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What is Human Resources Strategy? - Definition & Example

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  • 0:01 A First Look at Human…
  • 0:43 Basic Definitions
  • 1:25 Application of Human…
  • 3:37 Lesson Summary
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Lesson Transcript
Instructor: Brianna Whiting
In this lesson we will learn about human resource strategy. More specifically, we will learn the definition, when its used and the process. At the end you can test your knowledge with a quiz.

A First Look at Human Resource Strategy

Let's imagine that you work in the human resource department for Terrific Toys. Your job responsibilities include recruiting new employees, training those employees, and helping with conflict resolution. Because you have been with the company for over five years, you feel that you understand your role and responsibilities pretty well.

But then your boss holds a meeting with all of the human resource employees to discuss human resource strategy. What is he referring to when he used the word 'strategy'? How does that differ from what you've been doing over the last five years? In this lesson we will learn what human resource strategy is and how it can benefit a company.

Basic Definitions

Before we look at human resource strategy, let's first define human resource. Human resource is a department within a company whose responsibilities include searching for employees and training them, helping with conflict resolution, and organizing and helping with benefits. In other words, the HR department works with employees, their issues and their needs.

So, human resource strategy is completing all of these responsibilities, only this time those responsibilities are completed with the overall goals, mission, and future aspirations of the company. It is the act of being proactive so that employees have the necessary tools and attitudes to align with the direction the company is moving in.

Application of Human Resource Strategy

Now that we know what human resource strategy is, let's look at it in action. Let's go over a list of procedures that many human resource departments utilize.

First, they must understand the current environment, including current employees and their skills. This helps the human resource department realize if each employee is ready and capable of meeting the goals of the company.

For example, when working for Terrific Toys, you might have learned that the company is going to be expanding and will now have online sales. So, the first step in human resource strategy is for you to examine the current employees and decide if they are ready to take on this new challenge. Do the employees need more training? Do they know how to fulfill online orders?

The next step is determining the future needs of the company. What direction will the company be heading in? Do you need to hire more employees that have new or different skills than the current employees? Will the company focus on better customer service, lower employee turnover, competitive sales?

As a human resource employee for Terrific Toys, you might decide that you need to find new employees that have experience with online sales. You also realize that in order to meet the goals of the company, your current employees will need more training for a virtual sales environment.

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