Align Human Resource Management Strategy to Organizational Strategies
The preparation of Human Resource Management strategy is accepted as an important part of human resource management for sometime now.
Aims of Human Resource Management Strategy
In addition to what is written elsewhere in this website, HRM strategy aims to:
- Ensure that business planning recognizes that at the end of the day, people are the source of value;
- Ensure that those conducting strategic planning understand that their decisions have implications on HR;
- Match the objectives of the HR function to corporate business objectives;
- Ensure that corporate culture and processes enable people to perform their jobs better;
- Align the organization's competency needs with the kind of people who can satisfy those needs;
- Ensure organizational resources contribute to the development of people's competencies;
- Determine performance requirements to achieve the organization's strategic objectives and how people can satisfy those requirements;
- Determine levels of employee commitment and the ways for improving them.
Designing Human Resource Management Strategy
When designing strategies, ask the questions such as:
- What are my organization's HR objectives?
- How can I integrate these objectives to the organization's business objectives?
One way of making ensuring that the integration of the two types of objectives is done properly is by finding out what line managers see as the main business issues.
When these issues are addressed, HRM can become strategic business partner.
However, we need to take note of research results showing that policies and practices are not always aligned to strategy.
To ensure that alignment is done, we need to:
- Establish organization's mission and key objectives.
Thereafter, establish the HR mission and objectives aligned to those of the organization.
- Analyze the environment under which the organization carries out its activities.
Do the same with HR using SWOT analysis.
- Analyze and select your organization's business strategies.
Determine accordingly the HR strategies to support these corporate strategies.
- Implement the organizational and HR strategies.
- Monitor and evaluate performance
Linking HR Strategies to Corporate Strategies
The following examples can provide insights how to carry out the linkage.
- Where the organizational objective is to control costs, the HR objectives include reducing headcount, improving productivity and reducing or controlling absenteeism.
- If the objective is improved customer service, the HR objectives will include adopting effective recruitment and selection method, implementing strategic training and development, and improving employee motivation.
- Organizational effectiveness will require HR objectives such as good organizational structure design, effective job design, and good employee relations.
Evaluating Effectiveness of Human Resource Strategy
To find out the effectiveness of your HR strategy, you need to evaluate the following:
- Commitment of people in the implementation of the strategy;
- Competencies of employees;
- Congruence of objectives, management and employees, and so on;
- Adaptability of people to required changes;
- Performance by people and the organization;
- Job satisfaction;
- Employee motivation;
- Trust of employee on management leadership.
Strategy formulation plays a crucial role in planning. This is very true in the case of preparing your organization's Human Resource management strategy.
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