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 organizationss
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
4

The concept of strategic

management

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:
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 selfregulated rather than controlled. Organizational
relations based on trust.
Approaches to achieve commitment:

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

HC management
High-performance management
Corporate social responsibility
Organization development
Engagement
Knowledge management
Resourcing
Talent management
Learning and development
Rewarding
Employee relations