What is Strategy in HR Management?

Did you know that a survey conducted by Glassdoor revealed that 75% of all employees in the United States of America between the ages of 18 years and 34 years expect their employers to “take a stand on important issues affecting the country and their constitutional rights, including immigration, equal rights, and climate change, more than any other age group. In turn, the data suggests that employers who pay attention to taking a stand on such issues may have a recruiting advantage” (Glassdoor Survey).

The survey tells us that there is a change in the way the new-age workforce perceives its employers as well as its workplace. It also tells us that in order to accept this change and respond to it, companies need to change the ways in which they strategise their organisational processes, covering all functions such as recruitment and selection, performance management, learning and development, and employee relationships. 

If you have ever wondered what strategy has got to do with managing an organisation’s most valued assets, i.e., its employees, then this is one of the answers. 

In the following video, let’s hear from our faculty Sandeep Nair as he discusses what strategising implies for an organisation, with Tesla’s example. 

As you saw in this video, there is no single, universal definition of ‘strategy’. However, a company’s strategy can be seen as the coordinated set of actions that it takes in order to achieve its objectives.

Now, a company’s objectives can be any combination of predetermined goals, such as outperforming competitors, becoming a market leader, achieving greater profitability or revenue, acquiring more users, increasing market capitalisation and being an employee-friendly workplace. 

Let’s take a look at the example of Shell, a British-Dutch multinational oil company with most of its operations overseas. To manage its overseas staff, the company uses an international management approach. With an average of 93,000 employees across 70 countries, Shell’s strong HR strategies and work culture contribute to its success. This is one of the ways in which you can use strategy to enhance your business outcomes and manage your organisation effectively. 

Additional Content

Kodak’s Downfall Wasn’t About Technology by Scott D. Anthony: This article delves into what resulted in the downfall of Kodak. It discusses how Kodak’s inability to strategise effectively affected its response to the disruptive external changes and led the company to failure. It also tells us what lessons we can learn from Kodak about the importance of the right strategy.