Introduction
The strategic planning process allows for organizations to research, plan, formulate, and then implement. The strategic planning process serves as an exceptional tool for organizations and business to set the direction, and to ensure organizational success through developing tactics and operational plans (Reed & Boagardus, 2012). Strategic planning includes being engaged in the research, critical thinking, development, and operational action. Research data indicates that high involvement, high performance, high commitment management practices lead to “enormous economic returns” (Pfeffer, 1998, p. xv). Long term planning combined with an organizational vision will lead to sustainable success.
Associated Steps in Strategic Planning
The strategic planning process begins with environmental scanning process. This looks at the internal and external factors facing the organization. Based upon findings from environmental scanning, long-term and short-term goals and focuses can be established and worked on. Creating a common vision for the team of employees, communicating clearly for consistent buy in, and going forward with persistence creates opportunities for success. Pfeffer (1998) argues that strategic competitive advantage is achieved only when organizations properly utilize people in their organizations as the source of their company’s competitive success. To go along with environmental scanning, Reed & Boagrdus (2012) suggest the other three phases of strategic planning
being strategy formulation, strategy implementation, and strategy evaluation (p. 109).
Strategy formulation consists of the section of the strategic planning process when the organizational leadership will take all of the external and internal factors that were assessed in the environmental scanning phase and formulate the long-term guide for the organization (Reed & Boagardus, 2012). When the organization develops a long-term goal, different department leaders are able to collaborate and help their teams reach desired results.
Strategy implementation is the phase where the long term guide or goals created during the formulation phase are broken down in order to develop tactical goals and actions plans (Reed & Boagardus, 2012). Once goals are established, the HR leader can take the department goals and break them down into action plans, assigning duties and tasks to team members to help reach organizational goals.
The strategy evaluation plans is the phase that will determine if the organization is meeting the set goals and help adjust the strategy as needed (Reed & Boagardus, 2012). As the HR department takes on assigned tasks, the leader will meet with team members to discus strengths, weaknesses, and challenges in the process.
HR Planning and the Overall Strategic Planning Process
HR planning plays an important role in the overall strategic planning process. Pfeffer (1998) reminds us that it is the people in organizations who deliver value to customers and implement the firm’s strategy. HR managers and leaders have the unique opportunity to manage and lead the internal affairs as they lead the people to overall
organization successes. As HR planning centers around the people in the organization and how to make them the most effective in their specific role, the HR department will have contributed to their highest ability in regards to positively effecting organizational effectiveness and the overall strategic plan.
Necessary Components HR Must Consider When Developing A Strategic Plan
Human resource managers and leaders must consider the effectiveness and measurability of the methods being implemented. Initiatives being used must be relevant to the HR department goals and to the overall organizational goals. Weiss & Finn said, “although HR professionals and business leaders overwhelmingly believe human capital metrics are important, organizations may not always focus on measures that count” (Weiss & Finn, 2005, p. 33). Focusing on measures that count and relate is the most necessary component that HR must consider when developing a strategic plan. “HR typically measures its successes in the amount of hires made, performance reviews completed or training courses delivered; but if they are to work as an equal partner in strategic efforts they need to measure their success in the organizations competencies, leadership, culture, alignment and learning” (Righeimer, n.d., page 10).
Motivational Concepts
Motivational concepts should support the HR strategic plan. HR leaders may use a variety of leadership theories and techniques to lead themselves and their team to individual and organizational success. One method that may be implemented is
transformational leadership. The description of the transformation leader by Malos (2012) asserts a value and active participation in intellectual stimulation, individualized consideration, inspirational motivation, and idealized influence. Inspirational motivation may be spread through example, sharing quotes, or through individual consideration of each team member and tailoring a specific strategy based around their wants and needs.
Another leadership and motivational style that may be used is authentic leadership. Currently, authentic leadership theory is based on the modernist psychological assumption that an individual has a “true self,” independent of contextual influences (Caza & Jackson, 2011). This allows for employees to be valued for who they are, encouraging creativity and sharing of ideas. This can lead to employees feeling valued and important, which can lead to an increase in employee engagement. These leadership and motivational styles are similar in their approach to unite employees in the pursuit of organizational success. These motivational concepts differ in the way they motivate by sparking interest through intellectual stimulation compared to promoting self-awareness and acceptability of one true self.
Conclusion
When organizations take on strategic planning initiatives, a common organizational goal can be understood in the short-term and the long-term realm. Strategic planning gives HR leaders the ability to understand how each team member can play an effective role in reaching desired levels of success. As the HR leader understands individual strengths of weaknesses of their team members, roles can be divided and taken on dependent on strength and ability.
Resources
Reed, S. M., & Bogardus, A. M. (2012). PHR/SPHR: Professional in human resources certification. Indianapolis, IN: John Wiley & Sons, Inc.
Pfeffer, J. (1998). The human equation: Building profits by putting people first. Cambridge, MA: Harvard Business Press.
Chermack, T. J., & Kasshanna, B. K. (2007). The use and misuse of SWOT analysis and implications for HRD professionals. Human Resource Development International, 10(4), 383-399. doi:10.1080/13678860701718760
Weiss, D. S., & Finn, R. (2005). HR metrics that count: Aligning human capital management to business results. Human Resource Planning, 28(1), 33-38.
Malos, R. (2012). The most important leadership theories. Annals of Eftimie Murgu University Resita, Fascicle II, Economic Studies, 413-420.