Role of Human Resource in Business and Strategic Planning

Traditionally human resource segment was associated with the recruitment process and on boarding of candidates in to a company. The segment functionalities initiated with searching appropriate talents and conducting the selection process in an organized manner. But the corporate environment has undergone many changes in recent years and this has influenced the functioning model of HR segment in a major way. Now the role of HR has expanded even to business and strategic planning in order to secure growth in coming years along with effective crisis management. Previously companies were sceptical about investment in this segment as it was not a direct profit yielding business wing. But that thinking has faded away with recent corporate trends. The following pointers show the parallel connection of HR with business processes and planning.

• Executive support is the most basic requirement of a company when it plans to implement a certain strategy within the work environment or plans an organizational change. In order to understand the requirement type of executive support, HR needs to be addressed in the business planning phase. The segment can contribute by addressing the current scenario of talent availability in relation to business development which can be used for strategic and business planning.
• Building up a leadership line is crucial and difficult at the same time. This is especially true in current corporate situation where the baby boomers or generation x are nearing their retirement age. Building up the future leadership team requires insight and understanding of the current business statistics and market conditions along with future objectives. HR plays a significant role in building up the business strategies by hiring future leaders in accordance with the business objectives.
• Sometimes, the businesses go through a transition phase due to industry trends or market conditions. This transition is majorly undertaken and conducted by the resources within the organization. But the planning, development and execution of this transition is designed and formulated by the HR in order to overcome any unwanted conflicts and issues with the system or during the development processes.
• Companies that function at multiple locations have to undergo global placements in order to support the hiring requirements. Global placement process requires an in-depth research regarding the talent availability in relation to market conditions, various legislative frameworks across markets, labour laws and much more. This function and its related activities are handled by the HR segment that is influential in strategic planning.
• Training and development is one of crucial factors that contribute towards organizational development. It helps in increasing the knowledge base of the employees which results in higher productivity giving the brand a competitive edge. The identification of knowledge gap, present knowledge base and training programs is necessary for business planning that is performed by HR.

Therefore, the correlation of business and strategic planning with the human resource management is quite evident in recent times. It needs to be addressed with similar importance for long term growth and expansion.