HR Management Term Paper on Human Resource Strategic Plan

Human Resource Strategic Plan

Foodex Saudi

Executive Summary

Human Resource planning has traditionally been employed in organizations to ensure that the right individual is in the right position at the right time. Under situations of relative environmental inevitability, it strategically focuses on short term planning. This is decreed heavily by line management affairs. Continuous increase in environmental instability, demographic changes, technological changes, as well as increased global competition are changing the need for the nature of human resource strategic planning in today’s business firms (Foot & Hook, 2011). Besides, firms are increasingly acknowledging that to sufficiently meet the HR expectations, they must establish both long – term and short – term keys for day to day operational challenges.

This report seeks to explore Human Resource functions in strategic planning. It defines various practices that are considered effective by planners as well as key strategic planning components. It incorporates these definitions, various existing literature, and comprehensive analysis to develop a strategic plan that best fits Foodex Saudi. 

Introduction

The Human Resource strategic plan is a document that lays an overview of the present human resource support and planning services within the organization. It links the affirmative action plans and the diversity plans together. The plan comprehensively defines human resource support and strategic planning projections over given subsequent years, while anticipating challenges the organization might face in workforce management. Planning is essentially the product of the interaction between line management and planners. Human resource strategic planning defines goals that are to address these challenges (John, 2012).

Several business firms develop a business plan before starting their operations. Failing to address possible threats in the market place can expose the viability of the organization. Conversely, failing to anticipate personnel needs can impact the entire organization’s success (Foot & Hook, 2011). As human resource planners involve themselves in extensive operations that serve the day to day business needs, and perhaps affecting the direction of the business operations, they face novel and heightened responsibilities and encounters.

Definitions

Foot and Hook (2011) define human resource strategic planning as the process through which the management identifies the direction the organization should move from its present manpower position to its intended position. Through planning, the organization endeavors to have the right number and kinds of people, at the right places, at the right time, doing things, which results in advantages, both to the individual and the organization as a whole.  Present-day human resource strategic planning operates within the broad context of organizational as well as the strategic business planning (Prasad, 2012). It encompasses forecasting the firm’s future human resource needs as well as plans on how these needs are achieved.

The term Strategic Planning is used to define an objective for Human Resource. Strategic planning has the possibility to affect the firm significantly at the long run and is integral to attaining the vision of the organization. Human Resource’s strategic planning related to the organization’s strategic goals. However, since a strategy is apprehended broadly, it is not in itself measurable (Secord, 2013).

Key Theme and Projects are also used to define more precise strategies that would improve the overall objective. This corresponds to the term “initiative” or “goals” in some other strategic planning lexis. Succeeding planning by the department will lay room for more specificity to these themes, projects, as well as intended tasks (Foot & Hook, 2011). 

Although strategic planning correlates to the broad directions and priorities of the department over a lengthy time duration, the term “Task” correlates to operational activities employing present and /or projected assets, normally within a specific financial year. The implementation of a given HR Task are measured by Human Resource Metrics, which quantitatively and qualitatively defines the effectiveness of the greater theme or project (Secord, 2013). On the same breath, the case, or rationale, for supporting projects, or tasks requirements will be its relationship the organization’s greater strategic plan using Strategic alignment. The strategy map will give highlights on every operations to the overall goal.

Finally, Strategic Planning is a continuing process (Bechet, 2008). The organization’s Human resource will employ this plan in ensuring that a culture of success for a high – performance organization. 

Mission Statement

The department of human resource dedicates to quality in practices by attracting, retaining, and developing a society of endowed and diverse individuals in support of the company’s quality agenda. This mission Statement defines in broad terms the primary purpose for Human resource’ existence including whom human resource serves. It also seeks to accomplish for the people or departments served. This statement encompass the real manner in which the company’s human resource will provide its services.

Within the context of this plan, it will enable the department of human resource to work jointly with other departmental units to achieve the company’s goals and objectives while enhancing quality and diversity agenda. It is developed to support the Human Resource department to attain its goals by working with hiring authorities to recruit and retain employees with appropriate skills, knowledge, and experiences, while affirming and promoting culture of quality and excellence.

