Functional HR Strategies
Resourcing strategy
Resourcing strategy is a key part of the SHRM process. It is
concerned not only with obtaining and keeping the number and quality of staff
required but also with selecting and promoting people who fit the culture and
the strategic requirement of the organization. Thus, it involves radical change
in thinking about the skills and behaviors required in the future to achieve
sustainable growth and cultural change.
The integration of business and resourcing strategies is based on
an understanding of the direction in which the organization is going and the
determination of:
· The
number of people required to meet business needs.
· The
skills and behavior required to support the achievement of business strategies.
· The
impact of organization restructuring.
· Plans for
changing the culture.
Components of employee resourcing strategy
· Workforce
planning
· Developing
the organization’s employee value proposition
· Resourcing
plans
· Retention
strategy
· Flexibility
strategy
· Talent
management strategy
Learning,
Training and Developments are the 3 key elements of HRM development.
Strategies to create a learning culture.
· Develop a
shared vision.
· Empower
employees.
· Provide
employees a supporting learning environment.
· Use
coaching techniques.
· Guide
employees through their work challenges
· Recognize
the importance of managers as role models.
· Encourage
networks.
· Align
system to vision.
Learning organization strategy
Learning
organization should be able to adopt to their context and develop their people
to match the context. Garvin (1993) suggested
learning organizations are good at:
· Systematic
problem solving
· Experimentation
· Learning from
past experiences
· Learning from
others
· Transferring
knowledge quickly
Individual
learning strategies are driven by the organizations HR requirement which are
expressed in terms of sort of skills and behaviors that will be required to
achieve business goals.
Learning strategies should cover:
· Identification
of learning needs
· The role
of personal development planning and self-managed learning
· Support
for individual learning
Strategies
for managing performance.
Performance
management is strategic in the sense that it is concerned with the boarder
issues facing the organization if it is to function effectively in its
environment and with the general direction in which it intends to go to achieve
longer term goals. It is integrated with:
· Vertical integration-
Linking business, team and individual objectives.
· Functional
integration- Linking functional strategies in different part of the business.
· HR
integration- Linking different aspects of HRM.
· The
integration of individual needs with those of the organization as far as possible.
Reward Strategy
Reward
strategy is the declaration of intent that definers what an organization wants to
do in the longer term to address critical reward issues and to develop and implement
reward policies, practices and processes that will further the achievement of
its business goals and meet the needs of its stakeholders.
The
reward strategy may be a broad-brush affair, simply indicating the general
direction in which it is thought reward management should go.
· The department
of a total reward approach in which each aspect of reward, namely base pay,
contingent pay, employee benefits and non-financial rewards are linked.
· The
replacement of present methods of contingent pay with a pay for contribution scheme.
· Introducing
of new grade and pay structure.
· Replacement
of an existing job evaluation scheme.
· Improvement
of the performance management process.
· Introduction
of a formal recognition scheme.
· Flexible benefit
scheme.
· Conduct
of equal pay reviews.
Developing reward strategy
4 key development phases:
1.
The diagnosis phase, when reward goals are agreed, current
policies and practices assessed against them, options for improvement considered
and any changes agreed.
2.
The detailed them, options for improvement and changes are
detailed and any changes tasted.
3.
The final testing and preparation phase
4.
The implementation phase, followed by ongoing review and
modification.
Figure 1:
A model of the reward strategy development process (Armstrong-2009)
Effectively reward strategies.
3
components of an effective reward strategy:
1.
Clearly defined goal and well-defined link to business objectives.
2.
Well-designed pay and reward programs, tailored to the needs of
the organization and its people and consistent and integrated with one another.
3.
Be effective and supportive HR and reward processes in place.
Retention
strategy
This
aim to ensure that key people stay with organization and that wasteful and expensive
level of employee turnover are reduced. The retention plan could address the arear
such as:
· Pay
· Job design
· Performance
· L&D
· Career
development
· Commitment
· Teamwork
· Manager
and supervisor support
Conclusion
The article discusses the importance of developing functional HR
strategies that are integrated with the business strategies of an organization.
It highlights various components of HR strategies such as resourcing, learning
and development, performance management, reward, and retention strategies. The
resourcing strategy is about obtaining and keeping the number and quality of
staff required and selecting people who fit the culture and the strategic
requirement of the organization. The learning and development strategy focuses
on creating a learning culture and developing people to match the context of the
organization. The performance management strategy is concerned with aligning
business, team and individual objectives, linking different aspects of HRM, and
integrating individual needs with those of the organization as far as possible.
The reward strategy is about developing and implementing reward policies,
practices, and processes that will further the achievement of business goals
and meet the needs of stakeholders. Finally, the retention strategy aims to
ensure that key people stay with the organization and that wasteful and
expensive levels of employee turnover are reduced. Effective HR strategies have
clearly defined goals that are linked to business objectives, well-designed pay
and reward programs, and supportive HR and reward processes in place.
Reference
· Indeed,
Career Guide. (n.d.). The 8 Functional Areas of Human Resources.
[online] Available at:
https://www.indeed.com/career-advice/career-development/functional-areas-of-human-resources.
·
Valamis. (n.d.). Learning and Development (L&D)
Strategy: 6 Steps to Create [2023]. [online] Available at:
https://www.valamis.com/blog/learning-and-development-strategy.
·
Valamis. (n.d.). Learning and Development (L&D): Key
Components and Importance [2022]. [online] Available at:
https://www.valamis.com/hub/learning-and-development.
