HUMAN RESOURCE STRATEGIES

LECTURE 4

WHAT ARE HR STRATEGIES ?

Human resource strategies are internally

consistent bundles of human resource
practices . Dyer and Reeves (1995).

HR strategies set out what the organization

intends to do about its human resource
management policies and practices and how
they should be integrated with the business
strategy and each other. Michael Armstrong
(2008).

PURPOSES OF HR STRATEGIES

1. To articulate what an organization intends

to do about its human resource management
policies and practices now and in the longer
term.

2. To set out intentions and to provide a

sense of purpose and direction in the short
term.

CATEGORIES OF OVERALL HR
STRATEGIES

1. Emergent, Evolutionary and

Unarticulated
Category of
HR
Strategy
2. Broad Category of HR Strategy
3.
Specific
and
Articulated
Category of HR Strategy
4. Conscious Category of HR
Strategy

CATEGORIES OF OVERALL HR
STRATEGIES
a) High performance management

creating value to customers.

b) High-involvement management
Management systems based on commitment
and involvement with the organization.
Acts as synergy and has a multiplicative
effect.
Concerned
with
communication
and
involvement.

CATEGORIES OF OVERALL HR
STRATEGIES

c) High-commitment management
Management
aimed
at
eliciting
a
commitment with self-regulated behaviour.
Relations within the organization are based
on high levels of trust.
It involves with
Career ladders
Trainability and commitment as highly
valued employee characteristics at all levels.

CATEGORIES OF OVERALL HR
STRATEGIES

Reduction of hierarchy.
Ending of status differentials.
Heavy reliance on team structure
(team briefing) , structuring work
(team working)
and problem
solving (QC Circle) .
Jobs with intrinsic satisfaction.

Job
security
with
little
leverage.
Merit pay and profit sharing.
High employee involvement in
quality management.
Tangible expression of values
and their implementation.

SPECIFIC HR STRATEGIES

Human capital management .Value adding

with effective MIS and operations.
Organization development.
Engagement.
Knowledge management. creating, acquiring,
capturing, sharing and using knowledge.
Resourcing - Integrated staffing and retention
of high quality people.

SPECIFIC HR STRATEGIES

Corporate social responsibility.

High performance management. Integrated
staffing, extensive and rigorous training and
development programs, right performance
evaluation and merit-based pay.
Talent management. Nursing merit
and
giving opportunity to use merit .
Learning and development. Encouraging,
training , and developing people.

SPECIFIC HR STRATEGIES

Reward. Fair and just, attractive to new

talented people and motivating to both
individual and group higher productivity.
Employee relations.
Separation management. Attractive and
motivating.

CRITERIA FOR AN EFFECTIVE HR

STRATEGIES

1. satisfy business needs.

2. detailed analysis and study.
3. actionable programmes.
4. coherent and integrated.
5. consider the needs of all
stakeholders.

FUNDAMENTAL QUESTIONS FOR

FORMULATING HR STRATEGIES

1. What are the firms strategic objectives?

2. How are these translated into unit
objectives?
3. what do unit managers consider are the
performance drivers of those objectives?
4. How do the skills , motivation and
structure of the firms workforce influence
these performance drivers?
5. How does the HR system influence the
skills , motivation and structure of the
workforce?

APPROACHES OF HR STRATEGY
FORMULATION

1. Inside-out approach
status quo HR
function

identify
deviations in
alignment
with
business

make minor
adjustments
to HR
activities to
keep on line.

2. Outside-in approach
Business Issues
analysis
Customers,
Competitors,
Business itself.

HR Strategy
Formulation

LEVELS OF HR STRATEGIC
DECISION MAKING

Upstream first-order decisions- long-term

direction .

Downstream
second-order
decisions
-internal
operational
procedures
and
methods to achieve goals.

Downstream third-order decisions - human

resource structure and approaches that
establish the basic parameters for HRM.

DEVELOPING HR STRATEGIES
1. Create a map of the system

2. Develop strategic goals.

3.Assess strengths and

weaknesses

4. Create a map of the system

DEVELOPING HR STRATEGIES
5. Model the dynamics of the system.

6. Bridge into action

7. Implement HR strategies.

DEVELOPING HR STRATEGIES

6. Bridge into action that is agree with

broad themes for action and the specific
issues related to those themes, develop
guiding principles, involve line mangers and
create cross-functional teams to identify
goals and performance goals.

DO YOU
HAVE
ANY
QUESTION ?