Developing HRM Strategy
Developing an HRM (Human Resource Management) strategy
involves identifying and aligning HR policies, practices, and procedures with
the overall goals and objectives of the organization.
In developing such a strategy 2 critical question must be
address.
1.
What kind of people do you need manage and run
your business to meet your strategic business objective?
2.
What people programs and initiatives must be
designed and implemented to attract, develop, and retain staff to compete
effectively?
Answer to these questions we can use 4 key dimensions of an
organization.
· Culture- The beliefs, values, norms, and management
style of the organization
· Organization- The structure, job roles and
reporting lines of the organization
· People- the skill levels, staff potential and
management capability
· HR system- the people focused mechanisms which
deliver the strategy employee selection, communication, training, reward,
career development ect..
Following steps to be followed in developing a HRS and the active
involvement of senior line manager should be sought throughout the approach.
Classical
approaches to strategy formulation.
1. Define the mission.
2.
Set objectives
3.
Conduct internal and external analysis
4.
Analyze existing strategies to determine their relevance
in the light of the internal and external analysis
5.
Define the light of the analysis the distinctive
capabilities of the organization
6.
Define the key strategies issue
7.
Determine corporate and functional strategies
8.
Prepare integrated strategies plans for
implementing strategies.
9.
Implement, monitor and revise the strategies
Step 1: Get the ‘big picture.’
Understand the business strategy.
·
Highlight the key driving forces of your
business. What are they? Eg: technology, distribution, competition, the
markets.
·
What are the implications of the driving forces
for the people side of your business?
·
What new skills and capabilities will be required?
·
What is the fundamental people contribution to
bottom line business performance?
Step 2: Develop a mission statement or statement of
internet
That relates to the people side of the business.
·
What do your people contribute?
Step 3: Conduct a SWOT analysis of the organization
Focus on the internal strengths and weaknesses of the people
side of the business.
·
Consider the current skill and capabilities
issues.
High light the opportunities and threats relating to the
people side of the business.
·
What impact will/might they have on business
performance?
·
Consider skill shortages?
·
The impact of new technology on staffing levels?
Step 4: Conduct a detailed HR analysis
Concentrate on the organization’s COPS (culture,
organization, people and HR system)
·
Consider: where are you? Where do you want to be?
·
What gaps exists between the reality of where
you are now and where you want to be?
Step 5: Determine critical people issues
Go back to the business strategy and examine it against your
SWOT and COPS analysis
· Identify the critical people issues namely those people issues
that you must address. Those which have a key impact on the delivery of your business
strategy.
· Prioritize the critical people issues. What will happen if you fail
to address them?
Remember you are trying to identify where you should be focusing
your efforts and resources.
Step 6: Develop consequences and solutions.
For each critical issue high light, the options for managerial
action generate, elaborate, and create don’t go for the obvious. This is an important
step. Once you have worked through the process it should then be possible to
translate the action plan into board objectives. These will need to be broken
in to the specialist HR system areas of
· Employee T&D
· Management development
· Organization development
· Performance appraisal
· Employee reward
· Employee selection and recruitment
· Manpower planning
· Communication
· Develop your action plan around the critical issues. Set targets
and dates for the accomplishment of the key objectives.
Step 7: Implementation and evaluation of the action
plan
The ultimate purpose of developing a HR strategy is to ensure that
the objectives set are mutually supportive so that the reward and payment
systems are integrated with employee training and career development plans. There
is a very little value or benefit in training people only of then frustrate
them through a failure to provide ample career and development opportunities.
In conclusion,
developing a Human Resource Management (HRM) strategy is crucial for any
organization to align its HR policies, practices, and procedures with its
overall goals and objectives. To develop a powerful HR strategy, organizations
must ask critical questions about the kind of people they need to manage and
run their business and the programs and initiatives they must implement to
attract, develop, and retain staff effectively. By using the four key
dimensions of an organization, including culture, organization, people, and HR
systems, organizations can define their mission, set objectives, conduct
internal and external analysis, analyze existing strategies, and determine
corporate and functional strategies. The goal of developing an HR strategy is
to ensure that the objectives set are mutually supportive so that the reward
and payment systems are integrated with employee training and career
development plans. The active involvement of senior line managers is essential
throughout the approach, and organizations must implement, monitor, and revise
their strategies regularly to achieve success.
