Personnel policy provides the formation of an organisation’s personnel management strategy, which considers the organisation’s approach as a whole.
Thus, as an organisation’s management functions, personnel management can also be considered a strategic direction or fall under business/advisory consulting.
Objectives of Strategic Personnel Management:
- Meeting the organisation’s staffing needs for the future.
- Regulation of the level of remuneration sufficient for the selection, retention and motivation of personnel at all organisational levels.
- A high priority of leadership development in critical positions.
- Providing adequate training and development programs to improve all personnel’s skills and the formation of personnel’s high internal dynamics.
- Development of effective communication systems between management and other employees, between departments and divisions.
- Creation of mechanisms for dealing with the consequences of the psychological perception of changes.
Principles of Strategic Personnel Management:
- The long-term nature of the assessed prospects.
- The orientation of management influences on changing the potential of personnel.
- Treating opportunities for effective implementation of potential.
- Substituting choice conditional on the state of the external and internal environment.
- Continuous monitoring of the condition and the forces at work of the external environment and appropriate management decisions changes.
In the organisation itself, strategic personnel management provides enormous benefits because it allows you to get a synergistic effect. Domestic authors note that to obtain a synergistic effect; the following conditions must be met:
- Good development of the system of adaptation to the external and internal labour market.
- Availability of a flexible work organisation system.
- Applying techniques based on comprehensive accounting of personal contribution and the level of professional competence of each employee (in this connection, special attention should be paid to the employee’s assessment and remuneration).
- A high level of participation of employees and working groups in discussing problems and making management decisions.
- Delegation of authority to subordinates, which is the most important and at the same time, the most challenging principle of personnel management.
- The functioning of an extensive communications system is an integrating factor in the entire strategic personnel management model.
These Things are Involved in Personnel Management.
- Employees of the organisation.
- Working conditions.
- Personnel structure.
There are many approaches to differentiating strategies. There are strategies for innovative enterprises, diversification strategies, strategies focused on maximising profits, consumer-oriented strategy, organisational development strategies, etc.
The personnel management strategy can be either subordinate to the organisation’s system as a whole, or combined with it, representing a single whole. But in both cases, the HR strategy is focused on a specific type of corporate or business plan (business strategy). Each variant of the organisation’s strategy corresponds to its variant of the personnel management strategy.
Similar To Any Management System, Strategic Management Critically Includes The Following Stages:
- Analysis stage.
- Planning stage (selection).
- Implementation stage.
At the analysis stage, the most critical factors for the organisation’s development are identified and evaluated, called strategic factors. These components concern both the external and internal conditions of the organisation. The most common tool for analysing strategic factors is identifying threats and opportunities in the organisation (SWOT analysis).
The next step is to formulate possible organisational strategies and choose the best strategic alternative for its implementation. Also, at this stage, the organisation’s mission and goals are developed.
When the inclusive strategy is formulated, the focus of strategic management switches to its implementation. The strategy is implemented by developing programs, budgets, and procedures, which can be viewed as short and medium-term plans for the process’s performance.
Thus, the organisation’s personnel policy is derived from the organisations’ strategy. Its characteristics depend on strategic management directions carried out in the organisation, which may again come under the business or advisory consulting. When developing a personnel strategy, it is necessary to be guided by the rule: the basis for improving systems and management methods should be based on human resources, considered in the aggregate of various personnel management system elements.
You can also hire a board placement firm, such as Escape, to help you devise personnel management strategy. Escape is a company which provide executive search services and helps companies assess talents and provide advisory services.