Personnel strategy is .. Politics, goals, principles

HR strategy is a set of tools, methods, principles and goals of working with personnel in a particular organization. These parameters may vary, depending on the type of organizational structure, the scope of the enterprise, as well as the situation in the external environment.

HR Strategy Content

An organization’s personnel strategy should provide answers to a number of significant questions. Namely:

• How many workers of a certain skill level will be needed at a particular point in time?
• What is the situation on the labor market?
• Is HR management in the organization right now?
• How can we bring the number of employees to the optimal indicator (hiring and dismissal) in compliance with social requirements?
• How to maximize the ability of employees to achieve the global goal of the organization?
• How to bring staff qualifications in line with ever-growing requirements?
• What are the costs of personnel management and what are the sources of funds?

Why is a personnel strategy needed?

HR strategy is an important mechanism for organizing the work of an enterprise. It contributes to such positive processes:

• strengthening competitiveness in the labor market, as well as in the main field of activity;
• effective use of strengths and neutralization of weaknesses when working with the environment;
• creation of conditions for the most efficient use of personnel potential;
• the formation of a qualified and competent work team;
• disclosure of the creative abilities of staff for the innovative development of the organization.

HR Aspects

The organization’s personnel strategy covers a number of significant aspects. Namely:

• improvement of personnel management techniques;
• optimization of the number of employees (taking into account the current situation and the forecasted situation);
• increasing the efficiency of personnel costs (wages, additional remuneration, training, and so on);
• staff development (adaptation, career advancement, advanced training);
• corporate culture development.

Influence factors

Personnel strategy is a mechanism subject to external influences. Its content depends on factors such as:

• organization life cycle stage;
• global enterprise development strategy;
• the level of qualification of the personnel manager and his personal outlook on the problem;
• level of management in the organization;
• financial situation at the enterprise;
• degree of employee satisfaction with working conditions;
• legislation governing work with staff;
• environmental impact.

HR strategy development

The development of personnel policies and management strategies implies the following points:

• Planning the future needs of employees, based on production capacity, applied technology, dynamics of changes in the number of jobs.
• Analysis of the current situation in the personnel sphere in order to identify the excess number or deficit of workers of a certain category.
• Development of a system of measures to optimize the number and quality of staff.
• Optimization of the correlation between internal movements of employees and the attraction of new personnel from outside.
• Development of a system and principles of remuneration of workers of various categories and qualifications.
• Employee career development planning and advanced training related to the development of scientific and technical progress.
• Determination of principles and forms of employee performance assessment.
• Planning the cost of paying remuneration for labor, as well as covering social guarantees.

Principles of Strategy Formation

The development of a personnel strategy should be carried out in accordance with the following key principles:

• Versatility. The strategy should be comprehensive. When forming it, not only the interests of the organization’s management should be taken into account, but also the needs of the labor collective and possible impact on the external environment.
• Formalization of business processes. Each employee should be clearly aware of their role in the implementation of the personnel strategy.
• Personality of the motivation system. Each employee should be provided with clear information about what and how he should do in order to get the maximum remuneration for work.
• Social orientation. A personnel strategy should ensure not only the achievement of the goals of the company, but also contribute to the improvement of working conditions.

The relationship between staffing and global strategy

The strategy of personnel policy of personnel is influenced by the global strategy of the enterprise and vice versa. The table describes the main types of relationships.

Human Development Phases

When developing and implementing the chosen strategy, the personnel potential undergoes such basic stages of development:

• Chaotic response to changes in the internal and external environment.
• Narrow strategic planning associated with the prediction of possible future complications. Variants of response actions are being developed in order to normalize the situation.
• Management of strategic opportunities to identify internal capacity for adaptation in a changing environment. In this context, not only solutions to problems are forecasted, but also the necessary level of staff professionalism.
• Real-time strategy management. It implies continuous monitoring of implementation and timely changes.

