HR Strategy and Its Impact ob Business Strategy

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

2. 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

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. Hierarchy of
Accountability in SHRM

11. 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.

12. 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.

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

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

15. 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.

16. 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.

17. 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.

18. 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.

19. 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 --

20. 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.