1. Role of HR in Business Strategy
Contact- 094397 62322
Post-Graduation Diploma in Management (PGDM)
Asian School of Business Management
Siksha Vihar, Bhola, Chandaka, Bhubaneswar
2. Introduction: “People as human capital”
The notion that people should be regarded as assets rather than variable costs,
in other words treated as human capital was originally advanced by Beer et al
(1984). HRM philosophy as mentioned by Karen Legge (1995), holds that
“human resources are valuable and a source of competitive advantage.”
People and their collective skills, abilities, and experience, coupled with their
ability to deploy these in interest of the employing organization, are now
recognized as making a significant contribution to organizational success and
as constituting a significant source of competitive advantage.
The emerging roles of HR professionals in driving organizational change:
There is no doubt that globalization has made the business world extremely
competitive. Change has become inevitable in many business organizations
because it is the question of survival of today’s business organizations. These
inevitable and constant changes have also made the roles of HR professional
challenging. HR Professionals are supposed to play the roles that are parallel to
the needs of changing situations. They have to come out from the traditional
roles framework. Any kind of change, whether it is small or big, makes a
distance between management and employees. The expectation of
management from employees is changing. At the same time, the expectation
of employees from management is also changing. HR Professionals must
recognize that employees and management have the different concerns that
create a gap between them. HR Professionals can play a significant role here as
‘a gap reducer’.
3. Link to Business Planning:
Human resource planning should be an integral part of business planning. The
planning process defines projected changes in the types of activities carried
out by the organization and scale of those activities. It identifies the core
competences the organization needs to achieve its goals and therefore its skill
and behavioural requirements. So it is clear that the role of a HR person is
playing the vital role in business planning and strategies.
Resourcing Plans by HR:
The analysis of future requirements should indicate what steps need to be
taken to appoint people from within the organization and what learning and
development programmes should be planned. The analysis will also establish
how many people will need to be recruited or the impossibility of training
people in the new skills in time.
Ideally of future resource should be based on data already available about
skills and potential. This should have been provided by regular skills audits and
the analysis of the outcomes of performance management reviews. A “trawl”
can then be made to locate available talent, which be accompanied by an
internal advertising campaign.
External resourcing requirement can be met by developing a requirement
strategy. The aims of this strategy would be first to make the organization the
4. employer of choice in its particular field or for the people it wants to recruit.
Retention strategies aim to ensure the key people stay with the organization
and that wasteful and expensive levels of employee turnover are reduced. The
role of turnover in the business strategy or planning may cause the disaster for
the company or may be very satisfies for it. So some of the points are given
below in which the role of HR person is highly needed and that should be taken
into account. Such as
Decision Making of Payment
An HR strategy can never be created in isolation (without considering the
business and other factors); otherwise, it's just the usual HR functions. It is
important for the HR professional to understand where the business is
heading, what kind of talent is needed, when is it needed, in which location/s,
for which customer, and at what cost. Such knowledge would help develop an
effective people strategy to help the business achieve its defined goals and
thus, changing the role of HR professionals to that of a strategic enabler. The
HR director must become more accountable for defining, managing and
5. implementing the people strategy of the organisation and support in the
efficient running of an organisation.
Leverage the power of data:
Relevant data makes any statement more believable. If HR wants to play a role
in the strategic space, it is important for them to understand and talk relevant
Technology & change management:
In today’s world, when every sphere of life is impacted by technology, it is
equally important for the HR leader to leverage the vast potential of new age
technological innovations. The days when role of technology was limited to
automation of processes are long gone. With social media coming in,
technology can be used as a sourcing tool, as well as to engage employees
across locations. It is high time that the HR plays the role of a change and
transformation agent and benefit from technology. Smart use of technology
systems would result in efficient talent management and help HR in playing a
significant role in strategic decision making.
Match strategy with action:
It is essential for HR professionals to ensure that there is a clear line of thought
between business strategy and HR actions. They need to think of appropriate
ways of ensuring that services are delivered effectively and think through new
plans and strategies for enabling businesses in achieving their goals. Excellence
in HR operations is the basis for the HR professional to perform effectively.
6. Aligning HR Interventions with Corporate Goals:
HRD professionals have tried to contribute to business results. Most HR
managers are motivated to play a part in achieving success for the
organizations for which they work, and make this concern a driving force in
their day to day operations. It will help him in Increasing competition, Value
addition, capitalizing on Synergies, attaining leadership. The most important
decisions taken by the HR persons is not the recruitment but the compensation
management, training, internal communication etc.
Role of HR in R&D:
The important role of the HR person in the R&D which is best way of
developing the business through the market research and study of customer
needs for the organization.
It is proposed to create a new company which will be carrying out R&D
activities in the Bi- wheeler business.
The aspects of the research for the organization are kept secured by the
functions of HR and are co-ordinated by the sector itself.
Intangible Benefits of HR in Business Strategy:
Increased Market share
Better customer satisfaction
Improved Vendor services
Increased Flexibility in the organization
Reduced quality flaws
Improved resource utilization
Better cost visibility
7. Improved morale
Conclusion: Upgrading employees and preparing them for the change,
modernization of mind, leading to collaboration and innovation, was another
stand of thought which emerged during the deliberation of HR functionalities.
In the business strategy it is very needed to be practical not very hypothetical.
While taking the decision or making the future plans for expansion in it. It is
very essential to merge with the ideas of the HR manager in planning and
strategy as he deals with the individuals and keeps a holistic view in society.