Importance of Strategic Planning for HR


Plan Ahead: It wasn’t raining when Noah built the ark. RICHARD CUSHING

Human Resource Department of the business needs to plan for the Human Resource it will need over the period of time. The topic at hand would discuss the importance of the strategic planning of Human Resources. Environmental changes and the competitive conditions are constantly monitored through the planning process, and help business to respond to the change in adequate time.

Strategic Planning

"The process of identifying organizational objectives and the actions needed to achieve those objectives."

A norm of the Successful business organizations is to be constantly engaged in this core business process and identify activities that would yield better result from the planning process. Objective of the planning process is to serve as a roadmap that provides direction and aids in aligning resources to the business activities, Planning involves sequence of steps that are based on the current and future state of the organization. Planning process involves analysis of business function such as finance, marketing, and human resources to determine the capacities of the organization to meet its objectives.

Organizational Mission

Strategic Planning process is driven by the Mission of the Organization, that is the core reason for which the business exists, it direction and what makes it unique. It provides answers to the following key questions.

Why does the organization exist?

What unique contribution does it make?

What are the underlying values and motivations of owners and key managers?

SWOT Analysis

After the mission has been laid down, the immediate next step is the scanning of the environment, the first step is to analyze the external environment for Opportunities and Threats, followed by the assessment of the external environment is the analysis of internal strengths and weaknesses, What are the advantages at hand for the business, what capabilities put them apart from their competitors, what areas of business needs to be looked at, this analysis will put the managers and executive in better position to deal with the situation at hand, better strike a mix between the internal Strengths and Weaknesses with the external opportunities and threats. Internal analysis should be stimulated by the philosophy and culture of the firm as that is the established direction for the organization. The Assessment of External and Internal environment is termed as SWOT Analysis.


Followed by the SWOT analysis, Organizational Capabilities and Opportunities in the external environment are assessed, it is important that business strikes a match between the two, matching Capabilities with the Opportunities will put business in best possible position to make best use of the market gaps and situation, not only the external standing of the business will develop but the internal strengths will increase whereas the weaknesses will start to die down.


Once the match is made, the next step on the ladder is to develop plans, develop strategies on how to make use of the external opportunities by using internal strengths and how to counter the threats that they shall not exploit the weaknesses of the business. It is important that Objective as clearly laid down as they would establish the direction and focus for the movement of the firm.

Monitoring the Planning Process

Finally as with any other cycle it is the implementation of the plans, but with constant monitoring of the plans, if they have been implemented properly, if the adequate resources have been provided, if the timing of the implementation is proper, if the plans are implemented as agreed, how to accommodate any changes, or how to counter the effect of external environment.


Source: Mathis, L, R., and Jackson, H, J., (2010). Human Resource Management. 13th Edition.