Human Resources Strategy: The Challenges Of Human Resource Management

2008 Words9 Pages
Before the 1980’s, organizations had no functional HR departments as most of the duties were carried out by the personnel department. Employees basically believed that the HRM function is to serve the management. Therefore, organizations were faced with challenges of recruiting leaders who will manage the department from a more strategic position. It is now recognized that adequate management of personnel play a vital role in organizational success and growth.
Referring to the multinational cooperation with staff strength of 500 employees, 20 managers and an organizational structure in place, from my perspective each department is headed by a functional head. Having survived over the years without a Human resource department, the
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Strategy is determination of an enterprise basic long-term goals and objectives and adoption of courses of action and allocation of necessary resources for carrying out these goals (Chandler, 1962 cited in Armstrong, 2006)
Therefore, Human Resource Strategy can be defined as an action put in place to achieve the overall vision of an organization. In order words every organization has a long term vision and is always driven towards achieving that vision proactively by applying certain measures which is strategy.
In words of Armstrong (2006), “HR strategies set out what the organization intends to do about its human resource management policies and practices, and how they should be integrated with the business strategy and each other”.
Business organizations adopt certain strategies for smooth evolution of business activities with common objective of attaining the organizational set goals which is where human resource management plays a very vital role.
A good HR strategy, as pointed out by (Armstrong, M. 2006):
 Satisfies organizational business
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It provides direction to the company’s talent, operational effectiveness and performance and reward agenda.
Strategy formulation is the process involved in planning and creating organizational goals.
As a multinational cooperation that has experienced growth over the past years, facing both oversea and local competition will be one of the major challenges. In order to respond to this competition, it is very necessary to implement the right HR strategy that will enable the organization to improve the productivity and effectiveness of the business.
This HR strategy should align with the organization’s vision, mission and goals. Formulating an HR strategy involves analyzing the characteristics of the industry, determining the competitive advantage, and figuring out key procedures and people.
Strategy Formulation Process and procedure is represented diagrammatically below: Figure 1: Strategy Formulation and Implementation Process.
Source: Burguillos, B and Lopez, M (2014)
To lead the company forward and achieve competitive advantage, the following strategy will be

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