Aligning human resources and business strategy


Executive Summery

The branch of knowledge dealing with the creation and use of technical means and their interrelation with life, society and environment, drawing on subjects such as industrial arts, engineering, applied science and pure sciences and making work shorter, easier and faster, but as far as human resource management is a technology of concern is also the cause of unemployment. For example, in the past people did accounting work manually but now the computer has taken the place of humanity which led to unemployment. Technology plays a significant role in human development, the distinction between science, engineering and technology is not always clear. Science is the investigation or rational study of phenomena, aimed at discovering enduring principles among elements of the phenomenal world by employing formal techniques such as the scientific method. Technologies are not usually exclusively products of science, because they must meet requirements such as utility, usability and security. The technology industry is changing daily and the new invention is held in the field of technology. Innovation is the core component to work in this area. How will invent what's new challenge will be to take a step ahead and can easily capture more market share. Different companies play their role in this area, such as Nokia, Samsung, Sony Erricson, Seimens etc. are competing among themselves to gain market share.

Question No. 1

HR Challenges

Technological Advances

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Regarding the challenges of human resource management is a technology concern is changing with the short period of time and to meet the requirements of the organization of the large organization like Siemens should be considered a challenge because that training should be required to equip current employees or the option of hiring additional skilled employees is open to meet the demands of the changing environment of the organization within Siemens in the wake of technological advances new jobs will be created and many old jobs become redundant. Unemployment resulting from the modernization could be properly assessed by evaluating the needs of labor and training of redundant workers in the alternative skills. (Pattanayak 2005).

Credit Crunch

The recession hit hard by the world, most multinationals are reducing their power to humans because their sales declining purchasing power of people is reduced, so as I am concerned of be a professional Human Resources of Siemens I think the credit crisis will certainly result from Siemens, we have to think about reducing the workforce. Managers or human resources professional must develop a strategy to retain the best and profitable employees with Siemens. Sony will close five or six plants, curbing investment and cut 8,000 jobs worldwide. (Financial Times 2008). As the problem of credit crunch in the world is in force and the chance of growing political instability which is the biggest challenge for human resource managers because most multinationals like British Airways is focused as 100 jobs Gatwick and cut the number of flights the airport, (Metro 2008)


Globalization can be defined as the ongoing economic integration, technological, social and political world that began after the Second World War. There are several dimensions to this dynamic, including the increasing internationalization of economic markets as reflected, for example, in trade and financial capital flows. The primary objective of this paper is to present a conceptual framework for the strategic management of human resources as a response to the growing interaction of globalization and business performance. (USA 2009) [online] Globalization has led to the development of people of different backgrounds involved in the same workplace and changes occur very rapidly. HR in today's world is aware what is happening next May and they were ready for the situation today, yesterday. (Mega Test, 2009) [online]. These produce greater opportunities for business development with the opening of additional markets, allow for greater harmonization of customers following the increase of shared cultural values, and provide a competitive position with higher costs operating lower in other countries and access to new materials, resources and investment opportunities. effective globalization is as much a part of the mentality because it is a set of HR programs. Think global forces that you consider other possible and thinking. Globalization requires that you accept and work closely with people who are significantly different from those with whom you normally work. (Sulliven, 2004).

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From my point of view of HR managers from Siemens are in chalk on a strategic policy to address the challenge of globalization as employees of Siemens belong to different nationalities and diverse backgrounds.

Political & Economic Factors

As challenges to the HR manager in Siemens stake are the conditions of political and economic effects of policies HR professionals, such as changes in labor law and minimum wage is increased to cause of increase in general inflation, but the sale of Siemens is the same if this is hard times for the Siemens HR professionals to reach the standard of the new law. And more chance of disruption of the employment relationship. The political environment is changing, particularly in the area of regulatory requirements. Labor law, human rights, pay equity, health and safety occasional law of industrial relations, and board all impinge on most HRM activities, including selection, training and rewards . (Bratton, 2001).

