Strategic Integration Of Human Resource Management

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Recommended: Understanding the link between organizational strategy and human resources

Human resource management is a strategic and reasonable approach of an organization’s management of its assets and the people working towards the achievement of its objectives.
Strategic integration is the most significant feature of HRM; it’s a major approach by which organizations demonstrate their ability to incorporate HRM into its strategic idea, to guarantee that the different aspects of HRM adhere, and to accommodate line managers to fuse a HRM point of view into their basic leadership (David Guest, 1987, 1989, 1991). According to Schuler 1992, Strategic Human resource management involves logically linking the people with the organization by incorporating HRM strategies into business strategies. Holbeche, 1999 and Schuler and Jackson, …show more content…

Integration of Human resource into the business strategy has a number of benefits, which among them are; guarantee complete implementation of organisations strategy, give a wide range of solutions for resolving the complex administrative problems, playing crucial role in attaining and maintaining successful organisational performance, making sure that all technical, financial and human assets have equal consideration when setting the organizations objectives and measuring the ability to implement the set objectives, providing a permanent focus to Human resource management and helping the business to reach competitive advantage (Budhwar and Sparrow, 1997; Truss et al., 1997; Budhwar, 2000a; 2000b).

There exists a criteria which can be used to evaluate the extent of integration of Human resource into the business strategy, they include; presentation of specialist personnel manager, existence of a clearly written strategy on personnel management, development of a business strategy ( in consultation with the human resource management specialist ) in line with mission statements, aligning human resource strategy with corporate needs through business organization process, participative administration process and board meetings and human resource …show more content…

According to him, the two levels by which Human resource can integrate into business strategy are; First order decision (upstream) and second order decision ( down stream). First-order decisions, is mainly concerned with addressing the long term direction of the company; they give emphasise to where the company is going, what kind of actions are important to guide a future action, and wide Human Resource oriented issues aimed to impact on the long term. Second-order decisions are concerned with scenario organization at strategic and divisional levels for 3–5 years. This is a downward consideration that involves for example; a company acquiring a new company, a second set of considerations are such way to integrate the new operation or to separate from the old

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