Explain the Linkages Between Business Strategy and Human Resource Management

Topics: Human resource management, Strategic management, Management Pages: 4 (1333 words) Published: September 4, 2013

Organisational strategy relates to company missions, where the Strategic Human Resource Management (SHRM) works towards the organisational strategy by acknowledging all the internal and external factors tactically to achieve the organisational goal. There are various approaches to organisational strategy (internal and external) applied by organisations to produce an infrastructure which matches opportunities offered by the market, in order to ensure future success and benefits greater than other competitors. This paper will demonstrate the relationship between Business Strategy and Human Resource Manager through a range of strategic approaches utilised by the organisations. SHRM is defined as "the pattern of planned human resource deployments and activities intended to enable an organization to attain its goals" (Wright and McMahan, cited in Allen and Wright,2006,p.4)which suggests that employees add strategic value by contributing to the performance and sustainability of a business. An organisation strives to maintain a balance between environmental constraints and requirements, and SHRM actions allow the company to outperform its competitors. SHRM identifies the organisational vision and strategy by considering a range of business issues and incorporating their activities purposefully to achieve the business strategy. Guest (cited in Verma,2012 ,p.2) suggested that SHRM is concerned with ensuring that "human resources management is fully integrated into strategic planning; that HRM policies cohere both across policy areas and across hierarchies and that HRM practices are accepted and used by line managers as part of their everyday work". In other words, SHRM is the macro-organisational approach to viewing the role and function of HRM in the larger organisation (Butler et al. ,cited in Verma,2012 ,p.2) The first external model is the classical approach, commonly referred to as ‘Positioning School’. According to Schuler et al (cited in Mortimer and...
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