Attracting, Retaining, Measuring and Competence and Intellectual Capital

As technology evolves at a high speed and changing this world, challenging technological business environment, sourcing and retaining talent becomes the competitive battleground. Like sports team proactively recruit the best athletes, business organizations in the future will be aggressively competing for top talent. Securing intellectual capital means upgrading the bench leadership (Ulrich 1997) From my point of view as HR Manager of Siemens, the key is not to select and recruit the best, but retaining the best minds of 'today and tomorrow to gain competitive advantage over competitors. Once you have good people with you, then the responsibility of its director of human resources to keep them from society for a long time because these people are assets to society. Here is the question how to preserve and improve human resource management and strategic planning & development.

Question No. 2

HR Activities

Human resource management is a term increasingly used to refer to the philosophy, policies, procedures and practices related to the management of an organization's employees . Human resource management is particularly with all the activities that contribute to the successfully attracting, developing, motivating and maintaining the high performance work force that result in organizational success. (Sims 2002).

According to (Armstrong 2002).

As organizational culture and values of Siemens are concern the most important thing in Siemens success is the high performance culture with the organization which is an asset for Siemens. As HRM and performance management are interlink with each other and according to (Armstrong 2003).

Human resource practices are interlinked with the overall business strategies and human resource strategies that lead to the good result of good HR policies and strategies and employees commitment with the job and flexibility for employees give the result of better productivity and better quality of goods and services which ultimately boost the financial performance of the company in the long term.

Harvard Model

According to the Harvard model of HRM HR activities are to protect the interests of stakeholders and at the same time, HR professionals must safeguard human resources management policies and achieve the desired results of human resources and the Review goals and missions of the organization that will ultimately contribute to situational factors and HR Policies which are organizations that are the interests of stakeholders. (Armstrong 2002)

The Harvard map of HRM

Much of this section is devoted to the map of the Harvard 'of HRM. This model is probably the most innovative human resource management and has had a major influence on the academic debate on the subject. "We noted that the Harvard Business School has generated one of the most influential models of HRM. Interpretation Harvard sees employees as resources. However, they are seen as fundamentally different from other resources - they can not be handled the same way. Emphasis is placed on people as human resources. Harvard's approach recognizes an element of reciprocity in all businesses, a concept with parallels in managing Japanese people, as we have observed earlier. Employees are important stakeholders in an organization. They have their own needs and concerns with other groups such as shareholders and customers. Leaf Harvard or model has four HR policy areas: the flow HR - recruitment, selection, placement, promotion, assessment and evaluation, promotion, dismissal, etc., reward systems - systems of remuneration, motivation, etc., the influence of employees - delegated levels of authority, responsibilities of power systems work - definition / design work and alignment of people. This gives rise to four C policies or HR 's "that must be met: the commitment, congruence of competence, cost efficiency. (HRM Guide, 2009) [online]

Question No. 3

Recruitment & Selection Strategies
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In today's highly competitive environment, survival and growth depends on attracting, recruiting and retaining quality people. Because the specialized personnel are the guardians of the key processes of the organization such as the selection, evaluation, training and reward system that connect corporate policies with action, they exert considerable influence on the fate initiatives of quality management. (Tinline 2003)

Future-Focussed Performance Management Framework

This future-oriented framework for performance management is essential to the core programs of human resources - not only the employee recognition and financial rewards. Once the right policy measures are defined, you can explain clearly what you expect of your employees and determine what you can do to help them deliver great results, as shown here:

Balancing External With Internal

Siemens' operations are based on the culture of teamwork and Siemens really wants this thing employees should engage in business and feel as part of its success. As for concerns that I am Siemens HR Manager, they must combine both new and existing employees or by hiring individuals have the same powers that already used old or if they (HR managers) are hiring qualified employees that further advances in existing and HR managers must develop the former to have a good team and improved productivity. As from (Harvard Business School Press, 2006) if you want to provide new insight into your workforce, recruitment of external change agents who challenge the status quo once they are hired may be the best strategy to suit to this end.