Operating Context

Foodex Saudi is a company within the portfolio of food product manufacturing. The portfolio brings together established household top brands, manufacturing, marketing, and distribution within Saudi Arabia. Its products include fruits and vegetables, staples, meat, eggs, seafood, among various processed food products.

Human Resource department serves Foodex Saudi’s full and part – time employees. Human Resource has eight core functional departments that encompass Benefits, Human Resource Outreach and Initiative, Talent Acquisition and Operations, Employees Training and Development, Labor Relations to Employee Retentions. For the purposes of this Plan, Human Resource require that all the eight units are represented.

This strategic plan for human resource management is developed with an intent to enable Foodex Saudi adapt to uprising changes made in the organizational priorities and will be updated on a continuous basis. Local and sector activities within the Human Resource management flow from this strategic plan. The outcome springing from this strategic plan for human resource management will contribute heavily to the attainment of proactive human resource management and will be evaluated against the performance measures that are laid out in the organizational management framework. This document present an integral direction towards the transformation of human resource management within the organization and its contribution to stakeholders.

Why Strategic Planning?

As cited by Richards (2009), a primary objective for Human Resource Planning is to obtain the right number of individuals with the right expertise and competencies in the right jobs at the right time, and at the right cost. This guarantees that the business operation requirements are achieved in an effective and proactive manner. Keeping too many staff can tend to be problematic since it possess the risk of high workforce expenses, downsizing, or layoffs. However, too few employees can also be challenging due to high overtime costs, the risk of unachieved production needs, and the overhead of getting the instant human resources required to get the work done (Bechet, 2008). Kandula (2007) notes that human resource planning links people management to the firm’s mission, vision, goal as well as objectives, the strategic plan and budgetary resources (Prasad, 2012).

Positive management and planning of human resource has been acknowledge as a good practice in enabling the organization as well as its employees to better prepare to achieve organization’s future needs through ensuring effective delivery of products and service. This initiative will create and implement a structure that facilitate the identification of key areas of change, risks, and opportunity. It also includes the preparation of succession strategies to enable meet future requirements. Primarily, the focus is to enhance information on various workforces and future needs through an extensive analysis on demographic, succession planning, career planning requirements, and a forecast on workforce needs and deployment initiatives. This will enable the organization to effectively manage the human resource unit (Armstrong, 2009). 

We intend to identify departmental workforce requirements while exploring various opportunities for cross – departmental cooperation. We understand that this strategy demand extensive research to identify the organization future needs, as well as consultations with departmental units, with a concentration on specific areas of the organization where the risk is greater.

Further, another integral outcome of effective Human Resource Strategic Planning is the identification and application of key success factors that supports and reflects the achievement of its objectives (Foot & Hook, 2012). These keys to success are sourced using different techniques, such as various interviews and focused discussion groups curried out with stakeholders, managers, and employees in every organizational levels. These keys, when merged together, they lay the factors that we, as an organization, together feel are integral to the successful achievement of our corporate vision, mission, and organizational goals.

  • Shared leadership:

Political, administrative and bargaining unit leadership that supports the vision, strategies, and values

  • Defined roles, responsibilities, and accountabilities:

Effective work, job design and a clear delegation of authority. The staff should be aware of corporate and departmental direction and how their performance directly impacts goals achievements.

  • Management Partnership

Merged initiatives, agreements and collaborative decision making that reflect the human resource vision and values.

  • Clearly coupled Human Resource Guidelines

Organizational guidelines and policies that are meaningful, communicated, and acknowledge the need for departmental flexibility. Various practices that require corporate approach must be continuously and consistently applied to support the organizations goals and objectives.

  • A Positive approach to Human Resource Planning

This is to include extensive analysis on demographics, effective service delivery, interior and exterior best actions, and workforce trends

  • Access to enabling Technological trends

This ensures that employees have access to tools, resources, and trainings that enable them to deliver quality services.

