JURNET Company Design 1

Corresponding author: Elham Bozorg Haddad

Email: [email protected]

WWW.ENGINEERSPRESS.COM

World of Sciences Journal

www.engineerspress.com

Year: 2013 Volume: 01 Issue: 16 Pages: 44-63

Taher Roshandel Arbatani1, Elham Bozorg Hadad1*

1 Associate professor, University of Tehran

1* Master of Business Administration (Strategic), University of Tehran

ABSTRACT

KEYWORDS: Human resource management, Human resource strategies, SWO

● ● ●

Today human resources play a vital role in company’s survival and profit making. To make optimal use of other resources long term and strategic planning is needed. The same applies to human resources. Within the framework of human resource strategies, organizations can optimally make use of opportunities. Strategic human resource management allows necessary harmony between organization’s different activities, favorable opportunities and prevention of possible threats. It is an undeniable fact that strategic integration is vital to compatibility of HR strategy and organization’s strategy. The objective of creating strategic integration is to bring harmony between HR management and organization’s goals. The method applied for the current research is based on the following steps: A) application of a model based on quadruple subsystems including recruitment and provision, improvement, maintenance and application B) application of David model, based on SWOT model C) application of strategies of human resource management.

● ● ●

Compiling Human Resource Strategies Using SWOT

Model (A case study: one of Iran’s industrial steel

companies)

World of Sciences Journal ISSN: 2307-3071

http://www.engineerspress.com/


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Introduction

Strategic human resource management is a comprehensive and pervasive approach to manage staff affairs and match

the human resource strategies to company‘s business strategies. Human resource strategy provides an instruction for

human resource unit. In other words, human resource strategy creates goals and focuses of attention for the human

resource unit and defines the value to be provided by the human resource unit. (Bamberger, 1991) and (Christensen,

2006) ―strategic human resource management deals with long-term issues and those related with inside and outside

of an organization and its outcome are the policies for the use of different areas of human resource.‖(Armstrong,

200)

Research Literature:

The aim of this research is to compile HR strategies through study of organization‘s internal factors (weaknesses and

strengths) and external factors (opportunities and environmental threats) and compiling favorable HR strategies and

Delphi methods.

Human resource management strategies:

―Strategy‖ originally was a military word which in Oxford Dictionary it is defined as: a commander-in chief, the art

of planning and directing overall military operations and movements in a war or battle. This definition does not have

much in common with strategy concept in the area of business, public and private organization. However, it implies

that strategy is an art and the head of an organization is in charge of all the achievements and consequences.

Drucker (1995) defines strategic decisions as ―all the decisions related to company‘s goals and the ways to achieve

it.‖

According to Chandler (1962) strategy means defining long-term and basic goals of a company. As Child (1972)

says strategy is a set of basic and vital decisions about outcomes of an activity and the tools to achieve it.

Kei (1999) states that business strategy deals with harmony between company‘s internal potential capabilities with

its external environment (Armstrong, Michael 1384)

Strategy key concepts:

Three key concepts of strategy are as follows:

Competitive advantage: competitive advantage goes to a company that values its clients.

Distinct capabilities: The opportunity a company has in order to retain competitive advantage is defined by its

capabilities.

Strategic harmony: is to maximize the harmony between competitive adventure and of a company with its

capabilities and also to maximize resources in relation to the opportunities existing in external environment.

(Armestrong, 2002)


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Strategic Management:

This operational procedure is regarded as a process that theoretically consists of sequence of activities:

Strategic designing, strategic planning, implementing the strategy of review and update.

Strategic management is defined as follows:

―Strategic management is the set of decisions and actions resulting in the formulation and implementation of

strategies designed to achieve the objectives of an organization‖.

Powerful managers specify organization‘s policies and protect them against dramatic changes. They look to the

future, and such a vision allows them take better decisions. Also relying on current capacities, capabilities and

strengths they envision bright future.

