Functional Strategy In Hrm

Strategy is the plan for how the organization intends to achieve its goals. The means it will use, the courses of action it will take, and how it will generally operate and compete constitute the organization’s strategy. Strategy has been defined in different ways by different authors. Strategy has been defined as:

In business parlance, therefore, strategy is a long term plan or a course of action to achieve organizational goals. It entails managerial choice among alternative action programmes, commitment to specific product market, competitive moves and business approaches to achieve enterprise objectives. In short, it may be called the game plan of management. Whereby the strategy of a business enterprise consists consists of what management

As the HR strategy involves taking the organization’s strategic goals and objectives and translating them into a consistent, integrated, complementary set of programmes and policies for managing employees. The aim of HR strategy is to help the organization to achieve its mission and objectives through a systematic design and implementation of HR programmes. All the functional HR activities such as planning, recruitment and selection, training, performance management, compensation, etc., are derived and should flow from the HR strategy.

Moving ahead, HR strategy must match the business strategy. In other words, the human resource plans and programmes viz., staffing, training and development, appraisal, compensation, etc., must be tailored to the organizational needs.

An economic slowdown happens when the rate of financial development moderates in an economy. Nations ordinarily measure monetary development as far as total national output (GDP), which is the aggregate estimation of merchandise and administrations delivered in an economy amid a particular time of time. This has direct effect on employees, employers and the organization as a

Firms adapt to recession conditions by implementing business strategies centered on investment, innovation and market diversification, and that such strategies lead to higher levels of business performance. Examples include: new product development and targeting new market niches increased marketing spending ‘value centric’ pricing strategies, whereby resource‐rich firms emphasis quality and brand rather than low prices to attract customers, or, alternatively, adopting ‘predatory pricing’ policies, to maintain low prices in price‐sensitive markets.

Now the question arises why particular firms adopt investment strategies or to elaborate the conditions that make such strategies possible or, indeed, the potential risks of attempting such strategies. Such accounts imply that where businesses adopt investment strategies, success necessarily follows. The process of implementing investment strategies and achieving successful outcomes is likely to be much more complex.