While the basic elements of strategic human resource management (HRM) models tend to be similar, the order in which they are arranged and the number of strategies can vary. Some of the common elements of these models include environmental analysis, the creation of a mission statement, and the creation of strategies based on an analysis of organizational strengths. How and when these and other elements are approached depends upon the needs of the organization.
An organization that is building itself based on external influences will usually use one of the strategic HRM models that begin with an environmental review. This process can be both internal and external. It is a way for the organization to gauge what needs exist and how well it can address them.
A common following step is to create a mission statement which meshes with the information gathered in the environmental review. Then the organization can analyze its strengths and weaknesses. Once these qualities are understood, HR can create a strategy for helping the company to reach its goals.
Other strategic HRM models start with an internal focus. In these situations, an organization will typically start with the creation of the mission statement. Once this is in place, an external and internal environmental review can give some insight as to what needs to be done to achieve organizational goals. Then many groups will use the same methods of self-analysis and strategy building as with the previous model.
Many strategic HRM models include the creation of HR policies that will support organizational strategies. These policies are generally meant to be flexible, as elements such as changes in the company, industry, and overall economy can necessitate changes. By periodically conducting a new analysis and environmental review, an organization can maximize its effectiveness. Though it is not usually necessary, in some cases a dramatic change will be made via the creation of a new mission statement.
Some of the most effective strategic HRM models also include an evaluation of changes implemented as a result of the process. If policies have not helped the organization to achieve the desired effect, then the entire strategic process may be repeated. In situations where only small changes are needed, a few policy changes may suffice. An HR department may also use different insights gathered from the analysis step to try new approaches to policymaking without the expense and effort of another full review.