PAS 700 UNIT 2: Strategic planning for public sector human resources

Strategic public human capital administration and management

The strategic process of managing an institution's employees to help achieve long-term institutional and public objectives through the integration of HR practices with institutional and corporate strategies.

Six-step process leading to strategic public human capital administration and management

1. Considering the corporate plan

2. Scanning environmental conditions

3. Establishing specific objectives

4. Deciding on an integrated human resource strategy

5. Drafting and implementing PSHRM business plans

6. Monitoring, evaluating and reporting

Six-step process leading to strategic public human capital administration and management: 1. Considering the corporate plan

• A public sector institution's corporate plan presents the scope of its operations in service delivery terms.

• It should spell out the 'who, why, what and where to' of the institution.

• Determining the corporate plan includes formulating a vision, mission, objectives, strategies, and plans, consulting different stakeholders, and considering the relevant values at stake.

• Key focus: Define direction, purpose and priorities

Six-step process leading to strategic public human capital administration and management: 2. Scanning environmental conditions

• PSHRM takes place in a political environment.

• Relevant factors in the political, economic, social and technological (PEST) environments are scanned.

• Scanning is necessary to establish human resource- related implications stemming from the formulation of the business strategies.

• The environment can be scanned in terms of four major dimensions: uncertainty, volatility, magnitude of change and complexity.

• KEY FOCUS: Understand the external context and its impact on people.

Six-step process leading to strategic public human capital administration and management: 3. Establishing specific objectives

• Strategic PSHRM must be based on the corporate plan of the institution.

• After the corporate plan has been consulted and the environment scanned, specific objectives can be established that will support the corporate plan.

• Long-term objectives are usually formulated through a 'top-down' approach.

• The 'bottom-up' approach is usually associated with short-term related objectives.

• KEY FOCUS: Translate strategy into clear, measurable people objectives.

Six-step process leading to strategic public human capital administration and management: 4. Deciding on an integrated human resource strategy

• Deciding on the integrated human resource strategy involves looking at corporate strategy and business strategy.

• Corporate strategy has two major types namely, stability strategy and evolutionary strategy.

• The business strategy consists of two options namely, prospector and defender options.

• KEY FOCUS: Choose the right people strategy to support the business strategy.

Six-step process leading to strategic public human capital administration and management: 5. Drafting and implementing PSHRM business plans

• . Business plans detail the medium-term plans and objectives of the organisation.

• Typically cover five-year periods and are redrafted annually within the context of corporate planning.

• Environmental scanning information, the SWOT analysis and the strategy decided upon must be taken into account.

• Focus in more detail on what needs to be done, by whom, how and with what resources.

• Resources should be allocated to carry out action plans, enabling strategy implementation and the achievement of vision and mission.

• KEY FOCUS: Plan, allocate resources and execute the strategy.

Six-step process leading to strategic public human capital administration and management: 6. Monitoring, evaluating and reporting

• Monitoring and evaluating require standards against which results can be measured to determine success or failure.

• Normally, monitoring and evaluating begins by comparing the vision, mission and objectives with the final accomplishments.

• Monitoring and evaluating should not merely end with matching objectives and accomplishments.

• A human resource report must be compiled for submission to Parliament.

• It is important that monitoring and evaluating be incorporated with reporting.

• KEY FOCUS: Measure performance, learn and report for accountability.

Emergence of strategic public human capital administration and management

Driven by the post-1994 transition and the need for a professional, ethical, and developmental state that moves away from rigid rule-bound administration toward transformational service delivery.

Environmental scanning in public human capital management

A systematic study of internal variables and external PEST factors (political, economic, social, and technological) to align institutional HR strategies with changing environments.

Factors that immediately affect public human capital administration and management matters

A changing corps of workers, restructuring and rationalisation programmes, technological developments, economic conditions, political influences, legal measures, and resource providers.

Significance of planning in public human capital administration

Anticipates future workforce needs, controls labour costs, optimizes employee aptitude, supports transformation and affirmative action, and enhances institutional efficiency

Most critical role players in the planning process

• Human resource management units,

• line managers and supervisors,

• senior management and executives,

• the Department of Public Service and Administration (DPSA),

• the National Treasury.

