This article refers to some considerations of strategic management. It starts with expressing why companies have to adopt a strategic attitude, which implies a change in attitude of senior management. The fundamental phases and activities of the strategic management model are presented, several definitions of strategy given by various authors, the components and levels of business strategy are offered, explaining each of these levels to make it clear that in the third level, that of The functional strategy is where the activities of the Strategic Management of Human Resources must be carried out.
From there, the different stages of the Navas and Wars strategic management model are explained in detail, which can be used to formulate strategies for Human Resources management in companies.
Introduction
The internationalization, globalization and the sharpening of competition, constitute elements of vital importance in the business world these days.
Strong political, economic and social changes allow societies to undergo a profound evolution in their strategic mentalities, together with this the high degree of technological development and the ability to assimilate increasingly modern techniques that allow managers to be endowed with a strategic vision to foresee the future of business management and mitigate as much as possible the level of uncertainty that characterizes business activity in these times. These requirements give Human Resources Management priority for managers at all levels.
The Strategic Management of Human Resources (GERH) is currently the object of special attention of managers, not only for the role it plays in the elaboration and application of the company's strategy, but also for its direct and immediate effect. in the substantial and sustained growth of productivity.
The changes carried out, both in the conception and in the function that has been attributed to the human factor in recent times, create very favorable conditions so that, at present, the Human Resources Department can really be considered as a strategic function with an active role, both in the formulation of the strategy and in its implementation.
A Human Resources strategy must provide systematic, proactive and flexible adaptation to changes in the environment, and have a vision of the future integrated into the company's global strategic approach, which is achieved if when formulating any strategy, they are taken into account the implications of this strategy for Human Resources; the Human Resources strategy that currently exists and whether it satisfies the new strategic approaches; the Human Resources strategies that must be developed that give effective responses to their new requirements, in terms of the key aspects of Human Resources essential to each strategy and can provide the company with competitive advantages.
The objective of this material is to provide some elements on the formulation of strategies for Human Resources Management based on the strategic management model of Navas and Wars.
Development
I- the strategic management process
Organizational change in these times due to the conditions imposed by the aggressive and turbulent environment for companies has become one of the most manageable concepts. In this sense, several models for successfully driving change have been reflected in the literature (Stoner, 1984; Robins, 1993; Menguzzato 1991).
Companies must learn to live in change by anticipating decisions that allow their survival and development in the midst of a turbulent and competitive environment, which leads to a strategic conception of management. This strategic focus on management is not yet a widespread practice in business organizations, where facing the urgency, permanent dynamics is not an easy matter (Certo, 1994; Boyet, 1999).
The strategic attitude pursues a constant adaptation of the company to a highly unstable environment, based on the belief that the future can be improved through appropriate strategic actions.
This supposes a change of attitude of the top management and therefore a modification of their behavior (Menguzzato and Renaut, 1988).
Indeed, the top management of the company, through the strategy, chooses not only the internal organization, but also chooses its environment through the determination of ways to compete in the businesses in which the company is present.
This implies that the competitive strategy not only responds to the environment but also tries to shape the environment in favor of the company (Porter, 1987). This is, in essence, the fundamental basis of the Strategic Management model.
The Strategic Management process ranges from the creation of the strategies (taking into account the aspirations of the company, its characteristics, strengths and limitations and the opportunities and threats of the environment), to its consequent implementation.
Numerous authors suggest various methodological approaches for the Strategic Management process (Menguzzato, 1991; Navas and Martín, 1996; CCED, 2000; Blanco, 2000), but most agree on Strategic Management as a process with a sequence of phases that they carry out in a certain order. In the Navas and Guerra model, the following phases and activities are observed:
Phase 1: Strategic Analysis:
- Formulation of the mission. Internal and external analysis (Strategic Diagnosis). Setting the strategic objectives.
Phase 2: Strategic Formulation.
- Formulation and design of strategies (at corporate, business and functional levels).
Phase 3: Implementation of strategies:
- Evaluation and selection of strategies. Implementation of the chosen strategies. Control.
In this process, although there is an order, it is necessary to carry out constant feedback of information throughout it, due to the interaction that exists between the different elements included in the phases.
The success of this process depends firstly on the human factor and secondly on the systems that the company has for its proper management.
The human factor has always been essential in the company, however its consideration and study has not always been carried out from the same point of view; it has been considered as one more productive factor, whose behavior is conditioned by their level of remuneration; Currently, the concept of the human factor is considered as the main component of the company. According to Menguzzato (1991) the impact of the human factor is decisive in the formulation of the strategies; hence the importance of establishing GERH systems.
