HR Strategy Management

Strategic human resource management has three main objectives: 

  • achieve integration – The alignment of HR strategies with business strategies and the horizontal integration of HR strategies is imperative for the success of the HR and business strategies.
  • provide a sense of direction – Next is to provide a sense of direction in a business environment that is often chaotic. However, regardless of the chaos, the needs of the organization, individual employees, and the stakeholders collectively must be met. This is done in part by developing and implementing clear and reasonable HR policies and programs.
  • contribute to the design for the business strategy – This is done by highlighting ways in which the organization can take full advantage of the strengths provided by its human resources.

Simply put, strategic human resource management is a mind-set supported by specific concepts. It's a way to define how to achieve the organization's goals through people, HR strategies, and cohesive HR policies and practices. 

General HR strategies

There are also three general types of HR strategies: 

  • high performance – A high-performance management strategy employs high-performance work systems to have a positive effect on the performance of the company. The systems are practices that accelerate employee performance and increase engagement, motivation, and skills that ultimately improve productivity, quality, customer service, growth, and profits.
  • high commitment – Management is defined in part by characteristics that stress the importance of organizational commitment and trust. With these in place, employees will generally self-regulate and there should be little need for restrictions and penalties.
  • high involvement – Management uses a specific group of HR practices that provide employees with opportunities, skills, and incentives. With these tools, they can be successful as the business environment requires greater levels of involvement and commitment.

Functional and operational HR strategies

There are several functional and operational HR strategies that you should be aware of as you prepare for the certification exam:

  • human capital management is obtaining, analyzing, and reporting on data that informs the direction of value adding, people management, strategic investment, and operational decisions
  • knowledge management is creating, acquiring, capturing, sharing, and using knowledge to enhance learning and performance
  • corporate social responsibility is the organization's commitment to managing the business ethically in order to make a positive impact on society and the environment
  • organization development is planning and implementing programs designed to enhance the effectiveness with which an organization functions in response to change
  • talent management is how the organization ensures that it has the talented people it needs to achieve success
  • employee relations is defining the interactions of the organization concerning what needs to be done and what needs to be changed regarding the ways the organization manages its relationships with employees and – where appropriate – the unions

The role of senior HR professionals

Some of the key strategic responsibilities for senior HR professionals include 

  • participating in the development of the organization's business strategy in order to ensure that it is aligned with the organization's goals and objectives
  • developing and implementing an HR strategy that is aimed at driving business results; this requires the HR strategy to be in complete alignment with the organization's business strategy, goals, and objectives
  • identifying key talent requirements and ensuring the necessary HR policies and systems are in place to successfully execute the business strategy
  • helping develop and evaluate business cases for proposed HR initiatives and projects and providing the same type of support for business partners in other functional areas 
  • developing strategies for employment branding that will successfully reach potential employees and other stakeholders