creative HRM

HR Strategy:
What is it?
Why do we need it?
How we can build the eective HR Management function
in the organization achieving challenging business goals

ter, 10. z 13

Content
(1) About cHR
(2) Current (HR) Industry Status
(3) HR Strategy: What is it?
(4) HR Strategy: Why do we need it?
(5) HR Strategy: How to design the innovative one?

creative HRM
ter, 10. z 13

About
creative HRM is a website covering many HR related
topics... HR Management, HR Management Practices,
HR Strategy, HR Models, HR Business Partnering Model,
HR Processes, HR Development, Organizational
Design ...
The website is new and fresh, a lot of new content will
be added during 2013. Please, follow creative HRM as
you do not miss any news... cHRM Twitter

Please, feel free to visit creative HRM

creative HRM
ter, 10. z 13

Current HR
Industry Status
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Current Business World

Highly competitive environment... each company can copy and

paste products
High levels of uncertainty ... the growth era in the industry gets
shorter and products replaced quickly
Generation Y is not loyal with the employer ... they are loyal
just with their values
Green business as a priority for the modern western
organization
Constant cost cutting pressure from shareholders and
competitors
State protection on the rise ... again
New competitors from emerging marketing growing each day
creating the additional pressure on prices

creative HRM
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Current HR Industry

Global workforce management ... aligning and unifying

many dierent cultures in one organization
Global talent management and implementation of
global relocation policies
Increasing performance pressure ... while (try to)
keeping employees satised
Global HR processes blocking the local exibility
Permanent ght with increasing costs of employment
Shifting jobs globally, building the operational centers
around the Globe
Changing HR environment

creative HRM
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HR Industry: Trends

Hiring talents globally to ensure that all positions in the organization are
staed with the best talents
Supporting innovations to build the sustainable competitive advantage
Building highly diverse teams as each team can have members from
dierent continent and from a completely dierent cultural background ...
setting new rules for the team work and gaining the right team spirit
Working with the older employees ... the company gets older, the
employees get older as well ... keeping the young spirit inside the
organization is the challenge and a trend
Pushing responsibility down the chain while keeping global and local
policies ... the global organization is not agile, the local organization cannot
be controlled eciently ... HR has to nd the right balance between global
policies and the local execution
Less permanent employees and more project based employees ... the lifetime employment is the word from the history ... the organization cannot
oer the certainty, the employees do not oer the loyalty... the project
based employment will be on a rise

creative HRM
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HR Strategy:
What is it?
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Tactical and Strategic HR

Tactical HR
1. Primary focus on the proper
administration of employee related
issues and documentation.
2. Setting restrictive HR policies and
procedures to administer various
compensation actions, rigid variable
schemes, which do not allow exceptions,
exible approach, creativity and
innovations.
3. Enforcement of policies and keeping all
employee records correct.

Strategic HR
1. Primary focus on achieving of business and
HR goals and objectives. Stimulating
dialogue among top executives to shape
the HR strategy.
2. Aligning the reward system and the
compensation strategy around general
business goals to ensure the required
performance of employees.
3. Running succession planning program for
the entire organization to ensure the
smooth transition of know-how.

4. Pure focus on traditional HR processes

like hiring, workplace safety and hard
skills training.

4. Constant redesign of HR processes to allow

employees to be creative and innovative,
while sticking to general HR policies and
procedures.

5. Providing basic HR reports with no deep

analytical insight.

5. Designing training programs that ensure

the development of the corporate culture.

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HR Strategy: What is it?

Organizational Strategy

HR Management

Organization
Development

HR Strategy connects the business strategy with the eort of

Human Resources to build a better and competitive organization
and aligns top executives with the HR team
Sets clear objectives for HR in the areas of the talent development,
succession planning and organizational development to ensure the
future of the organization
Denes the key principles for the compensation and organizational
design strategy as the organization keeps itself thin and quick
Brings a clear border between global and local decision making
processes allowing to act to HR Manager autonomously
Denes key areas which will be used as the competitive advantage
on the job market
Identies gaps in the people management area which have to be
improved in a dened time frame

creative HRM
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HR Strategy:
Why do we need it?
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HR Strategy: big why

1. Designing the modern HR organization requires the
strategy.
2. A strategic shift in HR Responsibilities requires the strategy,
which is aligned with business objectives.
3. Change of HR Roles and Responsibilities has to be driven
by outcomes from the strategy implementation.
4. Award winning HR function has the innovative HR Strategy.
5. A fast moving company requires the strategic HR
management (dicult to achieve without any strategy).
6. The HR Strategy does support strategic decisions. The cost
ecient organization always makes decision supported by
strategies.

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How to design the

innovative HR Strategy?
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HR Strategy:
Design and Implementation
1. Assess the readiness for change. Assess HR team and the entire organization.
Use HR SWOT Analysis. Develop the HR Strategy for the next few years.
2. Develop the basic HR framework, which will support the change to being the
strategic partner.
3. Clearly dene the role of the HR Leader in the organization. Be the architect.
Get the approval.
4. Dene the changed role of the line management in the people management.
Clearly dene owners of the HR Strategy. Dene who will execute the
strategy, dene the strategic split of roles.
5. Clarify roles in Human Resources. Dene specialist and generalist roles.
6. Design the new HR Organizational Structure.
7. Fill the structure with upgraded talents.
8. Let talents dene sub-strategies and upgrade the HR Strategy to the nal one.
9. Do the strategic HR.

creative HRM
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Want to know more?

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Please, feel free to visit creative HRM

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About
creative HRM is a website covering many HR related
topics... HR Management, HR Management Practices,
HR Strategy, HR Models, HR Business Partnering Model,
HR Processes, HR Development, Organizational
Design ...
The website is new and fresh, a lot of new content will
be added during 2013. Please, follow creative HRM as
you do not miss any news... cHRM Twitter

Please, feel free to visit creative HRM

creative HRM
ter, 10. z 13