Introduction of HR Strategy
What is an HR Strategy?
HR strategy is a roadmap for solving an organization’s
biggest challenges with people-centric solutions. This approach requires HR
input during policy creation and elevates the importance of recruitment, talent management, compensation, succession planning, and
corporate culture.
To address specific requirements within each department, HR may develop a strategy for a single job or a group of roles. HR strategies encourage employees to produce high-quality work in a way to improve business performance consequently.
In SHRM’s guide on Human Resource strategy, Patrick M. Wright outlines three crucial elements successful HR strategies focus on:
- Have
something. What skills,
competencies, and abilities can employees offer?
- Feel
something. What level of commitment,
engagement, and motivation do your people demonstrate?
- Do
something. How do your people
demonstrate productivity?
What is the Importance of HR Strategy?
Syncing
HR strategy with broader business initiatives is that it helps organizations
allocate budgets in ways that will maximize their return on investment (ROI). It
helps the organization to succeed in the competitive environment.
Another
importance of HR Strategy is that it identifies how departments need
to modify to hire employees who have the right mix of abilities and
experiences.
Strategic HR management can help your business in the following ways;
- Promoting employee productivity
and overall organizational success.
- Keeping employees focused on
organizational goals.
- Providing a sense of direction
to positively affect how work gets done.
- Addressing key issues in a
timely manner to avoid crises.
- Avoiding costly and disruptive
surprises that interfere with achieving goals.
- Providing a strategic focus to
guide training and development initiatives.
- Giving leaders tools to help
focus and implement their strategic initiatives.
What are the objectives of strategic HR Management?
The
main objective is to match the right candidate with the right job. Most organizations
do this when recruiting new employees or reviewing employee performance.
The followings are the objectives of SHRM.
- Execute business decisions effectively.
- Creating an edge to differentiate from its competitors.
- Achieve strategic plan for HRM.
- Utilization of resources with the help of efficient employees.
- Strategize the HR processes.
- Maintain a track of downfalls, risks, etc.
The followings are some additional goals of a strategic HR management system.
- Implementing a successful onboarding process.
- Adapting to the changes in processor technology and ensuring the workforce needed
- Managing and accessing the risk
- Enabling the organization to prepare
for cultural and generational shifts
The
value of an HR strategy can be evaluated in terms of what it contributes to an
organization's continuing development.
Many big companies have adopted and implemented HR strategies and have seen phenomenal results. One of the most successful examples is Samsung. The company has invested heavily in establishing three main HR strategies that they have named SVP (Share Samsung Value), SLP (Samsung Leader Program), and SGP (Samsung Global Talent Program).
What are the Principles of Strategic HRM?
Principles of Comprehensiveness: HRM should be closely
matched to business objectives,
Principles of Coherence:
Allocation and activities of HR integrated into a meaningful whole.
Principle of Control: Effective organizations require a
control system for cohesion and direction.
Principle of Communication: Strategies understood and
accepted by all employees, there should be an open culture with no barriers.
Principle of Commitment: Employees are motivated to achieve organizational goals.
Principle of Change: Continuous development and
improvement are essential for the survival of the organization.
Principle of Competence: Organizations are competent in
achieving their objectives dependent on individual competence.
Principle of Creativity: Competitive advantage comes from
unique strategies.
Principle of Creditability: Staff trust top management and
believe in their strategies.
Conclusion
The importance of HR strategy can’t be underestimated. A properly executed HR strategy ensures that the organization achieves its short and long-term goals.
References
planning%20and%20corporate%20culture [Accessed on 13.04.2023].
Bob (2023) – What is an HR Strategy [online] Available from https://www.hibob.com/hr-glossary/hr-strategy/ [Accessed on 12.04.2023].
e-Content: Social Science: Objectives of Strategic HR Management [online] Available from https://youtu.be/9whbzQc91wU [Accessed 13 April 2023].
GreggU (Jan 15, 2019) – What is Human Resource Strategy? [online] Available from https://youtu.be/0Yd3QJvrFa0 [Accessed on 13.04.2023].
HR Trends (Sep 2, 2021) Introduction to Strategic Human Resource Management | Strategic HR Management [online] Available from https://www.youtube.com/watch?v=mNtRd4VMyWY [Accessed 13 April 2023].
SHRM-Benefits of HR Strategic Planning [online] Available fromhttps://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/practicingstrategichumanresources.aspx [Accessed 13 April 2023].
The HR Digest -Anna Verasai (5 April 2022) What is the importance of HR Strategy - [Online] Available from https://www.thehrdigest.com/what-is-the-importance-of-hr-strategy/ [Accessed 13 April 2023).
Hi great article, HR strategy is a roadmap for solving an organization's biggest challenges with available employees. so what do you see the biggest challenge that we are facing today?
ReplyDeleteThank you Kasun. Employers have faced endless human resource management challenges in recent years, and each year seems to bring more than the last. This year is no different, with the continuation of many HR challenges from last year and a few new ones.
DeleteAs I see the biggest challenge we are facing today is employee retention. Due to the current economic crisis, most organizations are struggling on retaining their valuable and significant employee in the organization. Migration due to the economic crisis and taxes, heavy workload, lack of work-life balance, inequality or unfairness of pay among the employees, and lack of career development and recognition are some of the reasons for employee turnover. You can refer to my "HR strategies for employee retention" article for more info.
Your post was well-written and informative, providing a clear understanding of what HR strategy is and its importance to organizational success.
ReplyDeleteIt might be helpful to provide guidance on how to develop an effective HR strategy. This could include discussing the key components of an HR strategy, how to align HR strategy with business strategy, and how to measure the effectiveness of HR strategy implementation. Such information could help readers who are in managerial or HR positions to better understand how to develop and implement successful HR strategies in their organizations. Hope to see some of those in your coming blogs!
Thank you so much for your comment. Yes, I have written a few articles with related to HR Strategic plans, HR Strategies for employee retention and recognition etc. Kindly go through those articles as well and provide your valuable thoughts on them.
DeleteHR strategy is very crucial and it is evident by your article. As per Armstrong, HR strategy is a fundamental element for management objectives and poor HR strategy can easily lead to management failures (Armstrong 2014).
ReplyDeleteAgreed your comment Rifak.
DeleteA Strategic HR plan allows making HR management decisions now, to support the organization's future direction. Strategic HR planning is also important from a budgetary point of view so that HR, can factor costs such as recruitment and training into your organization's operating budget.
Kindly visit my "HR Strategic Plan" article for a detail view.
HR strategy is a critical component of an organization's success. It helps organizations to align their HR practices with their business objectives, promote employee productivity, and achieve their short and long-term goals. The objectives of strategic HR management include executing business decisions effectively, creating an edge to differentiate from competitors, achieving strategic plans for HRM, utilizing resources with the help of efficient employees, and maintaining a track of downfalls and risks. The principles of strategic HRM, including coherence, control, communication, commitment, change, competence, creativity, and credibility, provide a framework for developing and implementing effective HR strategies. With HR strategies in place and implemented, organizations can achieve phenomenal results and continue to grow.
ReplyDeleteTotally agreed with you Thusantha.
DeleteWe cannot underestimate the SHRM. A properly executed HR strategy ensures that the organization achieves its short and long-term goals.