Strategic Human Resource Planning: Definition & Model Video

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  • 0:00 Strategic Human…
  • 1:16 Forecasting Labor Demand
  • 1:51 Analyzing the Present…
  • 2:25 Balancing Labor Demand…
  • 4:02 Lesson Summary
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Lesson Transcript
Instructor: Trunnis Goggins
In this lesson we'll explore the definition of strategic human resource planning. We'll also study the standard human resource planning model. Read on to learn more about these HR functions.

Strategic Human Resource Planning

A very common term in business is strategic planning. The strategic plan serves as a guide for businesses to achieve their mission. The standard strategic plan presents an organization's strengths and weaknesses, the environment in which the organization operates, and the goals the organization desires to achieve within a specific time frame. In order to achieve the desired goals that are presented in a strategic plan, it is important that the organization take a strategic approach to human resource management.

Human resource planning is the ongoing process of systematic planning to achieve optimum use of an organization's human resources. To develop a strategic HR plan, human resource professionals must forecast labor demand, analyze present labor supply, and balance projected labor demand and supply. This is the standard model of strategic human resource planning. Strategic human resource planning goes hand-in-hand with an organization's overall strategic plan. As a human resource director, it is imperative that you have the strategic vision, when it comes to human resource needs, necessary for your organization to achieve its goals that were set forth in its strategic plan.

Forecasting Labor Demand

Forecasting labor demand is a process of estimating the future human resource requirement of the right quality and the right number of employees. So, with that example, if you were the human resource director of an automobile company, and that company wanted to increase production of its top-selling hybrid car, it would be your department's job to ensure that you hired the right number of people in order to meet that production demand. In addition, due to the fact that the car is a hybrid and requires specialty engineers, it would be important that the individuals you hire to meet that production demand also meet the skill requirement to complete that task.

Analyzing the Present Labor Supply

Labor supply is the availability of suitable human resources in a particular labor market. Labor supplies are constantly changing. In the twenty-first century, it changes more so than ever due to the fact that people are now more mobile and will move from city to city. In addition, it is more likely in this current labor era to change careers multiple times in a professional lifetime. With that being said, human resource directors must constantly analyze the labor supply trends in their particular industry, location, and economic environment.

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