Analyzing the Efficiency of Key Practices in Strategic Human Resource

Implementation Process and its Alignment with Business Goals.

-

A systematic effort of HR divisions role in evolving to be a Strategic Business Partner.

Manjushree Gupta
Abstract
HR professionals have finally arrived at the strategy-creating table. This is good, but it is time
for HR as a profession to move past this objective. HR professionals have a unique set of
perspectives and knowledge to bring to the strategy creation table, but even more important is
what they could bring to the strategy-implementation table. Although HR professionals, often
defensive about their comparative worth, need not apologize for not being financial,
engineering, marketing, or sales geniuses, now HR managers are to be considered as a
Strategic assets to the organization they canand should bestrategy implementation
geniuses to demonstrate HRs contribution to firms financial success.

Importance of strategic alignment in HR.

Changes in the business environment brought about by globalization and the development of new
technology have made it mandatory for organizations to involve HRM in the Strategic Decision
Making Process. Changes in Market Conditions, economic conditions, labor markets, industrial
structure, and international competition have all highlighted the importance to the management of
human resources too for gaining the competitive advantage.

Strategic human resource management is an approach which defines how the organisations
goals will be achieved through people and culture, by means of HR strategies and integrated
HR policies and practices.
Strategic HR organisations work with executive leaders to define the operational measures for
the company. By closely monitoring performance, such as completed sales, customer
satisfaction rates and product defect occurrences, HR professionals help company leaders
pinpoint trends, develop risk mitigation plans and ensure readiness to avert a crisis in staffing
or resource deployment.
Human Resource Professionals in various organisations adhere to several management
Systems/Processes/Tools/Techniques in order implement strategic HRM in their departments.

In order to be a strategic partner, HR department ensures that the company has the required personnel
to execute the company's mission. It performs several strategic functions to help executive leaders
communicate the company's core values to the entire workforce. This work includes establishing
ethical standards and training personnel on the type of business conduct necessary to adhere to all
local, state and federal regulations and its alignment of corporate values in the HRM strategic plan
should be a major objective of the plan. In addition, the HRM strategic plan should be aligned with the
mission and objectives of the organisation as a whole.

In addition, once the HR department determines what is needed, communicating a plan can gain
positive feedback that ensures the plan is aligned with the business objectives.
Organisations often times do not have the money or the inclination to research the systems and tools
and find budget-friendly options for implementation. People are sometimes nervous about new
technology. However, the best organizations are those that embrace technology and find the right
technology uses for their businesses. There are thousands of HRM software options that can make the
SHRM processes faster, easier, and more effective. Good strategic plans address this aspect. The
majority of management teams do a swell job of dovetailing their business processes with the newlyestablished strategy, and the benefits of cutting-edge t technology typically fall into place but to combine the
social system and strategy is far too often a rocky one. The human resource is fickle and complex, difficult to
understand and, as a consequence, difficult to successfully manage. By working to improve human interactions,
HR will, by extension, be working to improve the actual execution and use of the more straightforward
technology and business processes

Put simply: the best technology money can buy and that paragon of a business plan are
meaningless without the right people to operate them. HR professionals, therefore, become
indispensable in their roles of mediating social issues and building up a support force to help drive the
strategy implementation.
It is impossible to plan for SHRM if one does not know the values, vision missions and critical
corporate goals of an organisation, organizational life cycle, business processes. We may have learned
about these in marketing or other business classes, and this applies to HRM, too. As we have already
addressed that, it is imperative for the HR manager to align department objectives with organisational
objectives.

Literary review
The field of strategic human resources management (SHRM) has enjoyed a remarkable ascendancy
during the past two decades, as both an academic literature and focus of management practice. The
parallel growth in both the research literature and interest among practicing managers is a notable
departure from the more common experience, where managers are either unaware or simply
uninterested in scholarly developments in our field. As the field of HR strategy begins to mature, we
believe that it is time to take stock of where it stands as both a field of inquiry and management
practice.(Becker., Huslid,2006).
Today, the most pressing theoretical challenge facing SHRM, a useful articulation of the
Black box that describes the strategic logic between a firms HR architecture and its subsequent
performance. How does the logic of this black box explain HRs contribution to a firms sustained
competitive advantage? Following recent work in the strategy literature, we call for a new emphasis on
strategy implementation as the focal mediating construct in SHRM. Specifically, we argue that it is the
fit between the HR architecture and the strategic capabilities and business processes that implement
strategy that is the basis of HRs contribution to competitive advantage. This will require an increasing
level of differentiation of the HR architecture (Lepak & Snell, 1999), both within the firm and
between firms.
Being strategic means more than a systems focus or even financial performance. Strategy is
about building sustainable competitive advantage that in turn creates above-average financial

