Designing Strategic Human Resource Management
B. HRM STRATEGY – DESIGN PRINCIPLES
From what we have studied so far, you will recall that there is no overall single human resource strategy or series of strategies that can be considered ideal or prescriptive for all organisations.
Boxall, writing in the Journal of human resource management in 1993 listed the following basic propositions about the formulation of human resource strategy:
There is typically no single human resource strategy in an organisation. From his
research, Boxall found that successful organisations did have an overall strategic approach within which there were specific human resource strategies.
Business strategy may be an important influence on human resource strategy but it is only one of several factors. In the last study unit, we identified some of the factors that
have an influence on human resource strategy.
Implicit (if not explicit) in the mix of factors that influence the shape of human resource strategies is a set of historical compromises and trade-offs from stakeholders.
Management may seek to shift the historical pattern of human resource strategy significantly, in response to major contextual change but not all managements will respond and not all in the same way. In other words, human resource strategies may
be used as a method of effecting change.
The strategy formation process is complex and excessively rationalistic models that advocate formalistic linkages between strategic planning and human resource planning are not particularly helpful. In reality, therefore, there is no magic formula which will
lead to adoption of a logical collection of human resource strategies to support a given set of business strategies.
Descriptions of the dimensions that underpin human resource strategies are critical to the development of useful typologies but remain controversial, as no one set of constructs have established an intellectual superiority over others.
Armstrong, in Strategic Human Resource Management: A guide to action, also notes:
That coherent and integrated human resource strategies are only likely to be
developed if the top team understand and act upon the strategic imperatives associated with the employment, development and motivation of people.
This will be achieved more effectively if there is a human resource director who is playing an active and respected role as a business partner.
The effective implementation of human resource strategies depends on the involvement, commitment and co-operation of line managers and staff generally. There would seem to be no basic process, therefore, for formulating effective strategies but we can make some general comments and statements about the possible routes.
Formulating a human resource strategy is the start of effective human resource management but implementing it is the main task. Strategies tend to be full of general aims and rhetoric and these must be translated into concrete action plans with clearly stated, measurable
objectives and the resources to achieve them. All too often there is a gap between the fine words of the strategy and what actually happens on the ground! There are a number of reasons for this:
Complex or ambiguous initiatives may not be understood by those who have to carry them out or may be perceived in a way which is different to what was intended
There is a tendency for people to accept only those initiatives which they perceive to be relevant to their own areas
Where initiatives represent change of some sort, people may resist that change for a number of reasons
If the initiative appears to be contrary to the organisation's culture, it will be resisted (for example, delayering in a culture where role within the organisation is a driving force)
If the initiative is seen as a threat, for example, to job security
If the initiative is perceived as unfair
Inertia can lead to initiatives being only partly implemented.
Armstrong identifies a number of 'barriers' to the implementation of human resource strategies, such as:
Failure to understand the strategic needs of the business with the result that human resource strategic initiatives are seen as irrelevant or counter-productive
Inadequate assessment of the environmental and cultural factors that affect the content of the strategy
The development of ill-conceived and irrelevant initiatives, possibly because they are current fads or because there has been an ill-digested analysis of best practice that does not fit the organisation's requirements
The selection of one initiative in isolation, without considering its implications on other areas of human resource practice or trying to ensure that a coherent holistic approach is adopted
Failure to appreciate the practical problems of getting the initiative accepted by all concerned and of embedding it as part of the normal routines of the organisation
Inability to persuade top management actively to support the initiative
Inability to achieve ownership among line managers
Inability to gain the understanding and acceptance of employees
Failure to take into account the need to have established supporting processes for the initiative (for example, performance management to support performance pay)
Failure to recognise that the initiative will make new demands on the commitment and skills of the line managers who may have to play a major part in implementing it (for example, trying to implement an appraisal system without training line managers in the skills necessary to carry out the process)
Failure to ensure that the resources (finance, people and time) are available to implement the initiative (for example, failing to train managers in appraisal systems because there is no budget to finance that training)
Failure to monitor and evaluate the implementation of the strategy and to take swift remedial action where things are not going according to plan.
A planned approach to strategy formulation and implementation should help to avoid many of these barriers. A thorough analysis of the needs of the business, coupled with an analysis of likely barriers, will ensure that steps can be taken to avoid difficulties. It is important to
consider the monitoring and evaluation of the initiative during the implementation stage so that problems can be identified and dealt with quickly. We will look at evaluating human resource strategies later in this study unit.
Armstrong suggests preparing a plan for implementing a strategy in a formal manner. This is a useful discipline to ensure matters are not forgotten and a useful tool for your examination! The strategy should be set out under the following headings:
1. Basis
Business needs in terms of the key elements of the business strategy
Analysis of the environmental factors (using techniques such as a SWOT analysis and/or PEST analysis)
An analysis of the cultural factors.
2. Content
Details of the proposed strategy.
3. Rationale
The business case for the strategy against the background of business needs and environmental/cultural factors.
4. Implementation plan
Action plan
Responsibility for each stage
Resources required
Proposed arrangements for communication, consultation, involvement and training
Project-management arrangements.
5. Costs and benefits analysis
An analysis of the resource implications of the plan (costs, people and facilities) and the benefits that will accrue, for the organisation as a whole, for managers and for individual employees.