Resourcing strategy in an organization, employ specialist to coordinate resourcing within the organization. This resourcing strategy uses three actions to achieve their goals in employee resourcing. They include reallocating of tasks among employee, reallocating subordinate within the organization and making new recruitments from the external sources (Price, A. 2004 p.349-350). Human resource integration allows the company’s strategy to be translated into human resource strategy which is then changed to various activities of the human resources.
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Vertical human resource strategy for instance oversees all the above plans that focus on functions of a human resourcing strategy. For instance, in recruitment and selection of employees it would design a selection criterion (Torrington, T. D. Hall, L. and Taylor, S. 2002). The company strategy supervises the personnel flow within the organization and match key executives to the organizational plans. For example, in UK, oil companies use different strategies when they want to relocate to new regions. Their major focus is to reduce dependency on production, sales and to venture into other relevant opportunities which can facilitate their growth.
As a result, they may be forced to relocate the employees on the task, relocate the workers in the organization or to totally employ more recruits who have better knowledge on finance and marketing as opposed to those with technical skills (Torrington, T. D. Hall, L. and Taylor, S. 2002). This implies that a vertical integrated human resource strategy monitors the relationship between the human resource management functions and the organizational plans.
A horizontal organizational strategy is concerned with the relationship between human resource management activities (Torrington, T. D. Hall, L. and Taylor, S. 2002). It defines the conduct of the human resource management and how this conduct affects his relationship with other individuals within the organization. UK Oil Company conducts employee recruitment and selection may affect their appraisal within the organization.
When horizontal and vertical strategies are incorporated in human resource planning, the organization is bound to achieve a maximum benefit. Human resource planning will give wait to the needs of the staff (Price, A. 2004 p.349-350). On the hand vertical and horizontal strategies will then change these needs into individual specialization and the skills required to satisfy the job. Once the need for better financial skills is identified by human resource planners, there will be a need to provide proper content for the specified strategies.
In the analysis of labor market, the strategies adopted should be able to facilitate labor mobility. The organization should not look at human beings as commodities or resources. Horizontal and vertical planning strategies allows better interaction between managers and workers who are creative and social beings required for a productive benefit. Through this understanding, nations like France and a Germany have identified modes of providing descriptions within the trade unions that enhance labor market (Price, A. 2004 p.349-350).
The same adopted strategies should be able to cope with the key trends in labor market that influence human resource planning. These trends could include:
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- Outsourcing and off shoring- These decisions can be viewed as a strategic issue, although when implementing a strategy the executives should be aware of all the benefits and the risks involved. (Price, A. 2004 p.45)
- The change in the competition demographics – The arouse of new markets such as China, Western Europe and India, imply the occurrence of new or wider talent markets that should be considered when planning human resources. (Price, A. 2004 p.48)
- Foreign Inward investments – The reduction of global trade barriers and the international investments can bring new opportunities in terms of employment which in turn affect the long term strategic planning of human resources. (Price, A. 2004 p.84-100)
The role of labor market should not be ignored in handling human resource planning. Market analysis should be used to facilitate work force. Indicators such as those used in international labor organizations should be adopted to help gauge the progress of employee relations. Workers should be provided with a clear labor force, good employment to population ratio, status of employment and poverty to income rates. Planning should be responsive and flexible to retain relevance and validity in the organization. When vertical and horizontal strategies are used, the organizations can estimate future requirement and ways to satisfactorily provide them to the organization.
Price, A. 2004, Human Resource Management in a Business Context. 2nd ed. Thomson Learning, Australia; United Kingdom.
Torrington, T. D. Hall, L. and Taylor, S. 2002, Human Resource Management 6th ed. Financial Times Prentice Hall. Harlow.