Approaches To HR Strategy: Review, Evaluation And Recommendation

Similarities and differences among various approaches to determining HR strategy

Questions:

1. Critically review the various approaches to determining HR strategy:

what are the similarities and differences,
The strengths and limitations,
The implications and consequences of these approaches?

2. For an organisation with which you are familiar, explore the way in which they currently develop HR strategy?

3. Evaluate the effectiveness of that approach explaining what criteria you are using to inform your view?

4. Identify the different circumstances in which you would recommend the adoption of one approach rather than another?

In the report a critically analysis of the three looms towards Human Resource Management Strategies and plans with models as well as theories is being discussed. Within the chosen firm I a proper investigation of the business ecology where the Human Resource department of the firm works towards the expansion plus development of Human Resource strategies which are presently in place as well as the loom they at this time use to put into practice. Finally, a sole approach will be chosen and evaluated and also the effectiveness as well as implementation of the strategies and approaches with a proper recommendation. In an international economy, the organization should recruit as well as retain majority of knowledgeable, talented as well as skilled, plus creative people.

The aim and goal of proper management of human resource is to support any organization to appropriately meet all the strategic goals through attracting, as well as maintaining staffs and even to manage all the staffs effectively. Basic premise of academic theory for HRM is one which deals with humans and are not related to machines; thus we require to have proper interdisciplinary assessment of populace in workplace. Fields like psychology, industrial as well as organizational psychology, business relations, sociology, plus critical theories like postmodernism and post-structuralism even play a vital role. A widely used system to explain role of the HRM, defines four main fields of HRM function that is:

• Employee champion
• Strategic trade partner
• Change agent
• Administration

HRM- HRM is directly responsible for the way in which human beings are treated within the organization. Also it is accountable for bringing some people into the firm, helping these people perform the task better, providing them proper compensating for all of their jobs, and also solving issues that are ever raised. There exist seven major functions of management of human resources department which can be addressed as staffing, compensation plus benefits, performance appraisals, training & development, safety plus health, employee as well as labor relations, as well as human resource examination (Stone, 2010).

This loom emphasizes more on significance of ensuring that all the strategies of HR are in place and also are suitable to conditions of the firm, including the culture, operational procedures and exterior ecology. HR strategies also have to consider particular needs and requirements of both organization as well as its people. There could also be no worldwide directions intended for HRM strategies as well as live out. It also depends upon thefirm as well as the situation within the firm (Guo, 2003). This is never to speak that ‘high-quality practice’, otherwise ‘leading rim practice’, which is live out that performs well in single victorious ecology, must be left unnoticed. The chosen HR practices must definitely fit well along with several aspects of organization for being effective.

• It would ensure about the reliability and success of the HR strategy chosen
• It would help the firm to properly choose the most suitable strategy and thereby help to enhance the performance of the employee and result in advancement of the organization on a whole.
• It also helps the firm to focus upon the idea that different Hr strategies focus of provided needs of people as well as organization both (Nolte, 2008).
• This approach has been always considered more responsive and beneficial than any other in the HR functions and strategies that could be used by the firms.

It is also called Michigan model. It got advocated through Fombrun Tichy plus Devanna in year 1984 at Michigan Business School. Both of them have named the model as the matching model intended to management of human resource. Specifically, matching the aspect of the replica shows that approach is disposed to tougher and hard side of the subject known as HRM. All this is just because matching model lays emphasis more upon the “tight fit” amid HR strategy as well as buisness plan. It also needs that attainable human resources should be properly matched up with tasks and tasks in the firm. The approperiate HR policy should also be extremely calculative regarding the number and amount of human beings needed to attain aims preserved within business strategy . It even takes middle phase in the replica thus human resources also are taken as many another resource that should be totally as well as optimally utilised along with other resoruces for achievement of all laid down organizational objectives and goals.

