Strategic HR

What Exactly is Strategic HR?

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Strategy decides the direction in which a company is progressing with reference to its environment. This is essentially the process of defining strategic intent and then allocating or syncing resources to needs and opportunities. This is referred to as resource-based strategy and helps an organization achieve a competitive advantage.

Effective development & implementation of any Strategic HR concepts depends on the capability of the company. This includes the ability to create effective strategic goals and in developing and implementing strategic plans via a well laid-out management process. The success of this effort is highly dependent on implementation- this includes managing change and perfect planning.

What it Involves

The Strategic HR concept is quite a complex one, and there are a number of theories as to what it exactly is, and how it works. This is a specialized approach to making various relevant decisions on the plans and intentions of the organization. These decisions and plans are related to the employment relationship, its recruitment, training & development, performance management as well as reward. It also has a lot to with employee relations and retention strategies and with ensuring that all the policies and the best practices of the organization are followed.

The main characteristic of Strategic HR is that it is highly integrated. The strategies that the HR department designs and follows are typically integrated vertically with the company’s business strategy & also horizontally with one another. Strategies that are developed by this kind of an approach are very essential components of the business operations of a company.


The Concerns

Strategic HR is very closely intertwined with the relationship between HRM & strategic management within an organization. It refers to the broader direction that the company wants to follow to ensure that it will be able to achieve its overall goals via the people who work in the company. It is debated that intellectual capital is a significant source of competitive-advantage.

Eventually, it’s the employees within that organization that implement the Strategic HR plan. This is exactly why the top management of a company will have to keep all these main considerations in view while the corporate strategies are being developed. Strategic HRM also becomes a very important part of those strategies.

The Focus Points


Strategic HRM essentially focuses on various actions which differentiate a company from its rivals. It develops various declarations of intent that define the different means to meet goals and objectives. In addition to this, it is also closely connected with the long-term allocation of various company resources. It relates to matching the capabilities and resources to the external environment.

In many ways Strategic HR is a very close perspective on the manner in which success factors and critical issues can be addressed to make a long-term and major impact on the success and the behavior of the organization. In more ways than one, this becomes a very essential part of the manner in which the HR department of a company manages its functions.

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