- Will the organization's structure and systems be able to cope with
future challenges in their present form? - Are we making the best use of the skills and capabilities of our
employees? - Are we investing enough in developing those skills and capabilities?
- Are there any potential constraints in the form of skills shortages or
employee relations problems? - Are our employment costs too high?
- Is there likely to be any need for de-layering or downsizing?
The answers to these and similar questions define the areas in which HR
strategies need to be developed. The important thing is to give an overall
sense of purpose to HR activities by linking them explicitly to the needs of the
business and its employees.
2.6 HR'S STRATEGIC ROLES
When it comes to how involved HR managers should be in strategic planning,
there is often a disconnect between what CEOs say and do. One writer says
HR professionals' input is crucial: They identify problems that are critical to
their companies' business strategy, and forecast potential obstacles to
success. When Rick Wagner took over as CEO of General Motors, he
organized a senior executive committee (the "Automotive Strategies Board").
It included GM's chief financial officer, chief information officer, and vice
president of global human resources. As Wagner says, "I seek [the HR vice
president's] counsel and perspective constantly. She has demonstrated a
tremendous capacity to think and act strategically, which is essential to our
HR function and what we want to achieve in making GM a globally
competitive business."
A study from the University of Michigan concluded that high-performing
companies' HR professionals should be part of the firm's strategic planning
executive team. These professionals identify the human issues that are vital
to business strategy and help establish and execute strategy. They provide
alternative insights and are involved in creating responsive and market-driven