So basically, a company can be effective when practices and strategies are aligned with other aspects and strategies of the company. Contingency approach can be said to be a situational-based approach that Cadbury manage people depend on what situation they are in. There is a framework of this by Fombrun (1984) followed;
Figure 1 The Human Resource Cycle (Fombrun et al 1984)
This chart represents all and any type of task and activities in human resource management that can be unified and designed in order for supporting and encouraging the business strategy.
This model is a simple structure to show the detailing written above, such as selection, appraisal and reward which can be developed internally to become better performances.
Cadbury have a wide range of strategies that is related to the Harvard Model (1984) and HR Guest Model (1989) of HRM. One important factor that can be extracted from the case study is that Cadbury aims to improve and enhance both the society, and staff over a pro-longed period, thus showing important relevance to both models in the example. One of the concepts of the Harvard model of HRM is the ''long term consequences' concept and this links in with Cadbury's business strategies, as they plan to change and continuously improve the staff at Cadbury which is showing a long term improvement. The business strategies of Cadbury related to the Harvard model are as follows;
Cadbury puts people issues higher up the agenda than other companies and they provide considerable advantage for employees ranging from housing to advanced factory conditions and welfare rights. They deliver superior shareholder performance which is one of the organisation objectives. They are also one of the few FTSE companies with an HR director - Bob Stack, in order to improve the Cadbury's leadership behaviours, for that reason, they developed a programme called 'Managing for Value' in order to increase understanding of the employees of how Cadbury could be more profitable. Cadbury also designed two share schemes and it showed people have a vast interest in the organisation doing well and so feel that the company's share can be worth having.
Figure 2 The Harvard framework for human resource management (Beer et al (1984))
Cadbury's HR business strategies also relate to the HR Guest Model, which can be described using four policies; strategic integration, commitment, flexibility and quality in order to create the desired organisational outcomes, such as job performance, problem solving, decision making which are one of the main concepts of the behaviour outcomes. This relates to this important factor of Cadbury as the staffs are changing their attitude and behaviour and so is the society through share scheme and several programmes with 3As policies that make people work together and become adaptable and flexible in order to create the desired outcomes for maximising profit and run a smooth business.
Always on Time
Marked to Standard
Figure 3 Guest's Theory of SHRM (Guest (1989))
There is an HR strategy of Cadbury related to the HR Guest Model with several programmes. 'Managing for Value' helps shape employee behaviours. This includes 'three As' that all employees in the company need in order to be especially results-focused are accountable - (working with as a team and individually), adaptable - (getting used to new environmental changes and new skills required) and aggressive - (being result-focused and tenacious). When Cadbury purchased a company, Adams, they created the 'Working Better Together' programme which operated, in order for working collaboratively as a team and another programme called was 'Growing our People' focused on behaviours and unlocking the potential of people.
Using your knowledge from Unit 8 and the related information about managing effective change evaluate the organisations approach to change assessing its impact and the role played by SHRM techniques and processes
Cadbury organisation experiences many changes that occur which improves the business. The study explains how two share schemes have been introduced recently that allows people who are interested in the business to take a share in it, in order to gain a valuable profit. This allowed more employees to feel as a part of the team, and this shows an important change that the company took on, which lead to improvement however a negative, could have lead to devastating results, but on a positive more resulted the changes in strong improvements.
As time goes by, many changes are made and occurred in organisations. New or different strategies and plans need to be operated for the changes. There are three types of changes which are developmental change, transitional change and transformational change. Firstly, developmental change makes companies to improve their current skills, knowledge and new techniques and strategies are attempted in organisations, however, and employees could get stressed of the new ways of the working environment. And transitional change, something completely new replaces in organisations, such as merger and acquisition, creating new products and services and technology changes that require new skills, knowledge and even new qualified-people as well as new ways of training for the new requirement. This change makes employee to be adaptable and willing to learn. In this change, a communication skill is really important between people to inform or to be informed where they are. Lastly, transformational change is basically mixed with both changes mentioned above, in this change, companies get new process slowly and transform themselves.
As so many different kinds of changes outside, HR managers keep communicating and informing employees throughout the process, and then employees are likely to accept the changes and face and deal with them.