Securing management as well as employee commitment to the Human resource plan is crucial to the growth of a successful workforce plan. Before initiating the human resource plan process, it is integral to develop commitment and awareness in the process at multiple organizational levels.

Human Resource Best Practices

The success of a firm is directly correlated to the performance of people who work for that firm. As mentioned by Armstrong, (2009), underperformance can be due to workplace failures. This is because hiring unsuitable group or failing to anticipate changes in hiring needs can prove to be costly, it is integral that the management employ various efforts into human resource strategic planning. Planning for human resource needs ensures employees have the skills and experiences the organization needs for its success.

A human resource strategy works with organization’s strategic plan to identify the resources it needs in meeting the firm’s goals and objectives. It best prepares the staff turnover, job placement, as well as strategic hiring, while alleviating stress during emergencies. Determining the human capacity the firm needs is an integral part of strategic plan. This involve determining various aspects of the business operations that demands attention, as well as the skills and experience required of a given employee. During employee hiring, it is crucial to look for persons who have particular set of skills and experiences and not just a particular person to occupy a particular job vacancy (Armstrong, 2009). The management should consider what novel positions are opening up as well as the special skills and work experiences that are needed for those openings.

Human resource must be directly tied to the overall organizations plan (Armstrong, 2009). In context to this, it is a best practice for management to outline what the firm does in terms of key functions and tasks. This involves a complete description of changes that might come into play as well as the direction that the firm will likely take in the coming few years. For example, if the firm is expected to increase sales by fifty percent over succeeding years, then it is crucial to consider the impact it will have on employee hiring and placements (Foot & Hook, 2012).

The immediate process after identification of business strategy needs is conducting a complete job analysis. This include review of the current workforce that the organization is in access to as well as skills and knowledge gaps within the organization. A description of employees the organization have in terms of their possible knowledge, skills, and experiences helps to map the organizations strategy and human resource. These aspects are mapped onto strategic plan to identify the skills and knowledge the management require for the projected tasks and operations. For successful strategic planning, it is integral to consider the following environmental factors and track how they may affect the organization.

  • Competition.

In most cases, firms will feel pressure to expand and hire more employees in order to remain competitive in a given market.

  • Technology

Technological changes may result in demand for employees in certain fields and professions

  • Economic

Economic growth and lower interest rates results in increased expenditure, and in certain instances, heightened business opportunities. However, fluctuations in the labor market affects the organization’s ability to find and retain employees.

  • Heightened customer demand

An increase in demand for products and services may demand more assets to enable produce or deliver services.

  • Labor force fluctuations.

These encompass resignations, terminations, leaves of absences, changes in employment level, retirement, and death (John, 2012).

Finally, understanding whatever it means to be part of a given group and to actually have the capability to be a member of the group is also integral. A group member has to familiarize himself / herself with other group members and develop a sizable relationships. This will involve acknowledging interpersonal relations, personalities, and characteristics of other group members. This should extend past task levels. The effectiveness of a group demands reputable relationship among group members at personal levels. This will open up the fundamentals for the required levels of trust for the group to develop reputable relationship among members (Armstrong, 2009).

Forms of Human Resource Planning

Key components of this Human Resource Strategic planning are continuous communication of its vision and key success factors, and development of various ingenuities as areas for primary focus. The strategic priorities work hand in hand in order to offer a balanced plan that has a long – term focus for the future.

This strategy outline a backbone for long – term direction in both human resource and organizational efficiency. As a result, it focuses on every aspects of human resource management within the organization. The strategy, therefore, defines a range of initiatives that have to be addressed in the short term. Conversely, over the long run, we seek to review and continuously heighten every element of the human resource management in order to guarantee their ongoing mapping with the organization’s overall future direction.

Human resource department is the hand that is responsible for providing the leadership needed in developing and refining the major operational strategy for promoting heightened professionalism, retirement, and support of different employee groups. In supporting various organization’s units, human resource provide the following key divisions of services.

