Formulate a strategic human resource plan

This unit covers formulation of a strategic human resource plan that links the human resource function with the direction of business units and the organisation. It includes identifying key issues, and developing, implementing and evaluating the strategic human resource plan.In practice, strategic human resource planning overlaps with other generalist and specialist workplace activities such as influencing change, shaping diversity management, influencing strategic policy, strategic planning.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication


Not applicable.


Not applicable.

Elements and Performance Criteria



1. Identify key human resource issues arising from the organisation's strategic plan

1.1 The organisation's strategic and business plans are analysed to determine key human resource issues.

1.2 Internal/external factors likely to impact upon the workforce profile and future human resource requirements are identified and considered.

1.3 Workforce data is analysed for trends to determine key human resource issues.

1.4 Business units and senior management within the organisation are consulted for information on future requirements.

1.5 Forward planning tools are utilised to predict longer term issues and needs to be addressed in the strategic human resource plan.

2. Develop a plan to meet the human resource requirements of an organisation

2.1 The plan is developed based on data drawn from information sources, consultations with stakeholders, and good practice models, and is consistent with relevant legislative and policy requirements.

2.2 Strategies for workforce planning, workforce management, managing succession and skill shortages are contained in the plan to support the organisation's business vision and provide for the right people to be in the right place at the right time.

2.3 Strategies are included within the plan consistent with the organisation's strategic perspective.

2.4 Risks associated with planned strategies are identified and addressed.

2.5 Resource requirements are identified and a budget is prepared to support the implementation of the plan and performance indicators and timeframes are prepared to provide a basis for monitoring.

3. Implement a human resource plan

3.1 Agreement on the plan is obtained through consultation with other business units within the organisation.

3.2 The human resource plan is documented and communicated to other business units in accordance with the needs of a diverse workforce.

3.3 Systems and tools required to support implementation are identified in accordance with organisational requirements.

3.4 Human resource strategies are implemented in accordance with the plan and are monitored and revised against the budget and key performance indicators.

3.5 Support in implementing the plan is provided to business units in accordance with organisational requirements.

4. Evaluate the effectiveness of the human resource plan

4.1 Ongoing monitoring/evaluation of the plan is undertaken to adjust strategies as needed to take account of new developments or contingencies.

4.2 A reliable and valid evaluation methodology is developed and implemented to formally evaluate outcomes.

4.3 The plan is judged in accordance with its effectiveness in contributing to the achievement of the organisation's strategic goals and business objectives.

4.4 A range of information is utilised and analysed to provide a basis for the judgments to be made in relation to the plan's effectiveness.

4.5 Outcomes of the evaluation are reported with appropriate recommendations for enhancement of the plan, to inform ongoing planning and integrate human resource planning into the organisational planning framework.

Required Skills

This section describes the essential skills and knowledge and their level, required for this unit.

Knowledge requirements

Look for evidence that confirms knowledge and understanding of:

organisational goals, policies and procedures

the importance of human resource management in attaining organisational goals

strategic planning processes

consultation and management practices

the relationships between key human resource functions

the concept of diversity and its integration within and across all human resource functions and areas

equal employment opportunity, equity and diversity principles

human resource policies and practices

jurisdictional legislation applying to human resources, including occupational health and safety and environment and sustainability practices

range of evaluation methodologies

Skill requirements

Look for evidence that confirms skills in:

undertaking effective consultation with stakeholders

using marketing and public relations strategies

applying strategic thinking and planning

using a variety of words and language structures to explain complex ideas to different audiences

interpreting and explaining complex, formal documents such as legislation and policies and assisting others to apply them in the workplace

preparing written advice and reports requiring reasoning and precision of expression

responding to diversity, including gender and disability

Evidence Required

The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.

Units to be assessed together

Pre-requisite units that must be achieved prior to this unit:Nil

Co-requisite units that must be assessed with this unit:Nil

Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:

PSPETHC701A Lead and influence ethical practice in the public sector

PSPHR703A Provide leadership in strategic human resource management

PSPMNGT701B Provide strategic direction

PSPMNGT702A Influence and shape diversity management

PSPMNGT703A Lead and influence change

PSPMNGT704A Undertake enterprise risk management

PSPPOL701A Influence strategic policy

Overview of evidence requirements

In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:

the knowledge requirements of this unit

the skill requirements of this unit

application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)

strategic human resource plans formulated in a range of (2 or more) contexts (or occasions, over time)

Resources required to carry out assessment

These resources include:

strategic planning guidelines

legislation, policies and procedures relating to strategic human resource planning

workplace information such as mission, vision, strategic and business goals

workplace scenarios and case studies to capture the range of situations likely to be encountered when formulating strategic human resource plans

Where and how to assess evidence

Valid assessment of this unit requires:

a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when formulating strategic plans, including coping with difficulties, irregularities and breakdowns in routine

strategic human resource plans formulated in a range of (2 or more) contexts (or occasions, over time)

Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:

people with disabilities

people from culturally and linguistically diverse backgrounds

Aboriginal and Torres Strait Islander people


young people

older people

people in rural and remote locations

Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:

case studies




authenticated evidence from the workplace and/or training courses

For consistency of assessment

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments

Range Statement

The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in bold italics in the Performance Criteria is explained here.

Internal and external factors within the organisation's operating environmentmay include:

changed financial or political circumstances

government policies

downsizing or organisation restructuring

future directions for the organisation

opportunities for outsourcing

changes in legislation or core business activities

changes in activities or aspirations of customers

changes in environmental and sustainability practices

organisational changes

labour market shortages

hard to fill positions

hard to attract staff

changes in demographic and social trends

existing skill base in relation to achievement of corporate goals

Workforce datamay include:

analysis of the size, shape and structure of the current workforce

projected future workforce requirements

performance management issues




redeployment levels

Forward planning toolsmay include:

supply and demand forecasting

scenario planning

Stakeholders may include:

all those individuals and groups both inside and outside the organisation that have some direct interest in the organisation's behaviour, actions, products and services such as:

users of the human resource service

employees at all levels of the organisation

other public sector organisations

inter-agency forums

union and association representatives

boards of management



Legislative and policy requirementsmay include:

Commonwealth and State/Territory legislation including equal employment opportunity and anti-discrimination law

national and international codes of practice and standards

the organisation's policies and practices

environmental and sustainability policies

government policy

codes of conduct

Strategies to manage the workforcemay include:

recruitment and induction

performance management

learning and development


acting opportunities

strategies to reduce the incidence of turnover/separation

Sources of information for evaluationmay include:

workforce profile

basic statistical analyses

interviews with stakeholders


focus groups interviews

research on existing programs

solicited and unsolicited feedback

organisational reviews

workforce management data

exit interviews


Not applicable.

Competency Field

Human Resource Management

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.