{"id":488,"date":"2019-07-29T16:47:50","date_gmt":"2019-07-29T16:47:50","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=488"},"modified":"2024-04-24T23:19:32","modified_gmt":"2024-04-24T23:19:32","slug":"why-it-matters-human-resource-strategy-and-planning","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/why-it-matters-human-resource-strategy-and-planning\/","title":{"raw":"Why It Matters: Human Resource Strategy and Planning","rendered":"Why It Matters: Human Resource Strategy and Planning"},"content":{"raw":"<h2>Why learn about\u00a0strategy in human resources management?<\/h2>\r\nAlthough they may seem to be academic concepts, management theories and strategic planning practices have a significant impact on an organization\u2019s performance\u2014and, ultimately, its sustainability. What\u2019s bizarre is that we\u2019re still failing at the basics, despite extensive research and experimentation and the contributions of numerous thought leaders.\r\n\r\n<img class=\"alignright wp-image-656\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/05185014\/business-3421076_1920-1024x682.jpg\" alt=\"Photograph of four large puzzle pieces held by four different people.\" width=\"400\" height=\"266\" \/>\r\n\r\nHere are a few statistics that highlight critical competence\u2014and confidence\u2014gaps:[footnote]Jansen, Hasse. \"<a href=\"https:\/\/boardview.io\/blog\/strategy-execution-stats\/\" target=\"_blank\" rel=\"noopener\">94 Mind-Blowing Strategy Execution Stats<\/a>.\" Boardview. October 5, 2016. Accessed August 05, 2019.[\/footnote]\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Only 2% of leaders are confident that they will achieve 80% or more of their strategy\u2019s objectives<\/li>\r\n \t<li style=\"font-weight: 400;\">54% of organizations achieve less than 50% of their strategy objectives<\/li>\r\n \t<li style=\"font-weight: 400;\">61% of respondents acknowledge that their firms often struggle to bridge the gap between strategy formulation and its day-to-day implementation<\/li>\r\n \t<li style=\"font-weight: 400;\">33% of leaders rate their organization as poor or very poor at implementing strategy<\/li>\r\n<\/ul>\r\nKey alignment (and logic) disconnects: 45% of organizations say changing staff member actions or behaviors is the toughest implementation challenge, and yet 95% of employees don\u2019t understand their organization's strategy, and the majority of front-line employees (90%) and middle managers (70%) don\u2019t have compensation that\u2018s linked to the organization\u2019s strategy.\r\n\r\nWhy it matters?\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">63% of successful companies have their business units aligned to their overall corporate strategy<\/li>\r\n \t<li style=\"font-weight: 400;\">70% of organizations that used a formal process to manage strategy out-performed their peers<\/li>\r\n \t<li style=\"font-weight: 400;\">\u201cGetting it right\u201d has the potential to increase the value of an organization's current strategy by 60\u2013100%.<\/li>\r\n<\/ul>\r\nIn this module, we\u2019ll discuss the basics\u2014management theory, strategic analysis, competitive strategy and execution\u2014and how these decisions impact human resource management strategy and planning.","rendered":"<h2>Why learn about\u00a0strategy in human resources management?<\/h2>\n<p>Although they may seem to be academic concepts, management theories and strategic planning practices have a significant impact on an organization\u2019s performance\u2014and, ultimately, its sustainability. What\u2019s bizarre is that we\u2019re still failing at the basics, despite extensive research and experimentation and the contributions of numerous thought leaders.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-656\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/05185014\/business-3421076_1920-1024x682.jpg\" alt=\"Photograph of four large puzzle pieces held by four different people.\" width=\"400\" height=\"266\" \/><\/p>\n<p>Here are a few statistics that highlight critical competence\u2014and confidence\u2014gaps:<a class=\"footnote\" title=\"Jansen, Hasse. &quot;94 Mind-Blowing Strategy Execution Stats.&quot; Boardview. October 5, 2016. Accessed August 05, 2019.\" id=\"return-footnote-488-1\" href=\"#footnote-488-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400;\">Only 2% of leaders are confident that they will achieve 80% or more of their strategy\u2019s objectives<\/li>\n<li style=\"font-weight: 400;\">54% of organizations achieve less than 50% of their strategy objectives<\/li>\n<li style=\"font-weight: 400;\">61% of respondents acknowledge that their firms often struggle to bridge the gap between strategy formulation and its day-to-day implementation<\/li>\n<li style=\"font-weight: 400;\">33% of leaders rate their organization as poor or very poor at implementing strategy<\/li>\n<\/ul>\n<p>Key alignment (and logic) disconnects: 45% of organizations say changing staff member actions or behaviors is the toughest implementation challenge, and yet 95% of employees don\u2019t understand their organization&#8217;s strategy, and the majority of front-line employees (90%) and middle managers (70%) don\u2019t have compensation that\u2018s linked to the organization\u2019s strategy.<\/p>\n<p>Why it matters?<\/p>\n<ul>\n<li style=\"font-weight: 400;\">63% of successful companies have their business units aligned to their overall corporate strategy<\/li>\n<li style=\"font-weight: 400;\">70% of organizations that used a formal process to manage strategy out-performed their peers<\/li>\n<li style=\"font-weight: 400;\">\u201cGetting it right\u201d has the potential to increase the value of an organization&#8217;s current strategy by 60\u2013100%.<\/li>\n<\/ul>\n<p>In this module, we\u2019ll discuss the basics\u2014management theory, strategic analysis, competitive strategy and execution\u2014and how these decisions impact human resource management strategy and planning.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-488\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Why It Matters: Human Resource Strategy and Planning. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Specific attribution<\/div><ul class=\"citation-list\"><li>Untitled. <strong>Authored by<\/strong>: rawpixel. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/photos\/business-business-people-3421076\/\">https:\/\/pixabay.com\/photos\/business-business-people-3421076\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-488-1\">Jansen, Hasse. \"<a href=\"https:\/\/boardview.io\/blog\/strategy-execution-stats\/\" target=\"_blank\" rel=\"noopener\">94 Mind-Blowing Strategy Execution Stats<\/a>.\" Boardview. October 5, 2016. Accessed August 05, 2019. <a href=\"#return-footnote-488-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":1,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Why It Matters: Human Resource Strategy and Planning\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"Untitled\",\"author\":\"rawpixel\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/photos\/business-business-people-3421076\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"}]","CANDELA_OUTCOMES_GUID":"a186091c-e24b-4d30-a69f-951ae272e744","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-488","chapter","type-chapter","status-publish","hentry"],"part":482,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":10,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/488\/revisions"}],"predecessor-version":[{"id":2696,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/488\/revisions\/2696"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/482"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/488\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=488"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=488"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=488"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}