1.1. The definition of business strategy
The term "strategy" comes from the Greek "strategists" which means "general" and was originally used in the military field, later appearing in the economic and academic fields.
The strategy has been defined by many authors, below we will quote some of them:
"The dialectic of the company with its environment". one
"The set of decisions that determine the coherence of the company's initiatives and reactions to its environment." (Tabatoni and Jarioun, 1975). two
"The business strategy explains the general objectives of the company and the fundamental courses of action in accordance with the current and potential means of the company, in order to achieve its optimal insertion in the socio-economic environment." 3
"The strategy is the adaptation of the organization's resources and skills to the changing environment, taking advantage of opportunities and evaluating risks based on objectives and goals." 4
“They are general programs of action and deployment of resources to achieve complete objectives; an organization's goals program and its changes, resources used to achieve these goals, and policies governing the acquisition, use, and disposal of these resources; the determination of the basic long-term objectives of a company and the adoption of courses of action and allocation of the necessary resources to achieve these goals ”. 5
Henry Mintzberg (1990), is one of the authors who has delved the strategy the most; In his assessment, he analyzed that the strategy could occur from the following representations of the term:
- Strategy as a plan: As a guide to approach a situation. Strategy as a guideline of action: It works as a maneuver to beat the competition. Strategy as a pattern: It works as a model in a flow of actions, that is, as an instrument to adjust said actions. Strategy as a position: As a means to possess the organization in the environment. Strategy as perspective: This corresponds to a broader vision, implies that it is not only a position, but that it is a way of perceiving the world.
Based on the above considerations, the author considers proposing the following definition of strategy:
"Set of integrative actions that must be developed at the different levels of the company to achieve broad objectives based on knowledge of the capabilities and limitations and the potential favorable and unfavorable events in the environment that allow it to be placed in an advantageous position in front of the competitors ”.
Business strategy under current conditions is a dynamic process. It cannot be argued that one type of strategy is better than another, it depends on the internal conditions of the company and the environment.
The business strategy is characterized by a low degree of specificity since its function is to provide a set of norms and rules, and criteria for future company decisions; a minimum specification of this orientation is necessary, which can be defined based on the components, and this at different levels.
The components of business strategy.
The components of the business strategy are the following: (Menguzzato and Renaut, 1994: 86).
- The scope or field of activity:
This component of the business strategy aims to delimit the field of action of the company, that is, the breadth and characteristics of its "productive" relationships with its socioeconomic environment.
It is about specifying which is or which are the “businesses” in which the company plans to participate.
- The distinctive capabilities:
This component includes the present and potential resources (physical, technical, financial, human, etc.) and skills (technological, organizational, managerial, etc.) that the company owns and dominates. In addition, the level and model of development of these capacities must be indicated.
- Competitive advantages:
These are the characteristics that the company can and must develop in order to obtain and / or strengthen an advantageous position compared to its competitors.
- Synergy:
It is the search for the positive synergistic effect that must result from the balance between the field of activity, the distinctive competences and the competitive advantages.
The three previous components should not be viewed independently, but rather the positive complementarities between them should be sought in such a way that the greatest possible degree of efficiency is achieved.
Strategy levels.
The fact that companies are in need of improving their management in the face of the increasingly turbulent environment determines the hierarchy of business strategy by levels.
In a company with a single activity or business facing a simple and stable environment, the existence of a single level of strategy is accepted, where the search for distinctive capacities, competitive advantages and synergy is confused with strategic concern at the functional level.
In a turbulent environment, the identification of two levels of strategies is necessary, since the careful development of resources and successful competences and the search for competitive advantages and synergies become much more imperative due to the adverse and unstable environment, and the essential functional strategies they must be framed and coordinated within the activity's strategy.
When it comes to a diversified company, it is conceived as a set of activities or businesses, and in addition to the two previous levels, a higher level of strategy is added that encompasses the different business strategies and poses the problem of a successful combination of the different activities.
The business strategy has three levels:
Global strategy or corporate strategy, also called "company strategy" or "master strategy". At this first level it is about considering the company in relation to its environment. This strategy is what decides the businesses to develop and the businesses to eliminate.
At this level of strategy, the first and second components take on greater relative importance, as they try to limit the scope of activity of the company and assign the capacities among the different businesses that make up the area. The fourth component is then understood as the search for the synergistic effect resulting from the adequate integration and complementarity of the different activities because, in effect, it is essential to place emphasis on the complementarity and mutual effort of the chosen activities, as well as on the specific weight of each in the portfolio and the consequent distribution of resources and skills. (Menguzzato and Renaut 1994: 87-88).
