ABC, a newly established company in Wembley, is running its operation since June 2009. From the very beginning this company is fighting for its survival in the leading market. This has been facing a lot of problem in running its business. The Human Resource Strategy which has been limited by the corporate strategy is considered as the main reason of their downfall.
Human Resource Management is a very important part of an organization. This is almost associated with the productivity the organization and this human resource management is the combination of the process of recruitment, retention and termination of human resource.
While talking about the strategy, here comes the words mission and vision. Without proper mission and vision, no strategy will come into a fruitful operation for a company. In developing a strategy for an organization, four key dimensions can be considered. They are as follows:
Culture: Beliefs, values, norms and organizational behavior.
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Organization: The structure, job roles and reporting lines of the organization
People: The skill levels, staff potential and management capability
Human resource system: The people focused mechanisms which deliver the strategy - employee selection, communications, training, rewards, and career development and so on.
Balancing the demand and the supply for the human resources is the most important matter in the traditional approach of the HR Strategy. It is dependant upon the mission, vision, goal and mostly on strategy (www.accel-team.com).
For an organization corporate strategy plays the important role for its success and HR management is an important part of the corporate strategy. Corporate strategy is the one which imports the latest methodologies for developing and implementing of the working strategy. The participants of the corporate level learn to integrate corporate strategy and culture with organizational structure, develop corporate, business, and functional strategies, and manage the interface of strategy and technology (Raynor, M., 2007).
HR management strategy is controlled, influenced and limited by the internal and the external factors of the organization. Business strategy management philosophy, labor market condition can be considered as some crucial factors. Some possible ways how the human resource strategies are controlled by the corporate strategies are shown below:
1. The fundamental requirement of the HRM strategies is the corporate strategy and its objective. The corporate strategies are responsible for the budgeting of the of the HRM management. Proper budgeting is necessary for the HR management. Corporate strategy should be very clear, otherwise it would be very difficult to develop strategy for HR manager.
2. Corporate level of an organization is the key source of finance of the HR. If the corporate level does not allow the HR management a proper budget, there will be a direct impact on the organizationâ€™s productivity. Because of that proper recruitment will not be possible. Moreover, the proper training, proper knowledge providing will not be possible.
This can be said that HR strategy is controlled by the corporate strategy. But if they do not get the proper freedom to run their process smoothly, there will the direct effect on the company.
If an organization wants to stay in the competitive market, demand to them and their supply should have an effective value. And this can be done with the help of proper human resource management. But if they do not get the right power to use at the right time, the organization will be under the threat of loosing its position in the market. HR management has greater contribution to success of the organization (Holden and Claydon, 2006).
It is very clear from the above discussion that HR management plays a very important role for the success of the organization. It is also seen that this HRM might be improperly controlled by the corporate management and HRM might get some limitations. Some suggestions are given below to overcome these problems:
1. Strategies are made for fulfilling the vision and mission of the company. Strategies are made considering the whole company where HRM is a part of that. So when HRM strategies are made, there should be contact with the corporate level and there should be negotiation between them. And the decision should be taken which are beneficiary for the company. The planning, new recruitment, retention that is each and every decision should be taken with the knowledge of the corporate level.
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2. HRM strategy should be taken considering the vision, mission, and objectives of the company. If this goes other way means if this is contradictory decision the corporate strategy, there may be problem on implementing that. And it may not be beneficiary for the company as well.
Conflict between corporate strategy and HR strategy can be reduce (Price, A,.(2007)) by using the following issues-
HRM must build trust on the corporate level. This will lead them to mutual understanding for future planning.
One more thing which should always be kept in mind is budget. They should always follow the budget allotted to them. If some more is needed they should always talk to the corporate level.
HR strategy must ensure that performance of HR is consistent with corporate strategy
3. The other thing is the power balance. The HRM should be given the proper power .There should not be any interference but should be negotiation.