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
- 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.
- Identifying any HR issues that might impact the business.
- Prioritizing issues and taking action.
- Drawing up the HRM strategic plan.
- The HRM strategic plan consists of six parts.
- Determine the needs of the organization based on sales forecasts, for example.
- Recruit and select the right person for the job.
- Develop training and development opportunities to help better the skills of both existing and new employees.
- Determine compensation.
- 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.
- Why should you develop an HRM strategic plan?
- Which components of your HR plan will you have to change?
- What additional information would you need to create an action plan for these changes?
Team Activities
- 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.
- Based on the SWOT analysis you performed in the first question, develop new objectives for the organization.
