Strategic formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision.
* Role of hrm in strategy formulation:
* Administrative linkages: Focussed on the functions of day-to-day activities. * One- way linkage: Plan is informed to the HRM function after the planing is done by the strategic business planning function.
* Two- way linkage: Allows for consideration of human resource during the strategy formulation process. * Integrative linkage: Is based on continuing interaction.
Strategic HRM is about how the employment relationships for all employees can be managed in such a way as to contribute optimally to the organizations goal achievement. Fundamental Process Consideration
The process by which strategies come to be realized is not only through formal HR policies or written directions: strategy realization can also come from actions by managers and others. Since actions provoke reactions (acceptance, confrontation, negotiation etc) these reactions are also part of the strategy process. Characteristics Of the process
– The strategy formation process is complex, and excessively rationalistic models that advocate formalistic linkages between strategic planning and HR planning are not particularly helpful to our understanding of it. – Business strategy may be an important influence on HR strategy but it is only one of several factors. – Implicit (if not explicit) in the mix of factors that influence the shape of HR strategies is a set of historical compromises and trade-offs from stakeholders.
Strategic option and choices
The choice of practices that an employer pursues is heavily contingent on a number of factors at the organizational level, including their own business and production strategies, support of HR policies, and cooperative labour relations. Choices should relate to but also anticipate the critical needs of the business. They should be founded on detailed analysis and study, not just wishful thinking, and should incorporate the experienced and collective judgement of top management about the organizational requirements, while also taking into account the needs of line managers and employees generally.
Making the link
The link must be judgemental, but it could still be fairly rigorous. Conceptually, the approach would be to develop a matrix, which for each of the key elements of business strategy identifies the associated key elements of HR strategy. Even if the approach cannot be as rigorous as this, the principle of considering each key area of business strategy and, reciprocally, the HR implications provides a basis for integration.
Overcoming the barriers
To overcome these barriers it is necessary to: 1) conduct a rigorous preliminary analysis of needs and requirements; 2) formulate the strategy; 3) enlist support for the strategy; 4) assess barriers; 5) prepare action plans; 6) project-manage implementation; and 7) follow up and evaluate progress so that remedial action can be taken as necessary.
Implementing HR strategies
Getting strategies into action is not easy. . It must be emphasized that HR strategies are not just programmes, policies, or plans concerning HR issues that the HR department happens to feel are important. Piecemeal initiatives do not constitute strategy.