Formulating and implementing HR strategies

There is an ever-present risk that the concept of strategic HRM can become
somewhat nebulous – nice to have but hard to realize. The danger of creating a
rhetoric/reality gap is acute. Broad and often bland statements of strategic intent
can be readily produced. What is much more difficult is to turn them into realistic
plans, which are then implemented effectively. Strategic HRM is more about
getting things done than thinking about them. It leads to the formulation of HR
strategies, which first define what an organization intends to do in order to attain
defined goals in overall human resource management policy and in particular areas
of HR process and practice, and second set out how they will be implemented.
Difficult though it may be, a strategic approach is desirable in order to give a sense
of direction and purpose and as a basis for the development of relevant and
coherent HR policies and practices.
Guidance on formulating and implementing HR strategies
 
-fundamental process considerations;

-characteristics of the process;

-developing HR strategies;

-setting out HR strategies;

-conducting a strategic review;

-implementing HR strategies.

CONDUCTING A STRATEGIC REVIEW

Although HR strategies can emerge and evolve under the influence of events, there
is much to be said for adopting a systematic approach to their formulation. This
can take the form of a strategic review, which assesses strategy requirements in the
light of an analysis of present and future business and people needs. Such a review
provides answers to three basic questions:

1. Where are we now?

2. Where do we want to be in one, two or three years’ time?
3. How are we going to get there?
The stages of a strategic review are illustrated in Figure 5.3.
The following is an example of a strategic review as carried out in a large not-for-
profit organization.

HR strategic review

Background
 
A major strategic review of the business has taken place and a new Chief
Executive and other members of the senior management team have been appointed
within the last two years. In essence, the review led to a business strategy that:

- redefined the purpose of the organization;

- emphasized that the core purpose will continue to be given absolute priority;
- set out the need to secure the future of activities outside its core purpose; and
importantly
- made proposals designed to shape and secure the financial future.

HR issues emerging from the strategic review

 
The key HR issues emerging from the strategic review are that:

- it will lead to the transformation of the organization;

- this involves major cultural changes, for example:
   * some change in the focus to activities other than the core activity;
   * a move away from a paternalistic, command-and-control organization;
   * introducing processes that enable the organization to operate more flexibly;
   * clarifying expectations but simultaneously gaining commitment to managing
and carrying out activities on the basis of increased selfregulation and decision
making at an operational level rather than pressures or  instructions from above;
    * more emphasis on managerial as distinct from technical skills for managers;
    * greater concentration on the financial requirement to balance income and
expenditure while continuing to develop and improve service delivery;
- a significant change in the regional organization and the roles of the management
team and regional controllers/managers is taking place; this means that new skills
will have to be used that some existing managers may not possess; 
- from a human resource planning viewpoint, decisions will have to be made on the
capabilities required in the future at managerial and other levels, and these may
involve establishing policies for recruiting new managerial talent from outside the
organization rather than relying on promotion from within; l difficult decisions
may have to be made on retaining some existing managers in their posts who lack
the required skills, and there may be a requirement to reduce staff numbers in the
future;
- more positively, management development and career planning activities will
need to be introduced that reflect the changing culture and structure of the
organization and the different roles managers and others will be expected to play.

The provision of the core HR services such as recruitment and training is not an
issue.

IMPLEMENTING HR STRATEGIES

Because strategies tend to be expressed as abstractions, they must be translated into

programmes with clearly stated objectives and deliverables. But getting strategies
into action is not easy. The term ‘strategic HRM’ has been devalued in some
quarters, sometimes to mean no more than a few generalized ideas about HR
policies and at other times to describe a short-term plan, for example to increase
the retention rate of graduates. It must be emphasized that HR strategies are not
just programmes, policies, or plans concerning HR issues that the HR department
happens to feel are important. Piecemeal initiatives do not constitute strategy.