Strategic Management of Human Resource:

The concept of human resource management was first introduced in the middle of 1980s and its objective was to

provide some methods for management of the staff and improvement of organization‘s performance (Saadat, 2007).

The concept of strategic human resource management is built on the important role of human resource management

which emphasizes the strategic nature of human resource and also integration of human resource strategies with

organization‘s strategy. Schuler (1992) has described the strategic management of human resources as "to stimulate

all activities affecting the behavior of individuals in the design and implementation of the organization's strategic

needs." Wright and McMahon (1992) believe that strategic human resource management is a planned allocation

pattern of human resource and undertaking of activities to help the organization achieve its goals. Strategic

management of human resources is a method for deciding the objectives and plans of issues, such as employment,

recruitment, training, and bonus and performance management. The strategic management of human resources in

general deals with the relationship between human resource management and strategic management of the

organization. (Armstrong, 2006)

The main distinction between traditional concepts of human resource management and strategic human resource

management, as Guest (1989) states is the degree of integration of human resource management with the

organization's strategic decision making processes in order to cope with environmental changes. Bir (1997) believes

that the competitive environment, the globalization and constant changes in technology and markets are the main

reasons for the transformation of human resource management concepts into the strategic management of human

resources. The traditional concepts of human resource management only emphasizes the physical skills, special

training, expertise and efficiency of individual employees and instead of focusing on individuals, tried to focus on

the work done by the individuals. While the strategic management of human resources, in addition to the above-

mentioned items, in all sectors, emphasizes the effectiveness and integrity of the overall activities of the

organization. (Armstrong, 2006)

AIMS OF HRM

As Ulrich and Lake (1990) remark: ‗HRM systems can be the source of organizational capabilities that allow firms

to learn and capitalize on new opportunities.‘ Specifically, HRM is concerned with achieving objectives in the areas

summarized below. (Armstrong, 2006)


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Organizational effectiveness

‗Distinctive human resource practices shape the core competencies that determine how firms compete‘ (Cappelli and

Crocker-Hefter, 1996)

HRM strategies aim to support programmers for improving organizational effectiveness by developing policies in

such areas as knowledge management, talent management and generally creating ‗a great place to work‘. This is the

‗big idea‘ as described by Purcell et al (2003), which consists of a ‗clear vision and a set of integrated values‘. More

specifically, HR strategies can be concerned with the development of continuous improvement and customer

relations policies. (Armstrong, 2006)

Human capital

The human capital of an organization consists of the people who work there and on whom the success of the

business depends. Human capital has been defined by Bontis et al (1999) as follows: ‗Human capital represents the

human factor in the organization; the combined intelligence, skills and expertise that give the organization its

distinctive character. The human elements of the organization are those that are capable of learning, changing,

innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the

organization.‘ (Armstrong, 2006)

Knowledge management

Knowledge management is ‗any process or practice of creating, acquiring, capturing, sharing and using knowledge,

wherever it resides, to enhance learning and performance in organizations‘ (Scarborough et al 1999). HRM aims to

support the development of firm-specific knowledge and skills that are the result of organizational learning

processes. (Armstrong, 2006)

Reward management

HRM aims to enhance motivation, job engagement and commitment by introducing policies and processes that

ensure that people are valued and rewarded for what they do and achieve, and for the levels of skill and competence

they reach. (Armstrong, 2006)

Employee relations

The aim is to create a climate in which productive and harmonious relationships can be maintained through

partnerships between management and employees and their trade unions. (Armstrong, 2006)

Meet diverse needs

HRM aims to develop and implement policies that balance and adapt to the needs of its stakeholders and provide for

the management of a diverse workforce, taking into account individual and


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group differences in employment, personal needs, work style and aspirations, and the provision of equal

opportunities for all. (Armstrong, 2006)

