Strategy Formulation and Implementation
A clear strategy in any company is essential as it’s ensures the organisation is moving in the right direction to achieve its goals and objectives. When policy is well formulated, it helps to define the various roles of the human resource department. There are eight steps to achieving a successful strategy.
Aligning business and HR needs
Every business has goals that needs to be met and must have a suitable strategy put in place to assist in achieving this. The role of HR is to evaluate whether the internal team can meet these goals. The human resource department should also ensure the organisation has a competent workforce and even offer incentives to motivate them to perform.
Developing your HR strategy
Every company should understand their goals and objectives in detail. This will ensure they can identify their weaknesses, strengths, and any opportunities. For a company to succeed, it requires an experienced human resource team. The HR team, as part of senior management undoubtedly help the company in achieving its goals.
This is the process in which the business goals and objectives are shared across the entire company. HR will be in assess the performance for all team members, ensuring they are competent and achieving the company’s goals. HR should also report on what has been achieved and what is yet to be achieved from those goals and objectives.
Organisational design and structure
This includes the size, shape and structure of a company. Mostly this strategy is aimed at ensuring all customers’ needs are met efficiently and effectively. The role of the human resource department in this area is to ensure the structure and operational aspects of the business are competent and adding value.
The strategy for workforce planning involves assessing needs and devising a suitable strategy for candidate attraction. HR has a responsibility for hiring a competent workforce that will positively impact on the values, culture, and brand of the company.
It is important to develop individuals skills as this development will ensure the company has a competent workforce who can execute their job descriptions well. HR therefore needs to ensure all employees go through first class training and development that focused on individual development needs. This training should be developed with the companies goals and objectives in mind.
Compensation and benefits
Compensation and benefits include salary, bonuses, holidays and pension contributions. In the strategic sense compensation and benefits can be used to improve employee performance. This strategy is known as reward strategy. It’s main objective is to make sure the company’s brand, values and culture is aligned with how they treat their employees. HR should take responsibility for ensuring these incentives remain competitive and of value to the employees. HR should also evaluate employees and identify those who deserves to be rewarded, often as part of a performance review. Poor performers should also be identified as part of this process and measures should be implemented to improve performance.
A company’s culture is essential for overall performance. It affects organisational behavior, and ultimately the company brand. When a culture is instilled in a business, HR can use this as one internal benchmark when hiring. Additionally, HR can use phycometric testing to ensure employees fit into the existing culture. A good company culture will often lead to a unique and fun working environment.