In order to overcome changes, organisations have to choose what approach to use for the changes they are experiencing. Basically, there are two types of change approach, firstly, planned approach, organisation should a clear plan and provide and support employees for the changes by having a clear observation. Secondly, emergent approach, it can be called as a situational approach and more reactive actions than planned approach. Within this approach, a specific culture should be created 'readiness for change' in which employee can get comfortable and motivated to involve in the change they are experiencing, and give some ideas that could help the business. This cannot be driven top-down like the planned approach, as changes can be generated at any parts in an organisation. So having the culture is an essential task in the emergent approach to encourage people to be willing to involve, confront and deal with the changes. (http://www.corneliusassoc.com). Additionally, some companies also take OD (Organisational Development) approach which is an applied behavioural science that is focused on the organisation as a system (Beckhard 1969). It is concerned with an organisational capacity to solve problems and abilities to create a high quality of life for its employees as well as the abilities to adapt, change or self-renewal.
In the given case study with my point of view, Cadbury's change management approach is under 'planned approach', as Cadbury believe that supporting and encouraging their employee can really help achieve the business objectives, shareholders performance and enhancing its reputation with their staff. By launching 'Managing for Value', employees are getting aggressive and result-focused as well as an adaptable with new environmental changes. Also, when the company purchased Adams, 2003, 'Working Better Together' programme was launched in order to prevent the future complex that two distinctive cultures and so many thought went in to the culture of the business. And the evident of this approach in Cadbury is that HR manager - Bob Stack - is on the main board, top-down structure, moreover, Cadbury take proactive actions with a clear vision of the future.
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HR's role of change management is also important for the change management process. HR roles are to help managers identifying skills gaps, needs of training, new networking practice and so on to assess the impact of the changes in one area to another part of the organisation and to communicate with other various groups. Additionally, helping employee to cope with change, and motivate them is also HR's role that is most important, in my point of view.
In planned approach, as Cadbury took, there are responsibilities of the managers. First of all, the managers must have a communication plan in order to share up-to-date information, also they should identify barriers in the environment that could prevent changes and take an action plan for removing the barriers.
Moreover, a training plan also should be created. Managers need to find out the new skills or training required for the changes as well as a system for assessing and feedback of performances. Those managers roles above of planned approach have to be in change management.
Changes are in an organisation can be a risk, however, by communicating effectively, developing strategically, the risk could be converted positive aspects of the business
Evidences of transformation change in Cadbury which is basically mixed with developmental and transitional changes. There are many changes in Cadbury, strategy changes and cultural or even structure change sometimes externally and internally. Cadbury try to make sure that their employee can be involved with those changes and response to them in order to maintain their competitive advantage and for a repeat business in a rapid environmental change.
The strategy changes in Cadbury, in order to expand their market segments and product development, Cadbury purchased Adams in 2003 to keep their competitive advantages to fit the worldwide competitive situations as well as to become stronger against than other competitors in the confectionery industry. So Cadbury have moved and operated within a new structure in five global regions. The cultural changes in the company, first of all, when Cadbury and Adams were put together, there obviously must be two different cultures in the new structured organisation. This cultural issue had to be concerned to make its employees more engaged and motivated to be a winning business. Therefore, Cadbury had a programme called 'Working Better Together' in order to help have the same direction to the business objectives of Cadbury. Another change of culture, Cadbury have an HR director on the main board and Andrew Gibson got promoted to the role of HR director as Cadbury always try to find people who are aggressive, that is their core leadership behaviours. Cadbury have other programme in 1977, 'Managing for Value', which related to employees' behaviours changes with 3As; Accountable, Adaptable and Aggressive, that demonstrates employee should work collaboratively as a team within new environmental changes through skills and knowledge required and be result-focused. And also, 'growing our People' and 'Passion for People' programmes were introduced in order to focusing on employees' behaviours and people management as well as unlocking the potential of people to achieve desire outcomes.
From your knowledge of the course how does the HR Function seem to be supporting the Business Strategy at Cadbury's? In general how can HR best support and organisation going through change
In my point of view of this course, HR functions overall and general speaking, are selection, training and educating and rewarding with which organisation make better actions for achieving the objectives. Simply, how many staff companies have, in what way the companies educate and develop their skills and knowledge required and how the employees are kept by rewarding need to be considered.
HRM functions are used by large corporate in order to ensure a smooth-running business performance, is maintained, which for Cadbury relates to the training of employees and also in some senses rewarding them. Another function Cadbury use is the 'relationship builder' which for Cadbury led to the acquisition of Adams in 2003. Moreover, Cadbury went further make a relationship on five global regions in order for expanding and becoming an international company.
In addition, Cadbury also relies on the function of 'knowledge Management Facilitator' which in their business relates to the training of employees. In relation to the training of employees, another function which has seemed to be useful for the business strategy of Cadbury is the function of being adaptable against rapid environment changes.