Rhetoric and reality

The research conducted by Gratton et al (1999) found that there was generally a wide gap between the sort of

rhetoric expressed above and reality. Managements may start with good intentions to do some or all of these things,

but the realization of them – ‗theory in use‘ – is often very difficult. This arises because of contextual and process

problems: other business priorities, short-termism, and lack of support from line managers, an inadequate

infrastructure of supporting processes, lack of resources, resistance to change and lack of trust. (Armstrong, 2006)

A Comprehensive Strategy-Formulation Framework

Important strategy-formulation techniques can be integrated into a three-stage decision-making framework, as

shown in Figure. (Shams Abdolhamid, 1390)

STAGE 1: THE INPUT STAGE

External Factor Evaluation (EFE) Internal Factor Evaluation (IFE)

Matrix Matrix

STAGE 2: THE MATCHING STAGE

Strengths-Weaknesses-

Opportunities-Threats

(SWOT) Matrix

STAGE 3: THE DECISION STAGE

Quantitative Strategic Planning Matrix (QSPM)

FIGURE 1: The Strategy-Formulation Analytical Framework


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The Internal Factor Evaluation (IFE) Matrix

A summary step in conducting an internal strategic-management audit is to construct an Internal Factor Evaluation

(IFE) Matrix. This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the

functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those

areas. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a scientific approach

should not be interpreted to mean this is an all-powerful technique. A thorough understanding of the factors included

is more important than the actual numbers. IFE Matrix can be developed in five steps:

1. List key internal factors as identified in the internal-audit process. Use a total of from 10 to 20 internal

factors, including both strengths and weaknesses. List strengths first and then weaknesses. Be as specific as

possible, using percentages, ratios, and comparative numbers. Recall that Edward Deming said, ―In God we

trust. Everyone else bring data.‖

2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to each factor. The weight

assigned to a given factor indicates the relative importance of the factor to being successful in the firm‘s

industry. Regardless of whether a key factor is an internal strength or weakness, factors considered to have

the greatest effect on organizational performance should be assigned the highest weights. The sum of all

weights must equal 1.0.

3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major weakness (rating =

1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4). Note that

strengths must receive a 3 or 4 rating and weaknesses must receive a 1 or 2 rating. Ratings are thus

company-based, whereas the weights in step 2 are industry-based.

4. Multiply each factor‘s weight by its rating to determine a weighted score for each variable.

5. Sum the weighted scores for each variable to determine the total weighted score for the organization.

(Shams Abdolhamid,1390)

The External Factor Evaluation (EFE) Matrix

An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate economic, social, cultural,

demographic, environmental, political, governmental, legal, technological, and competitive information. EFE Matrix

can be developed in five steps:

1. List key external factors as identified in the external-audit process. Include a total of 15 to 20 factors,

including both opportunities and threats, which affect the firm and its industry. List the opportunities first

and then the threats. Be as specific as possible, using percentages, ratios, and comparative numbers

whenever possible. Recall that Edward Deming said, ―In God we trust. Everyone else bring data.‖

2. Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very important). The weight

indicates the relative importance of that factor to being successful in the firm‘s industry. Opportunities

often receive higher weights than threats, but threats can receive high weights if they are especially severe

or threatening. Appropriate weights can be determined by comparing successful with unsuccessful

competitors or by discussing the factor and reaching a group consensus. The sum of all weights assigned to

the factors must equal 1.0.


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3. Assign a rating between 1 and 4 to each key external factor to indicate how effectively the firm‘s current

strategies respond to the factor, where 4 = the response is superior, 3 = the response is above average, 2 =

the response is average and 1 = the response is poor. Ratings are based on effectiveness of the firm‘s

strategies. Ratings are thus company-based, whereas the weights in Step 2 are industry-based. It is

important to note that both threats and opportunities can receive a 1, 2, 3, or 4.

4. Multiply each factor‘s weight by its rating to determine a weighted score.

5. Sum the weighted scores for each variable to determine the total weighted score for the organization.

(Shams Abdolhamid,1390)

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching tool that helps

managers develop four types of strategies: SO (strengths-opportunities) Strategies, WO (weaknesses-opportunities)

Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-threats) Strategies.3 Matching key external and

internal factors is the most difficult part of developing a SWOT Matrix and requires good judgment—and there is no

one best set of matches. Note in Table 6-1 that the first, second, third, and fourth strategies are SO, WO, ST, and

WT strategies, respectively.

