Relationship between HR Strategies and Business Strategies - Coursework Example

Relationship between HR Strategies and Business Strategies A strategy is a way of doing something or anything which includes the formulation of a goal or an objective and a set of action plans for the fulfillment of that goal or objective. Thus the strategy has a combination of both planning and action component. The process of strategic management is performable at all the levels of the organization and is the continuous process in development and functioning of an organization. As the company expands its activities it adds new lines of business by making a challenge to face the market, competitions, and new products. For this, newer and newer strategies will have to be formulated. As and when the organization is exposed to new opportunities and threats from any of macro variables then the strategies for long term policy of the organization may have to be formulated. Thus the process of strategic management is continuous. Therefore, the basic steps of strategic management are environmental analysis; strategy formulating and planning; strategy implementation. Finally strategy evaluation and control are also continuously made along with the process of development and functioning of firm. “An HR Strategy turns the way you manage your people into a business strategy.” (Kearns, 2009). Every strategy must have specific objectives decisive to the operation. These objectives must be clearly understood. A perfect strategy makes an organization to come up with best results. Effective business does not exist in vacuum but must be related to the overall strategy of the organization. Business strategy offers the best product and best services at the very best price. The development of human resources strategy facilitates the process by considering human resources as the foremost component. “HR assumes the existence of a business strategy and adds value by linking HR practices to the business strategy and by managing change.” (Brockbank, 1999, p.337-352). Business strategy should have a great emphasis on the decisions of the organization as to where it wants to be in 15-20 years in the area of market standing, productivity, innovation, technology, physical and financial resources, profitability, managerial performance and development, employees’ performances and attitudes, social responsibility and control. HR strategy provides a strategic focus for managing the HR functions and developing HR staff talents and skills. Every strategic management is done with full support and most prompt strategies which are formulated, evaluated and implemented in the best advanced manner in order to achieve the ultimate objective or the purpose. HR strategies: HR strategies can positively influence the organization’s ability to achieve its objectives. As HR management focuses on achieving and maintaining a strong internal control, it involves the application and maintenance of the corporate strategy to all aspects of the organization. The process of developing human resource strategies gives an organization the benefit of defining human resource opportunities and barriers in achieving the business objectives which creates a framework for internal communication among personnel. The benefits of strategic management are both financial and non-financial and it helps in better understanding of identifying, prioritization and exploitation of opportunities by providing an objective view of management problems. It helps to integrate the behavior of the people into a total effort and gives encouragement to forward thinking. “Employers today are acknowledging the increasingly important role of reward programs to achieve their business goals in terms of enabling organizations to deliver the right amount of rewards, to the right people, at the right time, for the right reason.” (Gilbert & Cornish, 2008). Some of the best tips to be included in the management of human resource strategic management include specific action planning and programs. Responsibilities should be well assigned within the employees with core timings and with proper allocation of financial and staff resources. Strategy is the set of rules and procedures which is used towards achieving the goals of the company. Strategy is the direction towards the objectives of the organization. Strategy will have a long term impact to the organization. It defines the scope of functions which an organization needs to undertake for a time period and to fulfill the shareholders’ expectations. It is designed in such as way to make advantage of resources and opportunities. HR strategies are intended to support and build company’s Mission, Vision and Objectives. HR strategies involve managerial activities such as specifying objectives and policies of the organization. Once policies are framed, next step is to develop plans to achieve the objectives by allocating resources to implement the plans. It provides overall direction to the organization. Strategic objectives must be specific, measurable, achievable, and realistic and time bound. There are mainly three elements in the strategic management - strategic choice, strategic position and strategy into action. Benefits of having HR report to the CEO as a strategic partner: HR report is the summary of the Human Resource Department. Human resource concerns all the normal working of an organization. It comprises of people related to business including