At the second level is the "business strategy", which is the specific strategy for each business, how the business will be managed, what product portfolio the company will develop, etc.
At this level the problem concerns, particularly the second and third components.
In the fourth component, the emphasis is placed on the synergy produced by the successful integration of the different functional areas within each activity. (Menguzzato and Renaut, 1994: 88).
At the third level is the “functional strategy.” They are the strategies corresponding to the functional areas: production, marketing, financial strategies, etc. They are implemented by the areas, but always decided by senior management.
This level is where this work is located.
At this last level the situation is how to use and apply the resources and skills within each functional area; in each activity or each strategic unit, with the aim of maximizing the productivity of these resources.
The key components at this level are the second and the fourth, the latter corresponding to the synergistic effect derived from the correct coordination and integration of the different policies and actions that are designed within each functional area. (Menguzzato and Renaut, 1994: 88).
Within the Human Resources Department, a set of activities must be undertaken, resulting from a series of decisions emanating from the business strategy, and from the needs derived from its implementation.
The functional strategy of Human Resources pursues precisely the design of the activities that are included in the functions of the Human Resources Directorate, all within the need to mobilize all Human Resources (at all levels) around the general objectives of the company and the successive strategies that must allow them to be achieved.
Functional strategies should contribute to achieving the company's objectives, so it can be considered the hinge between the overall strategy and the plans.
The business strategy expresses what the company wants to do and how it will do it to achieve its aspirations and general objectives that ultimately represent what the company wants to be in the future.
However, it is also important to determine how people are linked to the company's strategy since managers will not carry out this exercise on their own, locked in their areas; at each level each of them will bring the workers together and involve them in the task of defining how their area in question contributes to the success of the unit at the next higher level.
In this sense, workers can identify: (Davenport, 2000).
- The most accurate means of measuring your individual and group success in making investments that support the achievement of your business strategy. The impediments that, in his opinion, hinder his ability to make the most effective contribution possible. It is the responsibility of management, from the department to the business unit, to remove the obstacles. Low-value activities that need to be suppressed to improve the effectiveness of people's work. The information they need to make smart decisions about how to carry out their tasks.
1.2. Strategic management of human resources
The role of Human Resources has gone through successive stages through the years, from a basically administrative function of the administrative economic management and / or of the production management in the 1950s, until the 1980s, where the transition from personnel management to Human Resources management, which means ceasing to consider them an instrument of strategy to see them as a strategic subject.
GERH is the “set of activities that put into operation, develop and mobilize the people that an organization needs to achieve its objectives.”
GERH is a top-level, macro-organizational and dynamic management function geared towards the long term, regardless of whether it is functionally executed by a specialized department, which must take the initiative and help firmly and decisively to achieve the adaptation of the company and workers to changes in their environment.
The characteristics of the new Human Resources function are as follows:
- Its management is no longer the exclusive competence of the specific directorates. It becomes strategic and creative of added value. It is a center of results and not only of costs. It is subject to decisions about its centralization or decentralization. Shows concern for the person not as a resource but as a management objective.
From the definition of GERH the following follows:
- In the GERH process, all the members of the organization intervene, that is, the general management with command tasks, the workers with the negotiation of a contract and the staff representatives. To put the people of an organization into operation, it is necessary to define personnel policies and articulate social functions considering the objectives of the organization (strategic premise). Methods are needed to obtain, conserve and develop these Human Resources (operational premise). All of the above cannot be carried out without the help of regulatory and instrumental administrative instruments (logistical premise).
The first strategic actions of Human Resources are oriented to the following areas:
- Promote a business culture that enhances the deployment of Human Resources and a more adequate framework for the formulation of more effective policies, programs and procedures for its management. Anticipate the personnel needs in quantity, with the qualifications and qualities required for future development. The formulation of career strategies that harmonize the demands of the company with the development needs of people. Make people feel more motivated, with a greater sense of belonging and loyalty to the organization. Greater active, innovative and high-performance capacity of all people.
Many authors have proposed several models of GERH among which we could mention: Besseyre Des Horts (1988), Ishikawa (1988); Werther and Davis (1988); the HRH model of Beer et al. (1990); Chiavenato (1992); Louart (1994); CIDEC (1994); Cuesta and Martínez (1995), but they do not differ in content.
The first phase of the model begins with the formulation of the mission of Human Resources that is nothing other than the supreme objective of the organization in the social field, for which the business culture must be kept in mind, since GERH is one of the functions that refers most implicitly or explicitly to it.