SO Strategies use a firm‘s internal strengths to take advantage of external opportunities. All managers would like

their organizations to be in a position in which internal strengths can be used to take advantage of external trends

and events. Organizations generally will pursue WO, ST, or WT strategies to get into a situation in which they can

apply SO Strategies. When a firm has major weaknesses, it will strive to overcome them and make them strengths.

When an organization faces major threats, it will seek to avoid them to concentrate on opportunities.

WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities. Sometimes key

external opportunities exist, but a firm has internal weaknesses that prevent it from exploiting those opportunities.

For example, there may be a high demand for electronic devices to control the amount and timing of fuel injection in

automobile engines (opportunity), but a certain auto parts manufacturer may lack the technology required for

producing these devices (weakness). One possible WO Strategy would be to acquire this technology by forming a

joint venture with a firm having competency in this area. An alternative WO Strategy would be to hire and train

people with the required technical capabilities.

ST Strategies use a firm‘s strengths to avoid or reduce the impact of external threats. This does not mean that a

strong organization should always meet threats in the external environment head-on. An example of ST Strategy

occurred when Texas Instruments used an excellent legal department strength) to collect nearly $700 million in

damages and royalties from nine Japanese and Korean firms that infringed on patents for semiconductor memory

chips (threat). (Fred R. David 1999)

The Quantitative Strategic Planning Matrix (QSPM)

Other than ranking strategies to achieve the prioritized list, there is only one analytical technique in the literature

designed to determine the relative attractiveness of feasible alternative actions. This technique is the Quantitative

Strategic Planning Matrix (QSPM), which comprises Stage 3 of the strategy-formulation analytical framework.6

This technique objectively indicates which alternative strategies are best. The QSPM uses input from Stage 1

analyses and matching results from Stage 2 analyses to decide objectively


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among alternative strategies. That is, the EFE Matrix, IFE Matrix, and Competitive Profile Matrix that make up

Stage 1, coupled with the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix that

make up Stage 2, provide the needed information for setting up the QSPM (Stage 3). The QSPM is a tool that allows

strategists to evaluate alternative strategies objectively, based on previously identified external and internal critical

success factors. Like other strategy-formulation analytical tools, the QSPM requires good intuitive judgment. Six

steps required to develop a QSPM are discussed:

1. Make a list of the firm‘s key external opportunities/threats and internal strengths/ weaknesses in the left

column of the QSPM

2. Assign weights to each key external and internal factor.

3. Examine the Stage 2 (matching) matrices, and identify alternative strategies that the organization should

consider implementing.

4. Determine the Attractiveness Scores (AS)

5. Compute the Total Attractiveness Scores.

6. Compute the Sum Total Attractiveness Score. (Fred R. David 1999)

Research Methodology:

Data collection method of the current research is analytical-descriptive. However, this is an applied research.

Considering that the objective is to compile HR strategies for one of the Steel Industrial Companies, statistical

population includes all the managers, supervisors and persons in charge in different sections. This is a field research

to explain and investigate the nature of the current situation.

Statistical population includes 34 persons and covers all the mangers, supervisors and persons in charge in a Steel

Industrial Company who are working in the main company and the subsidiaries. Through application of census

method, the statistical population includes the whole 34 members of the population.

Data was collected by means of questionnaires and interviews. The questionnaires were distributed in person and via

Email. Research data was obtained during separate meetings with managers, supervisors and persons in charge in

various sections of the company and main subsidiaries of HR recruitment and provision, improvement, maintenance

and application. Then the collected data was captured in SPSS and was analyzed. (Fred R. David 1999)

Questionnaire’s Validity and Reliability:

With the current research, the main instrument for data collection is the Questionnaire. HR internal and external

factors were identified with the help of managers and by means of Delphi method and the first questionnaires were

prepared. Validity of the questionnaires was approved by academic experts. To test the reliability of the

questionnaires, Cronbach's alpha coefficient was applied. The calculated coefficient is 0.84 which implies the

reliability of the evaluation instrument.


