Refining Your Business Strategy through Strategic HRM

Gone are the days when an organization’s HR department’s role was limited only to hiring, payroll processing or exit formalities. Today the responsibilities and expectations from HR are much more. HR, these days, has become an integral part of Business Strategy. And, in some HR dominated organizations, HRM drives the business strategies and help in achieving organization goals.

One of the major challenges for HR leaders is to convince executive leadership groups that human capital is one of the most essential resources in which the company should invest. This return on investment is an important part of the argument for involving HR as part of an overall business strategy. Let’s see which gaps can HRM fulfill in today’s dynamic work cultures.

• HR Strategy Is Business Strategy: In this global market, a successful businessperson realizes the strong link between business strategy and HR strategy. Developing human capital is essential to the longevity and success of a business. In the past, personnel administration was merely linked with payroll, profits, and applications. HR strategy nowadays involves executive leadership teams coordinating with human resources experts to develop complementing aims for human resources and the whole business.
• Developing Strategies and Solutions for the Management Level: Management level development is also an important component of this process. Organizational development, employee selection, recruitment and total manpower planning are key elements of management training. When problems grow, the HR department and the business-management group must work together to find solutions that keep employees satisfied and keep the business on track to meet its financial and strategic goals.
• Ensuring Business Productivity: The recruitment and selection process of the company's human resources department is paramount in building a productive workforce. Developing a human resource strategy for recruiting and selecting the best employees affects their organization's bottom line. Maintaining a workforce where employees are happy and having high levels of job satisfaction translates into a workforce that assists in enhanced business productivity.
• Communication among Executive Leadership: The real test of connectivity between human resources and overall business strategy is the quality of the communication between human resources executives and other company executives. Many times, human resources leaders who are denied access to the boardroom complain that companies don't appreciate the value of human capital. The way to regain the relationship between HR and C-level executives is by demonstrating the return on investment in human resources actions.
• Trends' impact on HR and Business Strategy: The big thing about technology in HR and technology in Business is that HR technologies have now become an integrated engine for advancing the broader needs of the business. The coordination between the two can help in far more than just fundamental transactions and can also advance the HR and business agenda of the future. Human resources information systems are integral in the development of performance management, and selection.

Open-thinking concepts may be approached carefully to ignore skepticism among old-school executives who still take human resources as merely personnel administration. It is necessary to align the team in line with the goals and thus it is necessary to adhere to certain policies for effective hiring. Building the relationship may also require the assistance of an HR consultant to map the strategy for effecting change in an organization.