World of Sciences Journal
ISSN: 2307-3071
www.engineerspress.com
Year: 2013
Volume: 01
Issue: 16
Pages: 44-63
Compiling Human Resource Strategies Using SWOT
Model (A case study: one of Iran’s industrial steel
companies)
Taher Roshandel Arbatani1, Elham Bozorg Hadad1*
1
Associate professor, University of Tehran
1
* Master of Business Administration (Strategic), University of Tehran
ABSTRACT
●
●
●
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.
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KEYWORDS:
●
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Human resource management, Human resource strategies, SWO
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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 abovementioned 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)
Matrix
Internal Factor Evaluation (IFE)
Matrix
STAGE 2: THE MATCHING STAGE
Strengths-WeaknessesOpportunities-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
O2
Opportunities
The possibility of promotion of company‘s culture due to
employment of university graduated people
The fact that there is an appropriate communicative platform to
introduce the organization
O3
The positive effect of rich Islamic culture on employers‘ behavior
0.24
4
0.06
O4
Other organization‘s enthusiasm for training sessions
0.15
3
0.05
O5
Government‘s positive attitude towards HR development
0.2
4
0.05
O6
Good reputation of the company among other rivals
0.18
3
0.06
O7
Governmental employers integrated salary system
0.08
2
0.04
O8
Mother company support of company‘s plans
Threats
0.24
4
0.06
T1
Not identifying, categorizing and prioritizing the beneficiaries
0.15
3
0.05
T2
Low job security in private sector
0.24
3
0.08
T3
Lack of favorable relation with internal and external beneficiaries
Lack of required experience among university graduated individuals
(knowledge, communication, etc.)
0.1
2
0.05
0.14
2
0.07
0.15
3
0.05
0.15
3
0.05
0.15
3
0.05
0.15
3
0.05
O1
T4
T5
HR
management
Improvement
Employment
Maintenance
HR
management
Recruitment
Employment
Score
Rate
Weights
0.12
3
0.04
0.12
3
0.04
T7
Lack of welfare programs in private sector
Unbelief of employers in existence of a system for delegation of
authority in private companies
Unbelief of employers in existence of staff contribution in private
companies
T8
Unbelief of employers in being valuable to private companies
T9
Mismatch between ever growing needs with organization‘s facilities
0.18
3
0.06
T10
Unequal execution of lay-off rules within organizations
Weakness of rules for outsourcing and privatization
0.12
3
0.04
0.15
3
0.05
T6
T11
Maintenance
3.01
1
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
S1
Strengths
How important strategic role of HR is to company‘s
management
HR management
Score
Rate
Weights
0. 2
4
0. 05
0. 09
3
0. 03
0. 09
3
0. 03
0. 06
3
0. 02
S2
Organization‘s credit, good reputation and history
S3
Clear work plans and notifying the employers
S4
Planning manpower in terms of number of individuals
S5
Existence of enough capacity for application of manpower
0. 06
3
0. 02
S6
0. 08
2
0. 04
S7
Helpful suitable training programs
Increase of employers‘ capabilities and performance due to
training courses
0. 09
3
0. 03
S8
Making endeavors to use educational technologies
0. 04
2
0. 02
S9
The health and insurance system for employers
0. 09
3
0. 03
S10
Formal and informal relations among employers
0. 09
3
0. 03
S11
On-the-job trainings
0. 09
3
0. 03
S12
A complaint-resolving system
0. 06
3
0. 02
S13
A feedback system
0. 06
3
0. 02
S14
A systematic dismissal procedure for employers
0. 06
3
0. 02
Recruitment
Improvement
Employment
Maintenance
Weaknesses
W1
Lack of strategic vision among some of the managers
HR management
0. 12
3
0. 04
W2
Lack of a plan for recruitment
Not reviewing the courses and updating the chapters based
on today‘s sources
Recruitment
0. 06
2
0. 03
0. 1
2
0. 05
Improvement
0. 1
2
0. 05
W5
Not updating employer‘s educational profiles
Not paying attention to improvement of training activities in
case of some jobs
0. 1
2
0. 05
W6
Lack of a plan for job promotion and substitution
0. 1
2
0. 05
W7
0. 1
2
0. 05
W8
Not investigating the process of work leaving
Not providing job opportunities at proper periods of time
based on skill and performance
0. 1
2
0. 05
W9
Low salary and benefits comparing other organizations
0. 1
2
0. 05
W10
Lack of welfare plans in case of some jobs
0. 08
2
0. 04
W11
Lack of loyalty among employers at different levels
0. 15
3
0. 05
W12
Lack of a substitute at operational levels
0. 1
2
0. 05
W13
Not doing exit interviews for all jobs
0. 1
2
0. 05
W3
W4
Employment
Maintenance
2. 47
1
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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
O1
The possibility of promotion of company‘s culture due to
employment of university graduated people
O2
The fact that there is an appropriate communicative platform to
introduce the organization
O3
The positive effect of rich Islamic culture on employers‘ behavior
O6
Good reputation of the company among other rivals
Governmental employers integrated salary system
O7
O8
Mother company support of company‘s plans
S1
How important strategic role of HR is to company‘s management
S2
Organization‘s credit, good reputation and history
S3
