Alignment of HRM and Business Strategies Essay
Human resource strategy refers to the human capability of an organization to meet the future needs of its external and internal environment (Dhar, 2008). HR strategy may be planned, emergent, or a combination of the two. The concept of strategic human resource management is predicated on the belief that human resource strategies should be integrated with business strategies. For this relationship to exist, it is necessary to ensure that management initiatives in the field of HRM are consistent with those decisions taken in other functional areas of the business. HRM strategies should also be consistent with the analysis of the product-market situation. The key is to make operational the concept of fit. That is, the fit of human resource of management with the strategic thrust of the organization (Ulrich, Losey, & Miesinger, 2005). Congruence of HRM and business strategies means aligning HR strategies to the strategic orientation of the firm. Different orientations establish the need for different types of people and require changes in approaches to investing in the organizational human capital. In any organization, the core responsibility of the HR is to formulate HRM strategies that correspond with the business’s central principles (Dhar, 2008).
How to Ensure Hr Strategy Is In Alignment with the Business Strategy
A fundamental requirement in developing HR strategy is that it should be in alignment to the business strategy and should fit the organizational culture (Wang & Shyu, 2008). The approaches to the development of HR strategies are configurational, contingency, and universalistic policies. The starting point in the formulating HR strategy that is in alignment with the business strategy involves consultative decision making between the top management and the HR. The management does not usually involve the HR in formulating business strategies (Wang & Shyu, 2008).
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