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Links between Strategy and Individual Resources

Through their management strategy, the firms use the human resources as the way to become more competitive. The HR is at parallel with the strategy by the priorities of the company to attain different goals.

The human resources permit to build up flexibility into the organization part of a competitive environment. Besides that, the management of men and women is vital in order to keep the data and techniques up.

In fact, HRM has a lot to do with the organizational strategy. To attain the goal, a good coordination is needed to be efficient. Even as will get in "Johnson and Scholes, 2002: 16, the understanding of a strategic position of a business is relates to management's understanding in terms of the impact of the external environment, the organization's proper capability and the affect and expectation of its key stakeholders (Strategic human tool management by Mike Millmore, Philip Lewis).

An analysis of the business environment must be done to evaluate the true situation and the one the business want to attain in a long term. The human resources manager will need a good knowledge of each sector and people working in the business. In fact, the way a business is designed to its environment will have an impact on its action. I fact, environmental determinism is more important in an evolutionary perspective strategy than in a classical approach (Poole, 1990). This means that environmental factors control the continuing future of an organization and recruiting strategy must matched up to the organizational strategy driven in order to achieve success.

This is kind of the hyperlink between the professionals and the first line employees. The strategy is elaborated by the most notable managers and then your HR has to determine the ultimate way to achieve it by looking and study what must be done regarding the personnel to do it in the best conditions as possible. The management of knowledge is one of the main parts of the work of the HR. They need to evaluate if every competence is link and upgrade enough to do the job in a most effective way. Therefore the HRM job is to consider the best performance in the organization.

For many organizations HRM is not actually tactical. The organizational strategy drives the possible and functional HRM style. HR strategies are molded by the business strategy. Since it is said in Purcell, 2001, " HRM will be enlightened by organizational strategy as well as helping to shape the nature of the strategy".

In organizations where there is high dedication or engagement, employees can have insight on tactical route and even strategy. In that case, HRM facilitates the employee suggestions, but the HRM model itself continues to be driven by the top-down requirements.

The practice of HRM needs to be included with the overall strategy to ensure effective use of men and women and provide greater results to the organization in conditions of ROI (profits on return) for each and every dollar allocated to them. Unless the HRM practice was created in this way, the organization stands to reduce from not utilizing people completely. This won't match well with the success of the organization.

HRM needs an organization to:

Engage in human being resource planning

Develop required staff competences

Ensure required role behavior

Promote employee motivation

This is the four activity model illustrated by Schuler and Jackson (1987).

In simple fact, the HR performs a big role in the strategy of an company since it helps motivates people at work. HRM function is to boost workers performances giving them better working conditions, make them feel owned by the company, providing them with advantages. The goal of organizational strategy is to increase shows to gain more productivity and this is the hyperlink.

KEY INITIATIVES FOR STRATEGY

To make predictions regarding human resources, it is not necessary to put into action techniques pretty much sophisticated, but instead to help managerial personnel to format new guidelines and support the new strategy established by the table of exec.

HR strategies are management answers to concrete questions. These forecasts provide opportunities and competitiveness through the management of people. Prediction in the field of human resources is called "strategic" when it can help the director to anticipate and proceed faster, even during intervals of frequent change.

The human resources strategy is the mean to complement the human resources management and tactical framework of business. All strategies have the same characteristics: they allow obtaining a standard direction, involving several programs, several functions of the business and must be propagate over more than a year.

But first the HR office has to look at a entire strategy.

The context of strategic human resources can be divided into three stages:

Evaluation of the Company's environment

Example of Development and Execution of the strategy

Controlling if the new strategy can match with staff welfare

The first step in a recruiting strategy is usually to be aware of business priorities, compare the HR strategy and business strategy and address gaps between current and desired situation. To specify the framework of human resources, the first initiative which is necessary is:

Conduct an Evaluation of the company's environment

That is to say understand the home based business strategy and think about the future HR strategy application with it:

Evaluate and spot the inner and external changes to the business's business which could impact its future performance

Collect all data that suggest future changes

Make an research of changes expected

Evaluate the expected changes,

Identify the framework of recruiting which can develop due to external factors

(Social, politics, legislative, demographic, economic, technological)

Identify the strengths and weaknesses of the business and its competitors

Compare the HR system with others (exercising benchmarking)

Analyze the future

Identify organizational requirements and very long-term competitiveness,

Think about the possible failures to prevent

Analyze all the possible sources of change in other words:

Internal Environment: Efficient efficiency (when possible with quantities), Usual functions, Resources, Business, Employees and managers

External Environment: Demographic, Legal, Politic, Technologic, International situation, Economy (of the country and all others countries related to the company)

All other organizations: Clients, Challengers, Distributors / Suppliers, Monetary associates, World of work, Unions

And then we can understand and formulate a technique for the business.