Reference
· Personnel
Today. (2015). Developing HR strategy: 8 steps towards delivering a
successful HR strategy - Personnel Today. [online] Available at: https://www.personneltoday.com/hr/developing-hr-strategy-8-steps-towards-delivering-a-successful-hr-strategy/.
·
www.bing.com. (n.d.). get the big picture in strategy
development - Bing video. [online] Available at:
https://www.bing.com/videos/search?q=get+the+big+picture+in+strategy+development&&view=detail&mid=9BE35C1086DDF1F4F5A79BE35C1086DDF1F4F5A7&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3Dget%2Bthe%2Bbig%2Bpicture%2Bin%2Bstrategy%2Bdevelopment%26FORM%3DHDRSC6
[Accessed 13 Apr. 2023].
·
Katie Sawyer (2019). Deputy. [online] Deputy.
Available at:
https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management.
· Amstrong,
M.(2006). A handbook of strategic HRM
Excellent article on Developing an HRM strategy, Hansika.
ReplyDeleteWhat challenges do you think small organisations face when developing a new HRM strategy?
Thank you for your kind words! Small organizations face unique challenges when developing a new HRM strategy. Here are some of the main challenges that they may encounter:
DeleteLimited Resources: Small organizations often have limited resources, which can make it difficult to develop and implement a comprehensive HRM strategy. They may not have the budget to hire a dedicated HR professional or invest in technology that can streamline HR processes.
Lack of HR Expertise: In small organizations, HR responsibilities may fall on the shoulders of individuals who do not have formal HR training. This can make it difficult to develop a strategy that addresses all the HR needs of the organization.
Flexibility vs. Formality: Small organizations may have a more informal culture that values flexibility and autonomy. Developing a formal HRM strategy that imposes strict policies and procedures may not align with the culture and values of the organization.
Resistance to Change: Small organizations may be resistant to change and may be hesitant to implement new HR policies or procedures. This can make it difficult to gain buy-in and support for a new HRM strategy.
Employee Turnover: Small organizations may have a higher rate of employee turnover, which can make it difficult to implement and maintain a consistent HRM strategy. It may be challenging to ensure that new employees are trained on HR policies and procedures, and it can be time-consuming to update HR documentation when employees leave. Developing an HRM strategy for a small organization requires a thoughtful approach that takes into account the unique challenges of the organization. It may be helpful to seek out resources and support from external sources, such as HR consultants or industry associations, to help guide the process.
Valuable article Hansika , Having an HR strategy is important because it determines how HR processes work in your company and ensures they are in alignment with the organization’s goals. HR practices can increase employee productivity, positively impact employee learning and improve a business’s overall performance. A successful human resources strategy can:
ReplyDeleteImprove employee and supervisor relations
Hasten the speed of HR policy implementation
Foster an environment conducive to your company’s culture and encourage strong workplace ethics
Inspire fair treatment of and cooperation between team members regardless of age, sex or background
Dampen a high turnover rate by improving employee loyalty
(www.indeed.com,2023)
Thank you for your feedback! I completely agree with your points on the importance of having an HR strategy. It's essential for any organization to align its HR practices with its overall goals and values.
DeleteSHRM can lead to improved organizational outcomes, such as increased employee engagement, enhanced competitive advantage, and better financial performance (Johnson & Brown, 2018)
ReplyDeleteThis is a great piece about SHRM and how it affects organizational growth. This a fantastic article to read, keep it up
I completely agree with you! The strategic alignment of HR practices with organizational goals and objectives is crucial for an organization's success. When implemented effectively, SHRM can create a positive work environment that fosters employee engagement, which ultimately leads to better performance outcomes.
DeleteA comprehensive read Hansika. Yea, it is very important that HR strategy is regularly re-visited to ensure its alignment with the overall startegy of the organization. However, could you clatufy on what you meant by saying people side of things maybe through some examples? How is the HR strategy aligned with overall startegy in your organization? Also, i feel ot os mostly HR processes that must align with overall startegy. HR policiea most often are set to ensure transparebxy in applicability of process and benefits for emplpyees. What are your thoughts?
