Strategic planning is a step-by-step process of determining how to pursue the organization's long-term goals with the resources expected to be available. It is a systematic approach of analyzing the opportunities and threats in the environment to enhance the efficiency and organizational productivity. It is the name given to the sense making activity which includes the function of goal setting and strategy formulation.
On the other hand, Human resource planning is the estimation of future demand for and supply of human resources for the accomplishment of stated organizational goals. HR planning consists all the activities of human resource management such as forecasting of HR, collecting information, policy making, recruitment, training and development, motivation and development of human resource in the organization. These activities help prepare and HR plan where by right number and kind of people are being forecasted.
These terms establish a close relationship as one cannot be separated from another. They are correlated with each other because HR planning is an integral part of the overall corporate plan. Hence, the relationship between HR planning and strategic planning can be depicted under the following aspects:
1. Follower relationship of HR plan
This relationship depicts that an HR plan is an integral part of the overall corporate plan of the organization. HR plan is based upon the overall objectives and strategies of the company. It is prepared by following the guidelines by the overall corporate plan of the organization. Hence, it is tailored to meet the needs of the overall mission, vision and objective of the company. Moreover, this relationship explains that HR plan is derived from the overall corporate plan of the organization.
2. Partner relationship of HR plan
When the HR plan and strategic plan are formulated simultaneously, it is supposed that they have partner relationship. Under it, it is assumed that HR and HR manager are considered as a valuable resource in the organization. And it ensures that the employees are fully participated in strategy implementation. Moreover, implications of HR are considered in the formulation stage of strategic plan. The primary purpose of this relationship is to link HR activities with strategic plan in order to achieve organizational goals. It also ensures that HRM activities are considered before formulating the corporate plan.