Premium Essay

Impact of Hr and Business Strategy Alignment on Job Performance and Employee Satisfaction

In: Business and Management

Submitted By suvash
Words 21202
Pages 85

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 Siemens has significant impact on job environment and insignificant impact on employee satisfaction. Moreover, it is found that there is a significant impact of alignment of Human Resource practices with the business strategies on job environment and Siemens job environment is satisfactory as analysis showed the employees are satisfied with job timings, location, workload, training...

Similar Documents

Premium Essay

Global Mining

...whereby the human resource (HR) related issues are identified through GM’s problems and a provision of 3 HR strategies targeting at 3 key HR issues. This paper also address the possible implementation challenges that GM may face so as to mitigate them. However, detailed implementation approaches of these strategies are beyond the scope of this paper. HR Strategies There are growing evidence of positive impact HR strategies have on organisational effectiveness and performance (Boselie, Dietz and Boon 2005; Combs 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......

Words: 2411 - Pages: 10

Premium Essay

Balanced Scorecard

...A Dissertation Report On “Putting HR on Balanced Scorecard” (A Case Study of Verizon) (SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT) (Approved by AICTE, Govt. of India) ACADEMIC SESSION (2008-10) Under the guidance of: Submitted by: Supervisor Name Your Name Lecturer (college name) Roll: - PGDM-08/012 College Address PREFACE There is a famous saying “The theory without practical is lame and practical without theory is blind.” Alignment of the Human Resource with the overall strategy of the company is a very big and toughest challenge for the company. Human resource is an important part of any business and managing them is an important task. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of College Name has with a modern system of practical training of repute and following management technique to the student as integral part of PGDM. ACKNOWLEDGEMENT “It is not possible to prepare a project report without the assistance & encouragement of other people. This one is certainly no exception.” On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the......

Words: 17507 - Pages: 71

Premium Essay

Linking Training with

...Journal of Public Administration and Governance ISSN 2161-7104 2011, Vol. 1, No. 2 Training and Development Strategy and Its Role in Organizational Performance Abdus Sattar Niazi (Corresponding Author) MS Scholar, Iqra University Islamabad Campus, Pakistan Ph: +92 302 8500 777, Email: Received: August 01, 2011 Accepted: August 11, 2011 DOI: 10.5296/jpag.v1i2.862 Abstract In the FMCG industry at global level, the business environment has changed with intense pressure on organizations, to become ‘Learning Organizations’ and stay ahead of their competitions by bringing innovation/reinvention in training and development strategy while emphasizing on planning, designing, implementing and evaluating the training programs. Carry out an analysis that the objective of training and development is to create learning organizations which ensure that employees through value addition can effectively perform their jobs, gain competitive advantage and seek self growth: this measurable performance resulting from good training and development, shall enhance organizational performance. Keywords: Training and Development, Strategy, FMCG, Organizational Performance 42 Journal of Public Administration and Governance ISSN 2161-7104 2011, Vol. 1, No. 2 1. Introduction The objectivity of training and development and its continued learning process has always been leverage with the FMCG industry and now it has become rather an over arching trend of...

Words: 4951 - Pages: 20

Premium Essay

Hr Role in Csr

...Consulting MAY 2009 CSR and HR Management Issue Brief and Roadmap 2 ISSUE BRIEF AND ROADMAP OBJECTIVE • To understand the foundational elements that need to be in place to foster a high performance CSR (corporate social responsibility) organization and develop a framework or roadmap for firms wishing to become a high performing CSR organization. AT A GLANCE • Human resource professionals have a key role to play to help a company achieve its CSR objectives. Employee involvement is a critical success factor for CSR performance. Human resource managers have the tools and the opportunity to leverage employee commitment to, and engagement in, the firm’s CSR strategy. • High performing CSR organizations foster a culture of CSR and fully integrate CSR throughout their operations, rewarding and incentivizing CSR decisions and initiatives. • Employees prefer to work for organizations aligned with their values; thus, incorporating CSR into the employee brand can enhance recruitment and retention, particularly in tight labour markets. • CSR can be applied to the HR toolkit, resulting in a roadmap or pathway for human resource practitioners to follow who wish to contribute to the achievement of their organization’s sustainability and business aspirations, thereby improving social and environmental conditions locally and globally. CSR and HR Management Issue Brief and Roadmap 3 CSR and HR Management Issue Brief and Roadmap 4 CSR and HR Management Issue Brief......

