HR STRATEGIES Concept of strategy The direction and

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 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 self-regulated 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