I have a question from all of you, specially senior people.
In your organisation, does HR play a role in designing corporate startegies? :shock:
Do senior management involve HR people to devlop these strategies?? :?
This is what I mean by Corporte strategies:
The essence of corporate strategy
Corporate strategies give a sense of purpose for the organisation.The purpose has a broader concept. It included the benefit of shareholders, employees and customers. Ansoff and Drucker refers to this aspect of strategy as “mapping out the future direction that needs to be adopted against the resources possessed by the organisation.”
Purpose alone is, however, not the strategy. Plans and actions need to be developed to activate the purpose. Many companies have also evolved a management style to suit their purpose.
" corporate strategy can be defined as the objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is to be."– Andrews.K in The concept of corporate strategy. Going by the definition, every company needs to manage its strategies in three areas.
# The organisation's internal resources.
# The external environment.
# The organisations ability to add value to what it does.
It is a linking process between the internal resources and external customers, suppliers, competitors and the economic and social environment. The core of any corporate strategy is the basic SWOT analysis. It matches the internal strengths to avail external opportunities and fight threats, rectifies internal weaknesses, so that an organisation can ward off all external threat.
The organisation relates with the external environment and evolves strategies to control and plan resources. So that the organisation can avail maximum benefit from the external environment. Similarly it has to evolve strategies to control the external environment. It has to develop strategies continuously for value addition to the company. All this encompasses corporate strategies.
Hope to receive your participation in the discussion.
Cheers
Archna
From India, Delhi
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115In your organisation, does HR play a role in designing corporate startegies? :shock:
Do senior management involve HR people to devlop these strategies?? :?
This is what I mean by Corporte strategies:
The essence of corporate strategy
Corporate strategies give a sense of purpose for the organisation.The purpose has a broader concept. It included the benefit of shareholders, employees and customers. Ansoff and Drucker refers to this aspect of strategy as “mapping out the future direction that needs to be adopted against the resources possessed by the organisation.”
Purpose alone is, however, not the strategy. Plans and actions need to be developed to activate the purpose. Many companies have also evolved a management style to suit their purpose.
" corporate strategy can be defined as the objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is to be."– Andrews.K in The concept of corporate strategy. Going by the definition, every company needs to manage its strategies in three areas.
# The organisation's internal resources.
# The external environment.
# The organisations ability to add value to what it does.
It is a linking process between the internal resources and external customers, suppliers, competitors and the economic and social environment. The core of any corporate strategy is the basic SWOT analysis. It matches the internal strengths to avail external opportunities and fight threats, rectifies internal weaknesses, so that an organisation can ward off all external threat.
The organisation relates with the external environment and evolves strategies to control and plan resources. So that the organisation can avail maximum benefit from the external environment. Similarly it has to evolve strategies to control the external environment. It has to develop strategies continuously for value addition to the company. All this encompasses corporate strategies.
Hope to receive your participation in the discussion.
Cheers
Archna
From India, Delhi
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Archana,
You have raised a million dolor question on the participation of HR people in business strategy. I was in Textile/ Garment business where I was actually part of core team. Core team had reposed trust in me for not only facilitating such initiative in the company but also accepted me as a steering person on given occasions.
In Aditya Birla Group, the financial concept had been very popular in the name of PARTA. I had been an active part of such group meetings where the machine capacities, volumes, revenues etc. are compared with the trend analysis of three to five years. The futuristic targets are discussed in thread bare manner and also benchmarked across the group. This also includes the vendor rating, prices etc. and very significantly the manpower ratios per MT, Cost, Sales Revenues and benchmarked. Skill level is also major part of such meetings.
At unit level, our core team use to decide the annual business targets with periodic reviews. Vulnerabilities, and environmental issues – internal or external also use to be part of process. Gradually I became part of corporate team and use to monitor these ventures and support the group business head from corporate office.
There are many HR interventions too, where one can evolve such strategies in non-existence environment. Non-existence is not un-favorable. One can get definite support in such initiatives from core team and other functional heads shall start supporting instead of dreaming such an attempt by an external resource or corporate affairs.
In my present organization, we are into a paradigm shift, a total turnaround situation; i.e. moving form un-favorable to non-existence to favorable environment. Although, it is a gradual process; however we could create such an environment with rigorous efforts within three month's time. This was certainly backed by diagnostic studies, and data analysis.
