Tactics include the tactical management of an organisation. Tactical management is a plan for the deployment of resources and ways to achieve a particular goal. This plan should contribute to the strategy of an organisation. Strategy describes how the vision of an organisation will be achieved. A vision provides a visionary and ambitious view of what an organisation wants to be. This blog discusses the tactical management of human capital.
By managing HR activities in a way that they are aligned with the organisational strategy an HR department creates value. An organisation provides added value by excelling in cost leadership, product leadership or customer intimacy. The HR strategy should be geared to this if an HR department wants to create added value. Cost leadership is the continuous ability of an organisation to provide all operational processes, skills and abilities as effectively and efficiently as possible. The HR strategy should help to provide to the lowest price in the market. Product Leadership is the ability to continuously bring new quality products on the market. The HR strategy should help to differentiate themselves from competition. Customer Partnership is the ability of an organization to a long-term continuous relationship with customers at which an organization continuously responds to the needs of the customer. The HR strategy should contribute to the ability to build long-term continuous relationships with customers.
Control variables such as results, people, resources, structure, culture and chains are needed to ensure a contribution to the HR strategy. However, the strategy determines how control variables are arranged in relation to human capital.
The control variable results is about the question of what the activities of HR have produced related to added value. The strategy determines whether the customer-, internal- or innovative perspective dominates and hence which results are important. The financial perspective is important in each strategy. In the financial perspective the focus lies on productivity and labour costs. In the customer perspective the focus lies on available capacity, quality of people and retaining people. In the internal perspective the focus lies on the HR proces (input, throughput, output and administration). In the innovative perspective the focus lies on capacity and quality of people.
The controle variable people is about the question which core(competencies an organisation needs relating to the applied strategy. An organization applying cost leadership is defined by management of specialists. Such an organisation consists of individual employees who are specialised in fragmented tasks. Task-oriented competencies play a dominant role. An organisation applying customer partnership is defined by management of multifunctional people. Such an organisation consists of employees working in autonomous teams. Social and communication skills play a dominant role. Finally, an organisation applying product leadership is defined by management of entrepreneurs. Such an organisation consists of employees who take initiative and are responsible for their own results. Intellectual skills play a dominant role.
The control variable resources is about the question of what technology an organisation needs relating to the applied strategy. An organisation applying cost leadership is defined by the use of HR information systems when executing HR activities by HR. HR-information systems are used as a resource to ensure that HR activities are executed out by procedure. Thus as a technical system for the control of HR activities. An organisation applying customer partnership is defined by the use of E-HRM when executing HR processes by several staff members like (line) management and employees. E-HRM is used as a resource to ensure that the desired output is delivered. Thus as a method to manage HR processes. Finally, an organisation applying product leadership is defined by use of social media to bring different people together. Social media makes it possible to connect entrepreneurs into a coherent network. Thus a platform to manage interaction.
The control variable structure is about to the question of what structure an organization needs relating to the applied strategy. There are several ways to organise activities in an organization. A common way of organising is to divide activities to various departments. Coordination takes place by hierarchy. This method is called a vertical organised organisation. At vertical organised organisations the structure of HR is highly formalized and differentiated. HR is managed by a department with specialists when relating to the various HR domains and is explicitly formulated in a HR plan. HR is responsible for the employees and for the conditions under which it must work. HR executes in order of (line) management. Another way of organising is to bring activities together in a proces. Coordination takes place within the processes. This method is called a horizontal organised organisation. At horizontal organised organizations HR has an advisory role and provides support to teams. Finally, a third way of organising is a network organisation. On the one hand HR needs to be highly decentralized making it possible to respond to specific circumstances. On the other hand HR needs to build a strong common identity in order to attract and retain loyal employees.
The control variable culture is about the question of what culture an organisation needs relating to the applied strategy. An organisation applying cost leadership is defined by a culture where rules and procedures are important and is control oriented. HR is responsible for the execution of HR activities which are formalised in a policy. HR follows policy when executing HR activities. An organisation applying customer partnership is defined by a culture in which the end product is important and is result oriented. HR is responsible for the results of the HR process. Various staff members within the HR process are managed and coached by HR when executing HR activities. An organisation applying product leadership is defined by a culture in which development of new products, services or the individual is important and is innovation- and/or people oriented. HR is responsible for the relationship between entrepreneurs by integrating and motivating them.
The control variable chains is about the question of which chains an organisation needs relating to the applied strategy. An organisation applying cost leadership unites in a chain with the intention to increase efficiency. Business Process Outsourcing makes it possible for HR to outsource processes and resources needed for various HR activities to a third-party service provider. An organisation applying customer partnership unites in a chain with the intention to improve processes. Organisations can not only look at their own HR activities and therefore create an independent entity. This entity is called a Shared Service Center. An organisation applying product leadership unites in a chain with the intention to acquire knowledge and resources. Interim Services makes it possible for HR to hire professionals who solve issues related to HR questions.
The above resulted in the paper ‘A business administration approach to HRM‘.
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