Alignment of Hr Practices with Business Strategy

Topics: Human resource management, Management, Strategic management Pages: 22 (5526 words) Published: October 11, 2010

Table of Contents


1. Introduction 3

2. Assignment Question 1 4 – 8

3. Assignment Question 2 9 – 13

4. Assignment Question 3 14 – 18

5. Assignment Question 4 19 – 23

6. References 24

7. Bibliography 25



This Assignment reveals how Nestle is able to integrate and align it’s HRM practices with the overall business strategy, able to manage the responsibility of identifying, attracting, selecting and moulding employees and provides an evaluation of their recruitment processes and policies .It further discusses the strategic link between Nestles performance management system and its development initiatives and examines Nestles approach to employee compensation and unique aspects of the benefits offered.

Gbadosmosi (2003) sights HR arena which influences employee’s performance to maximize productivity in an organisation as a positive grounds for organisational commitment. “Committed employee behaviour is at the heart of HRM and is a central feature that distinguishes HRM from traditional personnel management” (Gbadosmosi, 2003:274).

Question 1

The key pillars of Nestles strategy include being recognised as a preferred corporate citizen, preferred employer, and preferred supplier of preferred product.

Based on this strategy of being the organisations of choice, analyse how Nestle is able to integrate and align their HRM practices with the overall business strategy.

Answer to Question 1

Preferred corporate citizen is an organisation that has a legal right to exist in a country and is appreciated by the people in the country. For example there are many organisations in South Africa, but Nestle is one of it that is being preferred by many. That makes it a preferred corporate citizen. From Oxford Advanced Learner’s Dictionary (International Student’s Edition) defined Employer as a person or company that pays people to work for them. Preferred employer can be viewed as an organisation that pays people to work for it and that it’s conditions and treatments glue the people to the company and attract others to its doors. Preferred supplier can be construed as an organisation whose distributions are always wanted and needed by the stake holders. Nestle business strategy is that of becoming a high performance organisation with an increased profitability, increased market share and increased overall growth.

Analysis of Nestle’s HRM practices with the overall business strategy.

“HRM practices include analysing and designing work, determine human resource needs (HR planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), rewarding employees (compensation), evaluating their performance (performance management) and creating a positive work environment (employee relations).”(Noe,R.A., Hollenbeck, J.R., and Wright, P.M., 2008: 4).Business strategy “is the set of strategic alternatives that an organisation chooses from in order to compete most effectively in a particular industry or market.”(Nel et al., 2008:560).

Integrative Linkage

Integrative linkage is of the levels of integration where by the business management team includes the HRM team in the formulation and implementation of business strategy. (Noe et al., 2008:74). Marrying HRM with business strategy directs Nestle as an organisation into a beautiful score, such that the complex human activities are effectively and efficiently managed.

Integration of Business Strategy and HRM Practices : Formulation Phase

The relationship between business strategy and HRM appears to be integrative, where HRM is fused in strategic meetings.HRM functions such as work force as resource for competitive advantage, outsourcing from...

References: • Strategic choice which is organisation’s chosen strategy and it indicates how the mission and the goals can be achieved. (Noe et al., 2008: 74).
3. Seeking efficiency through worker participation: This notion is that of employees are partners rather than mere workers. (Noe et al., 2008 : )
• Concentration Strategies (Increasing market share, reducing costs or creating and maintaining a market niche for products and services)(Noe et al., 2008 :86).Which is achieved by :
For strategy implementation then, there appears to be an integrative linkage between HRM practices and business strategy. (Noe et al., 2008:74).
Attraction is “a force that pulls things towards each other”
Recruitment is “...the practice or activity carried on by an organisation with the primary purpose of identifying and attracting potential employees.”(Noe et al., 2008: 202).
Selection “involves choosing the best applicant to fill a position” (Grobler, P., Warnich, S., Carrell, M.R., Elbert, N.F. and Hartfield, R.D., 2006: 182).
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