Alignment of Business Strategy and Human Resources Strategy.

 Alignment of Business Strategy and Human Resources Strategy.

 

(Lucid Content Team, 2022).

 

1.1 Definition of Business Strategy & HR Strategy.

A strategy is the different plans or actions that are implemented in an organization in order to achieve organizational goals and objectives.  

A defined set of plans, actions, and goals that outline how an organization will compete in certain markets with a product or service in known as a business strategy (International Institute for Management Development, 2021).

A strategy that is adopted in order to integrate core human resource aspects like organizational culture, business partners, employees and the overall system by coordinating a set of procedures to achieve a business goal is defined as a HR Strategy (MBA Skool Team, 2021). 

There are 4 types of HR strategies which are shown below.


 

Figure 1: The 4 types of HR strategies. Source: (Oppong, 2017).

1.2 The HR Strategy Dimensions.

To develop an HR Strategy there are four key factors to be addressed.

  • Culture – Culture stands for beliefs, management styles, norms, and rules
  • Organizations – This factor refers to the structure, job descriptions and job types and reporting lines.
  • People - The people are the organization itself. Their skill level, potential and the managements capabilities constitutes the employees.
  • HR system – The HR system is the mechanism that delivers the suitable strategy for the organization that focus on its people including recruitment, training, and communications (MBA Skool Team, 2021).


Figure 2: Dimensions of HR Strategy in the Era of Competitive Potential. Source: (Snell , 2000).

 

1.3 The importance of Human Resource strategy. 

To improve aspects such as training, compensation benefits, in order to facilitate employees in a better way the organization must be reviewed in order to create entrepreneurial and creative flair within the employees’ work. An HR strategy will ensure that all core aspects of the Human Resource management is in sync an aligned with the overall strategy (MBA Skool Team, 2021).

The HR strategy and Business strategy defines the organizations performance in where the managers must be responsible in developing a clear and internally consistent strategy for the organization while being able to combine the elements of different strategies to the degree organizational resources allows them to do so.

 

 

 


 

References

Bibliography

MBA Skool Team, 2021. HR Strategy Meaning, Importance & Example. [Online] 
Available at: https://www.mbaskool.com/business-concepts/human-resources-hr-terms/15240-hr-strategy.html
[Accessed 24 04 2022].

Lucid Content Team, 2022. Aligning human resources and business strategy. [Online] 
Available at: https://www.lucidchart.com/blog/aligning-human-resources-and-business-strategy
[Accessed 24 04 2022].

Oppong, N. Y., 2017. The four HR strategies.. [Online] 
Available at: https://www.researchgate.net/figure/The-four-HR-strategies_fig1_312075521
[Accessed 24 04 2022].

International Institute for Management Development, 2021. What is Business Strategy?. [Online] 
Available at: https://www.imd.org/imd-reflections/reflection-page/business-strategy/
[Accessed 24 04 2022].

Snell , S. A., 2000. Dimensions of HR Strategy in the Era of Competitive Potential. [Online] 
Available at: https://www.researchgate.net/figure/Dimensions-of-HR-Strategy-in-the-Era-of-Competitive-Potential_fig1_37151621
[Accessed 24 04 2022].

 

 

Comments

  1. Dilini MBAMay 5, 2022 at 7:05 AM

    As discussed, Aligning HR with business strategy can improve employee satisfaction and performance, ensuring that teams are working together to assist the company accomplish its strategic goals, and strengthen HR's influence and decision-making power across the organization. Good article.

    ReplyDelete
  2. Kawshi M. Perera ♥️May 6, 2022 at 8:34 AM

    HR gets a strategic focus and helps prioritize goals by aligning with the business plan. Get the best people on board: While good talent is always in demand, businesses may need to invest in different skill sets or jobs at different periods.Well written !!

    ReplyDelete
  3. Amjad AboobakarMay 7, 2022 at 2:12 AM

    Both should be parallel, to achieve the business strategy HR strategy is vital. Getting the right people in right place and moulding them is a key factor to achieve common goals. Good work.

    ReplyDelete

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