Clear work plans and notifying the employers
S4
Planning manpower in terms of number of individuals
S5
Existence of enough capacity for application of manpower
S9
The health and insurance system for employers
S11
On-the-job trainings
S14
A systematic dismissal procedure for employers
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
O4
Other organization‘s enthusiasm for training sessions
O5
Government‘s positive attitude towards HR development
Governmental employers integrated salary system
O7
O8
Mother company support of company‘s plans
W3
Not reviewing the courses and updating the chapters based on
today‘s sources
W4
Not updating employer‘s educational profiles
W5
Not paying attention to improvement of training activities in case of
some jobs
W6
Lack of a plan for job promotion and substitution
W7
Not investigating the process of work leaving
W8
Not providing job opportunities at proper periods of time based on
skill and performance
W11
Lack of welfare plans in case of some jobs
W12
Lack of loyalty among employers at different levels
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
T1
Not identifying, categorizing and prioritizing the beneficiaries
T3
Lack of favorable relation with internal and external beneficiaries
T5
Lack of welfare programs in private sector
T6
Unbelief of employers in existence of a system for delegation of
authority in private companies
T7
Unbelief of employers in existence of staff contribution in private
companies
T8
Unbelief of employers in being valuable to private companies
T10
Unequal execution of lay-off rules within organizations
Weakness of rules for outsourcing and privatization
T11
S1
How important strategic role of HR is to company‘s management
S3
Clear work plans and notifying the employers
S6
Helpful suitable training programs
S7
Increase of employers‘ capabilities and performance due to training
courses
S8
Making endeavors to use educational technologies
S9
The health and insurance system for employers
S10
Formal and informal relations among employers
S11
On-the-job trainings
A complaint-resolving system
S12
S13
A feedback system
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Table 6: combination of strengths and threats
T1
Not identifying, categorizing and prioritizing the beneficiaries
T2
Low job security in private sector
T3
Lack of favorable relation with internal and external beneficiaries
T4
Lack of required experience among university
individuals (knowledge, communication, etc.)
T5
Lack of welfare programs in private sector
T6
Unbelief of employers in existence of a system for delegation of
authority in private companies
T7
Unbelief of employers in existence of staff contribution in private
companies
T9
Mismatch between ever growing needs with organization‘s
facilities
T11
Weakness of rules for outsourcing and privatization
S1
How important strategic role of HR is to company‘s management
S3
Clear work plans and notifying the employers
S10
Formal and informal relations among employers
S11
On-the-job trainings
graduated
A complaint-resolving system
S12
S13
A feedback system
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
T2
Low job security in private sector
T5
Lack of welfare programs in private sector
Unbelief of employers in existence of a system for delegation of
authority in private companies
Unbelief of employers in existence of staff contribution in private
companies
T6
T7
T8
T9
T10
Unbelief of employers in being valuable to private companies
Mismatch between ever growing needs with organization‘s
facilities
Unequal execution of lay-off rules within organizations
Weakness of rules for outsourcing and privatization
T11
W1
Lack of strategic vision among some of the managers
W6
Lack of a plan for job promotion and substitution
W7
Not investigating the process of work leaving
W9
Low salary and benefits comparing other organizations
W10
Lack of welfare plans in case of some jobs
W11
Lack of loyalty among employers at different levels
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
SO Strategies
Recruitment and employment
strategy includes:
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

O- opportunities


Identifying
opportunities and
future needs for work
forces
Planning for
recruitment of internal
and external work
forces
Increasing the capacity
and possibility of
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recruitment for
specialist jobs
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
implementation of
training plans
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
O1
O2
The possibility of promotion of company‘s culture due to
employment of university graduated people
The fact that there is an appropriate communicative platform to
introduce the organization
Scor
e
recruitment
and
employment strategies
Weight
0. 08
2
0. 04
0. 12
3
0. 04
O3
The positive effect of rich Islamic culture on employers‘ behavior
0. 18
3
0. 06
O6
Good reputation of the company among other rivals
Governmental employers integrated salary system
0. 18
3
0. 06
0. 08
2
0. 04
O8
Mother company support of company‘s plans
0. 12
2
0. 06
S1
How important strategic role of HR is to company‘s management
0. 1
2
0. 05
S2
Organization‘s credit, good reputation and history
0. 09
3
0. 03
S3
Clear work plans and notifying the employers
0. 06
2
0. 03
S4