performance. The simplest depiction of the SHRM model is a relationship between a firms HR
architecture and firm performance. The HR architecture is composed of the systems, practices,
competencies, and employee performance behaviors that reflect the development and management
of the firms strategic human capital. Above-average firm performance associated with the HR
architecture reflects the quasi rents associated with that strategic resource.
With a few exceptions (Becker & Huselid, 1998; Huselid, Beatty, & Becker, 2005; Huselid,
Becker, & Beatty, 2005; Wright et al.), there has been little effort to extend SHRM theory in a way
that formally integrates the mechanism through which the HR architecture actually influences firm
performance. The heavy focus on the character of the HR architecture is the natural comfort zone of
HR scholars. Going forward, however, we need more theoretical work on the black box between the
HR architecture and firm performance,
The resource-based view (RBV) of an organisation has long provided a core theoretical rationale for
HRs potential role as a strategic asset in the firm (Wright & McMahan, 1992). The notion that
organisations can build competitive advantage, and as a result above-average financial performance,
based on valuable and inimitable internal resources provided by the RBV, offers an appealing rationale
for HRs strategic importance.
The link between the HR architecture and most RBV concepts remains too abstract and too indirect to
guide either empirical work on the black box in SHRM or management practice. However, recent
attention to the independent influence of implementation in the strategy literature offers an
opportunity to make the theoretical effort of HR firm performance link more concrete.
Following emerging trends in various oraganisations to be the hypothesis of my strategy
literature, I would like argue that SHRM theory should be extended to focus on effective strategy
implementation as the key mediating variable between the HR architecture and firm performance. That
focus on strategy implementation is operationalized and made concrete by a focus on strategic
capabilities and activity systems reflected in strategic business processes with should constitute the
organisations HR Strategic Architecuture. It is s strategic because not all business processes will
have equal value. Strategic value requires that these business processes are a source, perhaps the
source, of the value customers derive from the firms products or services. Whether this value
proposition can rise to the level of sustainable competitive advantage is seen in my future research
work. My aim in this research work will also be to research and analyze, the strategic impact of the
HR architecture is directly related to the strategic value created by these business processes.
HRM managers cannot deal with change quickly if they are not able to predict changes. As a
result, the HRM manager should know what upcoming challenges may be faced to make plans to deal
with those challenges better when they come along. This makes the strategic plan and HRM plan much
more usable.A good HRM strategic plan acknowledges and addresses the use of software in HRM
operations. . Thinkstock.
Even if a company does not have an HR department, HRM strategic plans and HR plans should
still be developed by management. By developing and monitoring these plans, the organisation can
ensure the right processes are implemented to meet the ever-changing needs of the organisation. The
strategic plan looks at the organization as a whole, the HRM strategic plan looks at the department as a
whole, and the HR plan addresses specific issues in the human resource department. Many

organisations and departments will use a strategic planning tool that identifies strengths, weaknesses,
opportunities, and threats (SWOT analysis) to determine some of the issues they are facing. Once this
analysis is performed for the business, HR can align itself with the needs of the business by
understanding the business strategy.
Theres an imminent requirement that Strategic HR professionals use High End management tools
and resources to benchmark HR Systems against standards. Since 1980s there has been an increasing
emphasis on the importance of HR measurement. HR measures should be impact rather that activity
oriented, forward looking than backward should focus on entire HR System (Yeung and berman
(1997)).

Challenges and Inconsistencies with the SHRM

implementation process

Lack of experience and understanding among HR Managers with regards business goals,
agenda, corporate strategy and also their translation into HR goals. Resulting in incoherent
goals, policies and opinions amongst HR Managers which can obstruct the cross-system
cooperation for alignment as required by the strategy.
Age old rigid processes and inadequate capacity within individual work units of HR
departments for the change needed, due to which Managers are failing to direct the efforts of
their work units towards conforming to the new agenda /strategy.
Insufficient Competencies among the HR manager as to how Strategy Alignment should
happen or as to how to implement the same with in ones organization.
Most of the tools/techniques and systems involved in implementing the strategic frameworks
are outsourced to third party consultancy agencies who have very less knowledge about an
organisations HR dynamics.
A clear technique of HR measurements to assess its progress towards the goals is either
deficient or entirely absent in most of the organisations in India which makes it is impossible to
recognize the changes happening post implementation.

