Wednesday, September 3, 2008

Understanding Human Resource Strategy

HR Practitioners are now being exposed to another new concept: “human resources strategy” due to the urgent needs to develop strategic approach rather than old-fashioned administration/personnel management. The article tries to provide general framework to enhance HR role towards business’ strategic partner.

Refer to Thomas (1996). HR strategy should be defined as “A co-coordinated set of actions aimed at integrating an organization’s culture, organization, people and systems”. It consists of HR mission statement, HR internal and external analysis, HR planning, Objectives/performance measurement, action plan, implementation, and review. Visual framework about HR strategy is presented below.

Thomas (1996)

The figure consists of several components:

  1. HR mission statement

The human resources function has to be clear as to where the organization is trying to go and then consider the implications for its own activities. It provides a basis for future measurement.

  1. HR analysis

HR analysis could be done through SWOT analysis to clarify the current status of the function, the organization and its external operating environment. Line managers should be co-opted into this process as it helps to generate new issues, understanding, ownership and commitment to any subsequent human resource activities.

  1. HR planning.

Planning HR is about developing framework to those dimensions: organization, systems, people, and culture. Four dimensions are translated into HR policies which is contains organization strategic choices. How those four dimensions affect HR policies is figured below.

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