When talking about one of important components of strategic HR management, we should not put strategic HR planning out of conversation. There is a link built between the strategic plan and HR management, so that both of them is truly inseparable. Most organizations, from mid to large size, should have a strategic plan which in essence function as a map that will guide them in making their mission successful. So basically an organization has to complete financial plans, from which it can measure whether or not organizational goals have been successfully reached. Within such understanding, workforce plans also considered important although is not too important.
A company or organization that has only 10 staffs need to develop a strategic plan, which in essence will guide it to reach any purpose in the future. Development of strategic HR plan roots from the strategic plan. It allows an organization’s HR to make management decision, which later will support the future direction of the company. From a point of budgetary, strategic HR planning take part in which it helps calculate a few of factors in terms of cost, such as training, recruitment, etc. These all will be put into an organization’s operating budget.