Strategic Human Resource Management

Section Three

dependent, for example, on its marketing

expertise, this may justify higher pay levels in

this function.^11

Thus, strategic salary planning, which is based on input
from human resource plans, provides another example of the
strategic role of human resource planning.

„ OVERVIEW OF HUMAN

RESOURCE PLANNING

Although a brief definition of human resource planning was
provided earlier, a more comprehensive definition is
appropriate for in-depth treatment of the process. Human
resource planning encompasses the following steps:

1. Interfacing with strategic planning and scanning the
   environment


2. Taking an inventory of the company’s current human
   resources


3. Forecasting the demand for human resources


4. Forecasting the supply of human resources both from
   within the organization and in the external labor market


5. Comparing forecasts of demand and supply


6. Planning the actions needed to deal with anticipated
   shortages or overages