HR Strategies & its impact on Business Strategy. Submitted By -8364.

Course of Presentation Introduction Definitions HR strategy Business strategy Need & importance of SHRM Views on SHRM Linking HR strategies with business strategy Steps in SHRM Impact of HR Strategies on Organisational Growth Impact of HR Strategies on Organisational Turnaround Conclusion

Introduction 21st century globalization posses distinctive HRM challenges to business. Global business characterized by flow of human & financial resources &opening up of markets. This led to manage human resources effectively to gain competitive advantage in global market place. In today's flattened, downsized &responsive organization highly trained and committed employee are the best competitive key. Thus “People are the key "to their success. Thus source of competitive advantage shifted from financial resource to technological to human capital.

Definitions Strategy- is a comprehensive plan that sets direction & guides the direction of resources to achieve long term objective. HR Strategies- refers to specific course of action the company plans to pursue to achieve its aims. Strategic HRM-defined as linking of Herewith organizational goals &objective in order to improve business performance and develop organizational culture that fosters innovation & flexibility.

HR Strategies Generic strategy /Corporate level strategy also called as Growth strategy. market &product development, profit increase, diversification, merger & acquisitions. Planning for development, training them etc. Building organizational capability. Stability strategy- urge to compete ,complete & excel in competitive environment. Total quality management with delight for customer satisfaction.

Business Strategy Low cost leadership strategy to increase organization’s market share. Differentiation strategy by providing distinctive level of service, high quality to customer and there satisfaction. Focus strategy on specific group of buyer & regional market.

Need & Importance of SHRM To maintain competitive advantage by becoming low cost leader. To tap company’s special skills & core competencies respond to customer needs. To consolidate corporate wide technology & production skills that empower individual business to adapt quickly to changing opportunities. To develop employee skill, distinctive organizational culture, management process & system. To supply competitive intelligence useful for strategic planning.

Continue…….. To make high quality work force that enables organization to compete on the basis of market responsiveness, product & service quality & technological innovation. To play role in environmental scanning i.e. identifying& analyzing ,external opportunities and threats for success of company. To formulate strategy by providing information about strengths and weakness. To suggest new breed of manager that how to measure the monetary impact of there action and able to demonstrate the value added contribution of their function.

Views on SHRM SHRM combines all people mgmt activities into an organized &integrated programme to meet the strategic objective of an enterprise. HR strategy is set of ideas,policies&practices which mgmt adopt in order to achieve a people-mgmt objective. SHRM as a process of linking HR practices to business strategy to ensure that culture,style,structure of organization and the quality ,commitment& motivation of its employee contribute fully to achievement of business objective.

Hierarchy of Accountability in SHRM

Linking HR strategy with Business strategy. It is mainly concern with challenge of matching 5P’s. -Philosophy -Policies -Programmes -Practices -Processes in a way that will stimulate and reinforce the different employee role behaviour appropriate for each competitive strategy.

Continue…….. Create an environment where all employees are learning individuals & makes review of set targets to achieve business expansion. Creating innovative &creative behaviour. Open ended commitment for job satisfaction & business development. Accepting responsibility for making decision & delegation of function. Cross functional integration for all round progress & profitability. Labour force seen as a coactive investment& company wide communication system.

Strategic Planning Process-Simplified Annual Performance Plan Strategic Plan Performance Reports High Level Agency Goals, Strategies & Needed resources Status Report on Achievement of agency Goals Operational Level Strategies, Measures,& Timeframes to Support Strategic Goals

HRM Integration in Agency Strategic Plans Agency Head Sets Strategic direction with mission Top Management Develops top level goals, strategies Line Develops Programmatic implementation Plans Employees & Stakeholders Provide Inputs Plannning Office Coordinates tracking of agency goals & Measures

Steps in SHRM Forecasting Strategy Formulation Strategy Implementation E.g.: If Company wants to provide best quality services to customer & neglects to invest in building trained & motivated workforce, a company is unlikely to be successful. So it is important to align HR strategy with business strategy and to emphasis the kind of HR policies and practices that are appropriate to a chosen business strategy.

Impact of HR Strategies on Organisational Growth Impact on Organisational Goal towards guiding and allocation of peoples investment to product expansion and organisational business. Impact on performance such as employee relations indicators including labour turnover and absence, quality of product & services including financial performance. Impact on maximization of corporate profits through better use in management of people. Impact on understanding of competitive climate, product options, cost constraints, marketing and all other aspects of productivity & profitability that affects the firm or organisation.

Continue…. Impact on predictability & Accountability for direct & indirect contribution towards performance of bottom line. Impact on HR policy & practices across the whole organisation i.e. Transformational & Incremental change.

Impact of HR Strategies on Organisational Turnaround Impact on competencies of workforce to meet strategic objectives by way of Conduct interviews Conduct employee focus groups Conduct staff opinion survey Impact on redeployment of assets i.e. Human Capital Reconfiguring internal arrangements & restoring external confidence in relationships. Impact on involvement of owner & Regulator in the management towards monitoring progress of organisation.

Conclusion There are Overwhelming evidences that progressive HR strategies improve business performance by helping to ensure that an organisation has the skilled,flexible,motivated &committed people it needs and by improving job satisfaction ,motivation&commitment to encourage productivity &profitability.To achieve the maximum benefits in terms of competitiveness & business success, organisation should ensure that their people management practices are --

Continue…. Based on business led strategies for creating a positive performance oriented and customer foucs culture. Aim to achieve competitive advantage by acquiring and developing high quality people and enhancing intellectual capital available to the organisation. Integrated with one another so that coherent and mutually supportive approach used to select, develop reward people. Fully supported by top management on understanding that it is people who implement business plans & through whom competitive edge is achieved.