Fit With Business Strategy

As for as the high performance culture of Siemens is concern and as an HR manger my focus must be to hire the best people who can really add values in our organizational culture and can easily become the part of Siemens high performance team.

"Only the very best candidates will be granted this opportunity, and only after surviving a very tough selection process. That is why we need to attract the most highly qualified applicants from the very start. It's not a question of quantity, but quality. We want to address only the most suitable candidates."

Question 4

Training & Development

To measure the effectiveness of its training and development, Siemens uses a rating system, a process known as performance management. Employees and their supervisors agree objectives at the beginning of an investment and progress is then monitored formally and informally throughout the course. This helps to focus everyone on the changing business needs. Annually, the results form the basis of dialogue where personnel manager employee reviews progress towards the goals that were set. On evaluation is discussed with the employee and any development needs are captured to determine appropriate training. Together, the new goals for next year to come are defined. In some cases, assessments are related to allowances comments. In these cases, salary increases depend on employees who have reached or exceeded their goals. There are several advantages for Siemens in the use of instruction. It can ensure that all training is well used and the best interests of the company, keeping staff updated in a changing marketplace, make sure the staff is very motivated, get feedback from staff on changes, make sure employees are involved in the changes. (The Times 100, 2009) [online]

Training is the acquisition of technology which enables employees to perform their current job standards. It improves the performance of the man on the job the employee is made or is being committed. Education is training people to do different work. Unlike training, which can be fully assessed once the learners return to work, education can not be fully evaluated when the learners move on to their future profession. We can test what they have learned during their training, but we can not be fully satisfied with the evaluation until we see how they perform their new jobs. Development is training people to acquire new horizons, technologies or points of view. It enables leaders to guide their organizations to new expectations by being proactive rather than reactive. It allows workers to create better products, faster service and more competitive organizations. It includes learning to growth of the individual, but not related to a specific current job or future. Contrary to training and education, which can be fully assessed, the development may not always be fully assessed. This does not mean we should abandon development programs, helping people grow and develop is what keeps an organization in the forefront of competitive environments. (NWLink 2008) Training and development is a key component of progress of any organization, but as we envision the development of training for Siemens and high performance culture is the basic approach to achieving organizational goals through the work of 'team.

As the HR representative I will train the workforce for creativity, because a multinational company must be creative and the main component is innovation, and technical thought to be critical as we have many competitors producing the same products that we (Siemens) do. Our teams of innovators and critical thinkers will definitely introduce new ideas and willing to become market leader. These will be assessed the team leader for good next time, so proper training and development must be provided to all employees. The training is to teach new skills or expanding the skills of employees already have. There are two types of training.

High Performance culture Development

In simple terms, a team is a collection of individuals with backgrounds and different skills working together toward a common goal. Organizations tend to think they can literally bring people together in a room and they will automatically work together as a team. The leadership has worked with hundreds of teams, including teams, Senior Management, New Product Development teams, teams of strategic planning, quality improvement teams, staff teams from the Council of the teams' Church and Self - Directed Work Teams. These teams are all significantly helped the team training in their infancy, and with hands on facilitation for as long as the team needs. (Extraordinary Performance, 2009) [online]. Building a high performance culture requires an understanding of behavior and attitudes. Altitude investigation provides a cultural imprint of the strengths and weaknesses of organizations. It proposes a method of measurement, providing a real insight into the behaviors that define and limit organizational effectiveness. Using performance measures, the study identifies the gaps that the performance limits and then explores ways to help you move towards building a high performance culture. (See Altitude, 2009) [online]

As the initial training, where new employees learn the basic information they need to start working. Siemens has three major development programs designed to "Entry Level Talent 'ie those who begin their career with Siemens after education. (The Times100 2008) [online]

For Siemens concern is training and developing new employees will be as old is part of Siemens' high performance culture. Employees at Siemens can be trained and developed by several ways like:


That refers to involving employee with the colleague or manager and watching the learning of the employee and what to do next. Any lack of knowledge from the part of employee must be directed by the experienced colleague or manager.


