Strategic Plan

The impact of human resource (HR) management approach on the implementation of formal strategic planning process and its effect on organisation performance is very clear. Most of the organisations fail to recognise the role of human resource management in implementing the strategic plan. They normally apply the so called “Isolated’’ approach of human resources management and “Add-on” end of continuum when it comes to the process of formulating and implementing strategic plan. This means that human resource managers receive little recognition as compared to other managers in the organisation.

Ulrich (1997) argues that “at the “Add-on” end of continuum, HR planning is little more than a postscript to the business planning process. In this approach, only after extensive business planning, during which the business product, market and technological directions are defined and thereafter questions about HR practices are raised. At this end of continuum, HR issues are an afterthought, subsidiary to business strategy; they receive relatively little attention and become an accessory to business planning. At this extreme, line managers consider HR questions as an appendage and appendix to “real” planning efforts, which focus on how the business positions itself in its market. At the “isolated” end of continuum, HR planning is a distinct and separate planning process. The HR department not only initiates the efforts but designs and administers the HR plan. In these cases, the HR plan becomes the process of shaping HR rather than business priorities”. I think those organisations that apply the mentioned HR approaches cannot perform well. Certainly they will fail. What is your opinion on this issue?

Ulrich, D., (1997) “Human Resources Champions: The next agenda for adding value and delivering results.” Harvard Business School Press, USA.