HR strategy:

HR Strategy is the strategy adopted by an organization which aims at integrating an

organization’s culture, its employees and system by coordinating a set of actions to get the
required business goals. Therefore it must be aligned to organization’s mission, vision and goals.
The characteristics of the industry in which the organizations is to be analyzed and its
competitive advantage need to be determined for developing an HR strategy.
The four key dimensions must be addressed in order to develop HR strategy:
1. Culture: It is the beliefs, rules and style of management of the organization
2. Organization: It is the structure, job types, job descriptions and reporting lines of the
organization.
3. People: The most important part of the organization is its people. The skills level, employee
potential and the capability of the management constitutes the people.
4. Human Resources Systems: It is the people focused mechanism which deliver the correct
strategy for the organization- recruitment, communications, training and development,
compensation and benefits etc.

Managing Of Diversity:
Diversity management is the strategy of using best practices with proven results to find and
create a diverse and inclusive workplace. Successful strategies linkdiversity progress directly to
business results.
importance of diversity management:
Cultural diversity is important because our country, workplaces, and schools increasingly
consist of various cultural, racial, and ethnic groups. We can learn from one another, but first we
must have a level of understanding about each other in order to facilitate collaboration and
cooperation.
challenges of diversity management:
Hiring a diverse staff for your business creates a workforce that possesses a wide range of skills,
talents and ideas. It is your job to make the most of the diversity present in your company.
Challenges exist in guiding a population that differs in personalities and cultures, but you can
overcome these difficulties so your business prospers.
1. Language Issues
2. Respect
3. Fairness
4. Inclusion
Human Resource Outsourcing:

Human resources outsourcing is when businesses hire companies to manage personnel functions.
That includes administration of health benefits plans, retirement plans, and workers’
compensation insurance. It also includes hiring, training, and legal expertise.

Smaller companies hire them to administer payroll, pay employment taxes, and manage risk.
The average size of a company that uses HR outsourcing is 19 employees.

The outsourcing firm pools thousands of businesses together. The economy of scale lowers the
cost of these HR services. The recession increased the rate of this type of outsourcing
Advantages

HR outsourcing reduces the fixed cost of managing employees. These human resources firms are
more efficient than hiring new workers. The talent and infrastructure are already in place. Small
businesses save money and time by hiring HR firms.

That's a great advantage to small businesses. They can offer a wider range of these following
benefits.

 Health insurance options. These include as Health Maintenance Organizations, Preferred

Provider Organization, and Health Savings Accounts.
 Dental, vision, and health insurance plans.
 401(k), retirement plans and credit unions.

 Voluntary benefits, such as cancer, travel, and long-term disability plans.

Small businesses are more likely to outsource other human resource functions. These include
payroll administration and recruitment. Few of them outsource everything. They usually keep
HR staff to communicate with employees in core business areas.

Disadvantages

The most significant drawback is poor internal communication. The outsourcing company
doesn't have a good sense of the company's culture. Employees can't just drop into the HR office
if it's off campus. As a result, they may feel disenfranchised.

Human resource departments facilitate organizational learning.

They provide a continuing thread that supports corporate identity. When employees feel like they
are an essential part of the whole, they are more likely to share knowledge. Organizations must
adapt quickly to changes in today's technology-oriented business world. Outsourcing the human
resources function could retard organizational learning.

There are many ways in which outsourcing human resources can be done:
 Business process HR outsourcing (also known as BPO), where an external supplier manages
discrete HR activities, such as payroll administration or recruitment, or perhaps the whole human
resources function.

 Shared service HR outsourcing, where only the transaction or administrative elements of HR’s
activities are subcontracted to an external supplier. This may include the personal interface with
employees.

 Application (and facilities) service HR outsourcing, where external providers look after the
technological (and physical) infrastructure to support human resources activities.
Outsourcing human resources or some of its processes to an external provider is a major business
decision as, while it may be cost-effective, it introduces new elements of risk, including:

 Loss of control

 Impact on the employer/employee relationship

 Loss of flexibility

 Failure to deliver cost benefits

 Legal or regulatory requirements

 Industrial relations issues

Global sourcing:
refers to seeking goods and services beyond one’s borders, i.e., from the global market. It is a
procurement strategy in which companies try to find the most cost-efficient place globally for
manufacturing goods. According to purchasing and procurement professionals, companies
should be able to source both inside and outside their national borders. They are then
subsequently better able to compete.
Pros
– You can learn how to succeed in a new market.