The main types of strategies

There are such main types of personnel strategies of the enterprise:

• Consumer. The interests of employees are aligned with the common interests of organizations. Nevertheless, management refers to personnel, primarily as a resource, and each employee uses the organization to meet their own needs (in wages, self-realization, and so on).
• Affiliate. There is a consistency between the values ​​and goals of the organization and employees. A mutually beneficial partnership has been established between the personnel management. Each employee seeks to increase his contribution to the organization, and managers try to maximize the working conditions and standard of living of subordinates.
• Identification. The relations between employees and managers are built on the basis of the coordination of goals and values. Workers strive to realize their potential for the development of the enterprise. At the same time, management invests in the development of employees, realizing that achieving the goals of the enterprise depends on it.
• Destructive. This is a negative version of the strategy in which managers and subordinates do not recognize each other's goals and values. Leadership style is based on situational interests. In destructive situations, managers and subordinates can undermine each other's reputation.

Characteristics of Consumer Strategy

At enterprises in which a consumer HR strategy is adopted, personnel management is characterized by certain parameters. Namely:

• There is a hidden outflow of qualified personnel caused by dissatisfaction with the conditions and results of labor.
• Employees are used to the maximum on those types of work that do not require the introduction of innovation.
• The main motivational tool is the provision of benefits.
• Remuneration for labor is formed on the basis of formal criteria (position).
• Human resources work is provided with minimal efforts and resources that are necessary to maintain stable work.
• Planning for staffing needs is not ordered, but spontaneous.
• The management does not carry out work on managing the career of employees, nor does it form a personnel reserve.
• The main work on personnel management is to monitor the implementation by employees of their job descriptions.
• The formation of corporate culture is due to the artificial manipulation of ethical standards.
• There is no sense of mutual responsibility between management and staff.

Affiliate Strategy Feature

The partnership strategy of the organization’s personnel policy is characterized by the following key points:

• The staff turnover is caused by sharp changes in the strategic direction of the enterprise.
• Management cares about the development of those employees who are able to ensure the implementation of innovative ideas.
• The amount of remuneration for labor is determined by the contribution of a particular employee in achieving goals.
• Motivation is aimed at encouraging self-development of employees.
• Significant financial resources flow into motivational, social and educational programs for employees.
• Management strongly supports the initiative of valuable employees.
• The selection of new employees is based on objective competency parameters.
• Managers take care of the formation of a personnel reserve for key specialties.
• Constant monitoring of the socio-psychological situation in order to maintain favorable conditions.
• Business interaction is carried out in compliance with ethical standards.

Identification of HR Strategy

This mechanism is applicable in enterprises characterized by stable growth. Personnel identification personnel strategy is characterized by the following features:

• The influx of new personnel is systematic and orderly.
• The staff is fully balanced in all key indicators.
• The quantitative and qualitative composition of the staff is stable, and the turnover is caused solely by objective factors.
• The calculation of wages is strictly individualized and depends on the personal efforts of the employee.
• The employees who show the highest level of commitment to the organization's values ​​are encouraged.
• The priority is investments aimed at developing the professional potential of employees.
• Between leaders and subordinates there is mutual trust and mutual respect.
• The selection of new employees is based on the personal potential and value orientations of applicants for the position.
• A regular assessment of employees' activities is carried out in order to identify weaknesses and conduct corrective measures in this area.
• Vacant posts are filled mainly from our own personnel reserve.
• Staff planning is long-term.
• Between employees and managers there is a mutual social responsibility.
• Each employee directs his efforts to maintain the image of the organization.

Effective Strategy Tips

An effective personnel strategy is one of the guarantees of the successful functioning of the organization. When compiling it, you need to be guided by such expert advice:

• Compliance with the overall development strategy of the enterprise. A personnel policy should not contradict or go against a global goal. Moreover, it should support it and facilitate effective implementation. If any changes occur in the overall strategy, adjustments should also be made to the personnel component.
• The development process should involve not only senior management, but also executive staff. Through collegial efforts, it will be possible to achieve a balance between the needs of the organization and the needs of employees.
• It is necessary to think over the strategy of personnel development for the future. The manager must anticipate what changes may occur in the industry, and what requirements will be put forward to the organization’s personnel in connection with new working conditions.
• It is important to analyze all the opportunities and weaknesses that exist in the internal and external environment of the organization. The development of a personnel strategy should be preceded by a thorough analysis of the current situation. All identified advantages and disadvantages should be taken into account when setting goals.
• It is necessary to identify and formulate the risks that may arise during the implementation of the strategy. You should also foresee options for overcoming potential crisis situations.
• It is important to continuously monitor the implementation of the personnel strategy. This is necessary for the timely detection of deviations from the implementation of goals and the adoption of timely corrective decisions.