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Findings:

External identified factors for other main HR subsystems

The external factors including opportunities and threats for other HR areas are listed in Table 1.

Table 1 Opportunity and Threats

Weights Rate Score Opportunities

0.04 3 0.12 HR

management

The possibility of promotion of company‘s culture due to

employment of university graduated people O1

0.04 3 0.12

The fact that there is an appropriate communicative platform to

introduce the organization O2

0.06 4 0.24 The positive effect of rich Islamic culture on employers‘ behavior O3

0.05 3 0.15 Improvement

Other organization‘s enthusiasm for training sessions O4

0.05 4 0.2 Government‘s positive attitude towards HR development O5

0.06 3 0.18 Employment

Good reputation of the company among other rivals O6

0.04 2 0.08 Governmental employers integrated salary system O7

0.06 4 0.24 Maintenance Mother company support of company‘s plans O8

Threats

0.05 3 0.15 HR

management

Not identifying, categorizing and prioritizing the beneficiaries T1

0.08 3 0.24 Low job security in private sector T2

0.05 2 0.1 Lack of favorable relation with internal and external beneficiaries T3

0.07 2 0.14 Recruitment

Lack of required experience among university graduated individuals

(knowledge, communication, etc.) T4

0.05 3 0.15 Employment Lack of welfare programs in private sector T5

0.05 3 0.15

Maintenance

Unbelief of employers in existence of a system for delegation of

authority in private companies T6

0.05 3 0.15

Unbelief of employers in existence of staff contribution in private

companies T7

0.05 3 0.15 Unbelief of employers in being valuable to private companies T8

0.06 3 0.18 Mismatch between ever growing needs with organization‘s facilities T9

0.04 3 0.12 Unequal execution of lay-off rules within organizations T10

0.05 3 0.15

Weakness of rules for outsourcing and privatization

T11

1 3.01

Internal identified factors for other main HR subsystems

The internal factors including weakness and strengths for other HR areas are listed in the Table 2.


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Table 2 Strengths and Weaknesses

Weights Rate Score Strengths

0. 05 4 0. 2

HR management

How important strategic role of HR is to company‘s

management S1

0. 03 3 0. 09 Organization‘s credit, good reputation and history S2

0. 03 3 0. 09 Clear work plans and notifying the employers S3

0. 02 3 0. 06 Recruitment

Planning manpower in terms of number of individuals S4

0. 02 3 0. 06 Existence of enough capacity for application of manpower S5

0. 04 2 0. 08

Improvement

Helpful suitable training programs S6

0. 03 3 0. 09

Increase of employers‘ capabilities and performance due to

training courses S7

0. 02 2 0. 04 Making endeavors to use educational technologies S8

0. 03 3 0. 09 Employment

The health and insurance system for employers S9

0. 03 3 0. 09 Formal and informal relations among employers S10

0. 03 3 0. 09

Maintenance

On-the-job trainings S11

0. 02 3 0. 06 A complaint-resolving system S12

0. 02 3 0. 06 A feedback system S13

0. 02 3 0. 06 A systematic dismissal procedure for employers S14

Weaknesses

0. 04 3 0. 12 HR management Lack of strategic vision among some of the managers W1

