What should be the relationship between hrm and business strategy

Relationship Between HR Strategies & Business | avesisland.info

what should be the relationship between hrm and business strategy

In this chapter, we will discuss how important it is to ensure that the HR functions are properly Let us look into HR as part of a complete business strategy. The best way to cultivate a relationship between HR and C-level executives is by. HR Strategy Is Business Strategy. In an ideal world, there is not a line drawn in the sand between human resources strategy and business strategy. A successful . HRM effectiveness could directly increase labor productivity while strategy fit strengthened the relationship between HRM effectiveness and labor productivity.

Therefore, the major challenge for organisations is to develop a collaborative working environment which entails meaningful challenges for employees and seeks to enhance their dedication towards organisational goals and objectives.

what should be the relationship between hrm and business strategy

Lack of Clear Management-Employee Communication. Research provides evidence that organisations with inferior management-employee communication, adversely impacts employee motivation and creates difficulties in implementing the desired business strategy Huselid, In most cases, management is unable to communicate the strategic vision, mission and objectives, to existing employees, that hinders the alignment of business and HR strategies. Disparities in management-employee communication arise due to the inappropriate nature of mechanisms that are implemented to support such communications Kochan et al.

Because the type and methods of communicating with employees have changed in the previous years, there are considerable challenges organisations confront for developing valuable HR practices that not only sustain other business functions, but most significantly, is aligned with the underlying strategic objectives.

It is inferred that most organisations confront problems when the top management does not take responsibility for communicating strategic objectives to employees; if at all vision, mission and objectives of the business strategy are communicated, problems arise because management fails to take relevant steps for addressing the most crucial human resource concerns Butler, In this context, lack of communication clarity is a major factor contributing towards misinterpretation of strategic information due to which employees do not effectively engage with the business strategy.

Consequently, inferior communication processes leads to a distortion in performance of internal employee related variables which are unable to align themselves with the external organisational factors.

The Relationship of HR With Business Strategy | avesisland.info

Therefore, inferior information communication between the management and employees hampers the HRM function which deteriorates the level of employee involvement and contributions in achieving strategic targets. Inappropriate workforce management policies. Based upon Fomburnfor internal and external factors to be aligned successfully, the managerial approach towards employees ought to be positive. In an organisational context, various market and cost factors manipulate the compatibility of different personnel policies adopted.

Based upon Schuler and Jacksonproduct life cycle stages must be scrutinised for implementing appropriate HR policies so that the business and HR strategies are effectively aligned. It is therefore, inferred that organisations confront problems when they fail to manage their workforce in conjunction with the product life cycle stages.

what should be the relationship between hrm and business strategy

For instance, when organisations are unable to attract talented staff for providing creative ideas while in the growth phase, it deteriorates employee participation and hampers the strategic process within the organisation. In a similar context, some organisations do not incorporate human resource issues during the strategic decision making process which translates to inconsistent workforce performance and practices that do not correlate with the intended business strategy. Because organisations tend to give lower attention to personnel policies pertaining to reward and incentive systems, employee development, promotion appraisal, the internal and external organisational factors do not coincide.

Based upon Fomburn et alvery few firms actually adopt a workforce planning approach. For instance, with poor reward and incentive systems in place, employees tend to focus on short term business objectives and compromise long term goals which hinder the alignment of Business and HR strategic objectives.

Relationship Between HR Strategies & Business

Similarly, inadequate measures adopted for employee development and appraisals results in unsatisfied workforce which is more difficult to manage. Lack of a Leadership culture and middle management.

Based upon Sleeth et al. Drawing upon Katzenbachwhen leaders fail to connect with the hearts and minds of employees, the outcome is poor teamwork due to increasing dissatisfaction among the workforce.

Human Resource Strategic Planning

Consequently the disruptive leadership behaviour can lead towards mismanagement of human resources and the strategy formulated will be difficult to align with the HR function Beer and Eisenstat, Lack of compatible Skills and Development.

Organisations recruiting employees with incompatible level of skills and talent, is perceived as another major obstacle in aligning the business and HR strategic objective Kerr and Jackofsky, In this context, inappropriate selection, recruitment and training procedures leads towards poor human resource development and reduces the extent of their valuable contributions towards the business goals.

Human Resource Management HR and Business Strategy

Developing human capital is important to the longevity and success of a business. In the past, personnel administration was merely the processing of payroll, benefits and applications. Human resources strategy today involves executive leadership teams conferring with human resources experts to develop complementary goals for human resources and the overall business.

HR Strategy and Business Productivity The recruitment and selection process of your human resources department is paramount in building a productive workforce. Developing a human resource strategy for recruiting and selecting the best employees affects your organization's bottom line. Maintaining a workforce where employees enjoy high levels of job satisfaction and job security translates into a workforce that helps achieve business goals.

According to HR experts, human capital, or human resources, is your most valuable resource. Example Till now, we are very clear about integration of HR strategy with business strategy, business productivity, their interdependencies and the way their relationship influences the organization as a whole.

what should be the relationship between hrm and business strategy

Let us now take an example to understand the concepts better. Company X functions from the northeast corner of India. Its functions are limited to the local area only and they have projected their income and gains on that basis. Due to the prevailing restrictions in the area, the Company has to hire its staff from the local population, who are not professionally qualified.

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However, the Company ropes in the services of a professionally qualified experienced CEO, who is a techno-commercial man and has the duty to manage the organization centrally. The CEO interacts with almost all the staff and arranges for on the job training for them. As the employees are not professionally qualified, there is little fear that they will change the job after getting trained.

what should be the relationship between hrm and business strategy