HR STRATEGY FORMULATION

PROCESSFacilitators:

Basanta Raj SigdelSantosh Koirala

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Environment Analysis

Analysis and diagnosis of an organization, often referred to as an Organization Audit or SWOT analysis

Undertaken to assess an organization’s ability to deal with its Internal and External Environment by identifying its Strengths, Weaknesses, Opportunities and Threats

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Internal EnvironmentOrganisation / Supply side analysis

An analysis of internal organizational factors which reviews and investigates the prevailing processes, resources and performance of organization. The analysis identifies major strengths and weaknesses - of all the key functional elements (Structure, Functions, HR, Finance, IT, Rules, Procedures, etc.).

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External EnvironmentDemand side analysis

Covers the various stakeholders outside the organization. The analysis indicates the opportunities and threats faced by the organisation from its relationship with external stakeholders. Major categories of external environment: 1. Forces and trends – PEST 2. Clients, customers, or payers 3. Actual or potential competitors or collaborators

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SWOT Profile

Internal Strengths Weaknesses

1. Mandate / Vision / Mission

2. Structure3. Systems / Processes4. Organizational

resources5. Performance /

outputs

Qualified and trained health professionals

Mobilization of health professionals to remote area

External Opportunities

Threats

1. Political2. Economic3. Social 4. Technological

Health sector as one of the priorities of government

Retaining competent health professionals in the country

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SWOT Profile- an example

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Considerations

SWOT as very meaningful tool rather than a causal ‘warm-up’ for strategy formulation

Use precise, verifiable statements ("Cost advantage of Rs……/unit in sourcing resources x", rather than "Good value for money")- be specific

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Considerations

Reduce long lists of factors, and prioritize them, so that you spend your time thinking about the most significant factors.

Make sure that options generated are carried through to later stages in the strategy formation process.

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Considerations

Apply it at the right level - for example, we might need to apply SWOT Analysis at service-line level, rather than at the much vaguer whole organization level.

Use it in conjunction with other strategy tools (e.g. Core Competence Analysis) so that you get a comprehensive picture of the situation you're dealing with.

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Strategic Issue Fundamental policy questions or

critical challenges that affecto An organization’s mandates, mission

and valueso Organization/managemento Costs, financingo Serviceso Consumers, users…. About which

something can be done.John M. Bryson, Strategic Planning for Public and Nonprofit Organizations:  A Guide to

Strengthening and Sustaining Organizational Achievement, rev. ed. (San Francisco:  Jossey-Bass, 1995), 30. 

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Strategic issue- example

1. How to provide basic health services to all Nepalese at their doorsteps?

2. How to improve sanitary condition of hospitals?

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Prioritization of Issues

Urgency Potential impact  Actionable/feasible Resources Stakeholder readiness Integration Importance

13Mission, Vision and Objectives

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Mission

Encapsulates the values and articulates the overall, long-term objective.

Brief statement that reflects the core values of an organization.

Communicates an organization’s long-term objectives – why the organization exists.

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Mission- an example

Providing basic health services to all citizens

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Vision A vision is a dream or picture of

future success. A Vision statement outlines what

the organization wants to be in certain future point of time. It is a source of inspiration, and gives shape and direction to the organization’s future.

“Vision binds people together around a common identity and sense of destiny”

- Peter Senge

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Vision- an example

All Nepali having basic health services at their doorsteps.

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Setting Objectives

To reach the envisioned state and accomplish mission, what we want to achieve (objectives/goals) in the following four dimensionso Service recipients/consumerso Financial (investments and return)o Internal processeso Learning and growth

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Setting Objectives

Set few objectives in each of the dimensions, for example:oEnhance research and development capacity of DoHS.

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Strategy Formulation

Strategic optionsStrategy evaluation and selection

Strategic plan preparation

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Strategy Choice

Feasibility Cost Quality Acceptability Reversibility, etc.

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Considerations

Organizational competence and resources to capture opportunities

Environmental threats to its long term well being

Personal values and aspirations of managers

Societal obligations and ethical considerations

Organizational culture

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Strategy- example

Fostering institutional networking and coordination

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Strategic PlanObjecti

veStrategy

Measures/

Indicators

Target

Initiatives Resources

Critical Succes

s Factors

What

Who

When

Improve health service

Increase number of health professionals

Decreased Doctor-Patient ratio

10 % by 2017

Increase the number of students / seats

MoHP, Pvt. Sector

2014

Budget,Infrastructure, RP

MoF, Availability of RP, Involvement of Pvt. Sector, Govt. policy

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Formulation of HR Strategy

HR strategy can influence as well as be influenced by organizational strategy

More likely to follow the organizational strategies- dominated by service/market and financial considerations

The process involves generating strategic HRM options and making appropriate choices

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HR Strategy formulation method

Assess feasibility Determine desirability Determine goals Decide means of achieving goals

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HR strategy formulation approach

Best practices of HRM (universal, and contingent)

Best fit: HR strategies appropriate to the circumstances of organization including culture, operational processes and external environment

Configurational (bundling): bundle of HR practices- horizontal integration- will lead to greater performance and strategic fit

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However beautiful the strategy, you should occasionally look at the results.

- Winston Churchill

Implementation

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Gap in implementation

Rhetoric and reality in the area of human resource management, between HRM theory and HRM practice, between what the HR function says it is doing and how that practice is perceived by employees, and between what senior management believes to be the role of the HR function, and the role it actually plays.

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Gap in implementation

the tendency of employees in diverse organizations only to accept initiatives they perceive to be relevant to their own areas;

the tendency of long-serving employees to cling to the status quo;

complex or ambiguous initiatives may not be understood by employees or will be perceived differently by them, especially in large, diverse organizations;

it is more difficult to gain acceptance of non-routine initiatives;

employees will be hostile to initiatives if they are believed to be in conflict with the organization’s identity, e.g. downsizing in a culture of ‘job-for-life’;

the initiative is seen as a threat;

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Gap in implementation

inconsistencies between corporate strategies and values;

the extent to which senior management is trusted;

the perceived fairness of the initiative; the extent to which existing processes

could help to embed the initiative; a bureaucratic culture that leads to

inertia

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The big question: WHY CHANGE INITIATIVES FAIL?

Change management will fail when one is

STUPID:

Sponsorship not forthcomingTeam member do not function as agents

of changeUnclear vision and commitmentPoorly planned change programmeInappropriate / insufficient communicationDon’t take account of culture

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The SUCCESS Principle

Shared visionUnderstand the organizationCultural alignmentCommunicationExperience help where necessary /

Executive supportStrong leadershipStakeholder buy-in / Systematic

planning / Short-term wins

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Reflection/feedback

Basanta Raj SigdelSantosh Koirala

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The story continues…