Conceptualising Strategic Public Human Capital Administration and Management (PSHRM)

• Definition: The strategic process of managing an institution's employees to help achieve long-term institutional and public objectives by integrating HR practices with corporate and business strategies.

• Core Focus: Moving from transactional (routine paperwork and compliance) to transformational (strategic alignment) management.

• Purpose: Securing and maintaining an optimal match or "fit" between required public tasks, employee capabilities/motivation, and the political, social, and institutional environment

The Six-Step Process Leading to Strategic Public Human Capital Administration and Management

1. Step 1: Consulting the corporate plan to understand institutional vision, mission, values, and long-term service delivery objectives.

2. Step 2: Gathering, analysing, and forecasting workforce supply and demand data.

3. Step 3: Reconciling demand and supply to identify competency gaps, surpluses, and representativity shortfalls.

4. Step 4: Drawing up and implementing an actionable HR plan detailing timelines, targets, and strategies.

5. Step 5: Monitoring, evaluating, and reporting on workforce performance, labour costs, turnover, and program outcomes.

6. Step 6: Continuous feedback and adjustment, recognizing that HR steps are often iterative and dynamic rather than purely linear

Environmental Scanning in Public Human Capital Management

• Definition: A thorough systematic study of internal institutional variables and external PEST factors (political, economic, social, and technological).

• Objective: To create the necessary match or "fit" between internal strengths/weaknesses and external opportunities/threats.

• Four Major Dimensions: Degree of uncertainty (available information), volatility (frequency of change), magnitude of change (drastic nature), and complexity (number of affecting factors).

FROM HRM TO STRATEGIC PSHRM: HUMAN RESOURCE MANAGEMENT

• FOCUS Managing people effectively to support institutional objectives

• Human resources are an important factor for the success of public sector institutions

• Public sector employees must perform at an optimal level so that the overall strategy, purpose and objectives of government can be achieved.

• Efforts to formulate, Integrate and implement HRM strategies are designed to achieve efficient delivery of public services and/ or goods

• One of the challenges of public sector managers is that of formulating, integrating, and Implementing strategies in public sector institutionalism

FROM HRM TO STRATEGIC PSHRM: 2.STRATEGIC MANAGEMENT

• Strategic management is the process of examining both present and future environments, formulating the institution's objectives, and making, implementing and controlling decisions focused on achieving these objectives in the present and future environments.

• It involves finding (formulating) and using (implementing) the strategy put in place to achieve an organisation's objectives.

• KEY PURPOSE : Align organisational resources with strategy to achieve institutional objectives.

FROM HRM TO STRATEGIC PSHRM: EMERGENCE OF STRATEGIC PSHRM

• Prior to the new political dispensation, HRM was managed in a rigid manner.

• The scope for individual public managers to make decisions or make plans for their own was limited.

• To address these challenges new programmes and policy initiatives have been adopted.

• The primary role of HRM has evolved from performing routine personnel work to managing human resources in ways that are strategically linked to government objectives.

• KEY SHIFT: From administrative and rule-driven HRM to strategic, value-adding people management aligned to government priorities.

Public Strategic HRM

• PSHRM entails synchronising and integrating the organisation’s strategic needs and plans with all those aspects relating to the management of employees.

• All public sector managers are part of the management cadre and are all responsible for achieving the objectives of government in the most efficient and effective way.

• As a result, every one of them has a role to play in strategy making in the face of opportunities and threats arising from the environment.

The nature of HR planning

• HR planning is a management process involving the following elements: Forecasting workforce requirements for a public sector institution to execute its business plan

• Forecasting human resources available for meeting these needs and doing a scan of the internal and external environments of the institution

• Identifying the gaps between what will be needed and what will be available, and developing the necessary action plans.

• Implementing and monitoring these action plans

The purpose of HR planning

• To reduce labour costs by helping public sector management to anticipate shortages or surpluses of human resources, and to correct the imbalances

• To provide the basis for employee development that makes optimum use of workers’ aptitude

• To provide more opportunities for minority groups in future and to identify the specific skills available (affirmative action).

• To promote greater awareness of the importance of sound human resource management at all levels of the institution.