0. 03 2 0. 06 Recruitment Lack of a plan for recruitment W2

0. 05 2 0. 1

Improvement

Not reviewing the courses and updating the chapters based

on today‘s sources W3

0. 05 2 0. 1 Not updating employer‘s educational profiles W4

0. 05 2 0. 1

Not paying attention to improvement of training activities in

case of some jobs W5

0. 05 2 0. 1

Employment

Lack of a plan for job promotion and substitution W6

0. 05 2 0. 1 Not investigating the process of work leaving W7

0. 05 2 0. 1

Not providing job opportunities at proper periods of time

based on skill and performance W8

0. 05 2 0. 1 Low salary and benefits comparing other organizations W9

0. 04 2 0. 08 Lack of welfare plans in case of some jobs W10

0. 05 3 0. 15

Maintenance

Lack of loyalty among employers at different levels W11

0. 05 2 0. 1 Lack of a substitute at operational levels W12

0. 05 2 0. 1 Not doing exit interviews for all jobs W13

1 2. 47


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SO Strategies

Through combination of strengths and opportunities, we come to strategies of recruitment and employment which

include identification of opportunities and future‘s need of work forces, planning for provision of internal and

external workforces and improvement of capacity and the possibility for recruitment to specialist jobs. The list of

these items is provided in Table 3.

Table 3: combination of strengths and opportunities

The possibility of promotion of company‘s culture due to


The fact that there is an appropriate communicative platform to


The positive effect of rich Islamic culture on employers‘ behavior O3

Good reputation of the company among other rivals O6

Governmental employers integrated salary system

O7

Mother company support of company‘s plans O8

How important strategic role of HR is to company‘s management S1

Organization‘s credit, good reputation and history S2

Clear work plans and notifying the employers S3

Planning manpower in terms of number of individuals S4

Existence of enough capacity for application of manpower S5



A systematic dismissal procedure for employers S14

WO Strategies

Through combination of weaknesses and opportunities, we come to strategies of HR development which include

application of meritocracy at jobs‘ different levels, improvement and making diversity in training programs and the

assurance of equal education opportunities and establishing the appropriate mechanisms for implementation of

training plans. The list of these items is provided in Table 4.


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Table 4: combination of weaknesses and opportunities

Other organization‘s enthusiasm for training sessions O4

Government‘s positive attitude towards HR development O5

Governmental employers integrated salary system

O7

Mother company support of company‘s plans O8

Not reviewing the courses and updating the chapters based on

today‘s sources W3

Not updating employer‘s educational profiles W4

Not paying attention to improvement of training activities in case of

some jobs W5


Not investigating the process of work leaving W7

Not providing job opportunities at proper periods of time based on

skill and performance W8

Lack of welfare plans in case of some jobs W11


ST Strategies

Through combination of strengths and threats, we come to strategies of performance management which include

establishment of a system for contribution and delegation of authority, establishment of motivational procedures to

boost effectiveness and improvement of integrated evaluation system and strategy area which includes staff relations

containing items such as establishing mechanisms for communication with the beneficiaries, investigating the

effectiveness of complaint systems and improving staff relations to help knowledge transfer and boost

communication skills. The list of these items is provided in Table 5 and 6.


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Table 5: combination of strengths and threats


Lack of favorable relation with internal and external beneficiaries T3

Lack of welfare programs in private sector T5




companies T7

Unbelief of employers in being valuable to private companies T8

Unequal execution of lay-off rules within organizations T10


T11



Helpful suitable training programs S6

Increase of employers‘ capabilities and performance due to training

courses S7

Making endeavors to use educational technologies S8


Formal and informal relations among employers S10


A complaint-resolving system

S12

A feedback system S13


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Table 6: combination of strengths and threats


Low job security in private sector T2

Lack of favorable relation with internal and external beneficiaries T3

Lack of required experience among university graduated

individuals (knowledge, communication, etc.) T4





companies T7

Mismatch between ever growing needs with organization‘s

facilities T9

Weakness of rules for outsourcing and privatization T11



Formal and informal relations among employers S10


A complaint-resolving system

S12

A feedback system S13

TW Strategies

Through combination of weaknesses and threats, we come to strategies of compensation and benefits which include

designing new payment plans, welfare initiatives and also systematizing of payment. The list of these items is

provided in Table 7.


