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

Posted by hgsba on February 7, 2018

The partnership between human reference practices and a provider’s business strategy are aligned corectly in many ways. The best goal of the position is to use human being capital as instrument to maximize the organization resources for the benefit for the stakeholders. Below are some of the partnership between human resource practices and business strategy. Agil


Human resource practices create the method for the development of employees’ knowledge and the skill-set over the corporation to promote its main competencies that support as well as its competitive advantage in the marketplace. The term “strategic HRM” is the new theme in the management of modern organization that is anchored on the strategy 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 corporation is meant to highlight 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 corporation can be achieved. Major is directed on the actual business intentions are as they relate to individual resource policies and methods. Therefore, how human reference is spread over 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 methods 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 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 not recognize the deeper nature of the relationship. The theory of human resource management opined that should employees be considered and maintained as a valued tactical 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 accordance to Oya Erdil & Ayse Gunsel, this marriage is further entrenched when anyone looks at how human resource practices are selected based on competitive strategy espoused by the organization. A business that harmonizes its business strategy and human resources policies and practices achieve a superior performance outcome than those which in turn 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 advantage (human beings) when their business strategy is aimed using its human resource apply. 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 collection of competency measurement tools. They are able to assist employees to know 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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