Formulation of Human Resource Strategy

1. Formulation of Functional Strategy: Human Resources
Prof.PrashantMehta
NationalLawUniversity,Jodhpur

2. Formulation of Functional Strategy: HRM
Introduction
Marketing Strategy Formulation
Financial Strategy Formulation
Production Strategy Formulation
Logistics Strategy Formulation
Research and Development Strategy Formulation
Human Resource Strategy Formulation

3. Human ResourceStrategy Formulation
• Assessing the Staffing Needs
• Motivating the employees and Managers
• Developing Performance Incentives (Link Performance to Pay)
• Empowering the managers and employees
• Linking company and Personal benefits is responsibility of HR manager.
• Establishing and Administering Employee Stock Option Plan, Effective
Childcare policy, providing leadership to balance work life and family etc.
• Failure of HR strategies is attributed to three causes:
• Disruption of Social and Political Structures
• Failure to match individual’s aptitude with implementation tasks
• Inadequate top management support for implementation activities.

4. Human ResourceStrategy Formulation
• Strategy implementation poses threats to many employees in the organization.
• New Power and Status relationships are anticipated and realized.
• New formal and informal group values, beliefs, and priorities may be largely unknown.
• Resistance behaviour by employees as their roles, prerogatives, and power in the firm
change.
• Disruption of social and political structures must be managed during strategy
implementation.
• Commonly used methods that match managers with strategies to be implemented
include transferring mangers, developing leadership workshops, offering career
development activities, promotions, job enlargement, and job enrichment.
• Managers can built support-implementation efforts by giving few orders, announcing
few decisions, depending heavily on informal questioning, and seeking to probe and
clarify until the consensus emerges. Reward generously and Visibly.

5. Human ResourceStrategy
• HR strategy implementation is critical and best method of preventing and
overcoming HR problems is to actively involve managers and employees in
the whole process. This approach builds understanding, trust, commitment,
and ownership, and reduces resentment and hostility making organizations
more competitive.
• Align external treats with internal strengths.
• Managing HR is key to success.
• An organizations recruitment, selection, training, performance appraisal,
and compensation practices have a strong influence on employee
competence.

6. Human ResourceStrategy
• Recruitment and Selection
• Identify, attract, and select most competent applicants.
• Training
• Employees will be more competent if employees are well trained to perform their
jobs properly.
• Appraisal of Performance
• Deficiency once identified can be solved through Counseling, Coaching, and
Training.
• Compensation
• Attractive compensation more than competitors increase the competency of work
force. Helps attract and Retain more capable people.

7. Strategy and Human ResourceManagement
• HR strategy should reflect and Support the Corporate Strategy.
• Good HR strategy involves selecting best talent, retaining, motivating, and
empowering employees to perform well in direction of corporate objectives.
• Strategic HR helps in improving business performance, develops
organizational culture, fosters innovation, and flexibility.
• HR strategic focus should be given on following points:
• Pre selection practice including HR Planning and Job Analysis
• Recruitment and Selection based on mission and purpose of the organization.
• Post Selection Practice to maintain and improve job performance levels, Training
and development, performance appraisal, compensation, and motivation should
be based on corporate strategy of the organization.

8. StrategicRole of Human ResourceManagement
• Providing Purposeful Direction to people within the organization right from
the beginning. Actions of each person must be consistent with objectives
defined.
• Creating Competitive Atmosphere through COST LEADERSHIP which means
the firms aims to become low cost leader in the industry.
• Creating Competitive Atmosphere through DIFFERENTIATION which means
the firms aims to become unique in the industry in terms of dimension that
are highly valued by the customers.
• Facilitation of Change– HR is more concerned with substance rather than
form, accomplishments rather than activities, and practice rather than
theory. Hr has to devote more time to promote changes than to maintain
the status quo.

9. StrategicRole of Human ResourceManagement
• Diversion of Workforce – Workforce diversity is challenge and is observed in
terms of male – female workers, young – old workers, educated – uneducated
workers, unskilled – unprofessional workers etc. Besides this caste, religion,
and nationalities also play a key role where sometimes money is no longer a
motivating factor rather it is high degree of participation and non financial
incentives.
• Empowerment of HR – It involves giving more power to those who at present
have little control what they do and little ability to influence the decisions
being made around them.

10. StrategicRole of Human ResourceManagement
• Building Core Competency – Core competency is USP of firm and it can be in
form of HR, Marketing capability or technology capability. Core competency
generates competitive advantage and most business which do not have
competitive character are divested thus leveraging the limited resources of
the firm. It needs creative, courageous, and dynamic leadership having faith in
organization’s HR.
• Development of Works Ethics and Culture – Greater effort is needed to
achieve cohesiveness because workers will have transient commitment to
groups. Flexi time, Intrinsic Motivation, Vibrant work culture, developing
atmosphere of trust among people, creative ideas etc will go a long way in
sustaining work ethics and culture.

11. Human ResourcesStrategies
• TALENT ACQUISITION
• Recruit from Outside v. Internal Development
• Require experienced, highly-skilled workers v. “we will train you”
• Offer “top dollar” wages & benefits v. mentoring and a career
• WORK ARRANGEMENTS
• Individual Jobs v. Team Positions
• Narrowly-defined jobs v. Positions with discretion and autonomy
• On-premises Work v. Telecommuting Options
• MOTIVATION & APPRAISAL
• Extrinsic v. Intrinsic Reward Systems
• Assessment for development v. assessment for rewards
• Incentives for ideas & originality v. incentives for conformity?

12. StrategiesTo Avoid: Dumb Strategies
FOLLOW THE LEADER - We can do that too…but maybe it’s not worth copying
HIT ANOTHER HOME RUN - A pioneer company looking to get lucky again
ARMS RACE - Battles which increase costs and decrease revenues
DO EVERYTHING - Offering something for everyone…trying to please everyone
LOSING HAND - Pouring $$ down the knothole…investment because of prior
commitments
NONE OF THESE STRATEGIES WILL CREATE A SUSTAINABLE COMPETITIVE
ADVANTAGE FOR THE FIRM