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HR Policy and Business Strategy PDF
HR Policy and Business Strategy PDF
Many organizations consider employees and people are the most important
asset to the company. However, the policies, procedures and managerial
practices they deploy are contradicting to that view. This will have tremendous
impact on employees commitment to organization and subsequently
influence their motivation, productivity and performance in the organization.
Therefore,
understanding
people
management
is
important
for
an
strategies
Effective HRM policies are important in supporting business strategies (Figure
2). Many empirical studies have proven that HR practices and policies play a
pivotal role in supporting business strategies hence realizing business
objectives (Takeuchi, N. 2009; Sanz-Valle et al 1999; Wang et al 2001; Yeung
and Bernma 1997; Pfeffer 1994). HR is needed to identify the type of skills
and knowledge the employees need to carry out business strategy.
Successful companies like 3M, Motorola and AT&T designed human resource
strategy to help implement business strategy (Seibert et al 1995; Plevel et al
1994).
Effective HR
positively
with
the
speed
of
product
development
and
HRM policies
There are a few researchers questioned about the logical and linear
relationship between organization business strategy and HRM strategy and
policies (Monks & McMackin 2001). According to Legge 1995, aligning
business strategy and HR strategy is not logic as managerial behaviour could
be uncoordinated, fragmented and ad hoc. The interpretations and
implementations
of
HR
practice
that
dominate
traditional
business
4. Conclusion
To achieve the distinctive competitiveness of a company, it is important to
align business strategy with HR strategy so that each employees
competences is maintained or even improved. An organization not only needs
to response to market development, but also to be proactive in order to set
the market trend. In achieving this, HRM needs to ensure that it provides
value that is unique and difficult to copy with appropriate system in place.
Aligning HR strategy and business strategy have been proven to promote
employees loyalty, trust, and ultimately enhance companies overall
performance. However, it is critical to consider external conditions and internal
structural contradictions in the organization to ensure effective HRM