What are the trending human resources philosophies values and policies

BSBHRM602

Manage human resources strategic planning

Learner Guide

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 1 of 91

BSBHRM602 Manage human resources strategic planning

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 2 of 91

Table of Contents

Table of Contents .............................................................................................................................. 2

Performance Criteria ............................................................................................................................ 5

Foundation Skills .................................................................................................................................. 6

This section describes language, literacy, numeracy and employment skills incorporated in the

performance criteria that are required for competent performance. ................................................ 6

Performance Evidence ...................................................................................................................... 8

Knowledge Evidence .......................................................................................................................... 8

Housekeeping Items............................................................................................................................. 9

Objectives .............................................................................................................................................. 10

1. Research planning requirements ................................................................................................. 11

1.1 – Analyse strategic plans to determine human resource strategic direction, objectives and targets

............................................................................................................................................................... 12

Human resources strategic planning ................................................................................................. 12

Learning Task One .............................................................................................................................. 14

Activity 1A .......................................................................................................................................... 15

1.2 – Undertake additional environmental analysis to identify emerging practices and trends that may

impact on human resources management in the organisation............................................................. 16

Environmental analysis ...................................................................................................................... 16

PESTLE ................................................................................................................................................ 16

Conducting a PESTLE analysis ............................................................................................................ 19

Emerging practices and trends .......................................................................................................... 20

Learning Task Two .............................................................................................................................. 21

Activity 1B .......................................................................................................................................... 22

1.3 – Identify future labour needs, skill requirements and options for sourcing labour supply ............ 23

Future labour needs and skill requirements ...................................................................................... 23

Employing a range of recruitment options ........................................................................................ 25

Learning Task Three ........................................................................................................................... 26

Activity 1C .......................................................................................................................................... 27

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 3 of 91

1.4 – Consider new technology and its impact on job roles and job design ......................................... 28

Technology ......................................................................................................................................... 28

Learning Task Four ............................................................................................................................. 29

Activity 1D .......................................................................................................................................... 30

1.5 – Review recent and potential changes to industrial and legal requirements ................................ 31

Industrial and legal requirements ...................................................................................................... 31

Learning Task Five .............................................................................................................................. 33

Activity 1E........................................................................................................................................... 34

2. Develop human resources strategic plan ...................................................................................... 35

2.1 – Consult relevant managers about their human resources preferences ....................................... 36

Consulting with managers ................................................................................................................. 36

Learning Task Six ................................................................................................................................ 38

Activity 2A .......................................................................................................................................... 39

2.2 – Agree on human resources philosophies, values and policies with relevant managers .............. 40

Agreeing HR philosophies, values and policies .................................................................................. 40

Learning Task Seven ........................................................................................................................... 41

Activity 2B .......................................................................................................................................... 42

2.3 – Develop strategic objectives and targets for human resources services ...................................... 43

Developing objective and targets ...................................................................................................... 43

Learning Task Eight ............................................................................................................................ 48

Activity 2C .......................................................................................................................................... 49

2.4 – Examine options for the provision of human resources services and analyse costs and benefits 50

Options for the provision of HR services ........................................................................................... 50

Cost/benefit analysis .......................................................................................................................... 53

Learning Task Nine ............................................................................................................................. 56

Activity 2D .......................................................................................................................................... 57

2.5 – Identify appropriate technology and systems to support agreed human resources programs and

practices ................................................................................................................................................. 58

Learning Task Ten .............................................................................................................................. 59

Activity 2E........................................................................................................................................... 60

2.6 – Write strategic human resources plan and obtain senior management support for the plan ..... 61

Human resource plan ......................................................................................................................... 61

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 4 of 91

Learning Task Eleven .......................................................................................................................... 64

Activity 2F ........................................................................................................................................... 65

2.7 – Develop risk management plans to support the strategic human resources plan ....................... 66

Risk management ............................................................................................................................... 66

Risk management plans ..................................................................................................................... 66

Learning Task Twelve ......................................................................................................................... 70

Activity 2G .......................................................................................................................................... 71

3. Implement human resources strategic plan .................................................................................. 72

3.1 – Work with others to see that the plan is implemented ................................................................ 73

Working with others .......................................................................................................................... 73

Learning Task Thirteen ....................................................................................................................... 75

Activity 3A .......................................................................................................................................... 76

3.2 – Monitor and review the plan ........................................................................................................ 77

Monitoring and reviewing .................................................................................................................. 77

Learning Task Fourteen ...................................................................................................................... 79

Activity 3B .......................................................................................................................................... 80

3.3 – Adapt plan should circumstances change ..................................................................................... 81

Adapting to change in circumstances ................................................................................................ 81

Learning Task Fifteen ......................................................................................................................... 82

Activity 3C .......................................................................................................................................... 83

3.4 – Evaluate and review performance against plan objectives .......................................................... 84

Evaluate and review performance ..................................................................................................... 84

Learning Task Sixteen ......................................................................................................................... 86

Activity 3D .......................................................................................................................................... 87

Skills and Knowledge Activity ............................................................................................................. 88

Major Activity – An opportunity to revise the unit ................................................................................ 89

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 5 of 91

Unit Description

This unit describes the skills and knowledge required to develop, implement and maintain a strategic approach to managing human resources in an organisation ensuring that the organisation has the structure and staff to meet current and foreseeable business and performance objectives

It applies to individuals employed as human resource managers after a firm grounding has been established in a range of human resource activities.

