...IMPACT OF HR AND BUSINESS STRATEGY ALIGNMENT ON JOB PERFORMANCE AND EMPLOYEE SATISFACTION Abstract A company’s success is determined to a large extent by the nature of its employees as well as the level of devotion that employees demonstrate. Due to this, the top managers and executives are given the responsibility for maintaining control on employee’s activities as well as the employee’s management policies through the development of the Human Resource Management Department. This shows that how important role HR plays in maintain the employees satisfied within any organization. This research study is focused on studying the impact of HR and business strategy alignment on job performance and employee satisfaction. This research used deductive approach as this study find out the impact of aligning HR with business strategy and effect of job environment on employee satisfaction. The survey questionnaire method is used to get reliable and valid results based on close ended questions having a 5-Likert scale to measure the attitude of employees and employers towards the impact of aligning HR with business strategy and effect of job environment on employee satisfaction at Siemens. The research used SPSS for analysing quantitative information by using descriptive analysis and inferential analysis. Research shows that Siemens align HR practices and business strategy. From regression analysis, it is found that alignment of Human Resource practices with the business strategies of...
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...20 Executive Summary This project is based on finding the rationale behind the development of HR Scorecard and the reasons behind its successful implementation in companies worldwide. HR Scorecard is a tool used by the organization to match HR deliverables with the strategic aspect of the business. It provides a platform to measure HR performance and efficiency and how it can be molded to adapt to the ever-changing strategies of the company. First the strategy of the business is identified and the basis of that, KPIs of HR Scorecard is designed. Implementation of HR Scorecard involves complete acceptance of the system by the employee as well as the employer. Also it requires the development of a flexible system, which can be revised and reformed according to different scenarios. Overall Performance of Company The Company’s capacity to implement strategy Strategically Focused Employees Performance Measurement System HR Strategic Alignment Knowledge Management System HR Scorecard helps to highlight the role of the HR as that of the Strategic Business Partner. HR department can contribute in the strategy by becoming cost effective and creating added value for the company. HR’s emerging strategic potential is very efficiently gauged with the help of HR Scorecard. Many Indian companies like NTPC, The Taj Group have adopted and implemented HR Scorecard, which we will discuss in detail in the course of...
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...A CLOSE ALIGNMENT OF ORGANIZATION STRATEGY WITH HUMAN RESOURCE DEVELOPMENT (HRD), AS A WAY TO IMPROVE INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE There is increased need of human resources development to meet today’s organizations’ needs, which are ever changing due to globalization that has resulted into more competition in the global markets (Garavan, Heraty, & Barnicle, 2002). According to Hyland (2005), human resource development (HRD) refers to the process of enhancing human resource capability through strategies and development, organization development and career development in order to boost their performance, which in turn boosts an organization’s performance. Therefore, HRD functions can be described as a set of organized and systematic activities, which are planned to provide opportunities to an organization’s members to acquire skills necessary for meeting their present and future job requirements (Chien-Chi & Gary, 2008). In today’s competitive markets and ever changing external environmental factors, HRD has become of great importance since it ensures productive and successful management (Du Plessis, Nel, Struthers, Robins, & Williams, 2007). Many organizations have therefore adopted the strategy of integrating their organization’s strategy into their HRD functions (Schuler, 1992), in addressing the changing external environment. Hyland defines organizational strategy as a plan of activities that an organization needs to undertake in order to meet...
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...1. What is Strategic Account Management? * Strategic account management is a systemic process for managing key interactions and relationships with critical accounts * 20% of customers generate 80% of the revenue/profit * Strategic accounts tend to provide a disproportionate share of a firm’s revenue/profit * Must manage account relationships, and be accountable for ongoing and long-term financial growth 2. 3. What are the benefits of Strategic Account Management? * Strategic account management can offer a competitive advantage, the key to greater loyalty, and the road to higher profitability * A well-designed and well executed strategic account management program can minimize, or in some cases, eliminate competition 4. What are the challenges of implementing Strategic Account Management? * Programs falter when firms underestimate the time, resource requirements, and complexity of rolling out the program * Creating a systemic way to manage strategic accounts is a little like putting down the road as you’re driving on it * You must maintain your firm’s financial performance while reinventing the way it serves its most critical customers. This is perhaps the greatest challenge in implementing strategic account management. 5. Create cross-functional executive leadership * This leadership helps create and communicate the urgency that ensures organizational commitment to strategic account management * These cross-functional...