Based on HR functions, Cadbury use a variety of business strategies, such as developing their employees in order to maintain a high standard corporate and also to develop their staff with business knowledge, allowing employees to be able to contribute business ideas, ultimately increasing profit and developing strategic capabilities.
Cadbury began the development of a programme in 1977 called 'Managing for Value' which aimed to increase staff knowledge, and has proven to be successful as well as more profitable. Cadbury have an important rule that allows them to efficiently select employees, both internally and externally. For example, Andrew Gibson was internally selected and promoted to become HR director.
For all staff, there is a specific rule showing the three As; 'accountable, adaptable and aggressive'. It means that working collaboratively as a team, being flexible as required, result-focused and tenacious. Cadbury use the HR functions of rewarding employees via the 'Sharesave scheme' which reinforces the rewarding criteria of HR functions. The 'Sharesave scheme' has been operating since 1974. What this scheme aims to do, is allow employees to feel more part of the team by allowing employees to have a share within the business, thus making the employees more financially aware of Cadbury's financial issues. This rewarding HR function enables Cadbury's employees to develop in the financial region making them more knowledgeable in the strategic financial region. Some more evidences on how HR at Cadbury provided, 'Working Better Together' programme came out in order to sort the cultural change out and develop integration of the employees and a programme called 'Passion for People' that is looking at the mechanics of managing performance. That is almost Cadbury's own way of approaching people management issue.
Today, so many changes have an impact in organisations. Cultural changes with new managers, strategy changes by new or different objectives and environmental changes such as new regulations by the government in a business field and technology change which is very rapid in the external business environment. In this circumstance, HR must keep observing the current changes and future changes that require specific skills and knowledge.
What is the value to organisations in creating a learning organisational culture? How can organisations work towards creating this culture through its HRM/HRD Strategies?
Learning organisational culture is an ability to embrace individual and organisational learning and a part of the business strategy that makes and helps people involved develop and grow their skills and capability and adapt and predict future environmental changes in order to keep and retain their competitive advantages against competitors (http://joshbersin.com 208). Learning culture must be focused on business goals and objectives mean that development and training must be done in the learning organisation. In order for this, the relationship between people in an organisation and a communication are the most important.
People always try to look for information to do their job from other people who the respect. That is the reason why, in learning culture, a good communication is essential and it motivates people to learn and deal with new environmental changes. If people are not motivated by learning, then, they will not be able to inspire others to learn. So, managers or leaders in organisations should provide a good working condition and tools which adds nothing, however, it reflects how active a learning culture might be.
The number one goal of any organisation, large or small, is to survive. To achieve the goal, strategic implications need to be considered, this is where HRM and HRD come into play. Roughly defined HRM (Human Resource Management) and HRD (Human Resource Development) are the institutions organised and carried out by companies to create long-term improvements for the company through project aimed at employees. The human resources departments are a people oriented structure, their ultimate goal is to create superior workers. There long-term goals would include items such as the employee's happiness, employee's skill levels, annual company profit, effectiveness, efficiency etc.
Change is an absolutely necessary item for a business to grasp onto. The world in which we live is constantly evolving, from new markets to the ever changing demands of consumers. Change is unavoidable to a company that would like to succeed. One of the most effective tools used to help ease corporations into change is making a learning organisational culture. Three well known definitions of the learning organisation are as follows. Starting off with the learning organisational culture definition by Edgar H, Schein, one of the leading researchers in this field of study, he stated, "The culture of a group can now be defined as: A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problem." (Schein 373-374) "Learning organisation demands a new kind of organisational culture which is characterised by open communication, reflection of action and basic assumption. Organisational culture can be seen as an outcome of previous organisational learning. Consequently, learning organisation and organisational culture are seen as mutually interactive theoretical perspectives and processes." (Kuittinen M, & Kekale), and "A learning organisation is one that seeks to create its own future that assumes learning is an ongoing and creative process for its members and one that develops, adapts, and transforms itself in response to the needs and aspirations of people, both inside and outside itself" (Navran Associates Newsletter 1993). Simply stated the organisational learning culture technique challenges employees on all levels, from CEO to office workers, to use personal knowledge and experience for gain to the company.
