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The Extent to Which Hrm Practices Should Be Designed to Fit with the Business Strategy

Autor:   •  March 8, 2011  •  Essay  •  500 Words (2 Pages)  •  3,296 Views

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Business Strategy can be defined as the direction in which an organization wishes to move and establishes the framework for action through which it intends to get there. The purpose of the strategy is to maintain a position of advantage by capitalizing on the strengths of the business and minimizing on the weaknesses. On the other part, According to Fisher, Schoenfeldt and Shaw (1999) Human Resource management involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization". Careful attention should be paid to how an organization manages its human resources, due to the fact that employees are the ones who enable organizations to achieve their goals and can affect their productivity levels and success. These activities, covers a wide range of employment practices, including recruitment, selection, performance appraisal, training and development and the administration of compensation and benefits.

By merging the HRM function with business strategy, it reflects a more flexible arrangement and utilization of human resources to achieve the organizational goals, and therefore helps organizations to gain a competitive advantage. Don't understand how?

There is a close connection between human resources management and business strategy, which in turn refers to the business environment and organizational development. It is widely accepted that a company's human resource management (HRM) practices should be matching to the strategy of the whole company. Although nobody disagrees with the importance of such a correlation, the deeper nature of this relationship takes remarkably little attention. If people are considered and managed as valuable strategic resources, the firm can achieve a competitive advantage and as a consequence demonstrate superior performance .This means that the management of human resources should be corresponding to the firm strategy, as the goals


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