Strategic Link between HR Management and HR Model

The HR Models are the crucial component of the HR Management. The HR Model is about the operational layout of the HR design. It sets the HR Organizational Structure, the key roles and responsibilities of Human Resources, the responsibilities of units and the relationship with the internal and external clients of Human Resources.

The HR Strategy sets the vision and objectives for Human Resources. The HR Model sets the rules for the cooperation and helps to divide objectives among units within HR. The model is extremely important as most HR departments are able to define a challenging vision and objectives, but they fail in the implementation of goals completely.

The model allows the implementation of the strategy. The successful HR restructuring always starts with the development of the new operating HR model. It groups different HR processes into logical groups and allows to make strategic managerial decisions about the structure of HR. It allows to find responsible HR Managers for units. It speeds up HR processes as the boundaries between units are defined.

The HR Model connects the following components:

  • Business Strategy
  • HR Strategy
  • Internal Environment
  • External Environment
  • HR Systems

The business strategy defines the basic goals and objectives for the entire organization. Each function in the organization has to find the right approach and the way supporting the implementation of the strategic initiatives. The business strategy defines the basic imperatives for Human Resources. The HR Strategy has to provide the right vision and goals aligned with the overall business strategy. The HR Model has to be aligned with the business strategy as the managers do not complain about the lack of responsiveness from HR. The business strategy defines the requirements for the HR Management. The model has to provide the responses.

The HR Strategy is not just a simple extension of the business strategy. The HR Strategy sets priorities and goals for HR for several years. The business strategy defines the main goals, but the strategy of Human Resources defines the specific goals (including building the competitive advantage on the job market and the differentiation strategies). The Human Resources Strategy influences strongly the designed HR model. It is a bible for the development process.

The internal and external environment is about the internal culture, the style of the communication, the leadership culture and the employees of the organization. The HR Model has to fit culturally and it has to provide the right communication style. The external environment is about the industry standards and finding the competitive advantage against them. The advantage should work for HR employees as well.

The HR Systems are extremely important for the HR Model. Each model should be used as basis for the design of the HR Information Systems. It should define the requirements and the systems should be aligned with the operating model of HR. However, it usually works the other way around. The HR Model is adapted to be aligned with the HR Information System. This does not help to build the competitive HR department.