GGUIDELINEUIDELINE AAND ND TTOOLKITOOLKIT

INTRODUCTION2. INTRODUCTIONIn 2002 the Department of Public Service and Administration(dpsa) issued ‘Guidelines on Integrated Human Resource Planningin the Public Service’. This Strategic Human Resource PlanningGuideline and Toolkit replaces the previous guideline issued andprovides a framework for the entire HR planning process goingforward.This Guideline and Toolkit is meant to assist departments in thedevelopment of a human resource plan (HR plan) as contemplatedin Part III.D of Chapter 1 of the Public Service Regulations, 2001(as amended).See Appendix A for the full text of the specificregulationThe objective of developing the HR plan is to enable thedepartment to meet the human resource (HR) needs resultingfrom the strategic plan. The White Paper on Human ResourceManagement in the Public Service1 – December 1997 (section4.2) notes that “Human resource planning is essential in orderto ensure that an organisation’s human resources are capable ofmeeting its operational objectives.Human resource planning ensures that a department: Obtains the quality and quantity of staff it requires, Makes the optimum use of its human resources, Is able to anticipate and manage surpluses and shortagesof staff, and Develops a multi-skilled, representative and flexibleworkforce, which enables the organisation to adapt rapidlyto a changing operational environment.”In 2002, the report attached to the ‘Human ResourceDevelopment Strategy for the Public Service2’ concluded that“the current range, quality and distribution of skills in the SouthAfrican public sector does not sufficiently meet the currentdemands for service delivery and, furthermore, that there areserious doubts as to whether the future performance and skillsrequirements associated with the developmental state can beaddressed without concerted intervention in the field of skillsdevelopment for public servants”.3It is therefore imperative that the HR plan be seen as animplementation plan that will facilitate the achievement of thedepartmental strategic objectives by ensuring that suitablyqualified incumbents are available to meet these demands.Therefore, there must be monitoring, evaluation and reportingagainst both the HR Plan and the implementation plans developedat departmental level.On an annual basis, the dpsa will issue revisions to this guidelineand toolkit, including monitoring, evaluation and reportingrequirements, in line with the overall strategic planning andbudgeting guidelines issued by the Presidency and NationalTreasury. The intention of the annual revision is to streamlinethe format and content to ensure that such plans are indeedstrategic in nature. It will also provide additional informationand resources to enhance the development of the HR plans andfacilitate learning across the public service.The dpsa will be integrally involved in the monitoring andevaluation of the departmental HR plans. Through analysis ofparticular sector or departmental HR plans, the dpsa will be ableto identify critical HR issues that require attention.There is a further imperative for every head of departmentto ensure the effective and efficient management and optimalutilisation of its resources. The HRP Guideline should assistmanagers in identifying current and future HR issues and needsto address the improvement of service delivery. This would assistin the appropriate deployment of staff across the organisation tomeet the national or provincial goals and priorities. Moreover,the guideline should help in mitigating the risks facing thedepartments, including for example the impact of HIV andAIDS on the workplace and other risks that are likely to affectdepartments.The White Paper can be accessed at he report can be accessed at www.samdi.gov.za/documents/acts/HRDCurrent Skills Profile and Future Skills Needs of the Public Sector Version 1 December 2004. pp4123.07Strategic Human Resource Planning - Guideline and Toolkit

