ALIGNMENT OF HUMAN RESOURCE WITH BUSINESS STRATEGY 2

Alignment of Human Resource with Business Strategy at Ford Motor Company
Ford Motor Company is one of the oldest and biggest automobile companies in the
world. Started in 1903 by Henry Ford, the company has grown over the years and is now
active in over 38 countries with a global workforce exceeding 200,000 employees (Ford Motor
Company, 2019). Throughout its history, Ford has always re-invented itself to overcome the
various challenges posed by competition from rivals. Human resource (HR) has often played a
major role in this re-invention because of the central role that employees play in the
performance of the company.
How to Ensure That HR Strategy is in Alignment with Business Strategy
Strategic human resource management (SHRM) creates a link between an
organization’s human resources with its strategic objectives and goals (Bagga & Srivastava,
2014). The purpose of such linkage is to improve the business performance of the
organization. One way in which human resource strategy can align with business strategy is
through strategic recruitment and selection (Bagga & Srivastava, 2014). Under this strategy,
recruitment and selection is done in a manner that fulfills the organization’s strategic demands.
Another way that human resource strategy can align with business strategy is through
strategic training and development. The process of designing training program and actual
training of employees is done with the goal of making them capable of performing in
accordance with the organization’s business strategy (Bagga & Srivastava, 2014).
Additionally, the effectiveness of the outcomes of training program is evaluated based on
whether the outcomes contribute to the organization’s business strategy.
Lastly, the alignment can also be achieved through strategic performance management
(Bagga & Srivastava, 2014). Such management ensures that the performance of employees is

ALIGNMENT OF HUMAN RESOURCE WITH BUSINESS STRATEGY 3
linked to the organization’s goals. For instance, employee motivation has to be in alignment
with the expected results of the organization.

Ford’s HR Job Positions and Responsibilities

Ford has a large number of HR job positions. All these jobs can be grouped into two
broad categories. These are operational HR or business support and employee relations. The
duties of the positions that fall under operational HR include partnering with line managers so
that they get an understanding of what is required to ensure smooth business operations (Ford
Motor Company, 2019). Based on this understanding, they provide various forms of support
which include appropriate workforce development as well as planning.
As for employee relations, the HR staff work closely with personnel in the
manufacturing facilities as well as their union representatives in order to ensure effective
management of employee relations (Ford Motor Company, 2019). Additionally, employee
relations staff provide advice to line managers on the best way to implement the organization’s
policies that are related to matters affecting employees.
Preferable HR job position

The HR job position that I would prefer is one related with employee relations,
particularly labor relations. I am naturally a diplomatic person who is good at diffusing
tensions, conflict resolution, fostering of harmonious relations in a group of people. These
personal attributes make me a good fit for managing any issues raised by the employees
themselves or their union representatives.
How Ford Motor Company Can Establish HRM Strategies to Improve Competitive

Advantage

ALIGNMENT OF HUMAN RESOURCE WITH BUSINESS STRATEGY 4
Ford Motor Company is in an intensely competitive automobile industry. Its
competitive advantage is the use of advanced technology in its products, an excellent research
and development, and a large pool of skilled engineers (Shein & Bell, 2017). HRM strategies
can help improve the company’s competitive advantage in multiple ways. Through strategic
recruitment and selection the company can focuses on organization fit instead of job-fit alone,
Ford will be able to attract and retain talented engineers and researchers for a long time thus
avoiding disruptions created by high turnover.
Employing strategic training and development can also help Ford Motor Company
improve its competitive advantage. The training should not seek to impart newly hired
employees with the appropriate skills but also help them develop critical thinking skills
needed for innovative teams. In this manner, Ford Motor Company will continue using
innovation as a means of meeting the needs of customers.

Three Ways the Company Can Increase Diversity

Increasing diversity in an organization does more than just fulfill its legal obligations.
It also improves its image, helps it provide effective and culturally sensitive services to
customers, and improves its competitive advantage (Flory et al., 2019). Ford Motor Company
can increase its diversity using a number of ways.
One of them is through including details in their job advertisements that are likely to
attract applicants from women and minority groups. For instance, culturally sensitive language
should be used when describing why Ford Motor Company is an excellent place to work.
Another way of improving diversity is through providing diversity training for all of
the company’s employees (Flory et al., 2019). Through such training, employees will know
the benefits the company enjoys by having a diverse workforce. They will also learn how to

ALIGNMENT OF HUMAN RESOURCE WITH BUSINESS STRATEGY 5
use culturally sensitive language so that employees from diverse backgrounds feel welcome at
the company.
Lastly, the company should encourage accommodation of diversity through trying to
meet the needs of women and minority groups (Flory et al., 2019). For instance, it can offer
childcare subsidies and onsite daycare facilities for mothers working at the organization. It can
also make its schedules flexible so that mothers may also work at home and take care of their
children.

Conclusion

Businesses can improve their performance by linking human resource with the
strategic goals of the business. This linkage should be reflected in all HR functions such as
recruitment and selection, employee training and development, performance management, and
performance appraisal. By employing these strategies, Ford Motor Company can significantly
its competitive advantage in the automotive industry.

ALIGNMENT OF HUMAN RESOURCE WITH BUSINESS STRATEGY 6

References

Bagga, T., & Srivastava, S. (2014). SHRM: alignment of HR function with business
strategy. Strategic HR Review.
Flory, J. A., Leibbrandt, A., Rott, C., & Stoddard, O. (2019). Increasing workplace diversity:
Evidence from a recruiting experiment at a fortune 500 company. Journal of Human
Resources, 0518-9489R1.
Ford Motor Company (2019). About Us. Retrieved on 19 th April 2020 from
https://corporate.ford.com/company/history.html
Shein, J. B., & Bell, M. (2017). At ford, turnaround is job one. Kellogg School of Management
Cases.