Integrative Approach in Human Resources Strategy Formulation

Human Resources Management Assignment

Integrative approach in human resources strategy formulation

Introduction

HR strategy is the pattern of HR-related decisions in an organization.

Human resource management has become more important to general management, largely as a result of its role in providing competitive advantage and an awareness of the demands of the technologically advanced environment of the future. According to Michael porter, human resources management is the key to obtaining competitive advantage in the industry.

There is greater recognition within organizations that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes, and systems. This is in contrast to traditional emphasis on transferable resources, such as equipment that can be purchased by competitors. Increasingly, it is being recognized that competitive advantage can be obtained with a high-quality workforce, which enables organizations to compete on the basis of market responsiveness, product and service quality, differentiated products, and technological innovation, instead of reliance on low costs.

The process of human resource management in any organization cannot be a static phenomenon considering dynamism and continuous changes of the environment. While developing an appropriate strategy for human resources of the organization, human resource management sub processes such as recruitment, employment, human resource development, performance management and reward, promotion, maintenance and personnel relations can all be designed and developed in a coordinated assortment and with utmost productivity.

The integrative model of human resource strategy discussed in this paper is a formulation derived from the combination of rational and progressive approaches, relying on strategic reference points and especially the two main variables: the amount of attention to internal labour market or external labour market in addition to the quantity and quality of control over labour process or labour product,

It defines four major strategies:

• Paternalistic,
• Commitment,
• Secondary and
• Free-Agent

Logical models in human resource strategy development:

These models were developed in the mid-80s with rational-logical approach, based on organization strategy. Here organizational strategies dictate and direct human resources strategy for the organization as depicted in the model.

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