HR PLANNING INCONTEXT3. HR PLANNING IN CONTEXTThe South African Government has adopted the Medium-TermStrategic Framework (MTSF) and Medium-Term ExpenditureFramework (MTEF) as an opportunity to act in unison with allspheres of government, and to ensure alignment and a coherentapproach to integrated governance.In order to contextualise HR planning it is important to understandthe National Planning Framework (NPF) adopted by the NationalCabinet in the approved multi-year cycle, as shown in the figurebelow.The NPF defines the cycles of policy strategising, programmedevelopment, budgeting, monitoring and evaluation, and publiccommunication of these issues. The Planning Cycle representsa continuous process of planning, implementation and review.This relates to medium-term priorities as well as immediateprogrammes, one flowing sequentially into the other. At thesame time, immediate detailed plans and some of the futuremedium-term priorities are processed. Planning and review bylocal government are meant to feed into those of provinces;while those of provinces are meant to feed into planning andreview at national level.Strategic planning determines where an organisation is going overthe next few years (MTSF), how it is going to get there and howit will know if it got there or not.The focus of a strategic plan is usually on the entire organisation,while the focus of a business plan is usually on a particularproduct, service or programme. In addition, National Treasuryrequires that the Five-year Strategic and Performance Plan must bedeveloped within the overall resource envelope specified by thecurrent Medium-Term Expenditure Framework.Based on the strategic plan, a department is required to engage inHR planning with a view to meeting the resulting human resourceneeds to meet the department’s strategic objectives. StrategicHR and business planning is the foundation for assessing andFigure 1: Framework of national planning cycleFramework: National Planning CycleYearly reports toPresidency 05 and 06Preparationof PoA 06PoA 05 and broadMTSF 06/09 ideasSoNA/Provaddress 2005Local govtplanning 06/09BudgetSpeech 05/06Medium-termBPS 06/09Local govt finalisesbudget 05/06MTEC hearingsfor 06/09Local govt commenceswith DP 06/09MTSF06/09 adoptedLocalProvDraft MTSF 06/09Local govt PoA &budget 05/06National05/0806/09Strategic Human Resource Planning - Guideline and Toolkit.08

HR PLANNING INCONTEXTunderstanding the current and future needs of departments andthe public service as a whole. Integrated planning is central tothe promotion of healthy organisations that recruit and retaincompetent, committed and engaged employees across the publicservice.Strategic HR planning is a key activity for the entire department.Strategic HR planning should be used to identify optimalstrategies and activities for important HR management functions,such as recruitment, retention, learning, development, employeeengagement, succession planning and employment equity, trainingand development, amongst others. Effective HR planning formsthe basis upon which all other key HR decisions are made,for example, specific recruitment and selection strategies forcompetency gaps identified during the workforce analysis phase,as well as intensive development programmes to meet projectedneeds based on the 5-year strategy for the department.3.1 Defining human resource planningPreviously, HR planning was defined in the July 2002 HRPGuideline as a “system of systematically reviewing human resourcerequirements to ensure that the required number of employees,with the required skills, are available when they are needed”.Based on recent research and analysis, this definition can berevised to include a broader view4: Departmental strategic planning with the objective ofidentifying key priorities; Cluster-level objectives; Programme planning; and Monitoring, evaluation and reporting.Overall, HR planning should be utilised to align a department’sworkforce with the government’s priorities, and the department’smission, strategic plan and budgetary resources. Possible reasonsfor allocating financial and human resources to HR planning are,amongst others, to:5 ensure that the departmental strategic plan is achieved, ensure an adequate supply of correctly qualified staff, provide HR information to other functions in thedepartment, develop recruitment strategies that support theattraction of highly skilled talent to the department, develop retention strategies that are true to therelevant policies and actually deliver retained talent to thedepartment, ensure equal opportunities for all employees within thedepartment,6 ensure that capacity issues are adequately addressedacross all levels of the organisation, and address changing service delivery demands.HR planning should be central to and in support of all the strategicplanning in the departments. In particular, it should focus on thefollowing steps:HR planning is an inclusive and dynamic process thatinvolves the identification of both current and futurehuman resource needs, as well as potential challengesin order for the department to consistently achieveits organisational objectives. HR planning is the twoway operational link between high-level strategy andaction-orientated implementation that can be regularlymonitored and evaluated. Therefore HR planning aimsto ensure that a department has the right people at theright place at the right time, all the time.Reference can also be made to the definition of HR Planning by The Public Service Human Resources Management Agency of Canada. HRplanning is defined as a “process that identifies current and future human resources needs for an organisation to achieve its goals. Human resourcesplanning should serve as a link between human resources management and the overall strategic plan of an organisation.” – www.hrma-agrh.ca.The Canadian definition sets the basis for the revised definition in this guideline.Muchinsky, P.M. et al (1998). Personnel Psychology. pp 213Employment Equity Act 55 0f 1998 – Employees cannot be discriminated against based on race, gender, sex, pregnancy, marital status,family responsibility, ethnic or social origin, colour, sexual orientation, age, disability, religion, HIV status, conscience, belief, politicalopinion, culture, language and birth.456.09Strategic Human Resource Planning - Guideline and Toolkit