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...Chapter 2: Strategy: The Totality of Decisions Multiple Choice Questions 1. (p. 39) “Everyone wears several hats” and “succeed by working together” are examples of which of the following? A. Objectives B. Internal alignment C. Externally competitive D. Employee contributions Difficulty: Medium 2. (p. 41) “Putting some skin in the game” refers to: A. employees paid entirely on commission B. being paid as a contract vs. a regular employee C. below market base pay with stock ownership D. above market base pay with low benefits Difficulty: Medium 3. (p. 41) A compensation system that pays employees such that “some skin is in the game” means that A. a portion of employee pay is at risk B. employers risk high labor costs C. level of base pay is below competitors D. base pay is low while benefits are generous Difficulty: Medium 4. (p. 41)______________ changed its compensation strategy as the company grew and matured? A. SAS B. Google C. Microsoft D. CNET Difficulty: Medium 5. (p. 42) At the corporate level, a strategic compensation perspective addresses the question: A. What business should we be in? B. What is our desired return on assets? C. How can our total compensation help gain competitive advantage to achieve organization success? D. How can job analysis help us select the most appropriate certain compensation technique(s) for our organization? Difficulty: Medium 6. (p. 42) What level of strategy...
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...is aligned with its strategic priorities helps the organization achieve business success. The challenge: achieving alignment and sustaining it over the long term. High Performance: As Unique as a Company Itself One of the most striking characteristics of highperformance organizations is the level of harmony between business strategy and organization culture that they manage to achieve and sustain over time. A manufacturer competing chiefly on cost and efficiency, for instance, requires a culture very different from that of a luxury goods retailer for which personalized customer attention is the ultimate differentiator. “High performance” means different things in companies competing on different strategic priorities across industry sectors. In short, the right high-performance environment is one that helps a company achieve a specific set of business requirements. In a high-performance organization, workplace practices must actively influence the employee behaviors needed to execute its strategy and reinforce its market focus. behaviors of leaders are critical in establishing a culture that aligns with the business strategy. But, certainly, this is easier said than done. In fact, many companies’ cultures are not aligned with their business objectives, because their leaders, who by and large focus on the financial and operational aspects of the business, simply allow corporate culture to evolve. In some cases, the responsibilities of day-to-day management intrude, or leaders...
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...Special Issue: Bridging Micro and Macro Domains Journal of Management Vol. 37 No. 2, March 2011 421-428 DOI: 10.1177/0149206310373400 © The Author(s) 2011 Reprints and permission: http://www. sagepub.com/journalsPermissions.nav Invited Editorial Bridging Micro and Macro Domains: Workforce Differentiation and Strategic Human Resource Management Mark A. Huselid Rutgers University Brian E. Becker State University of New York at Buffalo In this article, the authors focus on the challenges and opportunities associated with integrating the macro and macro domains of the strategic human resource (HR) management literature. Their specific focus is on the development of a differentiated HR architecture in support of strategy execution as a key organizing theme. A focus on strategic capabilities and strategic jobs as the focal point of workforce management system design represents a significant potential source of value creation for most firms. But, also, differentiation by strategic capability instead of hierarchical organizational level represents potential implementation challenges for managers, and theoretical and empirical challenges for academics. Keywords: high-performance work systems; workforce differentiation; strategic human resource management; strategic capabilities A significant divide between the micro and macro levels of theory and analysis is evident in many areas of the organizational sciences. While increasing levels of specialization are often associated...
