How to Align Hr with Business Strategy

October 21, 2009

How to Align HR with Business Strategy

Introduction

The alignment of human resource and business strategy is the direction an organization needs to take for survival or enhancement. It guides an organization into the future or in short it is the future. Strategy is the direction and scope of an organization over the long-term. It achieves advantage for the organization through its configuration of resources within a challenging environment. The advantage will meet the needs of markets and to fulfill stakeholder expectations. Business strategy pertains to an organization's various business units, their markets, customers, competitors, environment, and thus formulation of planning and long-term decision making therein. This paper will demonstrate how State Farm’s HR and business works together to strategize, the responsibilities of potential jobs for the company, preferential job positions, strategies to improve in the job market, and how to improve diversity.

HR Strategy Alignment

If HR managers learn to speak to upper management in terms of its strategic style, they will be heard and respected in their organizations. For HR to get respect, it must understand the business strategy of its organization. Talking to management about best practices in HR can fall on deaf ears, but providing management with policies and practices that align with management's strategic style, will not only get the job done, it will earn management's respect. Organizationsare likely to have human resource practices that fit with their competitive business strategies. Organizations that effectively recruit, select, train, and compensate their employees develop an advantage that I had foo the organizations to copy.

HR's Positions and Responsibilities

The number one concern of management is getting the right people--an HR function. Nonetheless, it is critical for HR to understand the business strategy and support it with appropriate policies and practices....