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Table 7: combination of weaknesses and threats

Low job security in private sector T2





companies T7

Unbelief of employers in being valuable to private companies T8

Mismatch between ever growing needs with organization‘s

facilities T9

Unequal execution of lay-off rules within organizations T10


T11

Lack of strategic vision among some of the managers W1


Not investigating the process of work leaving W7

Low salary and benefits comparing other organizations W9

Lack of welfare plans in case of some jobs W10


Not doing exit interviews for all jobs W13

Matrix for threats, opportunities, weaknesses and strengths

SWOT matrix provided in the table 2 below shows the summary of other combinations.

Always be white S- Strengths W- Weaknesses

O- opportunities

SO Strategies

Recruitment and employment

strategy includes:

Identifying

opportunities and

future needs for work

forces

Planning for

recruitment of internal

and external work

forces

Increasing the capacity

and possibility of

WO Strategies

HR development strategies

include:

Application of

meritocracy at jobs‘

different levels

improvement and

making diversity in

training programs and

the assurance of equal

education opportunities

Establishing

appropriate

mechanisms for


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recruitment for

specialist jobs

implementation of

training plans

T- Threats

ST Strategies

Performance management

strategies include:

Establishment of a

system for contribution

and delegation of

authority

Establishment of

motivational systems

to boost effectiveness

Improvement of

integrated system for

evaluation and

promotion

Staff relations strategies include:

Establishing

appropriate

mechanisms for

communication with

the beneficiaries

Analyzing the

effectiveness of

complaints systems

Improving staff

relations to help

knowledge transfer

and boost

communication skills

WT Strategies

Compensation and benefit strategy

includes:

Designing new

payment plans

welfare initiatives

systematizing of

payment

FIGURE 2: SWOT matrix

Prioritizing strategies by means of QSPM Matrix:

At this stage, for each internal and external factor, based on the related strategy, a score is given. The total of

multiplying of these scores by each factor‘s coefficient shows the favorability of that strategy. These calculations are

shown in Table 8.


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Table 8 Prioritizing strategies

Weight recruitment and

employment strategies

Scor

e

0. 04 2 0. 08 The possibility of promotion of company‘s culture due to


0. 04 3 0. 12 The fact that there is an appropriate communicative platform to


0. 06 3 0. 18 The positive effect of rich Islamic culture on employers‘ behavior O3

0. 06 3 0. 18 Good reputation of the company among other rivals O6

0. 04 2 0. 08 Governmental employers integrated salary system

O7

0. 06 2 0. 12 Mother company support of company‘s plans O8

0. 05 2 0. 1 How important strategic role of HR is to company‘s management S1

0. 03 3 0. 09 Organization‘s credit, good reputation and history S2


0. 02 3 0. 06 Planning manpower in terms of number of individuals S4

0. 02 3 0. 06 Existence of enough capacity for application of manpower S5

0. 03 2 0. 06 The health and insurance system for employers S9

0. 03 2 0. 06 On-the-job trainings S11

0. 02 2 0. 04 A systematic dismissal procedure for employers S14

weights human resource

development strategies

0. 05 3 0. 15 Other organization‘s enthusiasm for training sessions O4

0. 05 4 0. 2 Government‘s positive attitude towards HR development O5

0. 04 2 0. 08 Governmental employers integrated salary system

O7

0. 06 4 0. 24 Mother company support of company‘s plans O8

0. 05 2 0. 1 Not reviewing the courses and updating the chapters based on

today‘s sources W3

0. 05 3 0. 15 Not updating employer‘s educational profiles W4

0. 05 3 0. 15 Not paying attention to improvement of training activities in case

of some jobs W5

0. 05 3 0. 15 Lack of a plan for job promotion and substitution W6


0. 05 2 0. 1 Not providing job opportunities at proper periods of time based

on skill and performance W8

0. 05 3 0. 15 Lack of welfare plans in case of some jobs

W1

1


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0. 05 2 0. 1 Lack of loyalty among employers at different levels

