Strategic HR management implementation across sales, marketing, operations, and finance

¶ … HR and Corporate Strategy

The work entitled "Overcoming the Barriers to Strategic HR Management: Old Issues. New Solutions" states that strategic HR "is characterized by being forward-thinking, proactive and, most of all, creative...Strategic HR is also about thinking about possibilities and connecting those possibilities in concrete ways to the business that you support." (ADP, 2007) This work intends to address organizational strategic HR management as it relates to the: (1) sales; (2) marketing; (3) operations; and (4) finance departments of the organization.

Sales

The objectives stated by the VP of sales are the following: (1) Increase the number of field sales representatives (FSR) from 20 to 30; (2) Increase gross sales by 8%; and (3) Create positions for four regional sales managers so that FSRs do not report directly to the VP of sales.

Marketing

The objectives stated by the VP of marketing are those as follows: (1) Develop marketing plans for the 10 new products planned next year; (2) Train FSRs on features/benefits of existing products; and (3) Add a third copywriter position to the department.

Operations

The objectives stated by the VP of Operations include those as follows: (1) Increase production by 5%; (2) Decrease the number of product defects by 10%; and (3) Add 20 manufacturing employees to each of the company's two plants

Finance

The objectives stated by the VP of finance include the following: (1) Increase profits by 3%; (2) Add two financial analyst positions, one for each manufacturing plant; and (3) Develop a team to identify scrap and waste in the plants and find ways to cut these costs for the company. It is clear that each of these departments desires to add more employees to its workforce. Therefore, the plans set out in the following section contain information that will enable each of these departments to successfully add the needed additional employees to their department.

Human Resources Strategy -- Principles and Guidelines

Strategic human resource planning makes sure it has "the right people in the right place," "the right mix of skills," "employees display the right attitudes and behaviors" and "employees are developed in the right way." (Workinfo.com, 2011) In addition, the HR strategy that adds value to the organization is one that: (1) articulates more clearly some of the common themes which lie behind the achievement of other plans and strategies, which have not been fully identified before; and (2) identifies fundamental underlying issues which must be addressed by any organization or business if its people are to be motivated, committed and operate effectively. (Workinfo.com, 2011)

Workforce Planning Issues

Workforce Planning Issues are inclusive of the following:

Workforce Planning Issues

Succession Planning

Workforce Skills Plans

Employment Equity Plans

Black Economic Empowerment Initiatives

Motivation and Fair Treatment Issues

Pay Levels designed to recruit, retain and motivate people

Coordination of approaches to pay and grading across the organization

Grading and remuneration system that is fair and properly rewards employees

Wider Employment Issues Impacting Staff Recruitment, retention and motivation

Consistent Performance Management Framework

Career Development Frameworks

Policies and Frameworks to ensure development issues are addressed systematically (WorkInfo.com, 2011)

Integration of the HR Strategy with Broader Organizational Objectives

Integration of the HR strategy with broader organizational objectives will be ensured through the following:

Consultation with all stakeholders on the nature of the strategy;

Cultivation and development of allies and supporters of the strategy at all organizational levels;

Provision of regular feedback on implementation of the HR strategy plan (newsletters, meetings, exhibitions, reports)

Build quantifiable outcomes into the strategy for monitoring and evaluation

Make the strategy part of the induction process. (WorkInfo.com, 2011)

Strategic Human Resource Planning Model

There will be a strategic human resource-planning model used which will contain six specific steps in the development of the Human Resources strategy including the steps as follows:

(1) Setting the strategic direction

(2) Designing the Human Resource Management System

(3) Planning the total workforce

(4) Generating the required human resources

(5) Investing in human resource development and performance

(6) Assessing and sustaining organizational competence and performance (WorkInfo.com, 2011)

The following illustration shows this HR strategic planning model as it is conceptualized.

Figure 1

Strategic Human Resource Planning Model

Steps to be taken include those as follows:

HR will conduct an external environmental scan and evaluate its impact on the organization;

HR will Identify the organization's vision, mission and guiding principles;

HR will Identify the mission's outcomes and strategic goals

HR will Consult all relevant stakeholders

HR will evaluate the impact of legislation on the organization. (WorkInfo.com, 2011)