To sustain & strengthen this environment to strategy formulation and that too where HR could be on core platform shall be another attempt through hardcore HR initiatives.
I feel good to be part of such change.
There would be many examples with HR fraternity in many other organizations in such paradigm shift.
Parashar
From India, Delhi
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You have raised a million dolor question on the participation of HR people in business strategy. I was in Textile/ Garment business where I was actually part of core team. Core team had reposed trust in me for not only facilitating such initiative in the company but also accepted me as a steering person on given occasions.
In Aditya Birla Group, the financial concept had been very popular in the name of PARTA. I had been an active part of such group meetings where the machine capacities, volumes, revenues etc. are compared with the trend analysis of three to five years. The futuristic targets are discussed in thread bare manner and also benchmarked across the group. This also includes the vendor rating, prices etc. and very significantly the manpower ratios per MT, Cost, Sales Revenues and benchmarked. Skill level is also major part of such meetings.
At unit level, our core team use to decide the annual business targets with periodic reviews. Vulnerabilities, and environmental issues – internal or external also use to be part of process. Gradually I became part of corporate team and use to monitor these ventures and support the group business head from corporate office.
There are many HR interventions too, where one can evolve such strategies in non-existence environment. Non-existence is not un-favorable. One can get definite support in such initiatives from core team and other functional heads shall start supporting instead of dreaming such an attempt by an external resource or corporate affairs.
In my present organization, we are into a paradigm shift, a total turnaround situation; i.e. moving form un-favorable to non-existence to favorable environment. Although, it is a gradual process; however we could create such an environment with rigorous efforts within three month's time. This was certainly backed by diagnostic studies, and data analysis.
To sustain & strengthen this environment to strategy formulation and that too where HR could be on core platform shall be another attempt through hardcore HR initiatives.
I feel good to be part of such change.
There would be many examples with HR fraternity in many other organizations in such paradigm shift.
Parashar
From India, Delhi
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Hi Sir,
Thank you very much for your valuable contribution to my topic. Developing strategies or at least being a part of that team is very important, especially for HR professionals. I hope to receive more feedback on this.
Cheers,
Archna
From India, Delhi
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Thank you very much for your valuable contribution to my topic. Developing strategies or at least being a part of that team is very important, especially for HR professionals. I hope to receive more feedback on this.
Cheers,
Archna
From India, Delhi
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Archana,
One reason why you are not getting enough responses may be that many senior HR persons are quite busy in formulating strategies in their companies along with their strategy teams. I am sure that many companies involve their senior HR persons as any business strategy would involve HR aspects in one way or the other.
If you consider business/product/market expansion, then that would mean an increase in headcount, skill development, etc. If you consider a merger or acquisition, then you have culture-related issues, firing a few people, transferring employees, standardizing the HR policies and pay structures, etc. If you consider new technology introduction, then it may involve downsizing, finding new skills, overcoming resistance to change, etc. If you consider the closure of a part of the business or some business units, then HR will be very much involved as the consequent retrenchments or permission from the labor dept. for closure are the unpleasant jobs that no other dept. would be willing to even share.
But, it remains a question in many organizations whether HR is involved in strategy formulation at the right time.
Govardhan
From India, Madras
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One reason why you are not getting enough responses may be that many senior HR persons are quite busy in formulating strategies in their companies along with their strategy teams. I am sure that many companies involve their senior HR persons as any business strategy would involve HR aspects in one way or the other.
If you consider business/product/market expansion, then that would mean an increase in headcount, skill development, etc. If you consider a merger or acquisition, then you have culture-related issues, firing a few people, transferring employees, standardizing the HR policies and pay structures, etc. If you consider new technology introduction, then it may involve downsizing, finding new skills, overcoming resistance to change, etc. If you consider the closure of a part of the business or some business units, then HR will be very much involved as the consequent retrenchments or permission from the labor dept. for closure are the unpleasant jobs that no other dept. would be willing to even share.
But, it remains a question in many organizations whether HR is involved in strategy formulation at the right time.
Govardhan
From India, Madras
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Hi Archna,
Throughout my career, I have worked in the manufacturing sector, where HR plays a multifaceted role catering to various needs and expectations. Here, more importance is given to Participative Management, where the role of HR is to involve all the people whenever a strategic decision is to be made. Otherwise, it is like translating the business strategies into action and ensuring that employees at all levels understand the implications.