ReplyDeleteThank you for your feedback and questions! When I mentioned the "people side of things," I was referring to the human capital of the organization, which includes the workforce's skills, knowledge, experiences, and abilities. The HR strategy should ensure that the organization's human capital aligns with its overall strategy by identifying the talent gaps and skill sets required to achieve the organization's goals. For example, if the organization's strategy involves expanding into a new market or launching a new product line, the HR strategy should focus on recruiting or developing employees with the relevant language, cultural, or technical skills necessary for success in that new area. I agree that HR processes should align with the overall strategy of the organization to ensure transparency and fairness in the application of HR policies. However, HR policies should also align with the overall strategy to ensure that they support the organization's goals and objectives. For example, suppose an organization aims to become a more innovative and agile company. In that case, HR policies should focus on promoting creativity and risk-taking by providing employees with more autonomy and encouraging them to experiment with new ideas.
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ReplyDeleteThank you for the great article!
ReplyDeleteI appreciate the way you explained the importance of developing an effective HRM strategy and how it can contribute to the success of an organization. I would like to suggest you to explore the impact of external factors on HRM strategy development. HR professionals must take into account external factors such as economic conditions, industry trends, and regulatory changes when developing their strategies. By examining the role of these external factors in HRM strategy development, readers can gain a deeper understanding of how to adapt their HR strategies to changing external circumstances.
Thank you for your feedback and suggestion! You make an excellent point about the importance of considering external factors when developing an effective HRM strategy. External factors can have a significant impact on an organization's HR practices, and HR professionals must be aware of them and adapt their strategies accordingly. In future articles, I will make sure to explore the impact of external factors on HRM strategy development in more detail. Thank you again for your valuable input!
DeleteThe article emphasizes that developing an HRM (Human Resource Management) strategy is critical to the overall success of the organization. I agree with the article as it provides a comprehensive approach to develop an HRM strategy that aligns with the organization's overall goals and objectives. Briscoe, Schuler, and Tarique (2012) also emphasize the importance of aligning HR policies and practices with the overall goals and objectives of the organization to develop an effective HRM strategy. According to Lawler and Boudreau (2015), a clear understanding of the organization's business strategy is essential for developing an HRM strategy that contributes to the bottom line business performance. Additionally, Marchington and Wilkinson (2020) suggest that conducting a SWOT analysis of the organization is a critical step in developing an HRM strategy as it helps identify the strengths, weaknesses, opportunities, and threats to the people side of the business. Therefore, I recommend organizations to follow the article's approach to develop an HRM strategy that aligns with their business objectives and contributes to the overall success of the organization
ReplyDeleteI completely agree with your response that developing an HRM strategy is critical to the overall success of an organization. Aligning HR policies and practices with the organization's overall goals and objectives is essential in developing an effective HRM strategy.
DeleteAs you mentioned, Briscoe, Schuler, and Tarique (2012) and Lawler and Boudreau (2015) emphasize the importance of understanding the organization's business strategy in developing an HRM strategy that contributes to the bottom-line business performance. Marchington and Wilkinson (2020) suggest that conducting a SWOT analysis of the organization is also an essential step in identifying the strengths, weaknesses, opportunities, and threats to the people side of the business.
Thank you for sharing valuable article. By developing HR strategy is so important because it controls how HR processes work in the organization and ensures that they are in alignment with the organization's goals. Because of that HR managers can increase employee productivity, positively impact employee learning and improve a business's overall performance.
ReplyDeleteThank you for your comment! You are absolutely right that developing an HR strategy is crucial for organizations to align HR processes with business goals and objectives. HR managers play a vital role in shaping the company's overall performance and success by improving employee productivity and learning. By adopting effective HR practices and creating a positive work environment, organizations can attract and retain the best talent, which can lead to increased innovation and competitiveness. It's essential for HR managers to be strategic in their approach to HR, considering both short-term and long-term objectives to achieve sustainable growth and success.
DeleteWhen it comes to futuristic view, HR professionals can use a variety of technologies to develop HRM strategies, such as HR Information Systems (HRIS), Artificial Intelligence (AI), Data Analytics, Employee Self-Service (ESS), Virtual Communication Tools, and Learning Management Systems (LMS). These technologies can help HR professionals make informed decisions, automate HR processes, identify skills gaps, predict turnover, and monitor performance metrics. They can also reduce administrative burdens on HR managers and improve employee engagement.
ReplyDelete