A.C. 1.1 – Assess the strategic importance of current, future and anticipated HR requirements


This report focuses on ABC company, which is an organisation involved in the provision of strategic accountancy services. In more than 25 years, the organisation has been offering a wide range of services to its customers, both small and larger ltd companies. ABC strategic plan is enabled by their staff in all areas of accountancy with experience and capacity of providing a personalised and friendly service meeting the needs of their clients. To identify these requirements, ABC sets a resource-based strategy Lin and Wu (2014), which identify the organisation capacity in performing at the required level, as evidenced using resources and competencies. Through this strategy, the organisation can have unique resources and achieve core competencies. In HR context, the ABC current, future, and anticipated requirements are based on the need to have dynamic capabilities. The accountancy business environment is always constantly changing, both technological and innovative hence the need to gain and sustain competitive advantage. From this, their HR requirements are anchored on Johnson et al. (2008) areas of developing people for enhancing organisational capability (see figure 1);

Figure 1: ABC Organisational Capability and HR requirements

To plan for these requirements, they are further classified into short-term and long-term. The strategies to assess include:

  • Scanning Current Capability– In ABC, this is done by evaluating the extent to which the employee’s individual goals are linked to the organisation strategy. Any potential change in the organisation strategy is approached through sourcing individuals with suitable competencies. For instance, the anticipated future full rollout of QuickBooks and sage in ABC will require the recruitment of tech-savvy employees.
  • Short-term business/people strategy– This includes identifying the aspects of performance metrics, available rewards, and short-term training. In ABC, this is implemented through conducting a Gap analysis CMI (2019), which involves an identification of the skills that employees have against the skills needed. This ensures that the organisation identifies the steps of their current positioning to where they want to be.
  • Scanning long-term people trends– In ABC, people are viewed as a resource for attaining strategic advantage and are performance managed. This is achieved through audits (assessing HR requirements for supporting strategies), goal setting and performance assessment, reward planning, and recruitment and retention.
  • Long-term people strategy– This is used to assess the future and anticipated HR requirements. This is in the areas of workforce and organisational development. In ABC, it is projected that in future, they will need to advance their scope of operations to modern demands in accounting. As such, they would have to leverage new skills development to their advantage.

A.C. 1.2 – Analyse how HR planning impacts on the strategic plan

According to CIPD (2019), HR planning is identified as a core business process for aligning changing organisation needs with people strategy. This is affirmed by Hoch and Dulebohn (2013),

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