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CASE STUDY:Why should HR be involved in the business strategy formulation?Give HR its Due - Strategic Importance



Why should HR be involved in the business strategy formulation? Give HR it's Due - Strategic Importance

Why is it important to link business strategy to human resource planning?
Why is it important that human resource management be a strategic priority in an organization?
What all my viewers need to work on after reading through this entire case study

  1. Why was the HR Dept not given strategic importance at Vinayak Manufacturers?
  2. What did Alex share with the senior team
  3. Challenges will Alex face establishing the strategic importance of the Human resources function?
  4. Why should HR be involved in the business strategy formulation at Vinayak Manufacturers?


Alex, the new Human Resources Head at Vinayak manufacturers was not happy with the company was managing its employees and the way the Human Resources Department was viewed by the management. He felt that in the era of Globalization, an organisation should change its way of functioning. The HR Department was involved only in day to day administrative activities. The management never involved the HR Head in the business strategy meetings.

Alex was aware that in most of the good companies including his previous organisation, HR was considered as key department to develop and retain talent. He observed that Vinayak Manufacturers was far behind in involving the HR Department in key strategic plans and decisions. He wanted to interact with & impress upon the management about the Important role of the HR department must play in setting the future direction for the organisation, improving employee performance, defining skill sets needed etc.

Finally, soon he got the opportunity to meet the senior management as he had been called to the head office to discuss the cost and administrative aspects of recruiting staff in the Engineering & Maintenance department(E&M). Alex decided to grab the opportunity and make the maximum use of this meting. He requested the senior team for permission to present an important issue which would benefit the company in the long run. In the presentation, he highlighted the high turnover in the E&M dept. and other important departments at Vinayak manufacturers. He was upfront and conveyed that Senior Managers deployed a command and control style of management. This was an old-style and requested this senior team to provide autonomy and freedom to the managers of all departments which would make the manager's work interesting and challenging. He mentioned that standardization, uniformity and compliance would not work in the current era. Senior managers needed to be more flexible and involve members of the department in planning & delivery of enhanced output. He also conveyed the key role of HR in strategic decisions of the business. He requested the management to look into his viewpoints and consider them favourably. After his presentation, he discussed the main agenda for which he was called with respect to the hiring in the E&M dept and thanked them for listening to his views and experience candidly.

Though the management thinking was conventional since they were all old-timers in the organisation, they were open enough to consider Alex's viewpoints. After a week's time, he received a call from senior team member to attend the executive committee meeting and provide the detailed presentation on the strategic role of Human resources and the steps to integrate HR function in the strategic planning process of the organisation.  

Please share your views Why should HR be involved in the business strategy formulation? Also, find out suitable answers to the above-mentioned questions?


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