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Establishing Organizational HR Strategy & Best Practices

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  • 0:00 HR Strategies
  • 0:28 Business Objectives
  • 1:04 Human Resources Strategy
  • 2:07 HR Strategy with…
  • 3:35 Best Practices
  • 5:11 Lesson Summary
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Lesson Transcript
Instructor: Debra Douma-Herren

Debi is a human resources leader for a large organization. She holds a master's degree in Administration with a specialty in Organizational Leadership.

This lesson concentrates on establishing a human resources strategy within an organization. It outlines the link between the human resources strategy and the company's strategy and provides best practices for developing a human resources strategy.

HR Strategies

The human resources strategy is a key element to an organization since employee behavior and performance affect the success of a business. When this strategy helps an employee, team, or department, the company will perform better. This can be achieved by becoming a strategic business partner with the organization and aligning human resources strategy with business strategy.

Business Objectives

Establishing a strategy for human resources involves examining the goals and objectives of the company. These objectives develop the HR strategy. Human resource professionals need to understand what colleagues are working on and each of the department goals. The human resources department must also learn the language of other departments and understand critical business decision-making tools, such as financial reports. One way to accomplish this is through monthly meetings that discuss strategy with business leaders. This allows HR to become a trusted partner that can demonstrate impact on everyone's success.

Human Resources Strategy

A workforce plan establishes a framework for the human resources strategy. This involves evaluating the organization and establishing goals for human capital within it. Specific and measurable objectives should also be used to create an HR strategy. For example, if an objective is to fill the hiring needs of an organization, it may be difficult to determine if that goal was met. This objective could be revised to indicate the necessity to fill 10 vacancies with qualified employees in order to meet the needs of the customer service department. Now the objective has a specific and objective goal.

Current trends emerging in human resources strategy include succession planning, talent management, and leveraging of human potential. Succession planning allows for adequate knowledge transfer between employees. Talent management is the process that attracts, develops, and retains productive employees. Leveraging human potential ensures employees are equipped to perform duties at the highest standards.

HR Strategy with Company Strategy

An HR strategy should connect to the organization's larger purpose. This includes policies, procedures, and programs. Business objectives tend to be related to revenue growth, cost control, or risk management. HR must learn how it can impact these types of business objectives. For example, if the organization is looking at growing the sales force, the primary objective would be growth in revenue. When taking it a step further, the recruitment process may involve a talent management strategy to review the previous results of the candidates as well as a careful selection process. This would tie in with the objectives of controlling cost and managing risk.

To attract and retain customers, businesses have a value proposition to satisfy their client base. A value proposition is the reason a customer should choose a business's product or service. Human resources can enhance the organization's value proposition by looking at the organization from the outside and considering the customer's point of view. This can be done by developing training programs to meet customer needs.

To ensure the HR strategy is aligned with the business strategy, an evaluation process is established. Measurement tools such as 360 evaluations, or evaluations that take feedback from employees and supervisors into account; performance reviews; and surveys can provide this data. If results indicate the strategies are not aligned, adjustments can be made.

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