Functional Areas within Human Resources

Various techniques exist for the functional divisions of human resources to participate in the design of organizational-wide strategy. First, the HR department hires and manages personnel, allowing them to evaluate the organization’s current staff and spot any skill gaps or potential improvement areas. The effectiveness of plan implementation also depends on HR’s critical role in fostering a positive company culture and employee engagement. A culture of cooperation, innovation, and dedication to the organization’s strategic goals can be fostered by HR efforts like performance management systems, awards and recognition programs, and employee communication techniques (Masri & Suliman, 2019). Moreover, HR can provide valuable insights and data-driven analysis on employee performance, engagement levels, and workforce trends, enabling senior leaders to make informed decisions when formulating the organization’s strategy.

There can be several issues if the functional areas of human resources are not included in the strategic planning process. First, HR needs to be involved so that there can be a match between the organization’s strategic goals and the talent on hand. The organization could not have the requisite knowledge, experience, or workforce capacity to carry out the strategy efficiently, which could lead to delays, inefficiencies, and failure. Building a positive company culture and employee engagement, crucial for strategy execution, may also be overlooked without HR input (Benkarim & Imbeau, 2021). The inability of the firm to fulfill its strategic goals can be improved by low employee morale, decreased productivity, and higher turnover if HR’s expertise in these areas is addressed. Furthermore, without HR’s involvement, there may be a lack of data-driven insights and analysis on workforce trends, performance, and engagement, which is vital for informed decision-making during strategic planning. The absence of HR’s perspective may result in a strategy that fails to account for the realities of the workforce, leading to suboptimal outcomes.

References

Benkarim, A., & Imbeau, D. (2021). Organizational Commitment and Lean Sustainability: Literature Review and Directions for Future Research. Sustainability, 13(6), 3357. https://doi.org/10.3390/su13063357

Masri, N. E., & Suliman, A. (2019). Talent Management, Employee Recognition and Performance in the Research Institutions. Studies in Business and Economics, 14(1), 127–140. https://doi.org/10.2478/sbe-2019-0010

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