Human Resource Management (MGT501) VU
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STRATEGIC PLANNING AND HRIS
After studying this chapter, students should be able to understand the following concepts:
Human Resource Information Systems (HRIS)
Relationship of HRIS with overall MIS
A. Strategic planning:
It is the process by which top management determines overall organizational purposes and objectives
and how they are to be achieved. The linking of HRM with strategic goals and objectives in order to
improve business performance and develop organizational cultures that foster innovation and flexibility.
The role of HR in the strategic planning process depends on the organization's view of HR. There are
three views detailed in the text which involve HR as an operational function, HR as a "fitting" function,
and HR as an equal partner in the strategic planning process. Obviously, it is our contention that the
latter is the appropriate view. In this view, HR's role would include environmental scanning,
competitive intelligence, internal strengths and weaknesses analysis, and the implementation of the
strategies. HR process involves following activities or steps.
I. HR Planning Process:
a. Determine the organizational mission:
It states Organization’s overall purpose and basic business scope and operations it provides
information like, why does our organization exist? What unique contributions can it make?
b. Scan the organizational environment.
This is also known as SWOT analysis through this process organizations identify different
opportunities available in the market and the threats that can be faced by the organization, and
the weaknesses and strengths possessed by organizations are also measured and identified
through this process.
c. Set strategic goals:
To achieve the overall mission or purpose of the organization it is required to set specific long-
term and short term objectives and goals. The goal can be defined as desired outcomes to
accomplish mission. Following are the characteristics of effective goals.
d. Formulate a strategic plan:
Courses of action is designed to meet strategic goals, also specifies functional or departmental
goals are selected at this step.
II. Strategic Planning and Strategic Trends
a. The Basics of Strategic Planning – A strategy is the company’s plan for how it will balance its
internal strengths and weaknesses with its external opportunities and threats and maintain a
competitive advantage. Managers engage in three levels of strategic planning: corporate-level
strategy, business-level competitive strategy, and functional strategies.
b. The Strategic Planning Process entails conducting a SWOT analysis to identify its strengths,
weaknesses, opportunities, and threats.
Human Resource Management (MGT501) VU
Copyright © Virtual University of Pakistan 62
c. Basic Strategic Trends
Globalization refers to the tendency of firms to extend their sales,
ownership, and/or manufacturing to new markets abroad. For businesses
everywhere, the rate of globalization in the past decade has been
enormous, and has several strategic implications for firms.
Technological Advances have been forcing, and enabling, firms to become
The Nature of Work is changing due to new technological demands.
The Workforce demographics are changing as well. It’s becoming more
diverse as women, minority-group members, and older workers enter the
d. Managerial Consequences of the Basic Trends – Managers have to craft strategies that balance
opportunities and threats (like those previously discussed) with their firm’s strengths and
weaknesses, such as global expansion and improved competitiveness strategies. These types of
strategies are driving other organizational changes.
III. HR’s Strategic Role
a. HR’s Evolving Role – It’s the firm’s workforce that provides the
competitive advantage for the firm. HR’s role is shifting from protector
and screener to strategic partner and change agent.
b. Strategic Human Resource Management refers to improving business
performance and developing an organizational culture that fosters
innovation and flexibility by linking HRM with the strategic goals and
objectives of the firm.
c. HR’s Role As a Strategic Partner can be seen as either adapting individual
HR practices to fit specific corporate and competitive strategies or as an
equal partner in the strategic planning process.
1. HR’s Role in Executing Strategy – Execution has been HR’s traditional strategic
2. HR and Value Chain Analysis – Strategy execution usually involves identifying and
reducing costs, and therefore value chain analysis.
3. HR’s Role in Formulating Strategy – HR management can play a role in
environmental scanning by assisting in identifying and analyzing external
opportunities and threats that may be crucial to the company’s success.