Question

1. What is HR strategy? Could you explain the linkage between HR strategy and business strategy companies like IBM and Delta use?
2. Think that you recently became a hiring manager in Costco. You worked in Sam’s Club as a hiring manager before. What would you adjust for the transition from Sam’s Club to Costco?

Answer 1

What is HR strategy? Could you explain the linkage between HR strategy and business strategy companies like IBM and Delta use?

Human Resource strategy is defined as “a system of human resource practices for particular jobs and a collection of jobs aimed best employee performance possible to meet the firm’s ultimate goals.” The linkage between the human resource strategy and the business strategy is what employees want the outcome of the organization to be. For example, Delta’s HR strategy aligned with their business strategy because it helped employees build skills in order to make the business successful. The businesses strategy was established so that customer service attracted customers which created more revenue. Delta selected their best employees with skills that aligned to theirbusiness strategy. Delta was successful because they invested more in training and internal promotion which helpedincrease employee retention. This strategy helped employees recognize that the company cared and that they mattered. However, in 1994 other competitors provided better prices which then changed Deltas strategies. Delta decided to lay off employees, cut on training, cut employees pay, and have fewer employees. After changes were implemented, the human resources strategy no longer met human capital because it was obvious Delta only focused on revenue rather than their employees.

Think that you recently became a hiring manager in Costco. You worked in Sam’s Club as a hiring manager before. What would you adjust for the transition from Sam’s Club to Costco?

My first adjustment in the transition would be to go over and understand the Costco’s business strategy because it might be different than Sam’s Club. As a hiring manager, I would have a strategy that focused on demand for low labor costs. Implementing hands-on training exercises for new and current employees benefits with the high turnover rate that Costco has. Additionally, I would implement a strategy that improved employee productivity.According to the article, Costco’s sales were 5.5% lower than Sam’s Club which had 6.25%. Retraining current employees to jobs with similar skills would increase their expertise and knowledge as well asincrease productivity and sales. Since Costco already invests in its sales associates by providing health care benefits, adding incentives could possibly keep employees motivated and have a higher retention rate.