In my current organization, an FMCG company, the role of HR is given significant importance. We have recently established a Core Management Committee, which is led by HR. Under the guidance of this committee, Strategic Business Units (SBUs) have been formed throughout the organization. Not only have we determined the roles and responsibilities of employees in these SBUs, but extensive strategic planning has also been undertaken, covering all aspects of a profit center including budgeting, profit and loss considerations. This comprehensive plan has been designed by the Core Management Committee, comprising functional heads from operations and finance, and presented to each of the four distinct SBUs, which differ in terms of geographical area, profitability, revenues, and sales. This marks a significant contribution by HR to our strategic planning efforts, with successful implementation already underway, tailoring each SBU to meet the management's aspirations.
Regards,
PRADEEP
From India, Hyderabad
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Throughout my career, I have worked in the manufacturing sector, where HR plays a multifaceted role catering to various needs and expectations. Here, more importance is given to Participative Management, where the role of HR is to involve all the people whenever a strategic decision is to be made. Otherwise, it is like translating the business strategies into action and ensuring that employees at all levels understand the implications.
In my current organization, an FMCG company, the role of HR is given significant importance. We have recently established a Core Management Committee, which is led by HR. Under the guidance of this committee, Strategic Business Units (SBUs) have been formed throughout the organization. Not only have we determined the roles and responsibilities of employees in these SBUs, but extensive strategic planning has also been undertaken, covering all aspects of a profit center including budgeting, profit and loss considerations. This comprehensive plan has been designed by the Core Management Committee, comprising functional heads from operations and finance, and presented to each of the four distinct SBUs, which differ in terms of geographical area, profitability, revenues, and sales. This marks a significant contribution by HR to our strategic planning efforts, with successful implementation already underway, tailoring each SBU to meet the management's aspirations.
Regards,
PRADEEP
From India, Hyderabad
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Hi Pradeep & Govardhan,
Thanks for sharing your wonderful thoughts. Strategic HR is still in the teething stage in India. We all can make a difference with the introduction of such strategies in our organizations. I would be delighted to have more inputs on this subject.
Thanks again,
ARchna
From India, Delhi
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Thanks for sharing your wonderful thoughts. Strategic HR is still in the teething stage in India. We all can make a difference with the introduction of such strategies in our organizations. I would be delighted to have more inputs on this subject.
Thanks again,
ARchna
From India, Delhi
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Hi all,
I was working with a growing construction company where I was involved, and my opinions were taken very well in the corporate strategy. The HR team's role is strongly felt in our organization regarding the corporate strategy.
I was involved in all the business plans and other important deals that paved the way for future expansion plans or new ventures. These experiences always help me in keeping a view of the company's future strategy and planning HR practices, as well as defining new policies and procedures for the employees.
From me or the HR department, the company's targets and expectations from various departments flow down to the lower levels of employees. This process helps each employee contribute to the company's strategy and understand the role of each department in contributing to the company's growth.
Based on my experience, I believe HR should definitely be involved in the corporate strategy. This involvement helps in defining each department's responsibilities, maintaining the flow of information without communication gaps, and ensuring direct communication to all employees. This is how I contribute to the corporate strategy.
With regards,
Satya Vegi
From India, Mumbai
Acknowledge(0)Amend(0)
I was working with a growing construction company where I was involved, and my opinions were taken very well in the corporate strategy. The HR team's role is strongly felt in our organization regarding the corporate strategy.
I was involved in all the business plans and other important deals that paved the way for future expansion plans or new ventures. These experiences always help me in keeping a view of the company's future strategy and planning HR practices, as well as defining new policies and procedures for the employees.
From me or the HR department, the company's targets and expectations from various departments flow down to the lower levels of employees. This process helps each employee contribute to the company's strategy and understand the role of each department in contributing to the company's growth.
Based on my experience, I believe HR should definitely be involved in the corporate strategy. This involvement helps in defining each department's responsibilities, maintaining the flow of information without communication gaps, and ensuring direct communication to all employees. This is how I contribute to the corporate strategy.
With regards,
Satya Vegi
From India, Mumbai
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