HRM

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 organization's behavior over time
(descriptive meaning of strategy)
It is a perspective : a fundamental way of doing things (mission)
 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
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.
How do I apply effective
change management in a
company who is new to
and resisting project
management principles?
• You need to provide the knowledge to key people,
ask for trainings, focus on the outcomes, and
communicate to them about it, and how it relates
to improving their work, but with that, you cannot
cancel out all the resistance, but you should have
some supporters to help you, especially in future
projects.
 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):
o Recruitment & selection
o Training and development
o Reward management
o Performance management
 High-involvement
management
• Commitment and 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 differentials
– Reliance on teams: dissemination, structuring work, problem solving
– Intrinsic satisfaction via job design
– Merit pay and profit sharing
– Involvement in quality management
 Specific HR strategies
• High-performance management
• Corporate social responsibility
• Organization development
• Engagement
• Knowledge management
• Resourcing
• Talent management
• Learning and development
• Rewarding
• Employee relations