Planning manpower in terms of number of individuals
0. 06
3
0. 02
S5
Existence of enough capacity for application of manpower
0. 06
3
0. 02
S9
The health and insurance system for employers
0. 06
2
0. 03
S11
On-the-job trainings
0. 06
2
0. 03
S14
A systematic dismissal procedure for employers
0. 04
2
0. 02
human
resource
development strategies
weights
O7
O4
Other organization‘s enthusiasm for training sessions
0. 15
3
0. 05
O5
Government‘s positive attitude towards HR development
Governmental employers integrated salary system
0. 2
4
0. 05
0. 08
2
0. 04
Mother company support of company‘s plans
Not reviewing the courses and updating the chapters based on
today‘s sources
0. 24
4
0. 06
0. 1
2
0. 05
Not updating employer‘s educational profiles
Not paying attention to improvement of training activities in case
of some jobs
0. 15
3
0. 05
0. 15
3
0. 05
W6
Lack of a plan for job promotion and substitution
0. 15
3
0. 05
W7
Not investigating the process of work leaving
Not providing job opportunities at proper periods of time based
on skill and performance
0. 15
3
0. 05
0. 1
2
0. 05
0. 15
3
0. 05
O7
O8
W3
W4
W5
W8
W1
1
Lack of welfare plans in case of some jobs
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W1
2
Lack of loyalty among employers at different levels
0. 1
2
0. 05
performance
management strategies
weights
T1
Not identifying, categorizing and prioritizing the beneficiaries
0. 1
2
0. 05
T3
Lack of favorable relation with internal and external beneficiaries
0. 1
2
0. 05
T5
Lack of welfare programs in private sector
Unbelief of employers in existence of a system for delegation of
authority in private companies
Unbelief of employers in existence of staff contribution in private
companies
0. 1
2
0. 05
0. 15
3
0. 05
0. 15
3
0. 05
T8
Unbelief of employers in being valuable to private companies
0. 15
3
0. 05
T10
Unequal execution of lay-off rules within organizations
Weakness of rules for outsourcing and privatization
0. 08
2
0. 04
0. 1
2
0. 05
S1
How important strategic role of HR is to company‘s management
0. 1
2
0. 05
S3
Clear work plans and notifying the employers
0. 09
3
0. 03
S6
Helpful suitable training programs
Increase of employers‘ capabilities and performance due to
training courses
0. 08
2
0. 04
0. 09
3
0. 03
S8
Making endeavors to use educational technologies
0. 04
2
0. 02
S9
The health and insurance system for employers
0. 09
3
0. 03
S10
Formal and informal relations among employers
0. 09
3
0. 03
S11
On-the-job trainings
A complaint-resolving system
0. 09
3
0. 03
0. 04
2
0. 02
A feedback system
0. 06
3
0. 02
staff relations strategies
weights
T6
T7
T11
S7
S12
S13
T1
Not identifying, categorizing and prioritizing the beneficiaries
0. 15
3
0. 05
T2
Low job security in private sector
0. 24
3
0. 08
T3
Lack of favorable relation with internal and external beneficiaries
Lack of required experience among university graduated
individuals (knowledge, communication, etc.)
0. 15
3
0. 05
0. 21
3
0. 07
Lack of welfare programs in private sector
Unbelief of employers in existence of a system for delegation of
authority in private companies
Unbelief of employers in existence of staff contribution in private
companies
Mismatch between ever growing needs with organization‘s
facilities
0. 1
2
0. 05
0. 05
1
0. 05
0. 05
1
0. 05
0. 12
2
0. 06
T4
T5
T6
T7
T9
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T11
Weakness of rules for outsourcing and privatization
0. 05
1
0. 05
S1
How important strategic role of HR is to company‘s management
0. 1
2
0. 05
S3
Clear work plans and notifying the employers
0. 06
2
0. 03
S10
Formal and informal relations among employers
0. 12
4
0. 03
S11
On-the-job trainings
A complaint-resolving system
0. 06
2
0. 03
0. 06
3
0. 02
A feedback system
0. 06
3
0. 02
S12
S13
compensation
benefit strategies
and
weights
T2
Low job security in private sector
0. 08
1
0. 08
T5
Lack of welfare programs in private sector
Unbelief of employers in existence of a system for delegation of
authority in private companies
Unbelief of employers in existence of staff contribution in private
companies
0. 1
2
0. 05
0. 15
3
0. 05
0. 15
3
0. 05
Unbelief of employers in being valuable to private companies
Mismatch between ever growing needs with organization‘s
facilities
0. 15
3
0. 05
0. 12
2
0. 06
Unequal execution of lay-off rules within organizations
Weakness of rules for outsourcing and privatization
0. 08
2
0. 04
0. 1
2
0. 05
W1
Lack of strategic vision among some of the managers
0. 12
3
0. 04
W6
Lack of a plan for job promotion and substitution
0. 1
2
0. 05
W7
Not investigating the process of work leaving
0. 1
2
0. 05
W9
Low salary and benefits comparing other organizations
0. 15
3
0. 05
0. 08
2
0. 04
0. 05
1
0. 05
0. 1
2
0. 05
T6
T7
T8
T9
T10
T11
W1
0
W1
1
W1
3
Lack of welfare plans in case of some jobs
Lack of loyalty among employers at different levels
Not doing exit interviews for all jobs
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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staff relations strategies
compensation and benefit strategies
1.58
1.63
performance management strategies
1.7
human resource development strategies
recruitment and employment strategies
1.72
1.29
FIGURE 3: Quantitative Strategic Planning Matrix
References
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