Aligning Human Resource (HR)

Strategies To The Business
Business Managers Need Knowledge On HR, HR Specialists Need To Know The Business

When both work together to define and implement HR policies and practices, they will be able to support the financial success of the organization.

ESSENTIAL ASPECTS OF A HR STRATEGY

The Society for Human Resources Management has highlighted several essential aspects of HR for business and HR managers to work on to develop a workforce that will support the organization’s strategic objectives:

Recruitment and Selection - HR can take the lead in adjusting the recruiting and selection processes and ensuring that the immediate and longer term needs are met while the managers’ involvement and input in the recruitment and selection process will help to ensure the hiring of suitable people.

Employment Law - It is important for the organization to comply with various acts and legal regulations related to employment so as to reduce the organization’s exposure to expensive litigation and judgments in the industrial court. This will require close cooperation and communication between the HR specialists and line managers particularly if the organization has chosen to take a proactive approach.

Compensation and Benefits - The organization will need to develop a compensation and benefit plan that achieves a delicate balance. HR, with input from the managers must develop compensation strategies that balance financial resources with employee expectations.

Employee Development - Employees with the right skills and knowledge are more productive. Training and development contribute to employees’ readiness to address the new technology and customer standards. Line managers, who have the closest understanding of the product requirements, can partner with the HR specialists, who have understanding of developmental strategies, to build a development and succession plan to meet long-term workforce needs.

Performance Management - Clear performance goals coupled with timely coaching and development opportunities are the main ingredients of an effective performance management process. While HR manages the implementation of the Performance Management System, the line managers have the most opportunities to manage their team members’ performance on a day-to-day basis.

HR Strategies Aligned To Business Strategies

HR strategies that support business strategies are often derived from a clear understanding of the business environment, the core business processes that lead to the company’s service or product offering to customers and key people/ competencies that are needed.

Below is an example of two companies in the same industry adopting different HR strategies because of the way they run their business.

Both Gap and Nordstrom are retail companies that sell clothing but with different business strategies. NORDSTROM focuses on the high-end market and seeks to establish long-term relationships through superior customer service. GAP on the other hand, focuses on the broader consumer market with more of a self-service approach than Nordstrom.

The difference in their HR strategy is seen in the way they recruit, hire, train, evaluate and reward sales associates.

If you are a HR specialist, you will find that the HR department can no longer function solely as administrative support. If you are a manager, you are probably discovering that being involved in HR matters will increase your effectiveness in managing the business. When managers and HR specialists work together to define and adjust workforce strategies, there is a clearer understanding of the business (the environment, the core business processes and key people/ competencies). This will result in a better alignment of HR strategies to the business.

Sources:

‘Aligning Business and HR Strategies For a Changing Economy’ - an article by Boise State Center for Professional Development, Boise State University
Human Resource Strategy: Adapting to the age of globalization by Patrick M. Wright, Ph.D – SHRM Foundation’s Effective Practice Guidelines Series