W1

2

weights performance

management strategies

0. 05 2 0. 1 Not identifying, categorizing and prioritizing the beneficiaries T1

0. 05 2 0. 1 Lack of favorable relation with internal and external beneficiaries T3

0. 05 2 0. 1 Lack of welfare programs in private sector T5

0. 05 3 0. 15 Unbelief of employers in existence of a system for delegation of


0. 05 3 0. 15 Unbelief of employers in existence of staff contribution in private

companies T7

0. 05 3 0. 15 Unbelief of employers in being valuable to private companies T8

0. 04 2 0. 08 Unequal execution of lay-off rules within organizations T10

0. 05 2 0. 1 Weakness of rules for outsourcing and privatization

T11



0. 04 2 0. 08 Helpful suitable training programs S6

0. 03 3 0. 09 Increase of employers‘ capabilities and performance due to

training courses S7

0. 02 2 0. 04 Making endeavors to use educational technologies S8

0. 03 3 0. 09 The health and insurance system for employers S9



0. 02 2 0. 04 A complaint-resolving system

S12


weights staff relations strategies

0. 05 3 0. 15 Not identifying, categorizing and prioritizing the beneficiaries T1

0. 08 3 0. 24 Low job security in private sector T2

0. 05 3 0. 15 Lack of favorable relation with internal and external beneficiaries T3

0. 07 3 0. 21 Lack of required experience among university graduated

individuals (knowledge, communication, etc.) T4





companies T7

0. 06 2 0. 12 Mismatch between ever growing needs with organization‘s

facilities T9


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0. 05 1 0. 05 Weakness of rules for outsourcing and privatization T11





0. 02 3 0. 06 A complaint-resolving system

S12


weights compensation and

benefit strategies

0. 08 1 0. 08 Low job security in private sector T2





companies T7

0. 05 3 0. 15 Unbelief of employers in being valuable to private companies T8

0. 06 2 0. 12 Mismatch between ever growing needs with organization‘s

facilities T9

0. 04 2 0. 08 Unequal execution of lay-off rules within organizations T10

0. 05 2 0. 1 Weakness of rules for outsourcing and privatization

T11

0. 04 3 0. 12 Lack of strategic vision among some of the managers W1

0. 05 2 0. 1 Lack of a plan for job promotion and substitution W6


0. 05 3 0. 15 Low salary and benefits comparing other organizations W9

0. 04 2 0. 08 Lack of welfare plans in case of some jobs

W1

0

0. 05 1 0. 05 Lack of loyalty among employers at different levels

W1

1

0. 05 2 0. 1 Not doing exit interviews for all jobs W1

3

Favorite strategies by means of QSPM Matrix:

The total of multiplying of these scores by each factor‘s coefficient shows the favorability of that Strategy. These

calculations are shown in Figure 3.


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FIGURE 3: Quantitative Strategic Planning Matrix

References

Bamberger, P. A. And Philips; B. Organizational Environment versus business strategy: Parallel versus conflicting

influences on HR strategy. Human Resource management

Christensen, Ralph, Roadmap to Strategic HR; Turning a Great Idea into a Business Reality; American Management

Association (2006)

Armstrong, M, A Guide for Strategic Human Resource Management, (2002)

Armstrong ,Michael, strategic management, translated by khodayar rabily, hasan tofighi, fara 2001

Armstrong, Michael strategic human resource, translated by mohamad arabi, davoud ezadi 2004

Armstrong, M, A Guide for Strategic Human Resource Management,(2002)

Saadat esfandiar, human resource management 2001

Armstrong ,Michael, A Handbook of Human Resource Management Practice, 2006

Armstrong, Michael strategic human resource, translated by mohamad arabi, davoud ezadi 2007

Shams abdolhamid, strategic management 2011

Fred R. David, strategic management concept and cases 1999

recruitment and employment strategies

human resource development strategies

performance management strategies

compensation and benefit strategies

staff relations strategies

1.29

1.72

1.7

1.63

1.58


JURNET Company Design 1

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