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 of view of the CEO, the director of HR should be at least equal to the CFO." (pages 99 and 100).
a) How can I emphasize the importance of HR when talking to the company's CEO?
b) The same goes for the topic of how to align HRM with corporate goals. Any ideas?
Thanks,
Alhussein El-Shennawy
From Egypt, Gizeh
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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 of view of the CEO, the director of HR should be at least equal to the CFO." (pages 99 and 100).
a) How can I emphasize the importance of HR when talking to the company's CEO?
b) The same goes for the topic of how to align HRM with corporate goals. Any ideas?
Thanks,
Alhussein El-Shennawy
From Egypt, Gizeh
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Hi Alhussein El-Shennawy,
You have a wonderful name. I have never communicated with anyone from Egypt. 😲 I'm fascinated with Egypt and the mummy and all the stories that I've heard or seen. How is it living there? Please do share.
Okay, coming to your query. I really don't know much about it, but there was an article related to HR being considered as important as the CFO. You can check it out in last month's paper on www.economictimes.com.
From what I can remember, they were given importance on the following:
1. Salary was increased.
2. Present in board meetings.
3. Are consulted for strategic decisions because of manpower planning.
I hope others can provide more answers.
From India, Mumbai
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12You have a wonderful name. I have never communicated with anyone from Egypt. 😲 I'm fascinated with Egypt and the mummy and all the stories that I've heard or seen. How is it living there? Please do share.
Okay, coming to your query. I really don't know much about it, but there was an article related to HR being considered as important as the CFO. You can check it out in last month's paper on www.economictimes.com.
From what I can remember, they were given importance on the following:
1. Salary was increased.
2. Present in board meetings.
3. Are consulted for strategic decisions because of manpower planning.
I hope others can provide more answers.
From India, Mumbai
Acknowledge(0)Amend(0)
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 a contribution to the development of:
- Corporate mission statement
- Corporate objectives
- Corporate strategy.
Normally, the senior management team or top management would consist 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.
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 strengths/weaknesses of the organization and pinpoint the problem areas that need 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 become 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
Upon 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 the case of HR, which is a department by itself, this final corporate mission statement, objectives, and strategies become the foundation information for the HR department to work out its departmental objectives/strategies/plans. However, the 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.
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.
- 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 multilingual 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 the Euro market
- Sell new products in the 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 the 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 an 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.
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
Acknowledge(1)
Amend(0)
Hope my understanding of your question is clear.
In most companies, HRM is part of senior management. HRM makes a contribution to the development of:
- Corporate mission statement
- Corporate objectives
- Corporate strategy.
Normally, the senior management team or top management would consist 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.
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 strengths/weaknesses of the organization and pinpoint the problem areas that need 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 become 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
Upon 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 the case of HR, which is a department by itself, this final corporate mission statement, objectives, and strategies become the foundation information for the HR department to work out its departmental objectives/strategies/plans. However, the 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.
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.
- 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 multilingual 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 the Euro market
- Sell new products in the 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 the 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 an 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.
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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