No licensing, legislative or certification requirements apply to this unit at the time of publication.Unit Sector

Performance Criteria

Element Performance Criteria

1. Research planning

requirements

1.1 Analyse strategic plans to determine human resource

strategic direction, objectives and targets

1.2 Undertake additional environmental analysis to

identify emerging practices and trends that may impact

on human resources management in the organisation

1.3 Identify future labour needs, skill requirements and

options for sourcing labour supply

1.4 Consider new technology and its impact on job roles

and job design

1.5 Review recent and potential changes to industrial and

legal requirements

2. Develop human

resources strategic

plan

2.1 Consult relevant managers about their human

resources preferences

2.2 Agree on human resources philosophies, values and

policies with relevant managers

2.3 Develop strategic objectives and targets for human

resources services

2.4 Examine options for the provision of human resources

services and analyse costs and benefits

2.5 Identify appropriate technology and systems to

support agreed human resources programs and

practices

2.6 Write strategic human resources plan and obtain senior

management support for the plan

2.7 Develop risk management plans to support the

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 6 of 91

Element Performance Criteria

strategic human resources plan

3. Implement human

resources strategic

plan

3.1 Work with others to see that the plan is implemented

3.2 Monitor and review the plan

3.3 Adapt plan should circumstances change

3.4 Evaluate and review performance against plan

objectives

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated

in the performance criteria that are required for competent performance.

skill Performance Criteria Description

Reading 1.1, 1.2, 1.3, 1.5,

2.1-2.7, 3.2, 3.3, 3.4

Organises, evaluates and applies content from a

range of structurally complex texts relating to

human resource strategic planning

Writing 1.1, 1.2, 1.3, 2.1 - 2.7, 3.3,

3.4

Communicates complex ideas relating to strategic

objectives, matching style of writing to purpose and

audience

Oral

Communication

2.1, 2.2, 2.6, 3.1 Establishes and maintains complex and effective

spoken communications in a broad range of

contexts with relevant managers to determine

resources preferences, philosophies and values.

Numeracy 1.1, 2.4, 2.6, 2.7 Selects and interprets mathematical information

that may be embedded in a range of tasks and texts

to analyse costs and benefits as well as dealing with

budgets and risk management plans

Navigate the world

of work

1.2, 1.5

 Ensures knowledge of legislative

requirements and products is kept up to

date in order to provide accurate

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 7 of 91

information

 Develops and implements strategies that

ensure organisational policies, procedures

and regulatory requirements are being met

Interact with

others

2.1, 2.2, 2.6, 3.1  Selects and uses appropriate conventions

and protocols when communicating with

managers at various levels

 Participates in conversations relevant to

role responding, explaining, negotiating and

persuading as required

Get the work done 1.1-1.4, 2.3-2.7, 3.2-3.4  Sequences and schedules complex

activities, monitors implementation and

manages relevant communication when

developing the strategic plan

 Makes a range of critical and non-critical

decisions in relatively complex situations,

analysing data and taking a range of factors

into account when researching planning

requirements and developing the plan

 Gathers and analyses data and seeks

feedback to improve plans and processes

 Uses digital technologies to manage

business operations and actively

investigates new technologies for strategic

and operational purposes

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 8 of 91

Performance Evidence

Evidence of the ability to:

 analyse information from a range of internal and external sources to determine:

 human resource strategic direction, objectives and targets

 trends and emerging practices that may have an impact on human resource management

 relevant technology

 recent and potential changes to industrial and legal requirements

 future labour needs and skills requirements

 options for sourcing labour

 organisation’s preferences regarding human resources

 consult and communicate effectively with relevant stakeholders to develop, implement, monitor and

review a strategic human resource plan including:

 budget

 priorities

 agreed objectives, targets, programs and practices based on cost-benefit analysis

 timeframes

 risk management

 evaluation against objectives.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

 describe human resource practices and functions

 explain the relevant legislative, regulatory and industrial requirements for the business

 outline common options for sourcing labour including:

 recruitment options

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 9 of 91

 casual labour

 new graduates or trainees

 off shore workers

 outsourcing

 contractors

 consultants

 explain the impact of technology on job roles

 outline labour market options for sourcing labour supply

 describe the requirements of a strategic plan

Housekeeping Items

Your trainer will inform you of the following:

 Where the toilets and fire exits are located, what the emergency procedures are and

where the breakout and refreshment areas are.

 Any rules, for example asking that all mobile phones are set to silent and of any

security issues they need to be aware of.

