Saturday, April 16, 2011

Aligning HR Strategy with Business Strategy

As a young HR Executive working for a French MNC that specialized in power generation, very offend the CM (Country Manager) would be telling my superior that the HR Dept annual action plan need to be aligned towards the business strategies. During that time (early part of 1990's) - I did not understand  what the CM was talking about (his expectation).  You can say that I was still the era of 'Personnel Management' and my HRM knowledge during that time were limited to HR Admin and payroll administration.

I would like to share this 'HR-Business Strategy Aligning' model with young HR professionals and potentials HR Managers (and Business Leaders). It is a self-explaining model on some HR strategies can be considered assuming that the business strategy is focusing on either (i) divestment, (ii) M&A or (iii) business expansion.

Exhibit 1: Aligning HR Strategy to Business Strategy
(Source: Elizabeth Martin-Chua, 2009 - Maximizing Human Capital in Asia)


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