The Relationship Between Human Resource Practices And Business Strategy In A Business Organization

Posted by hgsba on April 3, 2018

The partnership between human source practices and an industry’s business strategy are aligned corectly in many ways. The supreme goal of the positioning is to use individual capital as instrument to maximize the organization possessions for the benefit for the stakeholders. Below are some of the partnership between human resource practices and business strategy. click here


Human resource practices create the task for the development of employees’ knowledge and the skill-set over the corporation to promote its key competencies that support and look after its competitive advantage in the market. The term “strategic HRM” is the new design template in the management of modern organization that is anchored on the idea that the most valuable asset an organization provides itself is HR, since it is the tool that is in charge of the coordination and implementation of other factors of creation that spurs corporate performance publications

The business strategy adopts by an firm is meant to show off how it intend to succeed by using the factors of production at its disposal to build a competitive advantage, strategy-business. Business strategy helps to identify the direction that the organization wishes to go in relation to its environment. Human source strategies manage hr} supervisor so that the goals set by the business can be achieved. Major is directed on the particular business intentions are as they relate to man resource policies and procedures. Therefore, how human reference is spread through the business’ units and departments, encouraged, managed and retained will affect the performance end result after the business strategy has been implemented. The relationship between business strategy and hr} manager procedures also would determine the organization competitive and performance outcome.

A glimpse into Oya Erdil & Ayse Gunsel’s ‘BUSINESS STRATEGY AND HR} MANAGER STRATEGY- THE INTERACTION’ shows there is a relationship between hrm practices and an firm business strategy, which also could be referred to as the business environment and organizational development. One more defining aspect of that relationship is the across the board acceptance that an organization’s human useful resource management practices have a link to the business’s decision making process, basically, the HR practices be closely aligned with the strategy of the complete business. While there is not much disagreement as pertaining to the romantic relationship between HR practices and business strategy, there is a tendency to never admit the deeper nature of the relationship. The theory of human resource management opined that should employees be considered and handled as a valued proper asset, the organization in practice would be able to acquire a competitive advantage, and the end result will be a superior performance. This again, means taking care of hr} manager in such a way that it will correspond to the business enterprise strategy, being that the goals and process of each of the strategy profiles are different.

In respect to Oya Erdil & Ayse Gunsel, this romance is further entrenched when anyone looks at how human resource practices are selected based on competitive strategy espoused by the organization. A business that runs its business strategy and human resources policies and practices achieve a superior performance outcome than those which experts claim not.


As explained by Rob Gray’s ‘Aligning performance management with business strategy, ‘ some employers could be missing the key factor that links performance management to strategy and culture. For it is an organization’s prevailing culture and practices that will determine the optimum use of its valuable property (human beings) when it is business strategy is aimed having its human resource habits. The right tools are needed if employers are to succeed in aiming their human resource management to its business strategy. The era of using performance review and evaluation as the only tools for performance, management alternatives have since been duplicated by a complete package of competency measurement tools. They are able to assist employees to comprehend the means and learning resources through which they can effectively develop their skills and talent. Technology is one of the enablers but needs commitment from top down that is important for a high performance culture.

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