Purpose of HR strategy To articulate what an organization intends
to do about its human resource manage-
ment policies and practices now and in the
longer term.
General HR strategy areas High-performance management, high-
commitment management and high-
involvement management
Specifi c HR strategy areas Human capital management, corporate
social responsibility, organization develop-
ment, engagement, knowledge manage-
ment, employee resourcing, talent
management, learning and development,
reward, employee relations, and employee
well-being.
Criteria for an effective HR strategy satisfi es business needs;
•
founded on detailed analysis and
•
study;
can be turned into actionable
•
programmes;
is coherent and integrated;
•
takes account of the needs of line
•
managers and employees generally
as well as those of the organization
and its other stakeholders.
Fundamental questions on the development of HR strategy What are the fi rm’s strategic objec-
•
tives and how are these translated
into unit objectives?
What are the ‘performance drivers’
•
of those objectives and how do the
skills, motivation and structure of
the fi rm’s workforce infl uence these
performance drivers?
How does the HR system infl uence
•
the skills, motivation and structure
of the workforce?
How the vertical integration of business and HR strategies is achieved Understand what the business is aiming to
do and what drives it, and how HR prac-
tices make an impact on these drivers.
