Question

•QS1 Be able to discuss vertical alignment. Specifically aligning HR objectives with organisational strategy and objectives. (pg. 36 in Stone, under the heading “Strategic HRM objectives and plans”). Think about the STARBUCKS, SOUTHWEST AIRLINES examples

•QS2Be able to discuss the influence that changes in the organisation’s external environment have on HRM practices à examples à globalisation, ageing population, technological changes etc.

Answer 1

QS1. Vertical alignment increases the effectiveness of company's strategies as the functional departments are closely aligned with the business goals and objectives. They become stakeholders in organisational success and their actions and policies are planned with goal of achieving business objectives. It can be done by communication of the goals and expectations, planning of various functions like recruitment, training, performance appraisal and compensation systems. HR can help in building relationships with employees as in case of Starbucks where employees are considered partners and communicators of the brand quality and service. It provides the organisation to take advantage in terms of flexibility and adapting to business conditions. The planning of HR functions and developing resources can help the business to become more focused and organized to achieve efficiency. The evaluation of the functions can help in aligning the policies and HR initiatives.

QS2 The influence of the changes in the organisation's external environment are in terms of economic forces as it influences the growth of the business, the incentives and compensation for employees, the growth opportunities available. Political forces help in policy formulation as the regulations and law guides the welfare programs and work benefits for employees. Technology has an important role as it increases the productivity, communication, development and performance of employees. The demographic and social factors define the values and beliefs of employees, their education and the diversity of the work force. HR policies and practices are formed considering the influences of external environment to achive the organisational fit between the external and internal factors and the business goals of the organisation.