LEGISLATIVE SUMMARY4. LEGISLATIVE SUMMARYSee Appendix B for a selected list ofappropriate legislation and regulationsThe Public Service Regulations, 2001 (PSR) and the TreasuryRegulations, 2002 emphasise the importance of integrated strategicplanning in the effective delivery of public services. Strategicplanning is indeed one of the key responsibilities of accountingofficers. It is central to the effective, efficient, economical andtransparent use of resources of the department in terms of bothsection 38 of the Public Finance Management Act, 1999 andsection 7(3)(b) of the Public Service Act, 1994.To enable a head of department to manage her or his departmenteffectively and efficiently, the executing authority shall provide the headof department with appropriate powers and authority.In terms of Chapter 1, Part III of the PSR, Part B focuses onstrategic planning, while Part D focuses on HR planning. Theaccountability for the preparation of the Strategic and HR Plansvests with the Executing Authority.It is recommended that the Executing Authority and Head ofDepartment7 sign the approved HR plans.The Public Service Act (Act 103 of 1994, as amended) defines,amongst others, the Executing Authority and the Head ofDepartment, as well as their respective roles. HR planning is notdefined in the Act, but is covered extensively in the PSR.The spirit of the PSR is captured in Chapter 1, Part II, which dealswith the delegation of authority and states:7The Research Report on the Development of Interventions to Improve the Quality of Human Resource Planning at departmental level inthe public service recommended that the accountability for HR planning vest with the HOD. This guideline has been prepared on theassumption that the recommendations contained therein are supported.Strategic Human Resource Planning - Guideline and Toolkit.10

THE SEVENGUIDING PRINCIPLES5. THE SEVEN GUIDING PRINCIPLESUNDERPINNING STRATEGIC HUMANRESOURCE PLANNINGA department that has an effectively planned workforce is betterequipped through having the right mix of people and skills toachieve the aims and objectives of the department and meet itsfuture challenges.Such an approach addresses two critical needs:1. The alignment of an organisation’s human resourceplanning programme with its current and emerging missionand strategic/programmatic goals, and2. The development of long-term sustainable strategies foracquiring, deploying, developing and retaining employeesto achieve strategic/programmatic goals.Approaches to strategic human resource planning can vary witheach department’s particular needs and mission. The success ofthe human resource planning process that a department uses canbe judged by its results – how well it helps the department attainits mission and strategic goals – not by the type of process orprocesses used. Existing strategic human resource planning toolsand models suggest that there are certain principles that sucha process should address, irrespective of the context in whichplanning is done. These principles are central to a cohesive andintegrated model for strategic human resource planning(see fig. 2).MOIDENTIFICATION& ANALYSIS OFSKILLS & COMPETENCYNMAAHUGED NNINNISAOG E PL HCREC URCOAORES APPRNITOREVA AND RVENTIONSDEVELOP AND MAINTAIN CAPABILITY TOSUPPORT STRATEGIESCOMMUNICATION AND PARTICIPATIONFigure 2: Principles of HRP.11Strategic Human Resource Planning - Guideline and Toolkit