Example of Development and Execution of the Strategy

This is the level in which strategic direction is reviewed or identified, programs and activities planned and resources allocated. Then implementation of the strategy in which the managerial levers of change is put on ensure the desired economic results. There are lots of ways to do something because there are several academic institutions, several ways of thinking. Even as can read in Strategic Individual Learning resource Management (by Millmore, Lewis, Saunders, Thornhill and Morrow - Prentice Hall by Pearson Education - 2007 - Webpage 7), Mintzberg (1998) distinguished 4 approaches to strategy: traditional, evolutionary and systemic, and these methods will be more finely complete in 10 classes. More specifically, in strategy development, Purcell (2001) differentiates 3 classes: the design school, the procedure university and the settings college (read in Strategic Individuals Resource Management: A guide to action by Michael Armstrong - Kogan Web page - 3rd Edition 2006 - Web page 49-50). Let's focus on The Process College, which is considering how strategies are created.

There are 3 ways to build up and implement a technique in process college:

Integrated Process: Relating Emery & Gonin (Gerer les ressources humaines, Pages 245-246, PPUR presses Polytechniques, 2009) there are 4 steps to check out this structure:

First you have to "consider development as a mid-term investment", that is to say develop skills of employees alternatively than abusive recruitment.

Then you will need an analysis that will predict competences needs by creating sort of database of collective skills of employees, which is useful to create development pipelines for major staff categories (novices, new personnel, experts)

After you can verify the various services of the business on future "skill needs". It'll be useful to learn the "priority actions" in which you could carry out trainings

The previous step of this process is "implement a routine of individual development, based on regular evaluation of performance and profile of qualifications for the position occupied, a development agreement between the employee and his hierarchy, making sure an ongoing transfer and evaluation. A training plan and an individual training passport will enhance these instruments by providing the dimension "professional development". "

We can see that with this technique that the economic strategy is covering the whole regions of the organization, including HR. Indeed it is recognized as area of the environment evaluation. The business strategy in covering the complete company orientation and HR will just assess and implement what's ordered.

Parallel process: This technique involves the complete business strategy will be thought with the HR strategy and vice versa. This time around HR problems can affect business strategy and overall results.

To implement this type of action you need to really know what performance management is. Relating Robert Bacal in Performance Management (McGraw-Hill Professional, 1999 - Site 3) it is an "ongoing communication process, performed in collaboration, between an employee and his / her immediate supervisor that involves establishing clear targets and understanding about: The requirements job functions the worker is likely to do

How the employee's job plays a part in the goals of the organization

What performing well means in cement terms

How worker and supervisors will continue to work together to preserve, improve, or build on existing employee performance"

The parallel process implies that you must match the organization with all skills and with the performance management.

Separate process: Here the HR strategy is developed as a separate functional plan. The prior economic strategies are first analyzed. As Michael Armstrong says in Tactical human tool management: helpful information to action (Kogan Page, 1st Release 2000 - Internet pages 51-52), the separate process is "the most common approach, [where] a definite HR plan is developed. It is both prepared and considered individually from the entire business plan. It might be created concurrently with strategic planning, before (and an input to), or following (to examine its implications). [] Since the assessment is outside the proper planning process, awareness of business strategy is determined by a review of the current and previous business strategies. The value of the HR strategy is therefore governed by the sufficiency (or insufficiency) of the business-related data. This approach perpetuates the notion of HR as a staff-driven, functionally specialist matter. "

There we concentrate on HR to evaluate the environment (at the personnel, company or economic entity level). The professional plank delegates its responsibilities. That's the reason this system is most often used, especially in large companies.

Controlling if the new strategy can match with employee welfare

To sum up, the human resources strategies can:

Develop a far more flexible, more versatile in a competitive environment

Gains and support competitiveness in the management of individuals.

They begin from an economic methodology (customers, products, rivals) to progressively achieve specific actions and particular programs in conditions of human resources (training, recruitment, compensation, etc. . . . ). The effect is a strategy that displays the priorities needed for action.

But we can not lose look of the welfare of employees in these strategies. Aligning staff targets with the strategy can be possible by keeping in mind some important elements:

Managers effect the objectives of employees

Communicate on technique to build prospects, or requests for changes

Translate strategies into functional objectives

Change the culture of the business to strengthen the implementation of the strategy.

For example: If the new strategy is dependant on an activity of total quality management, employees, by any means levels, are involved in described performance requirements, based on analysis of customer needs. The client may be external or may be other individuals or entities of the company. Through this technique, the performance focuses on are not imposed by management, but molded by a process of continuous evaluation, feedback, redefinition and ongoing improvement. These targets must be dropped at the whole company level, service, and each employee and needs to be expressed in terms of results contributing to a higher performance of the company. In this way, everyone see its contribution and can be satisfied with its job. Furthermore it reinforces teamwork and avoids the divisions between hierarchical levels. You may create an entity where every person works hard for the same goal, with the same heart and sharing the same culture. Culture is a robust weapon of competitiveness (q. v. Disney, Apple, Coca-Cola). It can also be an obstacle when it's not based on the strategy. The management problem is to shape the culture, strengthen and put into perspective with the required strategy.

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