The sequence of strategy formulation
A sequence of questions for formulating strategy is illustrated in Figure 2.1 2.
In reality, of course, the process of developing HR strategies does not follow
this sequence so neatly. The analysis may be incomplete or out-of-date as
soon as it is made. The diagnosis may be superficial in the face of rapidly
evolving factors that are difficult to pin down. The alternatives may not be
easy to evaluate and iteration is required to optimize the solution. Action plans
may look good on paper but are hard to put into practice, and it may be
difficult to estimate costs and the need for other resources. But an attempt is
worth making and this framework is useful when putting a strategy proposal
together.
General issues affecting the formulation of HR strategies
Although systematic approaches such as those described above are
desirable, it should be remembered that strategic HRM is more of an attitude
of mind than a step-by-step process that takes you inexorably from a mission
statement to implementation.
Strategic HR planning is usually a much less orderly affair than the models
suggest. This is entirely understandable if it is borne in mind that strategic
HRM is as much about the management of change in conditions of
uncertainty as about the rigorous development and implementation of a
logical plan.
Perhaps the best way to look at the reality of strategic HRM is to remember
the statement made by Mintzberg et al (1988) that strategy formulation is
about 'preferences, choices, and matches' rather than an exercise 'in applied
logic'. It is also desirable to follow Mintzberg's analysis and treat HR strategy
as a perspective rather than a rigorous procedure for mapping the future.
Moore (1992)^64 has suggested that Mintzberg has looked inside the
organization, indeed inside the heads of the collective strategists, and come
to the conclusion that, relative to the organization, strategy is analogous to the
personality of an individual. As Mintzberg sees them, all strategies exist in the
minds of those people they make an impact upon. What is important is that