Business culture is the “set of values, beliefs, attitudes, expectations, rationales, aptitudes,…., Common to all or at least the vast majority of the members of the organization and which are many other implicit norms that influence their behavior in the context of their work ”7
Culture conditions the behavior of people within the company, which is why it constitutes one of the greatest strengths of the organization, if it has been properly developed, otherwise it is one of the main weaknesses.
In this case, the company must develop actions that allow workers to identify with it and create a motivating work environment.
Once the mission has been defined, an internal and external diagnosis is carried out, which will enable the strategic problem and the strategic solution to be formulated.
1.2.1 Analysis of threats and opportunities from the external environment
The second component of the strategic management process is the environment analysis whose objective is to identify opportunities and threats. Of all the environments that may have an impact on GERH, the most significant are the following:
- Analysis of the social environment:
This environment is a set of factors that structure the competences, that is, it determines the men and women that the company needs in its operation and in the framework of its future development.
- Analysis of the economic environment:
In this case, attention should be paid to information from the general or local economic environment such as: the evaluation of the real cost of living, the growth rate of the global economy as well as that of the sector in which the company is located, the evaluation of the payment index, among others.
- Analysis of the technological environment:
In this analysis, the selection and qualification of the competences necessary to adequately use the new technologies must be kept in mind, due to the importance they have in the evaluation of personnel needs.
Analysis of the political-legal environment:
This analysis corresponds to integrating certain elements such as: existing social laws that may be limitations or opportunities for the company, laws or government decrees that may interest the GERH, among others.
I.2.2 Analysis of the strengths and weaknesses of the company
This analysis is an indispensable complement to the external analysis. It makes it possible to pinpoint the strengths and weaknesses of the organization and includes identifying the quantity and quality of the resources available to it.
In order to obtain information on the practices of the GERH as it currently exists in the company, an audit must be applied to all the dependencies of the same, which is complemented by the opinion survey that will allow to know the perception that the workers have about different aspects of GERH.
After analyzing the environment and internal capabilities, you can list:
Opportunities: These are the factors that can manifest themselves in the environment without being able to influence their occurrence, but that make it possible to take advantage of them conveniently if one acts in that direction.
Threats: These are the environmental factors on which it is not possible to prevent or provoke changes, but if they do occur they may affect the system's operation and hinder and prevent the fulfillment of the mission.
Strengths: It is the identification of the main factors characteristic of an organization, which constitute strong points on which to lean to work towards the fulfillment of the mission.
Weaknesses: It is the identification of the main factors of the organization, which constitute weak aspects that must be overcome to achieve higher levels of effectiveness.
One of the instruments used for strategic diagnosis is the SWOT Matrix.
I.2.3 SWOT analysis
This technique is an instrument of vital importance to diagnose the potentialities and limitations of the organization and its interactions with the environment in order to define the strategies to follow that suggest such interactions.
Building such an array is a relatively simple task and hence its popularity.
Processing and interpreting it conveniently to derive the fundamental strategic guidelines from it is something much more complex, hence the need to use it with extreme care and without haste.
From the combination of opportunities and threats with strengths and weaknesses, 4 basic strategies are obtained:
- Survival Strategies: They are those that the company must face to correct a present weak point and a threat that will occur in time. Adaptive Strategies: They are the results of combining a future opportunity with a weakness of the present. Defensive Strategies: They are the results of the interaction of a possible threat with a strength of the present. Offensive Strategies: It is the result of the combination of a strength in the present and an opportunity in the future.
This analysis will reveal the general strategic problem and the general strategic solution.
General strategic problem:
This will be formulated as follows: If the threats materialize taking into account the weaknesses of the organization, the strengths cannot be used to take full advantage of the opportunities (ADFO).
General strategic solution:
This will be elaborated in the following way: Strengthen strengths to maximize opportunities, minimizing weaknesses and mitigating the effect of threats (SWOT).
Following the logical sequence of the strategic management model, the formulation of the objectives corresponds.
I.2.4 Formulation of strategic objectives
This stage is essential since it will constitute the indispensable frame of reference from which a strategy and action plans in the social field will be built and evaluated.
The objectives are the ends towards which the activities of any organization or department are directed. They serve as a guideline for strategic planning at the lowest levels and offer criteria to assess the performance of the organization.
The objectives should be:
- Acceptable for all the affected actors within the company, in order to avoid resistances or even true obstructions to the subsequent application of actions. Flexible in their formulation to allow eventual adaptation to major changes in the external or internal environment. Measurable on the basis of the results obtained in each of the fields of Human Resources management affected by this objective. Motivators for all the company's collaborators, since they constitute the translation of the company's project guidelines into concrete perspectives for the coming years. Understandable for everyone; especially for hierarchical managers, who have the mission of realizing these objectives on the ground. Realistic,in order to avoid too great disappointments to a personnel who, on the contrary, would expect a lot of too ambitious objectives. Consistent with each other, since it is about developing a global (systematic) approach to social function.