  • Managing recruitment, selection, renewal, promotion, tenure, and merits for employees in various departmental units.
  • Managing relationship between organization’s departments.
  • Providing orientation of new employees
  • Managing organizational strategic planning.
  • Providing equity and affirmative practices
  • Providing education and training on subjects that relate to equity and affirmative practices, such as involvement in the recruitment and hiring processes
  • Developing, implementing, monitoring, and evaluating various policies and procedures.

In order to achieve the stated vision, the organizational departments must become collaborative partners in providing human resource services and attaining the needs of a diverse organization. Based on an extensive research on continuous growth of the organization, we have acknowledged for key strategic priorities that will enable the firm achieve the vision for Human Resource and organizational effectiveness. These priorities are settled on as those subjects that require immediate attention, based on analysis of the present situation and strategic choices to move ahead, and board consultation with stakeholders. These key areas are:

  • Training and Development (Leadership)
  • Performance Management
  • Classification and Compensation
  • External Labor force

Training and Development

Continuous training and development for employees is an integral support to guarantee a dynamic, knowledgeable, and skilled workforce. First, our main goal will be on developing effective leadership. Foodex Saudi may encounter management challenges if the next wave of leaders are not effectively developed prior to anticipate retirements. This is in alignment with Foot & Hook’s argument on best practices on an organization. He notes that developing the anticipated organizational culture cannot be attained without a clear cut approach to leadership development that is supported by the head management (Foot & Hook, 2012). To enable the firm get ready for the loss of knowledge and leadership due to retirements and abrasion, we seek to develop leadership skills, knowledge, and abilities at all organizational levels.

Organization’s leaders possess adequate skills and capabilities of setting clear direction. They must be able to clearly determine the organization’s priorities and ensure that staff and organization’s resources are mapped to achieve the set objectives. Their range of responsibilities should include provision of quality information throughout decision making processes in the organization (Foot & Hook, 2012).

Improved employee development and organizational effectiveness will also be met using range of work opportunities, job rotations, job seconding, and mentoring.

Performance Management

 

Managing performance enables to certify meaningful mapping between organizational set goals and objectives and employee’s day to day work plans, accountabilities, and career objectives. Primarily, the organization’s focus will be on proactive work planning and performance feedback systems. The need for an effective performance feedback system was one of the leading subject provided by staff during analysis for this strategy.

Every employee need to be aware of whatever is expected of him or her, the required skills, training, tools, right directions, and authority to undertake his /her work. This is followed by a clear and defined feedback on the performance of employees. This plan therefore, identifies performance management as a key developmental aspect for the organization. The objective is to mentor employee ideas and input while valuing innovation, creativity, and risk – taking. This aspect also has an intent of promoting and demonstrating that employee contributions are highly appreciated. It must have strong relationships with training and development initiatives (Bechet, 2008).

Classification and Compensation

This plan seek to redesign classification system that will have the capability to fully support and promote broader employee skill sets that are needed to overcome uncertainties. It will enable the organization to remain proactive in reorganizing delivery of services and products to the customers.

A complete redesign of the classification and compensation system will result in cross – training and heightened flexibility in work assignments while replicating every departmental needs (Foot & Hook, 2012). The organization objective is to contribute to effectiveness and cost savings in order to improve the capability to deploy human resource in response to service requirements by broadened job groupings, while developing distinct lines of progression to employees. 

External Labor Force.

This component refers to possible supplies of human resources out of the company that will impact forthcoming supply of staff (John, 2012). Assessing external workforce depends on labor market estimate that is based on local and global economic, environmental, and demographic changes. These factors encompass the rate of interest, unionization, economic development, level of unemployment, and political climate.

Tools and Techniques Used

One of the primary element for managing a company is formulation of the overall mission and objectives. Human resource planning is the process that creates mission, goals, and maps them to the developed and implemented strategies in order to meet the mission while working towards objectives (Bechet, 2008). Organization managers often employ various tools and techniques to assist in decision making strategic plans.

