Formulation of HR strategy

 

HR strategies and its purpose.

HR strategies are “internally consistent bundles of HR practices” (Dyer and Reeves,1995)

The purpose of HR strategies is to articulate what an organization intends to do about its HRM policies and practices now and in the long term, bearing in mind that the business and manager should perform well in the present to succeed in the future.

Business strategy Vs HR strategy

The aim of SHCM enables strategic decisions to be made that have a major and long term impact on the behavior and success of the organization by ensuring that the organization has the skilled committed and well-motivated employees it needs to achieve sustained competitive advantage. SHCM attempt to achieve a proper balance between the hard and soft elements of HRM.

Direct Impact

For an example if HR functions can have a direct impact on cost leadership as the business strategy. It can be achieved by:

·       Planning to avoid employee shortages and surpluses.

·       Obtain economies in advertisements for recruitment ect.

·       Alternative recruitment practices.

·       Sound management system of H & S.

Indirect Impact

1.       HRM functions result in employee centered outcomes.

2.       Employee-centered outcomes result in organization-centered outcomes.

3.       Organization centered outcomes result in competitive advantage.

Competitive advantage gained from HRM is sustainable due to 2 key reasons.

·       HRM practices are generally not visible to competitors.

·       Even when the practices are visible, their impact may not be as favorable when used by competitors.

An effective HR Strategies will:

·       Satisfy business needs.

·       Be founded on detailed analysis and study.

·       Be turned into actionable programs that anticipate implementation requirements and problems.

·       Be coherent and integrated with on another.

·       Take account of needs of the line managers and employees generally as well as those of the organization and stakeholders.

Corporate issue.

Vision and mission

·       SHRM is concerned with the people implication of top management’s vision of the future of the organization and the mission it is there to fulfil.

·       HR strategies support realization of the vision and mission and achievement of its goals.

Structure

Business opportunities cannot fully maximize unless there is proper management structure to create them.

Team working

Demolition of traditional hierarchies has had far reaching effects on flexibility and performance and has contributed significantly to the achievement of better coordination.

Performance

A performance strategy will be based on an analysis of the critical success factors and the performance levels reached in reaction to them. Steps can be agreed as to what needs to be done to improve performance by training, development, reorganization, the development of performance improvement and development and not reward.

Quality and customer care.

Quality means customer satisfaction is generally recognized today as the key achievement of competitive advantage. Quality is achieved through people and in accordance with the basic HRM principles, investment in people is prerequisite for achieving high quality standards.

In conclusion, HR strategies are essential for organizations to achieve sustained competitive advantage through skilled, committed, and motivated employees. The aim of SHCM is to balance the hard and soft elements of HRM to enable strategic decisions that have a major and long-term impact on the behavior and success of the organization. Effective HR strategies should satisfy business needs, be founded on detailed analysis and study, be coherent and integrated with one another, and take account of the needs of the line managers and employees generally as well as those of the organization and stakeholders. HR strategies support the realization of the organization's vision and mission and contribute to the achievement of its goals, including the demolition of traditional hierarchies and the achievement of better coordination. Finally, quality and customer care are critical to achieving sustained competitive advantage, and investment in people is a prerequisite for achieving high-quality standards.

Reference

·       Komal Sahi (2014). Ch2 Human Resource Policies and Strategies. [online] Available at: https://www.slideshare.net/sahikomal/ch2-human-resource-policies-and-strategies [Accessed 12 Apr. 2023].

·        epay-systems-admin (2020). Strategic Human Capital Management - Components, Values & Benefits. [online] Available at: https://www.epaysystems.com/strategic-human-capital-management/#:~:text=Strategic%20human%20capital%20management%20%28HCM%29%20is%20a%20people-focused [Accessed 12 Apr. 2023].

·       Haan, K. (2023). Strategic Human Resource Management Guide – Forbes Advisor. [online] Available at: https://www.forbes.com/advisor/business/strategic-human-resource-management/.