The first stage in a strategic human capital management planning cycle is identifying objectives (C) . At the SPHR level, all human capital planning begins with clarity about business and organizational goals .

Identifying objectives establishes direction and purpose for workforce planning, talent development, and resource allocation. Without clearly defined objectives, subsequent steps—such as skill gap analysis, resource evaluation, or program design—lack alignment and relevance.

Assessing skill gaps (A) and evaluating resources (B) are diagnostic steps that follow objective setting. Outlining program activities (D) is an implementation step that occurs later in the cycle.

SPHR exam content emphasizes that effective human capital planning mirrors strategic planning logic: define goals first, then diagnose, design, and execute .

References :

HRCI SPHR Exam Content Outline — Functional Area: Leadership and Strategy (human capital planning).

HRCI SPHR Study Guide — Strategic workforce and human capital planning cycles.

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