HR Strategy and Business Strategy

Human Resources Strategy must follow the Business Strategy. It is very easy statement, but in many companies this easy rule is not followed.

You can find a lot companies, which provide really sophisticated services to the customers, but their Human Resources should be called more Personal Administration Department. And many factories, which have really just basic needs in the area of human capital development have a very strong HR function.

HRM is a very expensive function for companies and each company should have a strategy in human resources area consistent with the overall business strategy. The HRM has to decide about the correct HR Strategy to be applied to fully meets the requests of the organization at the best return on investment into the human capital.

The main drivers for deciding about the appropriate  HR Strategy should be:

• competition on the market
• complexity of skills and competencies required
• possibility of investments into human capital

The HR Strategy must clearly react to these conditions and it has also project the future development supposed by the overall business strategy. And it is the main task of the HR Management to find a suitable solution to make a complex alignment of the HR Strategy and Business Strategy.

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