The next step of planning the total workforce will involve specific actions including making a determination of the "appropriate organizational structure to support the strategic objectives" as well as structuring jobs around key activities. Also involved will be the development of a workforce plan with a design specifically to provide support for the strategic objectives of the organization. Workforce profiles will be compiled which identify specific groups as well identifying "an inventory of current workforce competencies, competencies that will be needed in the future and identifying gaps in competencies of the present workforce. (WorkInfo.com, 2011) The next step involves generating the required human resources. This will be accomplished through evaluation of recruitment and selection practices with the strategic objectives of the organization in view as well as developing and implementing a comprehensive workplace skills plan and a leadership strategy. Finally, it is be necessary to "adopt or clarify occupational levels and category classifications." (WorkInfo.com, 2011) The next step involves investing in human resource development and performance which will make a requirement of identification of policies, procedures and practices that are appropriate in regards to: (1) career pathing; (2) performance appraisals; (3) employee development and learning; (4) reward management; (5) promotions and job assignments; and (6) and separation. (WorkInfo.com, 2011) The next step involves the assessment and sustenance of the organizational competence and performance, which makes a requirement of:

Evaluating organizational culture and climate

Implementing succession planning

Evaluating HR strategy using quantifiable measures, e.g. balanced scorecard

Revising and adapting HR strategy. (WorkInfo.com, 2011)

Case Study Two -- Designing a Performance Review System

The initiative of designing a performance review system will involve consideration of: (1) organizational objectives; and (2) key sales representative behaviors. Organizational objectives include those as follows: (1) Become recognized for outstanding customer service before, during, and after the sale; (2) Become the largest pre-owned automobile dealer in Los Angeles specializing in luxury cars; (3) Develop a sales staff with the highest levels of ethics, communication skills, and teamwork; (4) Maintain a clean, comfortable environment for consumers; (5) Increase gross sales by 10%; and (6) Ensure that only the highest quality automobiles are sold. Key sales representative behaviors identified include the following: (1) High-quality communication skills; (2) Strong ability to close sales; (3) Professional; (4) Sharply dressed and groomed; (5) Solid listening skills; (6) High ability to ascertain customers' needs; (7) Team player with other sales representatives; (8) Prompt to work and puts in enough hours to succeed; (9) Creative in finding new sales methods; (10) Excellent customer prospecting skills; and (11) Strong ethics. (Workinfo.com, 2010)

Performance Review System

The performance review system design will be of the nature that will assess the key sales representatives in the following areas:

(1) Is the sales representative recognized for outstanding customer service before, during and following the sale?

(2) Is the company progressing toward becoming the largest pre-owned auto dealer in LA specializing in luxury cars;

(3) Does the sales staff have high levels of ethics, communication skills and teamwork?

(4) Does the company maintain a clean and comfortable environment for consumers?

(5) Have gross sales increased by 10%?

(6) Are the highest quality automobiles sold?

The assessment will be made through conducting surveys among customers, employees and managerial staff of the organization. The information gained during the surveys will serve to inform HR if the organizational strategic objectives are being met. In addition, HR managers will conduct reviews of each of the key sales representatives including their hours worked their sales averages and their customer feedback to assess their job performance.

If the organization is recognized for outstanding customer service before, during and following the sale it only stands to reason that the key sales representatives have excellent communication skills. Secondly, key sales representatives who have a strong ability to close sales will serve to ensure that the dealership becomes the largest pre-owned automobile dealer in Los Angeles in the luxury car market. If the key sales representatives are professional and sharply dressed and groomed and posses solid listening skills and area tuned to the customer's needs, then developing a sales staff with the highest levels of ethics, communication skills and teamwork will be successful. Key sales associates who are team players, arrive at work promptly and work enough hours to succeed will also ensure that the company succeeds.

Evaluation conducted in the manner stated in this study will serve to provide a well-rounded and fully informed view of the level of performance of key sales representatives of the organization. It is necessary to not only evaluate the key sales representative performance in terms of the view of the organization but also it is necessary to evaluate these individual's performance through the eyes of the consumer or the customers of the organization.

Performance Reviews will be conducted according to the following time schedule:

(1) Quarterly;

(2) Semi-annually; and (3) Annually.

The 'Focal-Point Approach' has been chosen for review of employee performance, which involves all employees being assessed at approximately the same time. The benefits of this approach is reported to be that supervisors have an easier time of making direct comparisons of performance of employees. Not only will supervisors conduct appraisals, the employees will also assess their own performance in a self-appraisal. The forced-distribution method will be used to appraise employee performance across various categories and employee performance will be rated in the following groups:

(1) Highest performers;

(2) Next highest performers;

(3) Middle performers

(4) Next lowest performers; and (5) Lowest performers.

Finally, the supervisors will conduct Behavioral Observation Scales (BOS), which asks that appraisers report the frequency of engagement in specific behaviors by employees.

Following the performance reviews, employees will be provided with detailed feedback so that they can adjust their performance accordingly to raise their performance to the level the organization desires.

There will be inherent challenges in the utilization of this type of assessment in that there may be difficulty in persuading customers to complete and return the surveys in a timely manner and to gain the cooperation of the key sales representatives in assisting with the distribution and acquisition of the surveys once the customers have completed filling them out.