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...HUMAN RESOURCE PRACTICES ALIGNMENT: A CASE STUDY HERBERT G. HENEMAN III AND A N T H O N Y T. M I L A N O W S K I Research has established the link between HR practices and organizational performance, suggesting that the HR system has great strategic potential to drive organizational effectiveness. To capitalize on this potential, the organization must design and deliver HR practices that focus on necessary employee performance competencies, creating an HR system with vertical and horizontal alignment around those competencies. Doing this requires that the organization first assess how its HR practices are currently aligned and then develop ideas for improving HR practice that will be alignment enhancing. We call this diagnostic process Human Resource Alignment (HRA) assessment. We describe an HRA assessment process we developed and applied in a large public school district for the key job of teacher. The assessment was based on the district’s formal teacher performance competency model used, and was conducted by a group of human resources and instructional job experts from the district. These experts rated the degree of vertical and horizontal alignment and then developed suggestions for HR practice changes that would improve alignment. After describing the process and results, we present a series of lessons learned and directions for future research. © 2011 Wiley Periodicals, Inc. Keywords: strategic human resource management, human resource alignment assessment Introduction ...
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...Aligning Human Resources & Strategic Plans John P. Righeimer Maverick Energy Contents Introduction……………………………………………………….pages 3-4 The Problem: HR is not aligned with strategic planning……….....pages 4-7 The Solution: Aligning HR with organizational strategy………....pages 7-12 Conclusion…………………………………………………………pages 12-13 References……………………………………………………….…page 14 John P. Righeimer Maverick Energy PH: 815-498-3855 2 Introduction Most organizations view the department of Human Resources (HR) as an administrative function and ignore the need and opportunity to align it with its strategic plans. In circumstances where HR is included in the strategy of an organizatio n, its alignment does not go beyond a forecasting function. The main reason that HR is not aligned with the strategy of an organization is that it does not hold a seat at the strategic planning table. The irony with HR being left of out of strategy planning is that by its nature, HR is about people, which is the core of an organization and its strategic plan. The HR function not aligned with an organization’s strategy. My hypothesis is that it is hard to measure HR success and thus it is considered “soft” and not important in the strategy development. What gets measured gets done and/or receives the authority to contribute to an organization’s strategy. HR is often viewed as the organization’s “cop”, ensuring that benefits are properly administered and hiring/firing is handled to the letter of the...
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...Implementation Methodology and Recommended Application - Executive Brief (April 2012) - Introduction Balanced Scorecard is an integrated, organization-wide management system that drives, in an aligned manner, the transformation, improvement and modernization efforts of all hierarchical levels towards the accomplishment of organization’s Strategy. For this reason, Balanced Scorecard is also known as a Strategy Execution system. More precisely, Balanced Scorecard represents a framework for aligned Strategic Planning and for the consistent management of the organizational and individual performance in the execution of the Strategic Plan. Furthermore, Balanced Scorecard is a communication tool that helps each employee better understand where the Strategy drives the organization, what the plan is for reaching that destination and what their departmental and individual measured contribution is to that convergent effort. With such understanding, the employees – whether directly involved in the planned Strategy Execution, or not – can also change and improve the way they perform their daily jobs through micro-decisions that are both convergent and complementary to the execution of organization’s Strategic Plan. BSC History Balanced Scorecard has been launched twenty years ago as a first set of principles for balanced strategic Objectives and Measures/KPIs setting and measurement. The “parents” of Balanced Scorecard are Dr. Robert S. Kaplan, Baker Foundation Professor at Harvard Business...
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...et al. 2006; Guest et al. 2003; Huang 2000). Lee, Lee and Wu (2010) quoted Mondy et al. (2002) on the boundary of HR strategies to include five key functions: staffing, human resource development, compensation and benefits, safety and health, and employee and labour relations. Based on Lee, Lee and Wu (2010)’s own study, which extended Mondy et al. (2002)’s HR strategies to include teamwork, HR planning, performance appraisal and employment security, they concluded that HR strategies do attribute to a company’s performances. The espousals of HR strategies are critical in motivating employees’ commitment towards corporate’s strategic objectives (Buller and McEvoy 2012). GM’s HR Director, Susan Maffat, commented on unclear HR strategy offers an indication of GM’s poor or ineffective/inefficient HR strategies. The following problems currently faced by GM are the manifestation of key HR issues due to deficient HR strategies: GM’s Problems and HR Issues 1. Greater workers’ loyalty towards unions A circumstantial evidence to this situation can be ascertain through Susan’s comment on how GM’s managers rescind from HR responsibilities which may have provided the union a chance to infiltrate the operations and take on the HR management of GM. This is an implication of...
