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

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 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 life-
time 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

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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.
4. Pure focus on traditional HR processes
like hiring, workplace safety and hard
skills training.
5. Providing basic HR reports with no deep
analytical insight.
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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. Constant redesign of HR processes to allow
employees to be creative and innovative,
while sticking to general HR policies and
procedures.
5. Designing training programs that ensure
the development of the corporate culture.
creative HRM
 HR Strategy: What is it?

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
Organizational Strategy HR Management

Denes the key principles for the compensation and organizational

design strategy as the organization keeps itself thin and quick

Organization
Development 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

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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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 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