Higher | | |
Order | | Job |
| Job | Enrichment |
| Enrichment | and |
| | Enlargement |
| | |
Accent on |_______________|_______________|
Needs | | |
| | |
| Routine | Job |
| Job | Enlargement |
| | |
Lower | | |
Variety of Tasks
Figure 4 Impact of individualization on an organization (Schein (1968))
Learning organisational culture is the key to success. As stated above, it is an effective tool and therefore exudes great benefits to a company. Organisational culture thrives on a worker's independent thought. As such those companies using this organisational culture encourage their employees to be more free-thinking. Free-thinking and more individualistic employees perform better in the workplace. With the above diagram, this new form of free-thought input can then be used to evaluate the business. And then to tweak any imperfection, which might be something from conflict between two or more employees to one time or continuous misunderstandings between management and the workers, or vice versa. In regard to the challenges of change, an organisation's employees will be better suited for that change and increasingly adapted to it. Adaptation to new surroundings is imperative to survival. From the HRM and HRD training to create the organisational culture comes the employee's capability to transition nicely to new changes and to be able to manage it too.
HRD plays major roles in the development and sustaining of the learning organisation. HRD should be a designer of a system for learning. System is required to move the learning to where it is needed (Garratt (1997)), try to avoid relying on prescriptive recipes that may block ideas for the future. And also, HRD observes the overall process if facilities or opportunities are not being used and energy levels seem to be flagging. Having organisational culture also has benefits. They are creative thinking in new response, greater commitment and sustained flow of innovations and improvement as well as a superior global reputation. An added benefit to the company is that workers, in many cases, will be anticipating these new shifts to the future.
Anticipation to change is an outstanding benefit. It means workers are ready and willing to take on any new task coming their way, and to move into the future of the business.
Additionally, learning organisation culture can only be created and developed from the top management of the organisation. HRM and HRD could also create a learning culture. If people are afraid of making mistakes or the roles they have to do are not clear or confused, their ability to develop teamwork will be crippled. That is the one of the reason HRM and HRD exist in an organisation to create a learning culture. From the top or any level, HRM and HRD should be operated through encouraging, motivating and educating employee to learn and experience.
Leaning culture has elements that allow organisations to use mistakes as a learning method, that is not done for punishment, but any experiences could help performance gets better and better and also, they are to coach and train people to learn and maintain competitive advantages as well as to rotate people into development roles at all levels. To organisations, through the learning culture, any mistakes, experiences or issues occurred can be converted to a positive side as organisations keep learning from them how to deal with and predict external and internal environment.
Now onto a more external level of values brought to the company. With the new culture system puts into place the company will become more responsive to the changing markets. An increased interest and awareness into the marketplace will improve the quality of goods being offered, and as a positive result, customer satisfaction will also increase. As a more final result from customer satisfaction rising the annual profit of the business will go up.
Not only are long-term goals, as mentioned above, key elements of the HRM, but they also have an important role in the company. As most people are aware, human resources do the task of training the incoming employees or preparing existing employees for a higher position in the staff, but they also have many other important performance enhancing roles as well.
HRM/HRD, for example, carried out the roles of compensation and benefits directors. Meaning that they take into account what the employees want and need for benefits and a salary and then make the necessary decisions. Another important role of HRM/HRD is health and safety concerns for the business. They will make the necessary scheduling for safety inspections of drug tests (if required by the company). Without this department, an organisation would be in a hard time. The human resources department is like the glue for a company to hold itself together properly. This particular department is the assessor of how well things are going in the company, as far as the employees well being and their progress.
HRM and HRD are great resources used to implement the learning organisational culture into the workplace. The human resources department's main focus is to help the employees succeed, they are a department set up uniquely for people and make them the perfect candidate for the role.
In March of 1990 Robert Horton, Chairman and CEO of British Petroleum (BP), came up with a new project to be carried out with great help from HRM/HRD. Project 1990, it was called, was a survey oriented study designed to initiate a learning organisational culture into BP. "Project 1990 was rich in human resource (HR) initiatives: culture change, vision and values, and essential behaviours. All were a part of transforming BP into a new form of organisation that would attract and advance outstanding personnel." (Organisational transformation at BP: an interview with chairman and CEO Robert Horton). The programme initially started out with formal listening feedback from lower levels to the corporate levels and then progressed to an annual employee survey, made up by HRM and HRM. The feedback gathered from the surveys was an indication that the learning organisational culture change was a good move.
