Alignment of Human Resource Functions with Corporate Objectives - Example

Human Resource Management Student’s Name Course Instructor Date Introduction Strategic human resource management is very proactive in nature (Fombrum, Tichy & Devanna, 1984. P27). It majors in managing all issues related to human assets in an organization by appropriate planning and execution of those plans. The important part of this arm of management is the necessity to see the needs of employees early enough to be met by the organization. On the other hand, employees are also required to deliver the best of what the organization expects from them. Strategic human resource management focuses on upgrading the manner in which every process in the organization is undertaken with the aim of improving overall performance. The success of strategic human resource management is when the organization effectively meets the needs of its employees. This creates an atmosphere that allows employees to discharge the best hence improving the level of productivity. This kind of motivation is very essential in ensuring high levels of efficiency in the organization. This will yield better outcomes if it is made to become the organization’s culture. It is a factor that encourages employees to commit themselves to the company for a longer period. Reduced rate of employee turnover helps the organization to develop its skilled labour force. Employee development begins at recruitment and goes all the way through the life of an employee in the organization. Alignment of Human Resource functions with corporate objectives It happens in most of the organizations that human resource personnel are required to perform some duties that are outside their field of speciality. Many organizations choose this option with the aim of reducing costs and redundancy. Whenever there are less function to be discharged in human resource department, related responsibilities can be allocated to the human resource specialists. In this particular assignment, the main focus surrounds what it takes to make this kind of arrangements a success. There is no doubt that a lot must be put in place to ensure that the extra activities allocated are well discharged. In as much as this is to be done by the officer delegating the responsibilities, the human resource officer is charged with undertaking those responsibilities must ensure responsibilities are done appropriately. The main idea at this level is ensuring that whoever undertakes the delegated task produces utmost results. This will be determined with how the person handling the job has been trained and mentored in a certain field. This approach is applicable both to a small organization as well as large ones. The issue of aligning the human resource functions with corporate objectives is very important. Creation of both vertical and horizontal alignment provides the organization’s decision making process and the overall outcome (Wessel 1993, p.37). In every organization, the need to align and harmonize the goals of various functionalities with the main objectives is paramount. It is one way through which the organization gives every partaker in the realization of the overall goals to make contributions that will help tune the organization on the required road for success. This is because departmental goals are subsets of the larger organizational goals. Departmental goals are designed in a manner that will enable the organization to achieve the overall objectives. At this particular level, the main focus is to ensure that inside functionalities do not derail organizational pace. This applies to all departments of the organization. In relation to human resource management, the need to align its goals is truly significant. Human resource department is the academy in charge of modelling people who will ensure that objectives of the organization are achieved. Therefore in this regard, human resource department is the most sensitive stakeholder. The process of recruiting, employee training and development, appraisal, remuneration, etc. is very critical determining the quality of the workforce in the organization. Having realized the role that is to be played by human resource department in the achievement of overall goals, it is easier to highlight the need for their objectives to be in tandem with those of the organization. In recruiting and developing the workforce, the human resource practitioners should focus on ensuring they supply according to the needs of the organization (Mucha 2008, p.51). For this to be achieved, it calls for restructuring the whole process of acquisition and training of the workforce. The human resource should undertake the process with clearly set objectives to be met at the end of it. In most organizations, human resource practitioners are meant to interact more with other departments in order to ensure they fully understand the needs of the organization. This will enable the human resource personnel to fully understand the company’s value creation model. This model is responsible for guiding the organization in building competencies suitable to the needs of the organization. In applying this model, the organization is strategically placed to improve processes that are essential in overall performance. This cannot yield fruits unless the overall goals are in alignment with individual goals. The need for alignment is to ensure that all participants are on the same direction with shared purpose. This paves the way for proper utilization of available resources for the good of the organization. In fact, one of the major focuses in relation to goal alignment is reduction of wastage of resources. Whenever the whole business entity is pulling in the same direction, it is very easy to control unnecessary expenditure. This will be achieved through the budgeting process. Through the budget, the organization will approve what can be spend and what cannot. This cannot be limited to a single aspect of the organization. Every aspect must be shaped according to the strategies being pursued for the interest of the organization. Alignment in relation to recruitment of employees Recruitment process is of the most important roles of strategic human resource professionals. This is the stage where the organization is expected to select individuals who have the right DNA for the organization. The human resource must put the necessary framework to ensure that only those candidates with the required qualifications are selected. Since this is at the entry point, the human resource must pay a lot of attention. Failure to accord this stage the required attention may derail achievement of the goals of the organization. At this point, the strategic human resource must ensure that the candidate’s individual competencies and abilities match with the corporate need of the company (Taylor & Finely 2009, p.83). In as much these employees will be posted to a specific department to discharge specific duties, the strategic human resource managers must ensure the candidate meets the overall scope of the