1. (28) HR FUTURE 01.2009 ON THE COVER Feature HR FUTURE 01.2009 (29)
EXECUTION
both the business strategy and individuals. COMPETENCIES HR EXECUTIVES
the HR strategy to everyone, and REQUIRE
to ensure that these strategic < Every human resources strategic HR should have the competence to
objectives are understood. objective should be used as a basis perform and execute the business and
OF HR STRATEGY
for formulating and drawing up HR HR strategy. Noe et al (2006: 82 - 83)
It is also important to ensure key performance areas, with clear
state that, in future, HR will need
that regular feedback is given to time lines.
Part TWO everyone on the progress made
four basic competencies to become
partners in the strategic management
towards the achievement of the Included in this process should be
FORMULATE AND ALIGN YOUR HR AND firm’s strategic objective. This could the HR benchmarks. This may be process. They will need business
be through quarterly or half yearly in the form of the business or HR competence, “professional-technical
BUSINESS STRATEGIES. jerry molefe communication notes. balanced scorecard, the service knowledge” of state-of-the-art HRM
level agreements, HR priorities and practices in areas such as staffing,
< Review the HR model and design it individual performance scorecards. development, rewards, organisation
in a way that will guarantee The measures could be of a design and communication, skill in
delivery of the strategy. Most of the quantitative and qualitative nature. management of change processes and,
HR models are synonymous with Quantitative measures would include lastly, “integration competence” to
o
Dave Ulrich’s. A model is designed measures such as value added integrate the three other competencies.
to enable delivery and does not employee, average cost per person, Ulrich (2008: 37) has also
necessarily have to be adopted. It revenue per employee, personnel cost developed a model based on a recent
Once the business strategic FIGURE 1 can be adapted. per employee, number of employees survey and states that HR will need
objectives are understood, SIMPLE MATRIX STRUCTURE OF ALIGNING BUSINESS AND HR STRATEGIC OBJECTIVES per job group, labour turnover and to have a credible activist to build
the next step would be < Evaluate your HR structure and employee tenure. Qualitative measures relationships, an operational executor
to formulate the HR HR DISCIPLINES RECRUITMENT HRD PM P&P ER R&B capacity to deliver the strategic could include employee skills level, and business ally for processes
strategies. The simple and objectives. The structure, systems, motivation surveys, employee
most practical way of doing this is to HR STRATEGIES and systems, and a talent manager,
policies and procedures, and all the satisfaction surveys and a training culture and change steward and
create a matrix structure that indicates RETENTION human resources practices should utilisation index.
relevant business strategic objectives as strategy architect for organisational
CRM be aimed at achieving the strategic capabilities.
well as the traditional HR disciplines. objective as opposed to a structure < It is critical that performance
DIVERSITY HR must build the right capacity
An example of the matrix structure is that is designed for the activities should be managed on an ongoing
indicated in figure 1. TRANSFORMATION and competence level to be able to
within the HR department. basis. This could be done through
TQM
formulate and execute the business
Most HR departments are quarterly or half yearly reviews.
HR Disciplines: Recruitment, human structured to handle the traditional Detailed and accurate measures and HR strategic objectives.
resources development (HRD), human resources role and function. would assist in tracking the
performance management (PM), Some of these HR structures are progress made on the achievement CONCLUSION
policies and procedures (P&P), with recruitment. An example would through HR. stable and static to the extent of the strategic objectives. The formulation and alignment of HR
employee relations (ER) remuneration be that if a wrong placement is made Depending on the environment that even when the business strategies with the business strategy
and benefits (R&B) in the first place, a high likelihood and the nature of the business, line strategy and HR strategy have been < Reward strategies should be aimed appears to be a complex process. This
HR Strategies: Retention strategies, exists that the individual would managers should also be involved in reviewed, and changed completely, at ensuring that good performance process can be fun if one follows the
customer relationship management leave the organisation voluntarily or the process of crafting the HR strategy. the HR structure remains the same. achievers are rewarded and simplified process outlined above. The
(CRM), diversity, transformation, total otherwise. This would allow for the integration recognised for their efforts. most important is the execution of the
quality management (TQM) The strategy on retention would and alignment of the business and the < It is strongly recommended that a strategy and this requires the right HR
Strategies may be formulated within be formulated in such a way that all HR strategies. separate HR planning session Non-performance should also be model, structure and competencies.
the HR disciplines. A strategy could the different HR disciplines are aimed should be held with everyone in addressed. Most organisations fall into HR leaders should have the knowledge
be formulated only on the recruitment at achieving the strategic objective STRATEGY EXECUTION PROCESS HR from the most senior person the trap of linking the performance and understanding of their business
function of the firm. How does the of retaining the best talent, that is, < Ensure the people item is on to the lowest level within the HR management processes with the salary and the environment in which they
firm differentiate itself in terms of HRD, PM, P& P, ER, R & B , human senior management’s agenda. department. This session should review processes and leave it as such. operate. It is crucial that the HR leader
recruitment, selection and placement resources information systems and Board members and executives be aimed at ensuring that all the It is critical that non-performance is has the competence and ability to
practices in order to attract the best so on. The same process would be tend to be interested in the bottom HR people understand the business addressed. integrate all the processes and ensure
talent? followed when dealing with other line and always refer to the people objective and strategy as well as that all the activities in HR are aimed
One of the key considerations business strategic objectives such as issues as the “softer” issues of the the human resources strategy. < Deal with non performance. There at the achievement of the business
in talent management is retention. CRM, diversity, transformation and business. Most of the discussions is an ongoing argument and debate goals. (HRf)
Retention could be identified as one TQM . centre around the financial, This participation process could also that performance management and
of the business’s strategic objectives. This process would also assist HR marketing and operational issues of guarantee buy-in from the HR staff salary review processes should be References
A retention strategy would cut in moving the focus away from the the business. The HR leader must and it could be a motivating factor viewed as two separate processes. Ulrich, D. and Brockbank, W. Johnson,
across all the HR disciplines starting HR activities to the outcomes of those influence the leadership of the in that people would feel valued that However, the same argument can D. Sadnholtz, K. Younger, J. (2008)
with recruitment and ending with activities - to assist the business to be organisation. their input is recognised. The process be held that the salary review HR Competencies: mastery at the
separations. A manager was recently more effective and efficient in meeting could also assist when drawing up processes will not address the intersection of people and business.
surprised to hear that retention starts the strategic objectives of the business < It is important to communicate HR key performance areas (KPAs) for performance issues. Alexandria. The RBL Institite.
Jerry Molefe is the HR Executive at Werksmans Attorneys (www.werksmans.com).