HRM strategy is a businesses overall plan for managing its human capital.
What is an HRM Strategy?
Strategic human resource management (HRM) is an approach to managing people that supports an organisation’s long-term goals with an overall planned and coherent framework.
Organisations may define their own unique strategy according to their specific context, culture and objectives.
Chartered Institute of Personnel and Development
Franchise Development HRM Strategy
As a franchisor/franchisee you will need an HRM strategy to develop your franchise network.
A well-defined strategy determines the size, structure and cost of resources and ensures that HR activity is aligned with your business needs.
A geographically dispersed network of franchisees presents a significant hr challenge which requires alignment of hrm activities.
The key elements of and HRM strategy offered to our clients are set out below.
An HRM strategy translates your business strategy and objectives into human resource activity.
Developing a human resource management strategy for your business is vital. Your efforts to aspire to market leadership, attract and retain employees are likely to be ineffective and inefficient without one.
Aligning business and HR needs
For the simple reason that a HR strategy is linked with your business goals. A complete understanding of your business and its objectives needs to be developed. Accordingly, the strategic direction of your key HR interventions must be underpinned by a comprehensive analysis of your business, the market, competition and the environment in which you operate.
Developing HR strategy
An HRM audit based on your business objectives and business model can identify potential threats and opportunities related to the quality and quantity of your human resources.
This will in turn highlight the key components of your HR strategy that sets out your plan of action in providing the HR interventions required to enhance business performance.
Organisational performance provides a link and rationale for HR activity across the business. The implementation of a robust performance management process sets the objectives for staff at all levels of the business, as well as providing feedback and review of their performance.
Organisational Design and Structure
Organisational design sets the shape, size and structure of the business in order to meet customer needs. This is aligned with business strategy. It reflects the processes that drive the business model and determines the businesses strength and flexibility. Identified weaknesses provide an opportunity to restructure any part of the business by identifying changes, cost reductions and quality improvements.
Strategic resourcing requirements depend on defining the businesses knowledge and skills requirements.
Strategic resourcing depends on the resource needs of the business, recruiting, assessing and selecting the right people.
The resource strategy may also include developing an employer brand to aid recruitment.
An organisational development strategy sets out the way in which the current workforce is changed or improved. This entails initiatives to increase business skills, competencies and behavioural change required to increase organisational performance.
Compensation and Benefits
The purpose of a compensation and benefits system is to align performance of the business with the way it rewards, provides incentives and motivates its employees.
Described as the “way we do things around here” culture is the way in which the organisation acts or reacts. The re-alignment of an organisation’s culture can be beneficial in terms of competitive advantage and improvements in service quality and performance.
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