– Your company may find new business contacts, and maybe even new customers, abroad.

– If you find a new and cheaper supplier, you can compete against your rivals more effectively.

– Finding new suppliers means you become less reliant on just one or two.

– You may be better able to increase your company’s technical capabilities by doing business
abroad. There might also be an opportunity to increase manufacturing capacity.
Cons

– Hidden costs related to the time and effort employees spend learning about different countries
are higher. For young companies, especially, these hidden costs may be high.

– Your company runs the risk of having legal problems abroad.

– Doing business abroad may also come with financial and political risks. In the emerging
economies especially, the risk tends to be higher.

– Your intellectual property is at greater risk when you adopt a global sourcing
strategy. Intellectual property refers to patents, trademarks, slogans, etc.

HR planning:
Human resource planning, or HRP, is the ongoing, continuous process of
systematic planning to achieve optimum use of an organization's most valuable asset —
its human resources. The objective of human resource planning is to ensure the best fit
between employees and jobs while avoiding manpower shortages or surpluses.
Human resource planning is a process that identifies current and future human resources needs
for an organization to achieve its goals. Human resource planning should serve as a link between
human resource management and the overall strategic plan of an organization. Ageing workers
population in most western countries and growing demands for qualified workers in developing
economies have underscored the importance of effective human resource planning.

implimentation strategy

1. Assessing the current HR capacity

Develop a skills catalog for your employees so that you have a clear understanding of what
your staff currently holds. This employee catalog should include everything from volunteer
activities to certifications, of all degrees not just topics pertaining to their particular position.
These catalogs can be assessed to deem whether or not an employee is ready to add more
responsibility, or to forecast the employee's future development plans...

Forecasting HR requirements

 This step includes projecting what the HR needs for the future will be based on the strategic
goals of the organization. Keep in mind you will need to also accommodate for external
challenges that can affect your organization.
 Some questions to ask during this stage include:
  Which jobs will need to be filled in the upcoming period?
 What skill sets will people need?
 How many staff will be required to meet the strategic goals of our organization?
 Is the economy affecting our work and ability to appeal to new employees?
 How is our community evolving or expected to change in the upcopming period?

3. Gap analysis

 During this step you will observe where your organization is currently, and where you want
to be in the future. You will identify things such as, the employee count, and the skills
evaluation and compare it to what will be needed to achieve your future goal. During this
phase you should also review your current HR practices and identify what you are doing that
is useful and what you can add, that will help you achieve your goal.
 Questions to answer in this stage include:
 What new jobs will we need?
 What new skills will we need?
 Do our present employees have the necessary skills?
 Are employees currently aligned to their strengths?
 Are current HR practices adequate to meet our future goal?

4. Developing HR strategies to support the strategies of the organization.

There are 5 HR strategies that you can follow to meet your organizational goals.

 Restructuring strategies
 This includes reducing staff, regrouping tasks to create well-designed jobs, and
reorganizing work groups to perform more efficiently.
 Training and development strategies
 This includes providing the current staff with training and development opportunities
to encompass new roles in the organization
 Recruitment strategies
 This includes recruiting new hires that already have the skills the organization will
need in the future.
 Outsourcing strategies
 This includes outreaching to external individuals or organizations to complete certain
tasks.
 Collaboration strategies
 This includes collaborating with other organizations to learn from how others do
things, allow employees to gain skills and knowledge not previously available in
their own organization.
 Six steps in human resource planning are presented
 Analysing Organizational Objectives: ...
 Inventory of Present Human Resources: ...
 Forecasting Demand and Supply of Human Resource: ...
 Estimating Manpower Gaps: ...
 Formulating the Human Resource Action Plan: ...
 Monitoring, Control and Feedback: