The Impact Of Corporate Strategy On HRM Essay


1.What course of action would you recommend to the CEO in the first hospital as a way to improve the operation of HRM at the hospital?
2.What are the Key Features of building a Sustainable HR Capability?



Managing employees is an integral factor for any organisation (Beardwell, 2007). Human resource management is the most integral management of resources that can lead to organisational productivity and efficiency. An organisation devices various specific HR strategies and methods such as to derive effectiveness. The scope of this discussion analyses specific HR issues at two hospitals, where in one there are no set of HR strategies and in the other there are appropriate HR policies and strategies (Purce, 2014). There are some recommendations provided that can help overcome challenges faced in the organisation.


HR strategies are considered key driving forces behind every organisation. Lack of HR policies and strategies in the first hospital has led to several consequences and management issues (Isidor, 2011). The first organisation though having large number of staffs views HR functions as rudimentary. Whereas the other organisation though small is trying to establish competencies by means of appropriate HR policies and strategies. Analysis of both the organisations reveals the importance of such HR functions and departments. While the first organisation has not been able to maintain proper employees (Alvesson, 2009). With CEO and finance manager maintaining HR in the organisation has led to it having inappropriate strategies and policies. While the other organisation has a significantly professional HR department that strategizes and makes policies such that productivity of employees can greatly be improved.

1.Recommendations to the CEO in the first hospital as a way to improve the operation of HRM at the hospital

In order to improve functionalities at the first hospital there needs to be present a formal HR department with appropriate HR strategies (Truss, 2012). The CEO at the first hospital need to have an appropriate HR department along with employees. CEO can only overview their processes and apply relevant aspects of organisational strategic goals on them. The HR department needs to handle all functions related to recruiting, selecting, apprising, promoting, engaging and motivating employees (Sahoo, 2011). HR will be responsible for job design and assigning of responsibilities. HR department will be also responsible for handling disputes and staff grievances across departments. The organisation needs to have adequate HR policies and regulations that each employees and staffs would follow. Adhering to certain principles of management devised by the HR department in consistency with the organisational objectives. It is essential that employees have an appropriate HR team, who are able to guide them and provide relevant inputs. Lack of HR department can lead to severe consequences as lack of motivation, grievances, turnover, conflicts in interests and so on. CEO needs to also induce a positive organisational climate and appropriate leadership (Marchington). A conducive organisational climate will help create a positive ambience allowing employees to strive and work coherently. A leader will able to lead the employees towards organisational goals and motivate them such that they do not lose out on focus. The organisation needs to invest in its employees and create an atmosphere of engagement with training policies. The second organisation develops HR strategic planning, has helped attain highest levels of performance. Its HR team of the organisation meets regularly for developing a number performance related indicators. Their HR policies, processes and practices have helped developed a track record for catering to highest quality of patient care. Training and skill development programs will allow the organisation adopt practices that help employees view the organisation in their career planning and develop and association with the organisation. It also needs to have an incentive structure for staffs and employees, who deliver highest levels of performances. Such motivational engagement will help reduce turnover and create more job commitment as well as job satisfaction.

2.Key features of building a sustainable HR capability

Almost every organisation aims to create HR strategies that can render sustainability and help build capabilities within the organisation (Kramar R. &., 2012). Having a good HR capability along with policies and strategies can help the organisation develop tremendous competencies. An organisation needs to focus on creating a unique strategy such that it can build sustainable HR capability. There are various aspects of creating a sustainable HR capability, HR processes needs to aim to accommodate new processes, new tools, new solutions, new workforce segment along with new skills. The HR capability management involves a dynamic procedure to match existing pool of human resources with that of requirements present (Kramar R. , 2014). Organisations for creating sustainability needs to understand its people, management then and assess their skills and potential for future use. On the other hand, HR functions needs to also understand company policies, structures, long-term benefits and so on. HR capability framework encompasses assessing work levels complexity, assessing capability, determining gaps, adjusting, establishing capability and monitoring impact (Armstrong, 2014). A sustainable strategy will be able to continuously evaluate the gap and try to bridge them either by adjustment or by skills development and succession planning. Every organisation has its pool of resources, in cases of high levels of work complexity and low employee engagement processes, its HR needs to continually recruit employees to fill gaps. However, in cases of high levels of employee engagement policies and strategies, where employees are trained continuously, prevalence of existence of such gaps are minimum. Though it is nearly impossible to attain a continued balance between organisational requirement against those of staff available, HR managers needs to continually apply strategies that engages employees. Such engagement allows cost saving of recruiting new employees and in succession planning. A HR assessment structure needs to be accommodated such that HR capability planning can progress without any hindrances. An assessment plan would include planning for substitutes for critical role, costs associated with replacing of those employees. There are also impact in regards to replacement of non-critical roles as they might have tremendous productivity attached to the organisation. An organisation plans for HR capability to allow for overcoming various challenges in managing its HR such as staff shortages and so on. As HR productivity has direct impact on the productivity and efficiency of the organisation, it becomes critical to assess the HR capability sustenance for long term success and productivity of the organisation.


Analysis from the above factors depicts that while HR strategies possess capabilities to drive organisational capabilities, it is essential that stakeholders view HR functionalities as being critical in nature. HR department can develop specific organisational related strategies and policies. Such policies refer to various functions of HR including recruitment, selection, appraisal, salary related policies, employee engagement policies, employee motivational practices and so on. HR policies are critical for the success of the organisation, without which there might be complete failure. HR capability sustainability is an integral function is critical for most organisation. An organisation’s productivity is directly affected from its employees, it is critical that HR capability is maintained.

Reference Lists

Alvesson, M. (2009). Critical perspectives on strategic HRM. The Routledge companion to strategic human resource management, 52-67.

Armstrong, M. a. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Beardwell, J. &. (2007). Human resource management: a contemporary approach. Pearson Education.

Isidor, R. S. (2011). Human resource management and early internationalization: is there a leap-frogging in international staffing?. . The International Journal of Human Resource Management, 22(10), 2167-2184.

Kramar, R. &. (2012). Human resource management in a global context: A critical approach. . Palgrave Macmillan.

Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach?. . The International Journal of Human Resource Management, 1069-1089.

Marchington, M. W. (n.d.). Human resource management at work. 5th edn., 35-39.

Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Sahoo, C. D. (2011). Strategic human resource management: Exploring the key drivers. Employment Relations Record, 11(2), 18.

Truss, C. M. (2012). Strategic human resource management. London: Oxford University Press.

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