Show the linkage between the organization’s overall business strategy
Question:
Show the linkage between the organization’s overall business strategy, HR strategy and compensation strategy. Why is having linkage to the business strategy critical to getting buy in to the overall HR and compensation strategy?
Solution:
HR plan refers to the human resource plan which includes the staffing of the right candidate with correct knowledge and skills. It is very essential to align the HR plans with that of the company’s business plan in order to fully involve with the strategic development. The gaps between the business plans are filled with the help of the HR plans. For the development of the HR strategic plan, it is required to hire the right people, train them accordingly, and develop proper reward and appraisal measures, are all the information regarding HR plan that is needed. The overall business strategy and HR strategy are linked with each other, as the humans will perform their assigned work in order to meet the organizational objective.
Compensation strategy refers to the way the employees are paid or rewarded for their work. A compensation strategy is made in accordance to the overall business strategies that is the amount to be paid, the incentives levels etc. The major role of a compensation strategy is to retain the employees and motivate them so that they function with their full capacity. It is very essential to link all these strategies together so that the overall efficiency and productivity of the organization is achieved. The linkage provides a sense of direction, which is needed when there is diversities in the culture and the individual objectives.
Reference:
HYPERLINK “https://www.google.co.in/search?hl=en&sa=X&noj=1&prmdo=1&tbm=bks&tbm=bks&q=inauthor:%22Michael+L.+Davis%22&ei=8wuhT6e_MovMrQe-jMncCA&ved=0CDQQ9Ag”Michael L. Davis, HYPERLINK “https://www.google.co.in/search?hl=en&sa=X&noj=1&prmdo=1&tbm=bks&tbm=bks&q=inauthor:%22Michael+L.+Davis%22&q=inauthor:%22Edge%22&ei=8wuhT6e_MovMrQe-jMncCA&ved=0CDUQ9Ag”Edge, HYPERLINK “https://www.google.co.in/search?hl=en&sa=X&noj=1&prmdo=1&tbm=bks&tbm=bks&q=inauthor:%22Michael+L.+Davis%22&q=inauthor:%22Edge%22&q=inauthor:%22Jerry+T.+Edge%22&ei=8wuhT6e_MovMrQe-jMncCA&ved=0CDYQ9Ag”Jerry T. Edge, HYPERLINK “http://books.google.co.in/books?id=GOx6LjYwguYC&pg=PA29&dq=Why+is+having+linkage+to+the+business+strategy+critical+to+getting+buy+in+to+the+overall+HR+and+compensation+strategy?&hl=en&sa=X&ei=8wuhT6e_MovMrQe-jMncCA&ved=0CDMQ6AEwAA” o “Executive Compensation: The Professional’s Guide to Current Issues & Practices”Executive Compensation: The Professional’s Guide to Current Issues (2004)
