Human Resource Strategic Planning Essay

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Human Resource Strategies (internal/cost, External Cost, Internal/Differentiation, External/differentiation)

Strategic Planning

The internal/cost strategy for human resources aims at reducing the cost of certain processes within an organization so that, in an ideal situation, the amount of funding necessary to provide either a service or a product to a customer is significantly decreased. This strategy attempts to make an efficient use of virtually all internal resources, which revolves primarily about the deployment and productivity of employees already existent within a business or company. To that end, there is little need or desire for the hiring of any external personnel, while at the same time, few attempts are made to bring in any additional resources not already contained within the organization. Management focuses on efficient use of current laborers and the various contributions they can make to a company in order to maximize productivity while keeping costs associated with it as low as possible. The employer, of course, does all it can to satisfy the particular needs of its employees, which is done in an attempt to foster employee loyalty and keep the organization as autonomous and self-contained as it can.

There is a great deal of similarity between an external cost strategy and that of an internal cost one. The ultimate goal of both strategies is synonymous -- to greatly lower the costs associated with producing whatever product or providing whatever service a particular organization is in business for.

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The primary difference in these strategies, however, is in the methodology employed to do so. While the internal strategy is focused upon offering an employee-sensitive environment to maximize the amount of productivity of workers, the external strategy aims to frequently bring in an influx of employees that are virtually expendable to perform somewhat menial tasks that require little, if any, training. Cost is effectively lowered by reducing the amount of wages and benefits for employees, who….....

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