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HR Strategy: What is it? Why do we need it?

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The modern organization cannot survive without the innovative HR Management. The modern HR Management is always based on the underlying HR Strategy. However, many companies do not have the competitive …

The modern organization cannot survive without the innovative HR Management. The modern HR Management is always based on the underlying HR Strategy. However, many companies do not have the competitive strategy and they do not utilize the full potential of Human Resources in the organization.

What is the HR Strategy? Generally, it is not just a document. It is a true roadmap for HR. It allows to HR employees to find the right way and it gives the certainty to top executives that Human Resources is on the right track.

The HR Strategy is a basis for your success.

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  • 1. creative HRM HR Strategy: What is it? Why do we need it? How we can build the effective HR Management function in the organization achieving challenging business goals úterý, 10. září 13
  • 2. creative HRM Content (1) About cHR (2) Current (HR) Industry Status (3) HR Strategy: What is it? (4) HR Strategy: Why do we need it? (5) HR Strategy: How to design the innovative one? úterý, 10. září 13
  • 3. creative HRM About creative HRM is a website covering many HR related topics... HR Management, HR Management Practices, HR Strategy, HR Models, HR Business Partnering Model, HR Processes, HR Development, Organizational Design ... The website is new and fresh, a lot of new content will be added during 2013. Please, follow creative HRM as you do not miss any news... cHRM Twitter Please, feel free to visit creative HRM úterý, 10. září 13
  • 4. Current HR Industry Status úterý, 10. září 13
  • 5. creative HRM Current Business World • Highly competitive environment... each company can copy and paste products • High levels of uncertainty ... the growth era in the industry gets shorter and products replaced quickly • Generation Y is not loyal with the employer ... they are loyal just with their values • Green business as a priority for the modern western organization • Constant cost cutting pressure from shareholders and competitors • State protection on the rise ... again • New competitors from emerging marketing growing each day creating the additional pressure on prices úterý, 10. září 13
  • 6. creative HRM Current HR Industry • Global workforce management ... aligning and unifying many different cultures in one organization • Global talent management and implementation of global relocation policies • Increasing performance pressure ... while (try to) keeping employees satisfied • Global HR processes blocking the local flexibility • Permanent fight with increasing costs of employment • Shifting jobs globally, building the operational centers around the Globe • Changing HR environment úterý, 10. září 13
  • 7. creative HRM HR Industry: Trends • Hiring talents globally to ensure that all positions in the organization are staffed with the best talents • Supporting innovations to build the sustainable competitive advantage • Building highly diverse teams as each team can have members from different continent and from a completely different cultural background ... setting new rules for the team work and gaining the right team spirit • Working with the older employees ... the company gets older, the employees get older as well ... keeping the young spirit inside the organization is the challenge and a trend • Pushing responsibility down the chain while keeping global and local policies ... the global organization is not agile, the local organization cannot be controlled efficiently ... HR has to find the right balance between global policies and the local execution • Less permanent employees and more project based employees ... the life- time employment is the word from the history ... the organization cannot offer the certainty, the employees do not offer the loyalty... the project based employment will be on a rise úterý, 10. září 13
  • 8. HR Strategy: What is it? úterý, 10. září 13
  • 9. creative HRM Tactical and Strategic HR 1. Primary focus on the proper administration of employee related issues and documentation. 2. Setting restrictive HR policies and procedures to administer various compensation actions, rigid variable schemes, which do not allow exceptions, flexible approach, creativity and innovations. 3. Enforcement of policies and keeping all employee records correct. 4. Pure focus on traditional HR processes like hiring, workplace safety and hard skills training. 5. Providing basic HR reports with no deep analytical insight. 1. Primary focus on achieving of business and HR goals and objectives. Stimulating dialogue among top executives to shape the HR strategy. 2. Aligning the reward system and the compensation strategy around general business goals to ensure the required performance of employees. 3. Running succession planning program for the entire organization to ensure the smooth transition of know-how. 4. Constant redesign of HR processes to allow employees to be creative and innovative, while sticking to general HR policies and procedures. 5. Designing training programs that ensure the development of the corporate culture. Tactical HR Strategic HR úterý, 10. září 13
  • 10. creative HRM HR Strategy: What is it? • HR Strategy connects the business strategy with the effort of Human Resources to build a better and competitive organization and aligns top executives with the HR team • Sets clear objectives for HR in the areas of the talent development, succession planning and organizational development to ensure the future of the organization • Defines the key principles for the compensation and organizational design strategy as the organization keeps itself thin and quick • Brings a clear border between global and local decision making processes allowing to act to HR Manager autonomously • Defines key areas which will be used as the competitive advantage on the job market • Identifies gaps in the people management area which have to be improved in a defined time frame Organizational Strategy HR Management Organization Development úterý, 10. září 13
  • 11. HR Strategy: Why do we need it? úterý, 10. září 13
  • 12. creative HRM HR Strategy: big why 1. Designing the modern HR organization requires the strategy. 2. A strategic shift in HR Responsibilities requires the strategy, which is aligned with business objectives. 3. Change of HR Roles and Responsibilities has to be driven by outcomes from the strategy implementation. 4. Award winning HR function has the innovative HR Strategy. 5. A fast moving company requires the strategic HR management (difficult to achieve without any strategy). 6. The HR Strategy does support strategic decisions. The cost efficient organization always makes decision supported by strategies. úterý, 10. září 13
  • 13. How to design the innovative HR Strategy? úterý, 10. září 13
  • 14. creative HRM HR Strategy: Design and Implementation 1. Assess the readiness for change. Assess HR team and the entire organization. Use HR SWOT Analysis. Develop the HR Strategy for the next few years. 2. Develop the basic HR framework, which will support the change to being the strategic partner. 3. Clearly define the role of the HR Leader in the organization. Be the architect. Get the approval. 4. Define the changed role of the line management in the people management. Clearly define owners of the HR Strategy. Define who will execute the strategy, define the strategic split of roles. 5. Clarify roles in Human Resources. Define specialist and generalist roles. 6. Design the new HR Organizational Structure. 7. Fill the structure with upgraded talents. 8. Let talents define sub-strategies and upgrade the HR Strategy to the final one. 9. Do the strategic HR. úterý, 10. září 13
  • 15. Want to know more? úterý, 10. září 13
  • 16. Follow creative HRM on Google Plus Follow creative HRM on Facebook Follow creative HRM on Twitter Please, feel free to visit creative HRM úterý, 10. září 13
  • 17. creative HRM About creative HRM is a website covering many HR related topics... HR Management, HR Management Practices, HR Strategy, HR Models, HR Business Partnering Model, HR Processes, HR Development, Organizational Design ... The website is new and fresh, a lot of new content will be added during 2013. Please, follow creative HRM as you do not miss any news... cHRM Twitter Please, feel free to visit creative HRM úterý, 10. září 13