Objectives: Explain The Importance Of A Strategy-Oriented HR

Objectivesexplain The Importance Of A Strategy Oriented HR Systemoutli

Objectivesexplain The Importance Of A Strategy Oriented HR Systemoutli

Objectives Explain the importance of a strategy-oriented HR system Outline the steps in the strategic management process Explain the steps in the HR Scorecard approach to creating HR systems Assignment Overview This assignment identifies the relationship between an organization s strategic plan and the HR strategic plan. Deliverables A two- to three-page (500- to 750-word) paper, double-spaced with 12 point Arial font Step 1 Read through the following scenario . Consider a medium-sized IT organization that faces intense competition. Two of the organization s goals derived from its strategic plan are as follows: To increase the sales of the company software products To hire 50 more workers during the calendar year Step 2 Examine the two strategic goals . Determine if the goals are directly or indirectly linked to HR functions. Create a draft HR strategic plan using the steps outlined in the text and the organization s strategic goals. Include the HR strategy in the plan. Include a description of how creating the HR strategic plan enables the organization to achieve its mission and strategic goals.

Paper For Above instruction

The effective alignment of human resource (HR) strategies with organizational strategic goals is essential for achieving competitive advantage and long-term success. A strategy-oriented HR system integrates HR practices with the overall mission and objectives of the organization. This paper explores the importance of such systems, outlines the strategic management process, discusses the HR Scorecard approach, evaluates the given scenario, and presents a draft HR strategic plan aligned with the company's goals.

The Importance of a Strategy-Oriented HR System

A strategy-oriented HR system serves as a foundational element that enables organizations to adapt to competitive environments and achieve their strategic priorities. Such systems align HR processes—including recruitment, training, performance management, and organizational development—with the company's long-term objectives. By doing so, they foster a workforce that is motivated, skilled, and capable of executing organizational strategies effectively.

One key benefit is the enhancement of organizational agility. When HR policies are aligned with strategic goals, organizations can swiftly adapt to market changes, such as technological advancements or shifts in customer preferences. Furthermore, a strategic HR approach ensures better human capital management, reducing turnover and increasing employee engagement, which are critical in maintaining competitive advantage (Wright & McMahan, 2011).

Additionally, a well-developed HR strategy provides clear metrics for evaluating HR effectiveness, facilitates resource allocation, and helps in the development of leadership talent. Overall, strategy-oriented HR systems serve as catalysts for organizational performance by ensuring that human resources are effectively utilized to meet strategic objectives.

Steps in the Strategic Management Process

The strategic management process involves a series of deliberate steps to define, implement, and evaluate organizational strategies. These typically include environmental scanning, strategy formulation, strategy implementation, and strategic evaluation (David, 2017).

  • Environmental Scanning: This involves analyzing internal and external factors affecting the organization, such as competitive environment, market trends, and internal capabilities.
  • Strategy Formulation: Based on the insights from environmental scanning, organizations develop strategic goals and determine how to allocate resources to achieve them.
  • Strategy Implementation: This step involves putting strategies into action through organizational structures, processes, and HR practices.
  • Strategic Evaluation: Continuous assessment of the strategy’s effectiveness helps in making necessary adjustments to stay aligned with organizational goals.

The HR Scorecard Approach

The HR Scorecard is a strategic HR management tool that links HR activities to organizational performance metrics. Developed by Becker and Huselid (2006), it measures HR’s contribution across four perspectives: learning and growth, internal processes, customer, and financial outcomes.

  • Learning and Growth: Focuses on developing employee skills, leadership, and organizational culture.
  • Internal Processes: Addresses HR operational efficiency and the quality of HR processes.
  • Customer: Measures employee and customer satisfaction levels.
  • Financial Outcomes: Assesses the financial impact of HR strategies, such as cost reductions and revenue increases.

Using the HR Scorecard helps organizations make data-driven decisions, align HR initiatives with business goals, and demonstrate HR’s value contribution.

Application to the Scenario

Considering the medium-sized IT organization, the strategic goals are to increase software sales and hire 50 more workers within the year. Analyzing these goals reveals that they are primarily linked to HR functions—recruitment, talent management, and sales training—thus directly impacting HR strategies (Jorff & Ulrich, 2012).

To develop a strategic HR plan, the organization should focus on aligning recruitment efforts with the goal of hiring 50 additional employees. This involves crafting targeted recruitment campaigns, improving employer branding, and streamlining selection processes to attract suitable candidates efficiently.

Simultaneously, HR strategies should support sales growth by enhancing employee skillsets. Implementing ongoing sales training, performance incentives, and leadership development programs can bolster sales performance.

Integrating the HR Scorecard approach, the organization can track HR initiatives related to hiring and skill development, measure their impact on sales, and adjust strategies accordingly. This alignment ensures that HR activities directly contribute to the organization’s mission of growth and competitiveness (Ulrich et al., 2012).

Draft HR Strategic Plan

The HR strategic plan begins with defining clear objectives: increase hiring capacity by 50 employees and enhance sales team performance. HR initiatives include targeted recruitment campaigns, leveraging social media, and engaging staffing agencies to meet recruitment targets. Simultaneously, HR will implement comprehensive sales training programs, incentive schemes, and leadership development activities to support sales growth.

Furthermore, HR will utilize performance metrics derived from the HR Scorecard to monitor progress. Regular reviews of hiring timelines, employee engagement surveys, and sales performance data will enable timely adjustments.

Linking the HR strategy to organizational goals creates a workforce aligned with growth objectives, fosters a culture of continuous improvement, and ensures human resources are contributing effectively toward competitive success. This integrated approach emphasizes that strategic HR planning is vital to realizing the organization’s mission and achieving sustained operational excellence.

Conclusion

In conclusion, a strategy-oriented HR system aligns human resource practices with organizational objectives, making HR a strategic partner. The strategic management process provides a systematic framework, while tools like the HR Scorecard enable organizations to measure and optimize HR contributions. For the IT organization in the scenario, developing an HR strategic plan that supports recruitment and sales goals ensures that the workforce is capable and motivated to achieve the company’s mission, ultimately creating a competitive advantage in a fiercely contested marketplace.

References

  • Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: Where do we go from here? Journal of Management, 32(6), 898-925.
  • David, F. R. (2017). Strategic Management: Concepts and Cases. Pearson.
  • Jorff, B., & Ulrich, D. (2012). HR transformation: Building human resources from the outside in. Harvard Business Review Press.
  • Ulrich, D., Brockbank, W., Johnson, D., Sandholtz, K., & Younger, J. (2012). HR competencies: A review and research agenda. Human Resource Management, 51(3), 375-392.
  • Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: putting 'human' back into strategic human resource management. Human Resource Management Journal, 21(2), 93-104.

Related Assignments