Words: 9639 - Pages: 39

Premium Essay

Organisational Strategy, Organisational Culture and Hrm

...benefits from, improved working conditions and motivation can be seen as the origins of organisational culture and motivation theory. Just as each theory reflected the influencing environment of its time, both internal and external, the political, social, economic and other changes of the past 20 or so years, has evolved people management to where human resources management (HRM) is today. Over this period, the global and local business environment has prospered and suffered, industry and organisations have grown and retrenched, and against these backdrops, ideas on what approach best yields superior employee/organisational performance has evolved, with HRM the widely supported approach in today’s business environment. The popularity of HRM rose from US theorists in the 1980’s such as Storey, whose “ideal type” of HRM pinpointed 27 differences (Appendixes 1) between the personnel management role, “essentially an administrative support function…perceived as being remote from business performance issues” (Storey, 2007, cited in Beardwell and Claydon, 2010, p. 21) to encompass, “all management decisions and action that affect the nature of the relationship between the organisation and its employees”. (Beer et al, 1984, cited in Armstrong, 2009) The argument to support this approach has been...

Words: 3393 - Pages: 14

Premium Essay

Human Resources Management (Hrm)

...different job descriptions. The main purpose for Human resource management is managing people within an organization with a very thorough and structured process. HRM, complex as it is, is constantly evolving with the ever changing times every businesses faces. “The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources,” according to reference to business. Within this paper many areas of Human Resource management such as the EEO and affirmative action, the planning and recruitment process, the selection and development process, the compensation and benefits process, the safety, health, and employee and labor relations will be examined. Every business big or small should have long and short term goals and a strategic plan to achieve those goals in order to increase the market value of that organization. When you speak of HRM, you speak of people, every business has to have people, and having a well-developed HRM department will allow the business to gain their employment, develop their skills, and keep them motivated and happy while working for the organization. Listed below are the major everyday strategic HRM tasks; •planning and alignment •staffing •preparing compensation offers •orchestrating cultural change Let’s begin with HR planning. Strategic HR planning is a very important part of strategic HR......

Words: 2336 - Pages: 10

Premium Essay

Management of Human Resources

...Management of Human Resources  HR is the key to organizational success or failure. HR policies and practices must be tired to overall organizational strategy. Discuss with examples, how the organization can develop competitive advantage through superior Human Resource Management.  In order to ensure organizational success, there are various things to keep in mind. Firstly we need to define the organization strategy. What is an organizational strategy? Kay states that strategy is about the achievement of competitive advantage which, in his view, is based upon an organizational identifying, developing and applying to relevant markets its distinctive capabilities, which are most often derived from the unique character of its relationships with its suppliers, customers or employees.’ The strategy would include aspects such as cost minimization which would involve optimum utilization of resources at minimum possible cost, this a traditional approach, on the other hand an organization could adopt profit maximization strategy which would involve taking risks and thus a more unconventional approach. Typically once the strategy is prepared the focus is on accomplishing these objectives. But how can this be done?  Do you remember the first day at work? It’s a mixed feeling of nervousness and excitement. You get all geared up to commence our first assignment and go to the managers cabin and get all the required details of the assignment. But what is the most crucial thing in......