·
Yadav, S. and Agarwal, V. (2016). Benefits and Barriers of
Learning Organization and its five Discipline. Journal of Business and
Management, [online] Available at: https://doi.org/10.9790/487X-1812011824.
·
Assignment Point. (n.d.). Reward Strategy. [online]
Available at: https://assignmentpoint.com/reward-strategy/.
Hi Detailed article. Strategic Human resource management is the strategic approach to take care of and support the employees and ensure a positive/willing workplace environment. Its functions vary across different businesses and industries but typically include recruitment, compensation and benefits, training and development and especially employee relations. what is your opinion on that?
ReplyDeleteI completely agree with your comment. Strategic Human Resource Management (SHRM) is indeed a strategic approach to managing human resources that focuses on aligning HR practices with the overall business strategy of an organization. This approach emphasizes the importance of treating employees as valuable assets rather than just resources to be managed.
DeleteRecruitment, compensation and benefits, training and development, and employee relations are all key functions of SHRM, and they all contribute to creating a positive and productive workplace environment. By effectively managing these functions, an organization can attract and retain top talent, foster employee engagement and satisfaction, and ultimately drive business success.
Very attractive article Hansika, This blog article argues that the integration of HR strategies with business strategies is essential for organizations to achieve their objectives effectively. It highlights the importance of developing a resourcing strategy that is concerned with obtaining and keeping the number and quality of staff required, selecting people who fit the culture and strategic requirement of the organization, and creating a learning and development strategy. It also discusses the importance of the performance management strategy, which is concerned with aligning business, team and individual objectives and integrating individual needs with those of the organization. Finally, the article emphasizes the significance of the reward strategy, which aims to develop and implement reward policies, practices, and processes that meet the needs of stakeholders and further the achievement of business goals. These strategies are all important components of HR strategy development that can positively impact organizational performance.
ReplyDeleteThank you for your comment! I completely agree with your perspective. HR strategies need to be aligned with business strategies to ensure that organizations can achieve their goals and objectives effectively. The resourcing strategy is an essential part of HR strategy development as it helps in obtaining and retaining the right talent for the organization. The learning and development strategy is also crucial in ensuring that employees have the necessary skills and knowledge to perform their jobs effectively. The performance management strategy helps in aligning individual goals with the goals of the organization, thereby ensuring that employees are working towards achieving common objectives. The reward strategy is important in ensuring that employees are recognized and rewarded for their contributions towards the achievement of business goals. However, integrating HR strategies with business strategies can help organizations create a positive and productive workplace culture that can drive growth and success.
DeleteWell-discussed article Hansika. Chopra, D. (2022) mentioned that There is a common misconception that high management alone is responsible for deciding an organization's business strategy. However, preparing and planning for your team can benefit leaders of all ranks and responsibilities. If you want to improve your company plan, you must increase your problem-solving abilities. These abilities can be learned by engaging in self-learning activities, reading books, obtaining business strategy certification, and reading case studies of workers who have addressed problems and developed sound business strategies for their organizations and teams.
ReplyDeleteThank you for your comment! I completely agree with the points made in the article by Chopra. Business strategy is not solely the responsibility of high-level management, but rather a collective effort that involves input from all levels of the organization. It's important for leaders at all ranks to develop problem-solving abilities and continuously educate themselves through self-learning activities, reading books, obtaining certifications, and studying case studies of successful business strategies. By doing so, leaders can better prepare and plan for their teams, ultimately leading to a more successful and efficient organization.
DeleteVery detailed article Hansika . The functional HR strategy consists of recruitment & selection, development, motivation, and retaining employees and other relations . Functional area strategies typically include marketing, production, human resources (HR), and research and development (R&D). Each of these departments has its own goals and strategies that contribute to the attainment of the company's overall goal. A functional strategy, also known as a “departmental strategy”, concerns each organizational function, and how that organizational unit or division assigned that function will achieve its strategic objectives (a part of the business/competitive strategy). Each functional area or department is assigned the specific goals and objectives it must achieve to support the higher-level strategies and planning. Functional strategies specify outcomes to be achieved from the daily operations of specific departments or functions. Functional strategies refer to strategies which are formulated in the individual functional departments such as marketing, finance, production, R&D, Human Resource Management etc.
ReplyDeleteThank you for your comment! I'm glad you found the article detailed. You've provided an insightful overview of functional strategies and their importance in achieving a company's overall goals. As you've mentioned, each functional area, such as marketing, production, HR, and R&D, has its own goals and strategies that contribute to the success of the organization. Functional strategies are formulated to define the specific outcomes to be achieved by each department and to align these outcomes with the company's overall strategy. By setting clear goals and objectives for each functional area and aligning them with the company's overall strategy, an organization can optimize its operations and improve its overall performance.
DeleteThe blog post provides a comprehensive overview of the various components of HR strategies, including resourcing, learning and development, performance management, reward, and retention strategies. It highlights the importance of integrating these strategies with the business strategies of an organisation to achieve sustainable growth and cultural change. The post presents a clear and concise description of each component of HR strategy and provides practical insights into how organisations can develop effective HR strategies.
ReplyDeleteHowever, the post could have benefited from some specific examples of organisations that have successfully implemented these strategies. Additionally, while the post provides a good framework for developing HR strategies, it does not address the challenges that organisations may face in implementing them. For example, implementing a learning and development strategy requires a significant investment of time and resources, and organisations may struggle to balance the needs of the business with the needs of employees.
My question to you Hansika, What are some of the challenges that organisations may face when implementing HR strategies, and how can they overcome these challenges?