organization. The success of this stage affects other subsequent processes positively. That is to say, if the right people have been selected, it is easier for them to go through other processes of this nature. Training and development will be built upon this foundation. Alignment in relation to Training and Development Training and development is the process that is responsible for packaging the required workforce for the benefit of the organization. Through training and development, the necessary skills and knowledge is transferred to the employees. At the same time, this is the right time for the employees to be familiarized with the organization culture, philosophy, core values, mission, vision, etc. The aim is to inculcate the required qualities into the employees so as to make it easy for them to quickly adapt the new environment (Grant 2003, p.159). The values being transferred to the employees at this stage of their career will be carried throughout their life in the organization. It is therefore very crucial to the organization. The strategic human resource should make training and development a priority in any given organization. This should not be a one-time event. Instead, training and development should be done on a regular basis. The aim of such a strategy is to ensure that the workforce is constantly updated on what the organization requires. This is founded on the fact that the environment in which the organization operates in keeps on changing. Therefore, the strategic human resource must be prepared for this by having regular training programs to suit the constantly changing environment. In doing this, strategic human resource will be position itself in line with the corporate needs of the organization. Alignment in relation to Performance Appraisal The strategic human resource department have the responsibility of carrying out employee performance evaluation. The focus is to assess how employees are working and what they are delivering to the organization. It is a process aimed at gauging employees’ competency. This usually forms the basis for promotion and salary reviews. The decision is to reward those who perform well as a way of encouraging competency. To promote corporate performance, this role must also be in line with the corporate objectives (Barron 2003, p.55). The framework to be used in carrying out performance appraisal ought to be in line with the corporate objectives. That is to say, employee rewarding and promotion must meet the criteria set in connection to the corporate objectives of the organization. Through this process, redundancy is reduced as much as possible. The process will ensure that only the required workforce is retained in the organization. The strategic human resource department will set these targets that will ensure the best is retained in the organization. This will be through consultation with the respective departments in order to get their analysis of their staff. More to that, staff will have to be allocated responsibilities basing on their capabilities and competencies. This process of matching one’s ability with their responsibility is meant to increase efficiency and productivity. At the end of it, the organization will be in a position to effectively monitor its performance. This will be both at departmental level as well as organizational level. Alignment in relation to Employee Compensation and Remuneration Devising the best compensation plans is essential to retaining employees in the organization. At this level, it is important for the organization to reduce the rate of employee turnover. The best way to retain employees in the organization is by compensating employees appropriately. Strategic human resource practitioners have the responsibility of designing compensation packages that will motivate employees. In setting compensation packages, the strategic human resource personnel must put into consideration a number of factors. One of them is the financial performance of the organization. Besides the financial performance of the organization, they are also required to compare with compensation packages of other organizations in the same industry. These plus other factors should be used to set the best compensation packages for employees in the organization. In setting the employee compensation packages, the strategic human resource must also ensure the set packages are in line with the overall organization objectives (Hememan & Milanowski 2004, p.111). In this regard, this may be in line with the budgetary allocations from the organization’s finances. This is aimed at ensuring that the organization is well equipped to control its overall costs. Failure to achieve this may lead the organization into a financial crisis which will definitely affect its operations. Strategic human resource must be on the forefront in guiding the organization on the best way to control its overall costs. That will imply that the human resource will be aligning its budgetary needs with those of the organization. Alignment in relation to Employee Safety and Health The state of the environment in which employees discharge their responsibility is very significant. As guideline provided by labour unions and other related organizations, the company is charged with the responsibility of ensuring the environment in which employees are operating in is very safe. The health and safety of the employees is paramount. The strategic human resource is charged with ensuring that the environment in which employees are working in is conducive enough for their work. This is critical in setting and achieving strategic plans in the organization. The company must ensure compliance as a means of motivating employees. At the same time, compliance reduces litigations against the company. The strategic human resource is charged with ensuring this compliance. This is not for the benefit of individual members, but for the whole company. In doing this, the strategic human resource will be addressing the wider objectives of the organization. The department will be moving into participating in the mainstream activities of the organization. In so doing, the role of strategic human resource will be undergoing remodelling in order to adequately meet the diverse needs of the organization (Grant 2003, p.159). The best way this can be achieved is making sure that the strategies of human resource are made to easily connect with the corporate strategies of the company. The organization therefore has the responsibility of ensuring that every department is focused on the same objectives. The issue of ensuring alignment between organizational goals and departmental goals therefore should not be limited to strategic human resource alone, but to all departments. Vertical alignment of Company’s goals with those of Strategic Human Resource It is important to emphasize that alignment of strategies of human resource with overall objectives of the organization is the main determiner of achieving overall goals. Whenever disconnect exist between the goals of strategic human resource