Chapter 3: Developing and Implementing Strategic HRM Plans

3.5 Cases and Problems

Chapter Summary

  • Human resource management (HRM) was once called the personnel management. In the past, hiring people and working with hiring paperwork was the personnel department’s job. Today, the HRM department has a much broader role, and as a result, HR managers must align their strategies with the company’s strategies.
  • Functions that fall under HRM today include staffing, creation of workplace policies, compensation and benefits, retention, training and development, working with regulatory issues, and worker protection.
  • Human resource (HR) strategy is a set of elaborate and systematic plans of action. The company objectives and goals should be aligned with the objectives and goals of the individual departments.
  • The steps to creating an HRM strategic plan include
    1. Conducting a strategic analysis. This entails having an understanding of the values and mission of the organization, so you can align your departmental strategy in the same way.
    2. Identifying any HR issues that might impact the business.
    3. Prioritizing issues and taking action.
    4.  Drawing up the HRM strategic plan.
  • The HRM strategic plan consists of six parts.
    1. Determine the needs of the organization based on sales forecasts, for example.
    2. Recruit and select the right person for the job.
    3. Develop training and development opportunities to help better the skills of both existing and new employees.
    4. Determine compensation.
    5. Appraise performance.
  • As things in the organization change, the strategic plan should also change.
  • To make the most from a strategic plan, it’s important to write the goals in a way that makes them measurable.

Chapter Case: We Merged… Now What?

Earlier this month, your company, a running-equipment designer and manufacturer called Runners Paradise, merged with a smaller clothing-design company called ActiveLeak. Your company initiated the buyout because of the excellent design team at ActiveLeak and their brand recognition, specifically for their MP3-integrated running shorts. Runners Paradise has 35 employees and ActiveLeak has 10 employees. At ActiveLeak, the owner, who often was too busy doing other tasks, handled the HRM roles. As a result, ActiveLeak has no strategic plan, and you are wondering if you should develop a one. Here are the things you have accomplished so far:

  • You have reviewed compensation and adjusted salaries for the sake of fairness, and you have communicated this to all affected employees.
  • You have developed job requirements for current and new jobs.
  • You had each old and new employee fill out a skills-inventory Excel document, which has been merged into a database.

From this point, you are not sure what to do to fully integrate the new organization.

  1. Why should you develop an HRM strategic plan?
  2. Which components of your HR plan will you have to change?
  3. What additional information would you need to create an action plan for these changes?

Team Activities

  1. Work in a group of three to five people. Choose a company and perform a SWOT analysis on that organization, and be prepared to present it to the class.
  2. Based on the SWOT analysis you performed in the first question, develop new objectives for the organization.


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Introduction to Human Resource Management - First Canadian Edition Copyright © 2017 by Zelda Craig and College of New Caledonia is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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