1. HR STRATEGY
LINDA SUSAN JOSEPH
S4 MBA

2. WHAT?
• HR Strategy is aligning the goals of HR to the goals or
strategy of your organisation.
• Recruitment, retention and termination are a small part
of it.

3. IOW..
Human resource strategy is designed to develop the skills,
attitudes and behaviors among staff that will help the
organization meet its goals.
consists of
principles for managing the workforce through HR policies
and practices.
It covers
the various areas of human resources functions such as
recruitment, compensation, performance management,
reward and recognition, employee relations and training.

4. Hr Strategy
Covers
Compensation
Recruitment Performance Management
Employee Relations And Training

5. SIGNIFICANCE
• HR strategy affects what employees feel and do.
It manifests in work
-productivity outcomes such as customer satisfaction,
product quality, errors, accidents, down time and
employee retention.
• These outcomes, in turn, affect company finances.
Eg: Poor customer service
can reduce company sales. An effective HR strategy
benefits the company's bottom line. It improves employee
motivation and satisfaction. Employees also benefit by
realizing their full potential and developing their own
careers.

6. FEATURES
• HR strategy must be aligned with the organization's vision,
mission and goals.
• In developing an HR strategy, the company must analyze the
characteristics of its industry, determine its competitive
advantage, and identify key processes and key people.
• Creating different strategies for all groups of people in the
organization may be necessary, depending on their skills,
knowledge and responsibilities.
.The strategy must look at the organization's culture, structure,
people and systems.

7. CONSIDERATIONS
• Large firms often focus on building systematic HR
practices that improve employees' motivation and skills.
• (A Cornell University study of small and medium-sized
enterprises showed that their) …..HR practices are
informal and reflect company values.
• Their HR strategy tends to focus more on selecting the
right employees to do the job, managing their activities
and motivating them to stay with the company.
• Smaller organizations often develop employee loyalty by
creating a family-like culture.

8. CHALLENGES
• The HR department must find ways to attract, select
and retain employees in an increasingly competitive
market.
• The globalization of the workforce requires more
complex and diverse human resource strategies that will
adapt to each country's labor laws, economic structure
and staff expectations.
• The HR professional must play a strategic role in
adapting the company to diverse environments while
keeping down costs and working with fewer resources.
• ………>>>This involves proactively partnering and consulting
with line managers.

9. RESPONSIBILITIES
• Senior management often leads in defining the
organization's human resource strategy.
• The HR department plans and translates the strategy
through HR policies and practices.
• This requires reviewing the organization's current
practices and analyzing critical issues such as high
turnover, declining sales or production delays.
• HR can refer to best practices in successful
organizations.
• For a successful human resource strategy, managers
must be active partners with HR and HR staff must
facilitate and coordinate the process.

10. ORACLE CORPORATION..HR STRATEGY!!!
• Organizations should be more defined through their
capabilities than through any sort of hierarchy.
• Managers are generally responsible for creating
capabilities to respond to business challenges.
• They build a business strategy and HR supports the
implementation of that strategy by putting in place
appropriate HR practices which would build these
capabilities.
• The capabilities become the culture that drives
sustainable business success and are the measurable
deliverables for HR

11. The HR practices to build capabilities are put into 4
categories :
 People -everything dealing with the flow of people within
an organization
 Performance-ensuring accountability through managing
performance from individuals and teams including
compensation/benefits and rewards.
 Work -everything related to the work flow, how work in
teams, administrative policies, design of physical
facilities and space, how structure company to align with
strategy; these practices directly influence talent.
 Information -which is particularly the important as it
looks like HR's role in communication gets more and more
important nowadays.

12. DRAFTING A POWERFUL HR STRATEGY-HOW??
First defines what “strategic” means -sustainable, long
term, adding substantial value...
The essence is that you need to define the key desired
organizational and cultural capabilities needed to
strengthen your key sources of competitive advantage
which you have identified before.
 Important is to translate these into people behavior,
what behavior from employees do we want to see in the
future state, what will people be doing more of/less of.
Based on this “vision” the appropriate HR practices will
be identified and implemented and finally success will be
measured.