Human Resource Strategy

an elaborate and systematic plan of action developed by a human resource

department.

HRM Strategic Plan

the major objectives the organization wants to achieve.

HR Plan
specific activities carried out to achieve the strategic plan.

6 Dynamic External Environment of HRM

1. Labor Market Changes
2. Society
3. Economic
4. Technology
5. Shareholders
6. Customers

5 Main areas of HR (ULRICH MODEL)

1. Strategic Partner
2. Change Agent
3. Administrative expert and functional expert
4. Human Capital Developer
5. Employee Advocate

Life Cycle Stage

STAFFING
Introduction: Attract best technical and professional talent.
Growth: Recruit adequate numbers and mix of qualifying workers. Plan management
succession. Manage rapid internal labor market movements.
Maturity: Encourage sufficient turnover to minimize layoffs and provide new
openings. Encourage mobility as reorganizations shift jobs around.
Decline: Plan and implement workforce reductions and reallocations; downsizing and
outplacement may occur during this stage.

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Life Cycle Stages
COMPENSATION
Introduction: Meet or exceed labor market rates to attract needed talent.
Growth: Meet external market but consider internal equity effects. Establish formal
compensation structures.
Maturity: Control compensation costs.
Decline: Implement tighter cost control.

Life Cycle Stages

TRAINING/DEVELOPMENT
Introduction: Define future skill requirements and begin establishing career
ladders.
Growth: Mold effective management team through management development and
organizational development.
Maturity: Maintain flexibility and skills of an aging workforce.
Decline: Implement retraining and career consulting services.

Life Cycle Stages

LABOR/EMPLOYEE RELATIONS
Introduction: Set basic employee-relations philosophy of organization.
Growth: Maintain labor peace, employee motivation, and morale.
Maturity: Control labor costs and maintain labor peace. Improve productivity.
Decline: Improve productivity and achieve flexibility in work rules. Negotiate job
security and employment-adjustment policies

SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

Personnel Management
an administrative function of an organization that exists to provide the personnel
needed for organizational activities and to manage the general employee-employer
relationship.

6 Parts of HRM Plan

1. Determine human resources needs.
2. Determine recruiting strategy
3. Select Employees
4. Develop Training
5. Determine compensation
6. Appraise Performance

Head Hunter
person who specializes in matching jobs with people, and they usually work only
with high level positions. (Compensation = % of hiree's first annual salary)

Performance Appraisal
a method by which job performance is measured

4 Types of Performance Appraisal

1. Employee Appraisal
2. Performance Review
3. 360 Review
4. Career Development Review

5 Reasons a Strategic Plan isn't Implemented

1. The plan wasn't developed so that it could be useful
2. The plan wasn't communicated with management and others in the HRM department.
3. The plan did not meet the budget guidelines of the organization.
4. The plan did not match the strategic outcomes of the organization.
5. There was lack of knowledge on how to actually implement it.