the components of delegation, employee competence, cost effectiveness, organizational changes, competitiveness, managing work force diversity, organizational effectiveness and global competitiveness. HR report involves complete details of employee history and other details such as performance appraisal, achievements of employees etc. “There is a strong trend for the HR function to report directly to the CEO.” (Stern et al, 2002, p.1). CEO is required to take most of the strategic decisions, and therefore, complete information of the employees is essential for making strategic decisions. When HR report is not handed over to the CEO, majority of the CEO’s decisions will be prone to develop serious internal issues within the organization. Competencies required for HR executives The success of strategic plan mainly depends on the efficiency of the HR executives. Efficient HR executives with good leadership qualities and with other desired skills, visions and risk taking ability are essential for the success of companys strategies. Successful HR executives usually will have a good understanding of the companys mission and help in directing its operation towards the ideas. Human capital which is to be acquired and developed is determined in terms of skills, knowledge, abilities, values, aptitudes, beliefs, commitments. Suitable techniques of human resource development are to be selected depending on the resource to be acquired and developed. “A comprehensive Human Resource Strategy plays a vital role in the achievement of an organizations overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organization is moving.” (A guide to strategic human resource planning: Introduction, 2008). Though the importance of HR strategies is being highlighted in most of the cases it is very sensible to understand like all other aspects as it also got limitations. The general feelings which exist in some of their minds could be that technological development has gone to the extent of machines taking over the human beings’ jobs. But the fact is like no machines can be replaced with the humans. In fact the more the technological development the greater would be the dependence upon the humans. The greater the technological development the greater skills and technical capability are required for the employees who operate. Human resource can be defined as a strategic integration of employees’ activities towards the objectives of the organization. Employees’ satisfaction level plays a crucial role in achieving organizational objectives. Factors which improve employee satisfaction level is the recognition; career growth and opportunities; participation in decision making and so on. HR strategies influence on making company strategies. HR strategy plays a crucial role in decision making process on business strategies. Business strategies are undertaken by top management of the company. HR strategies mainly focus on building strong base by stating the companys mission and planning combined efforts of employees towards the mission. Efficient leaders will have well planned strategies and clear direction, and therefore, they will be able to attain a well developed strategy. Career path for a senior HR executive: HR executive is required to support administrative functions and smooth running of the organization. It involves a lot of communication for co-ordination, integration and overall effectiveness of the organization. “It is vital for a senior HR executive to present a well thought out and clearly articulated professional preference and philosophy to the selection committee and/or executive team. These positions should demonstrate how one’s personal vision and values, as well as professional self-image and vision of the HR function, ideally aligns with the organization’s overall HR mission and strategy.” (Grimm, 2008). The HR executive has a pivotal role to play in effectively managing a business. He being in control of all the employees working in an organization naturally should be involved in all the processes right from setting the business objectives and then formulating and implementing the strategies of an organization. References A guide to strategic human resource planning: Introduction. (2008). Workinfo.com. Retrieved January 16, 2009, from http://www.workinfo.com/free/Downloads/176.htm Brockbank, Wayne. (1999). If Hr were really strategic proactive: Present and Future directions in HR’s contribution to competitive advantage. Wiley Interscience. 337-352. Retrieved January 16, 2009, from http://www3.interscience.wiley.com/journal/67500825/abstract Gilbert, Ken., & Cornish, Sally. (2008). Aligning your total rewards strategy with your business goals. Ceo Forum Group. Retrieved January 16, 2009, from http://www.ceoforum.com.au/article-detail.cfm?cid=6274 Grimm, Marc. (2008). HR career pathing: Career path for a Senior HR executive. MRC Corp: Manage Resource Consulting. Retrieved January 16, 2009, from http://www.hrsearch.com/career_path.asp Kearns, Paul. (2009). HR strategy business focused individually centered: Book description. Amazon.ca. Retrieved January 16, 2009, from http://www.amazon.ca/HR-Strategy-Business-Focused-Individually/dp/product-description/0750657685 Stern, Mitch., et al. (2002). Business service industry: The question of where hr belongs. BNET: The go to place for management. 1. Retrieved January 16, 2009, from http://findarticles.com/p/articles/mi_m0FXS/is_3_81/ai_84148632 Read More