Research objective

To understand the process of how multiple organizations translate their vision/ mission to their
key business goals.
To understand how various business goals are broken down to individual HR Related Goals/
Strategies?
To know the The HR Architecture and The Strategic Action Plan and its various stages
designed by the organisations to implement Strategic Alignment Process and implications of
the same within the organisation.
To assess the efficiencies of the Strategic HR Architechture (systems, practices,
competencies) of the organisations defined with respect to achieving their intended goals.
To gain in-depth understanding of various Systems, Tools and Techniques used by
organisations to realize the implementation process. (E.g. Competency Framework
implementation, HR Score Card, Swot Analysis, Six Sigma implementation etc.).

To gain knowledge of key impact played by strategic implementations into individual inter-HR
disciplines like (Recruitment, Learning and development, compensation-Benefits, Performance
Management, Succession management, Engagement and Retention).

Research design and model

I propose a 5p model identifies Key constituents of the HR Architecture of an organisation that must
be aligned with the Strategic needs of the Business to gain a competitive advantage.

5p Model of HR Architecture

HR Philosophy: refers to Org attitude

HR Policies: New Policies framed referring to guidelines of newly formed HR Strategies.
HR Practices: Various Practices followed to includes roles that individuals assume in an Org.
HR Programs: Various Programs used in order to Coordinated HR efforts to sustain Strategic
Implementation
HR Processes: Various Process/Tools/Techniques Involved in Identification, formulation and
implementation of Strategic HR activity.
Below models help us get a picture of a successful transition in to Strategic HRM in terms the
relationship between HR and Strategy:

Translate Business /Corporat

Goals to HR Related Goals.
Frame HR Policies, Identify
Key HR Activities.

Implementation of strategic
tools & process.

Assessment of newly
implemented Strategic
HRM processes.

Relate the outcomes Of HR

process backwho have
My target will be to select 5 of the Below mentioned list of Indian Organisations
Goals
successfully implemented SHRM and are efficiently involved in the Business/Corporate
process and practice of
Strategic Alignment (courtesy SHRM India):
1. Aegis Limited
2. Procter and Gamble
3. School of Business Management ,
NMIMS.
4. Citi Group

5. Hewlett and Packard

6. Uni-lever limited
7. Tata Group
8. Wipro Technologies
9. Genpact India
10. GE Healthcare India

11. Expected Findings

Correlation between Corporate strategy and derived HR Strategy.

Correlation between HR Goals/Objectives and HR KPI as well as the Targets set.
Identifying The Strategic HR Plan and key Processes of the organization defined to realize the
implementation of Strategic HRM.
Analyzing the efficiency of key HR processes in reaching the desired goals and targets.
Analyzing the efficiency of HR departmental capability in aligning itself to the Business
/Corporate Strategy.

12. Agenda for future Research

13. The challenge for HR professionals today is living up to the high expectations that
come with a seat at the table expectations to drive business results through people and
culture, said Bersins Harris.
14. With agenda of highlighting todays Organisational Best Practices The objective of this
particular body of research is to reveal the keys to driving HR Strategic impact. With an
aim to help HR Professionals to prioritize and align their HR strategies with the business to
deliver the greatest return.
15.
16.
17.
18.

19.
20.About me
21.
22.
23. A Talent Management Head with unique combination of line management and generalist
experiences, including HR leadership for cross-functional business units, a global corporate
function, and sales organisations.
24. I am Passionate about Coaching and developing HR talent, building team effectiveness,
capability, and culture to drive business results, as well as.Professional Expertise in
organization design, talent strategy development, succession planning, executive coaching,
organisation effectiveness and assessment, leadership team effectiveness, and employee
relations.

25. My 7 years of Human Resources experience includes directing and managing multiple
Human Resource teams that provide HR services to attract and retain a competitive
workforce, increase productivity, and achieve operational excellence for the organisation.
Areas of expertise also include executing on large scale organisational change initiatives,
and implementing talent and performance strategies to optimally support the strategic
business priorities of the organisation.
26. Current Professional Responsibilities include developing strategy and integration across
critical work streams including processes, service delivery, organisational design,
information management and reporting, and service and technology selection for the core
Global services.
27. My research interest spans from pure statistics including Sample Survey, Small Area
Estimation, Statistical Modeling, and Data Mining. Currently undergoing training in HR
analytics And SAP HCM Module
28.
29.
30.
31.
32.

33.
34.
35.

MANJUSHREE GUPTA
manjushreegupta@gmail.com
Contact No. 9901540838