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.
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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.
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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.
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In this way, you can carry out for other departments in the
organization, like
-production
-procurement
-supply chain
-warehousing
-customer servicing
etc etc.
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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