Not all the criteria can be met, but they must be met at least partially so that the objectives formulated serve as a framework for the social strategy that is developed.
Next, we move on to the second phase of the process, the strategic formulation in which the possible strategic options must be identified, which will subsequently be selected based on the fulfillment of the objectives formulated.
I.2.5 Identification of strategic options
The identification of possible strategic options depends on several factors, among which it is possible to mention:
- The experience of the company: In this case, you must first select the solutions already experienced, since they are the ones that have the possibility of being successful when it comes to applying them. The distinctive competence of the company: During this identification, the options that use the company's know-how will be favored, privileging, for example, the concept of trade or activity. The company's qualified results: Obviously, the options with the greatest possibilities of increasing the company's social and economic achievements will be selected. The position of power of the social function within the company: This factor determines the degree of feasibility of the different options, the stronger this position, the more possible it will be to select original options during the identification process.The dependence of the company on the outside: In this particular some options cannot be selected if the ties that unite the company with its environment are too strong.
These ties determine a network of limitations and opportunities that must be taken into account when identifying the different possible options.
Taking these factors into account, the strategic options that will be identified are those that have the greatest chance of success when applying them, that is, those that allow achieving the objectives that have been formulated at the social level.
I.2.6 Selection of possible strategies
Once the possible strategies have been identified in the previous stage, it is necessary to choose the ones that will best meet the objectives previously formulated. This component is implicit in the last phase of the strategic management process.
In the selection of the possible strategy or strategies, the choice of one or more strategies constitutes the first stage, and is done taking into account certain criteria with which each of the possible strategies can be weighed to have a more global evaluation..
The chosen strategy should satisfy as much as possible one or more criteria that are deemed important in the situation in which the company finds itself.
The criteria to which reference is made are the following: (Besseyre, 1988: 167 - 168)
Consistency with objectives: This criterion is certainly the most important in this selection process. In this sense, it is necessary to evaluate which are the strategies that best allow achieving the established objectives.
The financial cost of the application: This second criterion is equally decisive in choosing a strategy. The evaluation of this cost cannot be done on a very precise basis, since some elements will be difficult (even impossible) to quantify.
What matters is obtaining an order of magnitude of the level of budget that must be allocated to implement the chosen strategies.
The period of application: This criterion in fact delimits the degree of real feasibility of the strategies identified as possible.
Indeed, even when efforts have been made to select only the strategic options that can, if necessary, be applied, some will be more difficult, and this for multiple reasons: resistance to change, inadequate management infrastructure, communication.
Consistency with the culture and project of the company: This criterion is situated at a different level from the previous ones, since it is more about judging the spirit than the letter of the identified strategy, when performing the Human Resources function a An important role in the procedures of "company culture and project", its manager must imperatively ensure that the choice is the tradition of the cultural features of the company, and above all, of the orientations defined in the framework of the project.
The weight of the external environment: This criterion, already taken into account during the previous stages, may still have importance in the choice made.
The weight of the local social community (neighborhood, city, region…) may, for example, be decisive in the selection or qualification of the skills that favor the local workforce.
The internal social climate: Like the previous one, this criterion has also been considered during the preceding stages, but still here it can play a determining role in the choice of strategy.
It must be effectively reasoned in terms of imagined scenarios (what will happen if…?), Since the essential thing is to preserve internal social peace, which is a requirement of every modern company.
The list of relevant criteria is obviously much longer actually. The person responsible for the social function is responsible for determining which ones to select and how to use them for the election.
From this moment on, it is possible to implement and control the chosen strategies.
Conclusions
From all these aspects discussed, it can be concluded that the Human Resources strategy and its application are revealed today as a fundamental requirement to achieve the final success of the company strategy.
Therefore, it is considered of utmost importance that the business strategy has its support in the Human Resources strategy; because this importance responds to a double need.
First, a need raised from within the company, and which can be considered as a result of a higher level of general training of people, and therefore a higher level of demands in search of job satisfaction (working conditions). and quality of life; information and communication; participation in decisions, etc.).
Second, a need created by the evolution of the general environment and the competitive environment. In order to achieve the above, it is necessary to start from the knowledge of the situation that Human Resources have in the company, and from there to carry out its projection in correspondence with its strategic objectives.
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