Words: 1956 - Pages: 8

Free Essay

Compensation Notes

...relative to what other companies inside and outside of the steel industry pay. But Nucor also has much higher productivity than is typical in the steel industry. Wall Street financial services firms and banks used incentive plans that rewarded people for developing “innovative” new financial investment vehicles and for taking risks to earn themselves and their firms a lot of money. Troubled Asset Relief Program (TARP), which included restrictions on executive pay designed to discourage executives from taking “unnecessary and exces-sive risks.” In an opinion piece in The Wall Street Journal, entitled “How Business Schools Have Failed Business,” the former director of corporate finance policy at the United States Treasury wrote that “misaligned incentive programs are at the core of what brought our financial system to its knees.” 7 He says that we “should ask how many of the business schools attended by America’s CEOs and directors educate their students about the best way to design managerial compensation systems.” How people are paid affects their behaviors at work, which affect an organization’s success. 8 For most employers, compensation is a major part of total cost, and often it is the single largest part of operating cost. These two facts together mean that well- designed compensation systems can help an organization achieve and sustain...

Words: 8809 - Pages: 36

Premium Essay

Human Resources

... Question 1: 1 Question 2 4 Question 2.1 4 Question 2.2 8 Question 3 12 Question 3.1 12 Question 3.2 15 Bibliography 21 List of Figures Figure 1: Model of effective Performance Management Process 5 Figure 2: Steps and Responsibilities in the Career Management Process 9 Figure 3: Strategy - decisions about competition 15 List of Tables Table 1: HR Practices utilized by Marks & Spencer to address strategic needs 17 Question 1: In an industry where competition is intense, developing staff has probably never been so important. By training and developing its staff, discuss how Marks & Spencer is in a position to develop a competitive advantage over its competitors. Introduction A competitive advantage is a superiority that an organization can gain over its competitors by providing the same value at lower prices or charging higher prices for providing greater value through differentiation, Business Dictionary (2015). Grobler et al (2011:9) noted that in the past the focus of Human Resources (HR) was an administrative one (traditional HR) with focus on personnel issues, more recently HR has been recognized as being contributory to the organization’s overall strategy. HR is therefore an integral part of achieving competitive advantage. One such HR practice that enables competitive advantage is in training and development of its staff. Noe et al (2012:98) noted that in the knowledge economy it is the organization’s intangible......

Words: 5098 - Pages: 21

Premium Essay

Compensation Test

...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......

Words: 3251 - Pages: 14

Premium Essay

Interclean–Envirotech Merger Scenario Memo

...the last year. From the results of the HR interviews, we know that the company employees are very diverse. Explain how a manager’s behavior can affect the productivity of his or her workers. In the case described, CEO, David Spencer communicated his intention of a major upcoming change through a companywide email communication. Later HR Vice President, Janet Durham, started working with her HR Team to come up with a plan that is suitable for training the employees and sales persons. After Janet’s email the HR team is going to start thinking about the training strategy. And later VP of Marketing, Tom Jennings, informed that he overheard the sales reps that he is concerned about. Later on February 7th, 2005, David Spencer had the executive meeting to get their alignment. This sequence of scenario shows the CEO communicated premature information to entire employee community entirely as a surprise. He does not have a training plan in place before communicating. He did not communicate this plan with the company executives before announcing the plan. This resulted in lowering employee morale and productivity. Employee motivation is a continuing challenge at work. Particularly in work environments that don’t emphasize employee satisfaction as part of an embraced and supported overall business strategy, supervisors and managers walk a tough road. In my company there was a recent company wise change that was rolled out, that potentially impact...

Words: 499 - Pages: 2

Premium Essay

The New Business of Business Leaders: Talent Management

...The New Business of Business Leaders: Talent Management The New Business of Business Leaders: Talent Management Introduction We live in an age when people are the business differentiators that power innovation in design, IT, supply chain, process, training, networking, communication, content, and everything else. People make the difference, and talent management is the business strategy to maximize that difference. Talent intelligence provides the information you need to truly know who is driving your organizational success and how to unlock the power of your people. Who provides the key to unlock that power? You. You are the line-of-business leader who hires the talent, makes the talent productive, develops the talent, moves the talent around, pays the talent, and manages performance. As a business manager, you are the one who makes the talent decisions every day that lead to business success. Over the course of this five-part white paper series, the role of business leaders in driving talent management functions is explored, with a particular focus on the tools and approaches that will make them successful. Other papers will address hiring and onboarding, learning and development, retaining and growing talent, and performance management and compensation. This paper addresses talent management and the importance of it to business leaders. 1 The New Business of Business Leaders: Talent Management Talent Practices That Fuel Business Success In......

