HRM530 Assignment 1

Alignment of HRM and Business Strategies

Introduction

Discount retailing is a fiercely competitive industry rarely cited for its progressive human resource practices (Ramlall, 2006). In an industry with relatively low wages, they bear the chronic burden of the revolving door of hourly store-level employees as well as high turnover which exerts continual pressure to attract, retain, and develop a sufficient stream of qualified new leaders at all management levels (Ramlall, 2006). This being said, it may come to a surprise to learn that one discounter, Target Corporation, manages its workforce as a source of value to be optimized, rather than as a cost to be minimized. It is part of a successful formula that has made it the second-largest discount retailer and a performer among its competitors such as Wal-Mart, Kmart, and Sears. The company views all its 323,000 team members worldwide as ‘keepers” of the “Expect More. Pay Less” brand experience for guests, and thus a source of competitive advantage.

Ensuring the HR Strategy is in Alignment with the Business Strategy

With regards to human resource management in organizations, there are two types of strategy (Stewart & Brown, 2004). The competitive business strategy focuses on choices and actions about how to serve the needs of customers, the human resource (HR) strategy focuses on choices and actions concerning the management of people to ensure high organization effectiveness (Stewart & Brown, 2004). In an industry where merchandise can be quite similar, where stores are located in relatively close proximity to customers, where prices are comparable, and where the opportunity exist to purchase online, how can and how does Target differentiate itself and its products from every other retailer (Ramlall, 2006)? Well, through their business strategy. According to Target’s Corporate website the Target Corporation is an upscale discount retailer that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and guest friendly stores. The company’s employees are the “keepers” of the “Expect More. Pay Less.” brand through all the service they provide from merchandising and marketing to the store environment, guest services, systems, and distribution infrastructure (Ramlall, 2006). Therefore, the company’s value proposition and the speed with which new strategies deliver operating results are dependent on the company’s human assets and their capabilities (Ramlall, 2006). I firmly believe that in order to ensure the HR strategy is in alignment with the Business Strategy the HR team must fulfill the mission by investing in employees/ambassadors of the company’s brand.

HR Job Positions and Responsibilities and My Preference

Target is well-known for its ability to build the very best teams and infusing its work with Target’s distinctive brand by continuously experimenting, evolving and innovating. The human resources team members positively impact hundreds of thousands of people worldwide across their stores, distribution centers, so they can elevate and nurture their guest experience.

· Pay and Benefits: These team members produce extensive benchmarking, rigorous market research and benefits analysis to inform the right compensation mix for roles across the company.

· HR Operations: These team members focus on the powerful and innovative systems and technologies that team members depend on to manage both work and life. Whether it’s time reporting or team member training, these critical systems keep things running smoothly.

· Strategy & Operations: These team members own many of the essential functions that support team members’ experience of working at Target.

· Talent Acquisition: These team members missions will be to attract new talent and launch people in roles that let them shine. The recruiters accompany candidates along the new team member journey, from the very first engagement to day one on the job, and beyond.

· HR Generalist: These team members will be a strategic partner for leadership and a valuable resource for team members whether through onboarding, performance management or giving leaders and team members the guidance that they need to be successful.

· Learning and Development: These team members work on the systems and content with which people learn everything they need to be successful in their roles. From call centers and onboarding classes for systems, processes and tools, to ongoing support for new program rollouts these team members are the learning champions for the entire organization.

· Diversity& Inclusion: These team members establish and cultivate internal and external partnerships to make sure Target reflects diversity of the communities we serve. Support team members in connecting with each other both personally and professionally.

At Target, my HR position of choice would be the HR Generalist. My passion lies in managing the day to day operations of a Human Resources office, to be a book of knowledge in policies, procedures and programs. In Target that could be in a distribution center, or a local store, or in a division in the corporate office. So many ways I can be a leader and a valuable resource to all the team members I may have the pleasure to work with day in and day out.

Establishing HRM Strategies to Improve Competitive Advantages

At Target, whose brand success rest on quality, excitement, service, and innovation, all driven by the company’s people, HR strategies are the lever for building the sources of competitive advantage and creating value. The formal mission of Target’s HR Team is to “drive company performance by building a fast, fun, and friendly team committed to excellence (Ramlall, 2006).” By fulfilling the Target philosophy and mission that employees are the keepers of the brand, Target can establish strategies to improve competitive advantages. They can do this by investing in the four core functions of organizational culture, staffing, employee development, and employee retention. By focusing on those four core HR function areas, Target will create value for customers and other stakeholders through its role in building an effective, stable, and high-performance company committed to guest satisfaction.

Increasing Diversity

Diversity and Inclusion can make teams and Target better. It can make a business stronger, build a talented team, and help towards the contribution toward a more equal society. Three ways Target can increase diversity is first by engaging in the community, through teaming up with key organizations to strengthen the diverse needs of the communities Target serves. Secondly, by building a diverse team through working with different organizations such as National Society of Hispanic MBA’s and National Black MBA Association, and government programs to hire members of the military, and with in-store kiosks, which will help encourage guests to become team members, so the store teams can reflect the communities they serve. Lastly, by making authentic connections through creating diversity and inclusion councils, which provide onboarding, networking and professional development opportunities for team members.

References

Stewart, G.L., & Brown, K.G. (2014). Human resource management: linking strategy to practice. Hoboken, NJ: Wiley.

Social Responsibility, Careers, Press, Investors. (n.d.). Retrieved January 20, 2018, from https://corporate.target.com/

Ramlall, S. J. (2006). Strategic HR management creates value at Target. Journal of Organizational Excellence,25(2), 57-62. doi:10.1002/joe.20090