Introduction/Background
Aligning HR functions with the organization’s strategic direction is an integral skill for all human resource managers. This extends beyond human resources’ traditional operational and administrative elements, including integrating HR initiatives and practices with the company’s overall strategic goals and objectives. For HR managers, there is also a significant difference between HR practices when working for a smaller organization and a larger one. As the new HR vice president for ABC, a mid-sized company specializing in hospital products but now intending to expand to the medical device realm, this proposal suggests the best thinking in aligning the company’s HR function with the new strategic direction. The proposal will address seven main areas: key takeaways acquired from working as an HR for ABC competitor (small firm), potential challenges of working in HR for a larger organization like ABC, changes to the HR functional areas required to align with and support the new strategic direction, critical cultural considerations, business objectives, legal and ethical considerations, and frequently asked questions (FAQs).
Key Takeaways from Being in Charge of HR for a Small Business
As a former employee in charge of HR functions for ABC’s main competitor, I learned several lessons about working for smaller businesses. Firstly, small businesses often leverage informality, flexibility, and familiarity with HR strategies, initiatives, and practices. Informality means that most HR functions and processes are casual, informal, and unstructured. Informality implies less compliance with strict regulations, laws, and industry standards. For example, the company used an open-door policy to encourage workers to share their feedback and sentiments with the HR office rather than organize formal workshops. These informal practices are cheaper and quicker to implement. Secondly, small businesses often prefer ‘flexible’ to ‘rigid’ HR initiatives. Flexibility is the idea that workers can perform better where and when they work. Instead of enforcing a rigid schedule or work environment, flexibility acknowledges unique employee needs and fosters well-being and work-life balance (Ray & Pana-Cryan, 2021).
Additionally, small businesses often take advantage of their small size and close-knit characteristics to build a sense of connection, trust, and familiarity among their managers and workers. Understanding is grounded on the assumption that employees interact more frequently and personally in smaller businesses. Therefore, employees enjoy more close relationships with their colleagues and the management. Because of high flexibility in work schedules and programs, familiarity among workers, and informal processes, creativity, innovation, and entrepreneurship are high.
Challenges of Working in HR for a Larger Business
Working for larger organizations, such as ABC, can present multiple challenges to the HR manager and department compared to smaller businesses. Firstly, larger firms have intricate structures, more employees, and diverse departments. Dealing with these varied and complex structures and processes can be a slog as it requires multi-layered and more formal procedures. Secondly, larger organizations require more specialization, skillsets, and formalities. Since HR functions and processes are complex and formal, HR managers need more skills and experience to successfully design, implement, and monitor HR functions. Formality also means more compliance with industry standards and regulations and state/federal laws. The formality of processes also implies less flexibility, familiarity, and poor employee relations. This cripples innovation and creativity and lowers job satisfaction, performance, and employee morale (Davidescu et al., 2020).
Changes to the HR Functional Areas Needed to Align with and Support the New Strategic Direction
ABC’s new strategic goal is to expand into the medical device industry. However, the company desperately needs to change several HR functional areas to align with and support this new strategic direction. The functional areas that must be adjusted include talent acquisition & retention, learning & development, total rewards, organizational effectiveness & development, diversity & inclusion, and business & HR strategy. For the “talent acquisition & retention” function, ABC lacks the expertise and qualified personnel to effectively operationalize the new “medical device” branch. Therefore, the company needs to construct and implement a unique talent acquisition strategy that targets the requisite competencies and skills in the medical device sector. The firm can also strengthen employee retention by implementing a competitive pay structure, offering career growth opportunities, and cultivating a positive and safe workplace. These strategies can also play out in attracting top talent in the industry.
For the second functional domain, learning & development, the workforce needs more pertinent skills and knowledge in the medical device segment. This can be addressed by offering new employee training and onboarding opportunities. Onboarding can assist workers in familiarizing themselves quickly with their roles. ABC can also provide on-the-job technical skill training and mentoring opportunities or send a selected workforce to a training college to acquire the necessary ‘medical device’ skills (Siocon, n.d.).
ABC must also implement a comprehensive “total rewards” program that considers monthly salary, bonuses, health insurance coverage, retirement benefits, paid leaves or time-offs, and many others. The existing packages are built for the company’s healthcare products segment. The new benefits strategy must be competitive, reflecting employee roles/responsibilities, job demands, employee needs, educational requirements, industry rates, and government policies for the medical device sector.
