There are three main reasons why aligning human resource functions with the strategic plan in an organization is essential. First, the alignment has, in the past, proven to boost employee satisfaction and performance. This argument is proved by the change in employee culture when Maersk started training its employees and transferring them across departments. Conversely, the strategic decision for Maersk to change its policy on not firing made the employees work harder the fear that underperformance would make them lose their jobs (Groysberg & Abbott, 2012). Secondly, the human resource function should be aligned with the organization’s strategic plan to reduce high employee turnover (Snell & Morris, 2018). Workers who feel they are not part of the organization’s goals could seek employment elsewhere or underperform. This would bring a negative impact on the organization’s strategic plan. Finally, managers should ensure they align the strategic plans with their hiring criteria (Snell & Morris, 2018). Failure to do so results in issues including privacy, work-life balance, and increased employee turnover.
The change of Maersk from a family-owned business to a publicly traded conglomerate has dramatically impacted its human resource management. The competition in the labor market has resulted in many of its well-trained employees leaving (Groysberg & Abbott, 2012). This has made the managers reconsider if training employees is a good decision for the company. Training employees is expensive, and training them only to have them leave within five years could have a negative financial impact. The human resource management in Maersk has also changed from only hiring internal employees for senior management positions to considering hiring from outside. The recent industry changes have also changed the Danish conglomerate from never rehiring former employees (Groysberg & Abbott, 2012). Finally, Maersk’s customer base continues to be more diverse with each passing day, so the organization’s HR team has had to recruit diverse employees to serve this customer base better.
References
Groysberg, B. O. R. I. S., & Abbott, S. (2012). AP Møller-Maersk Group: Evaluating strategic talent management initiatives. Harvard Bus Sch Case, 2012, pp. 412–147.
Snell, S., & Morris, S. (2018). Managing human resources. Cengage Learning.