Refining Your Business Strategy through Strategic HRM

Gone are the days when an organization’s HR department’s role was limited only to new hiring, payroll processing or exit formalities. Today the responsibilities on HR have expanded beyond these limitations. The HR departments these days have become an integral part of Business Strategy meetings and in HR dominated organizations, HRM drives the business strategies get employee productivity married to achieving organization goals.

In this course, one of the challenges for HR leaders is convincing executive leadership groups that human capital is one of the most essential resources in which the company can invest. This return on investment is an important part of the argument for involving HR as part of an overall business strategy. Let’s see which gaps in the operationality can HRM fulfill in today’s dynamic work cultures.

• HR Strategy Is Business Strategy: In this global market, there is not a line drawn in the sand between human resources strategy and business strategy. A successful business- person realizes the strong link between the two. Developing human capital is essential to the longevity and success of a business. In the past, personnel administration was merely the proceeding of payroll, profits, and applications. HR strategy nowadays involves executive leadership teams linking with human resources experts to develop complementary aims for human resources and the whole business.

• Developing Strategies and Solutions for the Management Level: Management level development is also an important component of this process. Organizational development, employee selection, and recruitment and total manpower planning are key elements of management training. When problems grow, the HR department and the business-management group must work together to find solutions that keep employees satisfied and keep the business on track to meet its financial and strategic goals.

• Ensuring Business Productivity: The recruitment and selection process of the company's human resources department is paramount in building a productive workforce. Developing a human resource strategy for recruiting and selecting the best employees affects their organization's bottom line. Maintaining a workforce where employees are happy and enjoy high levels of job satisfaction and job security translates into a workforce that assists gain business perspectives. According to HR experts, human capital, or human resources, are their most valuable resource.

• Communication among Executive Leadership: The real test of connectivity between human resources and overall business strategy is the quality of the communication between human resources executives and other company executives. Many times, human resources leaders who are denied access to the boardroom complain that companies don't appreciate the value of human capital. The way to regain the relationship between HR and C-level executives is by demonstrating the return on investment in human resources actions.

• Trends impact on HR and Business Strategy: The big thing about technology in HR and technology in Business is that HR technologies have now become the integrated engine for advancing the broader needs of the business. The coordination between the two can help in far more than just fundamental transactions and can also advance the HR and business agenda of the future. Human resources information systems are integral in the development of performance management, and selection.

Several elements impact the relationship between human resources and business strategy. Executive leadership requires first to understand the profits of aligning HR aims with overall business goals.

Open-thinking concepts may desire to be approached carefully to ignore skepticism among old-school executives who still take human resources as merely personnel administration. It is necessary to align the team in line with the goals and thus it is necessary to be adhere to certain policies for effective hiring. Building the relationship may also require the assistance of an HR consultant to map the strategy for effecting change in an organization.

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