A second strategy used by BP's HRM and HRD departments was the Individual Development Programme, IDP. The specific programme was developed to select and train a special group of gifted employees. "The programme has remained privileged; those selected received careful senior management consideration. The programme is designed to ensure corporate resources for its most senior positions. It involves persons whose career development requires a more pluralistic approach, and seeks to provide a source of personnel who are able to operate in senior, general management positions. The programmes includes personal development program planning, mentorship, job rotation, internal and external education experiences, and, in some cases, external job postings. There are currently 182 staff members in the programme." (Organisational transformation at BP: an interview with chairman and CEO Robert Horton). By allowing HRM and HRD to operate this programme, BP was able to promote within and to keep it is most talented workers for future improvement. IDP ensures continued success for BP through human resources management and development.
Learning culture is very essential as people learn from others' knowledge or experiences they have had, it cannot be ignored. The roles of HRM/HRD must be clear and conduct people to learn through motivating to go to the final destination, maximising profit. Every single issue must be orchestrated in HRM/HRD in the learning culture.
Why is human resource planning such an important aspect of SHRM?
Human resource planning makes organisations to have qualified and skilled people to achieve their goals and objectives and to maintain their competitive advantage. Having a poor human resource planning has a devastating impact on organisation's performances.
Human resource planning (HRP) can be defined as, "A process which anticipates and maps out the consequence of business strategy on an organisation's human resources. This is reflected in planning of skill and competence needs as well as total headcounts." (http://www.hrmguide.co.uk). Human resource planning is, "The development of strategies of matching the size and skills of the workforce to organisational needs. Human resource planning assists organisations to recruit, retain, and optimise the deployment of the personnel needed to meet business objectives and to respond to changes in the external environment. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This may include the development of training and retraining strategies." (http://dictionary.bnet.com). Human resource planning is an activity related to taking the people in the right place in a good timing with the right budget (Bolton 1997).
It can be understood and give the concept of human resource planning simply, in order to achieve the objectives of an organisation. Recruiting people who have skills and knowledge required and putting the people at the right place where needed are the basic takes of HRP. There are two parts in HRP, hard and soft (Marchington and Wilkinson 1996). Hard HR planning is focused on objective with direct control of human resource, on the other hand, soft HR planning is described in terms of indirect control and is more focused shaping of organisational culture. HR planning should be with those two approaches, HR managers have to use hard and soft HR planning by motivating and encouraging employing through shaping the organisational culture in order for achieving the goals. In my point of view and I believe, using only soft HR planning could make the business performance better as better performance is from better condition of workplace and the organisational culture.
The main aims of human resource planning are to make organisations to anticipate their coming future needs and to try thing which could help the organisation to meet the needs. Also, HR planning should be considered the time period, long term and short term in order to make sure that employees are available with skills when companies need. And organisations could be proactive rather than reactive. It does not mean that reactive is wrong, but it means that by being proactive, they could anticipate and prevent the predictable risks, as well as find the best people.
Figure 5 Human resource strategy (Thomas (1996))
Human resource planning is an essential issue in an overall human resource strategy. According to the chart above showing generally overall activities of an organisation, missions, visions even goals and objectives of each department could be made and generated themselves as HR planning is the second step. When they have been decided by top or senior managers, for taking actual actions, manpower or HR planning must be done. It means that between those departments even other specific aims and the action plans, HR planning must be existed as HR planning is to put right people at right place (Bolton (1997)). Even though this chart is not for mainly about human resource planning, in my point of view and we can see clearly in that chart, HR planning has an important role that links and connects between goals and actions.
Having a good HR planning has several advantages. First of all, it enables all people involved in an organisation to go through a right direction as it is very proactive, so the people may be able to deal with some kinds of problems and changes. And also, it enables the people to be able to find what skills or knowledge the organisation wants or do not want, then HR planning could have new qualified people and develop, educate and train the existing employees. Lastly but not least, HR planning enables employees to communicate effectively, then employees can exchange and share up-to-date information in which employees could perform readily.
The importance of human resource planning of SHRM is that it dissects and looks at an organisation's progress, on both an individual and on a general basis. By being able to structurally look at progress of the business and of its workers only then can their strengths and weaknesses be determined. Each worker is valued in a business and should have their own skills evaluated for improvement. If problems arise concerning that of an individual, who is therefore creating negative circumstances to their employer, action must be taken out. The strategic planning process of HRP will show this. The planning process, through its detailed scan of workers and the work place, will weed out the imperfections and give the business and insight into areas needed to be improved upon. "Due to this, human resource planning can prove an important ally, and possibly, a champion to organisational development." ( http://wiki.answers.com )
Meaning that the human resource planning is not meant to be a negative at all to a business but rather a positive learning and growing experience to better develop skills and training and the overall advancements made by the company. With the human resources planning companies can get a glimpse of what is not working out in their own managing processes, and then with that glimpse they can tweak it to improve their own success in the future. Other benefits of the HRP process include finding areas to reduce workplace spending, seeing how well programs and strategies are working out, and assessing company growth. A business is always looking for opportunities to reduce the amount of money being spent for unnecessary projects. With the decline of overspending on non needed items the organisation can then either save the profit or make better use of the spending to improve itself and better reach its needs.
