Importance Of Human Resource Strategy

994 Words4 Pages
HUMAN RESOURCE STRATEGY

INTRODUCTION TO HUMAN RESOURCE STRATEGY
Human resource refers to the people who work in an organization. They are considered the most important resource in an organization. Human resources have the potential in providing competitive advantage hence there is rising importance for the strategic role of human resource management.
Human resource strategy involves planned and effective use of human resource in order to get a competitive edge over the competitors. There are 4 aspects of human resource strategy namely;
1) The use of planning in human resource management
2) An integral approach to the design and implementation of HR strategy
3) Coordinating HRM policies formulated with the business strategy established by the
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ROLE IN STRATEGY FORMULATION:
The environmental analysis is followed by strategy formula¬tion. Environmental scanning helps an organization to identify its opportunities and threats prevalent in the external environment. Here, HRM is essential for analyzing the existing (external) environment, and thus, identifies the specific opportunities and threats of it for the organization.
Besides, HRM is also of great help to make the organization competitive and make the best use of intellect available. This may include the incentive plans being used by the competitors, customer services, labour policies and practices.
HR also participates in strategy formulation process by supplying information regarding the company’s strengths and weaknesses from within the corporate structure. Instances are available to mention that the unique HR capabilities of an organization serve as a driving force in strategic options and strategy formulation. For example IBM’s decision to buy Lotus was probably a result of its internal sources of information which suggests that its own resources were inadequate to allow the firm to alter itself as an industry leader in the field of business
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Along these lines, HRM assumes a critical part in the fruitful execution or usage of organization's strategic business plan .

Maruti Udyog and Hindustan Motors are two. We realize that Maruti Udyog and Hindustan Motors are fabricating autos, basically utilizing indistinguishable innovation. The secret behind the success and rise of Maruti Udyog is its human asset/workforce.

HRM strategy supports the function of strategy implementation in some different ways. For instance, HR is today vigorously included in the execution of procedure as cutting back and rebuilding methods, all through setting workers founding execution connected pay arrangements, decreasing medicinal services expenses and retraining representatives. Indeed, in an increasingly competitive world, founding HR practices that construct representative duty can help enhance an association's responsiveness.

KEY ELEMENTS OF HUMAN RESOURCE STRATEGY
1. HR POLICIES
HR policies are guides to actions. It is a set of proposals and actions that act as reference point for managers in their dealings. Management should pay attention to the following aspects of HR
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