department and the corporate objectives then it may as well mark the end of the organization. This is basically found in the reasoning that human resource is in charge of supplying the company with the required labour force to drive its goals (Burn 1993, p.205). In the situation where the goals of the two entities are in contrary, there is less that can be achieved. This partly explains how the issue of vertical alignment comes into the limelight. According to vertical alignment, organizational goals and objectives determine the company’s strategies. The goals and objectives set by the strategic human resource should be done in a manner that will enable the realization of overall objectives. According to this strategy, goals set by the strategic human resource must meet the vision and mission of the organization. That is to imply that the departmental objectives of human resource are specifically aligned to attain the vision of the organization. Just like other strategies, this one also targets efficient utilization of resources. The focus of these strategies is to ensure that overall objectives of the organization can be achieved at the lowest possible cost. Horizontal alignment of Organization’s goal with that of Strategic Human Resource The aim of this organizational strategy is to ensure harmonization of all strategies. That is to imply that there need not to be competition among strategies in the organization. Instead these strategies must work together to ensure overall goals of the organization are realized. That means that the company must be considerate when laying down its objectives to make sure that they are not going against those of human resource. This calls for thorough consultation to reduce chances of objectives of the same organization pulling in different directions. For instance, a situation where the strategic human resource is planning to increase the company’s workforce due to increased operations, the organization should not have an objective of reducing costs of operation that entails retrenching some employees. In a circumstance of that nature, the organization and its human resource department will be pulling in different directions. With this, the organization will not go far since its objectives are in contrary with those of its departments. The best way to go about this is for the organization to give the strategic human resource unit the general overview of where the company is aiming at. From this particular framework, the strategic human resource will then design a blueprint of what it aims to achieve within the set timeframe. Through this form of coordination, the strategic human resource can effectively discharge its responsibilities for the good of the organization. In most organizations, horizontal alignment strategy is considered a better strategy as compared to vertical alignment strategy. It leads to realization of better outcomes. Operational alignment of Organizational goals with that of Strategic Human Resource This is yet another kind of alignment that can be applied in relation to strategic human resource. The main focus of this kind of alignment is concerned about how work will be done. The target is the achievement of goals through ensuring performance at the required stages of operation. When dealing with operational alignment, one of the crucial facets is resource. There is a need to ensure that resources are available in order for specific units of work to be effectively undertaken. This is relative depending on the nature and size of the organization. This is to ensure that the allocation of workforce is equivalent to the available resources. Strategic human resource is supposed to set the relevant framework within which the available duties are supposed to be undertaken (Andrews & Beynon 2011, p.210). At the same time, a detailed plan of the specific individuals to undertake it is very crucial. In setting these objectives, it is also good to emphasize that they must be in agreement with the overall objectives of the organization. Failure to achieve that may lead to conflicts between the strategic human resource and the organization. This may be manifested through lack of financial support from the organization by the department. This is at the point where the organization feels that the department has set some objectives that are not its overall agenda. In ensuring the problem does not arise, the strategic human resource will be required to ensure alignment with overall organizational objectives. Conclusion The subject of aligning departmental objectives and goals with those of the company’s objectives is very crucial. This does not apply only to human resource management, but also to all other departments in the organization. There must be cohesion in objectives of the organization with those of individual department to ensure productivity is attained. Therefore, there is no other way around this issue. The corporate goals of the organization should be tuned in to the company’s vision and mission. The departmental goals should be subsets of the core objectives of the organizations. That is to suggest that departmental goals should not be too rigid. Instead, they should be flexible in order to make it possible to flow in the same direction as the main organizational goals. In realizing this, the organization will be in a position to enhance efficiency. Reduced wastage will ensure high levels of productivity. Therefore, in relation to the argument posed by Davidson, there is need for the strategic human resource to bring their specialist functions into closer alignment with organizational objectives. References Andrews, R. & Beynon, M 2011, ‘Organizational Form and Strategic Alignment in a Local Authority: A Preliminary Exploration using Fuzzy Clustering’, Public Organization Review, Vol.11 no. 3, p.201-218. Barron, T 2003, ‘It’s All About Alignment’, T + D, Vol.57 no. 11, p.52-57. Burn, J 93, “Information Systems strategies and Management of Organizational change: a strategic alignment model”, Journal of Information Technology, Vol. 8 Issue 4, p205. Fombrum, C, Tichy, N & Devanna, M 1984, Strategic Human Resource Management, Wiley, New Jersey.P.23. Grant, G 2003, ‘Strategic alignment and enterprise systems implementation: the case of Metalco’, Journal of Information Technology, Vol. 28 Issue 3, pp.159. Hememan, H & Milanowski, A 2004, ‘Alignment of Human Resource Practices and Teacher Performance Competency’, Peabody Journal of Education, Vol. 79, no. 4, p.108-125. Mucha, M 2008, “Organizational Alignment with Logic Models”, Government Finance Review, Vol. 24 Issue 5, p.51-52. Saunders, M, Millmore M, Lewis, P, Thornhill, A & Marror, T 2007, Strategic Human Resource: Contemporary Issues, Financial Times, New York, p139. Taylor, M & Finely, D 2009, ‘Strategic Human Resource Management I U.S. Luxury Resorts: A Case Study’, Journal of Human Resource in Hospitality and Tourism, Vol.8 no.1, p.82- 95. Wessel, J 1993, ‘The Strategic human resource management process in practice’, Planning Review, Vol.21 no.5, p.37. Read More