The human resource planning process can then be broken down into smaller division and then implemented into a strategy for a human resources management team to use. One of the most widely used strategies and most well known was thought up by a man, Edgar Schein (1997). He was a leading expert and researcher on the topic of human resources management and human resource development (HRM and HRD). His own HRP strategy was broken up into these three main categories followed;
Strategic business planning - meaning that a corporation, mainly the human resource aspect of the corporation, would set up a strategic action to improve problem areas in the hopes of improving themselves for their future.
Job/Role planning - the developing of job titles and descriptions as well as strategising techniques for job training. This can also be related to eliminating current employment positions to make way for new and better ones.
Manpower planning and HR inventorying - this simply means that a business would make strategic plans to enhance capabilities of current employees as well as making advancements for future employees also. Human resources inventorying incorporates keeping up to date with skills and capabilities of employees.
Additionally, Schuler and Jackson (1996) made the process of HR planning with five phases followed;
Identify the key business issues
Determine the human resource implication:
Forecasting human resource demands (qualitative forecasting, using judgmental and estimation techniques such as the Delphi method, where managers meet to take turns at presenting their forecasts and assumptions to the others, who then make revisions in their own forecasts; quantitative forecasting, using statistical projections)
Forecasting human resource supplies (internal and external)
Develop human resource objectives and goals (what to accomplish)
Design and implementation of HR policies, programmes and practices (i.e. how to accomplish objectives and goals)
Evaluation, revision and refocusing (linked to HR objectives and goals)
Table 1. Five phases of HR planning (Schuler and Jackson (1996))
One issue all manager have to face is how specific and concrete these plans should be. Moreover, in HR planning process, there are two perspective of HR planning process, system and processual perspective. The system perspective is a one way from HR planning to actual acting tightly, however, processual perspective is an action of encompassing negotiation, revision as well as rethinking. HR planning should be seen of processual perspective that is not controlled tightly as the system perspective is.
One question often asked in related terms to human resources, in general, but specifically the planning aspect is whether or not these terms apply to both large and small business, or to just one or to the other. In the case of human resources planning in most cases, it has been noticed that only a large company will need to use it with great detail. That is because the larger company will have more employees, resources, profit, etc. compared to its smaller competitors. But it is not to say that a small business will not be using a form of human resources planning for its own gain. In any circumstance and for any company large or small human resources planning, or at least some form of "planning", is a necessity. As a large company IBM finds necessity in the strategic planning that comes from its HRM department. IBM recognises that a more intelligent workforce is becoming more widely needed and used in the workforces around the world. As such IBM implemented its research of the changing world with its HRP people and found that it would focus on three areas that if found to be most suitable to increase progress in the company. Those three were; letting HR use company data to complete business decisions, the development of a model to calculate the employee performance in HR, and finally designing strategic change in its HR programme. All of these concentrated areas were devoted to IBM's human resources department. "If HR does not force its way into the heart of strategic planning in organisations, it will default to a technical and transactional dead end." (Helen Drinan (former president and CEO of the Society for Human Resources Management, SHRM)). IBM realised that in its own human resources plan that it wanted to improve its human resources department. IBM realised the importance of HR and that by improving its HR department through this strategic planning that it would be able to better improve its company as a whole
To sum up, SHRM is a key factor in an organisation. It stands in the middle of the business strategy, when once business goals and objectives have been come up, then the role of SHRM starts linking the goals and objectives to the action plans by planning with people who are qualified and skilled and putting them at a right place in order to achieve and meet the desired outcomes. As well as SHRM strategy enables organisations to obtain and maintain its competitive advantages.
As a company, Cadbury, has been mentioned in what way SHRM works in a real business field. Creating and having a learning organisation culture also essential inside organisations to have a good working environment. Lastly, human resource planning is the main task in SHRM. SHRM cannot be mentioned and said without this main task, human resource planning, it involves a combination of thoughts and actions of business strategies that contribute to long term corporate success.