Human Resource Strategy and Relationship with Human Resource Planning
Concept of strategy
The course of action to gain the set of goals for a company is known as strategy. It includes organizational goals, vision, objective,External threats and opportunities,Internal weakness and strength, Strategies selection,Strategies implementation.The strategy of individual is related to the reliability, consistency, well informed, empowerment and appropriate use of power. This factor is observed by the Human Resource Management in the organization. People should not have the wrong idea that strategy is made only at the top level of organization, it involved in all level of organization. Application level such as day to day, execution of tasks and decision making for flexibility of company differ. Hence, the people role must be strategically planned in the organization.
Nature of strategic planning
There is three level of strategic decision-making process where there is high involvement of managers.The first level includes co-operating strategy where the business portfolio are identified and all business are related to each other. For example, Pepsi companies include Pepsi Pizza Hut etc. Similarly, next is business level also known as competitive level. It identifies the way of building a long-term strategic business position. Finally, the last level is the functional strategy that tells of taking action for achieving the competitive goals. As we know that the organization uses all three level of strategies. However, the strategic planning is used in the cooperative level of strategy.The strategic planning deals with two forces internal strength and weakness and external threat and opportunities. For example, the lotus software of IBM for networking programs was created by identifying the internet opportunities and threat; however specialist for network programming was lacked by IBM.
Competitive advantage on human resources strategy
The unique creation of advantages for increasing competition is called competitive advantages. It creates customer value effectively. The organization that performs better than the competitor can gain competitive advantages.
Cost leadership focuses on efficiency, flexibility and cost saving. It includes human resource strategy such as HR planning for a long run, developing employee skill. HR activities include training for building employee competency, promotion etc. A facility that is effectively utilized is cost leadership. Identifying the optimum size (and investment) allows firms to spread overhead costs, providing cost advantages. Cost leadership entails achieving the maximum value as defined by your customer. It requires examining each of HR decision in a relentless effort to identify cost while meeting the customer expectation of value in an effective way. A low-cost leadership does not consider low value or low quality.
Differentiation changes the view of the customer. It seeks unique dimension for the consumer. It focuses on Increment, Innovative technology, it forbids centralization through the use of decentralization. Differentiation is based on providing uniqueness for the customer. A firm’s opportunities for creating uniqueness are not located within a particular function or activity but can arise in virtually everything the firm does. Moreover, because most products include, some service and most services include some product, the opportunities for creating this uniqueness are limited only by imagination. For example, Disney land with music kingdom where people are attracted not only with riding but also with a dynamic vision and sound experience.
Differentiation strategies are as follows
- HR planning for short period
- Hire expertise
- Flexible employee tools and jobs for company
Similarly, activities such as staffing, training etc are involved.
Strategic Human Resource Management
Strategic Human Resource Management is created through competitive advantages. It refers to the way of formulating the company strategy through the acceptance of HR function as well as by implementing those strategies by recruiting, selection, training and appraising performance of personnel. The process of developing, recruiting and measuring rules, regulation, methods and so on that helps individual relate to the organization to align with a business goal is called strategic human resource management. In strategic HR management, the aim of the company is to provide higher customer service and generate profit through the highly committed workforce. There are three frameworks for Strategic Human Resource Management
- Developing capabilities,
- Enhancing employee satisfaction and
- Customer and employee satisfaction that contribute to business performance.
Relationship between human resource planning and strategic planning
No matter the size of organization whether big or small it utilizes three resources they are
- Technology for productivity and service
- Financial resources
- Expertise or specialist
The resources can be used only when the companies have its own vision and goals. Competitive organizations utilize both strategy and plan for business through the utilization of these resources.
The object that is used for productivity or delivery of service is known as technology. It is the most simplified device that is available for product design. The organizational human resources develop or evaluate the available technology that can be used to achieve company goals. The product and service requirement for organizations helps to evaluate the variety and amount of technology. The amount in the organization is calculated by the objective of business for sustaining in the long term position.Three area involved in technology resources where strategy is created are Obtaining maintaining and adapting is overlooked by technology. After amount is developed the location for purchasing technology is identified. When competition begins, product and service varied. So, there arise the role of technology where technology adapts or be flexible towards this product and services.
Capital, money and value identify finance that is used to pay for goods and services purchased. Money such as sales, loans, donations etc is included. Various area related to finance are developed. For example under what condition generating, managing the money and determining gain or losses. Huge capital is required to run the company which includes the cost for operation, purchasing, maintaining, adapting and so on.The money is required for making money. Businesses have to develop their finances for different objectives, ranges from survival in bad times to the success in good ones. The finance business can affect the ability for employing candidate, purchasing product, and acquiring licenses, expanding and developing. While finances cannot be considered as important as vision and a great product, they are essential to form stopping from bad stuff happen.
People with knowledge, skills, and abilities are expertise or specialist. It is the core resources of an organization because no organization can sustain, manage or adapt without manpower. Attracting the right employee, developing knowledge skill and retaining company employee are major human resources area. Successful organizations always have manpower that hell to achieve organizational goal.Human resource management is the long terms affair; therefore we consider it as a never ending process for managing people and their competencies. It is run till the termination of n company. The entire method is essential in human resources management must run continuously.Human resource planning develops the optimum utilization of resources. HRP defines the way for utilizing human and non-human resources so that the goals of the company can be achieved by aiming to utilize their resources efficiently that calls the HR department for formulating required goals and procedure.
Strategic planning without these resources may result from the failure of the organization because they are relegated with one another. The rotation ensures that resources be influenced on the planning of other resources. The relations should be understood by every member of the organization. The figure shows that every resource has the link between one another. The management can begin with any resources but requirement should be matched with one another. Alignment of technology enforces to the efficiency of the organization.
Dessler, Gary.a Framework for Human Resource Management.Florida: Pearson Education Asia, 2002.
- The unique creation of advantages for increasing competition is called competitive advantages. It creates customer value effectively.
- The course of action to gain the set of goals for a company is known as strategy.
- The process of developing, recruiting and measuring rules, regulation, methods and so on that helps individual relate to the organization to align with the business goal is called strategic human resource management.
- People with knowledge, skills and abilities are expertise or specialist. It is the core resources of an organization because no organization can sustain, manage or adapt without manpower.
- Huge capital is required to run the company which includes cost for operation, purchasing, maintaining, adapting and so on.
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