Effective HR Strategy Framework for Corporate Success

HR & Organizational Strategies HR & Organizational Strategies PRERNA MAM

HR and Corporate Strategy corporate Strategy is the overall plan for diversified business Michael Porter Three types of Corporate Strategy are Growth Stability Retrenchment

HR & Business Strategy Corporate strategy is seen as the overall strategy related to business interests, while business strategy is designed to serve the interests of a particular business unit. Three types are: Cost Leadership Differentiation Focus

Dyer & Holder Typology for Strategies It s a fit between HR Strategy and Org Strategy to drive Corporate performance Three strategy are: An investment strategy is adopted by org that keeps track of changing market and encouraging innovation and creativity Inducement strategy aims at retaining the employees by encouraging loyalty Involvement strategy is one where the organization gives importance to both innovation and cost cutting.

HR strategy framework The steps in strategy frame work are: External environmental scan Competitor/industry analysis Stakeholder analysis PEST analysis Environmental Situational Factors Internal capital assessment

Competitor / industry analysis Threat of New Entrants Barriers to entry Intensity of Rivalry CompetitorAnalysis Bargaining power of Buyers Bargaining power of suppliers Threat of substitutes

Stake Holder Analysis A stake holder anaysis identifies and assesses the importance of key people, groups of people, or institutions for the organization s success. Stake holders include Shareholders, Employees Customers, Owners Government Communities Unions Suppliers

PEST Anaysis P Political S Social E- Economical T Technological

Environmental Situational Factors The two major challenges that the human resources field has to face with the changing business environment. They are: Managing Diversity Demographic Trends

Reasons for evolution of diverse workforce Shift from manufacturing to service economy Globalization of the markets Changing business strategies Mergers and acquisitions Changing labor market

Managing diversity paradigms Managing diverse employees is a strategic issue and has an impact on an organization s productivity and success. According to David Thomas and Robin J. Ely there are Three paradigms which guide the diversity initiatives in an organization they are

Discrimination and fairness paradigm Here diversity is measured by a company s recruitment and how it maintains a diverse workforce Access and legitimacy paradigm Diversity is measured by how an organization matches internal demographics with the external diverse customers. Learning and effectiveness paradigm. Diversity is measured by connecting unique contribution to work

Diversity processes Diversity processes help in managing diverse employees. The main processes are: Cultural Audit Surveys A survey is conducted to know employees attitude towards diversity, organizational values and norms and the position of different diversity groups in organization. Awareness training To make employees understand and sort the cultural differences. Skill building trainings This helps employees to focus on the behavior and skills needed to work in a heterogeneous environment. Diversity enlargement hiring strategies.

Diversity enlargement hiring strategies An organization will become more multicultural if it hires a more diverse workforce. For these practices should include Creating diversity awareness Involving the top management in diversity initiative program Developing a plan of action for diversity programs Identifying the changes required in the human resource functions.

Management of work teams Management of virtual teams

HR strategy framework The steps in strategy frame work are: External environmental scan Competitor/industry analysis Stakeholder analysis PEST analysis Environmental Situational Factors Internal capital assessment

Internal capital assessment ICA helps analyze a firm s strengths and weaknesses in financial, technological and human resources. The rapid growth of the internet has also significantly affected how organizations are managed. HR assessment includes the analysis of the workforce, organizational culture, the changes to be implemented in the org culture and the technology to be used for effective performance of the employees.

Strategy Formulation Organization has to have a vision and mission for the successful implementation of HR strategy. Vision presents a core ideology and an envisioned future of the org Mission statement should describe the company s business and its activities and the position it plans to achieve in its fields. The next step is to integrate HR plan with Org Plans.

Snapshot HR and Corporate Strategy HR and Bisness Strategy Human Resources Strategy Framework External environmental scan Competitor/industry analysis Stakeholder analysis PEST analysis Environmental Situational Factors Managing Diversity Internal capital assessment Strategy Formulation

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