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elshennawy
Dear All
In his famous book "Winning" Jack Welch mentioned that "..the head of the HR should be the second most important person in any organization.From the point ofview of the CEO,the director of HR should be at least equal to the CFO." page 99 and 100
a)How can i emphasis on the importance of HR when talking to the company's CEO?
b) Same goes for the topic of how to align HRM with corporate goals.
Any ideas?
Thanks
Alhussein El-Shennawy

From Egypt, Gizeh
sunayna
12

hi Alhussein El-Shennawy
u got a wonderful anme
i have never communicated with anyone frm egypt :shock:
i m fascinated with egypt and the mummy n all the stories tht i ve heard or seen
how is it livin ther, plz do share
ok..comin to ur query
i really dont know much about it
but there was a article related to HR being considered as important as the CFO
www.economictimes.com
chk it out in last months paper
frm wt i can remember,
they were given importance on the foll
1 salary was increased
2 present in board meeting
3 are consulted for strategic decisions bcoz of manpower planning
hope others answer

From India, Mumbai
leolingham2000
260

HR ALIGNMENT WITH CORPORATE OBJECTIVES / STRATEGY

Hope my understanding of your question is clear.

In most companies, HRM is part of senior management.

HRM makes contribution to the development of

-corporate mission statement

-corporate objectives

-corporate strategy.

Normally the senior management team or TOP management would

consists of

-ceo or managing director

-corporate planning manager

-finance manager

-marketing manager

-manufacturing manager

-sales manager

-supply chain manager

-HR manager

etc.

STEP 1[a]

TOP management would

-evaluate the current [ last 12 months] performance against the

objectives / target set previously, which includes return on investment,

profitability , etc and also the performance of various departments

like marketing, sales, HR, manufacturing, etc etc.

STEP 1 [b]

TOP management will also evaluate the current mission,objectives,

strategies and policies.

-----------------------------------------------

STEP 2[a ]

CEO or MD will take the summary of the evaluation of the current

performance to the board for review.

STEP 2 [ b ]

Based on the review plus the external environmental factors,

the board will make decisions on

-new mission statement

-new corporate objectives

-new corporate governance

-------------------------------------------------------------

STEP 3 [ a ]

TOP management will scan and assess the company's

external environment --political/ economic/social/ technology.

to determine the strategic factors that pose as

OPPORTUNITIES / THREATS.

STEP 3 [ b ]

TOP management will scan and assess the company's

internal environment --structure/ culture/resources etc

to determine the strategic factors that pose as

OPPORTUNITIES / THREATS.

STEP 3[ c ]

TOP MANAGEMENT will analyze the the strengths / weaknesses

of the organization and pinpoint the problems areas that needs

attention and the strengths that could be exploited.



STEP 4

Based on the above analyses, TOP management will generate,

evaluate, and select the best strategic factors.

STEP 5

TOP management will review and revise [ if necessary ] the

mission statement and corporate objectives.

STEP 6

TOP management will generate and evaluate strategy alternatives

and objectives.

STEP 7

This final corporate mission statement, objectives and strategies

becomes the foundation information for the various departments

to work out their departmental objectives/strategies/plans.

STEP 8

After working out their respective objectives/strategies/plans

and the budgets , the departmental managers send their

respective information to the TOP management for

approval.

STEP 9

On receiving the approved package from the TOP management,

the departmental managers develop the implementation plan.

STEP 10.

NOW you have

mission/objectives/strategies/plans/budget/schedules.

================================================== ====

IN case of HR, which is a department by itself,

This final corporate mission statement, objectives and strategies

becomes the foundation information for the HR department

to work out your departmental objectives/strategies/plans.

But bulk of HR activities / plans are linked/ based on the

HR NEEDS of other departments.

STEP A

Discuss with the various other departments like sales/ production/

distribution/accounting/ IT etc about their requirements

-for manpower

-recruitments

-replacements

-training

etc etc

Once you get their departmental requirements, HRM develops

-recruitment /selection plans / programs/ procedures/ priorities



-training plans / programs/ procedures/ priorities



-rewards plans / programs/ procedures/ priorities



-development plans / programs/ procedures/ priorities



-payroll plans / programs/ procedures/ priorities



- performance management plans / programs/ procedures/ priorities



-staff/organization communication plans / programs/ procedures/ priorities



etc etc

-HR POLICIES

-HR PROCEDURES

-HR PRACTICES.

-HR PLANS

ETC.

===============================================

Example of HR ALIGNING with CORPORATE OBJECTIVE.

Corporate Strategy: Expand into the global market.



Corporate Objective: Phase 1 enter the european market.

Obtain 2% of the market in the first 18 months.

-------------------------------------------------------------------------------------

Marketing Objective : Gain 2 % market share in the first 18 months.

Marketing Strategy : Develop new products .

Develop product promotions, with mutilingual

media plan.

Marketing Needs: *Key employees will need to be able to communicate

in a second language of europe.

*Product managers need orientation in european

culture.

HR contribution: *Language training.

*European culture orientation

*European economy orientation

-------------------------------------------------------------------------------------

Sales Objective : Gain Sales of $X in the first 18 months.

Sales Strategy : *Sell current products in euro market

*Sell new products in euro market.

*Determine new market segments.

*Develop a range of KEY accounts.

Sales Needs: *Key employees will need to be able to communicate

in a second language of europe.

*Sales managers/team need orientation in european

culture.

*Sales managers/team need orientation in european

economy.

*Sales team need sales skills/ approach.

*Sales team need an understanding of

euro customer buying pattern.

*New sales team recruitment.

HR contribution: *Language training.

*European culture orientation

*European economy orientation

*Euro market orientation.

*Euro selling skills

*Euro customer servicing orientation.

-------------------------------------------------------------------------------------

Now as a HR manager, you know

-what the corporate objectives/ strategies are.

-what the marketing / sales objectives / strategies are

-what the marketing /sales needs are

-what the HR contribution should be

and also what/ how your HR plans impact the

business results.

--------------------------------------------------------------------------

In this way, you can carry out for other departments in the

organization, like

-production

-procurement

-supply chain

-warehousing

-customer servicing

etc etc.

--------------------------------------------------------------------

WHEN YOU HAVE COMPLETED

-HR NEEDS

-HR INDICATORS TO MEASURE WITH

-IMPACT ON THE BUSINESS

YOU ARE READY TO DISCUSS WITH YOUR BOSS, WITH

-SURETY

-SENSITIVITY

-SENSIBILITY

AND SUCCESS.

hope this is useful to you

regards

LEO LINGHAM

From India, Mumbai
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