Creating an HR strategic plan

3 pages (750 words)

Strategic goals

Two goals of the organization derived from its strategic plan are mentioned below.
  1. To increase the sales of the software products of the company.
  2. To hire fifty more workers during the calendar year.

Increasing the sales of the software products is indirectly linked to the HR functions while hiring fifty workers is directly linked to the HR functions because the task of the human resource department in an organization is to do the hiring and the firing of the employees. Moreover, it is responsible for every aspect of an employee such as their benefits, training and legal compliance. Since the sales are dependent on the capabilities of the sales force hired by the organization, it is also linked with the HR department but in an indirect way because hiring is done by the HR department and they also provide training to the employees. If the employees are performing well and are able to increase the sales of the company, it is apparent that the human resource department has hired the correct individuals for the job they are assigned to. (Leat, 2001).

HR strategic plan

The steps of HR strategic plan are mentioned below.

  1. Firstly the organization needs to prepare itself since strategic planning requires a lot of time and energy. The top executive should be involved and costs need to be assessed.
  2. A vision and the mission statement need to be developed.
  3. The environmental scanning should be done by analyzing the strengths and the weaknesses of the internal organization as well as the opportunities and the threats of the external environment. Moreover, the other relevant economic information must be gathered and analyzed.
  4. A gap analysis has to be done by identifying the gaps between the vision and the mission statements as well as the environmental scan.
  5. Strategic planning is done by developing strategic in order to close the gaps that might occur. Measurement, timing, and budget strategies are developed to meet the goals of the organization.
  6. HR strategy involves arranging the HR goals to the organizational strategy mainly in terms of recruitment, retention and termination.
  7. After this step, implementation has to be done according to the plans an the various forms of measurements help in tracking the progress.
  8. A lot of effort is required to prepare a strategic plan and it takes around five years to prepare it so it must be reviewed and updated every year. (Lewis, 2003).

HR strategic plan and strategic goals

The HR strategic plan enables the organization to achieve its mission and strategic goals because the businesses that have a formal strategic plan are more successful than those who don’t. A roadmap of success is required by an organization to be successful and a strategic plan provides direction and a course of action that helps in achieving the organizational goals. Moreover, it also helps in aligning the goals of the work units with the organizational goals making the goals common. (Barker, 2008).

HR Scorecard

The effectiveness and efficiency of the HR functions in producing the behavior of the employees required to achieve the strategic goals of the company are measured by the HR scorecard. To achieve it, we need to know the strategy of the company and to understand the links between the HR activities, the behavior of the employees and organizational performance. The steps to develop an HR score cared are mentioned below.

  1. Defining the business strategy.
  2. Outline the value chain of the company.
  3. Identifying the organizational outcomes strategy required by the business.
  4. Identifying the workforce needed by the company.
  5. Identifying a relevant HR system.
  6. Design of HR score card for measurement purpose.
  7. A revaluation based on measurement system from score card should be done periodically.

The HR scorecard is used to measure the following.

Organizational outcomes

The HR scorecard helps in achieving the organizational outcomes since it measures the effectiveness and efficiency of the functions of the HR which results in positive outcomes.

Workforce competencies and behaviors

            The effectiveness and efficiency of the HR functions results in positive behaviors of the employees and positive behavior results in workforce competencies, which are beneficial for the organization.

HR system policies and activities

The policies are designed by the HR in a way that they suit the employees and the HR scorecard helps in analyzing the policies which tells whether these policies are right to they need to be rectified.


Barker,C. (2008). Cultural Studies: Theory and Practice. 3rd Edn. Sage Publications Ltd.

Leat, M. (2001). Exploring Employee Relations. Butterworth-Heinemann.

Lewis,P. (2003). Employee Relations: Cool Soundsderstanding The Employment Relationship.   Financial Times Management.