Development of human resource management strategy

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Human Resource management is term that basically describes the individuals in shape of group or labor force working in an organization. Human resource management deals with the advertisement of job for Organizations, hiring of right person for right job at right time. Human resource management is mainly responsible for all the strategy making and policies regarding organizational objectives and goals.

What is human resource management?

According to Amstrong, M. (2006)

"Human Resource Management is defined as a strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of its objectives."

Storey (1989), cited by (Armstrong M. 2006)

"A set of interrelated policies with an ideology and philosophical underpinning."

Storey (1989) suggested that is the real mixture of Human Resource Management:

A particular constellation of beliefs and assumptions.

A strategic trust and informing decisions about people management.

The central involvement of line managers, and

Reliance upon a set of levers to shape the employment ship.

Human Resource System:

Human Resource Management walks along with Human Resource System that combines in following way:

HR Philosophy: it talks about values and guiding principles that are linked in the range of Human Resource Management.

HR Strategies: it defines the directions of Human Resource Management.

HR Policies: it describes how philosophy and strategies, value and principles would be applied in the scope of Human Resource Management.

HR Process: it shows the formal processes and ways that how to adopt and implement HR Strategic plan and policies.

HR Practices: it includes casual approaches to deals in the scope of Human Resource Management.

HR Program: this program enables all philosophies, policies, procedures, strategies and practices to get into practical form according to action plan (Armstrong M. 2006).

Developing a HRM strategy:

HRM strategy is made for the organizational objectives to deals with the coherent approach of management of people in the organizations. It is same like other strategies that are made for marketing, finance, and similarly there is a strategy for human resource management.

In the process of developing strategies for human resource management one of the critical point should keep in mind (Mumford. A, Gold. J, 2004).

In the HR strategy it must be keep in mind that kind of business are you running and what kind of people of staff you want to manage your business, and most importantly what are your strategic business goals and objective.

What programs, action plans and staff should be structure and implemented to encourage the workforce to meet the strategic objectives effectively (Mumford. A, Gold. J, 2004).

In order to answer these questions four key points of an organization must be addressed. These are:

Culture: to make a dynamic strategy of HRM then there must be an eye on the organizational culture and trends, traditions and norms, belief and aim and way of management towards its operations.

Organizations: there must be standard for running an organization, which includes; what is the structure of the organizations (tall or flat), what is the Job role and Job description, what is hierarchy of the organizations (squeezed or spread).

People: one very basic point regarding people and staff of the organizations is very important to define what are required skills, what is the capability of management, what technical skills are required to run the organization effectively.

Human Resource Systems: last but not least, there must be a check on the defined system for diver the value to the organization. There are different systems been used by organizations; hiring and selection of Human resource, methods and modes of communication (e-mail or memos), what are the different tools and techniques are been in used to train and develop the labor force.

In the process of HR strategy development, sometimes it happens that high management or commander over look some valid and important dimensions of the business strategy while making the main objective. There should be bare balance in between the minor and major objective. Then these companies reengineer their organizations to free managers to have more business oriented but they have some loopholes in the training and reward system. Often, it come into notice that when the higher management or the ownership of the organization does not encourage the manager then they are look confused about the functions of the organization, at one time one are can be under consideration but strategic plan creates and develops a positive relationship in all the areas and dimensions to have a positive outcomes. If you want that your organization ponder on quality service, quality products then you must look into the review the structure, rewards and appraisal system, communication system between higher management and subordinates plus peer to peer healthy talks and relationships. Salary and reward system always have influence on the productivity of the organization. Usually it happens that mostly organizations are paying its labor force in comparison with the volume of output produced but if you want that your organization have stress on quality products then there must be little relax salary and reward system, this ultimately encourages labor force, otherwise it will create a negative impression on staff about the contradiction of saying about quality and motivate to staff.

Process of developing HRM strategy:

Authors have defined different steps to make a Human Resource Management strategy. These different steps correlate with each other.

Look the broader picture.

Statement of intent, creations of Mission and Vision.

Draw external business environmental analysis, (SWOT, PESTEL)

Detailed Human Resource Analysis

Identification of critical issues

Back-up Plan

Implementation of Action Plan

Look the broader picture.

To have a better understanding, look in to the broader picture of your organization. Following point should keep into mind:

Clarifications and identification of key elements of the business which have direct or indirect influence on organization's business. These key elements can be service delivery system, competitors of organization, local and international markets, technology and inventions, distribution of products.

What is the empirical importance of above mentioned key forces in the organizational and outside the organization?

And importantly what is contribution of these elements in your operation of organization.

Statement of intent, creations of Mission and Vision.

It is mandatory to development following:

Development of statement of intent, to shows what are the capabilities your organization have.

Develop mission statement that shows the undertaken operations by your organization.

Develop vision of your organization, which what will be your organization after 5 or 10 years, and what are the future prospects.

Notice: in the development of these up mention statement, these statements should be realistic and don't not put fake ideas in to it. It will give a bad impression to the readers and customers. Add that what you people is going to add in this.

