A strategy oriented HR system is more effective than other HR options because it produces a high performance work system that maximizes the performance of all staff within the organization. The medium sized IT firm in question is dealing with a challenge of intense competition. To combat this, they have come up with two strategic goals. The first goal which entails boosting the firm’s sale software products will be indirectly associated to HR performance. This is because HR managers have the leeway to move staff horizontally as their performance demands. The second goal which is to hire 50 more workers is a direct linked goal. In this case, the workers hired are filling in some gap identified by HR.
The steps in the strategic management process
For any business to succeed, the strategic management process must be put in place within the business’s strategy. Strategic management process is hence essential and it often entails five core steps which include; goal-setting, the analysis of the set goals, strategy formulation, evaluation as well as control to help determine the firm’s progress (Chan et al., 2004).
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The steps in the HR Scorecard approach to creating HR systems
The outlined steps are essential in creating a HR systems that spearhead excellent perofoamnce in any organization:
Define the organization strategy
This involves visualizing the broad strategic plan of the organization into a doable goal.
Outline the business’s value chain
This tends to identify the relevant outcomes, value chain as well as primary to help generate strategic activities that spearhead the company’s performance .
Outline a strategy map
This includes making a summary of the major activities that often contributes to the organization’s success.
Identify the company’s outcomes
This ensures that all the set goals generate relevant outcomes.
Identify the needed staff competencies as well as behavior
This entails identifying competencies and behaviors such as professionalism, accountability and commitment among the workforce that will help produce relevant outcomes and attain the set goals (Lau &Ngo, 2004).
Identify the needed HR system activities as well as policies
The policies and activities should be set within to generate a workforce that a vibrant team.
Create the HR Scorecard measures
One should seek to strive balance between the existing financial as well as non-financial goals within the company.
Summarize the Scorecard measures in a dashboard
This involves presenting all the collected information in a way that catch the management’s attention.
Monitor, predict as well as evaluate
The HR Scorecard is liable to changes and hence should be assessed and evaluated periodically to ensure that everything falls within the set standards.
References
Chan, L. L., Shaffer, M. A., " Snape, E. (2004). In search of sustained competitive advantage: the impact of organizational culture, competitive strategy and human resource management practices on firm performance. The International Journal of Human Resource Management , 15 (1), 17-35.
Lau, C. M., " Ngo, H. Y. (2004). The HR system, organizational culture, and product innovation. International business review , 13 (6), 685-703.
