Relationship between Human Resource Management and Business Strategy within a Business Organization

The relationship between human resource management and a company’s business strategy are aligned in lots of ways. The best goal of the position is by using real human capital as a tool to maximize the business resources for the betterment of the stakeholders. Here are some of the relationship between a human resource and business strategy.

Strategic Human Resource Management

Human Resource Management creates the procedure for the introduction of employees’ knowledge and the skill-set over the organization to market its key competencies that support and keep maintaining its competitive benefit on the market. The word “strategic HRM” is the new design template in the management of modern business that is anchored on the idea that the most effective asset a business provides itself is HR, since it’s the tool that is in charge of the coordination and execution of other factors of creation that encourage corporate and business performance.

What the strategy adopts by a business is intended to showcase how its plan to succeed utilizing the factors of development at its removal to create a competitive gain, strategy-business. Business strategy helps to identify the way that the business wishes going with regards to its environment. Human resource strategies control human resource so the goals established by the business may be accomplished. The concentrate is aimed at what the business enterprise motives are as they relate to human resource procedures and techniques. Therefore, how the human resource is multiplied by the organization’s departments, encouraged, managed and maintained will impact the performance following the business strategy has been carried out. The relationship between business strategy and human resource management also would determine the business competitive and performance final result.

Business Strategy and Human Resource Strategy- The Relationship’ shows there’s a connection between human resource management routines and a business strategy, which also could be known as the business enterprise environment and organizational development. Another determining facet of that relationship is the over the board acceptance an organization’s human resource management procedures have a link to the firm’s decision-making process, quite simply, the HR management be tightly aligned with the strategy of the complete business. Since there is very little disagreement as regarding the relationship between HR tactics and business strategy, there’s a tendency never to recognize the deeper dynamics of the relationship. The idea of human source management opined which should employees be looked at and supervised by a respected strategic asset, the business in practice can achieve a competitive benefit, and the results are a superior performance. This again means taking care of human resource so that it’ll correspond to the business enterprise strategy, being that the goals and procedure for each one of the strategy profiles will vary.

This relationship is further entrenched when you look at how human resource management is selected predicated on competitive strategy espoused by the business. A business that coordinates its business strategy and recruiting policies and techniques achieve an excellent performance result than the ones that do not.

Aligning Performance Management to Strategy and Culture

Aligning performance management with business strategy – some companies might not find the main element factor that links performance management to strategy and culture, for this can be an organization’s prevailing culture and methods that will determine the maximum use of its valuable advantage (humans) when its business strategy is aligned using its human resource procedures. The proper tools are needed if companies are to achieve aligning their human resource management to its business strategy. The time of using performance review and appraisal as really the only tools for performance, management alternatives have since been replicated with a complete collection of competency way of measuring tools. These tools can assist employees to comprehend the means and learning resources by which they can effectively develop their skills and expertise. Technology is one of the enablers but needs determination from the top down that is very important to a higher performance culture.


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