Strengths and limitations of HR strategy approaches

This loom emphasizes that firms would be upon effectual front if people adopt the strategic configuration strategy. Seek the stability by supplying merely a very limited cluster of goods directed towards a very narrow section of whole possible market.  The loom also strives forcefully towards preventing competitors incoming their territory and also achieved via competitive pricing otherwise supply of higher quality goods. Ignore growth and trends exterior to their domains. The approach helps the firm to grow through the market diffusion or imperfect product expansion. Little otherwise no search of ecology to find novel chances for expansion. Intensive preparation oriented toward the cost plus other competence issues. The organizational Structure also is high upon the horizontal differentiation, federal control, as well as elaborated formal ladder for the communication.

Organizational life cycle (OLC) actually is a replica which suggests that the businesses, on top of time, advances via the fairly unsurprising stages of the growth period. This replica is attached towards study of the organizational expansion as well as development. This is also based upon the biological term for living beings that have a very regular prototype of growth and development like birth, growth, decline, maturity, and even death. Similarly, OLC of the businesses have also been conceiving of like generally carrying four otherwise five phases of growth: start-up, development, maturity, as well as decline, through diversification at times measured to be the additional stage pending amid maturity as well as decline (Mitsakis, 2014). During start-up phase, firms accumulate the capital, hire the workers, plus also start developing all their goods or services effectively. Toward end of the stage, firms often know explosive growth as well as start to hire novel employees quickly, as trade opportunities also exceed infrastructure as well as resources (Reilly, 2012).

This approach has a greater use of the HR Practices in firms which can be collectively and consistent that will always result in better performance. Guest (2001) states ‘competence, commitment, motivation and effective job design are needed to ensure the best organizational outcomes (Long, 2005). This approach is known to be used in organizations that have recognition of bad practice. However, the theory, models and resources are out there ready to use and implement into the firm. With this, all firms will see performance and improvement if this approached is implemented.

This replica was actually given by a researcher named Beer and his colleagues in the year 1984 at the Harvard University. The authors of the model also invented it to chart of the HRM region. It acknowledges the existence of several shareholders in the firm. These numerous shareholders comprise all the stakeholders and several clusters of staffs, government as well as society on a whole. The gratitude of legality of such several stakeholders supplies the model some neo – pluralist replica. It also stresses upon human and the softer side of the HRM (Nolan, 2008). On the whole this is as the mock-up emphasizes on reality that staffs like all shareholder also are evenly vital for powering the organizational results.

Implications and consequences of HR strategy approaches

	Strengths	Weaknesses	Implications	Consequences
Best Fit	Relatively repetitive plus expected behaviors Easy to understand employees Strategic position of firm might determine the proper practice to be taken up. Efficient as it is joined towards the surroundings circumstance or ecology of business.	It is based on the classical description of strategy Deterministic plus single-way process Very less empirical help and support HRM shaped through institutional forces and not competitive force.	Must fit properly with all other aspects and elements of firm to be properly effective. Barriers towards implementing the HRM	Overlooks all the employee interests and social norms as well as requirements This loom is unclear plus unproven Conflicting the HR Strategies Static plus top-down approach
The Matching Model	It needs that all available human resources should properly match  with the jobs available Puts right person at right place Avoids misuse and wastage of resources available	It is inclined merely towards harder part of the HRM. Difficult to manage human beings with this model	Business strategy actually takes central stage within this model thus human resources needs to be taken like other resource that must be totally utilised all together with other resoruces towards achieving organizational aims and objectives (Roberts, 2013).	The apporach will result in demands which would aim to gain higher profits but the labour will be obtained very cheaply, and will be used sparingly, plus also will be developed as well as exploited totally
The structural configuration model	Seeks the stability through producing merely limited clusters of products  Strives forcefully to prevent the competitors entry to the territory Intensive planning toward cost plus other issues	Ignore the developments plus trends out of the particular domain Restricts the expansion and development of the firm Little or even no scrutinizing of environment for find novel opportunities and chances for development	Representation of a residual plan and strategy  Describes inconsistent plus unstable patterns which may arise if one of three strategies gets pursued rudely.	Innovating might be extra important as compared to higher profitability. But the approach stops innovation thus hampers the firm negatively
The business life-cycle model	It helps the business to progress via a fairly expected sequence Makes the task of planning easy and consistent Makes the firm get ready for all risks and resturns	It needs higher investment as includes vast planning It yet remains not that effective as other approaches	Needs vast human resource	Towards end of the approach, firms often experience volatile growth as well as start to hire novel employees quickly, as business chances exceed the infrastructure plus also the available resources.
	It ‘typically emphasize upon their recommendation for the high-commitment, and high-performance of the HR Strategies as well as practices. It enhances the capabilities of the human resources in the firm.	It might not be proper in all conditions or within some stages and section of business.	Results in implications as well as consequences for the part of business or whole business. It could be very difficult to implement as of changes required to be completed plus culture of business.	It is even inconsistent upon the types as well as measures of HR Bundles plus is difficult towards keeping a record with short commitment through business
Harvard model	It is intensely rooted within human relations and tradition. Employee influence gets recognised via public motivation	Only softer part is considered Ignores the harder aspect HR outcomes here has impact upon long term results also	The result from this set up is soft in nature because they indulge higher congruence, promise, competencies and many more.	The interest of several groups must be fused as well as factored within creation of the HRM strategies as well as ultimately creation of all business strategies.

