Why is it important for the HR strategy to be aligned with the business strategy?How to Align HR Strategy With Business Strategy

Why is it important for the HR strategy to be aligned with the business strategy?How to Align HR Strategy With Business Strategy

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• How to Link HR to the Business Strategy
• Linking HR Strategy with Business Strategy
• Linking Human Resources with Business Strategy
• Linking corporate strategy with hr strategy 
• integrating hr strategy with business strategy
• How are business strategy and hr strategy linked

What is "STRATEGY"

The word "STRATEGY" is the core part of any management which determines the direction in which the organization is going in relation to its environment and helps you work out a clear action plan based on observation and analysis. 

3 Main Things!

1. WHO ARE WE - knowing and defining (SWOT - internal and external)
2. WHERE DO WE WANT TO GO - and after answering these two questions, we derive the approach-
3. HOW CAN WE GET THERE?(Action plan laying out methods to be adopted, processes and tools to be deployed etc.)

What is Strategic HRM ? which can be aligned via step by step process

1. Business Goals of the organization
2. Understanding the product, market, brand, its SWOT analysis and
3. The clear aligned reflection of these in the overall HR strategy.

So simply put, Strategic Human Resource Management is an approach to HR management that provides a strategic framework for the organization to achieve its long -term business goals.

After all, What should be the outcome of all things in HR?

To support business goals and objectives through effective Talent Management. So by now we should realize that everything to do with Talent( Acquiring ,Developing, Managing, Retaining) is core part of Strategic HRM.

The most enlightened organizations include human resources(HR) in the development of the strategic plan, so that the human resources plan/strategy can link directly to the strategic Business plan or the overall business strategy.

As I mentioned , Talent and people Management is the core part of HR. So the areas involved in strategic HRM are Hiring, Talent Compensation, working with employees in a collaborative manner to boost retention, Improving the quality of work experience. maximizing the  mutual benefit of employment for the employer and employee.

Considering this wide scope , the strategic role of HR becomes extremely crucial since it ultimately reflects on business goals.

"What should be the end result of Strategic HRM?

To support business goals and objectives through effective Talent Management "

Role of Strategic Human Resources Management in Business

HR as a function becoming more and more dynamic and is getting refined by the day. It is becoming more and more strategic in nature and key to achieving organizational goals.

Earlier, HR was limited to being just a manpower planning function. It acted as an input to the company's annual budget and was largely a data-driven effort to manage number of employees and their cost. No longer are business so simple. With their increasing complexity and diversity of business spread over multiple locations, Strategic Talent Planning (STP) has become a focus area for Strategic HRM. STP is a process by which HR determines  and make sure that the organization is equipped with the Right Talent at the Right Time for the Right Job.

      

UNDERSTAND "Linking HR Strategy with Business Strategy" for instance, if the business strategy is to better the customer experience , the individual HR strategy may be to enhance relevant training for the executives.

Thus in summary by impacting the various facets of HR like recruitment, training & development, compensation, succession planning, etc. , strategic HRM helps an organization develop an edge over competition in terms of talent readiness and capability in the long run.   

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