Words: 1814 - Pages: 8

Premium Essay

Problem Solution: Riordan Manufacturing

...that sales will improve. Each sales team consists of a sales person, product engineer, and customer service representative (Apollo Group, Inc., 2004). Riordan's managers have noticed that there is a decline in morale and work ethic. An annual employee survey indicated that employees are dissatisfied with the current reward system as well as benefits and overall satisfaction. The company is concerned that dissatisfied employees will find employment elsewhere. Riordan's President does not feel comfortable with changing the compensation system and the company has allocated $50,000 to hire an independent human resource (HR) consultant to analysis the issues in the employee survey. The HR consultant presented a proposal to redesign Riordan Manufacturing’s compensation and reward system which suggested a salary survey of the company's positions be conducted to determine current market positioning and adjust the salaries based on the results of the survey. The proposal also suggested developing an incentive system for sales and research and development based on the company's change to a CRM. Additionally, the proposal recommended a performance appraisal process be developed to ensure clearer alignment between business strategy and performance rewards (Apollo Group, Inc., 2004). Situation...

Words: 2667 - Pages: 11

Premium Essay

Case Study

...Akhtar, Syed M. Azeem, Ghullam M. Mir. Impact of HRM practices on perceived organizational performance. International Journal of Academic Research Part B; 2014; 6(5), 23-30. DOI: 10.7813/2075-4124.2014/6-5/B.3 Library of Congress Classification: L7-991 IMPACT OF HRM PRACTICES ON PERCEIVED ORGANIZATIONAL PERFORMANCE 1 2 Nadeem Akhtar , Syed Muhammad Azeem , Ghullam Mustafa Mir 3 1,2 Yanbu University College (SAUDI ARABIA) 3 University of Gujrat (PAKISTAN) Emails:,, DOI: 10.7813/2075-4124.2014/6-5/B.3 Received: 16 Feb, 2014 Accepted: 05 Jul, 2014 ABSTRACT Present study examines the role of HRM practices in perceived organizational performance. A questionnaire consisting 50 items is used to collect the data from higher education institutions in Pakistan. The results revealed that HRM practices have significant relationship with perceived organizational performance. Promotion is not found significant as a predictor of commitment as HR outcome. Regression analyses show that promotion and empowerment are significant predictors of commitment. Empowerment was found to be a significant predictor of perceived organizational performance. Key words: Empowerment, Commitment, Perceived organization performance, Promotion 1. INTRODUCTION Earlier studies on human resource management focused on individual impact of HRM practices on firm’s performance, however in recent years researchers......

Words: 3018 - Pages: 13

Premium Essay

Mmpa530-Problem Solution: Riordan Manufacturing

...a set of alternative solutions. In conclusion, the paper recommends the paramount alternatives to implement in order for Riordan Manufacturing to be the global industry leader in plastics production. Situation Analysis Issue and Opportunity Identification Several challenges Riordan Manufacturing must be overcome in order to accomplish the company's organizational goals. One challenge is overcoming employee job dissatisfaction, which declined as part of Riordan's restructuring process. Another challenge is increasing employee retention, which declined due to less than optimal working conditions and minimal personal opportunities to develop and advance. Finally, Riordan Manufacturing needs to overhaul the current flawed reward system into an effective rewards system that aligns the organization's strategy with compensation and incentive packages. Moreover is employee development and training. Riordan has done a small amount of promoting or developing their employees in past years and a key strategic advantage for organizations is to make available the means for employee growth and development. Hence, training and development not only helps to attract top performers but will also provide incentive for retention (Dreher & Dougherty, 2001). Therefore, in efforts for Riordan to realize and gain strategic advantage in the area of human capital, a superior human resource management system must be in...

Words: 5690 - Pages: 23