Source: (Human resource management in action, 1985)

The business’ aims and goals which are its strategic crucial actually sit at heart the HR strategy the Microsoft adopts and for aligning the business plus HR needs the firm’s key question that, “Can the firm’s internal ability deliver all the business aims and goals?”

Deeper knowledge plus understanding of the business models helps Microsoft to identify probable threats plus opportunities in quantity plus quality of the human resource needed by the firm. This in return recognizes key elements of the HR strategy plus virtuous circle for providing whatever the firm needs for proper success (Abwanzo, n.d.).

It is procedure through which the business goals plus objectives are flown and also managed across plus down the firm. It supplies a link as well as rationale for every else HR activity.

It is shape, size plus structure that firm needs to meet the customers’ wants and demands. It reflects management procedure that also drive business model plus determines the organizational agility as well as flexibility.

Is all about achieving clarity all through firm’s structure and is very critical for resourcing strategies towards working well (Aspden, 2011).

If the strategic resourcing provides pipeline for bringing in the external skills, then firm’s development strategy also is way in which HR team of Microsoft decides about the changes plus improvements needed to be build to present workforce.

The firm uses the approach named as best fit loom which helps the firm to attain better success. By having learnt regarding things that works need and want and also, ideally, things that do not work well within the firm, Microsoft decides about what might be relevant within general terms as well as what lessons could be learnt from past mistakes which could be adapted towards fitting its exacting strategic as well as operational requirements. Starting point is the analysis of business needs within the context like culture, processes, structure and technology. This indicates the firm what needs to be done for betterment and effectiveness enhancement of the firm and also its employees (Bagga and Srivastava, 2014). After that, it is useful for the Microsoft to pick as well as mix several practice, plus then develop proper loom which applies the formulating as well as implementing of all HR strategies.

Since a handful of the best practices could be applicable generally yet things that are considered proper best practice within one industry or company and country otherwise corporate culture is not necessarily the best practice within all other firms and industry even if in same industry.   If a thing works for very small mom & pop shop, it may not necessarily work intended for some other firm. In same way Best fit works in situations where a firm needs to find out the best possible fit amid the advantages and disadvantages of several options (Berkowitz, 1999).

The firm also was very strong supporter of the payment for performance and was embarrassed while it found that many of its units rewarded the staffs for length of the service. Since the firm blindly followed best practice at times it need to review itself and should as a minimum be acknowledged plus understood properly. Best practices have been seen the same as market surveys but best fit are always extra helpful (Lange, 2013). The results also can be reviewed by best fit but and one single data point can also be considered for reaching to an appropriate decision. Following best fit is also tempting as it seeks to guarantee proper success.  Also it is very natural tendency as well as much better and safer for the firm to “go with pack”.

References

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