 What times the breaks will be held and what the smoking policy is.

 That this is an interactive course and you should ask questions.

 That to get the most out of this workshop, we must all work together, listen to each

other, explore new ideas, and make mistakes. After all, that’s how we learn.

 Ground rules for participation:

o Smile

o Support and encourage other participants

o When someone is contributing everyone else is quiet

o Be patient with others who may not be grasping the ideas

o Be on time

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 10 of 91

o Focus discussion on the topic

o Speak to the trainer if you have any concerns

Objectives

 Discover how to research planning requirements

 Know how to develop human resources strategic plan

 Learn how to implement human resources strategic plan

 Gain essential skills and knowledge required for this unit.

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 11 of 91

1. Research planning requirements

1.1. Analyse strategic plans to determine human resource strategic direction, objectives and targets

1.2. Undertake additional environmental analysis to identify emerging practices and trends that may impact on human resources management in the organisation

1.3. Identify future labour needs, skill requirements and options for sourcing labour supply

1.4. Consider new technology and its impact on job roles and job design

1.5. Review recent and potential changes to industrial and legal requirements

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 12 of 91

1.1 – Analyse strategic plans to determine human resource strategic direction, objectives and targets

Human resources strategic planning

Human resources (HR) strategic planning is an important business component. It links the ‘people’

aspect of the organisation directly to its overall strategic plan and vision. It enables the organisation’s

people to be ready to meet the demands of the future, ensuring that there is the right number of

people with the right skills, in the right place at the right time. Equipping the organisation with the right

workforce does not happen by accident. It takes planning and research to determine the organisation’s

‘people needs’.

A strategic HR plan enables good decision-making about the people aspect of the organisation. From a

budgetary point of view, it is essential to predict the costs of things like recruitment and training in the

organisation’s overall budget.

Finally, strategic HR planning is forward-looking and takes account of emerging trends and

developments in HR in general and also any changes in legislation affecting employment and training.

Strategic HR management can be defined as:

“Integrating human resources management strategies and systems to achieve the overall mission,

strategies and success of the firm while meeting the needs of employees and other stakeholders.”

Source: Human Resource Management: A Strategic Approach

The basic questions to be answered in strategic HR planning are:

 Where are we now in terms of our HR capacity?

 As an organisation, where are we going?

 What HR strategies do we need to get there?

The strategic HR planning process can be summarised as:

 Assessing current HR capacity

 Forecasting HR requirements aligned to the

organisation’s future direction

 Gap analysis

 Developing HR strategies to support overall organisational strategy.

The first step involving an assessment of current HR capacity will depend on current systems and

processes. If systems are in place for tracking things like people’s development, this is a relatively simple

step to take. However, if no systems exist, then it would be essential to conduct a thorough analysis of

the current employees in terms of their job roles, competence and development needs.

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 13 of 91

Assuming that the current HR capacity is known, the next step is to analyse the organisation’s strategic

plans. In some organisations, HR expertise is sought in the overall strategic planning process. However

in others, the overall strategy is determined without this input.

To analyse the organisation’s strategic plans, it may be useful to review written plans which detail the

organisation’s vision, mission, strategic and operational objectives for the next period. This will depend

on how far into the future the organisation plans. One year is typical, but increasingly organisations are

planning for the next five to ten years, or longer. It may also be beneficial to consult with senior leaders

in the organisation to ensure a full understanding of the strategic plans, priorities and context.

With a good understanding of what the organisation is aiming to achieve in the future, it is then possible

to determine the strategic direction in terms of the ‘people’ aspects of the business and to set

objectives and targets for the HR function.

These objectives and targets may relate to some or all of the following:

 Recruitment

 Retention

 Training

 Succession planning

 Career development

 Pay and reward

 Performance management

 Motivation and employee engagement.

Objectives should be SMART:

 Specific

 Measurable

 Achievable

 Realistic (or Relevant)

 Time-bound.

SMART objectives are important as they state exactly what the HR function is aiming to achieve so that

it makes a full contribution to achieving the overall organisation vision. They enable priorities to be

determined, realistic budgets to be set, and good decisions to be made.

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 14 of 91

Learning Task One

What information do you review when analysing your organisation’s strategic plans? How do you

ensure you have a thorough understanding of the organisation’s future direction?

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 15 of 91

Activity 1A

BSBHRM602 Manage human resources strategic planning – Learner Guide LASTUPDATED: May 2016, Version No. 1

Page 16 of 91

1.2 – Undertake additional environmental analysis to identify emerging practices and trends that may impact on human resources management in the organisation

Environmental analysis

Strategic HR planning should not take place in isolation from what’s happening outside the organisation.

To do so would be to miss opportunities and would fail to take account of and learn from a wide range

of external factors. An ‘environmental analysis’ may have taken place as part of the organisation’s

overall strategic planning. Indeed it would be very unwise for an organisation to plan for its future

whilst ignoring what’s going on around it. However, it is useful for the HR function to undertake its own