Strategic Human Resource Management

hello we’re now going to continue with the area of strategic human resource management said earlier that personnel was an area within a company a department if you like a group of people looking to employ the best employees for the organization then it moved on to being more considerate of the needs of not only the company but the needs of the people working within the organization that began in the 1980s it can it occurred in the Western world Europe and the United States and has developed further across the world in companies in other countries but what has happened more recently is to move towards a strategic approach a strategic approach involves a direction for the company and it involves consideration of where the company is planning to go its development over a period of time it involves all the section a ssin harmoniously to achieve the organizational scores I’ll go through the sequence with you or this area we need to consider first three elements one is the organizational structure 2 is the human resource management of the organization and the third must be the consideration of the human resource objectives so it does involve the need to plan there’s a famous saying and that saying is if you fail to plan you should plan to fail that was by a man called Abraham Lincoln that statement still is evident today in business when we consider planning we’re considering forward planning looking ahead that involves a number of considerations the first of those is the vision and values of the organization the second of those is the mission and strategy of the company and the third them being the setting of the objectives what are going to be the objectives of the organization when planning for the future these objectives in the modern age must be referred to as smart smart objectives by smart clever intelligent people running a business so what a smart mean smart is an acronym the S means a consideration of the approach regarding the fact that it needs to be clever ok smart we’re talking about specific measurable achievable realistic and timed all objectives need to be those five elements so to consider that we need them to consider the core business objectives of the company those core business objectives of the companies making product will be objectives to do with production purchasing marketing sales and then IT in modern age together with human resource objectives what we are saying is objectives need to be set for all of those areas of the business then they are brought together and coordinated into the company’s corporate objectives this means the company is working in harmony all areas of the business all departments of the business are working together planning for the potential future success of that organization to have a strategy means to have a guidance with relation to in vestment decisions a company that is in the commercial area exists to make profit what is the company going to do with that profit to be successful in the future it needs to reinvest some of that profit back into the business so what should it do next year for example should it extend the factory should he buy more land should it buy more machinery to fit into the factory or perhaps should it employ more people

those people could be working within the factory those people could be in the office area of the company those people could be sales people who are out and about from the company visiting clients and potential clients where should the company spend its money so the financial decision the investment decision is vital towards the future of the business and clearly from what I said earlier the importance of human resources in a business does mean that the company should be planning to spend some of its money retraining assisting employees developing them further perhaps also looking to bring in additional people perhaps additional people with skills that are not currently amongst those employed so these are considerations for a business I’ll give you a consideration a company must make a decision for next year it looks at one of the products that it does make and believes that it is likely to be selling less of that product next year but another of the products that it is making it appears to be selling it out when it makes them so it might make the decision to make lesser product a more of product B if that is the case it may need to strip out some of the machines in the factory that used were used to make product a and now introduce more machinery in the making of product B but then what will that mean to employees can some of those employees be retrained now to work on machines for product B as opposed to product a or will they need to be asked leave the company to be then replaced by other people so that is our minor dilemma just a company’s consideration of two products where many products made by companies are far greater than that many companies such as Heinz Cadbury make many many more than for 810 different products some of those companies making 80 different products so there are some of the considerations when they’re looking at the next financial year how to use their product opportunities to make money how to use the employees in relation to those decisions so we need to look to the future of an organization and I’m going to do it for the moment in relation to the decisions that need to be made when the human resource people are looking ahead companies should be looking ahead in three stages short term medium term and long term different companies operate in different industries and will have different time lengths in relation to that yeah some companies may have a one year horizon for short term perhaps two years for a longer term medium term and the longest term might be perhaps three years or five years ahead some companies therefore are looking five years ahead when they’re doing that in the modern age they need to consider employees in relation to that five-year span of time the things they need to consider are who who will we need for the future will we need more people with particular skills and therefore less people than we have now with other skills we’re actually wanting more people with developed skills for the future as opposed to the current stage then we need to consider when we cannot change over immediately we have to consider the phasing in of additional employees over a period of time then we need to consider where where in the world do we need these employees if we’re a multinational company we may have offices in London we may have a factory in Scotland and another Factory in China therefore in the future where will we need these future employees that we have identified will need to be in London in the in the UK or Scotland in the UK I wouldn’t need to be in China or should we be setting up an additional factory in another country entirely so it’s not just who we employ it is actually where we employ them we need to consider to do with a given product where we should have our factory for example if we’re making product should we have our factory near to where the company’s head offices should we have the factory near to where the main resources are the main materials to make a product should we have the factory near to where the cheapest labor can be attracted to it for our company should we have the factory near to where our market is our main consumers in the world where they might be in a different country entirely so there we have four considerations only in relation to where we should

place our factory let alone where our employees for the future should be living and working for us in the world and the final one of those of course is how many how many people we need have employed in the company in five years time many companies in recent years have looked to downsize to reduce the number of employees if that is so they need to consider on a sliding scale how many the need now compared to how many there were need in five years time and how they’re going to reduce headcount on the payroll over that five years again if they’re looking to expand further they need to do the reverse how many people employed now and how many more people will be needed in five years time and where they’re going to obtain this resource from to help them expand the number of people within their workforce thank you you