What businesses need to know about the alignment between their HR Policies and Business Objectives to produce fantastic results.

1. Aligning HR Policies to
Business Objectives
Navneet Chandra

2. Business
Objectives
Resources
( What you need to
achieve
the objectives)
Strategies
( How to Achieve
your objectives)
Finances Infrastructure
(Offices, N/w’s etc)
People
Sales Sourcing
HR Policies
Infrastructure Others

3. Understand…
• Business Objectives
– Clearly understand what the Objectives are
• Ex – be a 100 crore company by 2010
• Ex – be a 1000 people company by 2009
• Strategies
– Understand How the Objectives would be met
• Ex – Open offices in 2 countries
• Increase sales force by 50%
• Introduce new Product line

4. • Resources
– Understand what resources would be needed to
meet these Objectives
• Ex – offices in 4 locations in 2 countries
• Ex - ERP solution to streamline processes
• Ex - Sales force of 80 and a production force of 200
• As Is – To Be Analysis
– You need to understand what you have ( As Is)
and what you need ( To Be)
• Ex – You have a sales force of 20 and need 60 more
• Ex – you need a specialized Admin dept. to handle all
admin functions which currently is being done by HR

5. Revisiting HR Policies
• What are HR Policies ?
– Set Procedures & Process for routine tasks
• Ex - Joining formality
• Ex – Availing Leaves
– Set boundary conditions for Human Behavior and
Activities
• Ex – Working Hours is 9 AM to 6 PM
• Ex – Dress Code
• Ex - Sexual Harassment Policy
– Motivational tool to Retain People and improve
productivity
• Ex – Compensation
• Ex – Benefits
• Ex – Incentives and Bonuses
• Ex – Birthday celebrations

6. HR Policies – Myth
• Policies are for the employees and not for
Management
– Policies are for the Organization and every one working in it
for it irrespective of the Hierarchy.
• Good policies will cater to the hierarchy in the way it has been
framed
– Ex – Travel Allowance for an executive is 1st class rail fare and travel
allowance for management is Flight economy class
• One size fits all
– Different organizations need different policies
• Policy for a 50 people organization would be different from a 200
people org. which would be different from a 2000 people org.
• Policy for a org with one location would be different from org with
multiple locations

7. HR Policies - Complexities
• Policies should cater to both diverse
backgrounds and operating environments
– Ex – Serving Non Veg. food in a predominating veg.
environment
– Ex – Saturday / Sundays are off in India while
Thursday / Friday are off in Middle East
– Ex – Club membership would be good for a person
in the metro but what about a person of the same
cadre in a remote place.

8. Till Now…
• We know where we want to be…( Objectives)
• We know how to get there… ( Strategies)
• We know what we have…( As Is)
• We know what we need to reach where we want to
be…( To Be)
• We know we need a Framework ( HR Policies)
• We know what to avoid in this Framework ( Myths)
• We know what to consider when drafting this
Framework ( Complexities)
To Create an appropriate framework to Get what we need
and maintain what we have to reach where we want to be
is Aligning HR to Business Objectives

9. Align HR with Objectives
• Work with Top management to understand
Objectives
• Work with Line Managers to understand
Strategies
• Look at your existing Framework ( As Is)
• Think of what you will be and devise a
framework for the same ( To Be)
• Compare and see the difference ( Gap
Analysis)
• Bridge the difference ( Implement )