• To provide an instrument for evaluating the effect of alternative human resource planning actions and policies

The importance of HR planning

HR planning is important for public sector institutions for the following reasons:

• Labour is a significant cost to an institution and planning allows greater control

• Corporate planning is a key ingredient of institutional success hence it must augmented by HR planning

• Environmental changes mean that HRM is becoming more complex and challenging, which makes planning essential

• Changing service delivery demands have social implications for labour (e.g. redundancy and retraining), and planning can accommodate these demands

Role Players in Human Resource Planning

• Human Resource Management (HRM) Units: They draft HR plans, conduct workforce analyses, and ensure compliance with DPSA guidelines.

• Line Managers and Supervisors: Line managers play a critical role because they understand the day-to-day operational needs of their departments.

• Senior Management and Executives: They provide strategic direction and approve HR plans as part of the broader organisational planning process

• Department of Public Service and Administration (DPSA): The DPSA provides the national framework, policies, and monitoring systems for HR planning across government

The Human Resource Planning Process

The HR planning process follows a logical sequence of five key steps, ensuring that staffing decisions are evidence-based, strategic, and adaptable to changing needs.

1. Step 1: Consult the Strategic Plan

2. Step 2: Gather, Analyse, and Forecast Workforce Supply and Demand Data

3. Step 3: Reconcile Demand and Supply

4. Step 4: Draw Up and Implement the HR Plan

5. Step 5: Monitor, Evaluate, and Report

The Human Resource Planning Process: Step 1: Consult the Strategic Plan

HR planning begins with an in-depth understanding of the department’s Strategic Plan and Annual Performance Plan (APP). These documents outline service delivery objectives, priorities, and future initiatives that determine HR requirements

The Human Resource Planning Process: Step 2: Gather, Analyse, and Forecast Workforce Supply and Demand Data

This phase involves collecting both quantitative and qualitative data on the current workforce and future needs.

• Phase 1: Forecasting – Estimate the number and types of employees required in the future

• Phase 2: Analyse the Existing Workforce – Assess the current workforce profile: age, qualifications, experience, diversity, and performance. •

• Phase 3: Workforce Demand Forecast – Conduct job analyses to define roles, job descriptions, and competencies.

• Phase 4: Budget Considerations – Align workforce needs with available financial resources.

• Phase 5: Forecasting Workforce Supply – Identify internal and external sources of talent, including succession planning and graduate recruitment.

• The Department of Health’s HR Forecasting Unit uses data analytics to project future staffing needs across provinces, ensuring balanced distribution of healthcare professionals, even in the face of crises.

The Human Resource Planning Process: Step 3: Reconcile Demand and Supply

At this stage, departments compare projected needs (demand) with available workforce (supply) to identify:

• Competency gaps

• Areas of overstaffing or understaffing

• Underrepresentation of designated group

• Once gaps are identified, corrective measures such as training, redeployment, or recruitment are developed.

• The DPSA’s 2023 HR Gap Analysis Report revealed a shortage of ICT professionals in local government. In response, HR planners introduced ICT internships and digital literacy programmes to close the gap.

The Human Resource Planning Process: Step 4: Draw Up and Implement the HR Plan

After reconciling supply and demand, HR planners develop an actionable HR Plan that includes measurable targets and timelines. The plan may address:

• Skills deficits through targeted training and development • Employment equity goals

• Recruitment for scarce skills

• Succession planning for critical roles

• Implementation involves coordination across all levels of management and continuous communication to ensure buy-in.

• The Department of Public Enterprises implemented a 5-year HR Plan focusing on leadership development and digital transformation training to support its restructuring initiatives.

The Human Resource Planning Process: Step 5: Monitor, Evaluate, and Report

The final step ensures accountability and continuous improvement. HR planners evaluate:

• Staffing levels versus planned requirements

• Productivity against performance targets

• Employee turnover rates

• Programme outcomes versus expected goals

• Labour costs versus budgets

• Regular monitoring helps identify what works, what doesn’t, and where adjustments are needed.

• PSC’s 2024 evaluation of HR planning in provincial departments found that ongoing monitoring helped reduce staC turnover and improved succession readiness in the Department of Social Development.

Integrated strategic planning

• Integrated strategic HR planning implies that HR planning must be dealt with as an integral part of the institution’s corporate strategic planning process.

• Employees involved in HR planning must have a proper understanding of the overall corporate plan and HR strategic plan, vision, mission, objectives and values.

• They must have an appreciation of how the different environmental factors influence the process

• In short, there must be a link between corporate and business planning and HR planning.