Human resource management strategy: Concept and how to build

Building a human resource management strategy is one of the important factors to ensure the sustainable development of the enterprise. Human resource management strategy is a long-term action plan of the enterprise on how to attract, develop, train, evaluate, reward and retain talent. The strategy needs to be consistent with the business strategy, goals and culture of the enterprise.

WHAT IS HUMAN RESOURCE MANAGEMENT STRATEGY?

According to the definition of Harvard Business Review, human resource management strategy is “a set of decisions and actions related to the management of an organization’s employees, to support the business strategy and create value for customers”. Strategy includes activities such as: job design, recruitment and selection of personnel, training and development of personnel, performance appraisal and compensation of personnel, labor relations management, etc.

 IMPORTANCE OF BUILDING HUMAN RESOURCES STRATEGY

• Enhance the flexibility, innovation and competitive advantage of the business in the face of market challenges and opportunities.
• Develop in line with the purpose of organizational culture, create a positive working environment, encourage creativity and innovation.
• Improve business performance, increase labor productivity, improve service quality, reduce turnover rate, increase customer satisfaction.
• Increase job satisfaction, employee engagement and commitment to the business.
• Better working culture, reflecting the core values ​​and principles of the business.
• Improve customer satisfaction, create trust and prestige for the business.

STEPS TO BUILD A BUSINESS HUMAN RESOURCE MANAGEMENT STRATEGY

To build an effective strategy, businesses need to take the following steps:

• Analyze human resource needs: This is the step of assessing the current situation and forecasting the future human resource needs of the enterprise. Enterprises need to determine the quantity, quality, skills, abilities and attitudes of existing and desired human resources. Enterprises also need to analyze factors affecting human resource needs, such as market trends, technology, laws, business strategies and organizational culture.
• Develop human resource goals and strategies: This is the step of determining specific goals and specific strategies to meet the enterprise’s human resource needs. Objectives may include: increasing labor productivity, improving service quality, reducing turnover, creating a positive work environment, encouraging creativity and innovation. Strategies may include: job design, recruitment and selection, training and development, performance appraisal and compensation, and labor relations management.
• Design and implement action plans: This is the step of planning in detail for each human resource management strategy and implementing the plan in practice. The action plan should clearly identify the activities to be performed, responsible persons, time, resources, and results targets. The action plan also needs to be clearly communicated and agreed upon with stakeholders, such as the board of directors, other departments within the business, and external parties.
• Evaluation and adjustment: This is the step of monitoring and evaluating the effectiveness of the HR management strategies and action plans. Businesses need to collect and analyze data on employee performance, customer satisfaction, revenue and profit, organizational culture, and other indicators. Businesses also need comments and feedback from stakeholders, such as employees, customers, partners, and competitors. Based on the assessment results, businesses need to promptly adjust strategies and action plans to match reality and goals.

Building a human resource strategy is a continuous process and requires the participation of many parties inside and outside the business. Businesses need to have a clear vision of the role of human resources in the success of the business and have a high commitment to effectively implement human resource management strategies.

HRM PLUS – EFFECTIVE HUMAN RESOURCE MANAGEMENT SOLUTION

HRM Plus is the optimal human resource software that helps businesses digitize human resource management processes such as updating employee information, recruiting, training and development, calculating salaries, timekeeping… This will definitely be a comprehensive solution to help your business effectively transform digitally in the era of technology 4.0.

To experience the software right now HRM Plus please contact ADSMO via Hotline: 0356.105.388. We will advise and support businesses on Administrative – Human Resources issues.

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