Human Resource Strategy and Organizational Strategic Planning Analysis

This report provides an in-depth analysis of human resource (HR) strategy within modern organizations. It defines HR strategy, emphasizing its role in guiding key HR areas like performance appraisal, compensation, and development. The report highlights the importance of integrating HR into o...Read More

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Human Resources Development
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Introduction
The objective of this paper is to analyse the term human resource strategy in modern organisations.
This paper will also evaluate the role of including human resource while preparing organisational strategic
plan by companies. Lastly, how companies can built strong team and improve team as well as individual
performance by focusing on strategic human resource planning will be analysed.
Human Resource Strategy
In today’s time of globalisation, it is essential for companies to adapt human resource (HR) strategy
in the business. This strategy is defined for companies that form the structure of targets they need to achieve
in HR. In business, it is essential to manage the human capital where HR strategy help companies in
planning while setting the direction for key areas overall of HR that involves performance appraisal,
compensation, hiring, and development. It is used in planning for long-term along with dictating HR
practices throughout a company (Buller & McEvoy, 2012). The characteristics of this strategy includes need
on analysing both internal and external environment of an organisation, taking longer than a year to execute,
shaping the human resources management (HRM) direction and character for its activities, and helping the
allocation and deployment of organisational resources such as time, money, personnel and others. Other than
this, it also includes revising on annual basis, incorporating the judgement of an expert of top-level HR
management, driving numbers, and resulting in a specific behaviour. HR strategy helps in originating and
impacting business performance and HR execution. Its formulation is based on the previous and current
activities overall based on an organisation’s internal capabilities (Thiefels, 2018). This strategy consists of
learning and development, recruitment, compensation, performance appraisal, and succession planning
which involves its vision and mission statement as well with high-level and concrete actions.
Human Resources in Organisational Strategic Plan
Effective strategic planning enables companies to generate a competitive advantage in the market
which allows them to stay relevant even in changing business environment. While implementing these

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strategic policies, organisations have to make sure that they focus on their human capital requirements to
hire adequate number of members that allow them to effective conduct their business operations.
Organisational strategic plan must include policies relating to human resource management to make sure
that the management is able to determine the human capital requirement and implement recruitment and
selection strategy to hire adequate number of talented staff members (Macfadyen & Dawson, 2012). This
plan is focused on achieving corporate goals of a company by focusing on allocating resources and
implementing policies that are targeted towards increasing overall productivity of the company. This plan
also allows organisations to determine the process of recruitment and selection of employees to make sure
that they screen their candidates properly and select the right candidates that allow them to contribute to
building highly efficient teams. By making the human resource planning a part of the organisational
strategic plan, organisations are able to prepare themselves for the changing business environment by
making sure that their build a strong workforce that changes along with the requirements (Aryanto, Fontana,
& Afiff, 2015). This plan also include policies relating to training and development of current workers to
make sure that the company is able to develop their skills and knowledge which foster innovation in the
workplace and improve its overall effectiveness.
Improvement in team and individual level performance
Strategic human resource planning is able to improve the level of performance of teams and
individuals by ensuring that organisations are able to use proper tools and models which are necessary to
build high performing teams. Through planning, companies are able to identify gaps in their current
procedures to make sure that they are able to implement necessary policies in order to achieve their
corporate goals. The planning also allows them to prepare for the changing workplace requirement because
they are able to assess their current HR capacity and find the need for development of skills and knowledge
of their current workers (DeNisi & Smith, 2014). They are able to forecast HR requirements along with the
need for training and development programs which are crucial to make sure that employees are able to
develop their skills which directly contributes to their performance. They are also able to evaluate employee
remuneration and benefit programs which increase their job satisfaction level that is crucial in order to

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motivate them (Tannenbaum & Cerasoli, 2013). They are able to review and evaluate the performance of
employees to make sure that constructive criticism is given them to that improve their overall performance
which assist companies in building high performing teams.
Conclusion
Based on the above observations, it can be concluded that effective focus on human resource strategy
generates a competitive advantage by ensuring that they have adequate human capital to conduct their
business operations. While implementing organisational strategic plan, human resource should be included
to make sure that necessary actions are taken to build and retain current workplace. Furthermore, the
performance of team and individuals can be improved through human resource planning as it promotes job
satisfaction and motivation among employees while developing their skills.

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References
Aryanto, R., Fontana, A., & Afiff, A. (2015). Strategic human resource management, innovation capability
and performance: An empirical study in Indonesia software industry. Procedia-Social and
Behavioral Sciences, 211, 874-879.
Buller, P., & McEvoy, G. (2012). Strategy, human resource management and performance: Sharpening line
of sight. Human resource management review, 22(1), 43-56.
DeNisi, A., & Smith, C. (2014). Performance appraisal, performance management, and firm-level
performance: A review, a proposed model, and new directions for future research. Academy of
Management Annals, 8(1), 127-179.
Macfadyen, L., & Dawson, S. (2012). Numbers are not enough. Why e-learning analytics failed to inform an
institutional strategic plan. Journal of Educational Technology & Society, 15(3), 149-163.
Tannenbaum, S., & Cerasoli, C. (2013). Do team and individual debriefs enhance performance? A meta-
analysis. Human factors, 55(1), 231-245.
Thiefels, J. (2018, January 16). 5 Pillars of a Successful HR Strategy. Retrieved from Achievers:
https://www.achievers.com/blog/5-pillars-successful-hr-strategy/