Student - Hr Professional

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In the past few years, business conditions have arisen which mandate

greater competitive advantage from HR agendas and processes. To add

greater competitive advantage, HR must contribute strategic value against

criteria from customer and capital markets. Furthermore, HR can add

strategic value either reactively or proactively.

In its strategically reactive mode, HR assumes the existence of a

business strategy and adds value by linking HR practices to the business

strategy and by facilitating change management.

In its strategically proactive mode, HR creates competitive advantage

by creating value before the competition by creating cultures of

creativity and innovation, facilitating mergers and acquisitions, and linking

internal processes and structures with ongoing changes in the


Seven steps for aligning HR to business strategy

Professionally managed companies, such as Unilever, Citicorp, Hewlett

Packard, AT&T and others use this basic framework to make sure their HR

practices are fully and exactly aligned to create the organisational

capabilities required to execute strategy in the most powerful way


Step 1

Identify the organisational unit for which a human resource strategy is

being developed. This would be your SBU or business division.

Step 2

Identify and prioritise the externally driven forces and trends in your

business environment that are influencing your business unit

Step 3

In the context of the externally driven forces determined in step 2,

determine key sources of competitive advantage. Identify 3 to 5 measures

of success for each source of competitive advantage

Step 4

Identify the cultural and technical capabilities that you need to have

to win in the market place. What mindset and behaviours do we need to

have more of in the future than we have had in the past in order to

achieve our numbers to a greater extent in the future than we have in the


Identify behavioural examples for each category of organisation


Do a gap analysis

Step 5

Identify which HR practices will have the greatest influence on

creating your ideal human organisation. Ask yourself: What major HR practices

will best create an organisation with the above cultural capabilities?

Which practices will have the greatest influence? In what order and

over what time frame should the initiatives be implemented?

Align HR

Decide how the identified HR initiatives need to be created or changed

in order to create your ideal human organisation. Which HR practices

will receive attention over the next 12 to 18 months? What changes need

to occur in each HR practice so that each practice will be more

effective in creating these cultural capabilities in your people?

Step 6:

Identify action plans

What will be done? By whom? By what date?

Who else needs to be involved?

When will the progress be reviewed? By whom?

Step 7

Measure results

What are the purposes of the measurements?

What results do we want to measure?

Who should be the sources of data?

How should we take the measurements?

When and where should we take measurements?

The most difficult part in measuring HR is knowing what to measure, not

doing the measurement itself. Once we know what to measure, measurement

can occur very quickly. In a complete HR measurement system, you have

to measure what HR does, what it delivers and what it impacts. Thus one

can show the relationship between what HR does, what it delivers and

what it impacts.

hey.. good article Sreenivasan Keep it up.. can you further suggest some more articles on the subject
hi ajmal, sure i will try to get some more good artcle on ths stratey since even i am interested in HR strategy...
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