HR STRATERGIES VS BUISNESS STRATERGIES

 


What are HRM strategies?

Strategic HRM, or 'people strategy', is about creating a coherent framework for employees to be hired, managed and developed to support an organisation's long-term goals. It helps ensure that the various aspects of people management work together to drive the behavior and climate to meet performance targets. (CIPD, 2024)


What is meant by business strategy?

Business strategy is the strategic initiatives a company pursues to create value for the organization and its stakeholders and gain a competitive advantage in the market. This strategy is crucial to a company's success and is needed before any goods or services are produced or delivered. (SCHOOL, n.d.)

 

The Role of Human Resources in Strategic Planning

HR is often viewed as a day-to-day administrative business unit responsible for managing talent acquisition efforts, employee benefits, performance management, training and development, compensation, and more. Given the rapidly changing nature of business, HR can no longer operate in a silo. Technology is changing entire industries at a fantastic speed and altering labor markets in a way that has a real impact on people.

With this change comes opportunity, and it requires leveraging human resources as a long-term strategic partner in business. HR can communicate business goals to personnel and help them thrive amid subsequent organizational changes. Using HR to coordinate strategic initiatives directly improves a business’s ability to remain competitive.

Other benefits of aligning HR with the business strategy at large include:

  • Improving communication between leaders and the rest of the business
  • Helping maintain employee and business focus on strategic goals
  • Augmenting productivity
  • Promoting employee engagement and retention (360, n.d.)

 


How to Align HR Strategy with Business Strategy

Human Resources can no longer be viewed as just a service-oriented department but rather an essential partner in business decision-making. Whether defining business goals and forming strategic plans starts with the executive team, the HR team, or another department, HR will play an essential role in achieving success.

Dramatic changes to the workplace are already underway, from increasing remote work to rising healthcare costs. Executing a strategic plan requires understanding these challenges. Knowing the long-term business objectives allows the HR department to navigate these challenges in a way that contributes to the business.

To successfully align their efforts with business strategy, HR experts must complete the following:

  • Understand the business strategy and how it impacts other departments
  • Evaluate external and internal workforce conditions
  • Plan and implement the HR strategy that includes key performance indicators (KPIs)
  • Automate applicable tasks
  • Measure and evaluate results



5 Steps to Align HR with Business Strategy (360, n.d.)

 

 Benefits of aligning HR strategy with business strategy?

Aligning HR with the business strategy is essential for unlocking productivity, sustaining growth, achieving corporate objectives, and remaining competitive. Today's HR function is more than just administrative cost-centers. It is a crucial partner that keeps the entire business working towards the same goals.




References

360, E. (n.d.). https://educate360.com/. Retrieved from https://educate360.com/: https://educate360.com/blog/align-human-resources-hr-with-business-strategy/

CIPD. (2024). Chartered Institute of Personnel and Development . Retrieved from https://www.cipd.org: https://www.cipd.org/en/knowledge/factsheets/strategic-hrm-factsheet/

SCHOOL, H. B. (n.d.). ONLINE.HBS.EDU. Retrieved from https://online.hbs.edu: https://online.hbs.edu/blog/post/what-is-business-strategy

 TUBE, Y. (n.d.). www.youtube.com/watch?v=mXLJbQARPUs. Retrieved from www.youtube.com/watch?v=mXLJbQARPUs: https://www.youtube.com/watch?v=mXLJbQARPUs

 

 

 

Comments

  1. Kawya CabralApril 13, 2024 at 2:35 AM

    Strategic HRM, as highlighted here, is all about aligning people management with long-term organizational goals. It's about creating a framework that not only hires and manages employees but also develops them to drive performance and meet targets.

    ReplyDelete

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