Aligning Human Resources and Business Strategy, Second Edition

513 Pages·2009·1.67 MB·English

by  Linda Holbeche

Aligning Human Resources and
Business Strategy
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Aligning Human
Resources and
Business Strategy
Second edition
Linda Holbeche
AMSTERDAM• BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD
PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO
Butterworth-Heinemann is an imprint of Elsevier
Butterworth-Heinemann is an imprint of Elsevier
Linacre House, Jordan Hill, Oxford OX2 8DP, UK
30 Corporate Drive, Suite 400, Burlington, MA 01803, USA
First edition 1999
Paperback edition 2001
Reprinted 2002 (twice), 2003, 2004 (twice)
Second edition 2009
Copyright © 2009 Roffey Park Institute and Linda Holbeche. Published by
Elsevier Ltd. All rights reserved
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ISBN: 978-0-7506-8017-2
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09 10 11 12 13 10 9 8 7 6 5 4 3 2 1
Contents
Preface to the First Edition vii
Preface to the Second Edition ix
A cknowledgements xiii
Part I
The Need for Strategic Human Resources 1
1. Introduction: From Business Partnering to Leadership 3
2. The Context for Strategic HR 29
3. Transforming HR into a Strategic Partner 66
4. Measuring the Impact of Strategic HRM 89
5. Aligning Business and HR Strategy 124
Part II
Strategies for Managing and Developing Talent 163
6. Recruitment and Retention Strategies 165
7. Managing and Rewarding for High Performance 194
8. Strategies for Developing People 232
9. Developing Effective Career Strategies 263
10. Developing International Managers 288
11. High-Potential Assessment and Succession Planning 308
Part III
Human Resources as a Strategic Function 339
12. Skills for HR Strategists 341
13. Working Across Boundaries 365
14. Global HRM 381
Part IV
Implementing Strategic Change 405
15. Bringing about Culture Change 407
16. Mergers and Acquisitions 437
17. Creating a Learning Culture 460
Conclusion 477
Index 489
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Preface to the First Edition
S o much has been written about the changing role of HR that the reader
might wonder why I have sought to add to the debate. It seems that being an HR
professional is a tough proposition these days and that there are endless require-
ments to prove that value is being added by HR interventions. The pressures on
the function are enormous and in many cases, resources are thinly stretched.
The HR function is frequently accused of being reactive. Yet I believe that the
situation need not be so bleak and that HR has potentially the most significant
contribution to make of all the functions, if it manages to combine operational
excellence with a really strategic approach.
M y motivation in researching and writing this book is to find out how excel-
lent professionals are delivering value. That is not to say that I believe that the
practitioners featured in this book have a blueprint for success but some of
the approaches described here are likely to provide food for thought for other
organizations. Similarly, I am not attempting here to address all aspects of a stra-
tegic and operational HR agenda. I have focused on some of the performance
and developmental issues which I consider key if business and HR strategies are
to be aligned. This is not therefore a technical book, but one which highlights
what practitioners are doing with respect to strategic recruitment, organizational
development, management and international leadership development and change
management. I have tried to illustrate the theory with ‘ l ive’ cases where time
permitted, and have included checklists which I hope will be useful to HR teams
and line managers in assessing their needs and service provision.
I hope that the ways in which the HR strategists featured in this book are
approaching the challenges of aligning business and HR strategies in their organ-
izations will provide evidence that outstanding value can be added by HR and
offer encouragement to practitioners who are finding the quest to add value hard
going.
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Preface to the Second Edition
Since the first edition of this book was published, so much has changed in terms
of the employment landscape, HR theory and priorities, that simply updating the
text has not been enough. HR is undergoing perhaps more rapid transformation
than any other function on its journey to delivering value. In today’s fast-chang-
ing economic context equipping organizations to deal with the pressures they are
likely to experience calls for a truly strategic response from HR. And of all the
functions HR has potentially the most significant contribution to make, if it man-
ages to combine operational excellence with a really strategic approach. Building
talent pipelines, changing organizational structures and cultures are just some of
the opportunities for HR to exercise leadership.
At the same time, much has stayed as it was ten years ago. Alongside the
opportunities sit the pressures. It still seems that being an HR professional can
be a tough proposition and there are endless requirements to prove that value is
being added by HR interventions and, in many cases, resources remain thinly
stretched. As the HR agenda moves on so the nature of HR interventions contin-
ues to expand, demanding new disciplines, skill sets and behaviours, even within
HR’s traditional heartland. Strategic workforce planning can put organizations
‘ on the front foot’ when it comes to optimizing the changing labour market and
demographic trends. Employer branding, employee segmentation and other
analytical techniques, and holistic approaches to reward enable organizations
to attract and retain the talent they need for success. Organizational design and
development, geared to building flexible, agile cultures are an essential part of
the HR role. Continuous professional development is key to raising the game.
S imilarly, the capabilities HR is required to demonstrate have also moved on
significantly in the last decade since I wrote the first edition of this book. No HR
professional can expect to be taken seriously if he or she is unable to understand
and speak the language of business, to translate the business strategy into rel-
evant people processes and goals which are appropriate to the context dynamics
facing their organization. HR needs the ability and credibility to work collabo-
ratively with line managers to continually push up the standards and practice of
people management and development.