Chapter 1 Human Resource Management
HRM involves the acquisition, development, reward and motivation, maintenance and departure of anorganisation's human resources. To do this successfully HRM must do all of the following:
•Human resource planning
•Human resource development
Career planning and development
• Industrial relations
•Health and safety programs
What is strategy?
'Strategy defines the direction in which an organisation intends to move and establishes the framework for action through which it intends to get there.' The purpose of strategy ...view middle of the document...
The organisation's mission provides the context and direction for the formulationand evaluation of HRM objectives, strategies and action plans. The mission statement identifies why theorganisation exists and what its focus is.
Environmental analysis -
This includes External environmental analysis which identifies strategic oppor-tunities and threats, and analysis of theinternal environment which aims to identify the organisation'sstrengths and weaknesses.
Strategy selection -
This involves generating a series of strategic options based on the organisation'sobjectives and a comparison of its internal strengths and weaknesses and its external opportunities andthreats. Alternative strategies are evaluated to identify which one will best achieve the organisation's objec-tives. The aim is to select the strategy that gives the best alignment or fit between the external and internalenvironments.
Strategy implementation -
It is critical for successful strategy implementation that employees accept thechanges demanded by the new or revised strategies. Similarly, an organisation's structure must be designed toenhance the implementation of a strategy.
Performance evaluation -
Management must decide how to monitor and measure performance so theeffectiveness of a strategy can be evaluated. This may involve a
management by objectives
(MBO) approach- setting performance objectives, measuring performance, comparing actual performance with targeted performance and taking any corrective action required.
Types of strategies
An organisation can expand either through internally generated growth or through acquisitions,mergers or joint venture. Growth may be concentrated on building existing strengths or on moving into newor unrelated areas of business.
The emphasis of retrenchment is on performance improvement by increasing productivity,cost cutting, downsizing, re-engineering, and selling or shutting down business operations.
This is a neutral strategy that attempts to maintain the status quo by pursuing established businessobjectives; and is often used when an organisation is performing well in a low-risk environment or when anorganisation needs to consolidate after a period of rapid growth or restructuring.
An organisation can pursue more than one strategy at the same time.
Different types of organisational strategies produce a need for particular HR strategies. It is important thatHR strategies accurately reflect an organisation's master business strategy to ensure an appropriate fit whichenables HR action plans to support the master strategy and the direction of the organisation.
Need for HR strategy
Increasing pressures have forced managers to critically rethink their approaches to HR management. Merging business strategies and HRM activities has become a critical source of competitiveness for organisations.Managers consequently must adopt a strategic mindset or way of looking at and...