Transcript HR STRATEGIES

HR STRATEGIES
Concept of strategy
• The direction and scope of an organization
over the long term.
• It should match the resources of the
organization to its changing environment
(markets, customers and other stakeholders).
• Strategy determines the direction where the
organization is going
Concept of strategy
• It is a long term plan
• It is the pattern of the organizations’s behavior
over time (descriptive meaning of strategy)
• It is a perspective : a fundamental way of
doing things (mission)
• A ploy: a specific manoeuvre to outwit a
competitor
What gives the firm competitive
advantage?
• Unique
(differentiation, focus)
• Hard to copy
• Sustainable
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The concept of strategic management
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Vision and mission
Strategic goals
Strategic plans
Implementing the strategy
(business strategy via functional strategies)
• Managing strategy itself (goals, plans,
implementation)
Strategic fit
• Capabilities and resources to the environment
(opportunities and threats)
• The business (or corporate) strategy to
functional strategies and strategies of business
units
• Every part of the strategy area should be
mutually supportive
HR strategies (as a part of HRM)
What are HR strategies?
• 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 with each other. Key elements:
– Strategic objectives
– Plan of action
• „There is no great strategy only great
execution” (Gratton 2000)
A good HR strategy:
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satisfy business needs
is founded on detailed analysis
can be turned into actionable programmes
is coherent and integrated
takes account of the needs of line managers,
employees and other stakeholders
An HR strategy can be
• Overarching / overall / general
• Specific: focuses on specific areas
– Talent management
– Development
– Reward management
–…
Overall HR strategies
• …describe the general intentions of the
organization about how people should be
managed and developed and what steps
should be taken to ensure that the
organization can attract and retain the people
it needs; and ensure that employees are
committed, motivated, engaged.
Categories of overall strategies
• Evolutionary approach to HRM.
• Broad-bush statements of aims and purpose that
set the scene for more specific strategies.
• Specific and articulated plans to create sets of HR
practices and develop a coherent HR system.
• Conscious introduction of overall approaches to
HRM such as:
– High-performance management
– High-involvement management
– High-commitment management
High-performance management
• Aims to effect organizational performance
through people.
• HRM areas involved
(HPWS – high performance work systems):
– Recruitment & selection
– Training and development
– Reward management
– Performance management
High-involvement management
• Commitment ad involvement opposed to
bureaucratic control.
• Treating employees as partners. Providing
opportunity for the employee to control and
understand their work.
• Communication for mutual understanding.
High-commitment management
• A form of management aimed at eliciting a commitment so
that behavior is primarily self-regulated rather than
controlled. Organizational relations based on trust.
• Approaches to achieve commitment:
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Career ladders and emphasis on trainability
Functional flexibility
Reduction of hierarchy, ending of status differentails
Reliance on teams: dissemination, structuring work, problem
solving
Intrinsic satisfaction via job design
Permanent employment with temporary workers
Merit pay and profit sharing
Involvement in quality management
Specific HR strategies
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HC management
High-performance management
Corporate social responsibility
Organization development
Engagement
Knowledge management
Resourcing
Talent management
Learning and development
Rewarding
Employee relations