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Importance of human resources strategy

Paper Type: Free Essay Subject: Business
Wordcount: 2560 words Published: 1st Jan 2015

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After the revolution of personnel management into human resources management now we are open to new concept “human resources strategy”. (Thomas, 1996). Today Human beings are the most important recourse for an organization and the existents of an organization are exclusively dependable on employees. Today the most of problems and challenges in an organization are all human related. Hr Manger is more concern with employee thoughts, development, set values, expectations, motivation, and psychology wellbeing. Repeated and frequent development in global markets and technology make it more difficult for higher managers to develop HR strategies. To meet the competitive requirement of market manger should acquire conceptual strategic skills and practices. That why HR manager should adopt up to date training techniques so that low level employee’s productivity can be elevate. Implementation of advance technology at workplace enable employee to defeat up rising complications from upcoming technology. Demographic resemblance is in social context is important in which individual interacts (Riordan & Shore, 1997).

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Another challenge face by HR manger is demographic diversity within the organization. Research indicates that the diversity within a workgroup have a greater impact on employee turnover and performance. Whenever employees have to take mutual decision, effect of diversity is very visible at that time on their cognitive output. Mangers have to understand the reasons why diversity builds up in workgroup and what are their outcomes. So by downsizing these reason mangers can obtain maximum productivity from the employees. (Pelled, 1996).

HR manager have to perform various role in an organization. They are responsible of organization wellness and employee productivity. Creating cooperative and positive environment within organization is the duty of HR manger because employees in an organization come with different and individual goals, which can harm the productivity of organization. Employee should perform their jobs like a team; this can only be achieved when they share the same goal. Common goal within employees beneficial for reducing conflict at workplace and creates harmony in organization. To achieve this executives have to establish strategy and practices according to the capability of employees.

Importance & role of human resources practices

Through practices executives can articulate organization processes, function policies and culture. HR practices are supportive in increase employee productivity, performance and augmentation of organization learning. High performance human resource practices have a positive effect on organizational learning, which in turn has a positive influence on business performance. (LOPEZ, PEON, & ORDAS, 2005). If HR practices are not accordance to employee capability and expectations than HR management will fail to achieve desire goals which ultimately turn in low performance. In general if HRM Practices fail to fulfill the employee expectations then its impact on HRM performance is very visible. (Nath, 2010). To achieve the desire goals of HRM and improvement in performance in human resource practice. HR practice should be employee oriented “Do investment in employees”. In following areas RH practice can improve HRM performance.

Recruitment practices

Benefits and rewards

Employee performance evaluation

Employee feedback system

Constructive organizational culture

Employee loyalty

Employee productivity

Strategies for Changes

It is necessary for organization to change. According to change in global market, technology, trends, and customer test. To enhance the employee capability and capacity to retain maximum productivity organization should adopt the new tearing tool and tetchiness. In future survival for organization is only possible if they line up with changing economic environment nationally and internally. Organizations need comparative edge so they can attract more customers and provide better customer services. In this regard HR can educated and train employees to meet all these challenges.

Organization needs different way of thinking and innovative ideas which totally change the shape of organization. Executives are always ready to acquire such structure and police which totally change the organizational culture into learning, cooperative and constructive. HRM helpful in develop organizational in such way that it can change itself with accordance to any change in global market by remaining in local market. HRM should develop eloquent practices that employee should willingly and comfortably accept the change.

Developing a strategy

Whenever organization want to develop its strategy many questions rises such as: where we stand now? Where we what we want to achieve? How we get our goals? Who to decide which practices is transformational? Twenty- five years of progress enables us to look at HR strategy and planning to see where’s it’s been, where it’s at and where it may be going. (Gubman, 2004)

First step is run an analysis to determine where organization stands and what HR related problems are. This will resolve the issue regarding what future improvement required and what is upcoming market challenges. After organization know what future challenges are and their current position, now planning can be made for enhancement of performance and meet challenges. To develop the strategic framework two analyses tools are very helpful.

SWOT (strengths, weaknesses, oppor-tunities, threats)

PESTLIED(political, economic, social, technological, legal, international, environmental and demographic changes)

After strategic framework is develop now it’s time to divide the responsibility into human resources. Responsibility should be broken down into four dimensions.





RHM have to allocate the responsibility and functions of each dimension according to their role and importance in achieving goals. Coordination of actions within organization by developing culture for employee and it is back by a system to achieve. HR is the important factor of any organization and the strong HR system of any organization is considered as a competitive edge in the market. Organization functions and system should coordinate with HR strategy for better performance and for the success of strategy.

Due to rapid change in internal and external environment, organizations are considering their human resources as a distinctive asset which can provide them competitive advantage. HR strategy is a perfect tool for enhancing employee capabilities with accordance to organizational strategy. For strategic plans it is important that management of the human resources should be aliens with management of the organization. (Seyedjavadin & Zadeh, 2009)

Strategies to improve the performance of the organization

Functional strategies are base on collection of decision rules in each functional area of organization. Capability strategies base on creating organizational culture and testing new ideas. Result strategies are base on performance measures and reduction in cost.