Swot Analysis

The SWOT Analysis as part of the strategic planning process will evaluate the company’s strengths against weaknesses, and opportunities against threats that may have impacts on business operations of the company. This analysis is an integral part of strategic planning process that enable the management better understand various risks as well as rewards of an investment(Prasad, 2012).

Foodex Saudi engage in processing and distributing food and beverage products. The management’s intent is to come up with a strategic plan while positioning the company against its major rivals who have similar and duplicated products. This analysis will therefore highlight the company’s major strengths, weaknesses, opportunities, and threats that the company may encounter.

Strengths

  • Foodex Saudi boasts the Saudi Arabia’s largest food industry
  • Foodex Saudi is expanding heavily leading to an increase in market share and production capacity
  • Saudi Arabia is home to a huge native population able to consume high – value packaged and processed foods
  • Foodex operates majorly on dairy products, which serves as a competitive advantage over its competitors in Eastern region.
  • The company has a well – established and strong local partnership with reputable companies dealing with imports, experts, logistics, Public relations, and marketing.

Weaknesses

  • Foodex Saudi’s uncompromising location in Eastern region has proved useless as a result of imposed restrictions on exports. In the present state, the firm’s location is impacting its ability to increase turnover.
  • The firm’s turnover somehow rely on food exports, which makes it susceptible to fluctuations in government’s export regulations.
  • The population is Saudi Arabia tend to be more price mindful than those in other regions, such as Qatar.
  • Saudi Arabia has a saturated food industry that lays little room for the firm’s growth.
  • Foodex Saudi is heavily dependent on imports for ingredients since the country suffers a heavy agricultural shortcomings.

Opportunities.

  • Food and beverage industry is anticipated to enter promising value and volume sales growth.
  • Demand for beverage is estimated to rise steadily as the industry diversifies and health mindfulness continually heighten.
  • Alternative drinks, such as herbal and fruit tea, have shown potentiality in terms of popularity, showing vast growth opportunities through product innovation.
  • The company is situated in Eastern region nearing fast growing food and beverage markets paving an opportunity for exports.
  • The fast growing of non – staple food, such as fish, fruits, poultry, and vegetables.
  • The demand for organic food is steadily increasing opening up opportunities for new markets

Threats

  • The demand for higher – value beverages fell in 2012, and despite recent improvements, consumer confidence remains way off pre – 2012 highs.
  • The emergence of new Food and Beverage firms posse great competition to the company.

SWOT Diagram

Strengths The company is the major food and beverage manufacturer in Saudi ArabiaEnhanced market share and production capacity due to the rapid growth of the companyThe growing trends in high – value packaged and processed foods. Dairy products acts as the firm’s competitive advantage over its rivals. Strong and well established local relationship Weaknesses Uncompromising location in Eastern region that tends to be useless as a result of imposed restrictions on exports. The firm’s reliant on food exports makes it susceptible to fluctuations in export regulations. Consumers are price conscious.Food and beverage industry saturation possess little room for the company’s growth.Overdependence on imports for ingredients.  
Opportunities Expectation of sales growth in food and beverage industryIncreased growth of alternative drinks, such as herbal and fruit teaCompany’s geographical position that paves an opportunity for product exportsConsumption of non – staple food is growing fastThe demand for organic food continues to increase steadily   Threats Falling demand for higher – value drinksNew Food and Beverage manufacturers

Forecasting Demand and Supply

A substantial component of a proactive Human Resource Plan is the method of forecasting. Forecasting defines all the interactions between the perceptual of the decision maker and cognitive procedures and the goal aspects of their environment. 

