Download pdf - 04 HR Strategies

7/28/2019 04 HR Strategies

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LECTURE 04

HR Strategies


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Contents

Importance of HR to Strategy

What are HR Strategies

Types of HR Strategies

Criteria for an Effective HR Strategy


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IMPORTANCE OF HR TO STRATEGY


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Importance of HR to Strategy

Providing Competitive Advantage (CA) Michael E Porter HRM is the key to obtaining CA

CA can be obtained through a high quality workforce, whichenables organizations to compete on the basis of marketresponsiveness, product and services quality, differentiated

products and technological innovation Rush to competencies

Controlling Labor Costs

Eliminating inefficient use of workforce underutilizedworkers, lack of trust, resistance to change, antagonistic labor-

management relations, motivation problems, and restrictivework practices leading to low productivity

Better HR utilization would prove to be more cost efficientthan investing in plant and equipment.


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Importance of HR to Strategy (Contd.)

Rush to competencies (Contd.)

Potential cost efficiencies and improved HRM would play a key

role in organizations competitive strategy and development of

distinctive competencies

Awareness of the demands of the technologically advancedenvironment of the future

Means of buffering environmental uncertainty

Gauging effects of environmental turbulence, globalization,

technology, dramatically changing demographics and differencesin workforce values

Through congruence/consistency between HR and strategy


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Importance of HR to Strategy (Contd.)

HR Contributions to Strategy: -

1. Environmental Scanning and Competitive Intelligence

2. Implementation of Resource Reallocation Decisions

3. Lead time for dealing with Labor Shortages


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WHAT ARE HR STRATEGIES?


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What are HR Strategies?

HR strategies set out what the organization intends to do about its

HRM policies and practices and how they should be integrated

with the business strategy and with each other

As per Dyer and Reeves: -

Internally consistent bundles of human resource practices

Richardson and Thompson: -

A strategy whether it is an HR strategy or any other kind of

management strategy, must have two key elements: there must be

strategic objectives (i.e. things the strategy is supposed toachieve), and there must be a plan of action (i.e. the means by

which it is proposed that the objectives will be met)


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TYPES OF HR STRATEGIES


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Types: -

Overall HR Strategies

These describe the general intentions of the organization about howpeople should be managed and developed and what steps should betaken to ensure that the organization can attract and retain the

people it needs and ensure so far as possible that employees arecommitted, motivated and engaged.

Categories: -

An emergent, evolutionary and possibly unarticulated understanding ofthe required approach to HRM. This will be influenced by the BusinessStrategy, organizations life-cycle and the views, experiences and

management style of the chief executive, manager, HR Head, etc. Broad brush statements of aims and purpose that set the scene for more

specific targets. These are concerned with overall organizationaleffectiveness


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Types: -

Overall HR Strategies

Categories (Contd.): -

Specific plans to create bundles of HR practices and develop a coherent

HR system Overall approaches to HRM: -

High Performance Management

High-Involvement Management

High-Commitment Management


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Types: -

Specific HR Strategies

Human capital management

High performance management

CSR OD

Knowledge management

Talent management

Resourcing

Learning and development Reward

Engagement

Employee Relations


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CRITERIA FOR AN EFFECTIVE HR STRATEGY


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Criteria for an effective HR Strategy

Would satisfy business needs

Would be founded on detailed analysis

Can be turnable into actionable programmes

Is coherent and integrated

Takes into account the needs of line managers and employees

generally as well as those of the organization and its other

stakeholders