Human Resource strategy and planning has shown it importance and significant during last 25 years.

This growth can be track down development from 1980s functional strategies turn in to 1980’s capabilities strategies in the 1990’s to results strategies today. (Gubman, 2004).

Functional strategies

Functional strategies base on

HR processes that typically identical with HR needs

Training plan

Compensation policy

Benefit tactic

Focus on particular HR plan

Focus on meticulous organizational issue

Capability strategies

Capability strategies base on

Organizational culture



Establishment of business goals

Scheduling to achieve goals

Experiment of new ideas

Results strategies

Result strategies base on

HRM effect on organization

Compliance with overall organization strategies

Recruiting and hiring, according to need and right time

More focus on reducing cost

Development of specialize team

Performance measures

Reforms are needed in HR strategies

Continually change in market technology and internal environment HR strategies need reforms.

Reforms assurance that organization goal can be achieve. Coping with accordance due to change in factor is necessary for increase productivity or maintaining the productivity level the purpose of reforms. Following reforms can be done in HR strategies.

HRM should analysis the problem reason outcome and solutions.

HRM must measure polices outcome.

HRM should develop such practices which create value in the organization.

HRM motivate employees to achieve organizational.

HRM practices should be allied with HR strategy.

HRM should become victor in indentify employee needs and development.

HRM main concern should be staff development.

HRM should acquire such skill so it can identify the change in political and economic in national as well international environment and forecast its impact on productivity.

HRM should plan effective training programs.

RH practices

On the base of above argument it has been establish how HR practices is important for achieving strategy and increase production. Through following practices organization can achieve HR strategy.

Recruit excellent staff

Accurate job description according to role duties and responsibilities.

Right selection criteria and mechanisms

Hiring on right time

Benefits and compensation

Equally treatment for every one

Suitable from the market

Employee performance

Organizational is goal employee goal

Feedback and formal appraisal

job descriptions

stuff training and development

Positive workplace culture

Value define

Flexible culture

Excess of employee to information (polices, plan and guidelines )

Recognition and reward systems

Management of major change procedures

Monitoring staff satisfaction

Empowerment of employee

Empowerment in decision making

Opinion in planning

Q No 2 Internal and external environment aligned with business and individual employee’s objectives has got focused towards performance but not losing sight of Feminine managerial style. To achieve these strategies, various resource based theories needs alignment with implication of converging economy. Analyze aforesaid statement in global dimension in order to synchronize standard resource based theories in SHR scenario.

Internal and external environment of business

Any organization working in some environment can effect by internal and external factors. The component of internal and external environment contains technology physical social political and economic. These five elements of environment effect HR functions. Internal factors effect on HR functions performance and as well on employees. The environment outside the organization is called external environment its effect the employee attitude and behavior. The external environment cannot be control.

Physical Elements

Physical element includes the physical characteristic of the area where organizations exist. Physical sounding can be helpful or can create problems.


The economy has a significant impact on the viability of a corporate strategy. I deprived economic conditions are not suitable for investment.


Political are also important for organization. Political factors can be restrictive or beneficial.


Social responsibility obligation to take actions that protects and improves both the welfare of society


Change in technology reshaping the workplace. It has positive and negative effect on employees.

Feminine managerial approach

The increasing number of women in leadership positions within the organization is primarily changing the environment and culture of workplace and feminine values start making it position.

Man manager attitude such as not accepting the loss their monopoly at workplace and inflexibly convert the workplace environment more complex. On other female style is more flexible and they have more ability to resolve the conflict male leaders action and managerial style are more result oriented while females act more like a trainer to their employees. Female are matter in communication beasucse they use their skills as compare to male that why female are more better team leaders. When it comes to communication, team leader and solving the conflict female are better choice as compare to male manager. Male manager techniques are base on that they have to prove.

Some employee like male and other like female management style.

Resource base theory and combativeness strategy

Resource base view focuses on that organization by enhancing its internal capabilities formulate a strategy. This gives comparative advantage to organization in the market as well in the industries. By enhancing its internal resources organization creates external completive advantage and sometime this turn into new market and value add to customer.

Resource base theory and capability strategy

Production process outcome is performance and its input is capital and the skill of employee. Resources are tangible or intangible us as equipment finance and mangers. By synergistic combination of resource competitive advantages can be achieve. Capability is the capacity of individuals to perform task. Enhancement in the capability makes it more strong and hard for competitors to beat.

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Global dimension and resource base strategy

Strategy which is base on resource is very challenging goal. Every organization wants to satisfy their customers this prime objective. Resource-based strategy is adopted when organization want to create its own individuality in industry. This creates completeness between organization and its competitors. By providing better outputs with unique input resources make organization position strong.

Resource base strategy is adopted when organization decided to global or enhance its capability:

Acquisition and merger

Entering joint ventures

Considering Make versus Buy alternatives

Inflowing in new markets

Adopting technologies

Disaster is at hand.

More competitive advantage

New goal

Enhancing the resource to achieving organizational goals

There is strong link between HR practices and firm performance as resource based view. This has been establishing that resources can institute the source which can create competitive advantage. (Elliott)


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