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...Contents I. Project Description II. Strategic Alignment III. IT Portfolio Alignment IV. IT Architecture X. Benefits XI. Requirements XII. Cost Estimation XIII. Performance Measures Project Description An employee scheduling system is used to plan all the tasks allotted to the employees. All the employees are assigned assignments through this system and will allow the organization understand and calculate the performance of the employees. This system will sustain a complete log of the tasks assigned to personnel and in case there is any change in the development of the work then it will be automatically managed within the system. Strategic Alignment Employee scheduling system will help the organization to achieve its business strategic objectives and IT strategies. Since the employee scheduling system is directly connected with maintaining the schedules of the employiees, and one of the key business objectives is to reduce delivery times. Another business strategy is to improve the percentage of loaded miles, however without employee scheduling, this objective is not possible. Another crucial objective is to provide the customer accurate delivery times. Managing the task of the employee will solve the objective of the delivery time. Another objective is to provide the customers the best facilities and this can be done only when the employees of the business are managed in the finest manner. Moving to the IT strategies alignment; one of the IT strategies is to provide...
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...Strategic human resource management has been defined as ‘the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility’ (Hussain, 2010). It is for certain that when a company decides to change directions in it strategy the HRM practices needs to change to support the new strategy. In order to effectively gain competitive advantages though HRM practices; the HRM practices needs to change in three major areas: knowledge workers, employee empowerment, and teamwork. Knowledge workers are employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, pr a profession (Noe et al, 2009). Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development and customer service (Noe et al, 2009). Teamwork is the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service (Noe et al, 2009). Redmond Minerals gained a great competitive advantage by utilizing their understandings of how important the HRM practices are to it company. The company’s HRM practices allowed his company to maximize its productivity of the organization by optimizing the effectiveness of its employees. Technology/Internet Advances in computer-related technology have had a major impact on the use of information...
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...Compensation Defined The definition of compensation is generally accepted as: a form of payment (monetary or non-monetary) for work performed as required. And the text defines compensation as all forms of financial returns and tangible services and benefits employees receive as a part of an employment relationship. (Milkovich, age 677) This can be translated into an employee doing work to receive a form of payment from the employer. The payment can be a combination of pay, paid time off (or vacation time), benefits packages such as health insurance or life insurance, bonuses and other forms of compensation determined by the employer. Compensation is not given an exact definition within the text due to the varying definitions in regards to the different perspectives of compensation. There are many different points of perspective that can affect a person’s view of compensation. The text identifies five different perspectives: society; stockholders; managers; employees and; incentive and sorting effects of pay on employers’ behaviors. Each perspective brings a different view to the concept of compensation and the reward of being compensated. The value of compensation is different to each perspective and has a different meaning that is applied to being compensated. Key Concepts – The Pay Model The pay model within the text shows the three basic building blocks for the framework of a pay system. The three basic building blocks within the pay model are: the compensation objectives;...
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...Executive Seminars Executive Action Learning Seminars CEO Club Executive Courses International Institute of Management Executive Education Courses Harvard Balanced Scorecard Review Med Jones International Institute of Management iim-edu.org International Institute of Management (IIM) iim-edu.org IIM Open Courseware (OCW) Copyright International Institute of Management (www.iim-edu.org) This work is the intellectual property of the authors. Permission is granted for this material to be shared for personal and educational purposes. IIM also grants the rights to disseminate otherwise or to republish in full or in part, provided that a statement of the source referencing the author(s) and “International Institute of Management” appears on the reproduced materials. As courtesy, please provide us with a notice of use by contacting us at: IIM Open Courseware (OCW) International Institute of Management 10161 Park Run Dr. #100 Las Vegas, NV 89145 USA Email: contact_us(at)iim-edu.org International Institute of Management (IIM) iim-edu.org Strategy International Institute of Management iim-edu.org Harvard Balanced Scorecard (BSC) Strategy Alignment & Performance Measurement Tool International Institute of Management iim-edu.org Executive Challenge Business Strategy Alignment & Performance Control International Institute of Management iim-edu.org Strategy Execution • In the 1980s, less than 10% of the strategies were successfully implemented...
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