The Influence Of Human Resource Strategy And Business Strategy

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1.0 INTRODUCTION
Contrary to traditional beliefs, recognition and integration of the link between human resource (HR) strategy and business strategy, or rather, strategic human resource management (SHRM) can contribute to the success and establishment of a business. The first half of this report will draw attention to and examine the importance of having a close relationship between the two named strategies. Bratton and Gold (2007), suggest that SHRM can improve performance by connecting the strategic goals of the business to the HR functions. Be it in a management or academic literature, the proactive nature of SHRM allows the business to have a significant edge given the volatility of the market due to advancement in information systems, globalisation and many other factors. Having said these optimistic accounts, this report will also examine the reasons as to why it can be tedious to determine the influence of human resource strategy on business performance.

2.0 IMPORTANCE OF ALIGNING BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY
A well-thought and coordinated SHRM is undoubtedly considered the blueprint for how a business should run in order to acquire competitive …show more content…

In some cases, even if the business has integrated its business strategy closely with its HR strategy, their desired outcome to have a competitive advantage or inimitable capabilities may not be achieved due to certain external and internal factors.

3.1 ECONOMIC SITUATION
There is certainly no ambiguity that recessions are devastating for not only the business but everyone else. It makes no difference whether the business has aligned its business strategy with its HR strategy, it will be affected in many ways during a

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