THE SEVENGUIDING PRINCIPLESSome of these ideas have been integrated in the process approachsuggested as the sequence of activities in the guide. Each of theseven guiding principles is addressed below. The seven principlesare:human resources needed for the future and to develop strategiesfor shaping this workforce. In ensuring that departments donot limit their planning to meet the needs of a single view ofthe future, scenario planning that integrates human resourcestrategies with mission-oriented efforts can describe differentfuture environments that could potentially be encountered.Table 1: Seven principles of HRPPRINCIPLEFOCUSDESCRIPTIONPrinciple 1Principle 2Strategic approachRecognised human resourceplanning approachCommunication andparticipationIdentification and analysis ofskills and competency gapsA strategic approach to human resource planning is adopted.A recognised human resource planning approach is used.Principle 3Principle 4Principle 5Principle 6Customised strategicinterventionDevelop and maintain capabilityPrinciple 7Monitor and evaluateManagement, employees and identified stakeholders participate in developing,communicating and implementing the Strategic Human Resource Plan.Human resource gaps in terms of supply and demand issues includingthe critical skills and competencies that are needed to achieve strategic/programmatic results are identified and analysed.Customised strategies to address workforce gaps and critical skills andcompetencies are developed and implemented.Institutional and individual capabilities to address administrative, educationaland other requirements necessary to support human resource planningstrategies are developed and maintained.Regular monitoring and evaluation of human resource plans, progress madetowards human resource goals and the contribution of human resourceresults in achieving programmatic goals.The principles presented below can enhance the effectivenessof a department’s strategic human resource planning by helpingthe department focus on the issues it needs to address, theinformation it needs to consider and the lessons that it can learnfrom other organisations’ experiences. By doing so, departmentscan better ensure that their strategic human resource planningprocesses appropriately address the human resource challengesof the future and better contribute to the departments’ majorefforts to meet their missions and goals.Principle 1: A strategic approach to humanresource planning is adoptedThe challenge faced by departments is that there is not always aclear link between specific human resource planning strategiesand strategic programmatic outcomes. If a department identifiesstaff needs without linking the needs to strategic goals, or if thedepartment has not obtained agreement from key stakeholderson the goals, the needs assessment may be incomplete andpremature. To ensure that their workforce is able to contributeoptimally to the achievement of current and future goals, eachdepartment should identify and plan for the desirable skills andcharacteristics of its workforce. This should be an integral part ofthe department’s strategic planning process – incorporating all ofgovernment’s objectives.Departments are increasingly realising that they must transformthemselves to meet the long-term fiscal, domestic, continentaland global challenges of the 21st century. Human resourceplanning that is linked to a department’s strategic goals is one ofthe processes departments can use to systematically identify theStrategic Human Resource Planning - Guideline and Toolkit.12

THE SEVENGUIDING PRINCIPLESPrinciple 2: A recognised human resourceplanning approach is usedThe use of a recognised human resource planning approach, basedon existing state and sectoral best practices, will enable a soundand consistent basis for ongoing evaluation of the adequacy ofthe workforce to meet business goals, and for planning within thedepartment and across government.Principle 3: Management, employees andidentified stakeholders participatein developing, communicatingand implementing the StrategicHuman Resource PlanEfforts that address key organisational issues, like strategic humanresource planning, are most likely to succeed if, at their outset,departments’ senior management and human resource leadersset the overall direction, pace, tone, and goals of the effort,and involve employees and other stakeholders in establishing acommunication strategy that creates shared expectations for theoutcome of the process.Planning, developing and implementing human resource planningstrategies can cause significant changes in how a departmentimplements its policies and programmes. To ensure thatdepartments successfully implement strategic human resourceplanning strategies, the following should be considered: Ensure that management sets the overalldirection and goals of human resource planningExecutive and senior management should be clearly and personallyinvolved in strategic human resource planning, thereby providingthe organisational vision that is important in times of change.Their leadership can help provide direction and stability during thedevelopment and implementation of the human resource plan. Inaddition it provides a cadre of champions, including both politicaland administrative executives within the department, whichensures that planning strategies are thoroughly implemented andsustained over time. It can also help integrate human resourceplanning efforts with other key management planning efforts,such as succession planning and in

Strategic Human Resource Planning - Guideline and Toolkit .04 LIST OF TABLES Table 1 Seven principles of HRP Table 2 The HR planning team Table 3 Development of gender-responsive human resource planning capacity Table 4 Example of environmental factors Table 5 PESTEL Table 6 Internal scan assessment Table 7 Envisag