Strategic HRM models have similar basic elements, but their order and number can vary. An organization can use an environmental review or internal focus to create a mission statement, analyze strengths and weaknesses, and create strategies to achieve goals. HR policies should support organizational strategies, and periodic environmental reviews can maximize effectiveness. Effective models also assess changes and repeat the process if necessary.
While the basic elements of strategic human resource management (HRM) models tend to be similar, the order in which they are organized and the number of strategies can vary. Some of the common elements of these models include environmental analysis, creating a mission statement, and creating strategies based on an analysis of the organization’s strengths. How and when these and other elements are addressed depends on the organization’s needs.
An organization that is developing based on external influences will usually use one of the strategic HRM models that start with an environmental review. This process can be internal and external. It is a way for the organization to assess what needs exist and how well it can meet them.
A common next step is to create a mission statement that matches the information gathered in the environmental review. Then the organization can analyze its strengths and weaknesses. Once these qualities are understood, HR can create a strategy to help the company achieve its goals.
Other strategic HRM models start with an internal focus. In these situations, an organization typically starts with creating the mission statement. Once implemented, an external and internal environmental analysis can provide some insight into what needs to be done to achieve organizational goals. Then many groups will use the same methods of self-analysis and strategy building as in the previous model.
Many HRM strategic models include the creation of HR policies that will support organizational strategies. These policies are generally flexible, as elements such as changes in the company, industry, and broader economy may require changes. By periodically conducting a new environmental analysis and review, an organization can maximize its effectiveness. While generally not necessary, in some cases a dramatic change will be made by creating a new mission statement.
Some of the most effective strategic human resource management models also include an assessment of the changes implemented as a result of the process. If the policies have not helped the organization to achieve the desired effect, the entire strategic process can be repeated. In situations where only minor changes are required, a few policy changes may suffice. An HR department can also use different ideas gathered in the analysis stage to try new approaches to policy making without the expense and effort of another full review.
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