Draw external business environmental analysis, (SWOT, PESTEL)

Organization must conduct environmental analysis that shows the internal and external strengths and weakness, and make improvements to overcome these weaknesses, political, social, legal aspects as well. They must use current skill, and capabilities. They must do external research and look what are the opportunities they would have in future and what are the threats they are going to face in future. This SWOT will defiantly add to the performance of the organization.

Detailed Human Resource Analysis

They must do the details analysis of human resource management to see the culture, people and the HR strategies. Must look into what you are at this time and what you want to be in future as organization.

Identification of critical issues

Look into the initials on the organization from where you start; either you strategies are matching with your SWOT and PESTLE analysis. Indentify the critical issues associated with the organization. Indentify what are the failures and the reasons behind it. Always make sure that where you want to go as organization, keep eye on your goals and objectives.

Back-up Plan

Always try for bad time, and get ready got the back up plans and action plans. Don't stick to assumptions, try to indentify where the problem is and think about the consequences of it. Indentify what are the implications for the business HR department have with it. Take out the broad objectives of the organization out, these can be figure out as employee training and developments, reward systems, recruitment process, communication modes, development of organization and management.

Implementation of Action Plan

The sole purpose of developing HR strategy is that all the objectives are set in an effective form and these objectives are achievable, and all these objectives are integrated.

Intellectual capital' and knowledge management:

The terms refers to the all resources of any organizations have with it. They have competitive advantage of these intellectual property rights.

According to Nermien Al-Ali, N. (2003)

"Intellectual Capital of an organization such intangible resources and assets that an organization can be use to create value by converting into new processes, products and services."

Knowledge Management (KM) 

Knowledge management is set of different strategies and rules implemented in the organization to point out development, creation and distribution of thoughtful experiences. These thoughts and experiences enable the organization to implant towards its technical and soft skills labor (Wikipedia).

According to Awad & Ghaziri, H. (2007)

"Knowledge Management is newly, interdisciplinary business model that has knowledge within the frame work of an organization and it focus. It is rooted in many disciplines, including business, economics, and psychology and information management."

"Intellectual capital (IC)

In the technology and knowledge base organization, Intellectual capital is key force in innovation and discoveries of new product and services. Here, knowledge management supports the intellectual capital as it works as the fundamental activity in encouraging the innovations and different dimensions. It can be say that knowledge management system and Intellectual capital have close links to support the organization in this technological world. Its gives not only growth to the organization but also ensures that organization is producing quality products and services. Source : <>

Strategies for management development:

According to Lee (1992) cited by Alan Mumford, Jeffrey Gold (2004) "the entire system of corporate activities with the espoused goal of improving the managerial stock in the context of organizational and environmental change."

This definition tells the number of objectives:

This is a powerful device that reengineers the organizational structure.

This tool gives cost reduction but gives quality and profitability.

It contributes to the development of a learning organization.

It also assists in self development.

Management developments ensure some benefits to the organization, that includes;

This always adds to the performance of the organization. The performance can be gauge from the terms of agriculture; agriculture is way of repeating the view of some organization that we need to grow our own managers.

It uses to say that if management development has purpose in the organization then this has a link with organizational strategy. Every organizations responds to global influences and environmental changes like; globalization, technological change and customer demands, here Management Development plays a role as strategic tool to the implementation of strategy development and consequently improves business and organization externally.


Figure - Sustaining Model of Development (Mumford. A, Gold. J, 2004)

Managers need to come up with the new role and skills to become productive. Management Developments provides the sustain opportunity to organizations to have "winning positions".

Sustaining model defines some points here which are:

Strategy is sets of outcomes to gauge the changes occurred in the environment.

Strategy provides guidance on the requirement to the managers; new skills and performance and productivity.

Management development policies define that requirement to provide management developments activities.

The outcomes of developments being assessed and management provides feedback to organizational strategy.

There are various reasons to form a Management Development strategy, which includes:

Some time it happens that there is some change in technology that changes job and work design and organizational structure. Management development strategy can be form under some mergers and acquisitions. This strategy also forms when they are market development or come up with new services. It also helps in identifying weakness and poor performance.

Employee Partnerships:

There are Five Partnership Principles model. The following principles form the satisfaction axis of the model:

Systems and Leadership: this is important to give job security, input on decisions, recognition, communication and information, fairwaters in employee partnership.

Resources: in the employee partnership it must be including physical environment, equipment, staffing.

Teamwork: including respect and coordination are part of principles.

Direct management: in the employee partnership model feedback, coaching, trust, communication, recognition is important to look forward.


Job engagement: it is mandatory fulfillment from the work performed, use of skills, and feeling of accomplishment by performing the jobs.

Work engagement: participating in a work group that shares attentiveness to quality and customer needs, to enhance the productivity, sense of connection.

Organizational engagement: as evidenced by a willingness to stay with a facility and recommend it to others, along with pride in the organization and alignment with its values (press ganey, 2010).