The organization has a strategic plan to increase the sales of its software prod

Question

The organization has a strategic plan to increase the sales of its software products. Also, to hire fifty more employees in the current year. These goals are both directly and indirectly linked to the HR functions.

--To increase the sales of the company software products.

--To hire fifty more workers

In the case of the first goal, it is directly associated with the sales and marketing functions, and has a direct as well as indirect link with the HR function. In order to improve the sales, the sales personnel associated with this role should be given various kinds of training; initial trainings like inductions, periodic training upon performance appraisals for low performers. Also, it is the responsibility of the HR department to conduct and organize periodic performance appraisals for their employees.

The second strategy which directs to talent acquisition is directly linked to the HR function.

In order to achieve these strategic goals of the company, definitely HR has to map out a strategic plan.

The role of HR in both these goals of the company are discussed in detail.

Strategy on Talent acquisition

In order to acquire the right candidates, firstly HR has to understand the sales strategy of the company. It is directly linked to both the goals of the company. The HR has to understand what kind of products are produced by the company, the segmentation strategies of the company, the promotion and distribution channels etc. These have to be studied by the HR along with the sales department to determine what kind of talent have to be recruited for the company. Basically, the HR has to focus on three basic aspects of sales. Similarly, HR have to work according for other departmental recruitments too in order to acquire the right talent.

Product, customers

HR should have a knowledge of the high performing products, the segmentation pattern of the customers and the sales strategies to acquire the customers.

Company strategy

HR should plan the number of sales employees required for their sales and distribution channels and the targets they aim to acquire on a daily/weekly/monthly basis etc. Further, HR should understand the revenue that the company is trying to earn in the next two-three years.

Sales resources

Further, HR should analyze and determine the pay structure, allowances, benefits for the sales personnel to drive results. They should analyze the current performance indicators and determine the future performance strategies to derive results from sales. Accordingly, they have to determine the what kind of talents they need to acquire for the sales as well as for achieving other company goals. In addition to that, HR have to determine the performance potential of the existing employees. If their performance is poor, they have to take steps to give them training or transfer to the function where are likely to perform. All these aspects should be considered while developing an HR strategic plan with regard to talent acquisition.

Therefore, the HR department has a role in determining the performance benchmarks for the sales personnel based on the sales strategies to increase sales. HR have to recruit sales people based on the sales, product, customers and company goals. They have to analyze the performance potential of the candidates by analyzing their past achievements, leadership and behavioral traits.

Therefore, both the goals of the company are almost directly linked to the HR functions in terms of mapping HR strategy in Talent acquisition and increasing sales.

HR STRATEGIC PLAN

For revenue generation

Many studies have found that about twenty percent of the sales employees are top performers who generate about 55 percent of the revenue. Medium performers constitute around sixty percent and generate around forty-two percent of the revenue. Low performers comprise of twenty percent of sales force who produce only three percent of the revenue.

Based on these results, HR can devise how many employees they need to recruit, say 50.

The revenue generation plan shall be

To recruit eleven employees who fall to top performer category, thirty employees who belong to medium performers category and recruit freshers who have the potential to perform upon giving the right training. They could move to top performer or medium performer category in future.

The above plan can be considered as a strategic plan f of HR for the revenue generation as well as recruitment.

Thus by working towards these goals, HR enables the organization to achieve the mission as well as strategic goals in the long run.

Explanation / Answer

Consider a medium sized IT organization that faces intense competition. Two of the organizations goals derived from its strategic plan are as follows:

To increase the sales of the company software products

To hire 50 more workers during the calendar year

Determine if the goals are directly or indirectly linked to HR functions.

Create a draft HR strategic plan using the steps outlined in the text and the organizations strategic goals.

Include the HR strategy in the plan.

Include a description of how creating the HR strategic plan enables the organization to achieve its mission and strategic goals.

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