Over the short term period, demand and supply as part of human resource strategic planning can be projected with some certainty (Foot & Hook, 2012). Richards (2009) asserts that “human resource objectives follow logically from consideration of any discrepancies between demand and supply”. Demand may include the number as well as characteristics, such as skills, experiences, knowledge, pay level, and abilities of individuals needed for a particular job vacancies at a specific point in time and at a given place. Supply on the other hand may include both the number and characteristics of individuals available for those particular job positions. Some questions are, “what positions need to be occupied or vacated during the next twelve months?” (John, 2012, p.23) and “how and where will we get people to fill or vacate such positions?” (Kandula, 2012, p.57). According to Foot & Hook (2012), these questions can well be answered by projecting historical trend lines into the future. However, this is specifically integral for firms affected by regular, cyclical changes in demand for their products and services. 

Planning is used by organizations to buffer production or service delivery process from sources of uncertainty. Human resource elements, such as recruitment, selection, training, and motivation of employees enable to limit uncertainty since it ensures that an adequate number of people with the required characteristics and skills are available at all stages in the firm. Again, during short – term planning, there appears to be little uncertainty about which skills, experiences, and the number of people needed for these positions (Foot & Hook, 2012). As a result, it is even easier to predict supply. However, continuous fluctuations in today’s business environment makes the future difficult to project using the previous trends. Intents to develop workforce supply in organizational levels, such as senior management and technical professionals may depend on other aspects, such as the cost of living and competition within the industry.

Workforce dynamics and participation is heavily impacted by various factors. Primary amongst the existing drivers of workforce dynamics is the rise of major expansions within the organization. Notably, a distribution branch requires about 200 staff at its peak. The company employment strategy 2013 – 2016 require that this objective will generate an extraordinary demand for experienced personnel.

Other factors noted to influence the flow of workforce are the decline in the manufacturing sectors, technological changes as well as global financial stability. Human resource planning seek to consider these variables by strategically planning for the challenges and uncertainties in the future. This analysis should therefore have the capability to impact decision making process and deliver a clear perspective that will enable the management to reflect on the various factors that might affect the business operation of Foodex Arabia. The figure below summarizes major variables used in this analysis.

Feasibility and Cost Benefit Study

Feasibility analysis is a planning techniques that involve an extensive analysis on whether a given objective can actually be developed and implemented (Foot & Hook, 2012). Can the objective or project be cost effective? This tool will enable Foodex managers during initial stages of the planning process to explore whether to undertake a rising opportunity.

Cost benefit analysis is also a common strategic planning technique that the human resource seek to undertake. It involve an extensive assessment on the cost as well as any possible benefits that are linked with various courses of management practices and deciding on the course of action that will bring a greater net advantages.

Environmental Scan

Within the context of Foodex Saudi’s plan for its human resource functions, a sizable focus must be directed towards various trends and challenges presented by the environment. According to the market analysis, the increased demand in organic foods requires an extensive distribution strategies to enable reach out the market. Thus, with the exception of the discussion of workforce market, we limit our environmental analysis data to stated areas, such as demographics, technological changes.

Conclusion and Recommendations

The trend lines for environmental fluctuations discussed above clearly illustrate that the company should anticipate this transformation to continue for the projectable future. Effective management of this human resource management, new training and equipment for employees, and increase in specialized services as well as more specific and targeted interventions. More enhanced effort and related costs allied with the proactive management of the more diversified and complex business operation lays a very integral challenge for Foodex Saudi.

The question on whether Human Resource has been able to increase value and lay strategic objectives has since been out of the table. The types and degree of environmental changes impacting firms continuously have human capital effects in both organization objectives and business operations. While some human resource aspects will increasingly demand identical, challenging implementation, the need for proactive strategic human resource perspective is heightening. It is in this context that human resource strategic planning functions becomes integral and can add net cost benefit.

This report acknowledge the fact that no strategic plan is effective without successful recruitment, deployment, development, and management for human capital. Human resource aspects must create a perception of value during the entire planning process by indicating its knowledge, mapping, and success. As observed by, Foot & Hook (2012) the Human Resource function must successfully prove its ability in creating value to the firm throughout the stages of strategic planning process from environmental analysis, to organizational assessment, strategy creation, implementations, as well as the performance measurement.

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