The recession in 2008/09 illustrated for some companies the weakness in the marketplace that led to lower company valuations, increased business failures, outsourced businesses of companies, and sell offs of noncore business units. But if the organizations think forward they find opportunities that were not available when business was booming, such as expanding their company through acquisition. Eventually companies always need to look forward to stay competitive, capture market share, and be the first to innovate a new product or service (Mondy 2014, p.115).
Organizations use strategic planning as a constantly changing and ongoing process in order to find a competitive advantage. They see the need to diversify and increase variety of goods that are made or sold. At other times companies have the requirement to downsize in response of the external environment or the strategic plan sees integration as their driving force, what means the unified control of a number of successive or similar operations. Therefor strategic planning endeavours to position the organization regarding external environment. Thus strategic planning at all levels of organization is important (Mondy 2014, p.115). To anticipate future business and environmental demands on the company, strategic planning in human resource (HR) is necessary to meet the personnel requirements dictated by those conditions (Lengnick-Hall 1988, p. 457). Hereby the strategic management process is used to answer a central question in HR strategy planning: ‘How to develop a human resource strategic plan?
Table of Contents
1 Introduction
1.1 Problem and Objectives
1.2 Procedure of Seminar Paper
2 Defining the Terms
2.1 Human Resource Management (HRM)
2.2 Strategic Human Resource Management (SHRM)
2.3 Human Resource Strategic Planning
2.4 Strategic Management Process (SMP)
2.5 Hierarchy of Strategy
2.6 Short Introduction of Audi AG
3 How to develop a Human Resource Strategic Plan
3.1 Determination of the Organization’s Business Strategy
3.2 Assessment of the Organization and its Environment
3.3 Setting of specific Objectives and formulating the Strategy
3.4 Implementation of Strategies to accomplish the Objectives
3.5 Evaluation & Control of the Strategies
3.6 The human resource strategic plan (example of Audi)
4 Conclusion and Outlook
Objectives and Core Themes
This paper aims to provide a comprehensive framework for developing a Human Resource Strategic Plan (HRSP) by applying the strategic management process. It explores how organizations can align their HR functions with broader business objectives to maintain competitiveness in changing economic environments, using Audi AG as a practical case study.
- Strategic management process within HR
- Alignment of HR functions with corporate vision and mission
- SWOT analysis for organizational assessment
- SMART objective setting and strategy implementation
- Performance evaluation and control mechanisms
Excerpt from the Book
3.1 Determination of the Organization’s Business Strategy
At the beginning of the process ‘how to develop a human resource strategic plan’ the most important is to understand the corporate strategy of the organization. The strategy of the company gives an overall direction and consists of the 1. vision, 2. mission, and 3. the goals regarding to the executive management´s philosophy.
The vision sets up the course or direction of the future of the organization. It only gives a general course and does not attempt to delve into specifics (Kearns 2010, p. 24-25). The mission of the company can be determined as the most important aspect of the first step in the process of developing a human resource strategic plan, because the mission is a company´s continuing purpose or reason for being (Mondy 2014, p. 115.). Audi´s vision is defined as ‘Audi – the premium brand’ and is oriented to 2020, where the Audi Group sets itself the goal of being the leading brand worldwide. The following Figure 1 illustrates the brands strategy of Audi 2020 (Audi 2014e).
At the heart of the strategy 2020 (in the middle of Figure 1) the mission of Audi is declared as ‘We delight customers worldwide’. The contents of the mission are ‘We define innovation’, ‘We create experiences’, ‘We live responsibility’, and ‘We shape Audi’. With these statements Audi describes the management philosophy with its values and aspirations of the organization. In the static purpose ‘We live responsibility’ all activities concerned with sustainability are grouped together. The five core themes are ‘product’, ‘environment’, ‘employees’, ‘society’ and ‘operations’ (Audi 2014e).
Summary of Chapters
1 Introduction: This chapter introduces the context of strategic planning in HR and outlines the objectives and structure of the paper.
2 Defining the Terms: This section defines key concepts including HRM, SHRM, HR strategic planning, the strategic management process, hierarchy of strategy, and provides a brief introduction to Audi AG.
3 How to develop a Human Resource Strategic Plan: This chapter serves as the core guideline, detailing the five-step strategic management process and illustrating its application through the example of Audi AG.
4 Conclusion and Outlook: This final chapter synthesizes the findings, reinforcing that strategic HR planning requires the interaction of various hierarchy levels to achieve overall corporate goals.
Keywords
Human Resource Management, Strategic HRM, Human Resource Strategic Planning, Strategic Management Process, Audi AG, Corporate Strategy, SWOT Analysis, HR Objectives, SMART Goals, Strategy Implementation, Performance Evaluation, Competitive Advantage, Workforce Planning, Sustainability, Employee Development
Frequently Asked Questions
What is the fundamental purpose of this paper?
The paper serves as a guide for developing a human resource strategic plan by integrating the HR function into the broader strategic management process of an organization.
What are the central thematic fields covered in the work?
The central themes include strategic alignment, the strategic management process (mission, goals, environmental analysis, formulation, implementation, evaluation), and practical implementation at Audi AG.
What is the primary objective of the research?
The primary objective is to answer the question, "How to develop a human resource strategic plan?" by utilizing a structured, five-step strategic management approach.
Which scientific methodology is employed?
The paper utilizes a structured theoretical framework based on strategic management literature and a practical, case-based descriptive analysis of Audi AG's HR strategies.
What topics are discussed in the main part of the assignment?
The main part covers the determination of business strategy, organizational and environmental assessment (SWOT), the setting of SMART objectives, strategy implementation, and evaluation methods.
Which keywords best characterize this work?
The work is characterized by terms such as Strategic HRM, HR strategic planning, the strategic management process, organizational alignment, and corporate strategy.
How does the author define the relationship between the mission and HR strategy?
The mission serves as the fundamental framework; the HR strategy must support this mission by ensuring the workforce possesses the expertise and commitment required to fulfill the company's purpose.
Why is the implementation phase considered the most difficult part of the process?
According to the cited management literature, implementation is the most challenging phase because it demands significant changes in organizational behavior, leadership style, and culture, which can fail if not executed correctly.
- Quote paper
- Matthias Ackermann (Author), 2014, How to develop a Human Resource Strategic Plan, Munich, GRIN Verlag, https://www.grin.com/document/284172
