Strategic HR - Role Of Strategy In HR Management

Published by MBA Skool Team, Published on November 03, 2012

We have come to an era where a human is no more than a resource. Every company is thriving for the excellence and all the big games of business have considered the human as an important asset. Nowadays these two words (strategic hr) are very common in corporate life. There is no denying the fact that when the merger and acquisition is all at its top, the role of hr has become more significant. But let us understand what is this hr? and how come strategy plays its role in hr management?

If we go through the general opinion hr is nothing but an extra cost to any organization who doesn’t have any quality work to do except for recruitment. Any person can become the hr at ease. But this is not true if you will observe , you will find hr managers are nothing but the managers who are like a fist of a hand. Like fingers of the hand ,every organization has different departments ,but for an organization to run successfully  it is more essential to work as a team with proper co-ordination. Here the role of HR comes .It very much responsible for co-ordinating with all the department of organization and negotiating the problems of individuals because every individual is itself an “ asset”. Not only this, an hr is responsible for many important jobs such as  merger and acquisition, outsourcing of employee, policy making ,performance appraisal etc. So  different strategies are planned by different organizations for success and survival.

Let us understand strategic hr!

Strategic hr defines the employee as an asset on which the success of any organization depends. According to CHARLES R.GREER “Some authors defines strategic human resource management as the effective application of the  organization’s human resource to accomplish the organization’s overall strategies.”In short strategic hrm provides a framework to achieve a long term goal.

Need for strategic hr :

  1. Enhancement of organization’s economic performance.
  2. To survive in the market especially to handle the critical aspects such as outsourcing and merger and acquisition.
  3. To utilize the human resource in the most effective and optimum manner.
  4. To adapt to  various changes in the HR policies and practices in accordance with the government legislations and needs of the time.
  5. To assist the organization in its career and succession planning.
  6. To ensure stability of the organization with contented workforce and appreciation from the stakeholders and the public.

Thus in strategic hr it focuses on performance improvement and competitive advantage.

Hierarchy of strategy





Rightly said by Mr. Benjamin Franklin “Well done is better than well said.” Strategic implementation means those activities which contribute to any organization to achieve their goal .

R Collins has said “Improvement in strategic management of people also require a commitment to sustain long term action.” There are various actions that should be implemented. Some are:-

  1. Formulation of the plan should be objective oriented.
  2. HR strategic intent should be well defined .
  3. Various feedbacks should be used while arriving to any decision.
  4. Staffing is one of the important activity of an HR.
  5. Human Resource Planning
  6. Organizational restructuring.
  7. Linking performance management to mission accomplishment.
  8. Measuring true cost of human resources.
  9. Various incentives should be introduced to decrease the attrition rate.
  10. Selection of the the person according to the nature of the job.

So organization  should amend  the new plans but only after reviewing and making sure if each of the stakeholders are properly communicated. It is well accepted that achieving the result without man power is very difficult.

Activities in strategic human resource

Under this subtitle we will see the activities of hr ,keeping in mind the mission ,vision,objective and goals. Basically these activities are in integration with business strategy. The activities include

1. Policy making

2. Assesment of man power requirement.

3. Philosophical(ethical values are priority)

3.Motivation to the employee.

4.Coordination with all the verticals and getting the feedback of the employee.


Interaction with business strategies

1. Identification of skills: To carry out any business strategy HR needs to identify the skill and knowledge of any employee .With reference to Wright and Mcmahan 1992, one can see the impact of hr on corporate level outcomes.

Above is the framework of Strategy hr management(Wright and Mcmahan 1992).

Here ‘ a’ is resource based view of the firm  ; and ‘b’ is behavioural approach.

Various companies like 3M ,Motorolla, etc. not only designed their strategies but also follow the guidelines for action on people related business issues. Thus policies are very important for the successful implementation of business plan.

2. Model : According to organization structure the hr strategy model varies. According to Bratton J 2003 one of the models is as below:

Controlled base model is a model in which focus is more on actual results and it is outcome based control. Here management directly monitors the employee role performance.

In resource based model, the emphasis is more on workplace learning rather than outcome. In this model the management is more focused on the learning process and believes that outcome can come by following the right process.

Integrative model is the combination of two above stated models. It includes commitment hr strategy, traditional hr strategy, collaborative hr strategy and paternalistic hr strategy.

Thus by above mentioned points it is clear that HR strategy makes any organization more effective and competent in implementing its business strategies.

Legal aspect: While forming any policy one has to consider the legal aspect as its primary motive. The past decades have witnessed many organizations sufferings just because of legal issues. One has to go through each line of factory act, industrial dispute act, trade act and moreover constitution of India if it is intended to do business in India.

So we see strategy hr is playing a very crucial role in every organization .Each of the organizations are thriving for excellence .In such a scenario for the competency one should have a  proper strategy. Moreover one should not forget that strategy hr is a practical implication. In this nothing is right or wrong. An HR should have to stick to the basic knowledge of the hr activities, policies of the organization, structure of organization and apply himself while arriving to any conclusion. Now is the period where an HR has to play the role of LORD KRISHNA and make his organization more competent!!!

This article has been authored by Achintya and Manish Kumar from XIMB.

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