High Performance Culture as a Strategy in Human Resource Management

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Question

How is Human Resource Management linked to strategy and organizational outcomes? Discuss a model that depicts the links with a brief discussion of each link.

For an organization to be successful, it must employ good strategies in the running of its business. Strategies are needed to achieve the company’s objectives and give it a competitive advantage against its competitors. It determines the direction in which the organization is going in relation to its environment and how the business develops. Strategies are further segregated into corporate or business strategies where the focus is the formulation of plans and ideas to improve and increase its market share, and internal management strategies which essentially determine how the company manages its resources in order to maximize its contribution to the organization’s success.

Human resource is a fundamental need of each organization. For a company to be successful, it must have good human resources or people to carry out its objectives, its mission and vision. No matter how well it had formulated its strategies and business plans, a company will not succeed without the right people behind its helm and helping it to run the business.

Strategic human resource management is concerned with the relationship between human resource management and strategic management in the company. Its main focus is to address issues relating to organizational effectiveness and performance, being able to project future needs and to take proactive actions to match resources to future requirements. The need to have a knowledgeable, well trained and experienced workforce makes people development an important aspect of every organization’s strategic planning.

The fundamental aim of strategic human resource management is to ensure that the organization has the skilled, committed and well motivated employees it needs to achieve its vision and mission and to allow it a competitive...
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