Why to Link Hr Strategy to Business Strategy

Topics: Strategic planning, Management, Human resource management Pages: 3 (551 words) Published: January 25, 2011

Most organizations view Human Resources (HR) department as an administrative function and ignore the need and opportunity to align it with its strategic plans. The irony with HR being left out of strategy planning is that by its nature, HR is about people, which is the core of an organization and its strategic plan.

It is hard to measure HR success and thus it is considered “soft” and not important in the strategy development.

In contrast to the HR administrative function, strategic HR practices are more contemporary concepts. A definition of strategic HR management is the design and implementation of a set of internally consistent practices that ensure an organization’s human capital contributes to the achievement of its business objectives.

What is Business Strategy?

Strategic Planning is the process of ensuring that today’s activities help to achieve tomorrow’s goals.

It is an organization’s process of defining its strategy or direction and making decisions on allocating its resources to pursue this strategy, including its capital and people.

What is Human Resources Strategic Planning?

It defines how the organizations goals will be achieved through people, by means of strategies and integrated HR policies & practices.

Having the right people in the right place at the right time, suitably rewarded and engaged, to meet or exceed the standards of the job and the needs of the customer.

HR Value Proposition

People Management Solutions tailored to fit the needs of your organization

Why to align HR strategy with Business Strategy

Contribution: People are our most important asset. To get right people at right job is more important than developing a strategy;

Competition: We do business in a global world and world of business is changing radically & fast. The most important corporate resource is talent/people. Allocating resources (e.g. machinery, plants, equipments etc.) without human capital is useless as those...
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