The trainee discusses problems and how to solve them with a more experienced mentor or tutor.


Where the trainee does the job with encouragement and guidance from a more experienced member of staff or 'coach'.

Job Rotation

Where employees have the opportunity to move into different departments for a short time and acquire new skills in each. This broadens their skills across different business activities.

Question No.5

Performance Management Strategies:

Performance and management agreement with each other in the performance of Siemens people must be measurable because the performance is always a tool to judge the overall goal and objectives of the organization, people must work for the organization for achieving the goals, so when the organization is successful and achieve its goal means that there is a better performance from the end of labor. The definition of performance led to the conclusion that, when managing the performance of teams and individuals, both inputs and outputs must be taken into consideration.

Performance Management Strategy

Results of the management strategy begins with the collection of activity data for all levels of the stack. The data are used to check against the current system behavior and estimate future performance. You can analyze historical data to determine average values for the statistical system of the most important. You can use historical data to determine the range of acceptable deviation from the normal value. These normal values may be used as threshold values to test the activity of the current system for signs of significant differences. Historical data can be analyzed trends over time. Is the use of the system or the increasing workload, or is it stable? Are there cycles in these changes, monthly or yearly? These simple trends can be extrapolated forward to predict the future workload. As performance data are collected, it can be checked against the thresholds previously determined. All significant differences can be reported and investigated. This survey uses the performance data that are collected to drill down further to establish the cause of these anomalies. The volume of data on system activity can be used to construct a model of how the system behaves. Using the expected changes in trend analysis, and other anticipated changes in workload, the future performance of the system can be estimated using this model. If there are gaps in the results, the model can be changed in different ways to show what must be done to achieve performance targets. (Sun, 2009) [online]


  1. Pattanayak.B (2005), Human Resource Management.3rd ed: PHI Learning Pvt. Ltd, Page No. 11 Challenges to HRM
  2. Sulliven J (2004) Rethinking Strategic HR: CCH Incorporated, Pages 262-263
  3. Bratton J, Gold J, Bratton (2001) Human Resource Management Theory & Practice.2nd ed.: Routledge, Page No.
  4. Ulrich. D (1997) Human Resource Champions: Harvard Business Press. Page No.13
  5. Sims. R (2002). Organizational Success Through Effective Human Resource Management: Greenwood publishing Group. Page No. 3
  6. Armstrong . M(2002). Strategic HRM:CIPD Publishing, Page No. 10
  7. Harvard Business School Press (2006), The Essentials of Strategy , Harvard Business School Press , Page 208-9-10
  8. Holbeche. L (2001), Aligning Human Resources and Business Strategy, Butterworth-Heinemann, Page No.14
  9. Armstrong M (2000), Performance Management: Kogan Page, Page No. 20-21
  10. Armstrong. M (2003), Human Resource Management Practice: Kogan Page, Page No.16.
  11. Gordon Tinline. Ivan T. Rebertson (2003), Recruitment and Selection: Cengage Learning EMEA, page No.11
Web Links:
  1. Siemens UK (2008) selection process <> (Accessed on 02 December, 2008)
  2. The Times 100 (2008) training and development as a strategy for growth <>
  3. Extraordinary Performance (2009) High Performance Culture Development (Accessed 01January 2009) <{19282961-C5D3-4265-A3E9-05FF917767FB}>
  4. Altitude Consult (2009) Creating Performance Breakthroughs (Accessed at 01January 2009) <>
  5. HRM Guide (2009) Harvard map of HRM (Accessed on 03 January 2009) <>
  6. Mega Essay (2009) How is Globalization Affecting HRM? (Accessed on 01January 2009) <>
  7. The Times 100 (2009) Evaluation Of Training And Development (Accessed at 01.January 2009) <>
  8. Usa. edu. pk (2009) The Challenges of Globalization and the Role of Human Resources (accessed on 08 February 2009) <>
  9. Sun (2009) Performance Management Strategy, (Accessed on 08 February, 2009) <>