Aligning HR and Organizational Strategies

1. Core Values

Core values are the foundation of an organization. They define what the company stands for and shape its culture and identity. These values are the guiding principles that influence every decision and action within the organization.

Deciding an organization’s core values is a thoughtful process that involves input from various stakeholders, including leadership, employees, and sometimes even customers. This collaborative approach ensures that the values truly reflect the beliefs and priorities of the entire organization. The process typically begins with the leadership team reflecting on the organization’s mission, vision, and long-term goals. They consider what principles are essential to achieving these goals and what values they want the organization to embody.

step by step

1. Input from various stakeholders is crucial to ensure the core values resonate throughout the organization. This includes employees at all levels, customers, and sometimes even suppliers or partners.
   
   

   EXAMPLE

   Surveys, focus groups, and workshops can be effective ways to gather diverse perspectives.

   
   

2. As feedback is collected, common themes and values begin to emerge. These themes are analyzed to identify which values are most important and relevant to the organization. This step helps ensure that the core values are not just top-down directives but are genuinely reflective of the entire organization.
   
   

   EXAMPLE

   Content analysis of survey responses can help identify recurring themes and values across stakeholder input.

   
   

3. Based on the identified themes, a draft of the core values is created. This draft is often reviewed and refined through several iterations, incorporating feedback from various stakeholders to ensure clarity and alignment. Once a refined set of core values is ready, it is typically presented to the leadership team for validation and approval. This step ensures that the values are aligned with the organization’s strategic direction and have the full support of its leaders.
   
   
4. After approval, the core values are communicated to the entire organization. This can be done through meetings, internal communications, and training sessions. It’s important that everyone understands and embraces these values. Integration into daily operations, performance evaluations, and decision-making processes is essential to make the values a living part of the organizational culture. When it comes to strategic planning, core values serve as a compass. They ensure that the strategies developed are aligned with the organization’s fundamental beliefs.
   
   

   EXAMPLE

   If a company prioritizes innovation, its strategic plan might focus on fostering creativity, investing in new technologies, and staying ahead of industry trends. Conversely, if customer satisfaction is a core value, the strategic plan might emphasize enhancing customer service, improving product quality, and building strong relationships with clients.

HR plays a pivotal role in aligning the workforce with these core values. The HR strategy should reflect and reinforce the organization’s values to create a cohesive and motivated team.

EXAMPLE

If teamwork is a core value, the HR strategy should promote a collaborative environment. This could involve organizing team-building activities, encouraging open communication, and recognizing team achievements.

EXAMPLE

If integrity is a core value, the HR strategy should emphasize ethical behavior, transparency, and accountability. This might include implementing clear policies on ethical conduct, providing training on ethical decision-making, and ensuring mechanisms are in place for reporting and addressing unethical behavior.

Aligning HR strategy with core values ensures that the organization’s actions are consistent with its beliefs. It helps create a unified and motivated workforce that is committed to achieving the company’s goals. Having clear core values provides direction and clarity, making it easier for everyone to work towards a common purpose.

terms to know

Core Values

The fundamental beliefs that guide an organization’s actions and decisions

Stakeholders

Individuals or groups affected by or involved in an organization’s activities.

Mission

A statement that defines an organization’s purpose and primary objectives.

Vision

A forward-looking statement that describes what an organization aims to achieve in the future.

2. Aligning Human Resources with Organizational Strategy

HR strategic initiatives must align with overall company goals. Understanding the company’s strategic plan is essential. This plan outlines the company’s direction and the steps to get there. Being a leader during the strategic planning process and aligning HR strategic goals with the organization’s objectives is one way HR is transformed from an administrative function into a strategic partner.

EXAMPLE

When a company aims to expand its market share by launching a new product line, HR supports this by preparing and aligning the workforce with this objective.

Let’s explore four key areas where HR contributes significantly: talent management, interdepartmental collaboration, performance evaluation, and culture shaping.

1. Talent Management: HR plays a crucial role in this journey by ensuring the right people are in the right roles and equipped with the necessary skills and motivation.
   
   

   EXAMPLE

   If the goal is to become a leader in innovation, HR might focus on recruiting creative thinkers and providing training that fosters innovation.



2. Interdepartmental Collaboration: Maintaining constant dialogue with other departments helps HR understand their needs and challenges, which aids in developing relevant initiatives that support the company’s goals.
   
   

   EXAMPLE

   If the marketing department is launching a new campaign, HR might need to hire additional staff or provide training to current employees to support this effort.



3. Performance Evaluation: Designing performance evaluation systems that reflect the company’s strategic objectives is another critical aspect. Setting goals for employees that align with the company’s goals ensures everyone is working towards the same targets.
   
   

   EXAMPLE

   If the focus is on customer satisfaction, employee performance metrics should include customer service targets.



4. Culture Shaping: Shaping the company culture to reflect core values and support its mission is also vital.
   
   

   EXAMPLE

   If teamwork is a core value, HR should promote activities and policies that encourage collaboration, such as team-building exercises, open office layouts, or collaborative projects.

The following table summarizes both the strategic planning process and the implications for human resource strategy (Bawany, 2015).

By proactively identifying and addressing workforce needs, HR can drive initiatives that directly support business goals, such as talent acquisition for key projects or developing training programs that enhance employee skills in line with the company’s future direction. This strategic alignment ensures that HR is not just managing personnel but actively contributing to the company’s success, fostering a culture, and positioning HR as an integral part of the business strategy.

make the connection

In the Touchstone, you will be asked to assess the HR practices for the organization. It is important to understand the strategic direction of the company along with the core values so that HR initiatives support the organization's mission and vision.

REFERENCES

Bawany, Sattar. (2015, January 6). "The Role and Future of HR: Today's Challenges & Tomorrow's Vision." HR.com. https://www.hr.com/en/magazines/hr_strategy/november_2014_hr_strategy_planning/the-role-and-future-of-hr-todays-challenge-tomorro_i4ljyoc0.html.