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How to link HR policies & procedures with business strategy?

​By Mansour Baker, SHRM-CP

Posted 17 January 2018   |   ​Revised 29 January 2020

Purpose of the HR Manual

​The human resources policies and procedures manual aims to assist employees in implementing a company policies and procedures consistently. The Human Resources Department will ensure that all employees understand the operational implications of the policies and procedures. All employees will be fully briefed with the details of the policies; department managers should take appropriate time to ensure they are implemented within their own department. 

Enhancing the HR Manual

​This human resources policies and procedures manual are intended to be an evolving document with additional policies and procedures being added when necessary. As a company evolves, it is anticipated that existing human resources policies and procedures may require amendment and new human resources policies and procedures need to be introduced.  

Format of Human Resources Policies and Procedures Manual

This human resources policies and procedures manual is made up of numerous documents that address specific policies into the sections described below:

• Purpose: describes the main purpose of the policy document.
• Scope: describes policy document scope.
• Definition: defining any specific definition
• Policy: describes the specific principles and rules adopted by a company to govern its activities. 
• Procedure: describes sequenced activities to be performed according to the policy.
• Responsibility: describes who is responsible
• Reference: referencing a policy document or manual
• Documentation: a form or application
• Change Record: what changes have been made

Operational Objectives

​The operational objectives of the human resources policies and procedures manual are to:

• Properly define and document human resources policies and procedures;
• Familiarize employees with the human resources policies and procedures related to their work;
• Ensure the efficiency and effectiveness of controls across a company;
• Ensure the reliability of information and facilitate the decision-making process at a company;
• Limit disputes between employees and management regarding human resources policies and procedures; and
• Eliminate non-value-added activities and duplication of effort.

How to create a best-fit strategic framework linking human resources policies with business strategy

Company Strategy

​Human resources policies and procedures will be designed in line with the company strategy and targeted growth model; they will serve as an enabler to the implementation of the operating model and the execution of the strategy.

Human Resources Policies and Procedures

Policies will also consider ‘best practice’ from similar companies globally and regionally. The “basic” policies will be provided as a baseline whereas the most “progressive” policies will be given as an aspirational indication.

Local Conditions of Service

Policies and procedures will also be adjusted to the operating environment, culture, location and aspirational workforce shape.

Exhibit 1

Linking HR Policies with Business Strategy 

HR Manual Development Questionnaire

1. How do you envision the human resources philosophy and framework in the future?
2. How would you describe the best-fit human resources policies and procedures for the company? 
3. Would they be flexible? 
4. Allow for strong internal control? 
5. Would they be based on a clear differentiation by organizational level or would they apply in the same way to all employees?
6. What are your priorities in terms of policies and procedures? 
7. How are you planning on using them? 
8. Any critical areas that need to be focused on in priority?
9. What type of benchmarks you like to conduct?

Next Steps

1. Integrate input and guidance from company management into policies design;
2. Draft 3 to 4 “pilot” policies and submit them for review;
3. Highlight any changes in the direction, format, wording, etc.;
4. Integrate changes; and
5. Develop the remainder of the manual, design the relevant HR forms and submit for review & approval.

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