Furthermore, the company must bolster “organizational effectiveness & development” to achieve its strategic goals. It must streamline processes, reduce resource and time wastage, and change the existing culture, values, attitudes, beliefs, and culture to better adapt to the new strategic direction, challenges, markets, and technologies. ABC presently have a culture rooted in growth, collaboration, and innovation. What is needed is to embrace learning and adaptability to effectively address the challenges that the medical device segment will present.
The firm must also embrace “diversity & inclusion” to improve its chances of attracting and retaining a diverse and talented workforce. Inclusivity & diversity initiatives can also drive innovation and creativity. Potential diversity & inclusivity strategies may include hiring people from diverse backgrounds, offering career growth opportunities, and offering competitive salaries to all employees without regard to colour, race, age, disability status, or nationality of origin. Finally, the firm needs to change its “business & HR strategy.” Its strategic direction is diversifying into the medical device industry. The firm can align its business with HR strategies by putting more effort into acquiring top talent in the medical device sector, developing existing talent, and retaining them.
Critical Cultural Considerations
In line with the company’s desire to get to the next level of performance, it must integrate all four cultural considerations into its new strategic direction. This includes incorporating a culture of (1) passion for growth, expansion, and innovation, (2) teamwork and collaboration, (3) a discovery mindset, and (3) a drive and bias for action. A passion for growth, expansion, and innovation means fostering a workplace where workers are highly engaged and committed to seeking and espousing new approaches, technologies, and ideas, particularly regarding the to-be-established medical device business division. Teamwork and collaboration mean encouraging partnerships, open communication and shared decision-making between staff and managers and among departments and business segments. It entails sharing resources, expertise, and knowledge to improve performance. A discovery mindset implies embracing experimentation, uncertainty, and learning from mistakes as opportunities for growth. Finally, a culture characterized by ‘drive and a bias for action’ is characterized by a workforce inspired by the desire to make things happen or take the initiative.
Business Objectives
Aligning the HR functions with the new strategic direction will assist in achieving the following objectives: (1) to develop a knowledgeable and skilled workforce with pertinent skills in the medical device business sector, (2) to allow workers to quickly familiarize themselves with the demands of the new business segment, (3) to foster creativity and innovation, (4) to attract and retain the top talent, and (5) to foster organizational efficiency and effectiveness.
Legal and Ethical Considerations
ABC must consider several legal and ethical factors regarding the different HR functional areas discussed above. For example, during talent acquisition & retention, the company must comply with employment laws when recruiting, onboarding, training, paying, promoting, and firing workers. Some of these policies include anti-discrimination laws (the Civil Rights Act of 1964), privacy and non-disclosure regulations (HIPAA), and minimum wage policies (the Fair Labor Standards Act) (Cousin et al., 2023). Potential ethical considerations include honesty and transparency when communicating benefits and terms of employment, fair treatment, the right to work in a safe environment, and respect for human rights, including freedom/autonomy of expression.
Frequently Asked Questions (FAQs)
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What are the leading HR domains?
The five main HR domains include organizational design, staffing, performance & appraisal, employee training and development, and benefits, rewards, and compliance.
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What are examples of recruitment methods organizations can use?
Based on the available need and resources, organizations can choose from the following recruitment strategies: referral programs, partnerships with colleges, industry networking, online job boards, social media engagement, virtual career fairs, external advertisements, and employee referrals.
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What is employee engagement? What are its benefits?
Employee engagement is workers’ emotional and physical connection and commitment toward their colleagues, managers, and organization. Employee improves job satisfaction, performance, productivity, innovation and creativity, teamwork, and retention.
References
Cousin, B. (2023). Employment & labour laws and regulations in the USA. https://iclg.com/practice-areas/employment-and-labour-laws-and-regulations/usa
Davidescu, A. A., Apostu, S., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees – implications for sustainable human resource management. Sustainability, 12(15). https://doi.org/10.3390/su12156086
Ray, T. K., & Pana-Cryan, R. (2021). Work flexibility and work-related well-being. International Journal of Environmental Research and Public Health, 18(6). doi: 10.3390/ijerph18063254
Siocon, G. (n.d.). How to develop winning learning and development strategies. Academy to Innovate HR. https://www.aihr.com/blog/learning-and-development-strategies/
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